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UNIVERSITY
OF MICHIGAN
SEP
ESTABLISHED IS39
PniWTMPDPT
5 1952
IIKMESS MNIWSTalllON
IIKIK
IIIUIY
21T
wUlVUVLuKO IriL
j
an
Chronicle
Reg. U. 8. Pat. Office
Volume 176
Number 5148
New
Price 40 Cents
York, N. Y., Thursday, September 4, 1952
Copy
a
EDITORIAL
Our National Wealth-
As
We See It
Is It
i
There is
thing about which all the poli¬
days agree. It is that we must be
"strong"; strong, that is, not only in
way
but in
sense
In
also.
only the strong who can survive in this crit¬
world, and it is only the "expand¬
ing," "dynamic," or growing "economy" which
can be
strong. Politicians of the New Deal or
as aims in investment planning and
(1) stable and liberal income; (2) pro¬
tection for principal; (3) growth of principal; and (4)
occasional profits. For insuring success of investment
plan, he advises: (1) good timing; (2) selectivity and
diversification; (3) constant supervision; and (4) pa¬
tience. Lays down plan for division of investment port¬
folio into three grades of securities.
sound growth:
since it gives
the unit of the measurement of value.
Says world is afflict¬
inflationary monetary madness, which causes
people to feel that when the government buys, destroys,
and gives away, the people are richer. Attacks irredeem¬
able paper money as "greatest of all mass deceptions."
ed with
an
:
The wisest investment
obvious.
You wish
me
to
amplify
recent suggestion that the
my
American people labor under a
the wealth of the nation.
stating
am
price
suffered
diminution.
no
this
belief
The
is
and potential
$17,-
$1,000 invested in A. T.
The
in
by
& T.
that
be worth
now
$1,250.
amount invested in du Pont
same
would
year
worth
be
now
$35,000!
Please
do
not
take
this
gestion to sell your American Tele¬
phone & Telegraph stock. We may
be
destruction
of
war
of
nor
They record receipt of full
everything supplied the
government for destruction or aliena
consequence
gains and profits
they
in
record
generated
as
by
VVII,iam Chamberlain
the
may
of
war
on
page
IN
NOW
are
more
of
a
growth
stock
Paul Kent
communication, advancing
spell
expansion
of
markets
uses
and
vehicle-to-
for teletype—all
greater profits.
However, the foregoing shows the need for
20
Continued
on
letter written
by Mr. Chamberlain to an associate, who
him to amplify
his assertion that the people are deceived
regarding the increase in the wealth of the nation.
a
sug¬
There is also the possible advantage for stockholders in
the divestment of Western Electric, if this is brought
about.
great
and policies of
aggregate
Continued
*Text
much
vehicle
for
ation and for every service rendered.
As
a
than in the past. Coaxial cables, tele¬
vision
relay systems, television metering,
followed.
value
as
be coming into the time when it will
the
fabulous gifts and benefactions which
porate securities
DEALERS
been
and
18
SECURITIES
in 1922 would have
in 1922 would
asked
page
$2,600. However,
$1,000 put into du
individuals, banks, and business in¬
stitutions which support and confirm
it.
These private and corporate ac¬
counts reflect nothing of the waste
obvious fact that all these
seekers after political preferment should,
but
mostly do not, impress upon the rank and file
is that if we expand and become increasingly
strong the people themselves, rather than gov¬
ernment, must do the growing. The people will
grow, prosper and increase in economic power
and potential — all of their own volition and
upon their own initiative—or there will be, there
on
been
from
000!
prev¬
attested
income
Pont
the books of account of the country's
and
Continued
If $1,000 had been
have
The
of
1922.
average
would
the
alence
since
at the
1922, the income from the
and dividends through 1951
misconception is the belief
that despite the destruction of war
and the postwar gifts to foreign gov¬
ernments the aggregate wealth of the
people has made steady increase and
delving into relatively recent history
not be to the glory of the cur¬
rent exponents of "modernism," and is
hardly
to be expected of them. In
any event, this sin
of omission is hardly as dangerous as another
which seems to plague most of the political lead¬
ers of the
day.
year
& T.
in
rights
The
course,
every
put into A. T.
now
specifically its nature and what I apprehend
more
planning is not always the most
example, American Telephone & Telegraph
a good income stock.
It has paid $9
in dividends
misconception respecting
Since you desire it I
For
is often considered
will be its consequences.
a
simple
Mr, Kent presents
associate, Mr. Chamberlain
an
recognition to the changed and changing dimension of
no
"pro¬
gressive" account of things in general. Not very
long ago these prophets or preachers of "expan¬
sion"—or at least some of them and, we
might
add, all their prototypes in politics—were ex¬
pounding quite a different philosophy—that of
the so-called mature economy in which all
growth
had already been attained and the
hope of the
future lay in a more even distribution of the
output of the nation.
The
to
statistical and accounting data indicating in¬
in the national wealth is erroneous,
crease
Fair Deal persuasion do not take the trouble to
add that this has not
always been quite the
would, of
Investment Adviser, Babson's Reports
communication
a
contends
ical and cruel
By PAUL KENT*
Saratoga, Calif.
military
a
industrial and economic
an
By WILLIAM CHAMBERLAIN*
It is
Such
Increasing?
one
ticians these
Investment Planning lor
Income and Sound Growth
REGISTRATION
afforded
undertakings in
a
—
"Securities
now
Reports,
registered
with
Registration" Section, starting
in
shrewd
page
18
talk
by Mr. Kent at the 1952 Summer Conference of Babson's
New Boston, N. H., Aug. 28, 1952.
Underwriters, dealers and investors in
complete picture of issues
our
*A
a
the
cor-
SEC
on page
26.
State and
in
U. S. Government,
Stale and
Municipal
Securities
telephone:
Municipal
Pacific Coast &
Bonds
Hawaiian Securities
HAnover 2-3700
Direct Private
Wires
Chemical
BANK & TRUST
COMPANY
Bond Department
Dean Witter
14 Wall
\
Principal Commodity
OF NEW YORK
Security Exchanges
San Francisco
Los
•
Boston
•
Angeles
•
Chicago
Honolulu
Dept. Teletype: NY 1-708
BROKERAGE SERVICE
Brokers and Dealers
to
the
Government
in
Peace
Kenya Colony and Uganda
Head
for Banks,
Office:
in
26,
India,
Pakistan,
land
New
New
York
Stock
Exchange
York Curb Exchange
Broad St.
Tel. DIgby 4-7800
New York 4
Paid-up
Reserve
Capital
Capital
Fund
banking
and
every
Tele. NY 1-733
Goodbody
£2,281,250
exchange
ESTABLISHED
description of
MEMBERS NEW YORK
also undertaken
115
BROADWAY
NEW YORK
BANK
OF NEW YORK
El Paso Electric
BONDS & STOCKS
&
Co.
1891
STOCK EXCH.
business.
*
OP THE CITY
Cities
Power Company
Analysis
Pomeoon Securities
£4,562,500
Trusteeships and Executorships
other Western
NATIONAL
I
4
upon
request
DEPARTMENT
CANADIAN
£3,675,000
The Bank conducts
Denver
Spokane
Co., Ltd.
Protectorate.
Authorised
10
!
NEW YORK CITY
Bought—Sold— Quoted
Ceylon,
Aden, Kenya, Tanganyika,
Somali-
Uganda, Zanzibar, and
•
Los Angeles
CHASE
THE
™
CANADIAN
River
Natural Gas
Bishopsgate,
London, E. C. 2
Branches
Burma,
Hardy & Co.
Husky Oil
Ltd.
& Refining,
of INDIA, LIMITED
Bankers
30
50 BROADWAY
Salt Lake City
Bond
NATIONAL BANK
Members
ESTABLISHED 1915
Members of All Principal Exchanges
and
STOCK and BOND
Members
j. A. H0GLE & CO.
^
and
ST., N.
THE NATIONAL CITY BANK
Street, New York, N. Y.
Members of
BOND DEPARTMENT
30 BROAD
Co.
&
1
(ORPORATIOTf
40 Exchange
Place, New York b, N.Y«
Members New
and
Teletype NY 1-702-3
WHltehall 4-8161
111
Boston
York Stock Exchange
other Principal Exchanges
Broadway, N. Y. 6
WOrth 4-6000
NORTH LA SALLE ST
CHICAGO
IRA HAUPT & CO.
Teletype NY 1-2708
Telephone!
Enterprise
1820
v
ft
y> u
.
I'.AD?;! f/j
iO
C'-'Pi
The Commercial and Financial Chronicle
2
(818)
...
Thursday, September 4, 1952
\
5
\
bam**'
il«v
The
WE POSITION and
Security I Like Best
IN
TRADE
in the investment
Service
intended to he,
(The articles contained in this forum are not
Conv.
they to he regarded, as
are
General Telephone
an
Louisiana Securities
search
nor
der
Department, A. M. Kid¬
&
Co.,
(Page 2).
York
New
City.
of
Manager
Polley,
Green Mountain Power
Corporate
Finance
Common
&
Preferred
oline
Pullman, Inc.
Michigan Gas & Electric
Pacific Power & Light
and desires for a
stock that combines a past record
Southern Production
Gas, Elec. Light & Power
Utility, Com. W.I.
with a
growth
dependable return
future
promise
of
of
tenden
i
c
e
Defense
is
]^L
logical
a
To
use
e r a r
based
Corporation
York 5
Teletype NY 1-583
BArclay 7-5660
twin
for
one
of
the
the
unique
dividends
f
o
■a
Rights & Scrip
v^i^wc
l
without
^
tne period
aneaa.
past side, the actual
payments during most of
of the
dividend
McDonnell &fo.
'
New
York
York
Exchange
Exchange
Stock
New
Curb
Tel.
YORK 5
NEW
BROADWAY,
120
2-7815
REctor
the decade to 1951 have amounted
i°o$3 FL
$2, and the
Members
fnr
tho
iiiiiiiiiiiHiiiiiitiiiiiiiiiiiiiiiiiiiiuiii;
would
Trading Markets
be
American Furniture Co.
Moore
i
ures
Scott, Horner &
Mason, Inc.
principal
in
CYRUS
and
II.
POLLEY
re¬
Manager, Corporate Finance Dept.,
and the vision to build for
Terry & Company, New York City
here are columns of figdemonstrating balance sheet
related significant items:
In
$izu.2'
109.2
vestors
are
170.00
—
$00.
substantial
The
five
years
proceeds from
sleeping car business
of the
have been
ago
d:awn
on
of
Request
in
growing
Securities
Investment
231
LASALLE
SOUTH
STREET
Telephone
Teletype
FRanklin 2-1150
Direct
Wire
to
Mackie,
Singer, Beane &
Inc.
York
New
New
is
man
be
the
builder of rail¬
but through its wholly
largest
cars,
owned
to
Trailtnobile, Inc.
capitalize
seeks
the expansion
on
to
pos-
sibilities of the truck trailer field,
New
models
and cost
offer, both
weight
advantages to customers,
The Canadian Trailmobile subsid-
iary also is expanding.
1856
f
H. Hentz & Co.
Members
the
as
York
Stock
Exchange
New
York
Curb
Exchange
Cotton
Exchange
York
New
Commodity
-
Chicago
New
Exchange,
Board
Orleans
And
of
Cotton
other
Inc.
Trade
Exchange
field
H. Polley
For
being explored. In the building construction field, metal curtain-wall sections are supplied" for
large structures, which should become more active as
government
Potentialities
eased.
for
M.
Cotton Exchange Bldg.
NEW YORK 4, N. Y.
Pullman
ap-
especially impressive in the
W. Kellogg
Co. acquired in
CHICAGO
DETROIT
GENEVA,
PITTSBURGH
SWITZERLAND
1944—with
its
process
Carbo-
essential re-
tial to the expanding defense pro-
Even in the midst of aston-
gram.
level
of
earnings
and returns
Serial
60
and
many
varied
For the
reasons
men-
Gebstgn & Fbenkel
Members
150
a
Major
full line of
The
abrasive
cloths
Onlv six months
General Clinton F.
a*West
N.
Point
Y.
Security Dealers
Assn.
New York 7
Broadway
Tel. DIgby 9-1550
Tel. NY 1-1932
& Investors
For Banks, Brokers
FOREIGN SECURITIES
& EXCHANGE
THOMAS D. JENKINS
Broker
509
Madison
PLaza
Ave., N. Y. 22
3-5282 ~
TWX — N. Y. 1-2345
(Gt. Britain & Europe) PKL-NY
Teletypes
"TEX"
A
and
—
Producing, Refining
Distributing Company
Sioux Oil Co.
COMMON
Company has been
grinding wheels, rubs and blocks,
and papers.
5%s
an
tioned above I submit the common
stock of Carborundum as my fa
actively engaged in the manu- vorite security in the present marfacture
of
abrasives,
including ket. .
and
Common
Old
Missouri & Pacific Rwy.
ago
New York Stock
graduate,
as-
The
,
as
New York
-
„■
.
67 WALL STREET
NEW YORK 5, N. Y.
HAnover 2-9335
Teletype NY 1-2630
..
announced tne lollowing iirm
changes:
'' nncfpQ'
Richard
partnership
of August 31.
the controlling stockholders
Carborundum. Formerly content
Stock Exchange
.
anno
STOCK
Invited
JAMES M. TOOLAN & CO.
Exchange
Weekly Firm Changes
Robin-
Inquiries
B.
Fant
in
retired
Gamwell
&
from
Co.
Over-the-Counter
On September 11 the Exchange
with a passive role in this ijidus- will consider the transfer of memtry, the Mellon concern recently bership
of
DeForest
Lyon
to
directed the interests of Carbo- Francis J Purcell
toward
tremendous
Qn the same date transfer of
Quotation Services
for 39 Years
.
pear
N. Y.
of
stock
every
positions of the industry.
over
years
Carborundum
"A"
both the financial and productive
shortages, but long-term possibil- eral Robinson was the choice of
ities* for broadening these lines the Mellon .interests of Pittsburgh,
Exchanges
fills
n
i
track maintenance and installed an agressive and
fields have been handicapped by growth-minded management. Gen-
are
exceptionally
of
d e-
railway
restrictions
the
approximate yield of 4y2%. The
complete and illuminating annual
report presents a full insight into
abrasives.
Cyrus
SOn,
are
New
6's-1946
Missouri & Pacific Rwy.
of this company continues its high
out
Operations in the earth-moving sumed the presidency of the firm
and
to
at
common
rundum
'
Established
Foote Mineral
Georgia & Florida
ishing growth, the common stock
velopment
content
not
0
postwar
the
competitive
problem facing the railroads, Pull¬
r
healthy ratio of seven to one.
example of
an
and
Teletype BS 259
WOrth 4-5000
liabil¬
current
assets
is
Falls,
stands
Recognizing
way
CG 2197—CG 1614
supplementary
management reinvested
over $21 million in the firm.
The
net working capital exceeds $24
million. The important relation of
past, the
York,
Niagara
being
program'
fields.
world's
CHICAGO 4
effort is
policy so often -successful _tn the
current
by
Company
diversifying the company's in¬
terests
Republic Investment Company, Inc.
Every
consolidate the
to
1951 for the low Pnce earnings
ratio of less than eight to one. ApPlying the conservative Mellon
ities
Carborundum
gradually until now practically
all are being given productive em¬
made
rently selling around 31%, Car®arrle ^
a s are
prices but quirement as my favorite security.
trading, in- The financial position of the firm
seeking a company is eminently sound, the manage1 o n g
in ment is far-seeing and aggressive,
growth poten- and the growth potential of the
tials. Even in industry is unlimited. In addition
a period of into an extensive and proven range
dustrial
exof products, Carborundum is now
pansion
The manufacturing commodities essen-
on
ployment.
State St.. Boston 9, Mass.
ln
The
characterized
market
49.82
372.7
Net
148
new
highs in stock
shadowed by inactive
$ Per Sh.
Worth
a
Cur-
of a further rise in 1952
Carborundum Co.
of the latest calen¬
the end
sale
Circular
and
m-
ca¬
Mil. $
llllllllllllllllllllllllllllllllllllllllllll
Chemical Corp.
ap-
the
Unfilled Orders
Nuclear Instrument &
a
this
LD 33
Tele. LY 83
receivins
ove?7%in
possibility of
the
preciation
of
vield
realistic
Working Capital
Lynchburg, Va.
fieids offers
falreadv
t
g00a
Pullman)
dar year,
request
on
..
.
opment.
the stockholders' future?"
At
—*—
defense
Circular
'
...
quarter results,
have
ask:
management
sources
Handley Hardware Co.
also
"Does
will
investor
pable
Dan River Mills
military
HOFFMAN RADIO
0f
:
come.
the
forward,
fiber
of ordprofit margins nat-
of attractive
'athe?
7.1%.
Looking
th
new
shortage
production
third
affecj.
variet
inbvearah6-3Tll,tnd.
thn
$0.75
quarterly rate, it
recent
to
general, progressive research in a
average
a
the
a contract with the Atomic Ener&F Commission. This contract
engines.
ably g0Qd economic conditions in
yield based on this 10-year
dividend received would
the
This
ceg
ease
cally illustrated its expansion by
future
the
In the longer run, under reason-
etnnk
offices
,
The financial position of Carborundum is both sound and enLarge backlogs of railway car or- couraging to the investor. In the
ders are steadily being worked off. three years from 1948 to 1951 the
Earnings for the 12 months ending sales increased from $28 million
june totaled $4.80 per share.
to $72 million, with the prospect
existing price of 42 for the stock,
branch
our
Although primarily a manufac'turer of abrasives. The Carborundum Company has dramat¬
util-
strike and material shortages
FFfL'F
$4-with an
highest
to
.
income and excess profits taxes),
may
Looking back at the more recent
part
Mobile, Ala.
wires
Direct
ca**? ^or the production of zirTel. CA 7-0425
nance
items,
conium and hafnium metals, mN.
Y. Telephone
urally are narrow in this period gradients useful in the construc- J
and are subject to renegotiation
of nuclear reactors, another
(
t t
mention the problems of important link in atomic devel-
horizons that should contribute to
earnings in
Since 1917
vpar
ppprv
shareholders every year
interruption since 1867,
to
paid
Orleans, La. - Birmingham, Ala.
J
involves
converted
Fred Messner
.
and
present
broader
NY 1-1557
HAnover 2-0700
sub-
extent that facilities are
To the
ac¬
complishment
Specialists in
in
rocket fuels and
reveals
u r e
at
promise of
ization
Pullman p i ct
defense
holding
Exchange
nrnaram
activities contributing to
national
Janus,
side
uses.
research
headed
-
peacetime
many
j
ise® to
*sbestos f
example of the far-flung
the
namely
N. Y. Curb Exchange
120 Broadway, New
able
£
to
Another
Curb
St., New York 4, N. Y.
st t
military purat the moment, but is suitmostly
York
New
present uses
revolutionary
asbes(os for which the United
d
• d almost entirel „
high-temperature fluorthermop astic)
is
poses
the
on
ancients,
1920
Established
Associate Member
devoted
this
of
stance extends ,0 the
ochlorocarbon
lit-
a
figure
y
tial
readily
can
Another item
?°'
.
KEL-F (a
candidate.
New York Hanseatic
such work
in
York Stock Exchange
New
25 Broad
Department of
s,
Pullman, Inc.
Members New
Members
Techniques for producing gasoline anfj °ther liquid fuels from ture that it can filter bacteria and
£?jr are ° special economic sig- so bea£ resistant that it can withnificance to countries deficient m stanc| temperatures that melt cas
crude oil and chemical resources. jron (0Ver 2303° F.)." The potenThe interest of the
investor's
discreet
a
basic objectives
Puget Sound Power & Light
Central Public
meet
To
Steiner, Rouse & Co.
possibilities.
added
opens
Co.,
Dept., Terry &
New York City. (Page 2).
SS5UKS SUSS £
Iowa Southern Utilities
t
Bought—Sold—Quoted
fluid catalytic cracking unit for an
Preferred & Common
4.75%
Tucson
Alabama &
Selections
Pullman, Inc.—Fred Messner, Re¬
offer to sell the securities discussed.)
MESSNER
FRED
Week's
Participants and
Their
particular security.
participate and give their reasons for favoring a
Colorado Interstate Gas
Eastern Utilities Assoc.,
week, a different group of experts
and advisory field from all sections of the country
A continuous forum in which, each
Central Telephone
Central Vermont Public
This
Forum
develop-
ment, engineering, manufacturing,
and
construction
assignments
spreading into a variety of fields
—notably oil and chemical. After
completing
the
world's
largest
growth and expansion.
thn
F
A bright future for Carborunr
^
dum is guaranteed not only by *ate Richard W. P. Barnes to
the high quality of the new man- Newell B. Whitcomb, and the
agement but also by the introduc- transfer of the membership of
tion of valuable new products,
A
.
.
This same management recently
*
^
p
announced the development of a R- Gitterman, Jr. will be conceramic fiber "of such fine tex- sidered.
.
National Quotation Bureau
Incorporated
Established
46 Front Street
CHICAGO
1913
New York
SAN
4, N.Y.
FRANCISCO
Volume 176
Number 5148
.
.
.
The Commercial and Financial Chronicle
(819)
The Economic and
INDEX
iumm
B. S.
Articles and News
Agricultural Outlook
By
Dean,
College
.j
—Paul
of
Agriculture
Kent
Cover
"
.
Cornell University
"DOUGH"
Increasing?
—William Chamberlain
Holding general economic outlook for remainder of
which
in
under
coordinate
to*
Not
policy and debt management
Reserve agreement.
Says present
of precarious
one
Concludes farm prices will
causes.
past
year
characterized
as
fairly
can
of
one
be
moderate
Myers
3
Sacred Cow—Ira U. Cobleigh
a
—is
5
Stormy Weather for Stock Options—Arch Patton
6
New
Yardsticks
for
Determining
Market—Roger W.
fall only if general
the
half
last
here
get
you
that
nobody
for
else
Obsolete
year
half
of
Stock
of
Securities
Dept.
STREET, NEW YORK
6
O.
Rowe
7
11
____
Haile Mines
12
—Homer Fahrner
Lock Thread
and undoubtedly for the first
and of
Course
WALL
Taking Guesswork Out of Investment Management
this
of
progress in international relations
Probable
99
Telephone: WHitehall 4-6551
Babson
Point IV in Latin America—G.
for
money
obsoletes
wants!
duction, employment, and national
income
the
those
4
_,
International Fund and Bank Meet—A. Wilfred May
price level declines.
The
Golden Calf but
a
ON EARTH
balance, but predicts
generally favorable agricultural conditions.
Foresees no
depression from farm surpluses, but holds it may come from
other
Cover
The Economic and Agricultural Outlook—W. I.
credit
Treasury-Federal
economic situation is
is
year
difficult period
a
THE GREATEST
*4
Our National Wealth—Is It
favorable, Dean Myers, also states it will be
AND COMPANY
\
MYERS*
State
York
New
h
W.
page
Investment Planning for Income and Sound Growth
reasonably stable economic
conditions
within
United
the
States.
Korean
truce
talks
have
continued
without result,
but there has
been
no
ex¬
tension of
yet.
war
The Iran¬
ian
worsened,
but
some
has
progress
been
_
in
made
building
„„
rope. The most
important domestic event was the
longest steel strike in history, due
in part to governmental interfer¬
ence.
•
/
•
•
Several factors have contributed
indicate
stable
of
prices
in
their
buying
increased
savings; the
leadership of the Federal Reserve
System
banks
and' thef cooperation of
in the restraint of credit;
industrial
increased
abundant
and
production
agricultural output
in spite of the bungling of OPS;
high taxes, plus a little reduction
in
appropriations, that resulted in
balancing of the Federal bud¬
the
cash basis for the year
30; decline in produc¬
tion of consumer goods, both tex¬
tiles and hard goods, offset by in¬
get
on
a
ended June
creasing
continued
defense production and
high level of private
construction
industrial
of
plants
industrial
about
the steel strike is tem¬
by
but
porary,
real,
there
and
Then,
remainder of
has
The
remaining
will be
The
outlook
is favor¬
able. A gradual, modest improve¬
ment in consumer buying provides
the basis for optimism in consumer
general
the next
for
economic
year
or
so
Months will be
regain a balance in
goods industries.
required
to
inventories
steel
months of
is
upward.
coordinate
we
can
a
9
Straight Face (Boxed).
a
10
1.1
1952 Tax Burden^
credit
policy
ABA to Establish
J.F. Reilly&Co.
10
Department of Montary Policy
Prosperity Depends
and
Consumer,
on
says
13
Harold Schreder
Incorporated
61
14
National Bank Assets Up $3 Billion in 1952 Second Quarter..
15
"Built-in"
the
before
tural
of
a
talk
Myers
Agricul¬
Dean
Bankers
Graduate
Seminar,
by
Ithaca,
N.
Y.,
Aug.
term
nonmarketable
bond
that
evident
financing
ernment deficit
ing system
issue
the
Gov¬
vice
is
finance
to
sources
As We
Bank
See It
and
32
Business
Associated
(Editorial)
Insurance
Man's
Canadian
such
always gocd ad¬
banks
that direction
in
pressure
the Federal Reserve
which
banks
When
ment
on
a
because of
it
causes.
Cover.
Stocks__
and
Bookshelf.
____
14
Reeves Soundcraft
4
Dealer-Broker Investment Recommendations
Einzig—"Another
Convertibility
8
;_
Failure"____
Transcontinental Oil
15
that might
tied
otherwise be used
Washington Ahead of the News—Carlisle Bargeron_;
9'
Indications of Current Business Activity
23
Mutual
16
Funds
News
2__
Notes
About
Singer, Bean
&
8
such
purchases
put
and
Bankers
•Observations—A.
Wilfred
May
It
Our
Reporter's
on
is the
availability and cost of
re¬
Prospective
Report
Security
Public Utility
31
19
Offerings..:.
29
:
Securities
TRADING MARKETS
10
'
funds from the Federal Re¬
serve
serve
the
banks that
largely determine
inflationary
consequences
of
i
•
Railroad Securities
Salesman's
Securities
such
'
■
V
•
■'
•
Now
Southern Advance
22
_________
Securities
Corner.
Borrowing
From
Federal
Reserve
last
the
In
two
needed by
increased
loans
months the
re¬
banks to finance
and
in
Registration
26
The Security I Like Best
5
Tomorrow's Markets
Kalamazoo
2
The State of Trade and Industry
primarily by borrowing at
Federal Reserve banks, and
25,
8
Washington
(Walter Whyte Says)
Keyes Fibre Co.
and
You
32
-
-.
Continued
on
page
24
*
*
BOENNING & CO.
Mr.
May reports this week from Mexico where he is covering
the Annual Meetings of the International Bank and Monetary
Fund.
PREFERRED STOCKS
Twice
Weekly
»
COMMERCIAL
FINANCIAL
B.
DANA
.
_
Park
„
New
HERBERT D.
•
Chicago
Private Wire to
Y.
SEIBERT,
e
»
President
_
•
Schenectady
•
Worcester
CROW ELL, WEEDON & CO.
records,
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American Dredging
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8,
of
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and
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of
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per
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Monthly,
(Foreign postage extra.)
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1952
TELETYPE N. Y. 1-5
•
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Eng-
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DANA
C.,
^ry,25;T1^2' at, the P0^ .°fflCe„at
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.
•
,
Reentered
Publishers
'
York
Thursday,
Albany
COMPANY,
„
Place,-
E.
Copyright 1952 by William B. Dana
CHRONICLE
REctor 2-9570
WILLIAM
BROAD
Drapers' Gardens, London,
land, c/o Edwards & Smith.
1
and
Reg. U. 8. Patent Office
25
Spencer Trask & Co.
Philadelphia 3, Pa.
'
„
New York
Vegetable
Parchment
purchases of
Government bonds have been ob¬
the
Bag & Paper
Grinnell Corp.
17
financing.
More
WILLIAM
25
Exchange PL, N. Y. 5
*5
Our Reporter on Governments
.
Members
40
Teletype NY 1-1825 & NY 1-1826
The.
specialized in
MACKIE, Inc.
HA 2-0270
22
a
banking system.
strain
the
Banks
buy other secu¬
or
unless the Federal
Hence,
available,
•
From
bank invests in Govern¬
are
Corp.
Cinerama, Inc.
32
j.
Coming Events in Investment Field
Published
have
Development
Research
21'
—
Securities
NSTA
bonds, reserve funds
Chicago
•*
Angeles
for, while Treasury borrow¬
from
work
up
Philadelphia
through the bank¬
is not automat¬
ically inflationary, it is likely to
ing
Direct Wires
Los
Structure of Inflation..
Regular Features
'
was^
This
deficits;
14
^
Commodity Prices Tending Upward
inflationary, and
we
have continued to emphasize
the desirability of borrowing from
nonbank
Controlling Defense Budget.
r
long-
a
bought by banks sooner or later.
During the war years it was
1952.
For many years we
Teletype NY 1-3370
25
prospective deficit by
for
tained
♦Summary
Broadway, New York 6
BO 9-5133
ment. When the attempt to finance
serves
prolonged coal strike
expect high levels of pro-
Barring
:
1952
difficult period in which
a
Mexican Gulf Sulphur
"Musts"
the
attain
and
Natural Gas & Oil
Million Chicago
management
under
the
Treasury-Federal Reserve agree¬
pre-strike momentum of indus¬
trial production. The trend, how¬
ever,
The
in Forthcoming $20
Authority Bond Issue
Silly With
debt
the
Sulphur
i
,
9
Transit
too,
Reserve banks make more reserves
Outlook
5
;
1952.
expand loans
Economic
Socialism
5
reduction of inventories at
a
levels.
rities.
General
Pan American
*
•
of
Wide Interest Shown
the large
Federal deficit will require heavy
Treasury
borrowing during the
homes.
and
*
13
Steel Strike End Spurs Sharp Production Rise
this
moderation
consumers'
and
in
__
Federal Debt to Rise by $8.4 Billion in Fiscal Year 1953
The check in
production brought
fell flat in June, the Treasury of¬
country.
fered a six-year 2%% bond which
Among
them -are
these:
the
was heavily oversubscribed. These
stretch-out
in the defense
pro¬
bonds were primarily attractive to
gram both in the United States
banks and it was expected most of
and in Europe which helped re¬
the $4V4
billion issue would be
duce
the
pressure
on
industry;
stable
to
Repealed"
will spread.
inum,
to
Stevenson.
*
Fruits
rising costs, due to higher wages
and prices of steel, coal, and alum¬
all
Be
Working Women—Roger W. Babson__---_____
slightly
or
E.
Should
a
higher wholesale prices during the
last half of 1952. The pressure of
the
defenses of Eu-
„
likelihood
States
Taft-Hartley Act
—Adlai
inflationary pressures
United
the
situation• been
has
W. I. Myers
Increased
in
"The
1953.
York
tuncu
& Co.
Stock
Exchange
Members
Phila.-Balt.
Pennsylvania
Teletype
PH
375*1
Bldg.,
Philadelphia
N. Y. Phone
COrt'.andt 7-6814
3
The Commercial and Financial Chronicle
4
aureate
mediate
Not
Golden Call bat a Sacred Cow
a
at Mexico
about
"Expanding Your Income"
Author of
gold is still the world's favorite
metal. Whether in your teeth, or in deeper cavities in Fort
Knox or South Africa, it is forever sought and bought. Every¬
thing
seems
understood about it but its price
talk about
If
you
refer to Exodus
will note that when
will
—
that there
"industrial"
dropped
existed
price
for
a
of existing production
what?
ounce?
No action?
$50?
$43.50 an
Who knows? There's
tain, he was so mad at the chil¬
$900 million of new gold
(@ $35
Of that,
for making $350 million was gobbled up by
and
another $350 million
worship¬ hoarders,
ping a golden went into industry (cuff links,
of Israel
dren
that
calf
he
the
broke
tablets
stone
(c o ntaining
price of
mandments)
he
was
carry¬
ing at the time.
Unfortu¬
nately,
Ten
in a
Ira U.
Cobleigh
C
ndments
have,
in
sinful
ours,
the
o ra¬
this
world
other
In
words,
80%
of
gold mined last year traded away
price, and at va¬
rious "black market" prices, was
from the official
acquired by avid buyers anywhere
from $42 to $70 an ounce. Further
evidence that gold seems to be a
most
cherished
possession; and
that the official price is unrealis-
tically low.
True, as a sort of sop to gold
production, some subsidy has been
given to marginal extractors, no¬
calf.
But gold, as a metal, re¬
tably in Canada; and some grudg¬
mains "Sacred Cow"
untouch¬
ing permission has been given to
able.
Alone of all the metals in mines to sell a certain
precentage
the world, its official price is still of
gleaned gold at the higher non¬
unchanged for 18 years in a row monetary world prices available.
—$35 an ounce since 1934. From But nothing has been done for
—
prospectors,
there
is a
ending discussion as to why
be.
No price fixing
this
in,
minimum
great deal
a
favor
in
of
gold
assurance
can
be said
mining
shares
this
almost
of years
to relate
the official price of gold to the
a
score
gold
for
backing
monetary
Western
up its various
circulations.
In
1939
Countries
had
roughly
increase
in
the
price of gold
the convertibility of cur¬
rencies."
40% in gold for their outstanding
Mr.
currencies—today only 20%. And
these
the basic
his
is
reason
a
lot
more
gold
not
being brought to light of
day is that the price is wrong!
Dorfman
is
no
peasant in
matters; on the contrary,
opinions, and judgments in
this field are highly respected.
Which brings us down to im¬
could have bought
are).
year
Mines, Ltd.
paid
1951
earned,
and
here
net
$286,249
in
the
0n
2,862,490
sell aroUnd
They
shares
$3.25.
since gold stocks seem to
pretty solid floor under
(they have not shared in
1952 general market advance) and
a
number of mining companies
have
obviously been holding back
a
lot of choice ore, waiting for
higher prices, let's look at a few.
have
the
lowest
of
ounce
This is
cost
Equipment Trust Certificates
City of Philadelphia
and
Kerr-Addison
on
leverage for profit or market gain
Sept. 11, 1952 (Omaha, Neb.)
if or when gold price lifts,
cently
the NYSE around 22%.
relatively small capitali-
on
a
top!
on
LANCASTER
(Philadelphia, Pa.)
Bond
Club of Philadelphia an¬
nual field day at the Huntingdon
Valley Country
Pennsylvania.
Club,
Abington,
(Rockford, III.)
^rjon' Laduloma and Newlund.
would come producing
^?m|)an5,es i1^"6
™j°n'
MacLeod, Lake Sh°re, Elder,
Second
Giant Yellowknife,
a
Wnght-Hargreaves. Third come
t^e holding companies like Frobisher. Anglo Huronian, Noranda
and Mining Corporation. Get the
American
Annual
before
reports
consider any, however.
reserves, costs
It
time
a
in
profit
that
axiom
even
Bankers
(New Jersey)
Bond Club of New Jersey mem¬
ber-guest
and
Dutch
Beef
Oct. 5-7, 1952
price of $35 for gold might
Association
the
(San Francisco.
Stock
of
Oct. 8-10, 1952
Exchange
Governors
Mark
Fall
Hopkins
(Los Angeles,
Calif.)
Association
Firms
Board
of
of
Stock
Exchange
Governors
Fall
meeting at the Ambassador HoteL
prosperity back Oct. 20-23, 1952 (Miami,
Fla.)
price
National
mine owners! The official
,
,
Day
Calif.)
securities
but slightly in the last year. If
killing sacred cows might keep
thousands of Indians from starvation, then killing the "sacred
steak and
at
County Country Club, West
Orange, N. J.
honored
have, with few exceptions, moved
bring
Golf
Dinner
Essex
from buying when no one Firms Board of
else wants 'em.. If that's true, gold meeting at the
shares should perhaps be on your Hotel.
shipping list right now. They
^
treat
Steak
comes
cow"
Association
Look for
and quality of ore.
been
has
you
-
Convention.
Oct. 2, 1952
#
annual
-
Security Traders Asso¬
,
and purchase of likely gold shares
before that golden day, might not
outstanding
Oct. 24-27, 1952 (Havana, Cuba)
9miw
and
4,000 feet in
this quite
(Present estimates
Convention at the Roney
National
Security
Traders As¬
sociation Convention tour.
Eppler, Guerin Adds
SAN
ANTONIO,Texas—William Oct. 31, 1952-Nov. 2, 1952
(Hot Springs, Va.)
B. Eppler, Vice-President of Ep-
Meeting of Southeastern
Group of the Investment Bankers
appointment of Cecil Association of America at The
Guerin & Turner, has an-
pier,
nounced the
D
Fall
Purvear
;
as
an
associate of the
Homestead.
.
.
gold are only for firm in San Antonio,
Nov. 30-Dec. 5,1952
the top 2,500 feet.) Both Noranda
Mr. Puryear comes to Eppler,
(Hollywood, Fla.)
and
Anglo-Huronian,
sagacious Guerin & Turner from the GoodInvestment Bankers Association
collectors
of
gold equities
are
year Tire an(J Rubber Co > lnc > Annual
Convention at the Holly¬
large holders of Kerr-Addison.
wider
diversification
gold fields
of
in San Antonio.
wood Beach Hotel.
I refer you
to Frobisher Ltd.
The 5,504,478
shares of this enterprise listed in
Southern
owned).
Gas
•
(Chicago, HI.)
Sept. 26, 1952
man-
may
Rhodesia
has
Frobisher
(100%
recently
50% interest in Williston Oil and
PITTSBURGH
Omaha
Municipal Bond Club of Chicago
annual field day at the Knollwood
Country Club.
earned
Incorporated
.
Sept. 19, 1952
Sept. 26, 1952
WE PURCHASE
ectt/ittiek
S
all
or
the
Co.
Just
the
publicly held
securities in portfolio have
ket value of
an across
over
$9
a
a mar¬
share. For
the board cut at profit-
LAMBORN & CO., Inc.
99
WALL
majority shares
SUGAR
Raw
Harry & Myron Kunin
,
STREET
NEW YORK 5, N. Y.
in sound So.Calif, firms
branched out into oil through its
PHILADELPHIA 9
the
Plaza Hotel.
STROUD & COMPANY
ALLENTOWN
at
of subterranean
in
•
Day at
Club; golf, lunch¬
dinner
and
Bankers
Field
Country Club.
ciation
owned), plus the Connemora Mine
NEW YORK
eon
W1^ surely advance some day;
mines, Giant Yellowknife (37.83%
owned), United Keno
(33.75%
owned), New Calumet (28.76%
copy
Omaha Athletic
-
some
to
Investment
annual
.
Take Your p,ck
Toronto at around $7.60 give you
a
call on three major Canadian
for distribution
Nebraska
Association
Rockford Securities Dealers As¬
In general terms, there are
really three ways to buy gold sociation annual "fling-ding" at
shares; first, and riskiest the ex- the Mah Nah Tee See Country
ploring
or
developing
com- Club.
panies—little or no actual production and no mills, jln this Sept. 28-Oct. 1, 1952 (Atlantic
group would come companies like
City, N. J.)
80c.
Presently quoted at
this interesting gold equity
a
little better than 4%—
amazing mine.
your
30, 1952
Sept. 5, 1952 (New York City)
Security Traders Association of
Addison, receiving a Dominion
subsidy of $185,000 for 1951. But New York Outing at Richmond
a somewhat higher cost mine like
County
Country Club,
Dongaa
MacLeod could develop a lot of Hills, Staten Island.
each of the 4,730,301
shares
common
For
Philadelphia School District 3)ils
Security Traders Association of
New York Bowling season opens
extant,
at the City Hall Bowling Center.
This is,
far smaller and more
producer
than
Kerr-
marginal'
per
producer.
tribute to excellent
a
84.5 cents
18%
major
any
agement.
paid,
labor
(New Yprk City)
1952
Sept. 4,
dividends
0f course, a
a
them
Field
For
30,
was
$532,117
Sept.
So,
have
down
for your
ended
out
solace to you for the
may spend waiting for
higher gold prices, or new findings of ore reserves, as they probe
Semi-annual Appraisals
Write
Gold
the
1929,
time you
Now available
Cockshutt
Investment
In
ton—MacLeod
and sold-in zation (for a gold mine), only
1933 at a profit, were gold shares; 2,000,000
shares, applies to the
and when gold was mysteriously ownership of the long established
whisked from $20.67 to $35 in 1934 Dome mine, controlling interest in
it was no saga of goldy-stocks and Sigma Mines, shares of Campbell
the bears!
Some gold shares ad- Red
Lake
an
up
and coming
vanced several hundred percent producer and, on the side, a 25%
in that period when dollar con- interest
in Dome Western Exvertibility dropped dead, and if plorations, well managed West
you didn't turn in your gold coins Canada
Oil
drilling enterprise,
you
were
a
criminal (and still Dome seems pretty likely to come
giving
of Jun&
the
to
cunces
EVENTS
at
Here
you
September,
pays
as
j88
grading
Dome has long been a favorite
cost of its
and to
COMING
re¬
and has appeared well bought re¬
should
an
estimated,
of
depression should descend upon
us, it is nice to remember that the
a
There's quite a selection.
You
production.
can pay a few pennies a share for
People all over the globe would
openers here, or you can buy staor
fair trade law has ever been
perhaps be less fervid in their ble old line
producers like Homeso inflexible or ecumenical.
Chevpurchase and hoarding of dust,
stake, at 37, leading U. S. provies, Fords and Plymouths have bar, or napoleon,
if they had
ducer, or Mclntyre Porcupine, at
moved from $1,000 up to $2,000 more
confidence
in "managed"
78, which combines a fine gold
in the same period; the prices of currencies.
Inflation and wobbly
mining enterprise with marketroosters, reptiles and ranch houses paper money have suggested re¬
able investment portfolio valued
have all doubled, but not gold.
peatedly the wisdom of returning above $45 a share.
And even when it did advance, to
purse padding paper, converti¬
back in 1934, from $20.67 to $35
ble into gold. Before that impor¬
Some "Golden" Prospects
an
ounce
(Troy) nobody could tant and commendable step is
Nearly all gold fanciers seem to
t: *n or now give you anything
taken, however, it is quite req¬
agree
that Kerr- Addison Gold
L- V a capricious reason for the
uisite to elevate the official gold
Mines Ltd. is one of the best of
selection
(and retention) of the price.
In some support of this the Canadians.
At March 24,
latter price tag.
view point, may I quote a para¬
1952, ore reserves were estimated
Certainly the cost of mining graph from his address to share¬
at a fabulous figure —16,700,000
gold has gone up 70% since 1939. holders of Andre Dorfman, Man¬
tons—Of an average grade .2531
Rising costs elsewhere have led to aging Director of Kerr-Addison
ounces to the ton.
This comes to
higher prices—but not gold. Over Gold Mines, Ltd., delivered at
$8.86 a ton, with gold at $35 an
50% of the operating cost of a that company's annual meeting
ounce.
(1951 total costs including
gold mine is labor and nobody April 21, 1952.
depreciation and taxes were $5.23
thinks for a moment that the price
"To
sum
up, from
conversa¬
per ton milled.)
Figure for yourof labor is headed downward.
tions I had with many authorities
self how profitability would soar,
on money matters, my conviction
with, say, $45 gold.
World Needs Gold
is strengthened that all govern¬
Kerr-Addison
is
reported
to
The world needs a lot more ments will, in due time, agree to
never
Ore
tons
defensive investments today. If
as
the in
times since, but we have departed
from
the worship
of a golden
norant
With
to go
Investments
as
1,411,584
only stocks
price.
been broken millions of
cloistered economists down to ig¬
,
Gold Shares
mined.
was
teeth, gold plated pens, rings,
bracelets, etc.) and only $200 mil¬
lion to treasuries at the official
Com¬
the Ten
ounce)
an
higher
of its 50 members from
selling gold in that market. This
year
some
serve
upon any
which we'll
into
look
a lower price>
you might like
investigate a smaller producer
gold, and
restraints"
"moral
any
Moses came down from the moun¬
you
the
production,
At
gold with
(Sept. 29)
Last year
gold
Thursday, September 4, 1952
Frobisher.
august body formally recog-
nized
today.
Moreover,
official
only one certainty-the
only about 20% is going into na¬
tional treasuries.
In 1951, about gold will not go down!
XXXII,
able
Spe-
City, do anything
the
hiking
price.
same
After several thousand years,
prospects.
cifically,
will the International
Monetary Fund, which is meeting
row
By IRA U. COBLEIGII
of
...
(820)
—
Refined
—
Liquid
Exports—I mports—Futures
PRIVATE INVESTORS
403 W. 8th SL LOS ANGELES
DIgby 4-2727
Volume 176
Number 5148
.
The Commercial and Financial
Chronicle
.
.
(821)
r
F,"ils,£Socialisn
Steel Production
The
ism
Carloadings
State of Trade
Retail
Index
Business Failures
J
Total industrial
production for the nation as a whole moved
slowly upward the past week as many plants continued to recover
from the effects of the
recent steel
considerable variance from
any
nevertheless
strike.
the
like
Output failed to show
week
of
1951
but
was
moderately under the all-time high reached during
World
War II.
It was reported that claims for
unemployment
insurance benefits held higher than the
year before.
The
metal
swing
the
shortage-stung steel
for
into
end
consumer
have
reasonably
a
of
to
beg for his
probably see supply
may
the rest of this year but he will
the
satisfactory balance with
of 1953, reports "The
weekly, the current week.
first
demand
quarter
national
Iron
by
Age,"
metalworking
It
further
states that from the second
quarter on, the nation's fast-sprouting
production capacity will act as formidable
interference in
steel
pushing shortages aside.
Steel
trols
their
on
quarter
in
production
view
the
of
now feel that government
not be justified
after the
will
expected
easing
industry doubt that mills, besieged by
looking for customers
second
most of their
on
the
market.
rush
Few
con¬
first
in
the
orders today, will be
products by the end of the
quarter.
before
estimated 18 million tons
an
strike
ended
(exclusive
of
to
the
strike
about 8
warehouse
million
tons
when
this
stocks),
During the rest of 1952 only 2 million tons will
tory, industry sources believe. This is
contrary to
industry
estimates
believes
may be in
running
that
Australia
14
high
as
million
as
tons
(a
4
United
u
^aiand.
Commerce
*
of
the TTniterl States
the United
States,
7ealanH
renorts that
tons.
of
New
Zealand
inventory)
end of the
first
Automobile producers are
having a field day of optimism
future steel supply.
Many of them believe that the shortage
will evaporate
by the early weeks of 1953 and that supply will
ease steadily this
year.
Steel producers, regarding large defense
set-asides
(especially in bars and plates), can't see eye to eye
with Detroit, this trade
magazine points out.
some
focused
permitting
Office
of
of
pass-through
The
copper.
quarters
on
OPS
of
order
manufacturing
Price
higher
made
industry resentment
Stabilization's
costs
half-a-loaf
order
for
steel, aluminum,
for higher costs in
no
provision
wages and transportation—factors of substantial
importance when
a
manufacturer reckons his production
costs, concludes "The
Iron Age."
In
the
automotive
paying heavily for socialism, de¬
spite the fact that they voted the
socialists out
production returned to "presteel-strike strength" last week with
95,032 units turned out.
This
was
14%
more
than
cars
the
83,065
year
ago
102,255
cars
made
In the
last
like
week,
week
a
assembled.
were
General Motors Corp.'s division
sparked the week's gain, the
agency said, by producing 7,000 more units than
the
week.
Two
previous
Chevrolet
Oldsmobile-Pontiac
plants
plants
resumed
outside
operations
Michigan went
and
Buick-
full-scale
on
runs.
The
of
office
two
Nash
strike
21,000
cars
from
and
Mercury were still lagging in the return to preoutput rates, while Studebaker remained on
four-day
operations because of continued steel shortages.
"Ward's" said August production was
247,000 cars and 03,000
trucks, compared with only 159,563 cars and 34,226 trucks turned
out
in
total
"strike-torn"
for
try to
July. It predicted a 474,000-car production
September, the highest since June, 1951, as the makers
recover
lost ground.
on
page
24
of
the
as
their
in
the
share
of
Pacific
mutual
organizations
be
j§
the
years
principal
can't
spend
half their
entire
million
meet
the
welfare
cialists
is
that
budget
must
—
about
be
used
and
left
t h
to
tional
in
and
Fund
of
thus
nf
hiiJjfina
hiiiifinQ
burdens
fina"cl^
newiv-iormea
tne
fnewly-formed
Win«Qi
you
that
can
t
the
considerable
a
m
rules
during
the
past
even vote
it out of your
_r
year
would-be
storing
By $8,400,000,000
deficit
provided
the
fiscal
definite'
and
year
first
1952-1953'would
in
greatly exceed
evIrethTwMleXfyfarlS'def°idt
be
substantial,
than
the
last January.
will
be
anticipated
that
the
1952-1953
vigorous
leadership.
pleased
to announce
that
will be
Also
Frederick J. Cook
Edward P. Renier
are
now
associated with
in
1952-1953 will
not
increase
cause
in
a
the
-
belP
In
out^nBrazk^old^de^tr H
about
Rumors
new
Company
South
New York
Pittsburgh
LaSalle Street
September 2, 1952
-
Philadelphia
discussed
be
with
part of the deficit will be met by
withdrawing
funds
from
the
a new
issue of U.S.
through a nationwide underwrit-
ing Syn<"Cate "*"****■ W ^
agitation
for
a
Stanley.
.
Under
conditions
present
,
the
While
given
President
(Special to The Financial Chronicle)
BENICIA,
potential borrowing countries into
needed
instituting
economic
relatively high total of $7,925,000,000 at the end of July. It is estimated
an
that
increase
the
of
debt
will
show
$8,400,000,000 dur-
Calif.
—
Myron
cussions
„
wbi
Bank's dis-
include
He was
Sacramento representathreat tive for Wilson, Johnson & Hig-
the
formerly
nrtnnA
.
of a Russian propaganda
show. gins.
ing the current fiscal year, bring¬
ing the total on June 30, 1953 to
less
than
the
or
$7,414,000,000
amount
'■>»»
m
predicted
last January.
(Special
THE ASSOCIATION
TO
ANNOUNCE
WITH
OUR
FIRM OF
to The Financial Chronicle)
ANGELES, Calif.—Theo¬
Cheng is with Quincy Cass
Associates, 523 West Sixth Street,
members of the Los Angeles Stock
Exchange.
MR. EDMUND
AS
to The
Street,
BROWN, JR.
MAXAGKli
OF
OUR
investment planning department
Financial Chronicle)
members
of
the
Los
An¬
PENINGTON,
COLKET & CO.
ESTABLISHED 1896
MEMBERS:
New York Stock Exchange
geles Stock Exchange.
Leo Schoenbrun Adds
to The
Financial Chronicle)
New York Curb Exchange
Philadelphia-Baltimore Slock Exchange
70 PINE
STREET, NEW YORK 5, N. Y.
123 SOUTH BROAD STREET,
PHILADELPHIA 9, PA.
LOS
ANGELES, Calif.—Edwin
O. Blalock, Jr. is now connected
with Leo
wood
Schoenbrun, 1385 West-
Boulevard.
Reading, Pa.
E.
.
Hamm has become associated with
re-
King Merritt & Co., Inc.
Both the Fund and
„
no
With King Merritt
fund will remain in great part a
useful instrument for stimulating
Treasury, which amounted to the forms.
(Special
Minneapolis
the
event, meanwhile, the
any
without foundation at this time—
(Incorporated)
Chicago 3, Illinois
of
the
convertibility.
of
to
and
in
First Boston Corporation and Mor-
^
J03]1 to Great Brit;am are
ANGELES, Calif.—Bryon
D. Fahy is now connected with
Morgan & Co., 634 South Spring
135
removal
restrictions
Bank will sell
^L^^fLuse'ln EST
getting its house in order.
LOS
and
institution,
the
of
S^SUiVTquaXs" doIla[ b0nda in the '^
cor-
debt,
apparently because of the fact that
(Special
H. M. Byllesby
the jus-
With Morgan & Co.
us.
au-
Prospective New Issue
including the clearing up of arrears and establishment of ma-
LOS
Sennott, Jr.
a
work out an arrangement between lending.
dore
William J.
such
Hlack nas given no indication of
indication ui
000 or $4,100,000,000 less'than its or in fact at any time during the
the terms, the forecasting here
earlier estimate of $14,400,000,000. Washington lame duck period be- centers on a 30-year
maturity and
It is expected, however, that the f°re Nov. 2, or perhaps Jan. 20,
an
jnterest rate of 3%%.
estimated deficit of $10,300,000,000 next.
deficit will amount to $10 300 000
Quincy Cass Adds
are
absence
prospect
attempt
WE AllE PLEASED
We
investment
currency
The Administration
expects
now
it
one
equity
under
debate
in
is difficult to grant
the
real
•
evincing
are
interest
tification of this plan or of a kindred one for an intra-European
of£
$4,017,000,000 deficit in 1951-
smaller
demands
evi-
ton"instftute^that^the'total'deHcit
tte
it
without
•
areas,
attitude of the United States
thorities.
gold, all of which will be brushed
A
month of the last
t
pr0val which is in contrast to the
re-
for revaluation of gold, as well as
for a free market in newly-mined
July united States'
$3,426,-
of
first
major
United
under-
ity on the plan, its continuing
investigations are implying ap-
economic
There will be voluble
The Federal Government began
the 1952-1953 fiscal year in
budget
internal
including the
well as the
as
torate is protesting strict neutral¬
policies.
Federal Debt to Rise
a
borrowers
sound
i
govern-
Some
Program. While the Bank's direc-
because 0f the U.S.-instigated insistence on the sound prerequisite
of
oppor-
without
made
countries,
Kingdom,
developed
v*Ann
favorable
guarantee.
complaints over its alleged stingicomplaints TnntifniiAn'o abn-ndAn
over its alleged stinginess
The institution's changes in
New
me'
with
loans
0r
mental
mental
Zetlanders WOU!f .tt was a"dJst?11 j? hoped:
wlresult ln exPanded lending, but
ly1 aS
once you and
to socialism, you ve got it yield this has not developed yet, chiefly
eludes
in
profitable enterprises
help finance private
the
financial
new
undertakings by equity investment
in
the comdors' but about to come
about to come
out
°ut in the open, is occupied with
uut
ih*
foreign,
tunities for
and would
the
voiced
pre-
corporation would seek to interest
private investors, both domestic
Mone-
interest,
A. Wilfred May
Ring considerable interest in
liminary discussions.
This
of
much
affiliate of
in cooperation with the UN's Eco-
Interna-
tary
far
m
Tfcl
sphere
e
In-
Corporation
an
nomic and Social Council, is elic-
by the
institutions. In
L
so-called
a
as
the International
Bank, which is
being explored by the Bank's staff
rather
adoption
major new
the
for
Finance
to be established
action
their laps.
hovf ti
i!rp Z fhp
fhn
share
of
the
ternational
than
of
continuing costs of the
programs which the so¬
inaugurated
va-
tries'economic
almost
—
Suggestion
coun-
ills,
why they
reasons
more
International Bank Doings
highlight-
rious
budget of about $590 million. One
of the
speeding
gans of the Bank and the Fund.
promise
ing of the
total
a
^overnor f°r to be
Czechoslovakia,
is reported
ginning
here
defense
of
out
—
of
course
capacity-attended seventh annual here, will propose exclusion of the
mPPtinrs of
the
Rretton
Wnnd*'
b exclusion ot xne
meeimSs 01 tne Bretton Woods Kuomintang group from all or-
Zealanders, it seems,
contributing only $70 million
are
$267,505,000,000,
Continued
MEXICO CITY, Mex., Sept. 3-
indications or tne course of the 7 h
the who
indications
New
responding
Chrysler Corp.'s production advanced to
18,000 last week despite "slow steel receipts."
Likely course of the monetary leaders' discussion
ensuing action. Bank will soon offer new issue.
and
ago.
will'
industry,
according to "Ward's Automotive Reports."
By A. WILFRED MAY
still
are
over
From
the
States^reports that the
people
The
Behind this massive production
push to offset grevious strike
losses of steel is the
industry's greater capacity. It now tops 112
million ingot tons—as
compared with 108.5 million tons last Jan. 1.
was
of
glowing
more
"normal"
manufacturing industry's hands at the
half.
the
N'ew
7?u
Chamber
The
trade
go into inven¬
million
by
anH
dropped
were
authority notes. This 18 million tons of steel items stacked in
manufacturers' plants tells
why metalworkers did not rush into
the market in the initial
phase of the strike. Experts say that a
comfortable inventory
today should be 14 million tons.
government
negotiated
lare
Unusually high inventories
from
you
$273
producers, it observes,
International Fund and Bank Meet
a
This
simple
lesson
can
be
learned by taking a searching look
at the new mutual defense treaty
Auto Production
Industry
like
can't let go.
Food Price Index
and
is
Once
Trade
Commodity Price
l
D. C.—Social¬
high tension wire.
grab hold of it, you
WASHINGTON,
Electric Output
5
Altoona, Pa.
Montoursvllle, Pa.
Manhasset, L. I,
The Commercial and Financial Chronicle
6
Stoimy Weather for Stock Options
By ARCII PATTON
Management Consultants
decisions
Court
ware
stock
plans
have
raised
specter in
two
of
the
The Court
com¬
ominous
a
that
to
pro¬
case
the Court mentioned
stantial
stock
tion."
past few years
will
vul¬
be
nerable to
tack
in
at¬
t 1 e d
effect,
the
plan
option
valuable option
were,
large
law
shock
to
But
of
predicated
were
after
one
law
on
fundamental
as
the
of
tionee.
option
as
more
be
some¬
a
thing of value is given, some con¬
should
sideration
Consideration"
that
Court
does
what
to
raise
stock
ing
and
an
option.
it
to
the
the
in
return
the
for
executives
involved
when
the
a
i
the
this,
vide
to
recent
that
taken
obviously,
pressure
time
of
produce
is
results.
A
innovation is to pro¬
the
stock
not
may
be
by the optionee unless
its price has risen a specific per¬
also
up
centage
"Arm's
the
above
option
price.
of
executive
his
to
the
stock
mar¬
has
stock
will
find
advantage
to
go
it materially
the
exercise
to
The point is that the in¬
option.
executive
terested
ficiently
that
so
bargaining
gets
to
be
options of
stock exchange
ruling
be
may
difficult
under
h At present, one-quarter
plans
for
are
tence
are
before
become valid.
probably suspect under
the
This
option would
ensures
stock¬
holders of reasonable value in
the ruling of the Delaware Court.
change for
The decision requires architects of
the
dilution
of
•equity.
ex¬
their
issued
shares
tioned
to
while
tion
to
The
rest
in five years.
Option
(3)
this
On
which
be
may
most
one-third
the
number
market
Then
of
as
now,
Number
(4)
Over
tal to
a
basis,
survive
to
the
of executives in¬
of the option
40%
executives
its
Mr. Babson, in
increase
to
could
given period. This
a
mally provided
for
nor¬
cumulative
a
value
of
the
option
over
life
the
of the option itself.
Determining
cash
options really be valuable.
extent labor is
During the two
forecasting, holds the
bases
new
dependent on: (1) the amount of
credit available for purchase of stocks; (2) the pub¬
of their companies.
executives of these and
other companies do this, will their
or
lic's attitude toward buying or
selling stocks;
gaining in its determination to
share of business
since re¬
stricted stock options became le¬
years
and (3) the
greater
secure
profits.
v
I have been asked to speak on partment of Commerce, and other
the the Stock Market and Business sources which did not exist before
Fore¬
New York Stock Exchange—have Forecasting at which I have been the days of the New Deal.
taken advantage of this incentive engaged for over 40 years. During casts cannot be made today for so
gal,
than
more
companies—
200
out of every six listed
one
on
this
vehicle.
little
A
than
less
McKinsey
a
Company
&
made
ly, in November
which
ulation
certain
der
tions
issued
that,
they
can
op¬
which
but
just
ac¬
as
a
a
short term, pending
catastrophe such
outbreak
of
World
War III.
Theodore
Young With
J. Arthur Warner Go.
were
infallible
ba¬
rometers
for
the
long pull.
the
Since
Roger W. Babson
have
farmers
regulation, a second
stock option plans was
of
sudden
we
etc.,
Rates,
Board
wave
as
pos¬
system,
unforeseen
ures,
compensation. This meant, in ef¬
fect, that options were one of the
few means
remaining for man¬
tion
curately for
was
as
old
made
some
Crops, Fail¬
Money
as
be
the
of
Deal
New
ahead
the
the
depended
upon
such
subjects as
un¬
stock
provided
conditions,
not to be considered
were
period
a
under
years
reg¬
a
long
sible
Preceding
the Salary
1951.
Board
I
seen
great changes.
a
of the
first
100
option
plans to be adopted. Subsequent¬
Stabilization
time
have
ago,
year
study
had their
croos
since the RFC
wishing insured, and
has rprevented large failures, and
since we have Managed Currency
ity. The writer undertook a study
in place of the Gold
Standard,
of these additional plans, and cor¬
noted
to
companies
among
stimulate executive productiv¬
the
with
data
new
a
year
the
These
as an
new,
some
less clearly defined prac¬
beginning
are
substantial
the
have
we
to
that
of
the
to
every
for
its
these
about
Stock
problems
way.
Option
in
plans
company
has
a
problems when it
seem
compensation
to
were
20
If we were un¬
plied three-fold.
der the Gold Standard, Call Money
and
correct answer to
in
stocks,
increasing
same
(3) To what extent is Labor
practices, gaining in its determination to
secure
a
larger
percentage
of
Number of
Outstanding
of INVESTMENT SECURITIES
or
less
26%
5%
STOCKS, COMMODITIES
22%
19%
6-8%
Phone LD-159
Companies
(% of Total)
19%
3-4%
Over 8%
data
which
rectly
do
have
the
will enable
cor¬
three
On the other hand, we
much help
today from
Federal
Securities and
sion,
to
us
above
the
answer
questions.
the
Exchange Commis¬
Reserve
Bank,
the Statisticians of the De¬
14%
*A
(2)
Option Period:
riods appear to
City,
York
Trading Department.
their
Unsubscribed Motorola
Sik.
creasing?
(1) Stock optioned: The amount profits?
Hence, the ability to forecast the
stock set aside for optioning
to executives varied as follows: Stock Market is to collect reliable
2%
Inc.,
Co.,
&
New
Broadway,
Publicly Offered
chase
the
formerly of
Co., has joined
decreasing?
or
(2) Is the public's desire to pur¬
stocks
increasing
or
de¬
their
company
Stock to Be Optioned
120
in
Is the Cash, and/or Credit,
available
for
the
purchase
of
(1)
of
Per""nt."g° of
Young
R.
Warner
Arthur
J.
the three fol¬
lowing questions:/
two
no
market
stock
today
prices appear to be dependent on
meet
preciselv
summarized here.
T.
Theodore R. Young,
Theodore Young &
illustrations.
This explains the wide di¬
vergence
as
ness
a
executives;
companies
they
Rates today would be 6% instead
body of in¬ of 21/2%. I
might give many other
200-odd
incentive
instance.
ago, and yet the total busi¬
of the nation has been multi¬
Basically
different set of
comes
less than
are
of little
are
for
emerge
Plans
shows
Failures
years
plans.
Provisions
of
old barometers
these
use.'Take
earlier.
relatively
experimental,
even
or
Study
buy in
for stock market prices are
if
option
•
num¬
executive
an
revealing changes which have occurred in field
of stock market and business
must
earnings
Only
Broad
Home Office; Atlanta
shares
of
One popular
limit the
to
was
By ROGER W. BABSON*
competi¬
industry
movie
formation
•
restriction
of
the
on
of the exercise—such as 10% per year
options
at —designed to spread the incentive
Similarly
television's
the
from
Private Wires
of options.
exercise
number
restrictions
Probable Course of Stock Market
the
professor overlooks the fact that
tices
BROKERS of BONDS,
placed
option exer¬
on
increasing
because of out¬
options.
more
UNDERWRITERS and DISTRIBUTORS
plans
New Yardsticks for
is beside
it
company
standing
and
Exchange and Other National Exchanges
15%.
quarter
a
companies
call
for
100% of market.
cluded:
than
Restriction
An
ber
op¬
shares.
permitted single options
of
85%
choosing
dropped from 25%
companies surveyed.
has
15%
use
10%,
single
a
of optionable
cise:
price; now
this figure.
market
half
than
The
one.
of
of
95%
more
to
A year ago,
companies adopted
popular
15%
more
(6)
price constitute salary raises
made
that
percentage the
ket
has
op¬
Although the stock option
Established 1925
of
limited
16%
will
investors
incentive device is
Members New York Stock
that
ruling
Board
options for less than 95% of mar¬
the
point to talk about denying capi¬
related
BANKERS
Salary
The
price:
Stabilization
executives.
findings of
INVESTMENT
Another 31% set the limit at
to
exercisable
In other
share
of the
five
of
periods
ten years and another quarter are
a
a
plans limited the number
a single option to 5%
optioning.
of shares in
such
option plans in exis¬
the
of
factors
of the bloc set aside for
•
of the stock
executives.
fewer
or
(5) Maximum number of shares
in a single option: Forty percent
involved.
were
little
the
of
one
15
included
extend¬
the permissible terms of a
stock option from seven to ten
years
and
15
this factor in¬
executives/An
on
or rr.ore
number covered between
50 executives, while 20%
equal
length.
this
ing
to
provide
executives
words, if the option price agement
$20, the option agreement -with an incentive that was not
condi¬
might
provide
that
the
stock subject to the salarv freeze.
tions. From one-third to one-half 'would have to rise to above
Following this Wage Stabiliza¬
$25
length"
cluded 50
the
for
'
A
plans reporting
quarter of the plans
a
for
called
substantially higher prices
stock, including the un¬
pay
only
ago,
increase
must
the earnings of the company suf¬
to
the
on
about
rather substantially before the
p
provides
option must be
in one-half of the option
executive
from
executives
on
existence
The first is that the
value
ket
the
see¬
company
directorate.
of
for
reason
put
option plan becomes somewhat
dominate
consulted
been
half
more
benefit
involved.
point of view, at
well-thought-out plan I
its
facts
important
options.
period; otherwise it is forfeit. The
as
"adequate"
The problem of
that both
the
reason,
in any given year if
up
taken up
Delaware
question
constitutes
consideration
•
the
op¬
well provide that not
may
one
have
of
same
ten-year option is
least
decision
executive
than 10% of the option may
taken
Question of "Adequate
The
the
For
em¬
From the same
received.
be
the
of
This
passed?
the continued
ensure
ployment
a
has
year
a
tends to
United
that when
States, namely,
two
motive
to insist that
company
for
in¬
equity by giving stock options.
His
point of view overlooks
tion,
the option may be exercised only
deci¬
in
firm put it, "a real
legal profession."
Constitution
the
These
partner
a
should have little dif¬
a
also
He
against the competition of tele¬
vision, has any right to dilute its
than for
the
they
point
as
that plans adopted
say
companies.
fighting
For example, what is more logical
the
for
rights offered the
involved.
executives
rights
option
ficulty in meeting the legal re¬
quirements
for
"consideration."
with suf¬
"consideration"
sions
em¬
was
executives
review
under
provided the company
ficient
an
primarily to provide incentive to
Arch Patton
held
neither
that
stock
of
the optionee left the com¬
Lawyers
Delaware
Court
em¬
also cited as an exam¬
ple of "consideration" because the
provision tended to retain the
services of the employee.
stockholders.
In
the
Voiding
case
pany
dis-
by
g r u n
an
ployee who would otherwise have
left as an acceptable "considera¬
the
in
up
service
the
retained
option plans
set
one
ployment contract which actually
portion of the
200-odd
all
such
dustry,
In
stockholders?
able
act as
questions whether the movie
motivate the optionee
profits avail¬
or
sub¬
a
new
contribute to the
to
a
depressant, (2) hence
capital will eventually be
denied
simple yardstick: Does the plan
require
le¬
circles
in
pres¬
market
a
to be applying
seems
two points
(1) That the
of stock options may
ence
objectives more clearly.
the
to
option
stock
made
professor
plans to define their
stock option
Dela¬
the
unfavorable
option
panies
gal
of
of
basis
recent article:
plans are probably under suspect. Says decisions
require objectives of slock option plans to be defined more
clearly, and "adequate consideration" must be manifested. Reveals results of study of provisions of outstanding stock
option plans.
Recent
ethical
plans, for example, an economics
stock options
^
of
In questioning
results
and
option device.
the
outstanding
from one-third to one-half of
Patton holds
Mr.
misunderstanding
a
objectives
the
stock
legal attack by disgruntled stockholders,
Asserting recent Delaware Court decisions have made
options vulnerable to
unquestionably
plans
from
the
of
of stock
criticism
the
of
Seme
stems
McKinsey & Company
call
Device
option
Nearly half the plans studied
for 10-year options. A year
er.
Objectives of the Stock Option
*
Thursday, September 4, 1952
...
(822)
Option
pe¬
be growing long-
statement
Summer
New
by
Conference
Boston,
Mr.
of
Babson
"Boom
N. H., Aug. 29,
or
the
Bust,"
at
1952.
the
Of
175,921
recently
were
common
for
offered
its
by
scription
common
scribed for at $31.50 per
3
sub¬
stock¬
173,670 shares were sub¬
holders,
to
shares
of Motorola, Inc., which
(par $3)
p.m.
(EDT)
share up
Aug. 25, the
on
expiration date of the rights.
The remaining 2,251
taken
headed
and
by
up
by
the
Hickey
shares were
underwriters,
Co.
&
(Inc.)
reoffered by them.
The
srlHpH
net
tn
proceeds
working
are
caDital.
to
be
Volume 176
Number 5148
...
The Commercial and Financial Chronicle
(823)
and
Point IV in Latin America
By C. O.
other
basic
economic activi-
trainees
*or
of
ROWE
example,
in
the
Department
provides technical
Agriculture
assistance
Vice-President, Institute of Inter-American Affairs
An Agency of the Government of the United States
all
CUi?ure'^
The
phases
.
*
in
provides
Rowe, in explaining implementation of Point IV Program
Latin America, points out it is a
cooperative project, in
which
the
benefited
countries
contribute.
Reveals
program
for Point IV
Ac
thPir
etan^r^
•
•
rt
.
$1
put
Department of Labor
pro-
general category
such fields
as
administration,
apprentice-
United
is
few
world trade.
the way up to $13 contributed by
Brazil for its health and sanita-
are
tion program to every $1 contrib-
and El Salvador.
Perhaps
United StatesLatin
Ameri¬
uted
trade sta¬
can
cians
The yearly av¬
while
about
value of
30,
June
be
sign i ficant.
erage
countries
all
Department
of
will
training,
by the United States.
On
tistics may
American
650
1952,
United
working
in
more
than
S.
exports
in
iod
1936-40
$537,-
100,000 while
c. o. Rowe
technical
the
called
ate
and
is
America
$552,800,000.
was
By
1951, the value of U. S. exports to
Latin
America
had
risen
to
$3,--
744,000,000, and the value of U. S.
imports from
Latin America
amounted to
were
ance
Assistance
Helps
productive.
blazed
in
other
This
the
trail
areas
has been going on
directed
program,
Point
for
the
of
world,
for 10 years It
by The Institute of In-
Affairs, representing the United States Government,
its
From
beginning,
the
this
pro-
has functioned at the grass-
roots level. It
designed to help
was
governments
the
other
and
the
people
American
republics
to help themselves. Its chief purhas been to teach people how
pose
to
fight
disease, how to install
sanitary facilities, how to
grow more and better food, how
to improve their rural elementary
needed
schools, and how to develop simpie vocational skills.
The Institute of Inter-American
of the
began 10
in
cans
who
own
with
Latin
striving
were
most
to work
ago
years
hand
their
Ameri-
to
solve
pressing problems.
Point
IV
program
the
in
other American
republics is truly
cooperative. Projects are initiated
at
the
of
a
request of the government
Latin
American
country.
These projects are based
upon
an
ate
can
Security
° c
the first 6 months of
total of 655 training grants
a
approved.
were
of Inter-Aniencan
Affairs, represent ing the United States Governagreement
clearly
defines what the project includes
of
delineates
each
the
government
contributions,
both
responsibility
in
terms
money
follows:
They
the program first
major portion
funds
as
well
as
of the operating
most of the tech-
nical know-how. The Latin American share of the cooperative fund
has
increased
until in
dySenteries;
vital
environmental
statistics
training of medical
and
steadily,
however,
1951, the Latin American
as
orfn
sanitation; health education
tration of
con-
such
regis-
and
the
engineering
nursing personnel
The edu
cation program has confined itself
to
elementary education,
training, and teacher
vocational
the
on
ment of an adequate food supply*
the introduction of better plant
and
animal
varieties*
soil
and
'
water
conservation;
extension
agricultural
work; the introduction
of
cultivation; the organization of
basic agricultural statistics; training in better nutrition and per-
sent
by
The
American
-
Affairs
particular
country
States in
He
Institute
to
of
that
to
represent
the coopera-
serves
better
tools
and
methods
of
sonnel training,
simulta-
•
wjfbin
t atin
countHes
80%
Sip
of
™ia
nn
countnes' au%
js dependent on ot the Population
farming
roicino
fnr
or
cattle
ib7oiib™a
^
nftl p^nnnf produce
0±ten cannot
themselves^laid
if'
neighbors
food enough
theirfamilfes
iammes
their
surplus
a
for
for export. Thus in.
spite of the fact that Latin Amer¬
ica
has
or
foods
long
such
coffee
to
been
as
supplier of
a
meat, and
markets, hunger
sugar,
world
has been
condition
common
a
of
and
uation
it
agriculture, and
natural
training
195
grants
Institute
Social
the
Securitv
the Puhlic Heal
Office
the
of
i
social
and
Latistir*
anrl-'
Viiiitatirm
re-
t;nnai
were
,
child
the
™
of
statistics,
tural
rubber
building
research
nmH.iptinn
ate 1 Is pr
and
c
,
others,
trainees
in
carried
on
by the Ser
farming practices and increasetheir yields, thus improving their
and South Amerlca- These coun"
tries in turn reallzed that they
extension workers and other agri-
health and productivity
people, develop their
standard of living,
p
rnnppntratp*
nn
Tn
if_
•
+
work
standards of living.
Institute cooperates, thousands of
culturists
The
T _f.
Amorira
offer to sell
nor a
solicitation of
an
----trained
been
-
of
program
Servicio
in
done in all countries in which
In
nor
Paraguay,
neither
was
a
seeds.
prior to
year
source
the
Continued
tion, and transportation and
o
offer to buy these securities.
by the Prospectus.
ISSUE
$2,000,000
corn-
field
of
rural
Grants
the
in
elementary
education
JJJd In the fields of
vocational education totaled
79.
health, wel133 training
housing,
and
Fant?. we\e approved, the group
including doctors, nurses, sanitary
Sapphire PetroEeums Limited
Ten-Year 5%; Convertible
engineers, social workers, mdustrial hvgienists, health educators,
and laboratory technicians.
Due
Sinking Fund Debentures
July 1, 1962
Other Government Departments
Help
In
administering
program
in
Latin
the
Point
America,
jnstitute
makes
techniCal
advice and
full
the
of
use
the
assistance of
various departments a^d agencieg of the United States Govern_
ment..
jn
addition
.
_
,
...
Price 100%
IV
to
the
basic
Copies of the Prospectus may be obtained from such of the undersigned
are registered dealers in securities in this State.
have been going on for
the
Institute,
with
10
the
administers
scope
in
a
years,
help
technicians from 15 other
now
of
american
natural
Members:
New
York
whose
resources,
housing; transportation and
com-
munication, public administration,
York
Curb
agencies,
program
underwriter
r.'cLaughlin, Reuss & Co.
New
includes technical assistance
developing
as
.,
,
Dr08rams in health and sanitation,
Stock
Exchange
Exchange
August 29, 1952
underwriter
Frame, McFadyen & Co.
Members
Toronto
Stock
Exchange
(Assoc.)
One Well Street
New York 5,
canadian
N. Y.
25
King Street West
Toronto
1, Canada
1947,
commercial,
a
governmental
Each
an
is function¬
#
niunication.
to
the Agricul¬
Paraguay is a.
good example of the work beingtural
during the past ten years, the In¬
stitute has concentrated on the
an
have
such work.
carry on
there
work in J--3"11 A™e 1C
Further¬
through work in which the
more,
ing.
Ra«dr
Essentials
^
own
agricultural program
The offering is made only
the
rEW
Through the agricultural extensjon WOrk
natural resources, and raise their
„
,
irrigation, and soil conservation. use, town planning, and commuThe Division of Government Administration and Technical Services of the Institute approved 248
training grants during this same
This announcement is not
6-month period. These included,
among
materials
isphere but whibh had been cut
off by enemy actlon m both the
Atlantic and the Pacific. The one
remaining source of some of them
was in the coun,ries o£ Central
of "-their
'
strategic
Prove
prhipatinn
„
of
vora-
fields
in
need
roha-
and
including agThe Housing and Horpe Fman
ricultural
mechanization,
grain Agency is concerned with the Instorage, fuel technology, entomol- stitute's program in the fields of
ogy, fisheries administration, forhousing design and construction,
estry, economic geology, agncul- L„;iJinrt
approved
Million Farmers Benefit
^ United stateg waj? desperateiy
in
of the agricul-
even
population,
time
nfcattnnt3wS^ordeftn^m
nical kpow-how in order to lm-
welfare,
vnrational
upnpral
h
Fduca-
.
5
sources,
the
Aeencv
and
large share
-- ---------a
freTpeoples orthrWestern'Hem- have8' leTrnecTto ^mprove^rir
food suPPly> and education, which
1942 when
began, the United States furnished
a
sources
^ese awnHes assist, in
| °h;=' StV
dis-
were
research,%nd development
For
in
of
and
manpower.
"In
departments
the government of the United
The Director of the Ser-
states.
,
reclamation,
ArtmWstTatinn
cprvi„P
tributed among the various fields
in which the program operates as
government and The Institute
and
power,
supply,
with
Ministry of the Latin Ameri¬
This
a
cultural
Jb™"gb^
agreement between the appropri¬
ment.
water
During
1952,
fare,
Cooperation Is the Keynote
The
hydroelectric
:.
.
fields of census taking and-statistics, mapping and surveying,
Cooperation Administration and industrial chemistry, budget and
thus responsible
for supervision finance,
personnel management,
of all Point IV activities in that c3vd aviation, highway construchand
similar to
an
an
helds^oCjetoJLogy^ mmerology,
Training Is Emphasized
Affairs, now Latin American Regional Office for the Technical
area
(he
centers*
diseases
fp^r
program
that
of Inter-American Afregularly makes grants to
cases^
ter-American
gram
vpllnw
devilop-
substantially
tive program.
ditional training in the United land management
in Latin America States, or elsewhere in certain
program
which
specific
has concentrated
the United
cooperative technical assist-
more
of
American
of
training. The agricultural
.
terns in
hospitals and health
malaria
^
ing conditions and to make them
is
cpttinu
setting
qualified Latin Americans for ad-
has sought to give great numbers
of people better living and work-
IV
is
Institute
a contract made by IIAA
m Latin
terns in
States
thp
the
and
adequate sewage disposal systems*
construction
and
equipping
of
the
-
0f
pro¬
organized as
of the appropri-
government
American country
one
meant
tation program, emphasis on
viding safe water systems
chiefly
is
in
Latin
bureau in
Inter
Institution
the
is
has
party
.
with
functions
This
of the health and sani-
case
vicio is usually the Chief of Field
Haiti
in
in
pat- American
country, and also Chief
attemot to
+.V
attempt to discover 0f TPioia TJ^v+vr answerable to the
discover nr Field Party,
up and the operation of each pro- better
means of communication American Ambassador and to the
ject until such time as nationals and'.understanding between na- Institute. Some of his staff memof
the Latin American
country tionals of the other Americas and bers and the technicians working
assume
complete
responsibility United States technicians.
with him are United States citifor it.
An important part of the
The Department of the Interior zens; the others are nationals of
Point IV program in Latin Amer- is. directly concerned in the In- the Latin American country.
ica is the training of Latin Amer- stitute's training program through
The
c0operative technical
asican nationals to take over the arrangements made for sending gfstance
program in Latin Ameroperation of individual programs. Latin
Americans
representing ica
began in ig42 under NelgQn
In cooperation with other United many fields to Puerto Rico for Rockefeller coordinator of InterStates Government agencies, The training It is also assisting in the American Affairs. At
fairs
The
United
snnprvisp
supervise
Institute
$3,346,700,000.
Technical
technicians
work
fields
several
program
Ministry
the
0f
assistance
Servicio.
a
essentials.
.
of U. S. imports from Latin
erage
to
activities
*
.
the yearly av-
in
America,
14,150
Latin
program.
tppbnipinnc
technicians
ica in the per¬
totaled
the
training
with the Smithsonian's Institute neously in two capacities. He is
of Social;Anthropology. The lat- Director of the Servicio answerServicio, answerengaged tor organization is doing research abie to the Minister of the Latin
able
Latin
American nationals
to Latin Amer¬
Labor's
Smithsonian
through
.
U.
in
cooperating
were
techni-
.States
be
scheduled
The
tnere
this
and administers the various Latin
American
basic
trol
——-
participants in
Latin
Budget
in
fiscal and personnel
assistance in the
The Servicio
industrial safety, labor ah integral part
ship training in various industries,
America become better
suppliers States. The ratio of contributions labor-managment relations, labor
o
their own domestic
needs and runs all the way from one to one standards, and workers' education,
more generous
£
m +1
the case of some programs in a While the major -—*-*—
portion of the
the
Included
technical
\ eds 9
..
by
in
with
in the
the
administration.
.
The
success
vides
.
,
each
of
handles the trainees in Public Ad-
organization, and small in- projects in
dustry development
which the
in?- countries were contributing $3 for law
peoples of Latin
assists
It
these fields.
office
Program in Latin America.
siandard °Tf llvipg
free
the
proves,
and
testing and standards,
and surveying, patent
mapping
industry and natural re¬
of "Servicio," which is the
operating
for Latin American technical assistance. Claims
agency
technical assistance
services,
agriculture,
Describes work
in
Bureau
agri- ministration.
^
of
The
training in civil aviation, mantime
administration,
statistics, The Servicio Is the Operating Tool
highways,
government
weather
The operating agency that
plans
of technical assistance and
grants made for training in research
and development of
sources.
of
<
Commerce
o
Department
Mr.
nity organization.
ties.
7
best
of
crops
npage
30
Financial Chronicle... Thursday, September 4, 1952
The Commercial and
8
(824)
Archer-
Eagle Picher Lead;
Daniels
i
News
Dealer-Broker Investment
understood that the firms mentioned will he
is
Notes
NSTA
[The
expressed in this
necessarily at any
with those of the
views
article
do
not
coincide
time
Chronicle.
They are presented as
those of the author only.]
pleased
the following literature:
send interested parties
to
Shipbuilding and Briggs
& Stratton.
Recommendations & Literature
It
Newport
Midland;
-
SECURITY TRADERS ASSOCIATION OF NEW YORK
Security Traders Association of New York will hold their
outing Friday, Sept. 5, at the Richmond County
The
Stocks
Common
Investment—Suggested
for
list arranged
by
industries—Eastman, Dillon & Co.. 15 Broad Street, New
York 5, N. Y. Also' available is a bulletin of "Rail Briefs"
featuring Seaboard Air Line, Florida East Coast, MissouriKansas-Texas, Reading Company and Central Railroad of
New Jersey.
appraisal—Stroud
& Company, Incorporated, 123 South Broad Street, Philadel¬
phia 9, Pa. Also available is a semi-annual appraisal of City
Equipment Trust Certificates—Semi-annual
of Philadelphia and
Stocks
Insurance
—
Philadelphia School District Bonds.
results
operating
of
Tabulation
for
six
1952—Geyer & Co., Incorporated, 63
Wall Street, New York 5, N. Y.
Also available is a tabula¬
tion of operating results for the six months ending June 30,
annual
Country Club at Dongan Hills, Staten Island. Tariff is $8.50 per
person. A lobster dinner with all the trimmings is promised those
attending and golf and ail other sports are available at the club.
Data—Bulletin tabulating statistics on
Fund
Public Utilities
New York
Review—Sutro Bros. & Co., 120 Broadway,
—
&
As of
"Highlights"—Troster, Sing¬
Co., 74 Trinity Place, New York 6, N'. Y.
*
*
*
K. I. M.
&
Electric
—
&
Red-
Memorandum—Josephthal & Co.,
Broadway, New York 5. N. Y. Also available are memo¬
on
Dayton Power & Light, Southern Indiana Gas &
Electric and West Penn Electric.
er
same
Company and
a
"Gleanings"
Co., 1 Wall Street, New York 5, N. Y.
issue is
a
Dun
firm's
his
II Wall
J. F.
Waldron
of
Hoffman
Last
week
the size of his firm's ad.
on
Unaffiliated
Merrill
John
My
advertising
Mississippi Valley Public
&
bulletin
on
an
Walter
you
Circular
—
Republic
4, 111.
Otter Tail Power
Co.—Analysis—J. M. Dain & Company, 110
South Sixth Street, Minneapolis 2. Minn. Also available are
comprehensive reports on Red Owl Stores, Inc. and Winston
& Newell Company.
Sound Power &
Light—Review—Ira Haupt & Co., Ill
Broadway, New York 6, N. Y. Also available is a memoran¬
on
Central Maine Power.
Puget Sound Power & Light Co.
—
Report—Pacific Northwest
Company, Exchange Building, Seattle 14, Wash.
Riverside
.
Cement
Co.—Analysis and review of the Cement
Industry—Lerner & Co., 10 Post Office Square, Boston 9.
Mass.
Seabrook Farms Company—Analysis—Frederic H. Hatch & Co.,
Inc., 63 Wall Street, New York 5, N. Y.
Standard
Cable
Corporation—Bulletin—Englander & Co., 115
Broadway, New York 6, N. Y.
Strong, Cobb & Co., Inc.—Brochure—T. H. Jones & Company,
Union Commerce Building, Cleveland 14, Ohio.
Union Carbide & Carbon Corporation
&
—Analysis—William Blair
Company, 135 South La Salle Street, Chicago 3, 111.
Westinghouse Electric
Union Bank
Data
Stern, Frank, Meyer & Fox,
Building, Los Angeles 14, Calif.
—
the
on
as
one
at
or
have
The
hear about.
It's that way
Once
*
For the past
*
you
the
pointing out
dangers that seemed to
loom
on
the horizon.
The fact
at
*
Does it
mean
that
of
buy it
you
a
given
here,
*
*
As
satisfaction. taken the
matter of fact
a
place of
any
latest
*
department.
attempt
to
though
In any
signs of a
an
the
Send
for Your Copy
opening paragraph. When
an
illness
Members: N.
74
Y.
Security Dealers Association
Trinity Place, New York 6, N. Y.
becomes
wide¬
sounded
&
Reed, Inc., 8943
Wilshire Boulevard.
ssssssaac
DIRECTORY
OF
STOCK and BOND HOUSES
A
page
book
containing
covering
all
United States
1,400
listings
and
geographically
are
Listings
cities.
Canadian
are
7,900
and
arranged
alphabetically,
and
comprehensively detailed:
seems that the next
direction of the market will
Firm name tinder which business Is con¬
and date established
ducted
including
Address,
Street
District
General
Post
Office
Numbers
Character
of
Business
&
Clssa
of Securities Handled
Names
of
of
Partners
Exchange
berships
Pbohe
and
(including
Name*
Association
Phone Conneo-
Systems—Teletype Numbers—
Correspondents
—
Clearance
Arrangements.
ALPHABETICAL ROSTER of
showing city
Mem¬
N.A.S.D.)
Numbers—Private
tions—Wire
An
Officers,
or
Department Heads
Stock
in
all firm*
which they are located la
another valuable
feature.
being, it
be up.
Bound in durable limp
fabrikoid—$12
It will probably arrive
with an increase in volume,
the
turn
is
right
the patient dies. plus an increase in the stocks
that will join the parade.
Today the bearishness that I
spread,
ahead;
Troster, Singer & Co.
show
Before I
this I'll signs of dissipation. That be¬
observa¬ ing the outlook, for the time
tion that I started to make in
affiliated
become
Waddell
with
Calif.—Van
HILLS,
has
new
may mean something,
what it is escapes me.
.
answer
precede it with
"HIGHLIGHTS"
have
brag shakeout that was anticipated.
Of Markets work that crazy way!
*
*
*
course
anybody knows that
all pointings with pride have
Labor Day, that
magical
to be preceded with
viewings point in the calendar that is
of alarm; otherwise there's no
supposed to mark the line of
percentage in the pointing demarcation, is
now
over.
with pride department.
This passing of the mystic day
*
Steele
A.
"Security Dealers of North America11
*
In any case it now looks as
if the bears have too much
So far, so good.
Now we
have to head into the what's event the ominous
few weeks back now
ahead
our
share
It gave me a chance to
and
point with pride.
*
With Waddell & Reed
if
time?
a
all this bearishness may
were
change.
want to buy 100 shares of
warnings
source
Co.,
BEVERLY
company.
a
now
members of the Boston Stock Ex¬
*
that the familiar averages did
break shortly after the first
was
is
(Special to The Financial Chronicle)
foregoing is excellent
at
any
time. The
few weeks this something
column has been
&
son
"buy
proceed
—
with the market. tion"?
*
Maine—Ralph W.
with H. M. Pay93 Exchange Street,
PORTLAND,
Bradeen
of
and
they advice
have run their course, how¬ trouble is, what does it mean?
How does one buy "a selected
ever, the chances are that the
stock" and do it with "cau¬
patient will improve rapidly.
you
—
Ideas for your retail in
other
The best
order
Joins H. M. Payson
(Special to The Financial Chronicle)
contagious
as
of
Even the
with caution."
of those virus diseases
ORLEANS, La.—Miss T.
Dykes
staff
always looks
the boys who
systems,
stocks
*
Pessimism is
Investment Company, Inc., 231 South La Salle Street, Chicago
dum
vice
of
has been added to
Slayton & Company,
Inc., 1803 Broadway.
get is pontifical ad¬
Also avail¬
England Public Service Co.—Analysis—Ira Haupt & Co.,
III Broadway, New York 6, N. Y.
—
can
selected
By WALTER WHYTE
analysis of Time, Incorporated.
New
Puget
Helen
sounded the alarm.
Whyte
Says—
Bankers Trust Company.
Service Company—Analysis—Loewi
Nuclear Instrument & Chemical Corp.
nose
complicated
Development—Re¬
director
as
(Special to The Financial Chronicle)
NEW
make with the charts
Markets
years
With Slayton & Co.
Committee
down his
15
Harold B. Smith
statistician who
Tomorrow's
Brown, Jr.
research at Lehman Corporation.
Pershing & Company
120 Broadway, New York 5, N. Y.
Cement.
Co., 225 East Mason Street, Milwaukee 2, Wis.
able is
served
HAROLD B. SMITH, Chairman
&
Edmund
agement Company, Investors Man¬
Barney & Co.,
Singer
In¬
Man¬
agement Fund, Inc. and Funda¬
mental Investors, Inc. after having
only
to
of
vestors
joined the parade.
for Reconstruction and
a
Mr.
was
formerly Pres¬
ident
of
personal
amounts
NSTA Advertising
Earnings, Market Action and Growth—Brochure—
The First Boston Corporation, 100 Broadway, New York 5,
Also available is
Reilly
own
sources.
N. Y.
de¬
Brown
tising contracts from other than dealer-broker
Radio—Circular—Raymond & Co., 148 State Street,
Mass.
/ <■ '
Bank
planning
partment.
Lynch,
firms?
Boston 9,
International
firm
the investment
thanks both to Stan and John.
Co., 74
Also available is material
and Giant Portland
May
the
Manager of
as
the
Batteries—Circular—Troster,
Gerotor
Jr.,
become
with
returns, in¬
members, and only
Street, New York 5, N'. Y.
Dry
an¬
that
associated
y$m
Nine
Reilly & Co., Inc., also checked with me
suggested list for Portfolio.
Trinity Place, New York 6, N. Y.
on
any
has
largest groups.
our
ad.
report on Washington Water Pow¬
Bradstreet, Inc.—Memorandum—Smith,
General
Ex¬
Brown,
"Financial
the
of
but
encouraging,
made
hear from
Stan
Broadway, New York 4, N. Y.
&
not yet
to
Copeland Refrigeration Corp.—Circular—J. Roy Prosser & Co.,
11
issue
Convention
most
$562 to date. Can't we get busy on more adver¬
C. I. T. Financial Corp.—Report in current issue of
Also in the
f
o
and
Edmund
Pierce, Fenner & Beane cafled for a contract
Parker
randa
—Francis I. du Pont &
like
yesterday
is
about $10,000 toward the 1952
have only a short time to go.
we
cluding three of
do
we gross
Year-Book
This
affiliates have
for
Chalmers—Memorandum—Auchincloss,
path, 52 Wall Street, New York 5, N. Y.
120
members
the New York
Stock
,
Allis
American Gas
Penington, Colkel
nounce
September 2nd,
Official
NSTA
I
At
Penington, Cclket & Co., 70
Pine
Street, New
York
City,
changes,
AD LIBBING
5, N. Y.
Retail—Ideas—In current issue of
er
the vari¬
funds—Reynolds & Co., 120 Broadway, New York 5, N. Y.
ous
Edmund Brown, Jr.
Curb
sports.
Chronicle."
1952 for Bank Stocks.
Green-
For reservations and other information contact Thomas
berg, C. E. Unterberg & Co.; Bernard Weissman, Siegel & Co.; or
Salvatore J. Rappa, F. S. Moseley & Co.
James A. Donnelly, Jr.
is in charge of golf and Herman D. Meyer, Gruntal & Co. of other
months ending June 30,
Mutual
summer
ENTER YOUR ORDER TODAY
or
the
bell
for
a
few
*
*
25
weeks ago has acquired a lot
Here's a couple of stocks
of company. There's hardly a that show better than usual
market technician that hasn't
HERBERT D. SEIBERT & CO., INC.
*
performance:
Carrier Corp.;
Park Place
New York 7, N. Y.
REctor 2-9570
f
3SSS9R
Volume 176
Number 5148
.
.
The Commercial and Financial Chronicle
.
(825)
From
Steel Strike End Spurs Sharp Production Rise
Washington
Ahead
By CARLISLE BARGERON
A
The Tidelands oil dispute and oil
multimillionaires have come
to be very much in the Presidential
campaign but I can't see the
issue affecting the outcome.
At the conventions in 1948
and this year
fabulous operators on the scene and fabulous
stories
accompanied them.
One fellow we
heard a lot about at
Philadelphia in '48, a
Texas operator, had money to burn and his
ambition
He
to
was
was
make
present
this
Martin
some
about whom there
for
the
publicity
They
artists
were
who
Survey
Chair¬
h
a
duction
ment
It
and
the
things
President
and
Governor
Stevenson feel that in the absence of this
Texas, along with other
Southern states, will remain in the
Democratic ranks.
Truman
points out that there are many more
people in Texas who don't
have oil wells than those who
do, that the Tidelands issue
does
not get down to the rank and file
voter.
right.
I
am
convinced he
is
This does not mean to
say that Eisenhower in
adopting the
States Rights' position of this issue is
not right. But the
principal
benefit from such a position will be
campaign contributions and
not votes.
re-
the interested States or
entitled to these off-shore
properties
important question of whether the properties are to be
is the
more
developed
or
not.
are
They would be
under
State
ownership.
the Federal
Under
Government, under Truman and presumably Steven¬
they would be turned over to the jurisdiction of the Interior
Department and ''conserved." A lot of political sin and
skulldug¬
gery have been committed under the name of "conservation."
son,
Theodore Roosevelt, back in less critical
times, was able to make
a
major political issue of it. The "conservationists" and "anticonservationists"
lined up at each other's throats.
were
The
late
Gifford
Pinchot, twice Governor of Pennsylvania, and a stormy
petrel in American politics for some 25
years, had "conservation"
as
his main vehicle.
Just
what
the
was
what justification there
prepared
to
Roosevelt
the
for
"conservation"
its
First, and Gifford Pinchot, two able
practitioners
rather cynical. Today the
only justi¬
fication in the matter of Tidelands oil is to add to
the bureaucratic
domain of the already bursting at the seams
Department of Inte¬
rior. It would seem to me that the American
people should be
against increasing a single Washington agency's
power by one
of
demagoguery, make
And
ounce.
it
after
The
proposal
that
order,
reversal
are
of
the
past 18 months. In August,
orders have taken a sharp rise and
production
shows
a
substantial
increase
after
slow
a
the
Bureaucrats
lands
are
to
panies' real
only under his
be developed
or
ROCKFORD, 111.
ford
Securities
—
Associa¬
"Fling-
Ding" Sept. 26 at the Mauh-NahTee-See
Country Club.
sports
will
be
Golf and
featured, to
be followed by dinner and enter¬
tainment
vations
in
are
the
$10
evening.
Reser¬
and
shquld be made with Richard G.
per
person,
Olson,'Ticket Chairman, 708 Talcott Building, Rockford, Illinois.
be
the
That is
met,
if
Association.
tions
will
the
by
the
range.
also
they will
Hotel
production
is
for
since
closed
March
change
of
time
That
of
was
more interested in procuring
near-by requirements,
and
are
not
reaching far beyond those
needs,
In
Forthcoming GTA
industrial
$20,000,000 Issue
in
Five investment houses retained
reversed
by the Chicago Transit Authority
consultants
as
in
marketing
,
that
r}ew
P*aced
sl"ce
Industries
dependent on steel,
said, will continue to feel
depressing
effects
of
the
strike, as sparse and unbalanced
consumed
are
and
delayed.
A
previous
Harris, Hall
Company, Chicago, spokesman
&
.
.
°
,rs.
,aY,e keen ville; Memphis; Atlanta; Denver;
steel strike, they gan Francisco and Los Angeles.
Besides Harris, Hall & Company
the
^
fo^ several montns.
ltems> tor several months11
tion' Blyth & ComPany> Inc-> A- C-
.
re-
,
.
Payroll
upturn
additions
in
the
took
second
Nuveen &
a
sharp
half
of
work
the
properties
trary
would
stantial
a
sub-
ules
minority, 42%, who fore-
of
back to
those
a
normal basis.
reporting
58%
estimate
This announcement is neither
an
offer to sell
The offer is made
nor
a
an
which
is owned by the Omnibus
Company of New York City, for
about $16,500,000 and will pay for
additional improvements in the
CTA system," said Hall. He said
acquisition
and
of the
motor
business
thereby
achieve
offer to
buy these securities.
only by the Prospectus.
New Issue
78,734 Shares
Carrier
Corporation
(Cumulative) 4.8% Series
be
arranged
if
Association
Conrads, Conrads
&
are
per
share
During the subscription period, the several Underwriters, including the undersigned,
may offer and sell Preferred Stock (Cumulative) 4.8% Series, including stock pur¬
chased
or to be purchased
by them through the exercise of Subscription Warrants, at
prices not less than the Subscription Price set forth above less any concession to
dealers and not greater than the highest current offering price in the Over-the-Counter
Market plus the concession allowed to dealers.
Paul
Company,
President; Richard Olson, King
Olson, Surprise & Co., Vice-Presi¬
Copies of the Prospectus
other dealers
as
are
may
obtainable from only such of the undersigned and such
lawfully offer these securities in the respective States.*
dent; and Boyd J. Easton, Secre¬
tary-Treasurer.
Leonard J. Marquis
Leonard J. Marquis, partner of
Harriman Ripley & Co.
Incorporated
September 4, 1952.
,
the
by
bus
CTA
complete
transit unification in Chicago.
this
solicitation of
cover
purchase of the properties of the
Chicago Motor Coach Company,
affecting the steel industry. Con- mills get their production schedis
in-
Company.
"The bond issue will
stoppages, August, as vacationers, strikers
considering the new capacities and furloughed workers returned
producing and coming into to their jobs.
Steel-consuming inproduction, estimate that schedule dustries, particularly those withdifficulties may be well ironed out
substantial
defense
orders,
out by the end of the
year, as- will
be plagued by layoffs and
suming there are no new strikes short running time until the steel
opinion
syndicate
Allyn & Company, Inc., and John
Employment
ma-
management
ciudes The First Boston Corpora-
and
that
•
have already been received from
,
now
to
according
J
snort .ranS?* ^iany Jnclias
trial inventories will be controlled
jority,
58%,
remembering
the
quick recovery of the steel mills
from
financial
by
investors,
to Edward B. Hall of
ghortTanee6 Manv ^ndus7
is
the
are
interest
and
+
™any
range deliveries on these orders.
placements
dealers
Requests for active participation
Subscription Price $53
notify
a
Raw material inventories have New York; Boston; Philadelphia;
worked d°wn
the low Newark; Cleveland; Pittsburgh;
P+
i?
Year and, due to the Detroit; Minneapolis; St. Paul; St.
+ar^ KStnG
wv!u~ Louis5 Kansas City, Mo.; Indiaported badly out of balance. While napoiiS; Cincinnati; Toledo; Louis-
much
of
the
new
business is in orders held back
by
the
steel strike, and the short-
it
widespread
for the group.
Inventories
*
'•' i •
r.
this
temporary is inPurchasing
Agents'
in
reports
1951.
sched-
first
be
may
dicated
the
com¬
reserva¬
usual
Buyers
are
Tide-
oil
The
Association announces that L. J. Marquis &
Co., New York
quests planning to come by train City, passed away on August 16.
accompanied
longer commitment
The Company is offering these shares for
subscription by its Common Stockholders,
subject to the terms and conditions set forth in the Prospectus. The Subscription
Offer will expire at 3 P.M., Eastern Daylight Saving Time,
September 17, 1952.
Officers of the Rockford Securi¬
ties Dealers
E.
The
heavy
August was
in
($50 Par Value—Convertible prior to October 15,1958, unless previously redeemed!
requested.
The Rock-
Dealers
tion will hold their annual
other
will
fav0r.
orders
Wide Interest Shown
artifically
cated metal parts.
incoming orders
outgoing
uled
concern.
Group
Hold "Fling-Ding"
policy
days> with 30 to 60
unreasonable terms.
is, in fact, whether the
"conserved."
Rockford Dealers
To
own and
the whole matter
of
crux
an
trend
prices
Preferred Stock
assumption
he would continue to serve under
Stevenson—would simply store
the property away with the rest of his
bureaucratic power or per¬
The
not
predominant
90
this
on
matter, that part of the funds from the Tidelands go to the schools
and teachers is pure buncombe. It is
designed to line up the pow¬
erful teachers' lobby on their side. The facts
are that there would
be very little funds under Federal
ownership for anybody. Oscar
Chapman—and there is plenty of justification for the
mit exploitation
from,
UP> reflecting the increased costs,
T1?e question in many buyers'
minds is "Will they stick?". Competition is very keen for fabri-
Summer,
trying to hog everything.
"Liberals" and
days tn
release of
vacations
me
of the
The
over
Past 18 months. Steel, copper and bond issue of approximately $20,pickup in aluminum were the leaders of the 000,000 to purchase the Chicago
responsible fo'r a movement. Items containing these Motor Coach Company and make
recessional trend materials are expected to move other CTA
improvements, report
plant
that
Eisenhower, instead of passively
taking his stand with the States-Righters on this
matter, could
blow it up into a first rate issue as another
example of the mon¬
strous Federal Government
is not
and the usual seasonal
me
strikes
markets.
in
those days,
for the great hue and
cry, I am not
foremost political exponents were
was
That
say.
need
up-
of a
ending of,
August, with the greatest number
reporting higher quotations in the
of
inventories
Underlying the question of whether
the Federal Government
down
material
Robert C. Swanton
and
and
the
recovery
The
of
steel
operations
Truman
August
Agents
continue
their very cautious view of future
beginning
but
unrest
Commodity Prices
The gap between
to
the
the second quarter.
labor
Buying Policy
points
strike,
turning their State organ¬
support of Eisenhower, however, are two
a
purchasing
the
not
that
sumption
and
that
of
and into
Purchasing
three months. The cautious
attitude is to "wait and see."
braced President Truman's stand that the
Tidelands
Federal Government.
different
opinion
by the end
anticipate diffi¬
low
Inc.,
Haven,
of the
over
the
boom,
the
em¬
greatly
range.
is
new
settlement
belong to the
in
Employand buying policy
up,
is
Com¬
Conn.,
Stevenson, who has
up
Predominantly within
olwf111
90-day
ses,
politicians of both political parties in
issue is very real. The oil
industry of their State is up in arms
it and thus it behooves the
politicians to be concerned. This
explains why Governor Shivers and Democratic National
Commit¬
teeman Wight Morrow and other Texas
Democratic leaders have
withheld their endorsement of Governor
izations
was
turn
out
over
were
requirements.
of
dustries,
But to the prac¬
Texas the Tidelands
.
reduced and out of line with
pro-
executives,
New
Carlisle Bargeron
,
pointed
copper,
Arms
campaign fund raisers if there were no Tidelands issue because they are bored with their
money and want some other form of excitement.
,
,
Inventories
Repeating
legitimate
entirely
and
inum
chesjter
n
,
August.
is Robert
u r c
.
Prices, sparked by steel, alum-
pany, Division
of
O 1 i n
In¬
conventions like flies and
undoubtedly 90% of
the money they put out was sheer
waste. Very
likely both of these men would be soft touches
for the publicity artists and for the
Withholding their endorsement
r,
Purchas¬
Business
Agents'
of
42%
is
reported,
with many strikes now called and
others in the making.
cast unbalance and shortages into
second quarter of 1953.
pur-
Swanton,
Wi
both fair prey
haunt political
tical
of
mmittee,
whose
P
President.
by another Texan
stories that he made
were
week.
a
o
C.
money towards the nomination of Eisenhower.
But he was overshadowed
$16 million
ing
Association
Director
Chicago Republican
giving freely of his
year
National
man
the
at
convention
Joe
were
opinion
1953
Much
chasing agents who comprise the the
C
there
composite
accomplished
year.
culty through the first quarter of
Business Survey Committee of the National Association of
Pur¬
chasing Agents, whose Chairman is Robert C. Swanton, says in
August downward trend in production and orders, as well as
that of prices, were reversed.
of the News
be
can
of the
9
Hemphill, Noyes, Graham, Parsons & Co.
The Commercial and Financial
10
Chronicle
Thursday, September 4, 1952
#
...
(826)
personal taxes compared to
direct
Silly With
Public
Utility Securities
to its very
threats
Straight Face
a
labor faces
"American
personal income — "the national
average rate of taxation on per¬
sonal income early this year was
of danger and of
era
an
By OWEN ELY
than
*
*
*
at
12%,
existence.
Electric Bond and Share
Share
and
Bond
Electric
its 1951 report to
recently issued
asset
are
$110
million, an increase of 33% over the previous year. Eight years ;
ago, on a comparable basis, the common stock was "under water"
by some $2 million, since market quotations of the company's in¬
vestments in the United States (together with net current assets)
was about $2 million less than the preferred
stock liability, since
paid off. Also, stockholders have received rights and dividends
struggle for
"There
holdings in Foreign Power, but ex¬
which no market quotations are avail¬
able, the total net assets applicable to the common stock at June
30, 1952 amounted to $144,548,400, or $27.53 a share. Ebasco which
started on a small scale 10 years ago with only five clients outside
the Bond and Share System, earned a net income last .year of over
$3 million.
Capitalizing this arbitrarily at seven times, the esti¬
mated value would approximate $4 a share for Bond and Share. .
Including the company's
For
be with
can
Share
payments on the new common stock by declaring a dividend of
in stock and 10c in cash.- With the stock selling around 9,
was almost equivalent to the anticipated annqal rate of 80c
1%
this
a
indicated that these payments
share, although the mangement
establish
did not necesarily
a
quarterly rate.
considerable difficulties
in obtaining exchange for dollar remittances in Brazil and Chile
'this year. However, in Chile the recently announced arrangement
for sale of copper to the United States at world Market prices
<should result in some improvement in the exchange situation. The
difficulty in Brazil stems from that country's failure to regulate
imports, which until recently considerably exceeded exports. This
'condition is now slowly being righted but new credits from Wash¬
ington may prove necessary to bolster the situation.
Foreign
has
also
Power
an
investment
Argentine, from which
$100 million
of
tied
up
the
in
it is getting little or no income in New
natural resources as described
However, Brazil has tremendous
story in "Readers' Digest."
in the recent
which
economy,
should
'
Foreign Power might be able
event
sified.
mala,
Cuba
In 1951, income
operations are fairly well diver¬
from Colombia, Costa Rica, Ecuador, Guate-
and Venezuela, plus that from either Brazil or
would have approximated total interest requirements, plus
Panama
parent company expenses and taxes.
as
Except for temporary block-
to Brazil, over at least a 20-year
period Foreign Power has,
aggre¬
stand¬
days, such a
presents quite
picture
a
capita
per
dis¬
real
basis,
income at the 1952 first
quarter annual rate was only 1%
above June, 1950, and actually 7%
posable
than in 1945."
less
Measures such
Under
rates
be
must
an¬
used
mind.
in
limitations
their
with
these, the
as
alysis 'continues,
just how silly Mr. Lewis
system of graduated tax
s
analysis of the
the dis¬
of personal income, its
income,
on
load "can hardly overlook
tribution
time,
over
or
changes in
no
Board
Conference
dustrial
pre-
"take" by all
levels of government
fiscal' 1952 place it near a rec-
ord
billion
billion—$16
$86.5
22%
1951,
in
taxes
than
or
1951. '"And
than 'for
more
were
local
and
an
estimated
for every man, woman
$142
the Board
government
?rnds! clfto
lyou
1950
$557
and child—
than it did at the war¬
peak, and $184 above the
peacetime mark
The lyoa
1953
peacetime
marx.
ine
larger^
volves
Korean federal boosts is
taking
hold
and
and
state
continue
to
*
revenue.
more
only
all
aver-
gliding
many
over
differ¬
ences."
"Such
Tax Loads
any
which
away
at
omission' dras¬
an
util¬
the ^measure's
tically limits
ity."
Specific Taxpayers
on
1
appear that the recent stepping up
Federal income-tax load,
,?
The
proportion^ all inTome taxes
p opo t on ot ail income taxes
Pa'd by P6rS°nS earmng l6SS than
of the
$5,000 declined from 51%
in
Of the methods employed in re-
tax-navine
of
1945'to 39%
to
down
by Income
c°"c®.n'
j1SiianCu'
total
Taxes Measured
of^oT- ab.hfy
for the
like
per
.Averaging taxes, like averaging
apples and oranges, necessarily in-
more
time
And,
capita figures can be
misleading as well as helpful.
ages,
preceding Korea."
The, 1952 bill for Federal, state
criteria.
tax
25% more
extracted in the
meant
turn,
omit
taxes
little light on either specific burOne
"measurement
tool
of
a
dens on people or firms or on spe- more specific nature" is the tax
cific economic effects — nor do
paid by each income bracket as a
they
contain
any
reference to
..
.
...
either tax-paying ability or other whole.
By this measure, it would
liminary estimates of the total tax
in
hidden
to
effectively nibble
income.
des from down-to-earth actuaiity.
"Such
over-all
measures
shed
National In-
the
to
less
it is noted,
only taxes directly im¬
income is to
on
reference
"take," at all
levels, in fiscal 1952 $86.5 billion or 22% more than in
1951. Estimates tax bill at $557 per capita per annum.
According
other hand,
the
to consider
posed
an
commonly used single criterion'"is
local current income. Use of this criteseek rion is usually premised on the
pounds that'income constitutes
1948 and
'last
Changes in the distribution
hefore-tax income and the ef-
or''ca^dty Ihe ™
now
in
estimated '37%
;
rates, however,
, tyDe
In
,
....
of
measure
1951,
.
'
of
Ui
m
the
.
"g
estimated
$71
.
billion of remaining untaxed surincome,
billion
principal source from which
^ net
s°me $34
fell in the lower end of the in¬
taxes are ultimately paid. But
in
come scale.-Of the $37 billion left
load, the
application,' the study cautions,
in the over-$5,000 bracket, 81%
Board points out, is selection of
this criterion is not always so sim¬
was
accounted for in the group
the most appropriate methods of
ple, "since some taxes may not be
earning
b e t w e e n -$5,000
and
measuring taxes. "None is perfect
paid directly out of income and
for all purposes, and some shed
$25,000.
But in the final analysis, the
more
light than others." Using since in pracHce, income dtself is
mid-1952 figures and comparisons 1
1
unambiguous, straightfor- study asserts, "how much anyone
the
The first step
in appraising .to¬
record-breaking
day's
with
drawn
Moreover, Foreign Power's
! dges
to recoup some of its
investment.'
large
)
In the Argentine
possibility that the Peron regime may collapse
weight of inflation and bad economic policies, and in
under the
such
obtainable, will benefit
eventually be
in turn Bond and Share.
Foreign Power and
there is always a
A more balanced fiscal
on
"unity."
National Industrial Conference Board finds tax
governments
York.
In
dollar
a "dif¬
when
adjusted
price and population changes.
terms of constant prices and
often
On
year
Foreign Power has been encountering
ard
The 1952 Tax Burden
of the new common
reorganized early this
turbed, except perhaps as sales and repurchases might be made
in future years to establish tax losses in connection with "taxfree" cash dividend payments.
Foreign Power recently initiated
these
gates
Lewis
other
the various forms of income."
about 55%
indication That this investment will be dis¬
is no
There
year.
owns
now
& Foreign Power Co.,
of American
like
total.
1945 'dollar
its
than
changes
of the outstanding shares.
and
Bond
L.
neither organized labor nor any other
in the population is likely to
build "a better America" by means of monopoly.
(around 27) this would be equivalent to about $3.38 a
share. Also rights will be issued to buy one share of UGC for each
10 shares of EBS. Further dividends and rights of United Gas are
scheduled for 1953 and 1954, so as to reduce the large holdings to
stock
Jahn
factor
or
United Gas
less than 5%
level
ger
Of course,
element
requirements of the Utility Holding Company Act. Under the
company's "Final Comprehensive Plan" issued in June, and as¬
suming SEC approval, stockholders will receive later this year a
distribution of United Gas Corp. stock at the rate of one share
of UGC for each eight shares of EBS.
At the present price of
the
stay ahead in the race
being 15% above the
and half again lar¬
to
But
straight face.
a
current
taxes,
Korean
for
conform to
company's divestments have been designed to
The
aged
with
spectacle of the segments of organized labor
in America heaving and shoving in all directions—
or in no direction—gives aid and comfort to those
who would destroy us and institute their own mod¬
ern version of serfdom."—John L. Lewis in Labor
We sometimes wonder
"Viewed
in
valued
prices, disposable income has man¬
"The
Day plea for labor
income after taxes, or
and
way
ferent
as
took almost
of income
of the tax load.
measure
this
lenged control of the economic
future of our great nation.
ordinary income, and
there have also been valuable rights. Including the recent dividend
in stock of Southern Company, dividends and rights during the
past five years had an aggregate value at the time of issue of over
$6.22 a share. The market value of these distributions (including
rights) is now about double the original value. The rights which
were
exercised entitled stockholders to purchase for $52,251,000
securities having a market value at June 30, 1952 of approximately
$91,137,000 and yielding, at current dividend payment rates on the
securities, 9.33% on the subscription cost.
of stocks, not taxed
the form
proportion
Personal
intellec¬
those
persons
on
same
disposable income, according to
the analysis, is a complementary
better America.
a
are
peak,
early this year."
have in our
gressive America down the river
in their mad gamble for unchal¬
been receiving divi¬
stockholders have
EBS
time
some
in
the
tually corrupt corporate inter¬
ests in this country who would
sell a free, democratic and pro¬
cluding Ebasco Services for
dends
directly
human
fective weapon we
1945
the
as
slavery, who
would take from us the only ef¬
of
high in dollar value
taxes imposed
half again as
those who
still advocates of the institu¬
tion
prices are worth $65 million.
which at recent
politicians beholden to reaction¬
and
interests,
ary
stockholders, which showed that as of June 30, 1952, the net
value of the common stock excluding foreign investments was
those
are
rate —more
quarter : before war broke
Korea.
Although nearly
in
out
"There
annual
an
third higher than the ratio
a
the
of
-
the
the
and
pre-Korea
ward critenon " ml8ht seem"
pays
depends not
only
upon
his
Of these income criteria, "the total income but also upon the
Board's latest study of the
tax ratio of taxes to national income components making up his in¬
burden analyzes some of the bet- is frequently used as a measure come,
where he lives, what he
ter-known tax Tneasurment tech- of the total tax load. On a'Depart- buys,; the
demands family and
niques. Their meanings and im- ment of Commerce basis, this ratio other responsibilities ;make upon
plications are discussed and their reached a record £2.4% in the income, and many other variables,
limitations pointed out.
Quarter ^of this 'year four And as a measure of the real load,
Compared
with
pre-Korea, percentage points above the war- taxes directly paid are of less eco1952's tax structure shows "only time peak and seven above the nomic
and personal importance
moderate
changes." This, it;. is" Pre-K o r ea n level." Excluding than taxes actually borne."
peak
effort
tax
of
War
II,
-
„^„0uu.u.Hv
*
'
on
balance, never failed to receive in U. S.-dollars income due it
in
investments
its
from
Brazil
both
and
Cuba.
-
Except
in
Argentina, Brazil and Chile, the company in recent years has had
J
little
difficulty with remittances of earnings due it from its
no
or
subsidiaries.
encountered
political difficulties in
ob¬
taining higher electric rates in some Latin American countries, in
its
efforts
operating
to
offset
costs.
increases
inflationary
This
has
especially
been
in
wages
in
true
and
other
Chile
and
Mexico; while some rate relief has been obtained recently, further
increases
are
Another
being sought,
Brazil
<
operating
with
v;
.
.
.
problem has been to obtain necessary capital for
struction programs in
market
stress
Latin America.
company
securities
have
been
ative
and
conducted
in
good results, and similar effort is planned in Cuba.
Washington, which has authorized total loans of $61,000,subsidiaries' construction requirements in Brazil and Cuba.
reflects
policy
the
upon
the per-
over
contributions
of
miscellaneous
fallen off
sharply;
property
levies
a
have
rise in social
insurance contributions has about
matched a decline in customs and
excises;
con¬
Special sales campaigns to
Substantial assistance has been obtained from the Export-Import
Bank at
directly
defense tax
spective of decades the changes in
tax emphasis arp marked. The rel-
and
income
taxes
have
moved up from a scratch position
the largest single tax source—
to
more
than 62%
One
scale
000 for
in
existing taxes. "But
.
Power has
Foreign
pointed-out,
of the Total"
handicap
tax-load
$86-billion Total
of
such
measures
or
large(as
an
$5571per capi-
ta),
the
gap
that separates Their magnitu-
Board
adds,
is
the
wide
social^Ji^anee taxes,, the -ratio
The full story thus also involves
stood dt £9.1% early this.year. - .'ferreting out 'hidden taxes' trac-
£ ca^e has been made and sta- dng their
course
through
a
'laby-
\tistics have been assembled to in- rinth of shifting possibilities and
dicate that taxes in excess of determining somehow their final
ahout 25%, anstead of being<de- incidence." The Board's study reflutionary,-become inflationary inwiewsThe results of recent analyimpact upon the economy,- ses of the burden of both direct
:J;"e Board notes. But on the other and "hidden taxes" and appraises
'hand, it points out, by increased
their contributions "to tax
borrowings goyernment can ex- measurement and their limitaercise greater command over na- tions.
tlonal resources and even contribute to a decline in the tax- Measures of Specific Taxes'*1
income ratio. "Thus the value of
Tax-load measures of certain
the ratio by itself may not fully taxes or of certain aspects of
describe the economic -effects of those taxes serve still other purgovernment."
poses. Measures like these "carry
By
another-criterion—that
of no
implications -of The
over-all
Volume 176
Number 5148
.
.
The Commercial and
.
Financial Chronicle
(827)
tax
load; but they often cast light
some
of
its more
important
on
One
of
this
group of measures
the Board's stuay is
the rate of taxation on surtax
net
analyzed
in
income, the significance
lies
in
the
fact
that
the tax "take" out of
Since the marginal
income dollar is taxed ac the
high¬
incentives,
upon
to
work
upon
more, or engage
in other incomeproducing activities.
"
an
-
1
"Under
present
tax
laws,
22.2
The
cents of each added income
dollar
earned by a single
person in the
lowest taxable bracket is
taxed
The
away.
the
rate
income
92
cents
for
$200,000
or
marginal
rises
scale
it
surtax
a
of
The pre-Korean
'take' ran from 17
ine
World
War
II
and
than
ent
percentages,
middle
incomes
•
income
and
With
they now pay at lower
rates than bachelors and
throughout the scale
keep more of the
income
dollar
than
aii
make
they did
because
of
expenses,
gross
income
different
income
treatment under the tax laws
(e.g., capital gains,
tax-exempt
up
able
incomes
"And
sizes.
etc.),
the
even
with income
splitting and special allowances for unmarried heads of
do
For
(
UV.1
synthesis
stock
a
and
the
Most
is
buy, indeed it
Out
of
&&
is
a
to
the
as
next
upswing
whole.
a
for
it)
own
research
Timing
to
tion.
in
to
the
period
the
the
should
be
portfolio
prospective
They give considerable weight to
i
in+i0mfS
rru
things as the pattern of the
market action of they company's
dren) making $10,000
partially
a
•
by
say-
lines;
volume
others
of
average
Twenty
years
bite
that
on
as- number of
will
price, r-everi for
consider
highs and lews for
the year, the breadth of
the market, market cycles, odd lot
deductions,
the
ago
income was
Federal
,
KnVIIIAII
yOArO'p
.lAIIIQ
llUUIgG nayllUIII UVIIIO
IaWm CimpII £ I1!!
\
VUI|II OlDall Of UUb
and
after
out
a
forecasting
any
the
investor
to
The
^ ^
ask
-
than
the
that
firm
specialist
a
as
in
new
the past four and
the
a half
years, was
resident manager of the New York
Walter
of
Philadelphia,
Co. for
Stokes
&
prior
to
and,
associated
was
16
with
in
technical
that
that
Ewing
years.
the
stocks
are
whole.
a
•
.;
t
Opens Branch
—
Invest¬
ment Securities
Company of Cali¬
fornia, with headquarters in Pasa->
dena, has opened a new branch
office in the First National Bank4
Building in Santa Ana. Calif., with1
Robert
F.
Manager.
Dean
Herpick
Mr.
associated
New York.
in
announcement
offer
Witter
Resident
as
Herpick
for
many
&
Co.
has
been'
years
at
made
to
is neither
buy
any
an
offer to sell nor
of these Shares. The
solicitation
a
of
an
offer is made
in-
175,921 Shares
good
situated
only after
a
sec-
Inc.
as
In this way, the investor,
uture
market
direction
have
dent
have
using;
have thisfnexr
yet
far
one
tells
"ought to
forecast
to
of
you
do"-
stock
another
the
prices.
thing
in
stocks
move,,lr?,
ma51J[® ® SJ
down. If it is up^ t ey pro
£rom thelr Por,foll° of market
J®a(le^si ^ R *s dow1^ it craata®
Common Shares
-
fortitude
and
the
with
cash
as'this rarketstu- whicl\ to.,take
advan(taf o£ the
Is
concerned.
Although .I;0Pportunltles.50 created'
been
a
professional
analyst
-
The
Rights, evidenced by subseription
ol' its
on
sential
society,
ways
never
discovered
be
Co., members of the De-
known
Crouse
are
in
as
&
the
S.
firm
new
R.
LivingCompany.
Of-
Penobscot
Build-
irig.
Two Join Raymond Staff
.(Special
to
The
Financial
Chronicle)
BOSTON, Mass.—Saul J.
StopItr and Harvey S. Tzudiker have
the
staff
of
Raymond^&
plans
or:
ory
management
gainsaid.
cannot-,
year-are, at least for
"
among
m
discarded
tl0th'
the
fundamental
and the technicai approaches; ' To
beyond
***
our
interpretation
ability, and
we
find all
the
astute
We^°£Ahe ,"TIading1 with.the
School, have long since
Trend"
"»
stocks.
We
more
fully
set
forth
,
a
Share
.
Rights
.
offered
the
the last sale
or
current
offering price on the New York Stock Ex¬
plus an amount equal to the applicable
.
change, whichever is
r
greater,
New York Stock
Exchange commission.
Copies of the Prospectus may be obtained from only such
of the
undersigned as may legally offer, these Shares in compliance
with the securities laws
market
market
that moment,
leaders.
student
Any
will
(Incorporated)
A. C.
Allyn and Company, Incorporated
A. G.
Merrill
Becker & Co.,
vel°P his
holding
highs
-
tests- And i£
continues
say
three to
not
six
Hornblower A Wej's
Lynch, Pierce, Fenner & Beane
F. S.
Union Securities
Bosworth, Sullivan & Company, Inc.
H. M.
de-
a
stock
making
'
!
:
,
Schwabacher & Co.
than
Moseley A Co.
Corporation
Byllesby and Company
(Incorporated)
new
less often
months
Be;r, Stearns & Co.
Incorporated '
Pane, Webber, Jackson & Curtis
Paul H. Davis & Co.
"
of the respective Stales.
Hickey & Co.
shun
utterly impossible.- That the ahead and- making new. highs,
planners have made an rather than those which are on
important contribution, however, waY down making new i°yysto mathematical (or
mechanical) Stocks making new highs for the
pre'viously^vdth'Tohn J° SeTsI"
.
.
is
^
Q0
"bargain"
formula
be
■
were exercised,
leaving a balance of 2,251 shares, to be
by the underwriters of common stock at prices not less than
Subscription Price set forth above (less, in the case of sales to
dealers, the concession allowed to dealers) and not more than
either
r
them. We look to stocks forging
are premised upon the thethat forecasting stock prices
investment
as
courser variations in the
in which they may be ap-
troit Stock
their businesses and the
Prospectus.
Subscription Price $31.50
rules seem esadequate, but there
and
any member of either group who plied. A few illustrations may be
has been able to
consistently do helpful at this point.- What are
Exchange, and Crouse even a creditable job of
forecast-, market leaders?
How are they
Company,
also
Detroit
Ex- ing stock market prices/
Indeed, detected? To us a market leaa^r
change members, have
merged the recently popularised formula vis the very opposite of "depressed
stone &
An-gust 2>th, 1952,
in the
to holders
o'clock P.M., Eastern
at 3
analysts'fare,"of
•
have
'
warrants, were offered
stock, which rights expired
eommofi
Daylight Saving Time
foregoing
for 25 years and
am, I believe the
co-founder of the first
I
($3 Par Value)
.
bargains for them and they have
the
with
their
Angeles office,
only by the Prospectus.
y. ln
DETROIT, Mich.—S. R. Living-
joined
'
.
stocks nor wholly in
casb> they care little whether the
those
approach
is, they aim
They
S. R. Livingstone and
Grouse Go. Merge
■
■
ad-
ondary reaction in the market
funda-- w
the
and
Each
common.
Co.. what
using
approach
common" as
stone,
»
..."
SANTA ANA, Calif.
any-
wr
er
figures
Statisticians
,
mental
fices
for
CHnomctr)
sol^l
the
poorly
a
Stock'
Kerby joined the firm early
-
Inv. Sees.
whatsoever
t?C'a * +L ®a^imorc
]^r-Reed in the past was
This
tiated, Wholly unrelated, -'items.-^S^
^.uy
These analysts, who interpret t the //Here we use an advanced for-.
data derjved from what
goes on' mula to keep the investor from
at the exchange and use it rathteri -Priiitging into .the stock market
municipal bonds. Mr. Hayman, for
will
v
the staff of Wad-
Wlth Bache & Co.
L
City,
York
New
portfolio of
Financial
J13*
Co.,
York
New
of the
&
this year.
In
WpcHell & Reed Adds
(Special
Kerby
Reuss
Street,
to
Exchange, will admit Stanley C.!
Kerby to partnership on Sept. 15.
Mr.
thing more?
.
&
Wall
members
any
advance.
-
time,
Admit S. G.
'McLaughlin,
Utili¬
eliminate'
an
it achieves
a
coming directly- wilh his all when prices are high'
John
Small
& Co.,
25 iBroad or indirectly from the company's''anrf ,ater it gives him confidence
Street New York
City, securities operations; are said to stress tbeV'to buv -stocks he^vilv when t. e**
dealers, announced that George "technical" approach to the stock-are really on the bargain Counter.
Hayman has become associated market.
•
•Because 1 n v e s t o r s are never
office
McLaughlin, Ruess
„
•
with
t~\
Western,
Texas
Stock Ex¬
market—and
frequently buys the best
figures'at really attractive prices,
similar, though to the unini7^t
but $211..
a-nd
*
"
stock
will
_
transactions, .per*f-"stock."1V* •
in relation to total sales at?- (C) Additional commitments in
*7*-Taps
suming
the
Low
its
miexchange., Among themselves,
„1 }
t!?ese analysts will discuss the^
lo tne lax collector,
Indiana,
very
trend
aJIw*}'^
°v
.$Jy>
in
vance
sbares at the stock
exchange. You* riot before. In this way,
will
find
some / of
them ' using; vestor generally gets a
year could
summarized
.
Mr.
Wood,
apprecia-
appreciation,, it should be
only after the next general
such
aftertax.ThUs the tax Femai?mg
impact on
aj1
Grande
really attractive equities all withCould
'
-
ant
one
kept
a
nf
/-»
KANSAS CITY, Mo.—James
R.
-
rnmrarienne
of
the end.
Purchases—or, When
stock
3^tional
funda-
vi-i
Rio
reaction,
weak
in
indefinitely.
It
should be held through secondary
tactions in the market for future
growing minoritv of
whQ... while still perhaps
service
a
is
As leng as a particular stock
retains a dominant market
posi-
you
with
Marshall
change.
pol¬
strong stocks after
in
Time
Oil
(A)
and
until
the
C.
member of + " London
the
A
and United Gas
Corp.
In brief the "Trend School"
icy is to buy
depressed
then
locked
are
Associated
be
final
ties
Buy
other
twPnS?' actual tax liabili-
t
and
ard
investors
indefinite
an
a
.
"bar¬
a
HP
with
and
City Southern, Kern
County Land, McWilliams Dredg¬
ing, Northern Pacific, Seaboard
Airline, Southern Pacific, Stand-
perfectly good stocks
which somehow do not
appreciate
in price even when
the market
as a whole advances.
"worth."
formerly
with the Chase
National Bank and
will have direct wire
service to
Montreal and Toronto.
October
in
Kansas
the
otherwise
bargain.
a
in
vehicles used in our portfolios
were Amerada Petroleum, Atlantic r^nnrtfCoast Line,
Crystal Oil,-. Den¬
fin
Market
stocks, and they
ar-
experience
buy in July,
a
sell
a
York
City at 62 William
Street.
The office will be man¬
aged by Howard K. Low,
not required for success in investment management.
Among the
We
work
own
purposls there ^?ntal aPProach. g0 beyond the tl0n- '
information to be cbtained about*
(B) When-any stock fails for
iloSn
^
Pa fhe internal affairs of
company.'reasonable period to show furt"
still
thp
rmr»c
be
find
a'n£Lysts
al-
arp
what
There is
in-
Get
market
in":
continue your
now
households,
our
money.
All too often
seek
"b argains" in
you
different
to
vance
gain." Cn the other hand if the
current price is above
what the
stock is worth,
you leave it alone
(or sell it, if
or
with tax-
oF quite
conclusions.
Buy current market leaders.
There is no profit in
purchasing
stocks which are not
going to ad¬
men¬
a
own
was
New
yield fur¬
y
,
Buy-
thev
a
vary- stock is
ing
income, income in kind,
other reasons, wind
and
Selecting the Stock—or, What
if the current market
price is far
be.ow what the
stock is worth the
deductible
subject to
Our
250;
to
uses
formerly
!ri May at 261. Far from oer- Vice-Fresident of Blair & Co., and
plausibly ^ect, but fortunately perfection is Percy Lawson-Johnston,
formerly
same
the
Stock
y
at
re
J952, again above 270;
equally
following simple
requiring
no
forecasting
i
How
v»-*A
may,
at
ver
of
(or
tal
Average
1951
could
basis, such as
three weeks after
cr
ther ground.
whatsoever:
From
this
s^udy notes, taxpayers rive
same
material
to
rules,
i
two
take the
can
narrowed
down
a
-
that
opposite
have
mathematical)
the
draw
ap-
and
pects.
e
change, the Toronto Stock Ex¬
change, and the Montreal Curb
Market, have opened offices in
zones.
time
a
dnce mid-1951
•
manage-
during wartime."
with
value")
statistical
they appraise
the company's
future pros-
re-
turns available to married
persons
since 1948,
last
sometimes
exam-
ment-
on
Savard & Hart,
Montreal, mem¬
of the Montreal
Stock Ex¬
bers
2™;9.aQnother„b.uy January.
T" No~
a sell
frequency
capable analysts
position
and
for
joint
on
cial
pres-
lower.
splitting
-
bottom
those
the
earnings, dividends, finan-
frac-
were
the
higher
in
top
brackets
to
too
That
past record
dollar; the peak rates
tionally
-1
company's
cents up to 82 cents of
every added income
of
(also
"sound
into
put
buying two
advance.
invest-
in-
to
vesting.
is, they
more.
tax
the
proach
of
subscribe
managers
caked
reaches
income
majority
"fundamental"
throughout
until
be
vember at 259;
great
ment
that the Dow-Jones In¬
Average reacts say five
'points from its recent high.
figure would
have
to
be
varied to fit different price
uuyiiig ahd selling
investment ad riser presents a new
approach, which he caLs
"trading with the trend." Says policy of this school is to
buy
strong stocks aiter a reaction and eliminate weak ones after
invest
more,
made at
v-1-
exp'ain'ng and criticizing the "fundamental" and the
"technical" approaches lo investment
management, California
applicable to each tax¬
payer, this is the rate Wxiicn bears
decisions
The
-
Afler
rate
directly
to ten
Registered Investment Adviser,
Corning, Calif.
additional
dollar earned.
est
any time
be
can
dustrial
By HOMER FAHRNER
measures
an
Similarly sales
-
Savard A Hart Open
New York Office
portfolio.
any
Investment Management
of which
it
surely deserves to be retained in
Taking Guesswork Out of
components."
11
at
intervals, it
r
Los
The Commercial and Financial Chronicle
12
Thursday, September 4, 1952
...
(828)
Taft-Hartley Act
"The
act
Repealed"
Should Be
legitimate purpose of
relations law is, there is anything wrong with it,
to
make private collective bar¬ if you don't approve of the offi¬
gaining work better. That purpose cers, if you don't like the union's
has not been served by the Taft- policies, if there are racketeers or
President
Labor
In
address,
Day
Presidential candidate
Democratic
be found for settling
must
I stand before you as a
from
national
fugitive
sweat-shop
down
in
Springfield, Illinois. Down there
the speed-up is in full force, but
a
complaining
bit.
In
for
cause
lieve
tion.
be¬
we
in
interests,
I
is
This
La¬
day
off,
But
if
too.
they
Adlai
about the relation¬
Democratic
the
between
people you represent.
Contrary to the impression fos¬
of the press, you
captives, and I am
not yours. I might as well make
it clear right now that I intend
do exactly what I think right
r
\ best for all of us—business,
by
some
not
war,
my
There
first
is
common
our
in¬
other things,
in our
This means, among
the
and
men
women
working force—62,000,000 of us—•
shall receive a decent living wage,
dis¬
unemployment,
and
ability
of
and
risks
against
insurance
the
of solid—not token
assurance
It means, too,
free born Americans—
are
honorable " status,
and
proud
a
carrying with it the right and the
responsibility to make up your
own
of
us
let's
on
a
minds.
So
am
religion.
our
trying
cease
captivity,
here and now
mutual pact of liberation.
right
A
second
women
key
in
interest and the
His
interest.
labor,
obligation
concern
for
for industry, is only as
as
part of the common interest. I
office
a
would intend to honor that
by complete freedom to serve not
one
few, but the whole
And I think that is pre¬
man
nation.
or
a
cisely what you would want me
ing people of America is a very
common
our
the
men
pay-roll
get at the
the
from
and
the
hospital, and by what we have
left to put in the bank. Meeting
problems as inflation, hous¬
and the high cost of living,
is part of a labor policy, because
ing,
part of a national problem.
The working man can not and
must not think of his welfare as
it
is
the
separate
white
common
of
the
collar
and
apart
The in¬
worker, the
good.
day
worker,
the
em¬
believe in ployer, the farmer, are all rooted
in the soil of national well-being.
equal rights for all and special
If your employer's business fails,
privileges for none. We both be¬
lieve that the objective of our for example, you are out of a job.
We are utterly dependent on one
country and its government is to
achieve human decency, to meet another, and what is best for the
simple
We both
one.
human
needs
and
fulfill
human
We
nation is best for all of us and best
for each of
hopes.
take
honest, open pride in
Our
common
interest
is
at
work
self-government
satisfactions
deep
over.
be
can
best
law
new
the basis for
public interest in
durable pattern
fair, solid,
a
of free collective
bargaining. And I think labor and
management
agree
can
them,
on
too, if they will throw their guns
the table.
Point
Number
law must accept
that
a
the
of
corporations,
as
responsible
representatives
members'
The
unions
that
could
not
assumed
be
trusted
to determine whether their
bers
wanted
a
union
mem¬
shop.
After
the expenditure of millions of dol¬
lars to hold
thousands of govern¬
ment conducted elections—in 95%
of which the employees voted
for
the union shop—the Congress last
finally repealed
year
this
gratu¬
itous insult to the labor unions.
But the act still prohibits other
union
forms
of
ments
developed
security arrange¬
over many years,
management
to¬
the mari¬
cases as
time
industry, the building trades,
and the printing trades. The Con¬
arbitrarily
gress
better
for
than
unions
employees.
have
been
several
said
what
The
is
result
predicted.
thousand
know
we
good
could
Today
and
employers
cases are always dif¬
It is a proven mistake for
Congress to prescribe in advance
the
law
several million
employees are op¬
erating under bootleg agreements
in
flagrant
violation
of
the
statute.
Act
Act, like the
it, prohibits
before
certain types of unfair labor prac¬
tices
by
such
employers,
dis¬
as
list of union
a
vigorously against this
think
I
Yet
to
sense
forbid
it
Point
labor unions
the
full
Number
are
to be
One.
representatives
guardians
of
as
and
interests
employee
these
only
practices
ess,
form to standards of fair
and
conduct
equal protection in the
exer¬
cise of their stewardship.
A few
should
gress
dent
the
has
we
the
tion;
been
clear,
jumbled
are
em¬
however,
broad
so
and
circumstances; or arbitra¬
a detailed hearing and a
tain
representatives
groups
of
of
employees,
cer¬
abuse
of
settlement
return of the dispute
or a
parties.
leave
would
law
a
the
it
belongs—with the
it
But
would
par¬
strait-
not
jacket this settlement process.
It would express
of
the firm voice
nation which demands
a
fair
a
quick settlement, and offers
constructive help toward a solu¬
a
tion.
These
so
to outlaw proper along
as
Presi¬
obligation to settle these disputes
certified
that the prohibitions in the Taft-
Hartley Act
the
to
or
Such
and
equally
give
recommendation
must
jurisdic¬
as
representative of his
is
It
White
voluntary agreement proves im-.
possible; seizure provisions geared
to
where
another
the
But the Con¬
choice of procedures when,
a
ties.
the outlines of
are
consistent
with
law
a
democratic
our
improper conduct—even, practices. They outline a minimum
to
require
union law—and a minimum of law is
what we need. And I would hope,
as strikebreakers.
occasion,
on
members to act
These
provisions
must
be
com¬
indeed
expect, that in the larger
of
pletely rewritten, with the inten¬
area
tion
exists
not of
stripping unions of as
bargaining power as pos¬
much
agreement
common
today
of labor and
that
representatives
the
management, meeting
sible, but only to prohibit resort
in
to
sincere search for industrial peace
those
extremes
minded
which
judgment
fair-
identifies
as
unreasonable.
Point
four
is
In 1932
overwhelmingly passed
326
was
to
14
in
the House
and 75 to 5 in the Senate.
Then, 15
Taft-Hartley
junction
hazard
Act,
the
embalmed.
No
nical
ordered
in¬
have
back
dis-
of
need
and
men
to
work
no
smothered silence has
Wants
New
Methods
place in
in
for Settling
methods
settling
must
national
be
found
emergency
for
dis¬
putes."
We
put
with
up
iences
mates
willing,
are
when
is
a
in
a
serious
nation, to
inconven¬
bargaining
in
shutting
result
stale¬
down
Collective bargaining
form of free
Justice
as
competition, and,
phrase, "Free
Holmes'
competition
is
worth
let
labor
interest,
problems.
The
do not
in the
pot
forget
us
human
are
ultimate
answers
legislator's ink¬
the lawyer's brief.
or
The
denominator of all
common
I have
said
free
today is confidencein
not
ernment,
in
of
none
problems
lie
could
law.
a
but
and
men
in
the
law
or
one
in
another,
women;
private
gov¬
con-'
organi¬
zations they have set up, the pri¬
vate processes they have worked
out
to
meet
their
common
prob¬
lems.
For, if I can leave anything
of certainty with you, it is that
the
greatest hope for industrial
is not in laws, but in private
agreements.
It is hard to remember that here
Emergency Strikes
My fifth and last point is that
new
such
Finally,
hap¬ fidence
And that tyran¬
to
power
women
the
was
—
showing
made for it.
was
of
process
prejudgment
national
on
confidence
later, in
the labor
years
—
the
that
the Norris-LaGuardia Act to
pro¬
hibit the labor injunction.
The
vote
in
rejection
of the labor injunction.
We agreed on this once.
Congress
spirit of give and take and
a
agree
number
production.
unions, made by law the
provide
common
strikes, and strikes or boy¬
attempting to force an em¬
ployer to deal with one union
when
of
out
cases
tional
in the collective
bargaining proc¬
then labor unions must con¬
completely
will
House, if possible.
cotts
If
accepted
a
that
investigation and reporting to
to the
is
acknowledge that
such
Point Number Two is the other
of
is
need
we
the public of issues involved, one
that will provide for more effec¬
peace
side
patent medicine for
law—one
terms;
addition.
today's labor law.
Responsibilities of Labor Unions
old
same
all of them.
unfair
The Taft-Hartley
Wagner
with the
interests.
Taft-Hartley Act
emergency
bargaining tive mediation between the par¬
practices by companies or unions. ties. Its purpose should be to keep
the
that
is
labor unions, like
employer
their
labor
Federal
new
outlaw
ployees.
One
One
pri¬
ferent.
for
Number three of my suggestions
is
as
Point Number
govern¬
too, that the new
recognize that these
must
What
must
labor rela¬
new
a
the
clear,
am
new
protested
on
will
unfair practices. The unions have
suggest five general principles
the
find
so
Must Outlaw Unfair Bargaining
Taft-Hartley added
for
Principles
where
solu¬
clear,
am
that the dispute gets settled.
I
law
you.
New Labor Law
I
and
—
symbolism of criminating against union members
Act is behind us. for forming company unions. But
General
Five
exclusive
us.
third
government by staying away
from the polls. Those who really
political
labor
and
and by
gether, in such
as
clerk, but by what we
store
and
the
school
such
the
working force are
get
we
from
relationship
to
producers.
Our welfare is not measured by
between the
Democratic Party and the work¬ terests
The
guar¬
well
as
something
to do.
:
its
that
our
what
of the President must be the com¬
mon
never
write
to
is
interest
to Common
Look
Interest
The
We must
antees, not just into our laws, but
into the hearts and minds of men.
consumers
President Must
the
history and the spirit
So if either
I.
thinks in terms of
agree
of
our
is
decency
Human
color.
theme of
You
when
security
done.
the
retained
be
into
written
and
in
law by
starting
and
should
What
it by sitting
complaining, any
than you can get better men
more
tions law. I believe they represent
all who work
the minimums of human decency.
that
it
as
life's work is
that we must
struggle tirelessly to add to these
assurances
equality of work op¬
labor, agriculture—alike.
And I
portunity for every one of us—
have no doubt that you, too, will
regardless of race or creed or
do exactly what you think best
at the election.
scrapping
too
terest in securing to
—
sion
I
disputes, its purpose must be
just to stop the strike, but to
not
can't do
you
home
at
law, and my conclu¬
is that we can best remedy
too
by laws, too little in terms of es¬
tablishing industrial democracy.
Stevenson
Party I represent and the working
are
talked
labor
in
But
new
a
These
stopping things
much in terms of
to talk to you
tered
of
terms
see
single plant. We must
a
problem.
that
though,
say
the Taft-Hartley
little in terms of labor peace; too
a
got off they
might not get in. So I welcomed
the invitation to come to Detroit
ship
in
do
I
the defects of the present
of common in¬
have
We
interests.
much
d i dates
c a n
have
positive interests, constructive
year,
ought to get
to
Interests
labor field.
the
in
think
I
and
genera¬
thought about the
my
three sets
see
are
in
after
terests
bor Day of an
election
per¬
obligation
my
Three Sets of Common
win.
to
not
are
future.
going
are
is
it
So
But
miracle-drug
no
ment must intervene in these
democratic cleansing process.
Taft-Hartley Act is wrong. I
don't think it is a "slave labor"
law.
have
own
injunction.
that everything
say
I
vate
the
give you my ideas of our common
the
job we are
doing and that
we
are
succeeding
each
by
don't
I
In
effect
no
actually delayed private
or
tion for this
fellow members to do
something about it. You have your
the dis¬
around
built
and
unions
credited labor
They have to be fought
manent.
a
fact,
like it be¬
we
things
peace.
cases
slightest good.
settlement.
your
got a new law all
tions
these
But
labor
these
of
two
the
do
all
at
to you
up
only
it
the others it either had
and
that it was
biased
and
politically inspired,
bright and has not improved labor rela¬
can
opportunities
Act,
Wagner
for
rules
re¬
some
right — a
tangled snarl of legal barbed wire,
filled with ugly sneers at labor
We
and limitless.
aren't
we
Communists, then it is
1947
old
the
in
new
some
done, a land where the
know that her chil¬
mother
dren's
visions
disputes.
emergency
is
work
as
in
needed
We
basis for
new
legislation five general principals, viz: (1) both labor
unions and employers must accept tenent each is responsible
representative of their respective members' interests; (2) both
unions and employees must conform to standards of fair con¬
duct; (3) unfair bargaining practices must be outlawed;
(4) labor injunctions should be ended, and (5) new methods
and lays down
Condemns labor injunctions,
law.
labor
Hartley Act of 1947.
Taft-Hartley Act and calls for its replacement by new
did
responsibility to participate
in the affairs of your unions. The
union exists for your benefit. If
a
Fair-
concluded
have
critics
in
times.
nine
now
minded
that
admin¬
remedy has been
istered
speaking
of
industrial
democracy, let me say that you
together.
Federal
This
citizenship based
monopoly.
And
The only
a
scores
race or
have
Governor of Illinois
Democratic Party Nominee for
second-class
on
Taft-Hartley Act Has Not Worked
STEVENSON*
By HON. AD LAI E.
of
government can do is to assure
fair bargaining balance by guar¬
anteeing to employees the right to
a
more
in Detroit
15 years ago a mighty
industry was paralyzed, and fight¬
ing in the streets between bitter
men
was
Today
iminent
an
possibility.
the automobile
and the workers have
companies
five-year
contract, giving the nation an as¬
of
surance
firmer
ever
labor
than
a
infinitely
Congress could
peace
any
supply.
Where
know
we
we
have
can
to
go
come
so
far,
we
farther.
in the process of collective bar¬ that trust by excluding from union society than it costs."
progress of
We cannot,
however, tolerate
has meant—not gaining the keystone of industrial membership some who want to
Rodney Boynton Joins
which
work, denying them a vote, deny¬ shutdowns
threaten
our
for the Democratic Party, but for democracy, of free enterprise.
Staff of McKinsey Co,
Democracy
is
working
when ing their seniority rights—because national safety, even that of the
the whole nation. We pulled our¬
The right to
Rodney Boynton has joined Mc¬
selves out of the quicksand of free men solve their own prob¬ of the color of their skin or be¬ whole free world.
cause of restrictive notions
about bargain collectively does not in¬ Kinsey & Company, management
depression. In fighting an awful lems, in their own way and in
clude a right to stop the national consultants, it has been announced
war
we
did our part gloriously. their own political and industrial employment security.
by the firm. He will be a con¬
We have made of America the communities. The 80,000 private
This is not democracy. Unions economy.
The Taft-Hartley
the General
answer for sultant in
best place to live and work the collective bargaining agreements which are given powers by gov¬
Surveys
world has ever known—a land today in effect are alternatives to ernment should be open to all on this problem is the injunction. All group of the New York office.
where men are assured a decent —and better than—laws. They are equal terms. I know it is the view that law boils down to is that in Mr. Boynton recently served .17
what the
the last
tremendous
20 years
•
wage
and
security
when
their voluntary private solutions which
make
Gov. Stevenson in
Cadillac Square, Detroit, Michigan, Sept.
2, 1952.
♦An
address
by
involuntary
government decisions. They prove
that
the most useful
thing the
and
the practice of the
vast
national
ma¬
jority
of
American
unions
emergency
disputes
em¬
ployees shall be ordered to work
unnecessary
and
union members to reject any idea
for
another
80
ployers' terms.
days
on
the
em¬
months in the
he
was
Navy. Prior to that,
with the Institutional De¬
partment of Dean Witter & Com¬
pany.
.
Volume
176
Number 5148
.
.
The Commercial and Financial
Chronicle
.
13
(829)
ABA lo Establish
Department of
Section
Monetary Policy
to be
headed by Dr. E. Sherman
Adams,
Vice-Chanceilor of New York
I
gr™ing Part
Dr. Adams is a native of NorSovernLn?
/ P°hc.les °£
walk, Connecticut. He was gradcf bankl la
or
g m the Ue Uated from Amherst College in
banks and the
tn
1931, and received the degree of
American from
thought
action
and
in
women
NY Inst, of Finance
this
i mportant
An
n o u
ment
of
program
made
ecutive
the
the
Association
of
manager
who
stated
be
that
ABA,
department
up
by
Dr.
Adams, Assistant
Chancellor of
sity,
who
Jan.
New
ex-
the
the
headed
Sherman
n ce-
of
by Harold Stonier,
will
York
E.
In
will
join
announcing
noted
the
the
that
ABA
on
plan,
"There
Mr.
was
a
New
products
been
have
devel¬
oped, freeing
women
curriculum of the New York Institute of Finance, 20 Broad Street,
New York City, for the fall term
commencing Sept. 15.
D. J.
to
industries and
Four
eight-week courses in
specialized phases of investment
analysis have been added to the
Vice-
Univer-
1, 1953.
Stonier
Offers Fall Courses
finance.
Dr. E. S. Adams
more
money
spend.
of
area
new
from
housework.
Among
Roger W. Babson
tioned
Enright of Lord, Abbet &
these
when
such
the
credit
regulation
controls
of
general
credit in terms of the purposes for
which it will be used and the effect thereof on general economic
conditions.
"Debt
the
U.
will
teach d
in
course
with
policies
management
of
S.
the
Treasury's
to
power
recommend the kinds and amounts
of taxes to be
eral
"U.
raised by the
Government,
important
also
effect
the
on
Fed-
have
an
money
supply and the credit situation.
S.
Government
Bond
Market
the
19
The Institute is
commencing its
31st year as a Wall Street insti-
women
million
it
women
tution.
From
1922
to
employees of
Stock Exchange
York
1930 its
1930
the
New
only.
courses were made
it
In
avail-
be
Now
before
men
as
the
Treasury factors of great in-
fluence
the
on
cost,
opened
were
to
the
public.
In
1941 the name was changed from
the New York Stock Exchange
Institute to the New York Insti-
these
result,
a
monetary policies have had
far
reaching effects at times, not
only upon commodity prices and
the volume of production and em-
ployment, but
erations
of
including
also
the
upon
banks
the
op-
themselves
their
and
maintain
that
is
ability to attract
the private capital
essential
the
to
Street specialists. All courses are
??vel\.FL
,®a]rly evening. More
chartered
ilies
hope
that
the
wealth.
labor
not overreach and
long
equals
the
of
wage
impor¬
will
it
women
number
of
This will be pos¬
more
modern
inventions
new
a*tended last
en9Pl°yed by
term
investment
spring
J™* banks in the Wall Street dis^nct.
^ P-?
s. resi(*ent
,
c^asses» the Institute makes some
course^s available by correspond.Seven
ePc?'
nUJe5
hundred
fifty
and
Jom
sections of the
United States were enrolled dur«+
ing * e
ast scbool
great,
the
the
Let
leaders
us
will
burner
started
with Baker,
living
Currency. It is
tion but
it
burner
is like
public schools
Children
most
their
of
was
a
labor union
now
education
epidemic
an
and
Living
I fear that the
this
boy there
situation
only
will
oil
change,
way
year,
a
carpenters
plumber's bill
as
our
"bathroom"
our
water
Plunkett
we
cut
our
heat
our
We got
cistern in the
came
own
fire
to The
Financial Chronicle)
SAN FRANCISCO,
Schmidt
H.
of
Co., 45 Mont¬
of the
members
"The
to correct
Neuberger & Berman
by keeping
Neuberger & Berman, 160 Broad¬
way,
New York City, members
of the New York Stock
that Harold
announce
now
associated
with
from stoves;
wood;
is
enormously in recent years. New
problems have arisen which have
MILWAUKEE, Wis.
B
Towner
has
lead
the
William
become
affiliated
probably will continue to with Loewi & Co 225 East
Mason
Congressional studies of
street, members of the Midwest
subject from time to time.
stock Exchange.
This
&
State Bank
Co.,
Raymond
J.
First American
an
to
The
Financial
is
Building, members of
Exchange.
with
now
Bache
South La Salle Street.
"The
establishment
line with the
ciation
at
of
of record only. This
been and is
not
note was
being offered
to
placed privately
the public.
$3,000,000
Wm. J. Mericka Adds
times
(Special
during
the period pre-
to The
Financial
Chronicle)
history, such as
CLEVELAND, Ohio — Franklin
ceding enactment of the Federal M. Coryell has been added to the
Reserve Act, when a great deal staff of Wm. J. Mericka &
Co.,
the
thinking
about
a
central
banking system was generated by
the Currency Commission of the
Inc.,
Union
members
Commerce
of
the
.
Midwest
In
concluding
his
Stock
Exchange.
4Vz% Promissory Note
announce¬
Beer Adds
ment, Mr. Stonier made the point
that the
an
new
department is not to
investment
C. BOHACK
Inc.
Building,
ABA."
be
not
De-
a
practice of the Asso¬
different
its
of
appears for purposes
institution and has
to
partment of Monetary Policy is in
(Special
department of-
to The
ATLANTA,
Staff
to
due June 1, 1968
Financial Chronicle)
Ga.
William
—
L.
fering advice either to individuals Daugherty is now associated with
or to banks on the subject of inBeer & Co., Trust Co. of Georgia
vestments, but rather a depart- Building,
inent that will be of help to other
sections of the Association and to
its
members
represent
it
and
the
development
and
opinion
and
its
on
those
in
information
monetary
upon
t
With
who
Congress,
of
practical
banking and
to
before
ditions.
•
McCombs
...
TT
e
Wertheim & Co.
Union securities
SYRACUSE,
policy
effects
economic
t
has
N.
Y.—Donald
become
.
associated
I'M.:
_
w
Union Securities Corporation
*n
their Syracuse, New York Of-
fice, 317 Allen Street.
li!
■
.H'V;
con-
I.
D.
upon
is
a
September 3, 1952
Chronicle)
CHICAGO, 111.—Scott C. Wilson
the Midwest Stock
and
announcement
with
as
Bache Adds to Staff
(Special
with
now
(Special t0 The Financial chronicle)
led and
Exchange,
C. Field
them
Customers' Broker.
Loewi & Co. Adds
setting in which monetary
Francisco
San
and
Stock Exchanges.
banking system.
management operates has changed
Calif.—Paul
staff
joined the
&
Street,
York
New
a re¬
has
Witter
Dean
gomery
WAUSAU, Wis.—Martin J. Rossow
cellar;
registered represen¬
a
(Special to The Financial Chronicle)
no
out in the back yard!
a
120
'
was
was
from
asso¬
Co.,
Joins R. J. Plunkett
Rents and
there
as
(Special
the
in
low and
were
now
&
With Dean Witter & Co.
and
to work for $10 a week.
foods
is
Ernst
tative.
responsibility,
be
Brooks
Broadway, New'York City, mem¬
bers of the New York Stock Ex¬
the children in school eight hours
not
was
P.
with
ciated
juvenile
Unless there is
to parental
as
H.
to
Now With Ernst Co.
getting
from
—
Broadway,
52
will admit Edgar
partnership.
11,
Arthur
newspapers,
serious
Co.,
oil
completely out
are
Simonds & Co., Buhl
&
Savarese
thermostat.
a
are
of date.
vival
Unions
Standards
When I
New
Some day the boiler will bust!
With women in industry,
our
delinquency.
Labor
running
Ward
City, members of the
York
Stock
Exchange, on
Sept.
Managed
pleasant sensa¬
without
R.
York
New
under
a
—
Verace to Admit
Verace
again.
now
Chronicle)
Financial
Mich.
McDonald & Co.
Twenty years ago
this Gold Standard, or "business
thermostat," was discarded.
We
are
to
Building, members of the Detroit
Stock Exchange. Mr. Richardson
was formerly
an officer of C. G.
turned
the
up
aide
Richardson has become associated
oil
thermostat
to The
DETROIT,
"kill the goose
thermostat
and
With Baker Simonds
(Special
burner; while when
business cooled off, this economic
very
market.
secretary
R. W. Richardson Is
When the expansion became
off
to the Conk¬
years' service
sides at Greenwich Conn.
automobiles, radios,
other wonderful televisions, and gang leaders. As
a result,
we are suffering from a
not yet
on
the
and
flag
two
Loring was associated with the
investment
banking firm of
Tucker, Anthony & Co.
He was
graduated from Har¬
vard University in 1941 and re¬
Managed Money and Education
too
comes
after
Admiral Oscar C. Badger, U. S. N.
Prior to his service recall, Mr.
which has laid these golden eggs "
stat.
Loring
firm
as
gradually vanishing.
Of
course, new machinery and adver¬
tising have greatly aided in this
of
announced
been
lin
are
redistribution
has
much
very
Gloucester. The a day. This may be the next great
painters got $3 a educational
change
coming
to
were day; haircuts were 25 cents; com¬ every city where this column is
mon
labor was $1 a day.
After read.
firms
graduating from college, I went
^Jn 95% of the 700 students who
availability,
and volume of credit. As
is the
smaller and
Finance. The faculty list
these
million
number
employed?
sible
million
39
become
How
the
employed
jjjcludes many well known Wall
of
here
question:
58
that
have not yet
workers.
tant
from
means
equipment
changes
impact
Mr.
higher; while the privileges and
profits of the old well-to-do fam¬
frozen
able to employees of member
houses are built, supplemented by
firms of the New York Stock Excomplete
automatic
electronic
change and in 1938 the courses
of recent years has made the policies of the Federal Reserve and
"The
now
it
by DeWitt Conklin.
living standards of the wage
are
Broadway,
counsel,
"Rail-
Analysis."
trained
Treasury arising out of
huge public debt, combined
the
100
has joined
Organization,
New York City,
Loring
Conklin
financial and stockholder relations
In my boyhood days we were
foods,complete
products,
self-service living under the old Gold Stand¬
road Security
Analysis." Theron bakery
Locke, Public Utility Analyst, stores, electric refrigerators and ard, which put a "ceiling" and
Goodbody & Co., will be the in- ranges, dishwashers, garbage dis¬ "floor" on business, employment,
posals and plastic table "linen." prices, etc. It acted like a thermo¬
structor in "Public
Co.
monetary
selective
as
and
the
worker
D.
the DeWitt
be men¬
may
Utility Security
There are 110 million people in
policy was Analysis."
"Municipal
Security
expressed
chiefly through
conAnalysis" will be taught by David the United States over 14 years
trols exercised by the Federal Re- M.
Ellinwood, Manager, Municipal of age, of which 58 million are
serve System over the total
quan- Department,
Moody's Investors women. Of these only 19 million
tity of ' bank
credit.
In
recent Service.
Robert G. Van Cleave, are now employed. The total men
and women in the labor force is
years," he added, "great emphasis Assistant Vice-President,
C.
F.
has been placed on other methods Childs
about 63 million.
If we subtract
&
Co., Inc., will
teach
time
Stanton
women
Business Administration
the Harvard Graduate School
Bankers Asso- of
Business
Administration
in
When I was a boy only about for light we used kerosene
lamps.
elation has 1933. He
received his Ph.D. in two
million
women
were
em¬
There,
however, was then a
announced it Economics from
New York Uni- ployed in the entire United States
great difference between the liv¬
will
establish versity Graduate School
of Busi- in other than housework or teach¬
ing standards of the few well-toa
Department ness Administration in 1948 His
ing. This has do families and of the great mass
of Monetary doctoral
thesis
was
written
on
now increased
of the population.
As a result of
Policy to give "Current Problems of
to
Monetary
nearly 20 the labor unions, minimum wages,
direction to Management."
million.
Jobs social
security, safety laws,
banking
have
given shorter hours and higher wages,
:J UZmm*.
was
rapid rise in number of
labor unions have raised living
standards, but in seeking new
benefits may "kill the goose that lays the golden eggs."
whole, the Master of
wir*"*1"*""'""'
fit in
a
notes
workers and
points out important question is "How long will it be before
women
employees will equal number of men employed?" Says
1^* I,"*
as
'
Mr. Babson
Loring With
DeWitt Gonklin Firm
By ROGER W. BABSON
University
economy
Stanton
Working Women
Assistant
now
>;
(i
nl
I
■
.v
:
f
&
Co.,
135
14
The Commercial and Financial Chronicle
(830)
31%
the
in
and
the
Canadian
United
heavy
rearmament
is now recognized
by
up
prosperity, like
States, is bolstered
ex¬
penditures
Canadian
Government and
by
bank¬
ing circles, and warnings are oc¬
casionally
given
out
that
too
much
cannot
be
of long continuation of
ent
boom
the
to
conditions.
latest
issue
Review"
ness
pres¬
According
"Busi¬
the
of
of
the
in
expected
way
the
of
Bank
"Strong
demands
tion's
resources
anate
from
and
Added
after
capital
to
na¬
to
em¬
rearmament
from
markets.
into
the
market
These
ness
reciprocal
plus
and
spending
factors,
the
here,
better balance
a
purchases
defence
the
between
States
armaments
more
thus establishing
in
require¬
United
the
program,
buying
to the
Canadian prepared¬
the
of
ments
is
addition
In
The
countries.
two
Minister stated that U. S. military
had
placed
May
value
of
S.
U.
than half the
more
Canadian
A.
States
end of
Canada
by the
orders
in
amounting to
in
orders
that
added
and
orders
"More
the
'United
coming in
are
important
very
magnitude
economic impact than direct
and
defence
the
are
the1
says
other
side
of
that
in
disbursements,
trend and
penditures
override
this
and
consumer,
freely."
banks
rate.'
and
buying
sparingly for over a year, has
since April been coming forward
more
stage
fast.'
the
back
pro¬
indus¬
goods
export
this,
sitting
the
on
continue
the
from
tries,
tooling-up
will mark the first year of
volume production with deliveries
coming forward at an increasing
authorities
Montreal:
gram,
and
year
of
however,
pattern
of
capital
a
nature
ex¬
being undertaken in this
are
predominantly
country,
to
de¬
resources.
Par¬
the picture. "The volume of work
velop its strategic
ahead
ticularly revealing in this regard
dustry
It
the
for
is
to
nations
seas
from
this
The
strike
steel
rent
maintain
of
still
are
high.
purchases
the
to
and
uncomforta¬
recent
in
fail
cannot
over¬
country. Inventories in
lines
some
long
level
in¬
lessening.
how
see
can
current
be
to
appears
difficult
their
bly
construction
prolonged
United
have
disruptive
Canadian
States
deter¬
some
industrial
effects
on
production."
Concerning the Canadian Gov¬
ernment's
defence
"Business
Review"
"Total
to
year
the
Speaking on the economic out¬ and its attendant needs, he did
is no
contributing importantly look to the graduating class of the feel "that the intermediate years
Central States Banking School at ahead would have to be
inflation, although the effects
watched
ble
quarter of
the
outlays
of
Defence
and
from
by
The
far
short
in
of
that
this
the
was
rise
in
of
Production
to, $306
mil¬
millions
quarterly
fact
major
a
Departments
$117
this
taken
was
forecast
before
or
compari¬
defence
quarter
were
level
is
the
The Minister of
tion
has
fiscal
vear
as
the
based
projects reported had already
been, initiated, work
probably
at
worst
than
them will
on
delayed
be
Parliament
to
that 'we have passed through the
major
part
of
the
most
development
showed
for
that
$600 millions
a
in
total
13%
over
and
or
1951
Secu¬
watching
consumer
in
exceed
1951,
1952
expected
are
to
paint
suffices- to
a
picture of the direction in which
ex-
and steel
iron
62%,
up
60%, rub¬
up
transport
32%, transportation
up
equipment
declines
lowing
such
the fol¬
as
finance,
recorded:
were
insurance
contrast,
32%. By
up
and
real
estate
down
sale
retail
and
trade
down
11%,
With H. M.
estimated
capital
by
take
$253
decline
a
form
its
explained
perity
that
qualms about the
no
ability to
responsibility for
in
this
run,
sharp
country
as¬
pros¬
the
over
because of the contin¬
growth
in
population
by
9%
or
in
contracts
Frederick
J.
Cook
Wm.
J.
Sennott,
Jr
and
in
that
ward P. Renier
of
and
discussion
a
of
revised
the
estimates,
budget
the
low
birth
in
rate
prosperity
over the intermediate
ahead is to reduce income
taxes—and
soon;
like Alice in
Wonderland, the private spender
is
losing the race with
rising
prices and taxes." He added, how¬
ever, "that the high birth rate of
the '40s practically insures longer
term
prosperity."
many
armed
"Monthly
publication of the
unless
Letter,"
have
the
current
high
According
defense
the
to
want
strong and ef¬
defense, but that is no rea¬
not scrutinizing its costswith utmost care. In fact, it is all
the more reason for doing so. Here,
again it is possible to suggest some
a
Shaw
with
bers
The
CITY,
has
C.
B.
of
Chronicle)
associated
Christopher
&
Building,
Midwest
Co.,
mem¬
Stock
Ex¬
(Special
with
B.
to
The
Financial
Chronicle)
FRANCISCO, Calif. — Al¬
Chong is now associated
Hooker
first?
There
is
& C o.
of
Stock
Ex¬
Exchange
Canada
330 Bay St., Toronto, Canada
to
Ba^k
is
&
application
(Special
of
far-
must
con¬
the
on
policies,
Yet
plan
basis
with
of
inade¬
and
it de¬
Test
the
quality of leadership in Wash¬
ington and how the country really
feels about the whole question of
keeping
the
take
ficult
national
What
whether
to
ex¬
Real
our
is
done
leaders
finances
will
show
willing
are
responsibility for the dif¬
of cutting back these
spending programs, and how
vast
task
effectively
our
people
support
and
material
those in Washington who are try¬
and
money
ing to accomplish it."
of
The
Financial
Beardslee-Talbot Acids
(Special
to
The
Financial
Chronicle)
placement
parts,
varying prices
paying
for
widely
similar
means
items,
Beardslee-Talbot,
Development
points
out
numerous
which the defense
while
benefited
be
on
Policy
Expenditure
Merrill Lynch Adds
(Special
'Tax
for
and
1952'
ways
program
costs
by
could
are
to
The
KANSAS
Financial
Chronicle)
CITY, Mo.
—
William
N. Johnson has become connected
with
ner
Merrill
Lynch, Pierce, Fen-
& Beane,
1003 Walnut Street.
re¬
through standardization and
of
Rand
taking ad¬
April by the Committee for Eco¬
nomic
Inc.,
Tower.
Joins Bache Staff
requirements,
(Special
to The
Financial Chronicle)
unified
Chronicle)
Minn.—Albert
with Harris, Up¬
Northwestern Bank
now
Co.,
improvement
through
ordinary business
methods
MINNEAPOLIS, Minn. — Ralph
practices to avoid duplication of.
orders, accumulation of excess re¬ C. Davis has joined the staff of
cataloging and purchasing,
use
of
quantity
production
methods, and economy in military
construction
both
domestic
and
DETROIT,
Mich.
now
Penobscot
Building.
with
—
Robert
S.
with Bache & Co.,
Nadeau is
viously
overseas.
He
was
pre¬
Baker,1 Simonds
&
Co.
Building.
"Third,
to
The
Financial
MANKATO, Minn.
Klaras
procurement
simplification
is
With Waddell & Reed
The Investment Dealers'
Association
Pine
& Co.)
Members:
Stock
340
Harris, Upham
MINNEAPOLIS,
ham
in
duced
(Special
M.
New York 5, N. Y.
Toronto
Francisco
With
no
obligation in any way.
(formerly Milner, Ross
Fay,
Ca¬
Two Wall Street
Ross, ICnowles
San
&
changes.
not
decisions
importance
be made
by the
master
"Finally, getting control of the
budget is going to depend upon
vantage of suppliers' experience
and
advice. A report issued in
Fay Staff
very
considering
securities, why
valuable
up
and the like. It
Joins Hooker
facilities
are
to
of
quate results.
"Another 'must' is
>,
Mo. —Temple
become
Trade
the
of
Financial
change.
fred
program? On the contrary,
tracts, since it spends
Christopher Staff
to
Street, members of the New York
complete.
tinue
sound.
'musts':
nothing to the effectiveness of the
and
are
achieved,
The
all
for
uses
kind
state¬
associated
our
investment
this
or
themselves.
manpower.
KANSAS
resources
we
is
by politics
services
piecemeal
applied in the efforts to hold
posed to countless ways and adds
with their firm.
All were previ¬
awarded, ously in the
trading department of
by Rodman & Linn.>
opportunity
years
of domination
the
Ed¬
value
growing industry,
financial policies and
natural
are now
new
NORTH!
of
Cook
J.
investment.
The
of
Controlling Defense Budget
"One is to root out waste
Exchange, an¬
William J. Sennott,' extravagance, wheh has been
Frederick
Joins
us
because
reaching
son
CHICAGO, 111.—H. M. Byllesby
Company, Incorporated, 135
for South La Salle
Street, members of
construc¬
figures
lower
were
write
diffi¬
more
September "Monthly Bank Letter" of the National City Bank
of New York holds reduction of budget is
going to depend on
leadership quality in Washington.
fective
country, and
investment.
reached
consumer's
the
"We
been closely associated with
the
development
of
this
-
capital
ment:
cf
Canada's
•
private
sume
outlays.
the
in the months ahead Jr.,
suggested
you
sales
the
higher prices
"we
out,
be
nounce
If
(3)
very
with
years
while he has
Bank
program
the
millions
tion activity
nadian
advancing
contrast
increased
National City Bank of New York,
lists several "musts" which should
sibility of
For
is
in
now
unprecedented
an
September issue of the
SAN
Boston 9, Mass.
pointed
in
the Midwest Stock
for
slowly
make
Schreder
In
Board
Fifty Congress Street
Schredei
after increased taxes, and
living
of
previous trend:
approximately
Mr.
Federal
the year as a whole. But the pos¬
LIES
1-1045
X.
"Musts" for
8%,
of
expansion
scheduled, to
less,
Harold
zenith."
actual
at
proportion
offer unexcelled
ny
has
down
larger
1952
con¬
pretty well
income'
business
Byllesby
than by higher prices and
"A
become
of
es¬
were
Now,
Sennoit, Cook, Renier
costs.
sound
4-2400
boom
ued
In contrast to recent
volume,,
rather
have
Mr.
cost
to
been
and
by
necessity
soending
cult
to
achieve, and (4) the
sharply increasing rate of postwar
propelled
upward
alter-; family formation will continue its
by government spending current downtrend for some time
have
long
10%."
housing down
the major part of this year's
added
value
is
expected
to
be
represented by a growth in phvsical
in
Schreder
Mr.
given
the
have
stocked with goods and are on a
replacement basis; (2) their 'real
country
shifting
52%, railways and water nately
years
wealth
worth
proof for
continued
is
less predict¬
economists
reasons
sumers
"For 14 years,"
90%,
D.
incorporated
that
most
deferable
or
pecially carefully at this time
"because (1) by now most
of
prosperity
than
Other
burden
"The
'luxury
many
able
the consumer."
coeartmaded'
petroleum and coal
OPPORTUNITY
A. E. Ames&Co.
stated
129%, non-ferrous metals
up
so
Inc.,
$ew peak for the seventh suc¬
cessive year.
is
rities,
chem¬
n
ber
Group
this
economic
current
(Special
CANADIAN STOCKS
for
outlays
CANADIAN BONDS
Corporation
Schreder
establishing
which
Municipal
of
percentage by which their capital
year,
construction
Provincial
Re-
durable
new
physical assets this
is
Government
of
living,
includes
now
search
industries, in order of the
Canada's
of
heretofore assumed."
velopment. Simply to list various
up
spending
of
result
one
items,' that it is far
rector
icals up
As
standard
Di¬
shift
major
increased
consumer
-
dent
in
carefully.
very
our
whole,
is the further
general toward invest¬
strategic resources de¬
in
in
new
a
this year's program
ment
Wisconsin
of
stopped entirely.
survey
outlays
University
Madison, Wise,
on
Sept. 2,
and
to
as
a
Defence Produc¬
reported
the
the
capital ex¬ Harold Schre¬
perhaps der, Executive
Presi¬
noteworthy aspect of Vice
"Reverting
penditures
United
new
machinery and equipment
which,_at $2,240 millions, is high¬
whole
indicates
that d efence er
by $347 millions or 18%; New
spending should continue to gain
construction, estimated at $2,941
momentum in the months ahead.
millions, will be up somewhat
for
set.
States
steel
strike
began.
But 28%, commercial services down
inasmuch as many if not most of 23%, forestry down 18%, whole¬
dis¬
implied by
the budgetary estimate of $2,125
millions
is
date
termination
a
effort,
of
survey
the
before
assessed
year
full
recently
mid-year
of the steel strike will have to be
if made
as planned, will amount to $5,181
June, millions, in marking an increase of
increase
Defence
the
bursements
To
The
which
on
"The
of
rapid
millions
lions—i.e.,
son.
the
the
$189
62%—in
1951.
over-all
to
published.
longer
to
been
estimate
the
for
has
expenditures
$734 millions, were $150 mil¬
lions higher than in the compara¬
extent
outlays
which
1952
the
of
end
official
rather
at
attributable
ment
states:
expenditures
revised
a
to be maintained.
total spending by business, the middle '30s."
while still high, has already turned
Mr. Schreder concluded his ad¬
in sectors of
the economy
less
downward and (barring a third dress by
stating that "the most
closely
related to
the defence World War) government spending certain way to insure continued
private and oublic capital invest¬
the
outlays,
Government of Canada during the
first three months of the current
fiscal
is
spending if present boom is
that the building boom
now
the
of Trade
that
+o b'3 oner^tive,
CPTP
Consumer
on
Harold Schreder, holds slackening both of government
spend¬
ing and new capital outlays must be offset by larger consumer
depreciation
of
deferment
..Thursday, September 4, 1952
Says Prosperity Depends
.
year.
rnd Commerce has intimated
By WILLIAM J. McKAY
That
last
Minister
the
However,
months
seven
periods
corresponding
Canadian Securities
in
first
in July than in the
57%
by
.
is
Waddell &
now
Chronicle)
—
' '
with
~: :
;
overall strategic plan
Are
we
spending
the
for the right things to get
the
Regis J.
affiliated
Reed, Inc.
money
<
an
needed.
most
we
need,
effective
at
a
defense
force
reasonable
cost?
Answering this question will take
real
top-grade
examination—free
With Richard Harrison
(Special
to The Financial Chronicle)
SACRAMENTO, Calif.
—
SumiO
is now affiliated with
Richard A. Harrison, 220 16th St.
Miyamoto
Volume
176
Number 5148,.
.
The Commercial and Financial Chronicle
.
(831)
the
Another
British Government is
doing its best* to honor the difficult
undertaking given by its predecessor in 1945 in connection with
Convertibility Failure
the dollar loan agreement to do its best to return to
By PAUL EINZIG
soon
as
Dr.
Einzig, in commenting on failure of the experiment of
limited convertibility of Sterling by the British
authorities, says
move was an error of
judgment and is an object lesson of what
would happen if pound sterling were now made
convertible.
Holds U. S. should realize difficulties in
become
effecting convertibility
National Bank Assets
*
On
and exceeded
.
for
month.
a
Wheat
has
increased
a
the
month.
It is
be
in
renewed
its
*
tal-assets
national
From the point of; view of her
inducement, the British authorities
In addition to
allowed
as
international' commercial
an
center.
the
transactions
in
addition
her
to
commences.
the
British
authorities
miscalculated
completely about the probable extent to whicn the
■would
be
reached
used.
for
.They certainly did not expect
several
months.
first
instance
tempt in
was
1947.
the
notorious
days that limit
claim
the
materials
realized
in
of
and
Belgium
Before
in.
ought, to have
the countries of Western
Europe.
000
-
way
it is doubtless gratifying that
that in
that
conditions
hav e
response.
or
Times"
was
editorial, "to
an
excellent
idea"
remarks
"The
on
step.
error of
judgment
was
the
approach will have to bp
a; more
cautious
one.
All
this, of
}
•
their
way.
How silly we should look and how soon!"
,;'fAnyway, the ill-advised experiment has
should go some
advantage. It
way towards making American opinion realize that;
one
or
banks
of
Council
Historical
the
3%, in the quarter.
banks
Trustee
American
the
of
At-
Museum; a member of
of the Pennsylvania
Society
of
the
Hospital
and
a
Vice-
Oakbourne
at
Oakbourne,
Midday Club.
on
by:
amount
re¬
of
individuals,
of
$3,669,000,-
$9,000,000;-,de-.
$173,000,000,
and
Postal
savings
anticipated dividend rate for period
and
July 1st to December 51st, 1952
discounts at the
1952
were
as
of
the
EAST RIVER
recent- call
on
Sl'5,363,000.000",
2%
a
but
real estate of
were
up,
3%
loans
SAVINGS BANK
de¬
March,
since
$7,848,000.-
in
the
to
OFFICES
FIVE
period:
individuals
IN
26 Cortlandt Street
$4,830,000,000, an increase of
9%-, and all other loans, including
loans to farmers, to brokers and
,
MANHATTAN
•
291 Broadway
4,to
$5,624,000*000,
*
increase
an
on
June
30,. 1952
was
as¬
same as on March 31, in com¬
parison to 32.31 in June, 1951.
*.
Investments
of
the
banks
YOU SAVING!
I
in
United States
Gentlemen:
I
32.67
the
-*
THIS COUPON!STARTS
of
The percentage
of loans and discounts to total
sets
j
41* Rockefeller Plaza
743 Amsterdam; Avenue
of purchasing and
carrying secu¬
rities, and t'o banks, etc., amounted
10% since March.
j
60 Spring Street •
dealers and others for the purpose
■
and
course, is an object-lesson' of what would happen if those who
want to free the pound andN make it convertible
immediately had
the
reserve
Southeastern
were
made
that the authorities/by giving the impression of» vacillation
have neither improved the world's status of sterling nor
lightened
the eventual task of; .reestablishing^ Britain's former
large transit
trade in commodities. If\the 'experiment is resumed next month
of
Consumer
take
an
a
the
Chapter,
na¬
Commercial and indus¬
were
000
dollar
Looking back it seerbs that
Reserve
Cross;
water Kent
of
30, 1951.
corporations
March.
loans
loans
Financial
^countries at their wits' ends tp discover ways of
keeping their heads
above water on dollar account it was rash to go so far at the first
Red
over
year.
$1,256,000,000,
Federal
000,000,
8%, above the June 30 figure
date
advantage of, the opportunity to earn \
commodity deals presented by the bad tech¬
nical position of Britain's EPU account. But with
many European j
.commissions
with
of
of
"
a
"It
increase
than
exceeded
the
of
of June,
crease
jritain can ill afford to be docprevailing circumstances Bj
They are subject to criticism even from quarters which
basis.
since
trial
to
broad
an
banks
of
last year.
fundamentally changed and
matter of principle are strongly in fayor, of an
early return
convertibility. ' These quartersdcritioize the British authorities
.on,the ground,of having started, the new scheme on.an excessively
Cash
$33,170,an
all-time high.
They
$818,000,000 above the March
figure and almost $3,000,000,000,
trinaire.
as
of
and
000,000,
By plunging-into convertibility even on the limited scale of.
the August experience the authorities disclosed that 19th'
Century
dogmatism is still deeply ingrained in their minds. They ought to
now
A Director
$43,000;000,000, an
$1,000,000,000 since Pennsylvania
were
warning.. For
by
and
down
Net loans
it indicates what would happen on a much larger scale if in
pres¬
ent circumstances unlimited
convertibility were to be resumed.
know
000
end
although, this kind of business activity has been in abeyance for
many years the resumption of facilities met with such
At the same time this experience should serve as a
to '
$2,000,000,000 in the
$13,000,000 and certified and
cashiers' checks, etc.,
were
$1,.534,000,600.
single amounts involved were so substantial that if the
authorities had met them in full they would have exhausted their
a
increase
March,
Parker & Redpath.
The total securities held
amounted;
were
stances
In
last year.
amounting to
$8,587 000,000 increased $116,000,-
the moment, they, declare themselves prepared to
dollar commodities for resale to these
countries they would be inundated with applications for licenses.
Indeed, applications reached them by the hundred. In some in¬
shorter time.
the time of its merger with Horn-
of
were
active
the
and
increase
deposits
that
a
of
deposits
were
dn
raw
They should have
authorize the purchase of
limit in
obligations of States and political
subdivisions
posits of States and political sub¬
divisions of $6,232,000,000 showed
been
scarcity of dollars and famine for
on
more
^States Government of
many
d
authorities
the
Reed
Morgan & Co.
In
1928 he
joined G. M, P. Murphy & Co.
and was Manager of that firm at
time deposits of
individuals,,part¬
nerships and corporations of $20,720,000,000, an increase of $557,000,000. Deposits of the United
The
position to
a
with
A.
pared to nearly 35% a year ago.
Other bonds, stocks and securities
of $8,391,000,000, which included
$52,235,000,000,
which
increased
$1,628,000,000 since March, and
convertibility at¬
unduly low limit of
was
of
demand
the
the
•
present, occasion
of the extent of the
aware
was
in relation to Belgium.
exhausted
was
payment in gold.
On
failure
The second instance
inconvertible sterling fixed
facilities of; this nature.
on
associated
se¬
when
$93,000,000,000, an
nearly $3,000,000,000
partnerships
be
Instead, the
they underestimated the rush
the
1927
ported in June last year. Included
in the recent deposit
figures were
"danger point" beyond
which it became
risky to grant further licenses was reached in a
matter of days. This is the third occasion since the end of the war
that
became
in
in
were
facilities
limit to
active
and
of June
March,
$6,000,000,000,
themselves
new
the
he
com¬
started
business
their
in process of collection) of $10,- near West Chester, Pa., Mr. Jeanes
206,000,000, a total of $23,992,000,- is a member of the Bond Club of
000, showed an increase of $674,- Philadelphia and a- -Director of
the 4,953
as
since
ments to the EPU.
Apparently
assets,
with
Lincoln-Lib¬
President
call,
deposits
30
increase
through the re-export;
gold through gold pay¬
of
Jeanes
The investments curities
total
associated
Philadelphia office,
erty Building.
Colony
$7,000,000,000
The
dollars
losses
of
that
become
other banks (including cash items
March
previous
nearly
grant licenses. Should the amount of licenses exceed that of the
lose
34%
Exchange, an¬
Henry S. Jeanes, Jr.
$12,530,000,000 and balances with
31,
1952, the date
of
June
to
year.
the
Stock
re¬
banks
Preston Delano
This amount, together with
any monthly current deficit in relation
to the EPU, determined the extent to which it
was considered safe
stand
5%, in the
were
of
4,933
this
reported by
tional banks
deficit Britain would
York
Laird,
—
ported by the
At the time when the
experiment was undertaken Britain's
total cumulative deficit in relation to the EPU was'about £60
mil¬
lion beyond the point at which full
to
the
amount
themselves to
payment in gold
as-
were
than
the experiment for the sake of taking
step towards convertibility and for the sake of reviving London's
activities
The
s
nearly $3,00(L000,000 mo Hi
be persuaded to undertake
a
t
s e
dollars in settlement of the deficits.
gold position Britain stood to gain
the resale of the dollar commodities.
on
modest
posses¬
sions.
very little through the operation of the new,
arrangement.
Her
gain—or rather her reduction of loss—was limited to the commis¬
sion or profit the British merchants
engaged in the traffic would?
make
re¬
covered
United! States
oy sening dollar commodities to Western Europe.
This
that, to the extent to which this is done, Britain would lose
dollars through the purchase of. dollar commodities
for re-export
or
i'ne
and
meant
parting with gold
has
Pa.
Meeds, members
In
1942
he
$5,810,000,000, blower & Weeks.
the
4,932l: ac-. were $314,000,000, or 4%,. more joined Graham, Parsons & Co. as
tive national tnan in March, and
resident manager and in 1946 be¬
$810,000,000,
banks in
the or 11%, more than held in June came associated with AuchincloSs,
aei.icit
instead of
on
$102,000,000,LUU,
turns
•
exhausted ^er limit of facilities with the
Fu^oea^ P^vments Union,
any deficit in relation to the EPU has
to be settled in
gold, the British Government preferred to reduce
tne
banks
■
adopting the scheme was that,',
existing arrangements Britain,
since under the
Einzig
;
'■
The icea in
Dr. Paul
of,
June 30, 1952 amounted to
nearly
present
form, if at all.
New
&
nounce
by approximately three-quarters of billion dollars.
doubtful, however, whether
will
scheme
PHILADELPHIA,
Mr.
indefinitely
As
7.42%
$105,000,-
March
when,
7.52% of total deposits.
were
Bissell
Loans and
year.
in
Henry Jeanes, Jr. Now
With Laird, Bissell
high, and investments in U. S. bonds
..According to Comptroller of the
Currency Preston Delano, the to¬
suggested that they should be submitted again
in
all time
at
than
were
were
to fail¬
Up $3 Billion
by $6 billion figure of June last
were
was
profits
capital accounts of
deposits,
more
they
been
from the scope of; the
for applications concerning other
commodities within the scheme, it has been
scheme.
discounts
Surplus
undivided
Total
total
000
_
14, only a week after the scheme came
into operation, the Bank of England announced ;
that no further, applications for license could
considered
of
Comptroller of Currency Delano states also that National Bank
deposits likewise rose by $3 billion in second quarter of 1952
1
stock.
$6,896,000,000, which
„
Aug.
excluded
000,000.
undertake
are foredoomed
attitude is liable to defeat its object.
an
preferred
$1,253,000,000 and capital reserves
$264,000,000, or a total of $4,693,-
convertibility with a reasonable
The impatience displayed by American
opinion
success.
Such
ure.
granted
immediately, after its inauguration.
to
again into premature experiments which
The operation of the new. scheme
which British merchants were
almost
of
$3,176,000,000,
in.this respect and the persistent pressure
brought to bear on the
British Government, from Washington
may force Britain again and
licenses to buy certain dollar commodities for
resale against
sterling or local currencies to
countries of the EPU had to be
'suspended
be
possible
change of
complete failure.
under
$2,203,000,000; including $6,000,000
resume
Eng.-—The experiment of limited convertibility
by the British authorities in favor of the countries of
European Payments Union during the first half: of'
August
4
convertibility
Indeed, ^this experiment shows that the
trying to progress towards convertibility
convertibility. For each failure makes it psychologically as well
as materially more difficult to create a situation in
which it would
LONDON,
a
is
before this becomes practicable.
Taking a long view this does
not in any way bring nearer the moment when
Britain can
undertaken
in
Government
The unimpaired
capital stock of
banks on June
30, 1952 was
the
even
and should not press for it.
resulted;
practicable.
as
British
the
15
I
I
I
I
Government'obliga¬
tions (including $16,400,000 guar¬
first deposit of $.
Please
Savings Account in my name and mail: my
bank book
to
the address below.
Name.
I
anteed
Enclosed is my
open a
I
1952
obligations)
aggregated.
which
000,000
crease
was
an
since
on
June
30,
$34.695.000.000;,
ihcrease" of
March,
and
Address
I
$736,an
in¬
of nearly. $2,000,000,000, ort
I
City, Zone No., State.
■"f
Member Federal Deposit Insurance
#:T"'
Corporation
I
The Commercial and Financial Chronicle
16
Thursday, September 4, 1952
...
(832)
eliminated
the nortfolio:
f^om
sets of
Irwinr
per
Caterpillar Tractor Co., Deere & Company.
McLellan Stores Company, Southern Rail¬
$11,655,165, equal to $23.72
share, on July 31, 1951.
Included
Mutual Funds
NATIONAL;
COMMENTING
ket
your
or
indecision
"The
brooded
ket all
the
that
stock
mar-
has been the
mar-
over
NORTH AMERICAN BOND Trust,
originally offered by Distributors
Group for 82% at the end of 1932
and for which Distributors Group
has been depositor since 1932, is
ket's
dtaltr
summer
surrender of all
outstanding certificates of intercalling for the
outstanding feature. Another
interesting reaction, which may
become almost
RESEARCH CORPORATION
est in the Trust, City
universal convic-
a
nounced
New York 5, N. Y.
of the
end
the
with
depression,
boom—possibly begin-
armament
ning in 1953.
"If
conviction
that
wider spread than
much
gets
it is," the fund
continues, "it might even contain
the
of
seeds
without
a
its
correction,
own
setback in the
necessary
market. It is almost axiomatic that
when 100% of the people
in
ed
the
market
interest-
convinced
are
an unfavorable
market
for liquidation, the end date could
be extended.
Because the trust is believed to
existed
appreciation
ONE
WALl
STREET
they
way,
me
.
obligation please send
proipectus on
a
Canadian Fund, Inc.
Nome.
Address..
mu-
seciritiefarenfthf only''prrfessional groups seeking investments
north of the border. American life
insurance
of June
20. 1952, held more than $2.5 billion
in
foreign investments, of
which approximately 95% was in
companies,
Canadian bonds.
On
a
as
breakdown
holdings, government
bonds accounted for $1.5 billion;
city
bonds about $826 mil-
corporate
lion, and the balance, mortgages.
By comparison, in 1939, life incompanies held only $71
million, all in Canadian Govern-
surance
securities.
ment
Professional
over
CHECK LIST
SERIES II
based
on
many
of thorough research and
practical experience in fund man¬
years
agement.
□ STUDY OF INVESTMENT OF PEN¬
results.
approximate
of this literature
wish—mail thn
advertisement with your personal or
steel, 6.41%; and non-ferrous met¬
als 5.59%.
Per
1865
Members New York Stock
Exchange
Uptown Office 10E. 45thSt.,N.Y. 17
MUrray Hill 2-7190
asset
fiscal
distribution of 16c per
realized
net
up
Electric Company; 1,000
Machinery & Chemical Corporation;
1,000
Kobacker Stores,
Inc.;
and 1,000
Washington Gas Light Company.
Holdings of common stocks in the fol-
security profits, was
a year earlier. The
from $17.90
vestment
income
in fiscal
share
totaled
olden
In
instead of
a
that type
The
firms
of
of his funds in
days, when airplane rides were a novelty
is
of
the state of the stock market.
plane
And
so
was
about to run out of gas).
it goes
with current popular discussion about
As with the old airplane
rides, people are commenting about the
market altitude,
pointing to the fact that this is one of the longest bull
or
markets in
about to
history (the implication being that the market's
run
out of
gas).
.
The fact that we continuously
oreate
mortgages in excess of
°Pf own investment needs has enV
pr.Py'?e
,ei
n
p institutions with large diversified mortgage 'packages'
ranging in volume from $1,000,,
$14,000,000,
to
Mortgages
Ryan
are
However,
as
being
the
piece of paper, doesn't represent quite
the same thing
in 1952.
exAxe Securities
available!
Corp. in
simple analysis of General
a
enlisted
a
complete
of the survey's findings.
MUTUAL FUNDS under the
of
man-
Boston
Management
& Research Company last month
passed' the $100,000,000 mark in
total
net
assets for the first
time,
according to an announcement by
William
F.
Shelley, partner of
management
Canada
funds
are
General
of the
diversified "packages' of mortgages whlch can be acquired and
The
company.
Boston
Fund
Fund,
and
the
country,
answers.
at 1929 High
at 1952
High
$5.41
1-31
5.02
$10.21
$11.75
$41.77
13.60
17.49
Investments
4.21
6.44
Goodwill, patents, etc
1.09
1.17
0.50
1.30
$31.15
$68.17
4.34
14.72
and
securities—
Inventories
t
Dec. 31, 1951,
10.37
21.18
w
Current assets
Plant and
Other
equipment
assets
1
Total assets
Current liabilities
0.09
0.03
3.38
5.26
r
Reserves and other liabilities-
5.23
4.97
$13.04
$24.98
10.90
8.19
0.06
7.15
33.53
$18.11
$43.18
Minorty interest
Preferred
-
stock
ages," it was stated.
Total liabilities
the
nDCW
DCDADTC
OPEN-END REPORTS
during the past 12 months.
at 1929 and 1952
Dec. 31, 1928,
Pointed out.
Bond Fund of Boston.
Nearly $300,000,000 of this record
asset
figure is attributable
to the growth of the three funds
the
Highs for General Motors Common Stock
Ryan
Even the largest of such lending institutions find that assembling and acquiring a geographically
diversified
portfolio
of
mortgages from many sources can
best be done via the purchase of
large tailor-made mortgage "pack-
on
eliminating
looking at what's behind
Comparative Table per $100 of Market Value
serviced as a single investment
unlt' rather than to acquire mortgage investments in smaller units
across
light
board every business day.
Receivables
spread
agement
are some
tl0ns have found u more efficient
a?d economical to purchase large
staff, and in return
cooperation Distributors
Group promises them
Here
dis-
to
confidential, to the members
such
stock seeks to shed some
favorite lunch-table talk) by
as
Cash
their sales
for
it
common
lendinS and investment institu-
questionnaires, which
know,
most professional securities men
yesterday's stock market isn't today's, and one share of
General Motors (circa 1929), although it may be the same
retailing
leading
being
"My, we've been up a long time," (the implication
or
INVESTORS DIVERSIFIED Ses¬
as£em,
sold $22,000,000 in mortgage "packages'^to
[nee;. 'I16 ,nef?s
banks and other
^ln.f institutions thus far in
J?5|. ll w'f disclosed by Donald
E; Eyan- Vice-President in charge
°I the •
•
S. mortgage depart-
"Look how high we are!"
discussion among passengers was
Savings banks and other large
of security.
aid
tribute
some
truthfully
can
BULLOCK
net
assets
FUND
reports
Common stock
total
July 31, 1952 were
$14,475,791, equal to $24.86 per
share, compared with total net ason
Reserves for contingencies
Surplus
Common stock equity
1.46
Custodian Funds
EATON & HOWARD
BOND, PREFERRED AND
Affiliated
COMMON STOCK FUNDS
The Keystone
50
Fund
Company
EATON & HOWARD
BALANCED FUND
STOCK FUND
PROSPECTUSES OF THESE TWO INVESTMENT FUNDS MAT
BE
OBTAINED
FROM
YOUR
INVESTMENT
DEALER
OR
Congress Street, Boston 9, Mass.
Please send
your
ten
Prospectus
upon
request
describing
Organization *nd the shares of your
Funds.
Name
Addrcii
City
me
eaton
prospectuses
& howard
INCORPORATED
D-4C
BOSTON
;
...
Lord, Abbett & Co.
.
State..i.......„i.
24 Federal Street
BOSTON
New York
—
Chicago,
«—
as
convenience for suburban travel, much of the
investment funds," Ryan said,
an
salesman
a
per
same
Is the Market Out of Gas?
has invested
when
90c
1952, the
tell his prospectus that he himself
that it is
Group belief
important sales help
$18.30,
special
share from
regular distribution from net in¬
Pood
l°cal mortgages are now faced
Wlth the Problem of expanding
their mortgage portfolios on a natlonal basls> in order to find sult~
able outlets for their accumulating
Distributors
of
value
year-end
de-
extent
accompanying message
scribes
mutual
Keystone
the
those GM shares traded on the
the
ownership
of
mutual
shares by security salesmen.
the
—*
30,
District
Empire
share
after
1952, including purchases
of the following shares of common stocks:
1,000 American Hospital Supply Corpora¬
tion; 1,000 Diamond Alkali Company; 5,000
April
"M any
lending
institutions
which formerly invested only in
ascertain
to
Securities,
of
summary
Founded
the three months
changes in
Investment
from
fund
designed
Group
•
Kidder, Peabody & Co.
Custodian Fund B-3
net assets of $42,000,000 on July 31, 1952 compared
with $39,000,000 on July 31, 1951.
Keystone
reported total
height of the market (running the danger of
Distributors
of
19
in several of the Funds.
percentage of total net assets were
shares
representing 10.51%;
oil
of Investors Diversified Services,
Inc- ?nd its subsidiary, Investors
Syndicate of America, Inc.
by
managers
the
the
Keystone Funds on July 31,
common
Group,
launched
are
For your free copies
—check items you
of
Motors
SION PLAN FUNDS—An examina¬
tion of different methods that may
be used and a
comparison of
form
for selection from the portfolios
has
survev
in
assets
been
NATIONAL
An
□ PRINCIPLES OF INVESTMENT—
An original and lucid study of
the
that the
billion.
a
in
road bonds.
plained.
INVESTORS'
CF-7
reached
vestments
A
business card.
By 1945, the in-
net
of
VALUE
MARKET
qualify under the Internal RevAct as a "regulated invest-
of Canadian
fundamentals,
$2,908,573
1952
was
over
$220,000,000—up from
stocks on July 31, 1952, accounted
$213,000,000 a year earlier partly
for
84.42%
of total
net
assets.
as the result of appreciation in the
The
largest
group
holdings
in
prices of the underlying securities
common
stocks
in
Assets
be
to
sure
are
OUR BRAND NEW American
jsp
no
of
Machine
Sunstrand
and
Company,
Company.
combined
So many people are already convinced
that a serious
setback is due within a couple of
GENTLEMEN: At
way
Tool
THE
wrong.
JCALVIN BUlLOCK
JjvlEW YORK
on
enue
ment company," no provision has
been made for any Federal taxes
which may be incurred.
The
trustee will pay $118 to holders of
years that a large part of them the
certificates. The trust since
may have already adjusted their 1932 has paid out $1,124.60, includstock holdings to match their con- ing return-of-capital payments,
victions."
The portfolio, just before liqui¬
dation, consisted entirely of railone
.
assets
net
Bank Farm- railroads, 9.34%; utilities, 7.79%;
ers Trust Company, the trustee,
announced last week,
The trust's certificates of interest were dated Sept. 1, 1952 and
were to terminate on Aug. 81,
1952, with the exception that if,
in the opinion of the trustee, there
lion, is lhat there will be a prorecession, or a full-dress
Eitoblithed J 930
•
said:
share
NATIONAL SECURITIES &
120 Broadway
ON present mar-
conditions, Delaware Fund last
week
has
Prosptciut from
total
earlier.
By ROBERT R. RICH
'A MUTUAL INVESTMENT FUND
per
ized
in
of this year was unreal¬
compared with $1,913,119 one year
SPECULATIVE
SERIES
Approximately $4.21
July 31
were
Atlanta
—
Los Angeles
533
Montgomery Street
SAN FRANCISCO
[Volume 176
Number 5148
The Commercial and
Financial Chronicle
...
(833)
in fiscal
ciation
to
1951.
than
outstanding.
Keystone
reported
1952
of
assets
a
decrease
was
uidation
of
year
due
the
Fund
S-4
earlier.
year-end
The
shares
by
asset
5s,
after
value
year
moved
from $6.40
payment
on
1963
Unrealized
the
from
1952
to
Steel
There
were
back
Co.
1st
Waldorf-Astoria
no
'Seor-ffe
PUTNAM
The
FUND
following
additions
Instruments,
Inc.;
Beckman
North
made:
were
Chicago
&
Ry. Co.; Claude Neon, Inc.;
Helicopter Corp.; South Carolina
Western
Piasecki
Elect.
&
Electric
Gas
Co.
and
Standard
Gas
&
Co.
for
two
about
50 State
years
curing leads
S
t h
o n
in
p««o
ofen,
adding
other
ter
a
in
APPOINTMENT
Flannagan
of
of
Arthur
Minneapolis,
W.
to
man¬
company's home office
new business
department was an¬
nounced today by Investors Di¬
versified
Services, Inc.
of St. Paul and
A native
graduate of Me¬
a
Merit, the Bronze Star
Army Commendation.
chanic
Arts
High School there,
Flannagan attended the Univer¬
sity of Minnesota before joining
I. D. S. in 1933
United
He
SCIEKCE
company's
accounting
served
Fund
a
as
promotions in
bookkeeping
departments
and
and
has
of both certif¬
manager
icate and
mortgage accounting be¬
fore being assigned to his
present
post.
Prospectus from
He
States
your
Investment Dealer
Navy during World War II.
served
WADDELL& REED, INC.
FIRST
Aug.
Principal Underwriters
of
40 Wall St.
New York
1012 Baltimore Ave.
City
in
the
United
or
SEC
m
Kansas City, Mo.
||
||
REGISTRATIONS
28
filed
of
of
shares
derwriter:
Aug. 25
The
Wellington
Company
of
America
filed
INDUSTRY
private
and
years
Peoples
is
Fund
Savings
wires
to
the
40,000
INVESTMENT
filed
statement
shares
TRUST
of
registration
a
shares of
of
Boston
Aug.
with
its
statement
beneficial
on
$1
on
the
par
Aug.
covering
interest
in
the
trust.
known
VALUE
LINE
filed with
INCOME
the SEC
800,000
a
FUND on Aug.
11
registration statement
shares.
distinguished
the
of
change
Securities
Commission,
Aerouautics
member
eral
Board
He
or
has
and
Ex¬
the
and
Civil
Civilian
served
as
consultant of the Fed¬
Commission, the Na¬
Policy Commission,
the War Department and the Air
Power
Coordination
also
a
Law
'SECURITI£S.fc^
and
prospectus on
Committee.
He
is
former dean of the Harvard
from your investment dealer or
63 Wall
Street, New York 5, N. Y.
(Special
A Prospectus
describing the Com¬
its
and
pany
shares,
including
the price and terms of offer¬
ing, is
F.
available
request.
upon
EBERSTADT & CO. INC
39
*
Broadway
.New York City
In
investors
oil
are
of
has
been
more
estate.
In
the
of
the
to The
Financial
Chronicle)
H. Butterfield & Co., Jackson
City Bank & Trust Co. Building.
With Waddell & Reed
(Special to The Financial Chronicle)
VALDOSTA, Ga.—Jack
S. Jen-
nings is with Waddell & Reed, Inc.
The
A Mutual
Selective
be obtained
from investment dealers
The
200
Parker
or
Berkeley St., Boston, Mass,
•
Fund
has
of
formation
about
the
bonds
which they
resolves itself into
declared
founded
1925-
as
circularization.
lists
and
them
to
August
shareholders
29,
of record
as
who
a
or
already
simple
There
dealer
any
INC,
Minneapolis Minnesota
that
or
September 11,1952.
Philadelphia 2, Pa.
What works in
business
will
also
that
program
is
soundly-
will
to
at it
work
until
mo¬
you simply cannot ex¬
pect to make a success out of 9.
direct mail campaign unless you
do
these things."
such
are
Drexel & Go Adds
locate
can
sources
houses
in
number
a
of
much
as
as
ested is far too
expensive
of
in¬
are
a
a
prop¬
looking for investors;
if you
desire to meet people and
help them do a creative job of es¬
conservative in their
are
to
investment.
who
There
such stocks
own
approach
people
are
A.T.&T.,
or other good utility stocks, that
operate in your particular locality.
The local power company
list, or
the lists of big name utilities such
Consolidated
as
as
Edison
you
in
cal
a
Fruit
Co.
as
sev¬
when the politi¬
in
Central
upon
salesman.
Drexel
is
firm
novue
as
ant
Prior
to
&
Company, Mr..
Bentley has been associated with
Harris, Hall & Co., Inc. in both
their
Chicago
and
New
York
offices.
Janney Go. Reopens '
Pittsburgh Office
PITTSBURGH, Pa.
— Janney
&
bankers,
an¬
reopening of their
Pittsburgh office at 902 Common¬
wealth Building, under the man¬
Co.,
investment
nounce
the
agement of Walter J. Carroll who?
succeeds
the
late
Alexander
F„
Taylor.
Elected Directors
CHICAGO, ILL.—Everett Ware
Cadjf, faew York, and David AJtChicago, have been elected
one
of
it was announced today by Arthur
Keating, Chairman of the Board-
America
their
Mr. Cady
Carl
M.
is
a
special partner of:
Loeb,
Rhoades
New York investment
& Co.*
firm, and at
director of the Budd Co. of Phila¬
delphia.
inent
Mr.
Altman
is
a
prom¬
attorney and tax consultant*
invest¬
This "double shot" timing
mailing is usually productive
Midwest Stock
Exchange
Appoints Donald Rogers
replies.
a
case
you can
send out
offer of information regarding
the
Bentley
their
directors of Nesco, Inc., large mid¬
west manufacturer of housewares*
A feeling of uncertainty
doubt about the effects upon
many
an
institutional
joining
B.
with
man,
(2)
of
Norman
If
upsetting to the stockholders,
will have a combination of
value
that
associated
people.
situation such
months ago,
was
&
Company, 14 Walt
Street, New York City, announces
of
United
situation
New
Drexel
names
minded
find
can
of
Bentley to Staff
New
other such groups,
nearly
In such
WALTER L. MORGAN, President
of
along. But
own,
the time wasted in
weeding
those who will not be inter¬
out
of a
stock of record
then*
mentum itself begins to carry you.
prop¬
good
stockholders list.
The possibility
that many
wealthy people are not
security minded at all is so great
91st Consecutive
income, payable September 30 to
two,
something else
They advertiseand, of course, their
poor.
lines
N.
list
are
City, also
records,
Quarterly Dividend
SELECTIVE FUND,
or
pay off in the securities business*.
It is simply a matter of a
longr
or
are
ments.
2Cc per share from net investment
other
peo¬
rated at $50,000 or $100,C00, or lists taken from income tax
of
H. K. Bradford, Pretidenf
tells them
are
range
stocks
through regular
There
York
the
of
appears t©
good idea. Tney keep
month
spasmodically
results
West
(1) Conservative minded investors
1952.
a
a
they try that.
supply.
and
a
for
osition of obtaining good lists for
and
Investors
Corporation
.s:
a
Directors
well
per
1952
may
of
FUND, lac.
quarterly dividend of eleven cents
share payable on September 19,
Investment Fund
Prospectus
Board
someone
it
They jump
They stood,
time.
the
you
Consecutive Dividend.
day with what
them to be
and
stockholders,
eral
Notice of 27th
business.
ple who do know something about
securities and would therefore be
more
interested in obtaining in¬
existed
mUNGTON
-
conceived from the start, with am¬
ple funds allocated to the job, awl
conservative
■SSSssssSHSSi
the
said
once
the
one
in
tate planning, then you will ob¬
JACKSON, Mich. — Donald G.
Corley has become connected with viously want to meet people who
H.
advertising for
all
at
South.
York, etc. will hold the
SELECTIVE
familiar
as
in
business
around
the acqui¬
In Florida
Middle
leading direct mail
off
interest
production.
Program
a
the
of
investment
parts of
for exam¬
more
and
whick
signing-
or
the prospect does is
put it b*
the mail.
It is expensive but it
pays. The cost per lead
goes dowa
if you get the volume of
repKesi.
me, "I don't understand most o£
the advertisers that I meet in
the
certain
royalties
letter that
card
addressing
irudt
connec¬
All
securities
in¬
osition.
School.
With H. H. Butter field
request
Distributors Group, Incorporated
country
Oklahoma,
If you are
a
in
interested in other
investment rather than
of
worth
a
Trade
tional
ram
that
are
securities.
best
in this
pull-out
Have
dividuals who have been
engaged
in this business for
years. In this
2, 1952
connection I do no believe that
by Arthur Levey, President.
Mr. Landis is a former Chair¬ generalized lists such as: People
Defense.
A Balanced Fund
most
in
the
of
the
re¬
Electronics & Television
Corpora¬
tion was announced Sept.
man
covering
the
forms
a
no
specialists
true
course,
of
seen
re¬
The problem of
securing quali¬
fied lists of
of
careers in
government service, to
the Board of Directors of Skiatron
of
other sections
elec¬
possessor
profitable
needs
for the
easy
combination
a
encloses
is
there
are
sections where farm
land and suburban real estate
are
in favor. This is also
true in some
Landis, widely
attorney and
of
one
M.
show
One
tion, is
the
firms
reply
pieces I have
sales completed.
parts
vestors
real
Corp.
YORK, N. Y.—The
James
retail
the
cipient.
the
that
appears
to
as
make
from
throughout
citrus, and cattle land,
fol¬
James M. Landis Dir.
of
is,
sition
&
Of F. Skiatron
It
certain
there
Russell
NEW
inquiries
Territories Differ
with
A.
tion
any
if he
One
ple,
a
Co., St. Louis; Got&
Co., Cleveland;
Riecke & Co.,
Inc., Phila¬
delphia; B. E. Simpson & Co.,
Denver; Young & Co., Inc., Pitts¬
burgh.
tron,
for
beginner
many
to
to
as
Texas
resident of Yonkers,
many
the
of
Schmelzle
H.
on
Commission
Trust
SHARES
registration
a
500,000
of
fi¬
Co., Detroit; Edgerton,
Wykoff & Co., Los Angeles; Fusz-
of
including $20,000,000
periodic payment certificates and $750,000 in single payment certificates.
covering
capital stock.
Group Securities, inc.
York
Simons &
registration statement with
a
sults
an
lowing securities dealers: Baker,
Un¬
Certificates series B,"
27
for
direct
Accumula¬
Fund.
&
Exchange
"Corporate Leaders
SEC
1FUND
the
in
27
ADMINISTERED
for
Wellington
LEADERS
filed
GROWTH
THE FULLY
Plans
of
Securities
covering
/
Y.
Philadelphia.
the
New
and
Troster, Singer & Co. maintain
CORPORATION
on
the SEC1 an aggregate
with
$23,000,000
tion
in
INVESTORS
CORPORATE
s
numer¬
Bank there.
messenger boy.
successive
won
the
as
N.
trustee
It
of
able
are
circles, Colonel Troster
is past President of the
New York
Securities
Dealers
Association.
a
in-
obstacles, but it appears that
they can obtain good leads they
if
nancial
He has been
A
Good Mailing Piece
After you have
acquired a pro¬
ductive list then
you must have at
message, and it should be
pvesented in such a manner
in
almost,
obtain
Star, the Legion of
known
to
sales
Oliver J. Troster
and
the Silver
Well
pro¬
qualified leads in their
territories.
They have the usual
decorations. Included in these
ager of the
for
this has
bit of interest since
a
received
dealers
problem
began
1916
and
selfish interest or*
the part of the
prospect to protect
his interest.
Obviously,
quite
operation.
long
career
y
personal
country concerning his method of
mili-
which
the
of
salesman
results
a
have
other
an¬
distin¬
guished
i a r
I
chap¬
to
and
quantity
work.
created
re¬
after
its
successful
will
Colonel
Troster
turns
system
a
for
salesman—even
Germany.
issue
page 26, I wrote
firm in New York
City that has
sufficient
14
on
Replacement
are
Street, Boston
August
retail
a
with the 307th
ous
PROGRESS
the
"Chronicle,"
the
for which he has received
PERSONAL
Putnam Fund Distributors. Inc.
By JOHN DUTTON
In
active
on
duty
Mills,
Inc.;
Columbia
Pictures Corp.;
Consolidated
Coppermines
Corp.;
Conti¬
nental
Baking
Co.;
Fairchild
Engine
&
Airplane
Corp.;
Gair
(Robt.)
Co.,
Inc.;
Gimbel Bros., Inc.;
Goodall-Sanford, Inc.;
Interstate Dept. Stores, Inc.; Intex Oil
Co.;
National
Airlines,
Inc.;
Thatcher
Glass
Mfg. Co., Inc.; Union Asbestos & Rubber
Co. and
White Motor Co.
■
Troster, Singer & Co., 74
York City, is
his
desk after having
Depot
Keystone S-4
were
American
Colortype Co.;
American.
Maracaibo Co.; Barium Steel
Corp.; Beau-
d/te
Securities Salesman's Corner
Troster, part¬
at
been
ended
additions.
Portfolio eliminations from
nit-
in
ner
fund
months
Hotel
w.w.;
B-3
six
Wood
Colonel Oliver J.
Trinity Place, New
fiscal
$2,000,000.
Keystone's
tlie
Alan
were:
per
Corp. Non-Cum. Inc. 5s, 1954;
Lehigh Val¬
ley Coal Co. 1st (Stp'd) 5s, 1974.
July
Returns to Desk
invest¬
30c
1952.
at
amounted
during
31,
net
totaled
fiscal
Eliminations
portfolio
July
share
$6.91
in
appreciation
entirely to liq¬
fund's
during the fiscal
to
income
17
Col. 0. J. Trosler
secu¬
per
Payment from
ment
share
investors.
Per
share special dis¬
per
tribution from net realized
July 31,
compared to
on
$9,000,000
$10,000,000
50c
a
share.
Custodian
net
15 of
$5,000,000—about rity profits. The fiscal 1951
special
on the
2,310,111 distribution amounted to 57c
share
per
shares
appre¬
July 31, 1952 amounted
on
more
$2.18
Unrealized
effects
of
these
adversit^
the outlook for the stocks
question.
worthwhile
The
replies
because
will
there
ir|
jbe
is
a
CHICAGO, 111.—James E. Day*
President
of
the
Midwest
Stock.
Exchange, has announced that the
Board of Governors had approved
the appointment of Donald Rogers
as
Assistant Vice-President in the
Auditing
Deoartment.
The Commercial and Financial Chronicle ..: Thursday, September 4. 1952
18
(824)
Continued from
Continued from first page
provision has been made.
first page
vestor is in
The in¬
position to take ad¬
a
vantage of the opportunity.
such
no*
perpetuate semi-socialism, but it is the simple
the sooner it is recognized and faced the better
Dividing Portfolio Into
"
Aims
Four Major
(1) stable
and liberal income, (2) piotection
tor principal, (3) growth of principal, (4) occasional profits.
5Vz in 1932, 45 in 1937, 26 in 1342,
56 in 1946, and 41 in 1948. It sold
at 102 last'year. The present book
value is about $25. It is certainly
worth a good premium above the
will
book value but we think it is too
The
jor
truth and
for us all.
plan should have four ma-
These
aims.
While
are
yield
income
the
with business conditions, the
logical first requirement for. this
fund is as liberal, and stable an
only is all this political talk about an "expanding
economy," pure poppy-cock, but it is a sheer waste of
breath.
Nothing in this world but government interfer¬
ence with natural forces can prevent us from growing or
income
There
times when recession
are
will
in-
lower
force
there are times when
little lower return
temporarily will be good business
in order to accomplish the other
aims.
Most of the time a good
and
come;
accepting
Nothing has kept us from
doing so in the past. We have moved ahead despite gov¬
ernmental bungling, and political meddling,, particularly
in the past decade or two. We shall doubtless continue to
do so in the future despite whatever handicaps are im¬
posed by the political humbugs and the popular spell¬
binders, but we should move ahead faster and more surely
a
be obtained.
Further on we suggest a plan,
yield
can
includes,
which
that will
of
for
dollar"
conditions, depending on
proportion of reserves.
Protection
for
principal is a
In
that
moderate
as
The
thing that
to block full acceptance of this
which, at all events, prevents action
seems
second aim for the fund.
We can hardly place it first because maximum protection for the
take from him who hath
like to
In
defeating.
too
Government
battled farmer
elements in the
the veterans,
of
expense
some
population. Much the
paid
was
protection for
principal against both inflation
and deflation,, and to do this and
to get
kets
market
of
prices
of government,
regularly demand
either direct
the remainder of
feet and
are
able and
willing to stand
on
their
„
hear
we
so
much these
days.
There
are a
as
incentive
than
taxation. is> useless
nf
o
in
also
to
want
profitable at
Another
is
ernment to
in such
a
some one
that
else's
effort
expense
a
alter the flow of the
way as
nosy
output of the
or
of
anyone
We
ing
will lay. the basis for
America
the
1
^
2
-
-
have laid the basis for
other of the notions which
truth.
ber
a
are
depressionless society is
what is
a
can,
as
redistribution of the output of the
are
we
just politic
and be strong—
securities such
clients
to
tell
as
it
us
com-
their
reduce
is
not
common
come
mar-
ents
have
duce
We
needs.
to
make
them
to
these
urge
every
clir
effort to
re-
least
at
50%, even
though it may be necessary to
augment income by use of part of
;.v
strong
some
because ,the
economy, but most of the evidence
points to lower price levels somewhere ahead.
stocks
continue
feels like buying when
are
by
to
For secondary reserves we sug-
cheap,/gest medium quality higher yieldr
adjusting
good tim-
proportions
is
of
very
good
corporate
bonds and
quality preferred stocks.
ing
convertible prer
At this time
ferred
stocks
tractive
carticularlv
are
at*-
threat of
of the
because
important to the success of our further inflation.
In purchasing
such issues we suggest: (1) average risk or higber quamy grade;
(2) J
nav
onlv
verv
close
call
to
management
and
that
tool
to
than, 15% of such funds in, one
lndustry nor 5% ln one company,
have listed
Profit-taking
achieve
aims,
the
Constant
second
of
the
portfolio holdings is also an obvious- necessity. The diesel locomo-
for,
protection
supervision
-
the 4
business,. t^ieyis on^ cuuse?
principal value is protected.
If £reat upheaval in the- e tertainpart of the proceeds of the-profit mmt industry, manageme ts slib.
taking is held; in price stable re- * behind in the: competitive race,
serves
in
big
bull: markets
the cash is
to good
provided to buy
advantage at lower levels,
thus aiding
growth of principal.
Securing Success of Plan
To
basic
insure
for the
success
investment
policies
plan,
should
include:'(1) good timing, (2)
lectivity and diversification,
constant
mon
we
se-
(3)
supervision, (4) patience,
have
market
for
fluctuf
price
divldS^paytog rec* ation; W Pay only a reasonable
have been sound.
premium over the ' conversion
To-doubly insure participation value for the conversion privilege;
in 'the good things ahead and to (5) good prospects for the mduscontro1 risks, we also suggest rea- try and company,
By "freezing" some of the high
values
nensate
0
we
growth, of. principal.
As
grow
due the politicians'
or
;
and will continue to
thanks
the business cycle—
But whether economists
cians, they are wrong.
We
a
have learned to elim¬
we
commonly known
economic system.
no
num-
reputable economists who of late have taken
partly at least by
but
an-
quite contrary to the simple
definite stand to the effect that
-
less energetic,
We have been surprised and shocked at the
of
inate
or
feasible
common
aipi
profits.
third
and
and increasing those of the less fortunate
we
the
and
by curtailing the incomes of the wealthy
in sec^-
35%
and 35% in varil-
stocks
the extra
on.
period
As the fourth
is
More Nonsense
reserves,
^
further -orooress
Uie drawing boards and in
on
occasional
abundant life for all.
mon
gome
Obviously,/ selectivity
"
by the "underprivileged" in the mistaken belief'.that this
Claims that
are
ahead" We llf speak »nably wide diversification of
stock funds.,
A. rough
Lto4on1"1"® °f PUrChaSeS 3 Uttle rule'of thumb is to place not morein
economy
;
primary
ondary reserves
able type
have
suggest insuring
ls
should be able to count on growth
to increase the relative amounts received
a more
in
it
H- grow
the^orential
now
gov¬
r
'
currently- recommend-
are
ing 30% 0f the portfolio value be
thfJ wm reserves- We discuss reserves a
httle later
can
to do what is desired.
paternalistic and
we
not
low
r
takes
probably
of this will
nvMppt
thetesttubesof
by
*
stocks.
hK plan., .Industries^ and;yindividual.
There- comBames that have' better than
grow,
mere
average
prospects must be per-
see
a
"XThb-d aim"*
1S 3 rea~ sistentl.y searched;.,,#it. At the price to avoid loss by caU; (3)
Thi.can
he achieved! by
tnnri
This
be thieved hv good '?ameJlme we rtust:t».sure there reasonably liberal yield- to comi
abie
rather
politicians would like to have done,
policy
stocks
cash to
nniv
*«£
aLo want
second^
produce
For
primary
reserve
invest—
rise rnents we suggest insured bank
temporarily after they are sold; savings and Savings & Loan Assoand
the
urge to • buy when the ciation deposits, U. S. Savings and
market! is booming is almost un- short-term U. S.
Treasury "marcontrollable.
Likewise,
hardly ^et" bonds.
un¬
general truth.
destructive
some
will
^
more>
rampant.
determination
possible,
helpful—that is taxation designed to make it costly
not to do what the
-
and
This
protect and increase income in the
usually hear referred to
we
.
big dc
extent
want to have
we
wJT;*
number of corollaries to this
is. this: What
the
to
sound.
is
.
,
th/v^r^^ table. All
the bargain tThii00aU
Indeed, they
willingness to look after themselves.
One of them
..
,
.
want to avoid
we
value
m
situation
basic
.
But
they will contribute nothing to that economic strength
likely to detract from it in proportion to their
are
own
produce enough to give them what they want,
about which
of
principal. Much, of the
fluctuation can be ignored
the
and
then
deal
good
a
for
price
if
all these others
42 in
will
Therefore
tion
Unless the farmer and
us.
to
thought must be given to protec¬
types of legislation which make it possible for these groups
to prey upon
1929,
in
these^reserves.
advocate
that
for
get along
reversing this proc- the profits
■
by some reasonable profit takWe
are' recommending these
jng at higher market levels and conservative proportions because
putting some of the money "on the the market is in its 20-year high
shelf» for good use later on, when ievels
There
are
many
inflamany
m0re
income; producing tionary factors still latent in the
274 today.
indirectly by various
or
381
to
to
We suggest
1932; 194 in 1937; 93 in 1942; and
and all too frequently obtain from govern¬
assistance
ment,
1921
therefore
difficult
better vield but will be materiallv
A
m
is
investor
reserves
usually
they
_
now
high
it
the low yield on
ary
m^1-C^
by t e Dow-Jones sharesdollars.be bought with the
can
Industrial Average, swing from
same
t
large
ess
stocks,
common
was
income
form,
20-year
present
levels
63%
a
primary
reserves are
stocks to this extent because of in-
because
thusiasm
the
We
bought at higher levels when en-
Many of us have witnessed the
the aged, the monopolistic labor organiza¬
tions and all the rest of those who
on
.
low
shares
22
investors do
cash to buy in
much
stocks.
common
extra
$1,900! This is
Many
the necessary yield we have
to deal with
is true of
the
could have bought
the same $3,000.
tile $3,000 for
on
the
jn
market
Octo-
But at
These
emergencies and
in-
reserves
as
shares alone.
more
income and
principal were not so difficult to
in one package.
Now
we
have
to protect the
other element
same
and 7%, and the
stable in value,
6%
gain
obtain
is self-
process
the
over
bonds
to- the aid of the em¬
can come
only at the
this
even
for
shares
75
worth
risk
and
$3,000.
year you
Today
liberal
producing at the rate that he would
far, however,
of the
be
dollar
consume-.
Carried
or
is not
or
must;
for
Pont
taken to
producing and give to him
is
or
an
short
May
between
get the necessary return,
the
old
days when
good
Reasonable
3%.
five
be
the
on
buying,
the standpoint
However, when
could have bought 53 shares of du
require investwould yield only about
ments that
in
163
to
cents
needed.
From
of good
buying it would be best to have
At the high of that year you
ber.
would
principal
212
months
logical
fully consistent with it—is the hope and belief of this,
that and the other minority group that it can somehow
"get something" out of a kindly government or admin¬
istration, and the belief on the part of the "practical poli¬
ticians" that they can get something for themselves by
promising these pressure groups all sorts of things. Nov/,
no one can deny that it is possible for the government to
who hath not
from
for
reserves
good
Jones Industrial Average dropped
the
"100
whenever
are
the Dow-
year
sec¬
reserves
at
for
decline
market
a
relatively
as
1946.
\n
in
be
can
even
com-
as
reserve
bargain prices
should
Primary
beyond good buying prices,
In addition to good timing^ on
purchase of individual stocks there
is the general market level to
watch.
One of the great attractions of common stocks is the fact
that every so often they can be
purchased at bargain prices.
To use du Pont as an example
again, let us see how advantageous
present
backs,
available at
up
this
the
the
available
under
5%%'
to
of
into
portfolio as prices
reach- higher levels- and reversjng the movement when stocks are
Many of the other so-called
strong; reserves,
5V4%
tions
such
securities
stocks
mon
"blue chip" stocks have also been
yield an over-all return
about
We advocate moving funds from
variable
purchase
advantageous
high
now.
bid
possible.
as
conditions
becoming increasingly strong.
portfolio into three parts: prireserves,
secondary
reand variable type secu-
rnary
88?
On the basis serves,
Qf the present stock it has sold at nties
at
today
buy
Not
axiomatic truth—or
applying
of
purpose
these policies to achieve the aims
the plan we suggest dividing
investEu Pont would.be a good stock
growth, to have in an.y list, but is it a good
plan and extreme care in
ing for income and sound
A Waste of Breath
i
the
For
of
vary
if this load could be removed from our
Parts
Three
Income and Sound Growth
growth. Government is powerless
either to effect such growth or to incite it—except bv
administering an even handed justice and then getting
out of the way so that private initiative and individual
energy may have full play. Acceptance of this elementary
principle at once condemns many of the proposals of the
politicians and very nearly all of the New Deal and the
Fair Deal. Such an idea is poison to those who wish to
be,
can
for
Investment Planning
See It
We
As
to
stocks that
deal
with
ranger
market. price, good
chases is essential.
com-
widely in
timing of pur-
'V
.
Weyielding anthe following isbelieve average of 4.80%,
sues,
meet
these
time:
requirements
:
.
this
at
..
Approx.
price
—
Holly Sugar 5%
Public Service Elec. &
Gas $1.40
_
^
Yield
5.30%
V..'
;j,
28
pref.com. 27Mi 5.10
53
Gen- Telephone'4.75%
Texas East
Transmissionr 4.75% —_ 100
Heyden Chem. 4.375% " 96
-.
.
h1
"ii-nn
4.40
l\.\
4.75
{
4.55
f
and . government regulation, may
In
the portfolio we suggest good qualcoming years especially, the new ity common stocks, Although the
technologies and discoveries may market in general is kbits historieasily change the outlook: for a call.v high levels there are many
strike
anywhere
next.
. issues
available at attractive
The fourth policy, patience, can prices.,
.
; ;
be one of the most/rewarding df
In selecting common stocks we
all. To some investors•, it lacks suggest
the. following requireglamor, but actually it is very ments at this time* (1)-good qualshrewdand can pay -off hand- ityj' in view.* of> the high- market
whole Industry.
levels, (2)- liberal yield: (3.) reqand sonablfe price in relation-to former
conditions arrive for, which price ranges for the stock and the
somely. The law. of action and res-
action
the
eventually
operates
Volume 176
Number 5148
.
.
The Commercial and
Financial Chronicle
.
vo OJ )
general
market,
price in
relation
(4)
to
reasonable
As
to
the
other
requirements,*
earnings,
(5). the average of this list
shows the
to yield is 7
Vz %; the current price
book value, (6)
ample earnings is 32% below the
1946 high, while,
coverage for the current dividend
the Dow-Jones
Industrial Aver¬
rate, (7) good dividend paying age is
30% above the 1946
high;
record, (8) good growth in book the
price is only 8.5 times earn¬
value over the past several
years,., ings; the price is
slightly under
(9) evidence of past growth by the
book value; the current divi¬
stock splits, etc., (10) better
than dend was
earned 1.6
Jimes in 1951
average
prospects
for
industry (and interim
earnings are satis¬
reasonable
price
in
and
company.
We have not included
that is often thought
of
factory);
dividends
have
continuously for 37
is,
little
the
or
common
debt
no
stock;
since
opinion the debt, if not ex¬
cessive and properly
used, can be
an
advantage
stock
from
growth
to
the
or
Pullman
do
point
not
Aviation
for
qualify
but Pullman
retiring stock; and we
to forego this feature
not the bor¬
and
the
is
are
willing
on
Bendix
reasons
men¬
tioned.
money is being skillfully
soundly put to work.
(In
opinion
our
common
stocks
the
As
following
meet
these
re¬
price
Chain Belt
Island
ment,
store,
Pullman, Inc.
Nopco Chemical
American
Western
All
anead.
8.3'
and
risk
quality
the
companies
aggressive
management,
there is strong emphasis
uct and market research
8.0
5.7
because
grade
of
and
velopment.
rated
are
than
period
have able
7.3
Applying
av¬
our.
except
prod¬
on
and
de¬
current- recom-'
mended portfolio
proportions and
the average yields outlined
above
Aviation.
cluded
better
in
7.0
Although it is
speculative, this issue is in¬
rated
prospects
The
54
issues
and
railroad
50
Supply
Aviation
Bendix
coal,
57
___<
these
erage
industry
21'
Tobacco
Auto
Bendix
average
9.0
42-
requirement,
for
think have
we
8.4%
Coal—33
10th
equip-*
chemical, tobacco, chain
and
electronic industries,
which
Yield
37
Creek
the
machinery,
Approx.
Issue
to
company, the stocks represent the
quirements at this time;
yielding
an
average of 7.50%:
to
$50,000
a
would
exceptional
growth prospects.
get
5.20%
investment
over-all
an
follows:
as
list,
we
return
of
30%
Primary
$15,000
@3.00%
$450
Secondary Reserves
17,500
840
35%
@4.80%
Common
17.500
@7.50%
1,312
Stocks
100%
$50,000
For
those
investors who feel
25%
Primary
25%
Secondary Reserves
Reserves
Common
have
and
and sound
its
as
growth
aims:
The
basic
investment
occa¬
(b) selectiv¬
(c)
supervision, and
(d) patience.
tools
for
last
con¬
but
achieving
these
aims and policies are
adjustments
in
the
three portfolio
primary reserves, second
and
Pierce, Fenner
will also be installed
San Antonio to Meet
at-Large to
the
club's
executions have been the
of
as
John D.
Williamson, Vice-Pres¬
Chairman
the
Group, Investment Bankers
ciation, will address the
"The
on
Activities
and
Texas
Asso¬
group
Benefits
of
Investment Banking Organiza¬
tions."
Also, the
retiring
dent
Investment
of
Eithel
Evans,
and
Presi¬
Women, Miss
retiring
other
officers will report on the educa¬
tional
and
fellowship
carried
the
out
past
to
by
year.
ceremony
gifts
and
activities
club during
the
The
installation
presentation
their
sion
new
Meeting
6:30
ot
new
Mrs.
St.
in
be
held
the
on
the
Annual
Sept.
Tapestry
Anthony Hotel.
officers
to
be
occa¬
Dinner
9,
at
Room
Other
installed
are
Lorene Robbins, of Bache &
Company,
and
to
p.m:
the
President
the club's
of
as
First Vice-President
Education
as
whereas in others
cases,
leading issues in the market for quite
to
have
some
attraction for the 2%s
of
1958
in
limited
Market Continues Under Pressure
The
Government market continues to back and
fill, with
activity still on the limited side, because there is no clarification
yet of the many uncertainties that go along with the tight money
policy of the authorities. Whether there will be changes in the
existing course of events, will mostly likely be determined by the
increase or decrease on the
inflationary pressure. The trend of
business conditions, it seems, is
going to be the determining factor
in the future level of interest
rates, and the
In
CHICAGO,
Fenton
with
On
Thus it
lins & Sons, Inc.
Richard Gibson Joins
Francis I. du Ponl
(Special to The Financial
LOS
ard
members
of
the
club's
to
Advisory Council, who are Arnold
J. Kocurek, John
P. Henderson,
Joseph Rubin, William C. Porter,
to
seems
Gibson
inflation symptoms or potentials
of pressure with the
future level
of
are going to become full
grown
passing of time. The answer to this,
interest
rates
should
not
be too
coming.
ston,
Investment
Women
of
tonio.
San
du
asso¬
Pont &
&
Hughey
was
with
Mr.
WaL
Goodwin
&
Co.
and
In
the
officer of Laswell
an
& Co.
Edgar Romans Now
With Merrill
(Special
long in
ST.
to
Financial
PAUL, Minn.
Romans
with
The
has
Lynch
Chronicle)
Edgar D.
—
became
associated
Merrill
Lynch, Pierce, Fen¬
& Beane, First Natiohal Bank
Building. Mr. Romans was for¬
merly
an
officer
of
Shepard,
ner
Romans, Inc.
of the eligible obligations, with the
longest maturity in this
grouo iust about where it was at the close of
1951. The 2V4S of
1956/59 are selling at levels that are below
those at the finish of
last year. The same is true of the
2V2s of 1956/58, and nearly all
of the shorter maturities of
Treasury obligations. As for the in¬
eligible bonds, prices are just a shade above where
they were at
the close of last year.
This minor price differential in favor of
current quotations compared with
those reported at the
end
1951,
G. F. Beal Elected
Gerald F.
Beal, President of J.
Banking
Corp.
and
Schroder
Schroder Trust Co., and a director
Schroder Rockefeller &
Co.,
of
Inc.,
of
has
the
been
elected
Board
of
Chairman
International
Railways of Central America.
had been
He
director of the railway
company since 1935.
a
of
not
continue long, because a return to lows
of 1952
these bonds below the prices that were
prevailing at
the end of last year. The
partially exempts have been no excep¬
would
may
carry
tion to the rule, because
they have also gone the way of all
flesh,
with prices now well under those
shown at the close of last
year.
It seems to be the same old
story all over again, it does not take
too much to wipe out
gains whether they be in Government bonds
U. S. TREASURY*
STATE
equities.
and
Nil
MUNICIPAL
SECURITIES
many
when
this
was
an
money
important point of consideration when
tightening policies of
especially with its effect
An¬
I.
formerly
Hoffman
past he
ing policies of the
the
banking firms whose
employees are members of
become
Prices at 1951 Year-End Levels
And
likewise, there
price differentials that bore out these
contentions.
investment
has
Francis
was
Hopkins,
as
forces
times
other principals of
Chronicle)
Calif.—Rich¬
the
making investments in these securities.
Edward H. Austin and Edward H.
Keller and
Gibson
Co., 722 South Spring Street.
portant force in the market,
especially from the standpoint of how
much it added to the attractiveness
of the eligible
obligations com¬
pared with the restricted issues. To be
sure, there have been
new
ANGELES,
F.
ciated with
so
though the flexible, but limited changes in
.interest rate policy of the
monetary authorities cannot be a cureall for the
inflationary pressure if they should get too strong.
Also, there is considerable question whether many of the so-called
the
W.
associated
was formerly
the
Trading Department of
Ames, Emerich & Co., Inc., and
prior thereto was with E. H. Rtol-
financing needs of the Treasury.
be.
become
in
words, the demand for credit evidently is going to
have great weight in setting the interest rate
pattern. When busi¬
ness is on the
upswing or under the influence of inflationary forces
as it is
now, rising interest rates can be expected.
On the other
and
has
Chronicle)
Arthur
—
Rodman
other
that
111.
changes. Mr. Fenton
availability of credit,
and not the
Fenton
(Special to The Financial
& Linn, 209 S. La
Salle Street, members of the New
York
and
Midwest
Stock
Ex¬
amounts.
upon
the
the
monetary authorities,
commercial
bility factor, and its importance price-wise and
were
However, with
and
banks, the eligi¬
as
a
market force
seems to have
Chairman;
Mrs.
largely disappeared for the time
being.
Cecil J. Cox of Columbian Se¬
Pauline
Johnston, of Rauscher,
curities Corporation will be host
Pierce &
Co., as Second Viceto a cocktail hour
President
and
Social
Rejoins Cruttenden Co.
preceding the
Chairman;
Joins Fairman & Co.
Mrs. Carol Clift, also of Rauscher, dinner meeting, as a special com¬
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
Pierce & Co., as Recording Sec¬ pliment to the club's retiring offi¬
CHICAGO, 111.—Godfrey ReinLOS ANGELES, Calif.—Milton
cers and
officers-elect, and invita¬ hard has
retary:
Mrs. Rose
Parkhill,
of
rejoined the staff of R. Aronson has become
affiliated
Lentz-Newton & Co., as Corre¬ tions have been extended to all Cruttenden &
Co., 209 South La with Fairman &
members and guests who will at¬
Co., 210 West
sponding Secretary; and Miss Ann
Salle Street, members of the New
Seventh Street, members of the
tend the dinner meeting. This will
Legleder, of Russ & Company, as
York
and
Midwest
Stock
Ex¬ Los
Angeles Stock Exchange. He
Treasurer.Mrs. Mildred Dearing also be held in the Tapestry Room
changes. Mr. Reinhard has re¬ was formerly with
Gross, Rogers
of
Austin,, Hart & Parvin, and of the St. Anthony Hotel and will
cently been with A. G. Becker & & Co. and prior thereto was with
Miss
Peggy
Rose
of
Merrill begin at 5:30 p.m.
Co.
•
Edgerton, Wykoff & Co.
Arthur W.
a
What has happened to the
eligibility factor in the Government
bond market? Considerable has been
written about this as an im¬
special guests of
club, have been extended
women
some
Eligibility Factor's Influence
by
Invitations,
the
continue
or
of
officers will be
Miss Loraine Hislop, of Dittmar & Company.
oiga iv—ureK
no
in
reason.
spell now, since the limited flexible interest rate policy of the
monetary authorities seems to have put the whole market in an
uncertain position.
Commercial banks here and there, however,
retiring
conducted
the
answer
maturity buying has been the
so
Company and
Company,
shorter end of
ably
of
Kocurek,
in the
powers that be, has given up about all the
prog¬
it made price-wise since the end
of last year.
This is notice¬
current
&
modest amount of business
ress
ident of Dittmar &
Rauscher, Pierce
a
list, but this has been mainly for the investment of surplus
corporate funds, according to reports. Some of the higher yield¬
ing Treasuries have been taken on by pension funds of both the
private and state variety, but in not large amounts. Scale order
Executive
as
Beane,
ment Women of San Antonio will
Olga
for
Members-
&
install
Miss
measure
the
reserves,
Board.
ANTONIO, Tex. —Invest¬
small
no
The Government bond
market, because of the money tighten¬
Lynch,
Inv. Women of
there
up
stocks.
common
because
Central Banks would lose most of their
effectiveness.
$2,850—5.70%
diversification,
indecisive
by the pow¬
other hand, if the level of interest rates is
high that the deposit banks find it more advan¬
tageous to sell Government obligations in order to create
required
reserves, .the credit limiting and
anti-inflationary policies of the
least
The
quoting
allowed to go
sections,
policies
should include: (a) good
timing of
SAN
"
purchases and sales,
ity and
movements
restricted and this is responsible in
are
there has been
ers
600
(2)
(3)
income,
principal,
for
growth of principal, and (4)
sional profits.
is
1,875
stant
price
Commercial banks in order to get needed reserves have
been bor¬
from Federal. This is an
important phase of the program.
As long as interest rates do not
go too high this will no doubt
be continued and control of credit will
be maintained
$375
@4.80%
not
with
a
rowers
follows:
@7.50%
(1)
liberal
protection
as
@3.00%
$50,000
ning for income
stocks
common
25,000
Stocks
Summarizing, investment plan¬
should
in
12,500
100%
stable
50%
$12,500
___
be
to
of success in the past.
However, there are certain limits to such a
policy because if carried too far, it can defeat its own
purposes.
$2,602—5.20%
these yields would produce 5.70%
necessary,
50%
that
jumbled and defensive Government market is still
time
hand, if business activity should turn
down, lower rates of interest
should be expected. This so-called limited flexible
interest rate
policy of the authorities is not new and it has had a fair amount
r
■
35%
Reserves
rather
There have been
good ' prospects
Rodman & Linn
and down of prices, with very little of importance
trend-wise attached to these quotation movements.
To be sure,
rowed
and
Governments
on
period of waiting for developments in the money
tightening policies of the monetary authorities. Volume and activ¬
seems
ity
the stocks have -been
Aviation
A
marking
the
88%
Reporter
By JOHN T. CHIPPENDALE, JR.
been
increased
times.
the last
on
common
standpoint
of
earnings.
We think
and
1.3
Bendix
the
the test is whether
1941;
split
In
our
has
Our
.years;
item- paid
one
advantage-, book rvalue
This
ous.
ahead
Arthur W. Fenton With
relation
■
,
Aubkey G. Lanston
& Co.
INCORPORATED
15 BROAD
.■»
(
i
i'
ST., NEW YORK 5
WHitehall 3-1200
231 So.. La Salle St.
CHICAGO 4
ST 2-9490
45 Milk St
'
BOSTON 9
HA 6-6463
Chronicle
The Commercial and Financial
20
4, 1952
Thursday, September
...
(836)
to
Continued jrom
first page
cure
ation
alien¬
property
heretofore
scale
a
on
un¬
affairs.
known in human
is to point
this belief is in
That which I propose
out how erroneous
the nation as a whole
as distinguished from the separate
individual who may or may not
he better off as his personal af¬
respect to
Increasing?
Simply
shall also
point out the dangerous character
fairs
I
indicate.
may
underlies and
•of this belief which
and acceptance
prompts proposal
generated false concepts respect¬
ing the nature of wealth and its
Name,
creation and accumulation.
and government fiat have
accepted as things of sub¬
stance and
reality.
We are not
been
following the other
in quick succession as
the sup¬
posed wealth of the nation appears
to increase.
terms of
vain thing, the meas¬
intrinsic
value
in
to attempt a
of
urement
entries were
this standard
medium of exchange and lawful
unit for the measurement of value.
of
all
obligations including those
to the government itself. As
if
that
outstanding
the
all
If the unit is changed true com¬
parisons
re¬
are
And
for.
called
that
as
long
here
for it what he could.
is
the
end
result.
In respect to
ures
is not different when
multitudes
the
Yet
principle
It differs only
same.
is
in the
the
com¬
plexities of its application. Should
useful only in
of
dimensions
area
easily understood
respect to the unit of
in
value.
war.
The labor ernment, having established an in¬
people and the trinsically valueless thing as the
lawful unit for the measurement
wear and tear of the entire indus¬
trial and carrying mechanisms of of value and medium of exchange,
or
weights and meas¬
or
seems more
than
gov¬
a
land
or
this
vator.
It
except
impossible
cult
must
mediately destroyed, given away,
and
values
through necessary and often diffi¬
accounting adjustments.
as
the
thing. Depending upon fiat, and
You will not question that in that alone, the worth of the dol¬
the prosecution of the
war and lar, our standard unit of value,
the
implementation of
postwar changes irregularly and without
recorded
become
return
practice continues each leceipt
become progressively worth
There are
From every section of the country less and less in grain.
were transported
material things more and more receipts outstand¬
of tangible value assembled for ing but no more grain in the ele¬
to get
And
of
calculations of profit, loss and
true
to be ratably honored
each must receive less grain than
ceipts
fabrication into articles to be im¬
I
of
terms
apparent.
Plain enough now isn't it
away.
intrinsically valueless
an
in
made
ele¬
an
used as money.
bookkeeping
All
in satisfaction tional receipts for it. This addi¬
tional grain he destroys or gives
it must be accepted
owner
practice by gov¬
the people are compelled
Because of this
tion of money was
it required and spent
people to suffer from this of or
We are merely one of to its present and future worth,
many now laboring under it.
In the government assumed neither
the fateful repetitions of history obligation nor responsibility.
It
it is unlikely that we will be the was left to the present or future
last.
Assume
capable cf per¬
important func¬
all
the
forming
strates the truth of that which has
just been stated.
value.
thing of intrinsic
a
In short a thing
preciation is accentuated.
Still
clear enough is it not?
Here is an example. It demon¬
delusion.
ernment
programs one
factions,
described as
and the end result.
stated,
the additional
wealth, as in case of
international bene¬
the rapidity of the de¬
and great
the vator filled with grain. Ware-' All obligations payable in money
house
receipts
are
outstanding
government secured by printing
were
made in terms of it. Once
upon paper the statement that the against all of this grain. Notwith¬
established, the importance of ad¬
standing
this fact the elevator
paper constituted money, and de¬
hering to a standard unit of value,
owner
continues to accept addi¬
creeing that it must be accepted
and
the difficulties which
must
tional grain and
to issue addi¬
as
legal tender. This meant that
arise when the unit is changed are
the first
spending
of vast and unwarranted
has
practice
This
benefactions.
form,
war
monetizing the government's debt.
Our interest is in the character of
this money
with
nation's real
it se¬
the additional money?
The
money
uncompensated
far
was
did
How
sufficient.
method is technically
Our National WealthIs It
this
But
individuals.
from
the
of
area
duced
known
by
farmer
as
law
would
an
acre
be
re¬
one-half no
he now has
by
say
immense quantity of notice. Yet for purposes of meas¬
twice as much land and hurry to
value, ^ and
material wealth, as¬ uring
ascertaining the country went into the process. inaugurates a practice of printing
such money for its own use and equip himself with additional ma¬
profit and loss, this unstable and The major part of that which this
sembled, fabricated, and trans¬
And
vast effort and sacrifice produced with it purchases things for de¬ chinery for its cultivation.
ported by the highly paid effort changing unit is assumed to be as
he
would deride the suggestion
over a period of
years no longer struction and foreign gifts.
of tens of millions of persons, was fixed and permanent as the links
As the
exists. Among the possessions of
practice is continued, that his production could now be
destroyed or given away. Natural and chains of the surveyor or the
rule and square of the builder. It the people, where once were to progressively there comes into cir¬ doubled. If the lawful unit, the
resources, ores and metals, oil, gas,
be found desirable things of in¬ culation more and more of such foot, were reduced by one-half,
coal, timber, sulphur and chem¬ is this spurious assumption, ad¬
merchant
or
warehouseman
hered to in our accounting despite trinsic value, one now finds paper paper money, each unit entitled to no
icals, even the fertility of the soil
were unsparingly consumed.
knowledge
of its falsity, money or obligations payable in be ratably honored from a dim¬ would presume that twice as many
The fqll
such money.
supply of purchasable square feet of space, calculated in
This paper its own¬ inishing
destroyed things no longer exist. which has led us and still leads
The inevitable result is terms
ers
cherish and treasure because wealth.
of the
new
unit, would
That given to foreign governments us into grotesque error.
as legal tender it is worth to them
that
the purchasing
power
and double his area of operations. Nor
up longer forms part of our na¬
some ratable
III
part of the nation's hence the worth of each unit of would a manufacturer assume that
tional store.
policies,
an
nation's
the
Neither
will
statement
that
and
of the individ¬
full
a
the
on
record in the
of
of
alienated things
nothing of their disappear¬
that
ance,
suppliers
corporate
these destroyed or
reflect
value
of
terms
the asset accounts
ual
the
question
you
in
they
contrary
aggregate the receipt
equivalent in value plus
profit for everything supplied and
they record
question that
well
the
as
billions of
profits, and ex¬
of
payment
dollars of income,
profits taxes upon the income
cess
and
Nor will
service rendered.
every
you
profits presumed to have been
tecured by owners in selling
things
to the Government for immediate
destruction
alienation.
or
things and services.
standpoint of the
such
intrinsically valueless money
another unit of production of the
certainly as subtrac¬ numerical dimension of his pres¬
entire people, to
consider it to tion is subtraction and division, ent unit calculated in terms of the
be wealth is a pure illusion.
This
depreciation
in new foot would double his capac¬
It division.
paper.
To an owner it has worth
does not constitute wealth. It does true worth is factual not imagin¬ ity.
And it is plain that no one
not because it is a thing of value,
not represent wealth produced and ary.
capable of elementary reasoning
as in case of minted coin, but be¬
in existence.
It represents only
would accept as plausible a sug¬
VI
cause
decreed by government to
an
indebtedness
of the govern¬
be legal tender. This is worth by
In
business
accounting
the gestion by government that his
ment incurred in the purchase of
property taxes should be doubled
fiat and that alone. It is variable
property of an individual or cor¬
wealth long
because the government had re¬
since destroyed or
and unsettled depending from day
poration is not entered upon the
duced the units of weights and
In consider¬
to day upon the policies and con¬ given to foreigners.
books in kind, item by item. On
measures
or
areas
by one-half.
duct of government and the con¬ ing the total wealth of an entire
the contrary books of account are
These things admit of visible cal¬
people paper money can rightfully
fidence reposed by the people in
be assigned no greater value than kept in terms of values. Although culation and are readily compre¬
the edicts of the government.
It
property may be broadly classified hended.
is capable of complete disappear¬ any like tonnage of similar paper.
as
to kind
and character, upon
From the standpoint of the peo¬
ance.
Many times the total worth
Comprehension comes more
ledgers and balance sheets each
ple as a whole that is its worth.
of such money by fiat has disap¬
classification appears only in terms slowly where a change occurs in
The
medium
lawful
country's
exchange and unit of value is
the
dollar.
It
is
irredeemable
of
For
peared.
than
more
purchasable
But
the
from
as
of value.
decade,
a
decreases
These values are of ne¬
following historical precedent, the
cessity stated interms of a com¬
who would be.free of the
beg you to reflect upon
mon
yardstick or unit of value
this most interesting and inescap¬ strated by its purchasing power great paper money delusion which
established by government for the
now
plagues a great part of the
been
able conclusion: Under our exist¬ has
steadily disappearing.
measurement
of
value.
I have
world
two
all important things
ing
monetary
and
accounting Present policies of government
stated this, not because I presume
must be borne in mind.
theory and practice should that point clearly to a continuance of
you to be unaware of it, but mere¬
First: The worth of irredeem¬
melancholy end be reached where this wasting process.
ly that you may the more readily
able paper money is such worth as
the last item of the people's ma¬
Yet this thing,
follow the sequence of that which
the worth of
the fiat of government can give
terial
wealth
shall
have
been which rests
follows:
only upon fiat or in-,
purchased
by
Government
and struments payable in it, forms a to and maintain in paper. It has
In the United States the stand¬
no
other. Its worth to an owner
destroyed or given away, the na¬ substantial
part
of the wealth
ard unit of value called the "dol¬
at any given time and place is
tion's books of account will record which the American
people be¬
lar" was established by specific
I
the
people
highest
worth
Can
as
whole
a
pinnacle
and
the
their
lieve
themselves
great
part
affluence.
its
and
War is the
destroyer of wealth,
creator.
have been
Few,
perhaps
destructive as
as
last.
Moreover, the material
given to foreign govern¬
disappeared from the
things
ments have
nation's
stock.
So
I
do
not
tate to suggest that when
wealth
gregate
of
hesi¬
the ag¬
people,
as
calculated from their books of
ac¬
count,
is
shown
a
have
to
to
it
of
demon¬
as
A
them
possess.
to
came
from the
something amiss here?
none,
at
dollar
this
monetary
of
it be doubted that there is
consumer
not
of
worth
now
grown
government in exchange
things of real and tangible
for
value
the
no
first
upon
longer in existence.
instance
someone's
equivalent
course
books
ownership
this
money
to
has
the
profit
which he parted.
Was
the
as
plus
of trade it
from
In
entered
was
value
in
of that with
the
it
In
passed
ownership.
irredeemable
paper
wealth? In its issuance did
government exchange wealth
for wealth?
Did it in this
manner
maintain the wealth of the nation
unimpaired?
did it do
their
of things destroyed or alienated a
accounting
practices
their
wealth must be shown to have be¬
come
continually greater
erty is purchased
and
immediately
alienated there is
and
as
prop¬
by government
destroyed
reason
more
on
than give suppliers
upon
Second: The wealth of
cannot
increased
be
tained by the
nation
a
main¬
or
printing and distri¬
If it could
bution of paper money.
the
richest
one
which could
ute
the
wealth
ited
nation
most
of
paper
only by the
Neither
purchasing
money
The
speed
of
the
can
lim¬
be
their
aggre¬
of a peo¬
in this manner.
power
ple be increased
paper
the
money.
nations would
gate purchasing
The
be
would
print and distrib¬
presses.
power
of
a
of all the
country
in
may
be
outstanding
can
never
be
greater than the value of all the
and
IV
from
II
individuals
and
cor¬
took to acquire services and things
of value for war and destruction
in
war
and
governments
for
gifts
can
to
it possessed
foreign
neither
be
bought.
distribution
will
of
The printing
more
paper
Standard
314
Annotated,
Code
Money
This
both
of
such money
is printed
placed in circulation without
more
and
cor¬
notwithstanding
a
decrease in the
of
and
Fi¬
unit
paper
the form of currency
known
debasement
money
a
inflation,
as
paper
ancient
usage
plays its part in obscuring the true
nature of that which is happening.
against
the
and helpless masses
unsuspecting
of the people.
purchasing power is attributed
natural
the
lawful
the
medium
of
ex¬
the age
of that word.
of
such
money
was
the great imposture apparent even
to the least observant.
VII
a
It
represented a thing of in¬
in trade in
world. Using
acceptable
the
of
standard
price
Governments
forces.
this belief by measures
gold or of paper against "profiteers." But in time,
gold constituted as the practice continues, the in¬
standard unit of value exorable force of truth renders
trinsic value. Because of this it
part
in
into
change. It was money in
was
and
followed by
of
dollar of
All
as more
substitution
the
encourage
which
It follows that
Unit
176.)
unit
enough is it not?
metallic
established
Title 31 Section 314 Page to
nance,
or
clear
of a long
standard and
ually by abandonment
Leaving the name and form of the
dollar consisting of
paper
medium
unchanged,
its
grains of gold, 9/lOths worth is reduced
by dilution. In
fine shall be the Standard Unit this manner a
portion of the sub¬
of Value and all forms of money stance of all
savings in money or
issued or coined by the United
obligations payable in money as
States shall be maintained at a
well as of wages, salaries, annu¬
parity of value with the standard,
ities, and pensions is quietly taken
and it shall be the duty of the
and
consumed
by governments.
Secretary
of
the
Treasury
to The force
applied is both invisible
main
such
parity." (See U. S. and invincible. For a time the loss
thing
is
Where the change
brought about grad¬
25 8/10ths
Each
this
in the unit is
The
Value.
purchasable things
exist.
ment of value.
ments
follows:
as
demand for the
of
read
"Section
long and true sense
not
,is,f that an illu¬ sufficient gold, nor metal of any responding increase in the nation's
wealth, actually nonex¬ kind, nor anything of real or tan¬ real wealth each unit must be¬
istent, has been created by the gible value to give in
exchange. come worth less and become pro¬
printing * and issuance > of irre-? A moderate portion of the cost it
gressively worth less as the out¬
deemable paper money by govern¬ secured from
the existing supply standing
issues
increase.
And
ment in payment for services and of
when increased issues are put out
money through taxation
and
supplies consumed in war and the sale of the government's bonds
sion
1934,
change this fact.
It merely results in increasing the
money
porations the government under¬
The explanation
more.
a
Factually this is what happened.
is the truth?
be exchanged
can
be
and
When
believe
never
can
remaining to their fellow citizens? that
for pause
us
and
convertible
call
or
j What is the explanation of this
impossible thing which our ac¬
that for which it
the standard unit for the measure¬
Thus, under cover of custom and
usage and a temporary sense of
act of Congress which for many prosperity, great frauds are pos¬
sible of perpetration by govern¬
years prior to midnight of Jan. 31,
ratable country's purchasable things. That
portion of the time and property is all there is to buy and that is all
transferrable
sober reflection.
count books would have
one
the contrary whatever fabulous amount it
greater, despite war and fabulous
benefactions,
and
when
under
Or
By
any
developed.
in
establish
in
its
a
failure
to
method for
find
and
reflecting
accounts, expressly enacted or
this deliberately calculated changes in
unit of intrinsic value a
structure
is
In¬
the
our
standard
unit
of
value,
that
system of accounting plays us
was
measured
in false. By this failure, a mechanism
thing of intrinsic value. devised to faithfully record the
Those who rendered services or truth respecting business transac¬
has
become
accessory
to
parted with property received for tions
It repudi¬
it a thing of intrinsic value. Those falsehood and deceit.
trinsic
terms of
value
a
who loaned money loaned a
thin?
of intrinsic value and were repaid
ates fact
and records fiction.
the purpose
For
of ascertaining profit
[Volume 176
Number 5148
.
.
The Commercial and Financial
Chronicle
.
(837)
and loss
that
capital gain it demands
or
cost
entered
in
terms
of
an
become obsolete in
service; of surplus accounts swollen upon paper
in defiance of the truth as
mani-
your
profits" taxes assessed and collected upon "excess
profits" which
lated and readily provable loss inflicted upon you by its own wilful act. Though visible to all the
expressly abandoned unit be compared with sales prices received fest in physical
plant and estabin terms of a unit expressly de- lished
price
levels; of "excess
creed to be of 40%
less dimension
.
than
that
abandoned.
is respect to
and
that
in
exist only upon paper and then
demands only because investment is
entered
segments of the in terms of one unit and
it
reserves
important
business
be
carried
on
make-believe.
and
Under
accepted and applied
methods of accounting that which
our
is considered to matter is that the
name of the unit of value and me-
•dium
of
exchange remain unalThe substance of the unit,
even
though diminished by express act of government,
is ig-
lered.
jiored.
Thus if
and
dollars of the
more
lesser unit
received
are
new
than
were
paid in the old and greater
unit a profit must be recorded and
iaxes paid on that recorded
profit,
Dividends are permitted to be dislributed from the surplus thus ereuted
and
is
ness
the
worth
deemed
of
the
to have
busi-
been
creased by that retained.
in-
Yet it is
•quite possible that in terms of real
-value the transaction
in
even
in
.
,
This
is
not
truth and
and
It represents
by
a
tance,
a
to
fact
of
measurement.
out, in
our
to
consti-
recognize
in
the
I
have
As
own
unit
of
pointed
the
case
and
impor-
supreme
change
extends
It
refusal
re-
under
the
deceived, and governments
aided in perpetrating the basest of
frauds upon the innocent and
un-
suspecting.
In its practice both
peoples and individuals are led to
and
consume
.stance
dissipate their sub-
under
false
a
profit and prosperity.
facade
of
Under that
false
facade the American people
today being led to the unwar-
are
ranted waste
and
consumption of
And what is to
be said
in
sup-
port of the practice of
regulatory
bodies which, while
calculating
substantial
rate
base
dred
portion
of
dollar
a
a
utilities
a
in terms of
cent
hun-
one
(original
cost),
demand that it accept
payment of
the
allowable 6%
return
in 50
cent
dollars?
Is
there
'
not
flout
reason
though both
were
and
fact
as
non-existent?
In concluding this letter I
proexamination of your own
pose an
position
of
as
individual and that
an
others
similarly situated. Do
tax returns, based upon your
your
accounts, tell the truth respecting
your real losses and gains?
What
to the year
of
Refusal
to
recognize in our accounting the truth respecting the
change in the standard unit of
value is
justified
upon the ground
apprehended in its
Will this justification
difficulties
•of
application.
be
considered
valid
should
the
•dollar shrink to 10% of its former
purchasing
is
power or 5%?
If not
because there is supposed to
it
.be
point
a
in
accounting
within
which false pretense is permis.sible, and a limit beyond which it
must not go?
yjll
V ill
I
•
If
v4.ami«7in
suggest for
i
thncp
those
iexamination
•ords
I
so
which
are
•
i
historical
historic
your
0
rec--
portrayed th
.fiscal
follies and consequervt political and social disasters of peo-
pies of yesterday
But it is
to go so far afield.
atieia.
necessary
•examination
of the record
of
un-
An
nn
of
the
times provides ample proof.
example, boundless prosperity
•Tind
-nnd unprecedented earnings are
As
books
und^^fnle^sg"D0oks
—jnr.nQ/4
Kir
obligations
not
been
creased?
value?
of
adequately
in-
Have these not suffered
decline
a
Or
or
pension or retireOr of your salary if it
ment pay?
has
itself?
government
rents
your
to one-half in real
near
Where has this lost value
gone?
Who
its
has it?
now
Is record
disappearance to be found
books? Why is there
your
record?
no
nponlp's
suggest
that
those
to
the
who
is
answer
intelligently
Seek it. By the indirect method of
expropriation
known
as
paper
inflation,
money
took
from
have
lost
Congress
your
that
you
and
which
it
Spent by government bureaus.
been
expended
administrative
tion;
in
waste
wars
this
re-
prosperity witness the un•ending
procession
of
business
jhouses coming to their stockhold<ers
for
additional capital funds
for "the replenishment of working
in
and
Based
money.
long
upon
belief that
paper
than
On
cal
any
can
tens
in_COnceived schemes and
ventures;
in
princely
unconditional
gifts to foreign governments,
certainly
neither
more
money to an
owner and its value in
reservoir
which
usage
nao
^aken
from
men^
others
nQt
rtrvxTAVM
by your govern-
y0U
have
now
back
cQme
it
tQ
liquid
tion the consumotion
pr0ceeds
tbat
while
more
come
into
nation
Which
upon
brings
upon
itself
nomic, and political disaster. It is
the high road to ruin and we
are
following it.
Joins
and
Baxter, Williams
,
—
Andrew
R- Field has become associated
with Baxter,
Williams
&
Co.,
Union Commerce Building, members of the Midwest Stock Ex-
change. He was formerly
linger,
Pe^ne & Scribner
Ginther & Co.
with
and
Wm. J. Mericka Adds
K.
it
yQU
Eldrige
has
staff
of
Wm.
Inc^
union
members
of
been
J.
added
to
the
Mericka
&
Co.,
Commerce
the
Building,
Midwest
Stock
With John B. Joyce
y°u each year under the terms of
dollar obligations are now worth
little more than 50 cents each in
(Special to The Financial
Chronicle)
average commodities. In many es— is
esAT—
sential
commodities
they
are
"
-
COLUMBUS, Ohio—Earl R; Sage
now
with
Jc;hrL
B<
Joyce & Co.,
Huntington Bank Building,
bers
That these things
are
Of all that saved
true you
or
of
the
Midwest
6%
to replace wornout or
plant and equipment for
no
adequate reserve has
or
excess
ible
be
nrovided
Reflect^ipon
the nature of earnings accounts computed without
adequate charge to operations for
replacement of that worn out or
your
reflected
death
m
estate
and
diminished
should not
the
loss
e
and
no
your
the
to The
Financial
Chronicle)
more
the higher
accordingly.
Wh y
equally certa
less painful loss show upon
books and
your
tax returns
,JT.
•
Thill
approximately
frequently
equity-capital-to-total-assets
were
excess
the tax in relation to
was
profits taxes incurred and
equity capital."
The elimination of the
excess profits tax on banks would
thus
an immediate
source of
equity capital where it is needed
most. Such action could
also give the
necessary incentive for the
sale of common stock
on the
part of
existing law.
Joins Coburn
MkkUebrook
(special to the financial
(Special
The Financial
Chronicle)
chronicle)
with
has
Coburn
become
BANK
&
and
associated
Middlebrook, In¬
corporated,
100 Trumbull
Porteous was
INSURANCE
Street.
formerly with
Shearson, Hammill
STOCKS
& Co. and Tifft
Brothers.
*
Laird, Bissell & Meeds
Schirmer, Atherton
Members New York Stock
Exchange
(Special to The Financial
Chronicle)-., i."
.
.MILWAUKEE,^- Richard
consin Av
earn
provide
With
(special to the financial chronicle)
taxes
able to
on
.
Mr.
With Lewis D. Thill
°
estate
are
HARTFORD, Conn.—James
With Hamilton Managemt.
(Special
study
on
invested capital
on
Porteous
would
this
your
profits taxes
This was the point
brought out in the Federal Reserve
study:
"A bank's
earnings come for the most part from the
investment of
its deposits and
only to a small extent from the investment
of its
capital. Consequently, a bank with
relatively low capital will
ordinarily have relatively high earnings in relation to
such capital.
As might be
expected, therefore, it was
generally true for all
sizes of banks
that, the lower the
Ex-
DENVer,
Colo. — Claude
J.
peay js now with Hamilton Manyour books and be deductagement Corp., 445 Grant Street,
for
income
tax
purposes.
Upon
Federal Reserve
second important
argument for a change in the current
law relating to banks is
that the excess
profits tax levy bears most
heavily upon those institutions which are in
greatest need of addi¬
tional capital.
change.
has been lost. Had you suffered
this loss in business it would show
which
the
including an allowance for debt, whereas
banks become
subject to excess profits taxes
when the return cm
capital reaches about 4%.
Surely a return of over 4% is not exces¬
sive just because it
happens to apply to the
banking field. Thus,
if treatment
similar to that allowed the
regulated industries were
accorded the
banks, few, if any, institutions would be
liable for
excess profits
taxes.
mem-
Stock
accu-
mulated in dollar obligations prior
to 1939 approximately one-half
upon
that
rapidly growing institutions.
Whether the effort on the
part of the bankers will be success¬
ful, of course, remains to be seen.
However, there is a logical basis,
as can be seen
from the
foregoing, for some modification of the
Exchange,
dollars gnd the dollars due
and ^ dollars due
"
is
_
Tbrougb the processes of dilution
§
P
l have described,
your
of
ratio, the
(Special to The Financial
Chronicle)
CLEVELAND, Ohio—Edward
point
The
(Special to The Financial
Chronicle)
CLEVELAND, Ohio
second
Companies in these industries
its
society. It
social, eco-
provide
The most that
will be continued in a
.
exist-
its
immediately
reduction.
the
commercial banks
completed in
June of this
year provides the
necessary information to support a
strong case for a change in certain
provisions of the present law.
Among some of the more important
points which may be
presented to justify
special consideration on the
part of the banks
with respect to the excess
profits tax are the
following:
Because of government
monetary policies, which control inter¬
est rates, establish
reserve requirements
and
generally regulate
both the
quantity and quality of credit,
banking in a real sense
can be
classified as a regulated
business. For this reason
banking
should be accorded the same
privilege as other regulated indus¬
tries such as the
public utilities and the
railroads.
t
'
gov-
debauches
debauches
of tax
existing levies
weaknesses, which, according to some
people,
large part responsible for the
case not
being effectively
year, have now been corrected.
in
impact
ence
money
tax
government.
buildup in military
'
from
calls
remaining
material relief in the
form
be expected is
that the
The
alienation
or
"f "hTrea^wS
what
in
v
increasing
Inflating
the
the
A greater
participation on the part of state
banking associa¬
tions with national
organizations will help to present
a
common
front. Also, Federal
Reserve and
monetary officials may be en.couraged to join in the effort
because of its direct
bearing on their
positions.
computing
wealth
with
of
Both of these
prosperity and profit must
flow.
likely that
of
consideration
needs
presented last
governments
alike
act
upon
it.
Thus prompted by a false
assump-
ovvaa
1---
of
seems
dominant
revenue
continue, the Treasury will operate at a
deficit.
Thus, regardless of who is
elected, existing military and politi¬
commitments, will make it impossible to
were
individual
and
it
score
the
country.
ernments, seeking to retain power,
nourish this belief and neoDle and
own.
*
vast
a
continually
nor wise
That which you
saved and supposed yourself to
lawittiiy possess has been quietly
lawfully puDdcoo
our
of
year,
•
the aggregate wealth of the
people
[s
unobserved. Thus the nation
ccmes to consider itself to be
possessed
next
It is towards this
end that the
commercial banks
through their
various associations
hope to obtain relief from the excess
tax law in the
profits
coming year. A similar effort was made in
the
previous session of
Congress but the drive was not
well organized nor
particularlywas
there sufficient data
available on the
impact of excess profits tax
on
the different banks
the
throughout
as
the
such
this
distribute it
remembered, however, that regardless
the
over
or
This does not
mean, however, that certain
inequities in the
present law may not be
eliminated when the next
Congress tackles
the problem
prior to the expiration of the
excess profits tax
on June
levy
30, 1953.
nation's real wealth,
The distinction between the
value
0f
provident,, nor honest,
than
to
This would"
fall desired to
manner.
slightly milder form.
ing things of real value, is of itself a thing of value and an
addition
be
expenditures to
money, which is no more
call upon a nation's exist-
a
equitable
must
legislation is likely to be the
whatever
money,
more
happens
mass
paper
a
It
character, is a thing of value,
feeling exists that newly created
a
corrup-
in the employment of
^ast
obsolete
hppn
of irredeemable
use
profits
excess
especially true if the Administration elected
this
heavy burden of taxes on corporations
..
<corded
capital"
the
and
of thousands of unneeded personnel. in unprecedented subsidies;
know.
with
in
pos-
One of the greatest of all
imposing the
excess
reduce the
being taxed upon
no longer receive
you
the law
as
present form.
be
real
essence,
Bank Stocks
profits tax expires
next
June, there is a solid basis for
expecting that the existing
provisions may not be
continued in their
self-deceptions is that created by
It
has
Yet
hand
Inasmuch
and your estate will be taxed
upthat which you no longer
be
over
worth much less-
in
true
you
to
gave
•government for unparalleled taxItion and prodigal expenditures.
hand
its
are
JOHNSON
in Federal income
and
taxes.
higher
on
^
j
^
our
•own
*yld?"Ce5
in-
apparent?
,
Do you shrink from the charge
have made and deem it over-
drawn?
paper money
became sharply
payable in dollars including those
clear
_
our
in which
year
Or of your savings in
paper
inflation.
money
1939, the
the effects of
flation
of
evil
to
Stocks
Corporations and individuals are
looking forward to 1953 in
the hope that
regardless of which
party is elected in November,
there will be some
reduction
of
ratably
higher taxes. In this manner, in
taxation itself, form is given victory over substance. Nevertheless,
value, you
that which
—
the
its
upon
and
This Week
own
unit
good fortune
reduced
E.
de-
this but if the dollar
capital of an
individual or his dollar income
has through effort or
and
the nation's wealth and resources,
essence
its standard
By H.
sess.
ground for grave
in
these
practices
apprehension
From the standpoint of the people
as
a
whole this constitutes
the
very
governments
cline
pleading with share holders
supply it with additional working as
a
taxpayer
now
in
capital?
brackets
he
must
pay
expressly enacted of the Insurance Policy or Annuchange reducing the unit by 40% ity for which
you sacrificed and
of its former dimension.
By this paid through so many years
prior
masses
world, inflating
Bank and Insurance
been doubled thus preserving his
of purchasing power but not increasto ing it, the government insists
that
necessity
an
refusal false pretense is clothed in
the
habiliments
of
truth,
the
upon
recognition of their
handiwork.
Having halved
a
unreason.
refusal
record
of
it
books the government would
refuse
to recognize this
calcu-
manage-
is
ment
triumph
substance, l/UC defeat
buusiautc, the UV.XVHV
UVCi
over
•of reason
lutes
accounting
enter
you
21
answer
dimension of
an-
yield sufficient funds for the
but of falsehood
reason
folly.
form
lurui
the
is that should
The
of
terms
placement of similar merchandise
in stock; and of cash dividends declared and paid while
which
.
_
't)I
■of
or
deductible loss?
value
and
thus
dispossessed a
And what is to be said of
"prof- large segment of the people of
its" arising from the sale of mer- half of that
which they
possessed,
chandise at prices
which, after it denies them the right to assert
cost, expenses and taxes, fail to this fact in their
returns. Not only
has resulted
profit whatever
no
Joss.
a
selling
price and return in
of self-deception other.
fairy land
a
word
a
gains, profits, return,
essential
country's
In
as
208 East Wis
208 East Wls"
HARTFORD, Conn.—William
Hartigan
with
has
become
with
He
Cooley & Co.
J".
.
associated
Schirmer, Atherton
49 Pearl Street.
Members* Net*1 York Curb Exchange
120
was
&
Co.,
formerly
r.{
^ROADWAY, NEW YORK 5, N. T.
Telephone: BArclay 7-3500
,Bell Teletype—NY 1-1248-49
(I,. A. Glbbs, Manager Trading Dept.)
Specialists in Bank Stocks
•
22
The Commercial and Financial Chronicle
(838)
venture
mand
News About Banks
increase
and
surplus to $120,000.
The initial public reception of
the
bank
was
greater than the
CONSOLIDATIONS
NEW
BRANCHES
NEW
OFFICERS,
Bankers
and
ETC.
REVISED
opening day exceeded
$1,000,000 and had grown by Dec.
31, 1927 to almost $3,000,000. This
growth has continued throughout
the 25 years of the bank's history,
The fifth annual report, Dec. 31,
Deposits
the Board of Gov¬
ernors of the Federal Reserve Sys¬
tem
announced that J. Leonard
On August 27
effective August 31,
in order to accept a position as
Vice-President
and Director of
of the Board,
Co.,
Sulphur
American
Pan
.at
Dallas,
Texas. The present Chairman of
sion
of
the* bank
at
its Head
headquarters
$350,000 to $o00,Aug. 18.
the capital from
000 effective
if
Solicitor
Townsend has resigned as
with
A.
Mark
Bank
Savings
and
of
President
Brown,
Trust
Harris
%
#
Chicago, has announced that
Lindquist has been elected
of
Robert
of
directors
of
board
the
by
the
Vice-President
as
a
and
bank,
he assumed direction
public relations and
2
Sept.
on
of the bank's
activities.
who is also Chairman of business development
Federal Reserve Mr. Lindquist goes to Harris Trust
La
Salle
National
Bank,
of Dallas.
Mr. Townsend from
in
served
similar
a
the Board's staff Mr. Townsend has had direct responsiblity
ing
cil
On
meeting of the
of The Na¬
regular
the
Directors
Board
of
tional
City
on
*
Bank
York
New
of
September 2. Chester R. Leaber
appointed an Assistant Vicewho started
with the bank in 1920, has spent
the
was
to
President. Mr. Leaber,
came
in its Far East¬
par
dipped
to
months
38.4%.
the
a
below
point
For
v
and
the
which
ratio
was
indicated
a
seven'
the
transportation
down to 33.5%
was
tha
and the ratio to gross
well
industry
average ond more than four
points'
6
Quarters
since
Denver
may revlv®
at
addition to cap$1,125,000. When the
an
stock
this
of
£e °Plnl°n
as
c
1s&li
Credit
Hat n°t only Ibis, but other, bond
offerings may be forthcoming over
the near and intermediate terms.
April,
in
A
Aside from the interest stimu-
if
equipment,
particularly
diesel
Presumably the highly fa¬
power.
vorable trend will continue
as
fur
¬
property
betterments
completed. With this saving
are
transportation
for
the
by
$2,-
790,000 ($3.40
to
costs,
months
seven
net
increased
per common
$9,424,214. Even though,
in
share)
Mr.
as
Davis states, maintenance
outlays
will continue high it seems con¬
servative to estimate that
share
in
common
earnings this year will be
neighborhood
of
$20.00
the
compared with $15.98 in 1951.
Joins R. F.
Griggs Co.
(Special to The Financial Chronicle)
WATERBURY, Conn.—Edith W.
Atwood has become affiliated with
The R. F.
Griggs
Company,
Leavenworth
Street.
35
*
Jated >?y refundings and possibili-
branch of Bank of Amer-
new
that has already been put
back into the property and in new
abandoned at the last moment because of general bond market con¬
ditions. It now seems quite likely
in
*
plans to refund the
mortgage bonds, a proposed
s*eP Hat had reached the stage of
advertising for bids only to be
Department
*
™ny analysts that
Fl° Grande Western
completed
a total of
Sam M. Fleming who
1927.
to the oossi-
SJ° ™ p°fsslQ
Nashville
was
stock
in
senior
im. This improvement reflects the
ther
^f1n*q"f™ri5
shares
5,000
mortgage with
same
coupon.
Naturally, these two recent re-
.
1931, became President in 1950.
tles oi additional bond offerings,
ica N. T. & S. A. at San Francisco
the basis of one
on
41/4%
funcjings have raised the question
the
stockholders
to
share,
$2,345,000
the
This would be done,
value
of the
bonds
a
joined the office staff of the bank
as Assistant Cashier in charge of
pro¬
stated, by the declaration of a
stock dividend of 25,000 shares of
$10
1951
offered
per
it is
most of his career
when
private place-
a
jnent earlier in 1952 the road sold
sale
canital
capita
in
1950
in
In
ital funds of
capital from $1,750,000
$2,000,000.
for
offered
r-hanee
chang
npvt
next
were
$225
at
posal authorizing the bank to in¬
crease
growth,
rapid
its
to
due
National
dividend.
sale
a
revenues
lower
considered that in
capital having become ap-
Third National had sold
approved
Mich,
ago
transpor¬
actual
were
money
ss&t! mhs
Aug. 29 the stockholders of
National Bank of
Detroit,
year
half,
July
has improved during the past six
months or so is obvious when it is
Crockett
number of shares outstanding was
Industrial
the
a
in
expenses
re-
second Pres-
Watkins
with
structure
if
if
Even
tation
lower than for the like 1951 inter¬
$1Thf.
The
University.
Northwestern
of the successful public sale of
Seaboard Air Line Debentures
4,000 additional shares of stock at
a
Relations
Public
Financial
of
:<{
*
*
pro¬
Transamerica
against
Corporation.
ceeding
At
Act
Clayton
the
of
courts
Recipient of
date, and for July
itself, is particularly gratifying.
;
4V2S, and 5s, 1963. The extent to
which the railroad bond market
Third
Bankers As¬
American
the
of
sociation.
for the year to
operations. Following on the heels
with a 3%% coupon, to retire the
old Income 4%s, Illinois Central
last week sold $62 million of Conanniversary
year,
deposits had vsolidated Mortgage bonds,
also
reached $127,311,000.
with a 3%% coupon, to provide
In January, 1935, Frank M. Farfunds for redemption of the 4s,
parent
bachelor
of arts degree and special certifi¬
Board has been a
cate in banking studies from the
administrative proceedings before
the Board itself. Mr. Townsend's University of Michigan, Mr. Lind¬
services will continue to be avail¬ quist is also a graduate of the
Graduate School
of Banking at
able to the Board on a part time
basis during the pendency in the Rutgers University and the School
to which the
party, including
litigation
all
for
possible railroad refunding
as to
angle the showing of Coast Line'
tional
of the Public Relations Coun¬
man
portation ratio. Viewed form this
,
posits had increased to $28,359,000.
On March 31,
1952, of our 25th
ident
ca¬
the Reserve Board's or¬
as
Vice-President.
He
ganization in March, 1945, prior pacity
has held the office of President of
to which he had ,been Assistant
Solicitor
of the
Securities and the Financial Public Relations As¬
sociation and is presently Chair¬
Exchange Commission. Since join¬
joined
For He Jlrs(v tlme ln many,
months the air is agam
Hied with rumors and conjecture
many
1931, showed deposits of $6,605,000, and when the bank celebrated
its 10th anniversary in 1937, de-
ris became the bank's
the Board of the
where he
on
maining active as Vice-Chairman
of the Board.
The need for addi-
Parten,
Bank
Atlantic Coast Line and Olher Carriers
original group had dared expect.
CAPITALIZATIONS
the
Railroad Securities
original plan was chafed to
the capital
to $600,000
the
Thursday, September 4, 1952
tremen¬
with
met
were
public support, and the de¬
for stock was so great that
dous
...
Courts Add to Staff
in the West End of the railroad picture so far as se(Special to The Financial Chronicle)
v
is concerned, remains
Manila, where he has been Man¬ Earlier in the month the directors, London, Aug. 25, it was announced curities
ATLANTA, Ga.—Edward H.
Smith, Executive stagnant. This is not particularly Ward, Jr. has been added to the
ap¬ by Russell G.
ager, to join the Far Eastern Divi¬ subject to the stockholders'
in
International surprising tin view of the July staff
sion
of
the
bank at
its Head proval, voted to transfer $500,000 Vice-President
of Courts & Co., 11 Marietta
from undivided profits to surplus, Banking.
Located at 29 Davies1-earnings reports that have been
Office.
Street, N. W., members of the New'
Street the new office will be the appearing during the past week or York Stock
The National City Bank of New making the latter $4,000,000.
Exchange.
second to be operated in London
s0- They have been quite mixed,
York opened its new Cali, Colom¬
! r
by this California bank.
It is H general, the poorest performbia, branch on September 1. The
from
share
temporarily
made
branches. He will
ern
come
for each
An addition
branch will be housed
at Calle 11, No.
4-34 pending com¬
to
shares held.
seven
of
$50,000 has been
the
capital of the First
National Bank of Huntsville, Ark.
pletion of its permanent location enlarging the capital to $100,000
the Zaccour Building, Corner from
$50,000 as of Aug. 19. Part of
of Calle 11 and Carrera 3. William the increase was
brought about by
L, Lafferty, a veteran of 28 years a stock dividend of
$40,000, while
in
of
foreign service with the
will
is
be
Manager
57th
the
Cali,
at
bank $10,000 additional came from the
which sale of new stock.
National
City,
its
and
fourth
*
*
C.
Horace
of
*
Flanigan,
New
President
Trust
Manufacturers
of
in
'i"
York,
Company
that
announces
have been in the East, where
He steel strike exerted the greatest-iaiirhienee, but even in that,
and
area
that
stated
the
particularly to the American
business
firms
the
and
be^isurprisingly good. The Cen-
United
agencies
Fran-
road at least, Atlantic Coast Line,
fit to explain in considerable
detail the reasons, for the- relatively sharp-percentage decline in
net income for the month of July
although even in that month the
road's gross revenues continued
if
J.
cisco,
Buhler
A.
of
San
has
Ullrich
have
sistant
Secretaries
goes
J.
appointed As¬
of
the
Trust
banking
back to 1909 when he
Mr.
Company.
career
been
Distler's
in
1925. He is located at the Park
Row Office. Mr. Ullrich graduated
from Xavier University and joined
the
bank
to its
in
1941.
He
is assigned
*
*
❖
September 2
was
made
on
the Central Re¬
by
public Company of Chicago, New
York, etc., of the election of Ken¬
neth
A.
Kerr,
Vice-President,
as
resident in New York.
*
*
Underhill, Vice-President
says:
Frank
dent of
Raleigh,
Lentz,
was
Raleigh
N.
of
the
elected Presi¬
Industrial
C., to
who
will
Bank,
An
increase
36
with
15
perience,
was
Nashville
an
a
conviction
executive
young
a
man
years' banking ex¬
convinced
that
needed
this
With
Farris,
bank.
new
he
resigned
position with
largest banks
of
one
on
Feb.
27, 1927, to devote his full time to
the organization of the institution
which
was
become
to
National
Bank.
resigned
his
local
bank
the
Third
J.
Diehl,
Walter
connection
in
March
spend his full time
new
on
of
with
1927
a
to
the organ¬
institution.
*
of
Prior to opening day on July
18,
experi¬
1927, Watkins Crockett, an
enced and respected banker, had
resigned
as a
of Nashville's
come
Craig
the
senior officer of
one
leading banks to be¬
first
became
President.
Chairman
C.
of
A.
Federal
Reserve
Hillsboro,
The
System that the
Bank
Ore.,
of
Commercial
Bank
member,
New-
of
including
succeed
L.
A.
expanded,
Bank
its Maintenance
Ore.,
Tillamook, at Tillamook,
insured nonmember, were
an
merged under the charter and title
of The Commercial Bank
It
gon.
is added that
offices
main
Bank of
Bank
of
of
the
The
Ore-
Commercial
ier, and W. J. Diehl, as Assistant
Cashier,
completed
the
officer
$150,000
in the
capital of the First National Bank
staff.
It
was
earlier
but
proposed
to
organize a
of
capital of $500,000
Greenville,
Pa.
has
been
and surplus of $100,000.
The or¬
brought about by a stock dividend
ganizers in soliciting subscriptions
of the amount indicated, raising to the
capital stock of the new
bank
with
the
off
steel
recent
"Traffic
...
during
from
4%
the
during
a
year
reflecting the freight
rate increases gross revenues were
Tillamook,
nominally
In the face of
higher.
the
of-Newberg at St.
Paul,, and the two branches for-
net
from
merly
$706,338 this year.
formerly
mercial
operated
Bank
Bank
and
operated
by
Tillamook
of
Commercial
at
Cloverdale
Wheeler, will be operated
-Q„
,
branches
Bank of
by
rpi
~
The
as
.
.
Commercial.
Oregon at Hillsboro, Ore.
.
higher receipts, net operating
income
SAN
m
lurner
to The
JOSE,
Financial
Calif.
has opened
gage
in
the
'
offices in the
securities
en-
business,
a
Miss
~
Turner
,.
Guardian
and
„
was
formerly
'
Securities
_
in
July
1951
to
Fundamentally the results were
far more favorab,e than would be
indicated from a casual look at the
rtet figures. Maintenance outlays
for the month were more than $1
thus bettering the underlying sta-
j
Lola
Building to
$1,138,980
proving the physical condition and
Chronicle)
—
•
dipped more than 70% and
all charges was down
after
millipfl Jiigher than in July 1951.
Tlii^;il:all to the good in im¬
.
Opens Own Office
(Special
Bank of America
was
of
period
with
..
Corporation
Walston, Hoffman & Goodwin,
tus of the properties and basic investment stature of the
This
particularly
is
securities.
true
under
present tax conditions. What is far
more important
income
than actual net
figures is the operating ef-
ficiency of the property, as measured
by
the
Investment
Company,
Building.
-
.With Norman F.
•
Dacey l
'
(Special to The Financial Chronicle)
BRIDGEPORT, Conn.—John P.".
Hassett has been added to the staff
of Norman F. Dacey &
114 State-Street.
!
tv-;
Associates,'
Joins Stoichen Staffr
•••*1
(Special'to The Financial Chronicle)
MINNEAPOLIS,
v
A.
Simonson
with
W.
R.
is
Minn —John
now
Steichen
&
connected
Co.,
Inc.,;
Roanoke Building.
trend
Dr. J. W. Emmer
materially
curtailed,
programs
the branch
by The Com-
Farris, Vice-Presidents, S. S. McConnell, Vice-President and Cash¬
*
than
rather
month
former
Newberg and Commercial
of
the
strike.
Henkle
E.
Federal Securities
of its neighboring
Southeastern railroads,
nonmember, and the Commercial
Board, Nathan Crockett and F. M.
board
some
berg at Newberg, Ore., an insured
of
LINCOLN, Neb.—Harry C. Dal-rymple has joined the staff of E.
year
that, "Atlantic Coast Line, in cOntrast with many other railroads,
at
Oregon,
State
a
the
become
Chairman.
£
of
M.
ization of the
Girard Trust Corn Exchange Bank,
Philadelphia,
part
*
According to the Philadelphia
'Inquirer" of Aug. 27, Gary H.
of
in
a
Mr. Davis, President of Atlantic
Coast Line, in releasing July 1952
earnings of the road, commented
As to the bank's by the Board of Governors of the
booklet
Commercial
Nashville's
39th Street Office.
Announcement
the
formation,
joined the Yorkville Bank which
mprged with Manufacturers Trust
April 19, 1950.
on
of
ahead
-
(Special to TheTinancial Chronicle)
saw
•
Sebastian J. Distler and Eugene
the - reports have
lo- Irak West and South West have
cated
in
the
Grosvenor
Square1 shown up very well, reflecting
district. Mr. Smith also announced good crops. In the Southeast one
Government
States
With E. E. Henkle
ances
will
branch
new
been appointed ViceMarking its 25th anniversary President and Manager of the two
the Third National Bank of Nash¬ London branches, filling the post
ville, Tenn. has issued a booklet, left vacant by the retirement of
tracing the history of the bank, Vice-President and Manager J.'P.
and
paying tribute to the late Kennedy.
'
*
*
*
Frank M. Farris, founder of the
It was made known on Aug. 1
institution, whose death occurred
if
if
Colombia.
provide service for the bank's customers in this section of London,
that
of
branch
overseas
opened
was
of the trans¬
(Special
to The
Opens'
Financial Chronicle)
-
NEW
IBERIA, La.—Dr. John W.
Emmer is engaging in a securities'
business from offices in the Oliv¬
ier
Building.
Volume 176
Number 5148
The Commercial and Financial Chronicle
(839)
The
Indications of Current
Business
latest week
Activity
week
Indicated
steel
Equivalent
Steel
Crude
42
castings
and
PETROLEUM
oil
and
of
capacity;
Ago
Ago
output
99.6
89.8
98.3
7
2,077,000
2,039,000
1,866,000
1,965,000
output
oil
fuel
oil
6,279,000
6,070,850
6,220,250
Aug.23
117,174,000
7,177,000
7,103,000
Aug. 23
oil
23,904,000
23,128,000
(bbls.)
•
of
Total
Natural gas
8,761,000
Manufactured
8,720,000
8,776,000
8,763,000
9,161,000
116,393,000
115,979.000
118,285,000
125,590,000
30,314,000
29,721,000
26,029,000
31,967,000
Aug. 23
99,569,000
95,280,000
81,792,000
52,104,006
51,959,000
51,052,000
AMERICAN
805,704
Revenue
607,271
freight received from connections (no. of cars)__ Aug. 23
838,587
674,279
660,924
542,150
680,216
Private
Public
.Aug. 28
construction
and
$353,898,000 $1, 366,068,000 $1,131,612,000
236,594,000
87,883,000
100,732,000
Aug. 28
Aug. 28
municipal
117,304,000
Aug. 28
1, 278,185,000
1,030,880,000
$257,381,000
160,049,000
97,332,000
(U.
Bituminous coal
S. BUREAU
OF
Pennsylvania
Beehive
SALES
SYSTEM—1047-49
ELECTRIC
Electric
output
(in
000
steel
=
957,022,000
domestic
11,000,000
9,900,000
6,700,000
711,000
661,000
827,000
89,900
"67,900
19,600
•100
95
79
7,646,253
7,718,084
7,404,913
7,145,609
AUg 2d
154
141
137
4.376c
"4.376c
"4.376c
oil
$52.77
$52.77
output
(barrels)
imports
(barrels)
.-.i.:
Straits
Lead
tin
Lead
(St.
Zinc
York)
(New
$42.00
$42.00
$41.75
$43.00
(East
a,,
at-
—
121.500c
and
16.000c
16;000C
15.800c
15.800c
15.800c
14.000c
15.000c
smelter output,
Stocks
97.47
97.02
MOODY'S
i
2
109.79
109.60
109.79
111.25!
2
114.08
114.08
114.08
116.02
112.00
112.19
115.04..
109.06
109.42
110.34
103.97
103.97
104.3D
,
Sept.
2
103.97
.-Sept.
2
2
2
106.92
106.74
106.92
109.42
109.42
Unfilled
all grades
(tons of
■
of
OF
orders
period
112.93
113.12
end
at
period
of
S2.68
2.71
2.65
NEW
DOLLAR
ACCEPTANCES
3.19
3.18
As
—
2.95
2.95
2.95
.
2
Sept.
-
3.06
3.06
2
„---
Industrials
—
INDEX
COMMODITY
MOODY'S
NATIONAL PAPERBOARD
Production
AVERAGE
1949
,3
=
goods
foreign
stored
13,374,000
9,556,000
7,406,000
10,904,000
73,351,000
44,714,000
166,000
34,133,000
^
and
shipped
35,930,000
26,982,000
.
Total
FAILURES—DUN &
$415,953,000
$380,491,000
•INC.—Month
of
128
'130
BRADSTREET,
July:
Manufacturing number
Wholesale
number
;
100
STOCK TRANSACTIONS FOR ODD-LOT
LOT DEALERS AND
SPECIALISTS
.
..
'
3.34
3.30
'3.20
3.20
3.00
194,899
180,999
188,010
CASH
220,691
219,857
•
199,444
July
89
82
396,615
516,856
*
I
108.86
110.01
2,666,000
<1,466,000
-
PUBLICLY
—
CORPORATIONS
OF
1,971,000
1,398,000
$21,222,000
$21,088,000
4,456,000
REPORTED
U.
—
COMMERCE
S.
DE¬
Month
—
of
(000's omitted)
$542,000
$1,176,000
.$535,000
25,850,000
31,405,000
34,103,000
2,483,000
•3,103,000
2,770,000
64,800
110,000
531,400
355.1
•360.7
341.9
82,138
•80,392
82,577
96,049
92,151
93,258
115,179
98,416
101,095
73,657
(BUREAU OF
Bituminous
coal
and
70,856
68,045
105
•111
105
84
♦105
84
MINES)—Month
lignite
Pennsylvania
anthracite
(net
tons)
(net tons)
(net
tons)
116.06
CONSUMER
—
ACCOUNT OF ODD-
PURCHASES
DUN
&
OF
COMMODITIES
BRADSTREET,
1939=100)— Month
ON N. Y. STOCK
EXCHANGE COMMISSION:
(customers' purchases)—
*4,778,000
2,990,000
$22,789,000
Beehive coke
109.36
<$7,790,000
7,024,000
July:
94
431,711
S.
COAL OUTPUT
225,800
88
$6,971,000
2,266,000
3,196,000
1—
liabilities
U.
665
5,434,000
DIVIDENDS
BY
55
671
3,811,000
liabilities^.
PARTMENT
452.7
394,190
jz
Construction
2.90
52
$8,882,000
liabilities
liabilities
liabilities
Commercial service liabilitesi
3.10
3.01
*
446.5
Aug. 29
—
-
74
41
i
number
-
Manufacturing
Total
66
340
78
580
service
number
Retail
73
340
.
number
Commercial
Total
59
299
48
Retail number
Construction
1104,442,000
between
countries
BUSINESS
3.15
431.0
PRICE INDEX—
DRUG REPORTER
PAINT AND
OIL,
1
3.49
187,012
Aug. &
of period
at end
(tons)
3.20
431.6
A"g-2d
(tons)
orders
2
Aug. zt
Percentage of activity
Unfilled
2
ASSOCIATION:
(tons)
received
Orders
on
I__
I~_
credits
2.90
3.51
3.35
3.20
3.01
Sept.
Group
2
2
Sept.
—
3.05 N
3.22
.
3.34
Sept.
Sept.
*
*—
—
Group
t
3.51
3.21
Group
Based
2.85
V
3.51
Utilities
$224,623,000
7,121,000
-125,622,000
7,724,000
warehouse
Wholesale
2
-fept. 2
j—
Public
$194,904,000
125,878,000
BANK
of-July 31:
exchange
3.10
——
Railroad
62,412
OUT¬
FEDERAL RESERVE
—
YORK
Dollar
2.55
3.18
Sept.
—Sept.
————
Aa
11,400
39,428
(tons)
shipments
115.04
Sept.
•
—
corporate
Average
83,346
•63,342
(tons)
Imports
DAILY AVERAGES:
YIELD
78,955
•47,265
46,547
pounds)
•77,463
96,919
133
2,000
■43,353
$450,150,000
end
STANDING
111.25
112.93
°ept.
——
16,241,000
$199,764,000
at
of
107.62'
109.42
—
—
Group
Group
BOND
Aaa
1
99.16s
109.24
Government Bonds-,.
',U. S.
„
97.78
'
Z
Group
Industrials
209,863,000
t6,140,000
76,930
(tons
17.500c
2
"I
Railroad
210,735,000
July:
16.800c
14.000c
IIIIIiiiiiii-i-mzzsept'
Public-Utilities
9,385,000
export
2,900 pounds)
17.000c
-
Roa""""
16,889,000
12,586,000
17,739,000
domestic
12,000
16,903,000
AMERICAN ZINC INSTITUTE, INC.—Month of
103.000c
16.000c
»ppt.
—Sept.
'——
—
—
a«
.
121.500c
112.00
corporate
Average
Aaa
f
121.500c
27.425c'
BOND
MOODY'S
15,920,000
26,000
17,434,000
9,917,000
^
(barrels)—
Domestic
24.200c
34.825c
a
PRICES DAILY AVERAGES:
U. S. Government Bonds
24.200c
35.175c
-Aug. 27
at
24.200c
35.325c
&°'7?n
8o2
*
Louis)
24.200c
on
Aug. jl
Aug- zl
—
at
Louis)
St.
,,
-■>
at
York)
(New
199,830,000
183,898,900
16,770,000
39,000
(barrels)
:
stock
Domestic
at—
refinery
175,106,000
158,310,000
212,839,000
consumption
all
BANKERS'
fElectrolytic copper—
Domestic refinery at_
Export
8,684,495
42
of
(barrels)
(barrels)—
imports
(barrels.)
$52.69,
•
M. J. QUOTATIONS):
&
1,639,000
17,271,000
(barrels
output
Exports
(E.
1,605,000
_
AUg' ^
-——~j.--Aug.-2b
Aug. 26
———
—
Pig iron (per gross ton)—.
steel (per gross ton)
PRICES
117,500
120,400
INSTITUTE—'Month
,
oil
products
Indicated
4.131c
$52.77
PRICES:
Scrap
METAL
3,018,800
159,159
130
&
INDUSTRIAL)—DUN
3,256,700
103,002
INSTITUTE:
castings produced
July
gasoline
Slab zinc
„
lb.)
(per
Crude
97
Aug. 30
AND
3,577,673
3,315,512
89,257
for
of
production
output
Refined
128,500
Aug. 23
kwh.)
3,270,552
3,039,460
.
10,749,000
951,000
RESERVE
-
11,997
202,227,000
185,917,000
I—II
therms)—.
each)
crude
Benzol
28,576,000
Aug. 23
100
67,454
10,371
141,835
<M
STEEL
steel
gallons
Shipments
INC.
COMPOSITE
AGE
Finished
1, 218,804,000
INSTITUTE:
BRADSTREET.
IRON
68,756,000
Aug. 23
INDEX—FEDERAL
AVERAGE
(COMMERCIAL
FAILURES
73,858,000
Aug. 23
DEPARTMENT STORE
80,803
13,753
June:
Increase
(tons)
EDISON
59,381,000
MINES):
and
lignite (tons)
anthracite (tons)
coke
92,259,000
25,045,000
COAL OUTPUT
77,476
month
therms)
PETROLEUM
Natural
construction
State
For
—
.
AND
and
Domestic
construction
S.
(M
tons)—Month
Total
ENGINEERING
NEWS-RECORD:
U.
Ago
S
____
therms)
sales
gas
JRON
ingots
(net
of
834,120
—
the U
June—
47,906,000
Steel
AMERICAN
cars)
CONSTRUCTION
Year
Month
(short tons) end of June
sales'(M
'Mixed gas sales
91,692,000
Aug, 23
ENGINEERING
of
therms)
2,254,000
freight loaded
Total
(M
gas
21,592,000
2,575,000
10,237,000
RAILROADS:
(number of
aluminum in
ASSOCIATION
23,413,000
—_
of that date:
Previous
June:
2,657,000
Revenue
CIVIL
GAS
10,342,000
at
AMERICAN
OF
AMERICAN
2,573,000
Aug. 23
at
are as
MINES):
tons)—Month
10,359,000
(bbls.)
(bbls.)
oil
fuel
ASSOCIATION
short
Aug. 23
Aug. 23
fuel
Residual
(in
6,500,000
(bbls.)__
output
OF
Stocks of aluminum
Aug. 23
Stocks at refineries, bulk terminals, in
transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at
>
Aug. 23
Kerosene (bbls.) at
Distillate
(BUREAU
Aug. 23
output
either for the
are
Month
ALUMINUM
Production of primary
6,282,700
(bbls.)
fuel
of quotations,
cases
(bbls. of
average
(bbls.)
Kerosene
in
or,
,
100.0
(bbls.)
average
that date,
Latest
Aug. 23
stills—dally
production and other figures for the
cover
Dates shown in first column
'
Year
INSTITUTE:
Gasoline
Residual
Month
Sept.
condensate output—daily
to
runs
•Distillate
Week
7
tons)
(net
on
Sept.
each)
gallons
Crude
operations (percent
month ended
Previous
Week
INSTITUTE:
month .available.
to—
ingots
AMERICAN
STEEL
AND
IRON
or
or
1
Latest
AMERICAN
following statistical tabulations
23
of
INC.
(1935-
July
EXCHANGE—SECURITIES
Odd-lot
dealers
sales by
of
orders
Number of
COPPER
A1ig. lb
shares
Number
Dollar
Odd-lot
—
Aug.
Aug' lb
value
Number
Customers'
short
Customers'
short
other
——
sales
Customers'
sales
sales
Dollar
value
of
Other
TOTAL
ROUND-LOT
20,300
21,638
21,231
610,293
592,385
'2,537
2,644
7,100
S.
607,756
589,741
$25,423,602
$27,167,703
173,010
161,590
171,140
178,420
178,010
161,590
171,140
178,42(1
250,050
263V990
274,960
Other
—
Total
TRANSACTIONS
ACCOUNT
FOR
DEPARTMENT
^ug'
9
9
198,560
5,542,270
5,728,910
201,060
341,630
5,506,820
5,333,890
SERVE
Without
EDISON
5,534,950
end
at
SALES
STORE
of
period
(FEDERAL
SYSTEM—(1947-49
seasonal
RE¬
Average=l«0)
adjustment
ELECTRIC
INSTITUTE:
ultimate
ultimate
to
consumers—
27,177,925
customers—month
ultimate
of
at
customers
27,765,654
25,466,691
$486,460,100
from
FABRICATED
8,048,800
CAN
INSTITUTE
9
527,240
564,930
550,760
842,550
Aug.
9
112,130
102,360
117,480
173,830
Aug.
Aug.
9
422,660
451,650
484,680
690,110
9
534,790
554,010
602,160
$494,079,800
$451,675,900
47,430,319
47,294,356
45,711,327
of
May 31
sales
Total
sales
Total
83,430
99,900
108,830
9
9
-6,600
7,200
10,200
9
85,520
98,850
179,950
195,300
Aug.
9
92,120
106,050
190,150
214,800
Aug.
9
205,385
226,360
185,110
326,070
Aug.
Aug.
Aug.
9
31,470
44,660
38,600
-«-*
—<-»-—•
sales
Other
!
-
—
—
sales
sales
-——
——
•
264,120
243,783
235,773
384,115
9
295,590
288,843
274,373
433,215
Aug.
9
816,055
891,190
844,700
STANDARD
Aug.
9
150,200
154,220
166,280
242,430
—————————Aug.
9
772,300
794,283
900,403
9
922,500
948,503
1,066,683
■0,511,955
Other
sales
—-—■
NEW
LABOR—(1947-49 = 100):
WHOLESALE
PRICES,
Commodity Group—
All commodities —4
SERIES
—
U.
S.
DEPT.
sales
of
207,593
of
dryers
INTERSTATE
Index
of
MOTOR
PLANTS
.
<
—
IN
26
26
111.9
112.2
111/7
103.8
110.1
110.9
111.1
109.7
17,654
139,799
11,100
33,858
31,720
26,268
113.5
118.3
124.3
number
COMMISSION
SALES
—
Month
^Includes
598,000 barrels of' foreign drude runs.
FROM
MANU-
of
July:
vehicles—
211,890
ii——1_
passenger
cars
of
518,710
492,316
408,250
381,407
109,976
110,244
484
665
-$1,466,200
$1,294,000
168,327
trucks—
motor
-*•
43,339
26
116.0
116.8
115.3
26
•112.8
112.8
112.5
Number
UNITED
of
STATES
BUREAU
(000's
motor
OF
coaches
EXPORTS
CENSUS
—
—
AND
Imports
'i
J
224
-
»-
'
IMPORTS
Month
of
June
omitted):
Exports
•Revised.
middle of
=100)
(AUTOMOBILE
S.
ASSN.)
of
at
—
109.7
26
15,025
(units)—
FACTORY
U.
FACTURERS'
of
(units)
Employment
average
VEHICLE
Number
„
Aug.
Farm products
--——.—-——
— Aug.
Processed foods
————--Aug.
Meats
———
7
Au8All commodities other than farm and foods
Aug.
Railway
274,457
HOME
ASSOCIA¬
(units)
COMMERCE
(1935-39
Number
_
(AMERICAN
ironers
sales
Total
OF
—
161,002
—
July:
Factory
June
——
of
Factory sales of washers
1,269,525
Aug.
———•
sales-——————
sales
SIZE
206,936
July:
'IRONERS
MANUFACTURERS'
TION)—Month
1,353,770
————-.—
——
Short
Total
AND
MANU¬
of
of units)
WASHERS
222,540
204,380
188,715
ASSN.)—Month
167,492
125,486
STAND¬
—
CLEANER
(VACUUM
Factory
9
——
—
purchases
221,389
135,860
CLEANERS
(number
LAUNDRY
round-lot transactions for account of members—
Total
SIZE
49,100
sales
purchases
Short
Total
ARD
FACTURERS'
19,500
Aug.
;———■
transactions initiated off the floor—
Total
CONSTRUC¬
July:
(tonnage)—^estimated
VACUUM
Factory sales
185,150
Aug.
—;
__—
STEEL
(AMERI¬
(tonnage)—estimated
HOUSEHOLD
——
_
sales
Other
the floor—
—-—Aug.
purchases
Short
on
STEEL
863,940
.
transactions initiated
OF
of
closed
HOUSEHOLD
Aug.
—:—
1
STRUCTURAL
TION)—Month
Shipments
———————
sales
Total
•
pounds)
2,000
stock
sales
7,707,170
5,705,380
MEM¬
OF
sales
Other
Total
of
Month of July:
Adjusted for seasonal variations
Number
186,640
—
i
purchases
Short
1
(tons
May
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
Transactions of specialists in stocks in which registered—
1
A.
Revenue
Aug.
—---/—Aug.
sales
ROUND-LOT
Other
pounds)
customers—
copper
Contracts
t
A.—
pounds)
2,000
Kilowatt-hour
(SHARES):
sales
Total
-
S.
July:
318,560
,
sales';
Other
U.
of
(tons of 2,000 pounds)
653,142
$25,315,843
STOCK SALES ON THE NEW YORK
ROUND-LOT STOCK TRANSACTIONS
'
r
in
2,000
of
month
660,242
2,985
U.
to
Refined
23,520
567,002
In
of
(tons
For
—
Round-lot
Short
,
(tons
Refined
208
564,017
'
ACCOUNT OF MEMBERS
sales—
FOR
Total
.
of shares
production
Crude
23,728
73
AuS-16
——---—
EXCHANGE AND
21,304
77
Aug. 16
Aug/16
-Aug. 16
purchases by dealers—
Round-lot
,
,"
—
sales
92
21 715
20,392
$23,602,149
—
by dealers—
shares—Total sales—
sales
•Short
Number
-----
-—
sales
Number
Copper
774,361
$35,137,547
Aug. 16
Aug. 16
Aug. 16
Aug/16
Aug. 16
Aug. 16
sales
Round-lot
705,032
$33,079,339
Aug. 16
sales
other
shares—Total
of
26,808
704,590
$32,348,017
by
Customers'
Number
24,800
657,240
Deliveries
dealers "(customers' sales)—
of orders—Customers' total sales—~r—
purchases
24,848
23,130
'
$29,995,478
INNSTITUTE
—
$1,162,300
860,200
J
834,800
929,967
Chronicle
The Commercial and Financial
2\
...
Thursday, September 4, 1953
(840)
How
3
Continued from page
_
-
.
B
Economic and Agricultural
**
reached
such borrowing
As
peak of $1.4 billion.
result
a
developments, Federal
policy has moved
these
ojp
credit
Reserve
neutrality to moderate reThe results
have been
:from
strain!
prices and higher yields on
continwed restraint on credit expansion.
There has also been considerable
lower
Government securities and
the Federal Reserve
System to loosen up. If this policy
were continued,
the financing of
the Government
deficit through
the banking system would be ac-
pressure
on
bank
cipally
with
.situation,
such
restraint
would
a
depression
few years because
of increas-
the nation into
ieacj
jn
difficult to carry out.
a
por ejgbt years there has been
appreciable
jng output with declining exports,
fn my opinion, this is so much
bunk. There may be a very large
increase
present economic situation crop of wheat as this year or too output achieved during the war,
of precarious balance at a much of one or two crops any but food production still stands at
i»4gh level and substantial infla- time, but general overproduction that level. A gradual increase in
^Snary pressures, but it is not of farm products is very unlikely food production is to bq expected,
like the fall of 1950.
It is my until the next depression. More- but prospects for an immediate
one
that increased reserves rer
guess
quired to finance seasonal moveof crops and defense production will be provided, at least
sent
ia
part, by open market operations; that is, by the purchase of
government securities by Federal
Reserve banks, but there is not
farm surpluses do not cause
depressions, but depressions result
in apparent farm surpluses.
It
is a matter of underconsumption,
not overproduction. The present
favorable crop outlook is good for
farmers as well as consumers.
likely to be a repetition this year
of
and
cheap
lew
of
will
months
test
ago.
Reserve
good
the
in
re-
a
System
inflationary
-straining
of
provide
effectiveness
the
JFederal
credit condiThe next
easy
lions of two years
pressures
by general credit controls while
cooperating with the Treasury in
financing the Government deficit,
Chances
of
will
success
if consumers
proved
im-
be
continue to
sanely and to avoid another
save
of
vrnve
buying such
scare
iaad
from
.ary,
we
as
1951.
1950,
June,
Now here
.suits of U.
are
S.
the
Febru-
to
business
re-
agriculture for the
prices received
•furst half of 1952:
fey farmers were down 5% from
half of 1951, volume of
the first
sales up
7%, gross income up 4%,
3%. Hence, the
smd farm costs up
»et income of
the
about
S. farmers
U.
same
as
for
was
first
the
over,
There
are two major props to the U. S.
defense boom — the defense program plus foreign aid, and the
private construction of housing
and industrial plants.
A readjustment is probable in
the middle '50s when the defense
buildup is completed and requirements drop to a replacement basis,
The construction boom is past its
peak although it may remain high
for a couple of years with the
stimulation of
Then what?
easy
all
prices. However, this
general
outlook
for
faraaing will not prevent a decline
in farm prjces if the general price
level faus
jf we should experience
severai years of declining
an(j
0ther
optimistic
commodity
have
prices,
serious
will
farmers
economic
troubles
their cash costs will
because
chne slowly and
de-
their turnover is
siow
rise" after the restrictions were
The
long-run outlook
in mind,
I
be-
full farm production, but watch
labor efficency and costs.
Full
employment of their labor force,
labor-saving machinery and methods, and higher yields per acre
and per animal by better produchousing credit tion methods are very important,
Credit necessary for efficient production should be provided fto
1.3
billion
reports the National Association of Purchasing Agents. Most of
in a nationwide survey, gave major credit
to
settlement of the steel strike for their optimistic reports.
However, the survey warned that the change for the better
might be only temporary, since much of the new business had
been held back by the strike.
The buyers added that many of
the new orders were for small quantities of goods.
by the steel industry's recovery performance,
the government is considering restoration of a 45-day limitation
on consumers' steel inventories by Jan. 1, says "Steel," the weekly
magazine of metalworking, the current week. The limits were
cut to 30 days because of the steel strike.
Encouraged
plus
Today the steel market is active but not hectic, states this,
paper.
Continuing, it observes, the market lacks the zip-
trade
had been
steelworkers' strike.
Steel sales offices report more concern among buyers as to ship¬
ments on back orders than pressure to place new orders. A lack
of interest in new ordering could mean a lowering of steel pro-
jrecent
drought
losses
to farmers
The large
is
When
the
in
it
In
good.
There
world.
What happens
in the product.
on
pressj°ns hy
meat,
ancj
of
of the
compensate
loWer prices.
of industrial workers, but
well above the
Prices
a
low levels of 1949
-and 1950.
received
are
increased
needs
downward
movement
modity prices is
of
com-
likely dur:
ing this decade—perhaps during
by New; York the middle'50s. No previous boom
were
very
,
19% above; has,lasted forever. When it comes,
JTune, 1950, while farm costs have
t
industry
steel market.
military and converters.
and'
consumer
the locality, but almost without exception
carbon bars and heavy
plates are at the top of the tight list. The reason is they are used
heavily in defense work. Part of the tightness in plates has beer*
due to demand for cartridge
to
believe
But
cases.
the
there is some reason
now
has
program
been
ordered, this;
declared.
additional
No
in
slowdown
a
pressure
is developing for carbon sheets and
strip, although mills are booked full for the rest of the year.
In
hot-rolled and cold-rolled strip demand actually is
sluggish, it further notes.
some
areas,
In
planning
higher
costs
last week
of
for the future, consumers must reckon with
materials and labor. Steel producers continued
new and
higher prices to compensate for the-
issue
to
increase
wage
given
"Steel"
the steelworkers,
The
points out.
government has not yet authorized a price increase for pig ironbut
be
there
was
speculation that
a
boost of $2 to $2.50 a ton may
approved, it concludes.
The
for
American
and
Iron
Steel
that the
announced
Institute,
operation
and
.
average
an
of 100.0% of
capacity for the week beginning Sept. 2, 1952, equivalent to 2,077,000
tons
of
ingots
Aug. 25, the rate
totaled
steel
and
for castings.
In the
week starting
99.6% (revised) of capacity and actual output
tons.
A month ago output stood at 89.8%, or
was
2,069,000
1,866,000 tons.
Beef prices will decline
Electric Output Falls in
Pre-Holiday Week
The amount of electric energy
and power
mated
at
distributed by the electric light
industry for the week ended Aug. 30, 1952, was esti¬
7,646,253,000 kwh., according to the Edison Electric
Institute.
The current total was 71,831,000 kwh. above that of the pre¬
ceding week when output amounted to 7,718,084,000 kwh. It was
500,644,000 kwh., or 7.0%, above the total output for the week
ended Sept. 1, 1951, and 1,186,867,000 kwh. in excess of the
output
reported for the corresponding period two years ago.
the biggest
Car
The
0.5%
much
in
times
cars,
total
an
in Previous Week
increase of 28.416
represented
cars
decrease
a
under the corresponding week
of 4,545 cars, or
a
year
of
ago,
3.5%
or
4,467
and
above
or
cars,
decrease
a
0.5% below the corresponding week in 1950.
United States Auto Output
Shows Sharp Recovery in
Latest Week
Passenger car production in the United States last week
regained its pre-strike level and according to "Ward's Automotive
Reports," turned out 95,032 cars compared with 83,065 (revised)
and
cars
too little in bad times. Now is
the time to help farmer customers
strengthen their financial condi-
cars
good
week's
as
freight for the week ended Aug. 23, 1952:
according to the Association of American
revenue
Railroads, representing
the preceding week.
count are a good hedge against deflation and a reserve for depreciation on farm machinery,
In the past, many credit agencies got into trouble by lending
too
Loadings Continue to Rise
Loadings of
totaled 834,120
farms.
Financial reserves are a permanent and important part of a
well - organized
farm business,
Savings bonds or a savings ac-
tion to withstand bad years that
we'll probably have a severe may come.
Sound farm credit
risen 12%.
shakedown, a recession. Steadily means lending courageously to
In
spite of marked improve- falling
prices would
result in good farmers in depression years
ment in 1951 and 1952, prices re- losses and unemployment in other and with increasing conservatism
«2eived, however, have been below businesses as well as in farming, in times of prosperity. ;
larmers in July
,
will have erased thefor some of the
When the steel strike ended, the-
steel
Demand for steel varies with the product, the
our
—
incomes
the
month
in the
relatively in the next few years
Government action time
prevent a downward spiral of deflation. Unemployment insurance,
With old-age pensions, public assistjfarm
costs
continuing
slightly- ance, and farm price supports
above last year, the net income might cushion the shock but will
U. S. farm operators will be not prevent it.
around the levels of 1951
perThroughout modern history
feaps slightly below the $14.9 bil- there has been a strong tendency
lion of last year. This is low in f0r
commodity prices to rise in
comparison with the all-time peak wartime and decline in peacetime,
to
consumers
programs.
doubts
will continue
have after
midsummer
industry promised to catch up on defense orders by Nov. 30.
Now it expects to do the job two months ahead of schedule.
Indicative of this big push, one steel producer in the Pittsburgh
area is shipping 63%
of its hot-rolled sheet output to fill orders;
farm real estate values are high
A larger volume of produc-
for slightly
the
order carryover that's responsible today
pressure
I
have
grave danger is operating losses in bad
ability to stabilize years because farm prices drop
With farm prices stable around the U. S.—even graver doubts of faster than costs.
Cash costs are
present levels, United
States the rest of the world. Our Govern- becoming more important every
farmers' gross income for 1952 ment would undoubtedly act more year and are especially important
jshould equal or be slightly above promptly than formerly to try to on N'ew York family commercial
$ion
would
steel
think we are in a in terms of long-time trends —
new era^ that we can control our
double 1940 and 30% above 1920.
economic affairs and prevent de- Paying for a good farm is a long-
*mlk and eggs.
1951.
another
defense
Some persons
pros-
of
it
during
duction in the winter months.
comes,
^Jes.
l^ective corn erop will permit contmued
production
steel
expand
brought
severe
affected, but it
substantial effect
xocd production.
high
for
generous
a
thought
people
some
starved
1
no
steelmaking in the week
to
9.a.ri?~ conditions in other countries, and, and will affect dairy cows. BankT"e
inscu?Piy will be conversely, what happens in the ers should be careful about fiyj above 1951, with more rest 0£ the world also affects us, ryancing the purchase of dairy
feeef and poultry making up for
especiaiiy the trends of wholesale cows unless the loans will be rea smaller
supply of pork.
The
prices 0f international commod- paid in a year or two. New York
will have
Reflecting the steel industry's production recovery, the rateended Aug. 30 edged up 2.5 points;
99.6% of capacity.
of
capacity for the entire industry will be at
adequate for domestic and export u. s. affects prices and economic
purposes,
of Capacity This Week
Steel Output Scheduled at 100.0%
operating rate of steel companies having 93% of the steelmaking
major
which
bushels
showed a
purchasing agents
by
the purchasing agents,
the depression production credit for specialized
crops except spring wheat.
How- will not be due to farm surpluses power machinery, in addition to
ever, with a large winter wheat but to causes in the general econ- livestock.
Dairy cows continue as
-output, there will be a total crop omy 0£ the U. S. and the rest of the highest priced New York farm
ocf
placed
orders
of
suspended.
sharp rise in August. This was the first time since March, 1951,
when incoming orders "closed the gap" with outgoing production,
both the short-run and the
lieve that farmers should maintain
But the
The demand
rate
appreciable
officials noted there would be "no
that time, Reserve
trade journal
with
all
shattering
July,
in
$242,000,000
rose
shrink
The outlook for the last half of
for
that over the next decthe average jevei 0f farm
prjces wm be in a reasonably
fav0rable relation to farm costs
housing is very elastic. It can farmers, but they should reduce
in bad times as well as debts as rapidly as possible.
for
favorable
it would be
reasons
ade
defense production.
and
Favorable
Farm Outlook
is
two.
trend is downward.
fealf of 195!
1952
or
por these
credit
Consumer
my guess
Future
ine monger
What of the longer future? We
are at or past the peak of postwar
inflation. We have experienced a
long period—13 years—of rising
or high prices broken only by the
moderate readjustment of 1949.
The most likely development is a
sidewise movement of prices with
minor ups and downs for the next
year
sharp increase are not bright,
With full employment, high con¬
sumer
incomes, and increasing
population, farming is under pressure which is not likely to diminish so long as the boom continues,
5
page
previous records for the amount outstanding, the Federal Reserve
Board
reports.
At the close of the month, $21,200,000,000 of
instalment and charge account credit had been tallied up. Gov¬
ernment curbs on instalment credit were dropped last May.
At
The
is
from
The State ol Trade and Industry.
entire history as a nation,
our
n0
writers are now predict-
Some
extremely
be
every
jng fhaf farm surpluses are developing and that agriculture will
al-
justified,
be
would
it
though
rigid
policy of
a
It probably would be less
in
Continued
in food
output beyond the 1944 peak; yet,
during this same period, about 20
million people have been added to
our consuming population and the
number is still increasing at the
rate of 2% million a year.
The
growth of population has caught
up
with the high rate of food
were
inflationary
strong
Outlook
years.
ban consumers.
If we
loans.
a
■
-
it last? No one
could last several
Agriculture faces this uncertain
longer future in a stronger position than ever before. During
World War II, from 1939-44, U. S.
food production made the most
rapid sustained increase in the
history of this or any other nation. The most striking change in
dietary habits was the increased
purchases of meat, milk, eggs, and
other choice foods by families
whose buying was formerly limited by low incomes,
complished by a corresponding reduction in private credit — prinlaced
but it
month except one
since July, 1949, but they have averaged 97% of parity for seven
months of 1952 as compared with
93% for 1951 and 90% for 1950.
For the rest of 1952-53, New York
farm prices are likely to fluctuate
around parity or slightly below,
There will be no boom but fair
returns to efficient producers, and
we can expect continued high demand at good prices for milk, eggs,
fresh fruit and vegetables produced on New York farms for ur-
20-year parity
a
0*
will
long
knows,
or
14%
General
week's
>■
more
cars
in the like week
Motors
progress
a
than
in
the
previous week
year ago.
Corp.'s
division
by turning out 7,000
and
-
was
more
accountable
cars
than
103,255
'
for
the
the
week
before.
Total output for the past week was made up of 95,032 cars and
the United States against 83,065 cars and
(revised) last week and 102,255 cars and 28,985
trucks in the comparable period a year ago.
22,224 trucks built in
18,542
tfucks
Canadian plants turned out 5,960 cars and
1,785 trucks against
Kolume 176
1
Number 5148
5,690
..
The Commercial and Financial Chronicle
.
'
,
(841)
*<5
and only 2,291 trucks last week, and 3,839 cars and 2,400
cars
pers turned
increasingly to preparations for a new season. Backto-school promotions attracted
spirited response and were gener¬
ally more favorably received than had been expected. In
parts
of the South and Southwest clearance sales
of Summer goods
continued to stir wide interest.
trucks in the like week of 1951.
Business Failures Ease in Latest Week
•
Commercial and industrial failures dipped to 132 in the week
Housewives
ended Aug. 28 from 154 in the preceding
week, Dun & Bradstreet,
Inc., notes. This decline brought casualties down moderately from
the 164 occurring in the comparable week a year ago and the 143
1
in the 1950 week.
of 229 which
Failures remained 43%
Liabilities
of $5,000 or more,
struction
and
commercial service.
Casualties
less
were
The interest in television sets
earlier; the sharpest gains
and Pacific Coast.
con¬
August
numerous
a
in four
ago
year
volume
the Middle
areas:
of
Dun
&
of 31
foods
total
sum
of
the
price
Wholesale Commodity Price Index Eases
in Latest
292.64
with
on
Aug. 26,
298.83
against 293.76
as
the
on
corresponding
a
last
year,
or
a
as
well
old
The
plus
a
large
carryover
showed
strength at times, however,
insist
with
The
contradiction
€00,000 bushels for the week.
their failure to deal in
Corn prices were mostly steady to
in
light and supplies of
reported light. The oats market
unsettled and prices declined on news that the
carryover in
in
was
Canada
most
sections
were
the largest since 1944.
was
Average daily sales of all grain
Chicago Board of Trade last week
totaled about 44,000,000 bushels, against
50,000,000 the week before,
and 34,000,000 in the same week a
year ago.
and
soybean
futures
Domestic flour
were
the
bookings
activity developed
wheat flour
on
at
the
were
slow most of the week but
week-end.
Moderate
sales
of
some
Spring
sack.
Export flour business was negligible. Cocoa prices turned
upward the past week, marking the first advance in six weeks.
Better manufacturer
interest, short covering and strength in for¬
eign markets accounted for the rise. Warehouse stocks of cocoa
totaled
128,328 bags, up from 127,785 last week, and compared
bags a year ago. Demand for coffee was quite active
with prices holding firm, bolstered
by expectations of smaller
exports from Brazil.
with 193,493
under
pressure
of
upward, influ¬
following the an¬
nouncement
of
higher
Government
ceilings for cottonseed oil
products. All classes of livestock worked lower as market re¬
ceipts increased. Cattle marketings were the largest of any week
this year.
Cotton
prices
fluctuated
lower for the week.
due to lessened mill
need
York
last
the
irregularly and closed moderately
Following early firmness, prices eased, largely
buying as a result of a slackening in demand
a
there
were
ended
Aug. 23,
week
again failed to
twentieth
consecutive
Estimated volume
regis¬
year.
register
week
in
placed by
was
ported
of
on
the
the
crop progress.
The carryover of all kinds of
1, 1952, totaled 2,745,000 bales, according to the
Census.
same
date
This
a
compared
with
2,278,000
bales
re¬
Federal
price
the
officials
stability
on
and
realistic
a
of
realistic way
a
Trade Volume Stimulated by Seasonal
Buying
in Past Week
The approach of Autumn led many shoppers to increase their
purchases in the period ended on Wednesday of last week. As dur¬
ing the last five months the total dollar volume of retail trade was
slightly larger than a year ago. Reduced price promotions, ex¬
tended shopping hours, and protracted credit terms were used
by
many retailers to sustain shopping.
Increasingly last week clear¬
ance sales of Summer goods were
replaced by showings of Fall
merchandise.
The
totaled
dollar volume
of
the
goods sold in the week in
retail stores
throughout the nation was estimated by Dun & Brad¬
street, Inc. as being from unchanged to 4% larger than that of a
year ago.
Regional estimates varied from the comparable 1951
levels by the following percentages:
New
England and Northwest 0 to
west —1 to
+4; East —2 to +2; Mid¬
+3; Southwest +2 to 4-6, and Pacific Coast 4-3 to -f7.
Suburban stores
generally chalked up more favorable year-toyear comparisons than did large city department stores.
With the end of vacations
quickly approaching, apparel shop¬
debenture
the
option
common
prices
is
convertible,
the
of
holder, into-
stock of the
company at
ranging
from
$4.55
per
share to $6.66 per share.
The de¬
bentures are redeemable at
any¬
time at prices
ranging from 105%
par.
Net
proceeds
of
the
offering*
will be used to
repay a bank loan
of $309,011.42 and the remainder
will be added to the
general
be
funds,
for
used
Among
which
the
are
quisition
of
company':*
the pur¬
funds
such
development
may¬
exploration,
interests
of
ac¬
in
and
prospective
and
oil and gas lands and the
proven
development
of
the
existing properties.
Sapphire
companyV
Petroleums
Ltd., in¬
1934, is engaged in
the
exploration, acquisition and
development of oil and natural
corporated in
lands and the production and
gas
sale
of crude
petroleum and nat¬
The company's activities*
initially confined to Canada
of
States
with
from
rose
Counties,
fiscal
the
is
at
living
fact
a
that
the
high
new
Presidential campaign
"Step
by
step
cost
of
the
as
begins.
in
the
fiscal
through
many
years, a structure of inflation has
been built into our economy," ob¬
failure
the
serves
"Its
"Survey."
main
parts are the cost of
"compensatory"
"compensate" is
threatening
do to meet
and
labor
defend
policy,
effort
ment
farm
and
long-term
cease
or
with
policy.
that
forces
the
with
rearma¬
direct
the
always popular po¬
been
now
commitment
are
C. L. Kamrath
(Special
other
full-employment
except
by
economists
full
spending
and
others
employment
-
from
Lloyd
the
se¬
offices
at
Euclid Avenue.
Blyth Adds
LOS
to Staff
ANGELES, Calif.—William.
B. Clemmer has been added to the
staff of Blyth &
Street.
Co., Inc., 215 Wesfc
Sixth
policy
McCIuney Adds
other forms of governmental
intervention
Calif. —C.
engaging in
rational¬
inflationary methods.
"Many
and
a
is
business
South
Opens
to The Financial Chronicle)
PASADENA,
Kamrath
ized and given statutory sanction.
There is little that government
'compensatory' fis¬
the full-employment
commitment, the easy-money bias,
not
Cooke has
Walston,
91
government,
These
that
now
ANGELES, Calif.—Edward
joined the staff ofr
Hoffman, & Goodwin,
550 South Spring Street.
H.
curities
cal
policy,
(Special to The Financial Chronicle)
gal spending,
can
pro¬
LOS
of
government has assumed responsi¬
bility for full employment. Prodi¬
litically, has
which,
upon
With Walston, Hoffman
year
1950, declining to 27
policy
cially
Kansas,
presently located 23
ducing oil wells.
in 1951."
The
acquisition of varying in¬
budgetary deficits
one
1946 to 36 in
the
in
economic
affairs,
price,
though they recognize that
wage controls.
They must be these devices must produce creep¬
adequately dealt with before the ing inflation.
Gradual
currency
even
and
to Staff"*
(Special to The Financial Chronicle)
ST.
LOUIS, Mo.
Farland
has
been
—
Derrill Mc-
added
to
the
staff of McCIuney & Co., 418 Olivet
depreciation, they think, is a lesser Street.
garded with reasonable assurance. evil than mass unemployment and
"The keystone of the inflation¬ other hardships that free enter¬
With Waddell & Reed
ary structure is the cost of gov¬ prise and stable currencies some¬
AUGUSTA, Maine—Margaret L.
ernment.
In the last seven fiscal times entail. Such economic
|mod-
future
years
of
the
dollar
can
be
re¬
the Federal Government has
ernists'
are conveniently prone to
forget the sufferings of the pen¬
sioned,
the
widowed,
and
the
cluding
the
fallen
Second
World
War.
historical
fact
power
that
has
excessive
consistently
short of been abused.
They assume that
Annually creeping inflation can be de¬
messages to Con¬ pended upon to creep and not to
gress have paid lip service to the gallop, an assumption contrary to
need for economy, and annually the teachings of experience."
Congress has set out to achieve
meeting
the
$17
the
political
billion
expenditures.
President's
by trimming the Presi¬
budget. The final accom¬
plishment in that direction has
economy
dent's
been
pathetically
small.
Some
of Congress admit that
the budget is now beyond control
members
and that determined measures will
be needed
til
to
regain control.
Un¬
such
cost of
measures
are taken, the
government must continue
exorbitant.
"The
contagion
of
fiscal
irre¬
sponsibility apparently has spread
to
the
"The
a
States," the editorial adds.
Tax
Foundation
has
issued
report showing that the number
With Olson,
(Special
ST.
to The
Donnerberg
Financial Chronicle)
LOUIS, Mo. — Howard R.
has become associated
Olson, Donnerberg & Co.,
Lofgreen
with
Inc.,
509
green
Weber
Olive Street. Mr. Lof¬
formerly with V. C.
Co., and Reinholdt &
was
&
Gardner.
With King Merritt Co.
(Special
to The
EUGENE,
Rogers
is
Merritt &
Financial Chronicle)
Mo.
—
Benjamin
connected
Co., Inc.
with
A.
King
Eckman is with Waddell & Reed,.
Inc.
-
[f
there is
"The
of
zance
has
•
at
in
to
Guaranty Survey," partly responsible for the
present
published by the Guaranty Trust fiscal
disorder, in the opinion of
Company of New York. The edi¬ "The
Guaranty Survey." "The in¬
torial, titled "The Built-in Struc¬ flationary implications of 'com¬
ture
of
Inflation," takes cogni¬ pensatory' fiscal policy are espe¬
issue
Yet this tax burden of $308 billion
year ago.
being
by Mc¬
terests in 1,360 acres of oil and gat?
lands
in
Barton
and
Kingmari
lected during the entire previous other helpless victims of creeping
history of the United States, in¬ inflation. They tend to overlook
Aug.
on
are
country
&
However, it has recently extended
tions
Bureau
this
its activities to the United States*
extracted from the people $50 bil¬
lion more in taxes than was col¬
favorable for
debentures
in
Co., while the
Canadian offering is
being made
by Frame, McFayden & Co.
poses
for cotton goods. Some deterioration in the
crop was reported in
Texas due to lack of moisture but other sections
reported condi¬
cotton
offered
taken from
as
contradiction for Federal officials to
with underlying inflationary
forces is noted in the September
will
After sagging most of the week, lard turned
enced by an advance in cottonseed oil prices
the
par,
to
country-wide basis,
a
way
recorded at concessions ranging up to 15 cents a
Raw sugar prices moved slightly lower
liquidation in the September future contract.
months
index for the week
between
of
corn
18
a
underlying inflationary forces.
for
old
about
of
nondurable lines.
price stability, while failing to deal in
on
the
crop
on
being
York points out it is
insistence
new
with
Monthly publication of the Guaranty Trust Company of New
demand
10,-
on Sept. 2 in the United
States and in Canada. Priced at
Each
slightly larger than that
in
some
recorded.
for cash wheat from both millers and warehouse interests.
Export
sales of wheat continued in
good volume and totaled around
firmer despite the continued splendid outlook for the
the main belt. Country offerings remained
close
a
"Built-in" Structure of Enflation
decline
of wheat
on
first time
New
were
barley and oats.
market
in
volume,
taneously
were
in wheat continued to be the pros¬
record Canadian crop,
a
as
brought to
were
at
Although price movements continued narrow, grain markets
generally trended lower during the past week.
The dominating influence
in
Petroleums Ltd. 10-year 5% con¬
sinking fund debenture**
due July 1, 1962 was made
simul¬
vertible
ural gas.
of 2.1%.
pects for
was
Reserve Board's
declines
week earlier and compared
date
year
1952, decreased 3% below the like period of last
year. In the pre¬
a decline of 6% (revised) was
reported from that of
the similar week of
1951, while for the four weeks ended Aug.
23,
1952, a decrease of 7% was registered below the level of
a year
ago. For the period Jan. 1 to Aug
23, 1952, volume declined 10%
under the like period of the
preceding year.
The daily wholesale commodity price index, compiled
by Dun
closed
a
ceding week
Moderately
It
with
par
of the Southwest
even to about
5% below the like 1951 week.
According to the Federal Reserve Board's
index, department
store sales in New York
City for the weekly period ended Aug. 23,
Week
Bradstreet, Inc., declined moderately last week.
a
trade observers at
in
'
orders
For the
trade
gain
which
pound
per
on
drop of 2% below the like period of the
preceding
Retail
any
general use and its chief function is to show the
general trend of food prices at the wholesale level.
&
a
new
represents the
re¬
rose
tered
wholesale food index edged higher
high for the year although movements
among individual commodities were irregular. The Aug. 26 index
at $6.70, was up slightly from $6.69 the week
before, but showed
a drop of 2.8%
from the corresponding 1951 level of $6.89.
The index
about
was
promotions
wholesale
Federal
Bradstreet
a
canned
2% above the level of the preceding week. For the
four
weeks ended Aug. 23, 1952, sales reflected an
increase of 1%. For
the period Jan. 1 to Aug.
23, 1952, department store sales
Wholesale Food Price Index Rises Modestly to Set
New Peak for Year
The
in
was
and
Debentures Offered
Offering of $2,000,000 Sapphire
Laughlin, Ruess
Department store sales
the
1952,
last week to reach
cuts
made in parts
were
reports of slow deliveries in
Mild declines prevailed in most other regions, but
casualties in the Pacific and West North Central States
dropped to
less than one-half their totals in 1951.
'
furniture
earlier.
year
Atlantic, East North Central, East South Central, and West South
Central States.
)
earlier
year
Trading activity in most of the nation's wholesale markets
during the week held close to the increased level of the previous
week as the usual
pick-up in buying in preparation for the Fall
selling season continued. As during recent weeks, the total dollar
of the
seven
a
cold
Sapphire Petroleams
ago.
better results than had been
anticipated.
nine major regions, including New
England, the East North Cen¬
tral and the Pacific States.
The only increase occurred in the
Middle Atlantic States. The East South Central held
steady. More
businesses succumbed than
oleomargarine,
year
Retailers of household goods in most
parts of the nation
consumer demand as rising
steadily.
than last year in all lines.
Geographically, the week's mortality dipped in
the level of
over
a
ported
showed
place in
mortality during the week. A sharp drop took
wholesale trade, while mild declines were noted in retailing,
they did
beverages.
and less than that volume de¬
lower
for food than
more
The most perceptible rise
call for frozen
foods,
below the prewar level
creased the past week and were less than a year ago.
All industry and trade groups except manufacturing
spent
the
recorded in 1939.
were
25*
Chronicle
The Commercial and Financial
26
...
Thursday, September 4, 1952
(842)
ADDITIONS
* INDICATES
SINCE
Registration
Securities Now in
•
•
it Allpark Finance Co., Inc., Houston, Tex.
Aug. 28 filed $500,000 of 6% sinking fund convertible
30, 1962; 29,180 shares
stock (no par); and
22,347 shares of common stock„ (no par). Price—For
debentures, at face amount; for preferred stock, $10 per
September 5, 1952
Artloom Carpet
preferred and common stock, none,
through Marion R. Allen, President.
Huyck
Peabody
of common
cent), pursuant to option to purchase
(par
one
additional
as
share.
compensation. Price—15
Proceeds—To
& Co.,
(Drexel
&
(Bids
—
Co. and M. S.
Gerber, Inc., both of New York.
Appalachian Electric Power Co. (9/23)
27 filed $17,000,000 of first mortgage bonds due
1982 and $6,000,000 of serial notes due 1956-1967.
Pro¬
ceeds—To repay bank loans and for new construction.
Underwriters—To be determined by competitive bid¬
ding.
Probable bidders: Halsey, Stuart & Co. Inc.; The
First Boston Corp.; Kuhn, Loeb & Co. and Union Secu¬
rities Corp. (jointly); Harriman Ripley & Co., Inc. Bids—
To be received by company at 11 a.m. (EDT) on Sept. 23.
Power
—
purposes.
For
new
construction
and
other
(Bio's
(Bids
General
Webber,
(Paine,
Securities Corp. (jointly); Union Securities Corp.; Blyth
& Co., Inc.; Merrill Lynch, Pierce, Fenner & Beane.
2 Rector
received
up
to noon
(EST)
on
(Robert
Garret
and
Haloid
Sons;
&
selling stockholders. Underwriter
—
CO.;.
.
($1
Co.)
Boston
Debentures
(Halsey,
Stuart
Peak Uranium,
&
&
Inc.)
Co.,
Co.)
Common
Ltd
(Gardner
Duquesne Light Co
11
Pfd. & Common
Co.,
&
lnc.»
Herrick
Co..
&
Inc.)
Republic
Co.,
Common
of
Inc.)
outstanding indebtedness and the re¬
company's construction program. Un¬
derwriters—Harriman Ripley & Co., Inc. and Hemphill,
mainder
reduction of short-term notes
payable. Underwriters—
Goldman, Sachs & Co. and Merrill Lynch, Pierce, Fen¬
ner &
Beane, both of New York.
Associates Investment Co.,
Sachs & Co.,
Bonds
ancl Merrill Lynch,
Fenner
&
Standard Oil Co.
Read
Co.
Central Illinois Public Service Co.
.Debentures
Stanley
&
Co.)
able
September 18, 1952
June 25 filed 1,000,000 shares of common stock
(par $10).
Price—To be supplied by amendment.
Proceeds—For
General
Bronze
(Reynolds &
Co., New York.
Co.)
September 22, 1952
Duquesne Light Co
ment withdrawn.
Oil, Ltd., Calgary, Alberta, Canada
Aug. 8 filed 1,000,000 shares of common stock (par 50
cents—Canadian). Price—About $2.50 per share. Pro¬
—
For
repayment of bank notes and for general
Underwriters
—
In
the
United
States—Lehman
(Bids
• Bankers Fire & Marine Insurance Co.
(letter of notification) 24,000 shares of capital
stock (par $5) to be offered for
subscription by stock¬
holders of record Aug. 20 at rate of two new shares for
each five shares
held; rights to expire at 2
Sept.
20.
Fractional shares will not be issued.
Price—$9 per
share. Proceeds
For additional
working capital and
surplus. Office
321 North 23rd
St., Birmingham, Ala.
Underwriter—None.
Central
Bonds
'
&
11
Co
Witter
(Dean
p.m. on
11
&
Central
Bonds & Pfd.
September 24, 1952
Inc.
Co.,
and
First
E.
Boston
(Offering
underwriting)
*-
.
Co.,
-Common
Inc.)
Washington Water Power Co
(Bids
noon
October
United Gas
—.Debentures
11:30
October
Electric
a.m.
8,
Power
(Underwriter—to
Boston
Philadelphia
San Francisco
Private IVires
Pittsburgh
Chicago
Cleveland
October
Utah Power &
all
offices
Lv
EST)
1952
Co
be
(letter of notification) 50,000 shares of commor
cents). Price—At market (about 25 centf
Proceeds—For working capital.
Office—
Waynesburg, Pa.
Underwriter—Greenfield & Co., Inc.
stock (par 10
share).
York.
New
•
.
.
Corp., Reno, Nev.
Aug. 18 (letter of notification) 200,000 shares of commor
stock. Price—$1 per share. Proceeds — For equipmen
purchases, operating fund, and retirement of indebted¬
ness.
Business—Manufacture of electric driven platforn
units and other products. Office—139 North Virginia St.
Reno, Nevada. Underwriter—None.
Challenger Manufacturing
it Chapman Machinery Corp., Tampa, Fla.
Aug. 25 (letter of notification) demand promissory 21/4<ft
notes (with collateral right to participation in percent
15, 1952
noon
Underwriter—Swift
Common
named)
Bonds
Light Co
(Bids
to
1952
Corp
(Bids
California
Bonds
EST)
7,
.
per
Freightways, Inc
&
Fuget, the selling stockholder.
Co., Chicago, III.
Aug. 21
Common
to stockholders—no
Paper Co., Muskegon, Mich.
.
Co
(Blyth
Bids—Ten¬
(CDT)
to 11 a.m.
up
Henke
Corp.)
September 30, 1952
Consolidated
Salomon
Century Natural Gas & Oil Corp.
September 25, 1952
Iowa Public Service
Inc.;
•
Common
The
& Co.
Stuart
6 (letter of notification) 300 shares of common
stock (par $1). Price—$9 per share. Proceeds—To Marie
Long Island Lighting Co
&
Halsey,
Aug.
—
(Blyth
bidders:
Hutzler; Lehman Brothers; Kuhn, Loeb & Co.
Allyn & Co., Inc.; The First Boston Corp.;
C.
Co.)
CDT)
a.m.
Service Co. .(9/23)
Blyth & Co., Inc.; Equitable Securities Corp.
Preferred
Central Illinois Public Service Co
(Bids
Public
tatively expected to be received
on Sept. 23.
edt)
a.m.
Water Service
A.
and
September 23, 1952
Appalachian Electric Power Co
Bonds & Notes
California
&
Bros.
Co.)
-
New York
Probable
Preferred'
Witter
(Dean
Illinois
du^ Sept. 1, 1982. Proceeds—For new construction. Un¬
derwriter—To be determined by competitive bidding.
Common
San Jose Water Works
and The First Boston
Ai*g. ;18 filed $5,000,000 first mortgage bonds, series E,
EDT)
noon
(Offering to stockholders—no underwriting)
(Bids
Aug. 25
EDT)
a.m.
Pacific Telephone & Telegraph Co
.
Bros., New York, N. Y.; in Canada—W. C. Pitfield & Co.,
Ltd., Montreal, Que. Offering—Expected today (Sept. 4j.
11
Pacific Power & Light Co
Inc.
Sept, 23>?
Bonds
(Bids
Banff
Co.,
Blyth &
(jointly); Kidder, Peabody & Co. and Union Se¬
curities Corp.
(jointly); Lehman Brothers and Bear,
Stearns & Co. (jointly); Merrill Lynch. Pierce, Fenher &
Bepne./ Bids—To be received up to 11 a.m. (CDT) on
expenditures.
Underwriter—Smith, Barney &
Offering—Postponed indefinitely; state¬
bidders:
Corp.
..Common
Corp
(9/23)
Aug. 18 filed 50,000 shares of cumulative preferred stock
(par $100),.; Proceeds—For construction program. Under¬
writer—To be determined by competitive bidding. Prob¬
Inc.)
(Indiana)
(Morgan
Atlantic Refining Co.
&
the
for
Noyes, Graham, Parsons & Co., both of New York.-
Pierce,
Beane)
Columbus & Southern Ohio Elec. Co.__Pfd. & Com.
(Dillon,
$12,500,000 of long-term notes, will be used to retire
about $9,000,000 of
September 17, 1952
(Goldman,
cumul. convertible
rights to expire on Sept. 17. Price—$53 per
Proceeds—Together with proceeds from sale
share flat.
Southwestern States Telephone Co
(Central
Corp., Syracuse, N. Y.
shares held;
Com."'
Debentures &
Carrier
preferred stock (par $50) being offered for subscription
by common stockholders of record Sept. 3, 1952 at rate
of one share of preferred stock for each 11 common
EDTi
a.m.
Brooks
W.
(Barrett
Straus, Blosser &
•
Aug."15 filed 78,734 shares of 4.8%
Preferred
(Bids
Toronto, Canada
May 22 filed (amendment) 300,000 shares of common
(par $1). Price—$1.25 per share
Proceeds—For
development expenses and general corporate purpose*
Underwriter—Frank P. Hunt & Co., Inc., Rochester, N Y.
stock
September 15, 1952
Devil
to
per
Cardiff Fluorite Mines, Ltd.,
Corp.)
Cincinnati Enquirer
common
Associates Investment Co.
(9/17)
Aug. 27 filed $30,000,000 of debentures due Sept. 1, 1962.
Price—To be supplied by amendment. Proceeds—For
funds.
&
&
stock
Preferred
First
(The
McDowell, Detroit, Mich.
ceeds
Beismer
Moroney.
Southeastern Fund
stock (no par). Price—$8.25 per share. Proceeds—To two
(letter of notification) 60,000 shares of capital
be offered by Crystal Oil Co." Price—A,t par
share).
Proceeds—To develop oil properties.
Office—511 Carson St., Carson City, Nev.
Underwriter—
Kalmanir, Kline & Co., Las Vegas, Nev.
July 18
„
..Preferred
Peabody
Kidder,
Canoga Oil Co., Carson City, Nev.
Webster
&
Co.
(P.
•
Stone
Farmer Bros. Co
it Artloom Carpet Co., Inc. (9/5)
Aug. 27 (letter of notification) 8,500 shares of
capital
Curtis;
&
and Mitchum, Tully & Co. h,
Under¬
writer—Burnham & Co., New York.
September 12, 1952
Sept. 9 at
St., New York 6, N. Y.
Jackson
Securities Corp.,
shares to be
270,000
Proceeds—To be added to general funds.
par..
VX;.
Houston Natural Gas Co.__
Superior;
of New
"option
to officers and employees; and 240,000 shares to be under option to underwriters. Price—At
_.„.%Common
Telephone Corp._
Palmer
400,000 shares to New Superior Oils of
and
associates
under
Invited)
September 11, 1952
corporate
bidding. Probable bidders: Halsey, Suart & Co. Inc.;
Equitable Securities Corp. and Central Republic Co.
(Inc.) (jointly); Lehman Brothers and Stone & Webster
and
Equip. Trust Ctfs.
Gulf, Mobile & Ohio RR
of
Canada, Ltd.; 100,000 shares to be offered to employees
Co •
&
by stockholders
Sept. 18); 400,000 shares have been sold to latter named
company
':
-Debentures
Forgan
subscription
for
(Sept'." 4)
;").
Stendel Oil Corp. of record Aug. 27 (with rights to expire
EDT)
neon
(Glore.
Underwriters—To be determined by competi¬
be
v
Equip. Trust Ctfs.
Erie RR.
tive
Bids—To
stockholders)
to
September 10, 1952
&
Light Co. (9/9)
Aug. 5 filed $15,000,000 first mortgage bonds due 1982.
Proceeds
..Common
Light Co
Palmer Stendel Oil Corp.
Canadian
•
July 31 filed 3,410,000 shares of common stock (par 25
cents) of which 2,000,000 shares are to be offered today
Co.)
Glenmore Distilleries Co
Aug.
• Arkansas
Simon
B.
(Offering
To lease and
equip plant for manufacture of sodium perborate tetrahydrate and for working capital. Underwriter—Dobbs &
EST)
...Common
(H.
&
general corporate purposes. Office—102 South 12th St.,
Waco, Tex. Underwriter—None.
—Bonds
Co
noon
Rubber Corp
Corp.,
share. Proceeds
Aug.
1952
September 9,
Utah Power
per
for construction program.
Co., San Francisco, Calif.
it Cameron (Wm.) & Co., Waco, Tex.
*26 (letter of notification) 13,900 shares of common
(par $7). Price—$21.50 per share. Proceeds—For
Bonds
EDT)
a.m.
Arkansas Power & Light
Aug. 20 filed 450,000 shares of common stock (par one
$3
Witter &
stock
Blando
—
11.30
Underwriter—Dean
Co.)
Tennessee Gas Transmission Co
by officers and directors.
cent). Price
Debs. & Com.
of Penna
(Weber-Millican
(Bids
Portland, Ore.
Proceeds—To repay loans and
Beane)
&
Sunshine Packing Corp.
(9/23-24)
Aug. 29 filed 80,000 shares of cumulative preferred stock,
series G (par $25). Price—To be supplied by amendment.
Merrill Lynch, Pierce,
Smith, Barney & Co.j
Fenner
American Metallic Chemicals
it California Water Service Co.
Debentures
Co
Co.;
Underwriter—Walston, Hoffman & Goodwin,
Francisco, Calif.
• .
San
September S, 1952
Scott Paper
Jersey City, N. J.
it American Hellenic Mining Development Corp.
Aug. 26 (letter of notification) 100,000 shares of capital
stock. Price—$2 per share. Proceeds—For costs incident
to production of ore from certain mines in Exarchos,
Atalandi, Greece, and related activities. Office—Wash¬
ington, D. C. Underwriter—None, sales to be handled
President.
Preferred
Co.)
(George R. Cooley &
cents per
general funds. Underwriter—West
stock (par $1). Price—At market (estimated at $13 per
share). Proceeds—To Henry C. Maginn, Executive Vice-
Co.)
&
(F. C.) & Sons_._^
Huyck
San Francisco, Calif.
Aug. 15 (letter of notification) 4,100 shares of common
& Sons
Aug. 14 (letter of notification) 800,000 shares
*>
Co., New York.
.Common
—
Blossfr & McDoweil)
(Strauss,
(F. C.)
Simon
B.
Calaveras Cement Co.,
Common
Co., Inc.
(Kidder,
issued
EST)
a.m.
(par 10 cents).
H.
Equip. Trust Ctfs.
<Bids 11
shares of common
Price—$1 per share.
Proceeds—
For expansion, equipment and working capital. Business
—Produces "Lefferts Colorwall Tires," and blank pre¬
forms which are used to make phonograph records.' Of¬
fice—55-01 43rd Street, Maspeth, N. Y.
Underwriter—•
September 4, 1952
Bangor & Aroostook RR
debentures, C. K. Pistell & Co., Inc., New
stock
(9/9)
Corp.
stock
NEW ISSUE CALENDAR
share; and for common stock, $5 per share; Proceeds—
For
additional working capital.
Underwriter — For
American General Oil & Gas Co.
Rubber
REVISED
Aug. 26 (letter of notification) 300,000
10-year debenture notes due June
of 60-cent cumulative preferred
York; and for
with sales to be made
Blando
ITEMS
ISSUE
PREVIOUS
EST)
age
of net income). Price — At par
$500 to $5,000).
Proceeds—For
from
om
194L
C+
Tnmno
TT1
o
(in denomination:
operating capital
TTnilpru'rifpr—,-TMrmF
•
'
'
'
Volume 176
-
*
1
.
Number 5148
.
.
'■
'
The Commercial and Financial Chronicle
.
(843)
Cincinnati Enquirer, Inc. (9/15-16)
July 25 filed $3,500,000 of 15-year sinking fund deben¬
• Farmer Bros.
Co., Los Angeles, Calif. (9/15-19)
Aug. 18 filed 100,000 shares of 6% cumulative convert¬
tures due
ible first preferred
Aug. 1, 1967 and $2,500,000 of 10-year convert¬
ible junior debentures due Aug. 1, 1962. Price—To be
supplied by amendment. Proceeds—To pay notes issued
to
stock (par $10) and 50,000 shares of
common
stock
(par $1).
Price —To be supplied by
amendment.
Proceeds—To purchase from certain prin¬
the Portsmouth Steel Corp.
Underwriter — Halsey,
Stuart & Co. Inc., Chicago & New York. Offering—Ex¬
pected about middle of September.
stockholders 98,625 shares of outstanding second
preferred stock at $1 per| share and 164,654 shares of
★ Columbus & Southern CLiio
The
Electric
Co.
(9/17)
Aug. 29 filed 90,000 shares of cumulative preferred stock
(par $100) and 300,000 shares of common stock (par $5).
Price—To be supplied by amendment. Proceeds—To re¬
pay bank loans and for new construction. Underwriter—
Dillon, Read & Co. Inc., New York.
Continental Oil Co., Houston, Tex.
May 14 filed $26,000,000 of interests in The Thrift Plai
for employees of this
company, together with 400.00€
shares of capital stock
(par $5) purchasable under term#
of the plan.
Underwriter—None.
Deerpark Packing Co., Port Jervis, N. Y.
March 21
mon
(letter of notification)
stock
(par 10 cents).
ceeds—To
RFC
235,000 shares of
Price—$1.25 per share.
loan of
$41,050
Uranium, Ltd.
(Nev.)
repay
for
and
com¬
Pro¬
working
capital.
Peak
—
rehabilitation
Suite 839. 60 East 42nd
Underwriter—Gardner
Di Giorgio Fruit
...
and
development
St
Npw
program
York
17. N
Y
$100,000
(par $5)/ Price—
share). Proceeds—
$19—ask $19.87J/2 per
Joseph Di Giorgio. Underwriter—None, but
Collins, San Francisco, Calif., will act as broker.
Holt &
★ Dorn's Stores, Inc., Los
Angeles, Calif.
Aug. 25 (letter of notification) 22,000 shares of
stock
(par $1.25).
Price—$4.50
three selling stockholders.
Angeles, Calif.
Angeles, Calif.
sham
per
common
Proceeds—To
S^ee St., Los
S^mpieyr^fce^
Office—1722
Underwriter—Edmund
writer—The Wellington Co.,
Flathead
March
21
company at
15
Broad
St., New York 5,
to
up
11
a.m.
Sept. 15.
Duquesne Light Co., Pittsburgh,
Aug, 19 filed $14,000,000
1,
1982.
of
Proceeds—To
first
Pa.
(9/22)
mortgage
reduce
bank
bonds
loans
due
(aggre¬
gating $15,810,000). Underwriters—To be determined
by
cornpetitive bidding.
Probable bidders: Halsey, Stuart
& Co. Inc.;
White,. Weld & Co.; Drexel & Co. and Equit¬
able Securities Corp.
(jointly); Kuhn, Loeb & Co., Union
Securities Corp. and A. C.
Allyn & Co., Inc. (jointly);
Glore, Forgan & Co.: Harriman Ripley & Co. Inc. Bids—
To be received
by the company at Room 1540, 15 Broad
St., New York 5fup to '11 a.m. (EDT) on Sept. 22.
Duquesne Natural Gas Co.
May 28 (letter of notification) 92,783 shares of
stock
(par
one
common
cejit) being offered for subscription
by
six
shares
of
common
stock
for
each
share
of
prefer¬
stock held
(with an oversubscription privilege).
Rights will expire on Sept. 15. Price
$1 per share.
Proceeds—For working capital.
Underwriters—None.
ence
—
Electriglas Corp., Bergenfield, N. J.
Aug. 14 (letter of notification) 300,000 shares of common
stock (par 10
cents). Price—$1 per share. Proceeds—For
working capital. Business—Manufacturers of glass
light¬
ing fixtures. Office—Winsor and New Bridge
Roads,
Bergenfield, N. J. Underwriter—Moran & Co.,
Newark,
New Jersey.
Electro-Components Corp. of America
Aug. 19 (letter of notification) 2,000,000 shares of
,
mon
stock
(par one cent). Price—12 cents
Proceeds—To repay loan from Electronic
and
for
new
equipment
writer—Royal
Securities
per
fcom-
share.
Devices, Inc.,
capital. Under¬
and working
Corp., New York.
.v.)
B
stock
first
(par $1) of which 15,000 shares are being
to persons who
sought to purchase stock
under the offering which commenced in
February, 1951,
but whose purchases could not be
consummated.
The
other 37,500
shares being offered to stockholders of
record Aug. 10 at rate of one new share
for each four
shores of class A and/or class B stock
expire
Sept.
on
working
10.
capital.
Price—$3
Office—265
per
held; 'rights to
share. Proceeds—For
Butler
Street, Brooklyn,
N. Y. Underwriter—Pioneer
Enterprises, Inc., Bluefield,
W." Va. and
Richmond, Va.
'
'/
>
-Farm &
(par $5),
on
rate
of
one
about Sept. 18 or 19
or
share -for
(with
a
each
16-day
standby); 10,000 shares are to be offered to the trustees
of the company's Employees' Profit
Sharing Plan and
Trust; and 5,000 shares to directors and officers of the
and its subsidiaries. Price—To stockholders to
company
•
General Telephone Corp.
stocks of subsidiaries. Underwriters
common
—Paine, Webber, Jackson & Curtis and Stone & Web¬
ster Securities Corp., both of New
York; and Mitchum,
Tully & Co., San Francisco, Calif.
^ Glen Alden
Coal
be supplied
by amendment. Proceeds—For
expansion, reduction of bank loans and other corporate
Underwriters—Robert Garrett & Sons, Balti¬
Md.; Moroney, Beissner & Co., Houston, Tex.; and
Kidder, Peabody & Co., New York. Registration—Ex¬
purposes.
more,
pected to become effective today
Hutzler
as determined by the
directors). Proceeds—For additional
working capital. Office—212 N. Howard St., Baltimore
1,
Underwriter—None.
•
Kuyck (F.-C.) & Sons (9/5)
July 25 (by amendment) filed 750 shares of $2.75 divi¬
dend class A preferred stock
(par $50) and 20,000 shares
of common stock (par $5).
Price — To be supplied by
amendment.
Proceeds
To two selling stockholders.
Business—Mechanical fabrics for industry and blankets
—
and apparel cloth.
New York,
for
Idaho
June
6
common
Maryland Mines Corp.
200,000 shares of common
filed
stock (par $1).
the San Francisco Stock Ex¬
change). Proceeds—To selling stockholder (Gwendolyn
MacBoyle Betchtold, as executrix of the last will and
Price—At
market
testament
of
Calif.
Errol
Home
Loan &
Discount Co.,
Phoenix, Ariz.
July 7 filed 1,613,168 shares of class
.
A
common
stock
(par 25 cents) and 2,744,034 shares of class B common
(par 35 cents), the class A stock to be sold only to
stock
policyholders of The Farm
& Home Insurance Co.
Price
Proceeds—To increase capital. Underwriters—
John J. Rhodes and James E.
McNelis, officers and direc¬
tors of the two
companies.
—At par.
value
of
of
will
stock
shares
Glen
entitled.
of NASD
Bros,
latter
each
stock of Burns Bros. As
may
Alden
Offer
receive
share
will
to
expire
cash
which
on
alternative
an
Oct.
at
market
they
would
3. Members
receive 25 cents for each share of Burns
deposited under plan.
filed
$12,000,000
1972.
Price
—
To
• Growth Industry Shares, Inc., Chicago, III.
27 filed 40,000 shares of capital stock (par $1).
Aug.
Price
—
At
market.
Proceeds—For investment.
writer—Harland Allen
Under¬
Petroleum
convertible
preferred
stock
892 shares of class A common stock
(par
will
be
used
to
certain
$5)
6%
and
The
class A
employees
of the
company for services rendered. Underwriter—Jackson &
Co., Boston, Mass.
pay
•
Haloid Co., Rochester, N. Y. (9/12)
Aug. 14 filed 47,183 shares of convertible preferred stock
(par $50), to be offered for subscription by common
stockholders at the rate of
one
common stock held on or about Sept.
11;
rights to expire Sept. 29. Price—To be supplied
by amendment. Proceeds—To redeem outstanding 8,500
shares of 4% cumulative preferred stock (par $100) and
for general corporate purposes.
Underwriter—The First
Boston Corp., New York.
with
Helio Aircraft
Corp., Norwood, Mass.
July 21 (letter of notification) 3,000 shares of noncumulative preferred stock (par $1) and 3,000 shares
of common stock
(par $1) being offered initially to
stockholders of record July 25 in units consisting of one
common
stock. Price
unit to subscribing stockholders and $27.50 per
unit to public.
Proceeds — To continue development of
per
"Courier"
model
aircraft
and
to
"Helioplane" type of aircraft.
politan Airport, Norwood, Mass.
design
and develop
Office—Boston Metro¬
Co., both of Boston, Mass.
ing
Price—50 cents
development,
made
through
etc.
agents,
who will receive
a
per
share.
(par 10
Proceeds—For min¬
Underwriter—None, sales to be
including officers and directors,
commission of 10 cents per share sold.
Holly Corp. (formerly General Appliance Corp.)
Aug. 6 (letter of notification) 43,000 shares of common
stock (par 10 cents).
—To
Charles
G.
Price—44 cents per share.
Wray,
Price—At
stock and
Proceeds—To
common.
of
6%
one
cent
purchase
Congress Bldg., Miami, Fla.
International
Products
stock, and 275,000
par ($10 per share
share for the
per
oil
leases.
Office
Underwriter—None.
Corp.
(letter of notification) 8,000 shares of common
(par $5). Price—At market (estimated at $11 per
share). Proceeds—To the Ecuadorian Corp., Ltd. Under¬
writer—None, but Hornblower & Weeks, New York, will
act
broker.
as
International Technical Aero
Services, Inc.
Feb. 15
(letter of notification) 300,000 shares of common
(par 10 cents)* Price—,$1 per share. Proceeds—For
working capital. Office—International Terminal, Wash¬
stock
ington National Airport, Washington, D. C. Underwriter
—James T. DeWitt & Co.,
Washington, D. C.
Trust.
Price—At the market. Proceeds—For investment.
—
Securities Co. of Massachusetts,
Underwriter
Boston,
Mass.
+ Iowa Public Service Co. (9/25)
Aug. 29 filed 150,122 shares of common stock (par $5) to
be offered for subscription by common stockholders of
record Sept. 25 at the rate of one new share for each
eight shares held.
Proceeds
—
To
Price—To be supplied by amendment.
off temporary bank loans and for
pay
additions
property
and
improvements.
Underwriter—
None.
Jersey Yukon Mines Ltd., Toronto, Canada
March 20 filed 200,000 shares of common stock
(par $1).
Price—$1 per share (Canadian funds).
Proceeds—For
capital payments on property account and option agree¬
ments, purchase of machinery and operating expenses.
Underwriter—None.
Lawton
Oil Corp., Magnolia, Ark.
(letter of notification) 100,000 shares of common
(no par). Price—$2.25 per share. Proceeds—For
exploration work. Underwriter—W. R. Stephens Invest¬
June 9
stock
ment Co.,
Inc., Little Rock. Ark.
^ Long Island Lighting Co.
(9/24)
Sept. 3 filed 599,942 additional shares of
(no par) to be offered for subscription by
holders of record Sept. 24 in the ratio of
common
stock
stock¬
new share
common
one
for each
seven
—To
supplied by amendment. Proceeds—To finance
be
construction
shares held; rights to expire Oct. 9. Price
program.
Underwriters—Blyth
&
Co., Inc.
and The First Boston Corp., both of New York.
Hixon Placers, Inc., Seattle, Wash.
June 9 filed 787,736 shares of common stock
cents).
for the preferred
—612
stock.
common
preferred share for each
four shares of
—$25
shares of
Corp., Miami, Fla.
notification) 27.500 shares
of
convertible preferred
Aug. 27 filed 500,000 shares of beneficial interest in the
of
(par $1). Price—$5
share. Proceeds—For working capital.
per
(letter
Investment Trust of Boston
Associates, Chicago, 111.
Gyrodyne Co. of America, Inc. (N. Y.)
July 31 (letter of notification) 34,300 shares
cumulative
17
stock
Louisville, Ky. (9/10)
sinking fund debentures due
be supplied by amendment.
Proceeds—To retire long-term debt, to redeem outstand¬
ing 6% cumulative preferred stock (par $50), and for
additional working capital.
Underwriter—Glore, Forgan
& Co., New York.,:.:
7
1,
Office—San
Aug. 19
Glenmore DPstilSenes Co.,
Aug.
Aug.
deceased).
Proceeds—For drilling and equipping well and for work¬
ing capital.
Office—11 Commerce St., Newark, N. J.
Underwriter—Weber-Millican Co., New York.
non-cumulative
common
Bechtold,
Underwriter—None.
(Nev.), Newark, N. J.
(letter of notification) 599,700 shares of class A
stock (par 25 cents).
Price—50 cents per share.
common
July
share for
(qn
Inland Oil Co.
Feb. 26
Inland
Co.
Underwriter—Kidder, Peabody & Co.,
(expected at $16.50 per share),
George R. Cooley & Co., Albany, N. Y., for preferred.
and
Aug. 26
(letter of notification) 13,232 shares of capital
(no par) to be offered i'n exchange share-for-
(Sept. 4).
Brothers
Co., Baltimore, Md.
July 3 (letter of notification) $300,000 of 5% 25-year
notes dated Aug. 1,
1952, to be offered for subscription
by common stockholders. Price—At par (in various units
(9/11)
Aug. 19 filed 350,000 shares of common stock (par $20).
Price—To be supplied by amendment. Proceeds—For in¬
vestment in
Price—To
Francisco.
derwriter—For 28,576 shares, Reynolds & Co., New York.
Underwriters—Chace,
Whiteside, West & Winslow, and H. C. Wainwright &
★
offered
stockholders at
common
on
of
Md.
Co., Monroe, Wash.
filed
share of preferred and one share of
Electronic Computer
Corp., Brooklyn, N. Y.
July 25 (letter of notification) 52,500 shares ox class
common
Petroleum
Philadelphia, Pa.
of which 28,576 shares are to be offered for subscription
shares
stockholders of record Aug. 1 at rate of one new
com¬
mon share for each five
common shares
held, two new
common
shares for each preferred share held
and
new
corporate
^General Bronze Corp. (9/18-19)
Aug. 28 filed 43,576 shares of common stock
become
Underwriters—To be determined by
competitive bidding. Probable bidders: The First Boston
Corp.: Kuhn, Loeb & Co. and Smith,
Barney & Co.
(jointly); Lehman Brothers; Kidder, Peabody &
Co.,
Merrill Lynch,
Pierce, Fenner & Beane and White. Weld
& Co. jointly). Bids—To be
received by the
Sept.
general
600,000 shares of common stock (par
10 cents). Price — 50 cents per share. Proceeds — For
equipment and drilling purposes. Underwriter—None.
struction program.
on
for
ic First Investors Corp., Philadelphia and New York
Aug. 23 filed an aggregate of $23,000,000 of Plans for
the Accumulation of Shares of Wellington Fund. Under¬
holders
1540.
available
be
Business—Coffee processing and selling. Un¬
derwriter—P. W. Brooks & Co., inc., New i/ork. Offering
—Expected third week in September.
stock held as of Sept. 11, with
rights to expire
Sept. 22. Unsubscribed portion to be offered to holders
outstanding $50 par preferred stock on the basis of
two
$25 par shares for each $50 par share owned.
common
stock
J.
con¬
(EDT)
will
remainder
purposes.
Duquesne Light Co., Pittsburgh, Pa.
(9/15)
Aug. 19 filed 140,000 shares of
preferred stocK (par
$50).
Proceeds—To repay bank loans and for
Room
price to be supplied by amendment.
supplied by amendment. Proceeds — For working
capital and to finance inventories and receivables. Un¬
Aug. 7 (letter of notification) not exceeding
market value of class B common stock
At market
(bid
a
be
& Co.. New York.
Corp., San Francisco, Calif.
To Estate of
at
10 shares held
(9/15)
April 7 (letter of notification)
buu,000 shares ui common
stock (par one
cent).
Price—do cenis per sncuc
Pro¬
ceeds— For
stock
common
by
Devil
Office
cipal
27
Treasurer
Proceeds
(20,000
shares), and
George Kleiman, President (23,000 shares). Office—15
Park St., Springfield, Mass.
Underwriter—E. L. Aaron
& Co., New York, N. Y.
McCarthy
(Glenn), Inc.
June 12 filed 10,000,000 snares of common stock
(par 25
share. Proceeds — For drilling of
exploratory wells, acquisition of leases and for general
corporate purposes. Underwriter—B. V. Christie & Co.,
Houston, Tex.
Dealer Relations Representative—George
A. Searight, 50 Broadway, New York, N. Y. Telephone
Price—$2
cents).
WHitehall 3-2181.
Mineral
July
29
per
Offering—Date indefinite.
Exploration Corp.,
filed
2,000,000
shares
Ltd., Toronto Canada
of common stock, each
to have attached an "A," "B" and "C" warrant,
giving the holder the right to buy one additional
share for each two shares purchased in two, three, or
share
each
five years, at $1, $2 and
Houston Natural Gas Corp.
(9/11)
Aug. 15 filed 120,000 shares of 5% cumulative preferred
stock (par $25), with common stock purchase warrants
attached
to purchase one share
of common stock at
$22.50 per share for each share of preferred stock, to be
$3 per share, respectively. Price
shares, $1 per share—Canadian.
Pro¬
ceeds—For exploration, development and acquisition of
properties. Underwriter—Brewis & White, Ltd., Toronto,
offered for subscription by common stockholders at the
rate of one share of preferred for each 3.95 shares of
plied by amendment.
•
—For
2,000,000
Canada.
Names of United States underwriters to be sup¬
Continued
on
page
28
Chronicle
The Commercial and Financial
28
...
Thursday, September 4, 1952
(844)
27
Continued from page
Co.
it Minnesota Valley Natural Gas
notification) 19,780 shares of common
Price—$14.25 per share. Proceeds—For
Aug. 26 (letter of
stock
(par $10).
distribution system and work¬
expansion of natural gas
St. Peter, Minn. Underwriter
Woodard-Elwood & Co., Minneapolis, Minn.
Office
ing capital.
•
—
Inc., Seattle, Wash.
(letter of notification) $100,000 of 7% 10-year
(in denominations of $500 and $1,000
Monty's Stores,
May 16
convertible bonds
shares of common stock (par $10).
(Price—At par.
Proceeds—For working capital and ex¬
pansion. Office—208 Third Ave., South, Seattle, Wash.
Financial Adviser
National Securities Corp., Seattle,
each)
10,000
and
—
Wash.
privately from time to
made
be
Offering—To
time.
60,000 shares of common
stock (par $1) and 240,000 shares of preferred stock (par
$1) to be offered in units of four shares of preferred
stock and one share of common stock. Price—$5 per unit.
(Proceeds—For costs incident to organization and devel¬
opment of business in purchasing and making first and
second mortgage loans; and to exercise an option cover¬
ing sale of income property. Office—114 North Third St.,
Las Vegas, Nev. Underwriter—May be Stone & Youngherg, San Francisco, Calif.
Mexico
drilling
equipment and working
Securities, Inc., Balti¬
new
expenses,
it North American Van Lines, Inc., Fort Wayne, Ind.
Aug. 25 (letter of notification) 20,000 shares of common
stock (no par). Price — $15 per share. Proceeds — For
working capital.
Underwriter—None.
Pacific Power &
Light Co., Portland, Ore. (9/22)
Aug. 22 filed $7,500,000 of first mortgage bonds, due
Sept. 1, 1982. Proceeds—For improvements and additions
to property.
Underwriters—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.,
Inc.; Bear, Stearns & Co., and Salomon Bros. & Hutzler
(jointly); Kidder, Peabody & Co.; Blyth & Co., Inc.;
Union Securities Corp.
Bids—To be received at noon
(EDT) on Sept. 22.
Pacific Western Oil Corp.
Aug. 5 filed 100,000 shares of common stock (par $4).
Price—At the market. Proceeds—To J. Paul Getty, Presi¬
Underwriter
brokers
sales
None,
•—
the New York
on
to
handled
be
by
Stock Exchange.
Pacific Western Stores, Inc., Los Angeles, Calif.
Aug. 8 (letter of notification) 105,000 shares of common
stock (par five cents).
Proceeds—To selling stockhold¬
ers.
Underwriters—White & Co., St. Louis, Mo.; Gear.hart &
Otis, Inc., New York; and Peters, Writer & Christensen, Inc., Denver, Colo.
■•it Paradise on W.ieels, Inc., Phoenix, Ariz.
Aug. 25 (letter of notification) 100,000 shares of common
stock (par $1). Price—$2 per share. Proceeds—For im¬
provements
Central
and
nev/
North
Office—1315
construction.
Ave., Phoenix, Ariz.
Underwriter—None.
Paradise Valley Oil Co., Reno, Nev.
Aug. 20 filed 3,000,000 shares of capital stock. Price—
At par (10 cents per share). Proceeds—To drill six wells
on
subleased land and for other corporate purposes. Un¬
derwriter—None, with sales to be made on a commission
basis (selling commission is two cents per share).
®
Parsonnet TV-Film
Studios,
Inc.
Aug.
20
(letter of notification)
gotiable 10-year corporate bonds
119,880 shares of common stock
$299,700
of
due July
1,
(par
10
6%
ne¬
1962 and
to
cents)
be
offered in units of $100 principal amount of bonds and
40 shares of stock.
Price—$100 per unit.
Proceeds—
For
Farncisco, Calif.
Scott Paper
Co. (9/8)
Aug. 15 filed $2.4,952,800 of convertible debentures due
Sept. 1, 1977, to be offered for subscription by common
stockholders of record Sept. 8 on basis of $100 of de¬
bentures for each 12 shares of common stock held; rights
expire
on
Sept. 23. Price—To be supplied by amend¬
mill at Ever¬
Proceeds—For construction of paper
ment.
ett, Wash., and other construction, and for working capi¬
Underwriters—Drexel & Co., Philadelphia, Pa.; and
Smith, Barney & Co. and Merrill Lynch, Pierce, Fenner
& Beane, both of New York.
tal.
Security Title & Guaranty Co., N. Y.
Aug. 22 (letter of notification) 32,000 shares of common
stock (par $1).
Price—At market (about $2 per share).
Proceeds—To
Investors
of New York.
Underwriter—Dansker Brothers & Co., Inc., New York.
Funding
Sherman Electric Co.,
-capital.
Underwriter—Mitchell
more, Md.
dent,
—
Copper Corp.
July 21 (letter of notification) 496,000 shares of common
•stock (par 25 cents). Price—50 cents per share. Proceeds
—For
it San Jose Water Works, San Jose, Calif. (9/22)
Sept. 2 filed 41,000 shares of cumulative convertible
preferred stock, series C (par $25). Price—To be supplied
by amendment. Proceeds—To pay off bank loans and for
construction. Underwriter
Dean Witter & Co., San
to
it Nevada Mortgage & Investment Co.
Aug. 25 (letter of notification)
New
it Richland Rice Corp., Miami, Fla.
Aug. 25 (letter of notification) 20,000 shares of preferred
stock (par $10) and 4,000,000 shares of common stock
(par one cent). Price—For preferred, at par; and for
common, 2Vz cents per share. Proceeds—To acquire and
develop land for rice culture. Underwriter—None.
construction, equipment and working capital.
Office—46-02 Fifth Street, Long Island City, N. Y. Un¬
derwriter—Trinity Securities Corp., New York. Offering
—Expected today.
new
Penn-AIIen Broadcasting Co.,
Allentown, Pa.
Office—1807-1809 Elm Road, N.
writer—None.
(par $10)
and
(par $10)
to be offered in units of two
shares
and
five
10,035
class
A
4,014 shares of
shares of class A
shares.
Price—$70
common
unit.
television station.
Proceeds—To construct and operate a
Office—Masonic Temple Bldg., Allentown,
per
Pa.
Under¬
Price—
($1 per share). Proceeds—For exploration, devel¬
opment, and mining expenses, and to reimburse Maurice
Schack, Secretary-Treasurer. Business—Quartzite min¬
ing. Underwriter — Northeastern Securities Co., New
At par
York.
Feb. 5
stock
(letter of notification) 60,000 shares of common
and 30,000 warrants to purchase 30,000
(par $1)
shares of
per
Finance Corp.
share
common
on
or
of two
common
^5
share.
per
stock
(warrants exercisable at $7.50
prior to April 1, 1954). Each purchaser
shares will receive
one
warrant.
Proceeds—For working capital.
Oklahoma City,
Okla.
Price—
Office—
Underwriter—George F. Breen,
New York.
Phillips Packing Co., Inc., Cambridge, Md.
(letter of notification) 3,000 shares of common
July 7
.stock
(no par). Price—At the market (estimated a $7 per
-share). Proceeds—To Levi B. Phillips, Jr., Vice-Presi¬
dent, the selling stockholder.
& Sons, Baltimore, Md.
Underwriter—Alex. Brown
Pure Oil share for each
Co. Underwriter—None.
Hickok
into
Pure
subsidiary of Pure
Sweet Grass
Oils,
Canada
Ltd., Toronto,
July 29 filed 375,000 shares of common stock (no
Price—To be related to quotation on the Toronto
par).
Stock
time of offering. Proceeds—For working
capital. Underwriter—F. W. MacDonald & Co., Inc., New
Exchange at
York.
it Television-Electronics Fund, Inc., Chicago, III.
Sept. 2 filed 1,200,000 shares of common stock (par $1).
Price—At asset value, plus sales charge. Proceeds—For
investment. Underwriter — Television Shares Manage¬
Co., Chicago, 111.
ment
Television
Equipment Corp.
Aug. 19 (letter of notification) 1,225,000 shares
mon stock
(par 5 cents) to be issued pursuant
of com¬
to exer¬
warrants. Price—11 cents per share. Pro¬
working capital. Underwriter—Tellier & Co.,
cise of option
ceeds—For
public offering planned.
New York. No
Tennessee Gas Transmission
(9/8)
Co.
Aug. 6 filed $40,000,000 first mortgage pipeline bonds
due 1972. Proceeds—To repay short-term notes. Underwriters—To
be
determined
by competitive bidding.
Halsey, Stuart & Co. Inc.; Stone &
White, Weld & Co. (joint¬
bidders:
Probable
Webster Securities Corp. and
5, N. Y.
New York
St.,
General Production Co.
Texas
2,500,000 shares of common stock (par 50
filed
4
June
cents). Price—To be supplied by amendment. Proceeds—
To buy property for oil prospecting.
Office—Houston,
Tex. Underwriter—To be named by amendment (prob¬
& Co., New York).
July 17 (letter of notification) $135,000 of 3% income
notes, due July, 1962, and 30,000 shares of common stock
(par 10 cents) to be offered in units consisting of $9
principal amount of notes and two shares of common
stock of this company, together with one $9 note and
two common shares of the Wilhead Royalty Co.
Price
attached) and 100,000 shares of common stock (par
to be offered in units of a $100 debenture and 20
shares of stock. Price—To be supplied by amendment.
$1)
Proceeds
To
redeem
sub¬
shares of
6%% cumulative preferred stock (at $11 per share and
accrued dividends), and for additional working capital.
Business—Financing retail sales of house trailers on con¬
—
ordinated
ditional
&
convertible
sales
$53,500 outstanding 5%%
debentures
contracts.
and
10,000
Underwriter—Barrett
Herrick
Co., Inc., New York.
•
Offering—Tentatively postponed.
Texhead
Royalty Co., Houston, Texas
Proceeds—For acquisition of oil and gas
southwest.
Office — 415 San Jacinto
Bldg., Houston 2, Texas. Underwriter—Rotan, Mosle &
Moreland, Houston, Tex. (See also Wilhead Royalty Co.
—$20 per unit.
royalties in the
Southwestern States Telephone Co.
(9/15)
Aug. 25 filed 80,000 shares of common stock (par $1).
below.)
Price
Aug. 21 filed 300,000 shares of common stock (par $1) to
be offered first to stockholders and then to the general
—
To
be supplied
additions and
by amendment. Proceeds—For
improvements. Underwriter—Central Re¬
public Co. (Inc.), Chicago, 111.
^Standard Oil Co.
(Indiana)
(9/17)
Aug. 28 filed $139,647,200 of 30-year debentures due Oct.
1, 1982 (convertible on or before Oct. 1, 1962), to be of¬
fered for subscription by holders of
rate of $100 of debentures for each
held
as
—To
of Sept.
11
shares
of stock
Proceeds
—
Price
To retire
$50,000,000 of 1%% bank loans of company, $25,000,000
of 1.75% notes of Stanolind Oil & Gas Co., a whollyowned subsidiary, payable to banks; and $6,500,000 of
2.75%
notes of Pan-Am Southern Corp., a subsidiary
substantially owned by Standard, payable to banks. Any
remainder will be used for capital expenditures. Under¬
writer—Morgan Stanley & Co., New York.
•
State
Exploration Co., Los Angeles, Calif.
Aug. 6 (letter of notification) 43,000 shares of capital
stock (par $1) being offered for subscription by stock¬
holders of record Aug. 20 at rate of one share for each
10 shares held; rights to expire on Sept. 19. Price—$5 per
share. Proceeds
For expansion program and general
—
purposes.
Office—649
Underwriter
—
S.
None.
Olive
St.,
Los
An¬
Unsubscribed shares
will be sold to "small group of individuals."
n Shake of
Illinois, Inc.
(letter of notification) 22,000 shares of common
stock (par 50 cents) being offered to stockholders of
record July 1 (excepting members of the Belt
family,
about
60%
the common stock) at rate of
shares held, with an oversub¬
scription privilege; rights to expire on Sept. 15. Price—
$3.30 per share. Proceeds—For expansion. Office—1700
W.
own
share
for
every
Washington St., Bloomington, 111. Underwriter—None.
Storer Broadcasting Co.
May 19 filed 215,000 shares of
common stock
(par $1),
being sold by certain selling
stockholders (170,000 to be offered publicly and 10,000 to
certain employees; and 20,000 shares to the underwriters
under option agreement) and the remaining 15,000 shares
being reserved for sale by company to certain employees.
of which
200,000 shares
80,000 shares of common
Price—At the market. Proceeds—
stockholders. Underwriter — Mitchell
Securities, Inc., Baltimore, Md.
Tullahoma Natural Gas Co., Tullahoma, Tenn.
Aug. 14 (letter of notification)
stock
(par 25 cents).
three selling
To
Aug. 18 (letter of notification) 250,000 shares of common
stock.' Price—At par ($1 per share). Proceeds—To con¬
struct
a
new
ment; of 15,000 shares by company, $ 10.62 y2 per share.
general corporate purposes. Underwrit¬
ers—Reynolds & Co., New York, and Oscar E. Dooly &
Proceeds—For
Suburban Propane Gas Corp.
July 24 (letter of notification) an unspecified number of
shares of common stock (par $1), sufficient to sell for
a
total of $20,675.
Price—At market (around $17 per
share). Proceeds—To SBN Gas Co., the selling stock¬
distributing system and for working
gas
Underwriter—None.
capital.
United Film
t,
Service, Inc., Kansas City, Mo.
4,500 shares of common
Proceeds—For working
capital. Office—2449 Charlotte Street, Kansas City, Mo.
Underwriter—Burke & MacDonald, Kansas City, Mo.
Aug. 21
stock.
(letter of notification)
Price—$5.50 per share.
U. S. Airlines,
Inc., Fort Lauderdale, Fla.
Aug. 4 (letter of notification) $210,000 of 7% convert¬
ible equipment trust certificates, series A, due Aug. 15,
1954. Price—At par (in units of $100 and $1,000 each).
purchase of two aircraft. Underwriters—
Richter Co. and Semple,
John R. Kaufmann Co., Scherck,
Jacobs &
Co., Inc., all of St. Louis, Mo.; and Gearhart
York.
& Otis, Inc., New
(Del.)
Finance Corp.
Universal
Omaha, Neb.
Aug. 18 (letter of notification) 30,000 shares of 6% cumu¬
lative preferred stock. Price — At par ($10 per share).
Proceeds—To retire $300,000 of 5Vz% preferred stock of
which
Office—205 Sunderland
Bldg., Omaha, Neb. Underwriter — Kalman & Co., Inc.,
the old Nebraska company of the same name, after
the
St.
are
Price—Of first 200,000 shares, to be supplied by amend¬
[
Corp., Baltimore, Md.
Trans Western Oil & Gas
of
20
brokers.
handled through
Proceeds—For
Steak
July 11
Ltd., Toronto, Canada
public. Price — 60 cents per share. Proceeds—For ex¬
ploration of oil and gas properties, and to drill a test
well. Underwriter—None, but offering to public will be
capital stock at the
17; rights to expire about Oct. 6.
be supplied by amendment.
Torhio Oil Corp.,
companies will be merged.
Paul, Minn.
Utah Power & Light Co.
(9/9)
Aug. 14 filed 167,500 shares of common stock (no par),
to be offered for subscription by stockholders of record
Sept. 5
on
a
one-for-10 basis (with an oversubscription
privilege); rights to expire Sept. 25.
by
directors
on
or
about Sept. 4.
Price—To be fixed
Proceeds—For new
construction. Underwriter—None.
Utah Power & Light Co.
(10/15)
$10,000,000 of first mortgage bonds due
Aug.
14 filed
1982.
Proceeds—To repay bank loans and for new con¬
struction.
tive
Underwriters—To be determined by
bidding.
Probable bidders:
Halsey,
competi¬
Stuart & Co.
Oil
holder.
and BearCorp. and
Blyth & Co., Inc. (jointly); Union Securities Corp. and
Smith, Barney & Co. (jointly); Kidder, Peabody & Co.;
Oil
New
Salomon
5l/z Hickok shares, conditioned
upon
approval of merger of
Products Co., a wholly-owned
—Expected week of Sept. 8.
rants
Co., Miami, Fla.
Pure Oil Co.,
Chicago, III.
July 17 filed 85,688 shares of common stock (no par)
being offered in exchange for 471,287 shares of Hickok
Oil Corp., class A common stock
(par $1) at rate of one
To increase capacity of plant and for working capital.
Underwriter—Weber-Millican Co., New York. Offering
ably Hemphill, Noyes, Graham, Parsons
•
one
Petroleum
July 3 filed $1,000,000 of 6% converxible debentures due
1972 (subordinate) and 450,000 shares of common stock
(par 50 cents) of which the debentures and 400,000 shares
of stock are to be offered in units of $50 of debentures
and 20 shares of stock. Price—$100 per unit. Proceeds—•
Southeastern Fund, Columbia, S. C. (9/15)
Aug. 14 filed $500,000 of 10-yea!t 6% subordinated sink¬
ing fund debentures (with common stock purchase war¬
who
writer—None.
(9/8-12)
ly). Bids—To be received at 11:30 a.m. (EDT) on Sept. 8
at office of Cahill, Gordon, Zachry & Reindel, 63 Wall
common
stock
W., Warren, O. Under¬
Signal Mines, Ltd., Toronto, Canada
July 14 filed 300,000 shares of common stock.
geles, Calif.
common
stock
Inc., Warren, Ohio
Aug. 8 (letter of notification) 20,000 shares of common
stock (no par). Price—$10 per share. Proceeds — For
working capital to produce and sell electrical equipment.
corporate
Aug. 22 (letter of notification)
Corp.
Pennsylvania
Packing Corp. of
Sunshine
Underwriter—None, but Eastman, Dillon & Co.,
York, and/or Bioren & Co., Philadelphia, Pa., will
act as brokers.
Inc.; White, Weld & Co.; Lehman Brothers
Stearns & Co.
(jointly); The First Boston
Bros.
&
to be received up
Hutzler.
Bids—Tentatively schedule^
to noon (EST) on Oct. 15.
j
(Volume 176
Number 5148
.
.
The Commercial and Financial Chronicle
.
(845)
Victoreen Instrument Co., Cleveland, Ohio
Aug. 12 (letter of notification) 4,200 shares of common
stock
(par $1). Price—At the market.
Proceeds—To
Frances
S.
Victoreen, the selling stockholder.
Under¬
writer—Barrett Herrick & Co., Inc., New York.
Byrd Oil Corp., Dallas, Tex.
July 22 it
was announced stockholders will in the fall
receive the right to subscribe for $1,700,000 of 5
first
mortgage (convertible) bonds on a pro rata basis for a
Manufacturing Co., Pittsburgh, Pa.
Aug. 19 (letter of notification) 1,000 shares of common
stock (par 50 cents). Price—At market (about $13 per
share). Proceeds — To Charles S. Payson, the selling
(10/8)
application with the FPC for
authority to issue 350,000 shares of common stock (par
$1), and requested exemption from the Commission's
competitive bidding requirements. Proceeds—To retire
(EST), Sept. 30.
eral
corporate purposes.
Wilhead
July 17
Royalty Co., Houston, Texas
(letter of notification)
$135,000 of 3% income
motes due July, 1962, and 30,000 shares of common stock
<par 10 cents) to be offered in units consisting of $9
principal amount of notes and two shares of common
stock
two
of this
company, together with one $9 note and
shares of Texhead Royalty Co.
Price—
Proceeds—For acquisition of oil and gas
common
$20 per unit.
royalties in the Williston Basin area.
Office—415 San
Jacinto Bldg., Houston 2, Texas.
Underwriter—Rotan,
JVEosle & Moreland, Houston, Tex.
(See also Texhead
Royalty Co. above.)
Wisdom
Magazine, Inc., Los Angeles, Calif.
July 14 filed 6,600 shares of 5% cumulative preferred
(par $100) and 6,600 shares of common stock (par
■$10) to be offered in units of one share of preferred and
rstock
one
share of
common
stock.
ceeds—For working capital.
Price—$110 per unit. Pro¬
Underwriter—None.
Zeigler Coal & Coke Co., Chicago, III.
June 19 (letter of notification) 7,000 shares of common
stock (par $10). Price—$13.25 per share. Proceeds—To
H. M. Rogers, trustee for Nancy Leiter
Clagett and
Thomas Leiter. Office—21 East Van Buren
St., Chicago,
111. Underwriter—Farwell, Chapman &
Co., Chicago, 111.
Mining Co., Salt Lake City, Utah
Aug. 18 (letter of notification) 1,200,000 shares of
com¬
stock (par 10 cents).
than
par
stock
on
Price—At market, but not less
(Current quotation of the company's
the Los Angeles Stock Exchange is seven cents
value.
bid and nine cents offered, if $120,000 gross sales
price is
received by the issue before all shares are
sold, no
further shares will be offered). Proceeds — For Alaska
tin
placer leases, exploration and development, retire¬
debt, and working capital. Office—30 Exchange
Place, Salt Lake City 1, Utah. Underwriter—Samuel B.
ment of
Franklin & Co. of Los
Angeles, Calif.
if Zolite Paint Products, Inc., Meridian, Miss.
Aug.
mon
25
(letter of notification) 500,000 shares of com¬
stock. Price—At par (50 cents per share). Proceeds
—For expenses incident to
stores
as
creation of
a
outlets for company's products
^exploration for minerals, oil and
group
of chain
and for further
in Mississippi. Un¬
derwriter—None, shares to be offered through company
'under
direction of
Alvin
N.
two
gas
Roth, President and'
a
di¬
Electric
filed
company
Power Co.
an
convertible
preference stock issues
(5.50% and
5.60%) or for the discharge of bank loans, or both.
Offering—Expected about Oct. 8. Underwriters—Com¬
has been negotiating with several investment bank¬
Previous public financing handled by Wil¬
liam R. Staats & Co.;
Lester, Ryons & Co.; and Walston,
pany
ing firms.
&
arranged
Goodwin.
through
Previous
Merrill
private
Lynch,
financing was
Pierce, Fenner &
Beane.
Carolina Power & Light Co.
(10/20)
17 it was reported company is planning registra¬
tion late in August of
$20,000,000 first mortgage bonds
due 1982. Underwriters—To be
determined by competi¬
tive bidding. Probable bidders:
Haisey, Stuart & Co. Inc.;
Lehman Brothers; W. C.
Langley & Co. and First Bos¬
July
ton Corp.
(jointly); Kidder, Peabody & Co. and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Equitable Se¬
curities Corp.; Smith,
Barney & Co. and Blyth & Co.,
Inc. (jointly). Bids—To be
opened at noon (EST) on
Central Hudson Gas & Electric
Corp.
4 it was reported
company plans the sale this
Fall of about
$5,500,000 first mortgage bonds. Latest
March
bond
financing was done privately
through Kidder, Peabody & Co.
in
March,
1951
preferred stock (par $100) from 300,000 shares to
330,000
shares.
It is estimated
this
sary
year
that additional
will be in
excess
financing
$8,500,000.
of
neces¬
Connecticut Light & Power Co.
March 1 it
was announced that it is
presently estimated
that approximately
$11,000,000 of additional capital will
be required during the latter half of
1952.
e
Consolidated
26
Freightways, Inc.
applied
to
(9/30)
the
Interstate Commerce
Commission for authority to issue and sell
100,000 addi¬
common stock
(par $5). Business—Sec¬
company
tional shares of
ond
largest motor
common
carrier of
the United States.
general freight in
Underwriters—Blyth & Co., Inc., San
Francisco, Calif., and associates. Offering—Expected late
in September.
Aug.
Power
C. Hamilton
7
•
Erie RR.
(9/10)
announced that
expects to borrow additional money next
Spring to finance its 1953 construction program, which,
1982
and
costs.
use
the proceeds toward its
See under "Securities
1952 construction
in Registration"
in
a
European American Airlines, Inc.
was reported
company plans to raise an addi¬
tional $400,000 of equity
capital. An issue of $200,000
of capital stock was just
recently placed privately at
June 11 it
$7.50
per share.
Underwriter
Otis, Inc., New York.
—
Gearhart, Kinnard &
Fair
Stores, Inc.
No immediate issuance of
any securities is con¬
templated. Traditional Underwriter—Eastman, Dillon &
Co., New York.
Gulf, Mobile & Ohio RR.
(9/10)
Bids
will be received by the
company up to noon on
Sept. 10 for the purchase from it of $4,992,000 equipment
trust certificates to mature
period.
Probable
bidders:
Salomon Bros. & Hutzler.
pre¬
semi-annually over a 15-year
Haisey, Stuart & Co. Inc.;
Proceeds—For repayment of
bank loans and construction program. Underwriters—To
be determined by competitive bidding. Probable bidders:
Haisey, Stuart & Co. Inc.; Paine, Webber, Jackson &
Curtis; White, Weld & Co.
Bangor & Aroostook RR.
Aug. 8
and sell
Oct.
1,
company
(9/4)
applied to ICC for authority to issue
$4,000,000 of equipment trust certificates dated
1952
Oct. 1, 1967.
and
due
semi-annually to
and
including
Probable bidders: Haisey, Stuart & Co. Inc.;
Salomon Bros. &
Hutzler; R. W. Pressprich & Co.; Free¬
Co.; H. M. Payson & Co.; F. S. Moseley & Co.
Bids—Expected Sept,. 4 at 11 a.m. (EST).
man
&
Bemis Bro.
Aug.
30
on
13 it
was
Bag Co.
announced stockholders will vote Sept.
increasing authorized indebtedness by issuance of
$14,000,000 notes.
Corp.; White, Weld
&
Co.
and
Shields
&
C©„
(jointly); Smith, Barney & Co.;
Kuhn, Loeb & Co., Sal9P?1* Bros. & Hutzler and Union Securities Com.
(jointly); Equitable Securities Corp.; Lehman
Brothers?
and
Bear, Stearns & Co.
(jointly); Harriman Ripley &
Co., Inc. Proceeds—For new
construction.
Leonard
Aug. 6 it
Refineries, Inc.
was
reported stockholders on Aug. 26
may vote
an issue of $500,000
-convertible deben¬
or preferred
stock.
Proceeds—Together with funda?
from private sale of
$1,500,000 7-year serial notes, to be
used
toward expansion
program.
on
authorizing
tures
Underwriter—Prob¬
ably Bradbury-Ames &
Co., Grand Rapids, Mich.
•
Long Island Lighting Co.
Aug.
(11/18)
27 company announced its
plan to issue and sell
additional mortgage bonds.
Proceeds—For
construction program.
Underwriters—To be determined
by competitive bidding. Probable bidders:
Haisey, Stuart
& Co. Inc.; W. C.
Langley & Co.; Smith, Barney & Co.;
Blyth & Co., Inc. and The First Boston
$20,000,000
Offering—Tentatively
ber.
Corp. (jointly).
scheduled for sometime in Novem¬
ic Mid South Gas Co.
Aug. 23 it was reported
company has asked the FPC
authority to start work on a $7,000,000
expansion pro¬
An early decision is
expected.
for
gram.
Minabi
Exploration Co., Houston, Tox.
March 21 it
of
was
reported early registration is expected
common stock.
Proceeds—To go to
stockholders.
Underwriter
Moroney
125,000 shares of
certain
selling
—
Beissner & Co.,
Houston, Tex.
March
14
sell
November
in
it
was
reported
company plans to
issue and
an issue of
$8,000,000 first mortgage
Underwriters—To be determined by
competitive
bidding. Probably bidders: Haisey, Stuart & Co.
Inc.;
White, Weld & Co. and Kidder, Peabody & Co.
bonds.
(jointly);
Blyth & Co., Inc.; The First Boston Corp. and W. C.
Langley & Co. (jointly); Equitable Securities Corp. and
Shields & Co. (jointly); Merrill
Lynch, Pierce, Fenner
& Beane; Union Securities
Corp.
New England Power Co.
26 it was announced
company now contemplates
an additional issue of first
mortgage bonds and common
stock in equal amounts, either late in 1952 or
June
early In
1953. Underwriters—For bonds to be determined
by com¬
petitive bidding. Probable bidders: Haisey, Stuart & Co.
Inc.; Equitable Securities Corp.; Kuhn, Loeb & Co.; The
First
Boston Corp.; Merrill
Lynch, Pierce, Fenner &
Beane; Kidder, Peabody & Co. and White, Weld & Co.
(jointly). Proceeds—To repay bank loans (estimated to
be $11,500,000 at Dec. 31, 1952).
was announced stockholders will vote
Sept.
approving certain amendments which would per¬
mit somewhat more long-term debt
provided the com¬
pany raises at least $3,500,000 of additional junior
equity
18
on
capital. Junior stock financing is
tion.
now
under considera¬
Underwriter—Goldman, Sachs & Co., New York.
Idaho
new construction.
Underwriters—To be de¬
by competitive bidding.
Probable bidders:
Haisey, Stuart & Co. Inc.; Lehman Brothers;
Kidder,
Peabody & Co. and Stone & Webster Securities Corp.
(jointly); Equitable
Securities Corp.; Union Securities
Registration — Expected about Nov. 14.
Bids—
Tentatively set for Dec. 15.
Corp.
if Pacific Northwest Pipeline Corp.
Aug. 29 company filed a second substitute application
with the FPC proposing to construct a
1,384-mile trans¬
mission line extending from the San Juan Basin in
New
Mexico
and
Colorado to market areas in the Pacific
Estimated overall capital cost of the
project
$179,000,000. Financing is expected to consist of first
Northwest.
is
mortgage pipeline bonds, and preferred and common
stocks, and is expected to be completed by
April, 1953.
Underwriters—White, Weld & Co.
and Kidder, Peabody
& Co., both of New
York, and Dominion Securities Corp.,
Ltd., Toronto, Canada.
•
Pacific Telephone
& Telegraph Co. (9/22)
authorized by the California P. U.
for subscription
by stockholders
additional 703,375 shares of common stock
(par $100)
an
in
the
ratio
common
or
to
of
reported company has granted an option
to Wegener & Daly
Corp., Boise, Ida., to purchase until
Dec. 31, 1952, up to 21,000 additional shares of
4% cumu¬
lative preferred stock at 100 and accrued
dividends.
was
if Idaho Power Co.
Underwriters
—
Blyth
&
Co., Inc.,
and Lazard
Freres & Co., both of New York.
Industrial Research, Inc.,
Miami, Fla.
July 15 stockholders were scheduled to approve an of¬
fering of 225,000 additional shares of common stock
(par $1);
Underwriter — Barham & Cleveland, Coral
Gables, Fla.
one
new
share
&
for
each
nine
shares
of
American Telephone
Telegraph Co., the parent, presently owns approxi¬
mately 90% of the outstanding common stock. Proceeds
—To repay construction loans and for
further expansion.
Underwriter—None.
•
Pacific
Offering—May be made
on
Sept. 22;
Telephone & Telegraph Co.
(11/18)
Sept. 3 California P. U. Commission approved a
proposal
the company to issue and sell
$35,000,000
authorizing
of
debentures due Nov. 15, 1979.
Proceeds — For re¬
payment of advances and bank loans and for new con¬
struction.
Aug. 20 company applied to FPC for permission to issue
and sell up to 225,000 additional shares of
common stock
(par $20) and requested that the issue be exempted from
competitive bidding. Proceeds — For construction pro¬
was
offer
preferred stock held.
Power Co.
Aug. 19 it
gram.
New
Orleans Public Service Inc.
(12/15)
July 24 company announced plans to issue and sell $6,000,000 of first mortgage bonds due Dec. 1, 1982. Pro¬
Commission
Aug. 20 it
bonds, series H, due 1982.
Issue
Co., Inc. and Lazard Freres & Co.
(jointly); The First-
Sept. 3 company
Hecht Co.
ceding column.
Associated Telephone Co., Ltd. (Calif.)
June 9 it was reported company
may issue and sell in
'October about $8,000,000 to $9,000,000 of first
mortgage
to
termined
the company
it is estimated, will involve $29,500,000. On
Sept. 9, it is
expected that the company will sell at competitive bid¬
ding an issue of $15,000,000 first mortgage bonds due
plans
ceeds—For
shares.
Light Co.
Moses, President,
&
Hutzler; Harris, Hall & Co. (Inc.).
Aug. 19 stockholders approved proposals to increase the
authorized indebtedness from
$12,000,000 to $25,000,000
and authorized common stock to
5,000,000 from 2,500,000
&
it
—
Bids will be received by the
company up to noon (EDT)
on Sept. 10 for the purchase from
it of $2,880,000 equip¬
ment trust certificates to mature
semi-annually from
March 15, 1953 to Sept.
15, 1962, inclusive. Probable
bidders: Haisey, Stuart & Co.
Inc.; Salomon Bros &
Food
Prospective Offerings
that
about
Mississippi Power & Light Co.
Central Maine Power Co.
May 15 stockholders increased authorized common stock
(par $10) from 2,500,000 shares to 3,250,000 shares and
rector.
Arkansas
announced
first
Oct. 20.
Aug.
Zenda Gold
mon
California
Aug. 11
Hoffman
Westinghouse Electric Corp.
Aug. 27 filed 150,000 shares of common stock (par $12.50)
to be offered under "employees stock plan" to
employees
of corporation and six subsidiaries. Proceeds—For
gen¬
company
in
1952
Boston
Dallas Rupe & Son, Dallas, Tex.; Carl M.
Loeb, Rhoades & Co., New York; and Straus, Blosser &
aiey
be received up to noon
sell
Probably
McDowell, Chicago, 111.
Washington Water Power Co. (9/30)
Aug. 27 filed $30,000,000 of first mortgage bonds due
Oct. 1, 1982.
Proceeds—To repay part of outstanding
bank loans.
Underwriters—To be determined by com¬
petitive bidding. Probable bidders: Haisey, Stuart & Co.
Inc.; Blyth & Co., Inc., Smith, Barney & Co. and White,
Weld & Co. (jointly); W. C. Langley & Co. and The First
Boston Corp. (jointly); Union Securities
Corp. and Lehiman Brothers
(jointly). Bids—Tentatively expected to
4
and
standby
(certain
stockholders
have
waived
rights). Proceeds—To repay bank loans and for
development and exploration expenses. Underwriters—
their
stockholder.
Underwriter—None, but Townsend, Dab& Tyson, Boston, Mass., will act as broker.
Kansas City Power &
Light Co.
Jan.
$12,000,000 principal amount?mortgage bonds. Underwriters
To be
deter¬
mined
by
competitive
bidding.
Probable
bidders:
Haisey Stuart & Co. Inc.;
Glore, Forgan & Co.; Blyth?
14-day
Vitro
29
Underwriter—To
be determined by
competi¬
bidding. Probable bidders: Haisey, Stuart & Co.
Inc.; Lehman Brothers and Union Securities
Corp.
(jointly); White, Weld & Co.; Morgan Stanley & Co. Bids
—Tentatively set to be received at 8:30 p.m. (PST) on
tive
November 18.
Permian Basin Pipeline Co.,
Chicago, III.
April 1 company applied to FPC for
authority to con¬
struct a 384-mile pipeline
system from west Texas and
eastern New Mexico to the
Panhandle area of Texas at
Continued
on
page
30
30
Continued jrom page
Boston Corp.,
Thursday, September 4, 1952
...
Halsey, Stuart & Co. Inc.; The First
Harriman Ripley & Co., Inc. and Goldman,
Sachs
Co.
(jointly);
&
Co.
and
Equitable
Securties
Bids—Tentatively
Terminal Co.
Northern Natural Gas Co.
&
Weld
and New Orleans
ing bond maturities of Southern Ry.
and Glore, Forgan & Co., both of New York.
of this company, 51% is now owned by
bidders:
Probable
include
may
Proceeds—To meet in part the outstand¬
Stanley & Co.
stock
the
Of
and Financial Chronicle
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.; Morgan
for convertible notes and
ties Corp.;
bidders
If offered competitively, the
rules.
29
$58;180,000. Probable underwriters
stock; Stone & Webster Securi¬
estimated cost of
an
Commercial
The
(846)
scheduled
for
Oct. 7.
Southwestern Public Service Co.
respect
exemption from competitive bidding with
an
(par $6.66%).
stock
common
Proceeds
ended
$1,100,000 of unsecured notes and for additional
repay
stock
construction. Traditional Underwriters—For stock, Stone
& Webster Securities Corp., New
&
and
financing
proceeds
for
bond
and
the
also be necessary; this previously
tive
privately.
stock (par
natural
•
United
for
jrom
page
the
usual
new
Corp.
was
reported that the corporation may issue
the
(10/7)
sold and only poor varieties
the quality
and
Thus yields
saved for seed.
were
of crops deterio¬
rated year by year.
The Servicio
had demonstrated on
the
methods
better
would make.
small scale
a
selected
difference
and
seed
cultivation
of
In
1947, a seed test¬
ing and distributing agency was
set up in the agricultural Servicio.
That year almost 50,000 pounds of
fresh, vigorous seeds were made
The Government
much attention.
of Paraguay is
financing the pro¬
gram and the cooperative Servicio
is providing the technical assist¬
ance.
The pilot colony began sev¬
eral
Later,
new
a
building
colony,
57 picked
and larger
with
ago
years
families.
the
the United
of the Mississippi. At
west
by
ail
first, 40 United States technicians
worked with 500 Brazilians on this
100,000 families, is attracting
fect
covered
States
people scattered
as large as
nearly
area
an
that
Point IV in Latin America
experi¬
not
Today,
program.
single
a
United States technician is in the
Amazon
the
Valley,
carried
by
on
than
Brazilians.
jungle village in the
Amazon Valley, once had an an¬
a
nual death rate of 200 out of every
Servicio
dairy
and
Holstein
establish
a
model
pasturization
plant.
to
was
a
cows
imported and
were
native
cross-bred with
stock that
spoilage of
corn
and beans that annually ran
from
A
help
20
reduce
to
to
30%
of
the
total
crop.
would be immune to certain local
refrigeration
plant in Costa Rica, built entirely
cattle
with
diseases.
The
has
result
grain
advice
while at the
and
time being more
This
resistant to heat and disease.
program
watched with such
was
interest by
the Paraguayans that
resulted
it has
in nationwide im¬
provement in breeding and feed¬
ing
practices
creased
in
and
production
greatly
of
milk
redeem
stock
(par
construction.
new
Weld
&
order
to
underground storage plants
have
that
being
experimentally in the State
the
proved
same
built
of Kansas.
and
Health and
Paraguay set
Probably
ufacturing mixed feed. More than
1,000 tons of balanced dairy feed
prepared
manufactured
at cost.
men
feed
became
concentrates
and
sold
to
were
dairy¬
The demand for the
that
great
so
the
Servicio-operated mill could not
supply it. In order to attract local
businessmen to take
the
over
Sanitation Measures
is
less
than
in Latin
45
years.
85% of the
people are affected by intestinal
disease, and one in every ten of
the rural population suffers from
malaria.
deaths
are
many
More
are
as
half
than
of
all
caused by diseases that
preventable through vaccina¬
tion,
nary
sanitation, and ordi¬
medical precautions.
better
The
ven¬
as
health
and
sanitation pro¬
in the Amazon River Valley
of Brazil illustrates how this type
ture, the Servicio raised the price
to a point that a profit could be
gram
made.
operates. The work there
lias concentrated on reducing ma¬
the
In spite of the rise in
demand
remained
price,
such
that
program
two
laria
up
water-borne
Paraguayan businessmen set
facilities for making the feed.
Now
the two
plants
are
mulas
to
and
are
well
as
typhoid and other
a
in Bolivia, for example, has
gram
assisted
in
of rural
elementary schools in
der to
in
three
the
effort,
these
As
school
home
improved
terials
rural
and
centers
and
their
subposts
min¬
manual
teaching
ma¬
prepared.
The
new
being
already
are
school
supervises
schools in
pro¬
a
its
some
The
area.
Co.,
New
Bolivian
that
cessful
similar systems
suc¬
have
been introduced in
Ecuador, Guat¬
emala,
Panama, Para¬
guay,
The
Honduras,
and Peru.
gram in Brazil has
meet
that
has
and
been
vising trade school
actual
to
local
been designed
nation's
workers
need
for
technicians.
given to
courses
needs
revamping
pro¬
for
teaching
re¬
to meet
workers;
outstanding
$100),
to
retire
Traditional
York.
stockholders.
shares
of
5%
loans
bank
and
Underwriter—White,
Offering—Expected
in
early
tions to solve their most
pressing
economic and social problems. No
developing
suitable
textbooks
the
world's
mutual
and other teaching materials; to
introducing up-to-date systems of other
industrial surveys and vocational gram
effort
best
by
overseas
better
of
examples
democratic
government
fulfills
the
na¬
pro¬
historic
guidance; and to improving shop good
neighbor
policy
of
the
layout and equipment.
United States. The experience of
the
Governments
Receive
Help
Institute
nical
shows
assistance
how
tech¬
be
us
made
can
available
on
a
cooperative basis
only in the Western Hemi¬
have requested Point IV technical sphere but also in other parts of
Some Latin American countries
assistance
in
public
administra¬
individuals and industries; census
and
economic
statistics
furnish the base for economic
velopment and trade. Other
services
sary
are
de¬
neces¬
provided in
com¬
munications, customs, labor, map¬
ping
and
surveying,
railroads,
roads,
tariffs,
taxes,
and
water
transportation.
Increased
production
improved operation of small
and
medium
size
businesses
are
being encouraged by establishing
productivity centers. These are
"know-how" centers to which the
management of smaller industries
for information and advice
can
go
on
operating
the
efforts
of
practices.
these
Through
centers,
it
is
expected that employment oppor¬
tunities will increase, more goods
will be available for use within
the country, and standards of liv¬
ing will rise.
.
Program
Praised
cooperative
technical
as¬
be
accomplished
by
friendly
neighboring nations to meet their
problems.
cooperative
Truman
he
was
issued his
'y "The
It is the kind
effort
the
Point
Four
Institute
vitation
tion
and
undertakes
the
of
with
countries
concerned.
Two-way cooperation is the
for
son
the
Institute's
Through the Institute
works
with
republics
tions,
American
self-respecting
independent but
as
on
'rea¬
success.
country
our
other
the
its
only at the in¬
the participa¬
an
na¬
co¬
operative basis.
"Over
the
stitute's
past
decade, the In¬
cooperative
have touched
programs
directly
or
indirect¬
ly the lives of millions of people
in
Latin
America
the
on
farms,
in the small towns, and in the big
cities.
Malaria and other dread
diseases
are
capital of
ican
a
being conquered. The
leading Latin Amer¬
for
country
now
has
tion
is
the
first
time
safe
system of water
supply and sewage. Another na¬
diversifying its basic ag¬
riculture
to
one-crop
turies
a
in
the
first
uneconomic
pattern established cen¬
ago.
"In the Andes
safety
major pro¬
an
change
region, industrial
provided
experts
by: the
advisors
safety methods in mining. In
Institute
on
the
vast
health
the
serving
are
River
Amazon
centers
help
of
as
Valley,
established
the
with
Institute
and
staffed
by doctors, nurses' and
laboratory technicians, are wip¬
ing out diseases and providing
preventive medical services for
jungle dwellers who
"These
hemisphere
before
other technical
and
projects
contribution
never
attention.
medical
the
to
and
determination
are
to
as¬
notable
a
unity
of the
its
common
prove
that the
to
way
of freedom is better than the
way
of communism."
President
thinking of when
challenge for Point
recently on the
10-year anniversary of the work
in Latin America, the President
said:
program
under
constructive work
Shearson Hammill Adds
IV. In commenting
"The
world
concept.
sistance
sistance program ip Latin Amer¬
ica is a 10-year proof of what can
common
the
had
by President Truman
The
not
gram
industrial
and
of
cooperative education
2,053
dividend rate
a
common
to
other
20
company plans to offer
(carrying
of
administers
nucleo system has proved so
Attention
af¬
and
nucleo
Valley but also from the Rio Doce
Valley.
In the Amazon Valley, 56 health
eventually
simple
and
crea¬
October.
system of 12 nucleos under which Latin American
each
of their
may
clubs
personal
The Servicio is operating
gram.
trained
which
in
training teachers under the
inated, not only from the Amazon
a success
school
normal schools
feed
making
agriculture
of
use
im¬
hygiene, home-life im¬
are
manufacture
cooperative
of
in
skills. Teaching methods are being
to
the
also
but
gardens;
provement,
diseases have been virtually elim¬
A resettlement program in Para¬
R's
through
and
or¬
provide instruction not only
the
of
the
revising the curricula
methods
result
diseases.
of elementary
years
The cooperative Education pro¬
commercial mixing
using the Servicio for¬
businesses.
guay,
as
not
school; and even the most neces¬
sary materials such as paper and
pencils are lacking.
and
Rates
Death
Normal life expectancy
America
man¬
6
completed
ex¬
on job analyses and a proper
balance between theory and shop;
but figures
teaching
for
have
than
more
of whom not only
proved
in¬
better
feeding of cattle, the Servicio in
plant for
satisfactory
so
kind of plants are
training
themselves
grain and also meat
other perishables.
In Para¬
guay,
encourage
up a
the
on
technicians, is
Servicio
of
Cut
In
funds
lack
many
Securities
approving the
on
5%) for subscription by
persons.
teachers,
preserving
meat.
and
Rican
Costa
been a milk cow that yields a
high ratio of milk and butter fat,
same
and
storage
1,000
to vote
$30), part of which the
preferred
for
Union
Bids—Tentatively
21.
convertible preferred stock
based
being
1,000
work
more
Oct.
on
were
in Administration
Cameta,
Corp.;
&. Co.
(jointly);
authorized issue of 500,800 shares of preferred
tion. The Institute, with the help
The cooperative
ence
of the
first, resettled 570
of other United States government
health Servicio opened a health
penniless farmers. These families center in
1945, dug a well to give agencies, has already made avail¬
were
provided
a
proportionate the town a
able to several of these countries
pure water supply, and
available for sale to Paraguayan share
of
78,000 acres of land;
dispensed health education. In the specialists in public administra¬
farmers.
The
demand
loaned enough rioncy to build a
grew
so
tion and government services.
first 4 years, the death rate drop¬
fast that by 1951 more than 1,- home and buy implements, live¬
The importance of this help can
ped to 70 per 1,000.
650,000 pounds, including 87 va¬ stock, seed, and fertilizer; and
be demonstrated with a few con¬
rieties of major crop seeds, were given adequate time to pay off
Education Concentrates
crete examples. Assistance in civil
Similar agricultural
bought by
more
than
10,000 their loans.
on Essentials
aviation is necessary because avi¬
farmers.
development programs are being
In many Latin American coun¬ ation is sometimes the only means
In 1942, not a single cow was carried on through Servicios in
of connecting the outlying sections
tries, few pupils receive schooling
Costa Rica, Haiti, Honduras, Chile,
bred specifically for milk produc¬
with the country's capital, which
beyond the fourth grade; in some
and Uruguay.
tion
in
Paraguay. The scarcity
countries the majority of children is usually the economic heart of
In subsistance farming, harvest
and the high cost of milk made it
complete only one or two grades... the.,nation; materials testing and
prohibitive in the diet of infants, time is feast time; the rest of the Rural school
buildings are often standards are vital to industry and
invalids, and the aged. One of the year is hungry time. In Nicaragua, adobe
huts
with
no
windows; consumers; accurate weather in¬
first projects of the agricultural a Servicio-built storage plant will
there is an inadequate supply of formation affects the efficiency of
on
Stuart
Natural Gas Co.
Proceeds—To
its subsidiaries.
by company and
ister to 2,000,000
an
of about
$60,000,000 of sinking fund
Fall
early
construction
7
1952 expansion
bidders—Halsey,
Securities
be received
stock (par
Gas
over
were
Webster
Western
tion of
Under¬
Underwriters—To be determined by competitive bidding.
competitive
Probable
Sept. 2 stockholders
debentures due 1972. Proceeds—To retire bank loans and
to sell not exceeding $46,000,000 of new
with
•
Sept. 2. The
from Mexico, will reconvene
estimated to cost over $184,000,000.
in
sell
and
Aug. 20 the ICC denied the application of this company
Continued
is
July 25 it
complying
1,406-mile pipeline
a
as
Southern Ry.
without
build
writer—Kidder, Peabody & Co., New York.
—Expected next week.
bonds
&
pected to
Offer¬
ing—Not expected before late in September. Registration
for permission
gas
project
shares held. Proceeds—For expansion and improvements.
Underwriter—Morgan Stanley & Co., New York.
bidding.
extending from Texas into West Virginia and to import
$15) at the rate of one new share for each 10
(10/21)
Underwriters—To be determined by competi¬
Corp.; Salomon Bros. & Hutzler.
posals by this company to
stockholders about 3,180,188 shares of common
.o
Inc.; Kuhn, Loeb & Co. and Wertheim & Co.
Aug. 15 it was announced that the FPC hearing on pro¬
common
on
plans to sell $20,000,000 of first and refunding
program.
Underwriter—Dillon, Read & Co.
may
Stone
Socony-Vacuum Oil Co., Inc.
(EST)
a.m.
mortgage bonds. Proceeds—To complete
Texas-Ohio Gas Co.
July 18 it was announced company plans to offer to its
•
Virginia Electric & Power Co.
company
year
preferred
Inc., New York.
Halsey, Stuart & Co. Inc., and associates.
(jointly).
Sept. 2, Jack C. Holtzclaw, President, announced that the
it is estimated,
$23,000,000
Additional
1953.
the
use
•
Latest bond financing was
Co., San Francisco, Calif.
done by
financing
approximately
31,
Aug.
done
was
York, and Dean Witter
stock
its construction program which,
involve
will
To
—
11:30
White,
Co.,
reported that company may do some addi¬
was
common
toward
first mortgage bonds and 26,775
$1,500,000
to
of
shares
tional
P. U. Commission granted' this
21 the California
Aug.
company
Aug. 4 it
&
Corp.
Registration—Tentatively scheduled for tomorrow
(Sept. 4).
Sierra Pacific Power Co.
Stanley
Morgan
of The Institute
methods, of Inter-American Affairs is
one
(Special
LOS
G.
to The Financial
ANGELES,
Chronicle)
Calif.^-Alfred
Wandmayer is with Shearson,
Hammill & Co.,
Avenue.
520 South Grand
olume
176
Number 5148
.
.
The Commercial and Financial Chronicle
.
(847)
bonds. Three groups will
be bid¬
ding for this piece of business.
The
following
week
will
of the year's largest, if not
largest, "standby" operations
getting underway when books are
Carrier
one
opened on Standard Oil Co. of
Indiana's offering of 139,647,200 of
convertible
sinking
fund
deben¬
Carrier
shares
of
Corp, Offer
4.8%
ferred stock
cumulative
($50
Because this issue will carry the
The dearth of
new
corporate is¬
'persists along with the hot
weather
despite
the
passing of
Labor Day long recognized as the
end of the
holiday
beginning of
of
way
from
conditions
prevailing marketwise
or
fortnight
a
back. True the government
so
market, whatever the basic
dently
reason,
distinctly firmer, but evi¬
appears
it
has
far
not
self
so
are
shareholders
standing
yet
Note
value—con¬
par
market
been
going well it is true. But at
prices which m^an that those who
beeiwlugging
older issues
portions
T^P^|iark
quotations to
move
of
down their
the inventory.
Insurance companies and banks,
it appears,
above
and
in
are
their
no
to
mood
ideas
own
bid
price
on
yield. These institutions still
to be running to mortgages
and'direct deals according to those
seem
in
position
a
to
transpiring.
These
velops,
what
big
lenders, it now
early in
estate
deals
through
to
the
fall. Quite
the
paper
and
taken
Co.
works.
Bankers
an
offering
"rights"
of
to
and
summer
evidently they
early
find¬
are
manner
given
a
to
Go
two
are
stock
issues
behaved
been
than
dealers
in
a
center
or
17,
of
98.815
Some
are
of the opinion
points
in
a
tive call
the
investors
the
Treasury will
Meantime
with
quick
to
25-
MGM
PICTURES
of
an
ing close to
September 16,
on
at
1952.
other
ket
for material
portfolios
trust
of
that fits
pension
accounts.. These
elements,
find
it
is
outlets
50£
the close of
note
placed privately
tional
with
000,000
York,
4V2 %
due June
an
day declared
a
quarterly divi¬
dend of Three Dollars and
Cents
($3.50)
per
for the quarter
share
on
1952, to stockholders of record
the close of business
per
declared
September
ai
tne
15,
close
1952,
of
the
on
Stock of
,
record
the
to
has
A
September
of
com¬
petitive bidding, encountered good
reception when offered to yield a
4% return. Dealers reported 80%
sold in
the first full day, and
say
issue is 90% marketed with
Cumulative
1952
hopes
will
Company,
W.
B.
ASHBY,
September
of
CALUMET
AND
CONSOLIDATED
COMPANY
A
dividend
of
fifteen
cents
ness
($0.15)
per
Trust
Company,
J.
H.
Boston,
was
Mass.
ELLIOTT,
on
share
busy fall
season
Gas Transmission
to
it
the
what
start
when
of
i
§
the Common
declared, payable
on
September 15, 1952.
books
will
not
be
closed. Checks will be mailed.
Wm.
j. Williams,
Secretary
30th
with
firm.
(excluding Saturday) before
payment is made.
The
usual
half-yearly dividend of
days
AND
METALS,
ence
in
over-the-counter
se¬
curities, largely in Municipals.
Box
B 94,
Commercial
and
Financial
Chronicle,
25
on
Park
Place, New York 7.
Dividends
Provincial
National
London,
Strand,
Court,
Bank
Limited,
W.C.2.,
The
Board of Directors haa
declared the following dividends:
PREFERRED
STOCK
Regular quarterly dividend of
$1.06)4 per share, on the 4)4
for examination five clear business days
INC.v
Troy Laundry Machinery
per
Stock, payable October 1, 1952
regular quarterly dividend of
TWENTY-FIVE Cents a share
has been declared,
together with an EXTRA of
TWENTY-FIVE Cents a share.
Both are payable
on September 30,
1952 to shareowners of
record at
the close of business on
September 12, 1952.
H. T.
McMeekin, Treasurer
Tolhurst Centrifugals
Riehle
made.
to shareholders
tember 19, 1952.
BY
ORDER
A. D.
Debothezat Fans
Auto Bar Dispensers *
Trout
a
SECRETARY.
of
Taxation
credit
States
who
Treaty
may
he entitled by
XI1I(1)
Article
under
between
the
131
Revenue
of the
Code
Income Tax
the
of
record
by
Sep¬
STOCK
50
cents
Common
October
1,
per
Stock,
1952
to
shareholders of record Septem¬
ber 19, 1952.
John H. Schmidt
Secretary-Treasurer
September 3, 1952.
(
'
United
can
application to Guaranty Trust Company
of New York obtain certificates giving
mentioned
on
United
particulars of rates of United Kingdom
Mining
share
of the Double
Section
Internal
dividend
payable
House,
Egham, Surrey.
Stockholders
of
COMMON
McCORMICK,
States and the United Kingdom, to a tax
Testing Machines
cent Cumulative Preferred
DATED 13th August, 1952.
virtue
A
experi¬
TIME
CORPORATION
the 5% Preference Stock (less
for the year ending 30th
DIVISIONS-
35 th itiridvnd
of
GENERAL
Tax)
11. S. Gauge
available
years'
32, Lombard Street, London,
E.C.3., for examination five clear busi¬
on
e
(excluding Saturday) before payment is
WANTED
reorganization
Twenty
payable
deposit Coupon No. 214
Guaranty Trust Company of
New York,
Rusham
of
the Or¬
must
the
Savoy
Gotham Instruments
because
on
Holders of Bearer Stock to obtain this
dividend
Income
AMERICAN MACHINE
Co., opens bids,
Bookkeeper
President
year
Income Tax will be
September, 1952.
Kingdom
on
2%%
a
Monday, for $40,000,000 of first
mortgage,
30-year,
pipe
line
and
September 12, 1952.
NORMAN TISHMAN,
ending 30th
September 1952 of one shilling for each
£1 of Ordinary Stock, free of United
ness
Vice-Pres. & Secy.
m
interim dividend
Stock for the
dinary
September next will also be payable
Tennessee
CASHIER
business
STOCK WARRANTS TO BEARER.
August 28, 1952
Boston, Massachusetts
on
SITUATION
of this
Stock
Preferred
AND PREFERENCE
30th September 1952.
Coupon No. 98 must be deposited with
is
regular
a
holders of record at the close of
LIMITED
the
industry
and
corporation, both payable
September 25, 1952, to stock¬
A second
1,1952 to stockholders
Transfer
be paid on September 23, 1952, to holders
of the outstanding Capital Stock of the Calumet
and
Hecla
Consolidated
Copper
Company
of
record at the close of business September
12,
1952.
Checks
will
be
mailed
from
the
Old
Stock
the
1952
ORDINARY
of record at the close of busi¬
will
Colony
share
October
73
thirty-five cents
share on the Com¬
quarterly dividend of twentyfive cents (25(t) per share on
NOTICE OF DIVIDENDS TO HOLDERS OF
Aquarterly dividend of $0,125
HECLA
NO.
15, 1952.
Common Stock
1952.
Secretary.
of
per
declared, payable October
ord at the close of business on
pay¬
Stockholm
Directors de¬
regular quarterly
(35$)
BRITISH-AMERICAN
Stock
1, 1952 to stockholders of rec¬
been
a
dividend
JOHNSON
W.
TOBACCO COMPANY,
strong hands.
mark
clared
mon
NOTICE
Preferred
of
Board
The
declared by
was
ANDREW
the
now
DIVIDEND NOTICE
October 1,
on
of business Septem¬
at the close
ber 12, 1952,
of New York
Looking Ahead
underwriting
looking ahead
payable
the Board of Directors.
regular quarterly dividend of
$1.0625 per share on the $4.25
CORPORATION
CONSTRUCTION CO. iho
^
1952 to stockholders of record
DIVIDEND
OLIVER
TISHMAN REALTY &
quarterly dividend of 60£ per
share
in
Capital
business August 29,
A. KING McCORD
President
Sr. Louis
Common Stock
at
Guaranty Trust Company
Fifty Cents
share
record
Chicago, Illinois
CONSECUTIVE DIVIDEND
STUART K. BARNES, Secretary
STREET
dividend of
of
166™
15, 1952.
was
A
($.50)
shareholders
ALVA W. PHELPS
ending September
A
28,
o
regular quarterly dividend of
per share on the 4%% Cumula¬
THE
the
Preferred Stock
Aug.
1952, to
COMPANY
Fifty
30, 1952, payable on October 15,
COMPANY
Pa.,
declared
has
per share
stock, payable October
Chairman of the
'
RACE
Directors
common
Preferred Stock Dividend:
NOTICES
2,
Treasurer.
SHOE
§
September' 3, 1952
August 27,
METER
the
2,
pansion program.
AMERICAN
BONNYMAN,
September 5, 1952.
connection with the company's ex¬
DIVIDEND
of
on
an
used
L.
quarterly dividend of 30 cents
The Board of Directors has this
yesterday (Sept. 3).
be
will
Common Stock Dividend:
The Board
h. d. Mcdowell,
n>,
New York,
issue of $3,-
are, to
at
pay¬
books
.Board
institu¬
notes
1952,
OLIVER
INTERNATIONAL
has
promissory
Stock
record
declared payable October 31, 1952, to
shareholders of record October 15, 1952.
and
1, 1968, according to
of
tive Convertible Preferred Stock has been
into the
an
dividend
a
Common
September 15,
1952. Transfer
$1.12%
mar¬
Inc.
Ill
closed.
The
investment
Co.
the
Co.
1952.
September 30,
September 3, 1952.
investor^through Wertheim
& Co., New
the
average
bonds, though forced to
The
on
Secretary
"GllllCim rldCgS NOlCS
Bohack
be
declared
on
stockholders
30,
2,
DIVIDEND NOTICES
September 12, 1952.
on
Capital Stock of this Company
C.
to
business
September
1952, to stockholders of record
Checks will
Vice Pres. &* Treasurer
WprfhlURtl PI^PPC Nftl&C
H.
oi
has
share
per
Company
P.
share
per
Payable
CHARLES C. M0SK0WITZ
observed, must
their
incoming
for
able
Company
cents
c.ose
Pacific
Common Stock
•
sec¬
funds
the
tne
&
September
DIVIDEND No.
RECORDS
temporarily
COPPER
in
MGM
•
above
50
of
STOCK
——————
keep¬
given to scouting the equity
years.
the balance
THEATRES
that it is
pace
walk in
a
the
Illinois Central's $62,000,000 of
3%,% 30-year consolidation mort¬
the
(Incorporated)
The
ol
not
Company
whole-hog.
go
the
DIVIDEND
gage
•
Rocky Mountain
DECLARED
be mailed.
retire
in
Electric
NOTICES
1952, to stockholders of record
business
to
per
issue
share.
September 3, 1952
Stock
the
per
The Board of Directors has declared
sinking fund which is designed to
12%
$53
tions of the debt security
markets,
those who derive their business
from such sources are
price of
bidding. While
were
is
sub¬
had
maturity date of 1977
a
price
The
the money market. In
such circles it is not
expected that
able
issue has
(EDT).
VestPenn
on
of two full
cover
^
to overestimate this prospec¬
easy
3Vh% debentures went out
despite
p.m.
Louis,
COMMON
shares
LOEW'S INCORPORATED
Incorporated
a
3
on
so.
to investors at
common
with
holders
NOTICES
Raton, New Mexico,
THE
QUARTERLY DIVIDEND
underwrite
interest continues
1513
new
11
the
on
preferred
a dividend of 20c per share on the
outstanding Common Stock of the
Company, payable on September 30,
Phila.
rapidly
at
scription
Seaboard Air Line's $25,000,000
of
each
what plans the Treasury
may have for raising new money.
un¬
who
by the behavior of governments in
month
for
3
of
held. Rights are to expire on Sept.
little disturbed
a
share
the
debentures
DIVIDEND
NOTICES
stock¬
Vice-President and Treasurer
lift to the morale of
and
the last
in
$25,000,000
The proceeds
which certainly must have
derwriters
DIVIDEND
St.
record
one
similar
a
Watching the Treasury
Well
railroad
market
more
will
common
announcement
Rail Issues
of
of
Sept. 8.
out of the market.
last
has
project
convertible
year
up
be
quently, at the moment, they
The
Sept.
basis
de¬
ing their funds comfortably em¬
ployed in financing these ventures
as
they come to fruition. Conse¬
brought
un¬
common
funds.
real
private
is
.
contracted
for
year
judge
any
tal.
———
smaller
Currently
municipal
up
subscription by its
DIVIDEND
Paper
though
traders and investors
the
take
working capi-
Co.
vertible prior to Oct. 15, 1958) for
it¬
proven
which has been in the process of
adjusting itself to the realignment
of values and yields in the Treas¬
ury • list.
New municipals
have
have
to
bankers
&
pre¬
ing to the public.
concerned.
as
by
with
subscribed debentures for reoffer-
Scott
brought little in the
change
to
work year.
new
a
This week
and the
season
privilege of converting into com¬
mon stock, it will be offered first
offering is underwritten by a
The net proceeds from the sale
by Har- of the stock will be used to
pay
riman
Ripley
&
Co.
Inc.
and for capital
expenditures and any
Hemphill, Noyes, Graham, Parsons remainder added to
group of bankers headed
Corp. is offering 78,734
holders
tures.
sues
The
Bankers Underwrite
see
the
31
,
WESTCL0X
s
BIG BEN
SETH THOMAS
STR0MBERG
HAYD0N
RECORDERS
MOTORS
appropriate to all the above
dividends.
/
Thursday, September 4, 1952
The Commercial and Financial Chronicle...
32
(848)
get excited when anybody re-*
to
BUSINESS BUZZ
truth.
ports a seeming
Washington
ment
ff
bankers, farmers, business
give
jects.
These
been
has
that
mechanism
a
to
these two sub¬
field offices repre¬
on
answers
sent
equipped
others
and
people,
M. Cr %M/
inquiry
wide
made
had
among
JljL I w\Af
Capital
opinions after the numerous field
offices of the Commerce Depart¬
fe"
A
Betund-the-Scene Interpretations
from the Nation's
•'
•
•
his
got
Sawyer
Incidentally,
ignored almost entirely since, with
the advent of Roosevelt, the Com¬
WASHINGTON, D. C. — Some¬ ardent of the early New Deal
thing new in political phenomena radicals. It can now make (aside
«—strong cross currents of pressure from direct and insured long-term
developing both for AND against easy mortgage loans) seven-year
expansion of Federal subsidies for production loans with direct Fed¬
eral funds up to a maximum of
£arm credit—is making an appear¬
the
On
ground¬
the
hand
one
ly in eclipse.
(This column is intended to
work has just been
the time when Congress
restricted
to boost appropriations
these loans to five-year
terms and
ATederal loans
the
re¬
flect the "behind the scene" inter¬
pretation from the nation's Capital
and may or may not coincide with
the "Chronicle's" own views.)
$10,000 per borrower-farmer. This
has been quite an advance from
in this capital.
ance
Department has been large¬
merce
laid for a drive
for direct
of the most liberal
maximum
borrower
per
Commodity Prices
to
under-priv¬ $3,500.
variety for the most
Tending Upward
However, Congress has not
hand, another given liberally even as yet for
these particular loans.
Congress
♦movement has been launched to
remove
one
agricultural credit appropriated $110 million for such
loans in fiscal 1952 and $120 mil¬
agency out from under complete
ileged of farmers.
other
the
On
Wholesale
reached the
lion for the current year.
Administration domination, give it
Wilcox's
Dr.
greater degree of independence,
and at the same time curtail somea
study
as
directed
April,
by Senator Ellender will be in the
form of a re-do of the April, 1952
\ yptiat the element of Federal sub¬
Study Pitched at New
Senator
1947-49
information
and probably the latest data to
point to the need for a bigger
Aids
Ellender,
J.
Allen
took time out between
Set
A move in the
cussings of
ago
Board
on
now
present
main
This study will be conducted by
policies would be determined by
Jf>r. Walter Wilcox of the economic
of Congress,
of the Library
#?iaff
Farm Credit Board.
a
about how these
be met.
and finance—a name that will
remembered through the centuries—
can
the
Curiously,
FCA
aimed
building
up
the
contrast, for HOLC was
concerned
distress
refinancing
with
only
whit.
has been
is
unique
among
Federal
institutions in desisting from mak-
farm-
going to insurance com¬
panies and other lenders.
In the
main FCA has taken this reduced
In
its
original
conception, the
status
without
much
demolished
yer
Dillon
Eastman, Dillon & Co., 15 Broad
the
of
two
big
the firm.
taken by, if not the Truman
Administration, at least by ele¬
poses
ments thereof.
Newspapers, of course, did print
widely Mr. Sawyer's report on the
outlook for steel prices as a result
settlement.
of the steel wage
effects
the
of
Mr.
near-term
that
reported
Sawyer
settlement
toward
price rises would be negligible.
This completely contradicted
line
OPS
of
the
of
even
Administration,
privately) the
Board, that the
Truman
effect of higher steel
would
tion
to
be
loose
price ceilings
another
infla¬
1951-1952
in
ing big noises and appointing com¬
to
deal
with
the
drouth
Companies:
— Farr &
Sugar
29th edition
Co., 120 Wall Street, New York 5,
Y.—Cloth—$2.00.
Memoirs
August when the De¬
partment of Agriculture was mak¬
mittee
—
N.
spiral.
Back
of
Manual
(if
Reserve
Federal
the
elements
other
and
including
Herbert
of
The—1929-1941
Hoover*
Great
(The
De¬
pression)—The Macmillan Com¬
pany, 60 Fifth Avenue, New York
11, N. Y.—Cloth—$5.
Sawyer found that
while specific areas had been hurt
emergency, Mr.
by
drouth, in general there
been no major effect upon
the
had
Ordinarily when
an
Administration
pose
or
member of
one
contradicts
assertions of other
Sawyer
E.
Barlow
R.
Chains
—
Limited!
of
Results
Variety
1951
in
Division
—
of Re¬
School,
Field, Boston 63, Mass.—
Paper—$2.00.
the
Soldiers
mem¬
bers of the Administration, news¬
papers
Operating
Price
search, Harvard Business
the nation's economy.
rumble.
complaint.
are
give
this a considerable
It may be that, since Mr.
in his own independent
Walsh-Healey Public
Act—John V. Van
Contracts
Sickle—Amer¬
ican
Enterprise Association, Inc.*
41st Street, New York 17*
N. Y.—Paper—50c.
4
East
are
established
or
who
short-term, intermedi¬
and cooperative farm
organization credit.
institution or the agencies of the
Its operating principle is that
Farm Credit Administration, may
each borrower must subscribe to
farmer who is eligible for a loan
either from a commercial lending
t>c
accommodated
FHA.
It
by
the
farm-
is
operation,
ate
term,
in capital of
the lending agency, a
specifically charged sum
equivalent to 5% of amount
of the left-overs, of the
loan.
With earnings built
fundamentally the same job it
up over a period of years, the cap¬
look for itself under Rexford
Guy ital contributed by beneficiaries
Tugwell when it was known as
with
taking
care
has
Die
Resettlement
and
was
versy
a
in
center
the
Administration
of
hot
early
days
Roosevelt dispensation.
Farmers
Home
contro¬
of
the
Administration
been
increasing, and govern¬
decreasing, the orig¬
inal capital having been all gov¬
ernmental.
When
the
FCA
the early '30s as a
was
set up
in
WE
SUGGEST
i
,
ISSllSiS
■':'-
RIVERSIDE CEMENT CD.
CLASS B (common) STOCK
FIRM TRADING MARKETS
A
in
FOREIGN
SECURITIES
leading producer
fast-growing
a
P.ARL MARKS & P.O. INC.
of
cement
Southern
California.
Analysis of this
ment capital
"central single
Las crawled back
slowly from the credit agency," it undertook the
days when it was in political dis¬
job of refinancing all the farm
repute and eclipse under the most
indebtedness
it
could
pick up.
For
Large Appreciation Potential
;':v
well
up¬
moderate rate.
a
With Eastman,
intriguing things
those
of
One
Meanwhile Farmers Home Ad¬
not FCA looked like it was tagged to
way so obviously reported
truth
by be the agency to go far toward ministration has stepped in
to as
conveyed to him, that even pro¬
objective standards poor credit federalizing all credit for farming. build its little
empire handling fessional politicians did not think
♦risks, are the special wards of the It was devoted to encouraging
it significant in this day of hokum
the fringe credit business.
Farmers Home Administration.
through
cooperative
forms
of
Under this agency's statute, no
ITHA, for the farmers who
still trending
to refiftance any which excite professional observ¬ Street, New York City, members
it could get a hold ers is why comparatively little at¬ of the New York Stock Exchange,
upon.
In this respect the Home tention was paid to the fact that announce that Gordon R. Mc-?
Owners Loan
Corp. provided a Commerce Secretary Charles Saw¬ Grath has become associated with
any any very serious effort in re¬
telligence, of course, ostensibly cent years to build up a bureau¬
operational
4pointed the finger directly at the cratic empire.
for
indicate
Institute,
are
farm mortgages
This amazing and profound in¬
♦iced
August, says the Alexan¬
also
FCA
Points to Farm FHA
and
but
mortgages,
This
a
credit.
ward at
Sawyer Demolishes Poses
not
merely to refinance distress farm
be increased.
is
year
Weekly fig¬
year.
Hamilton
that prices
M r.—er—Mr.—er—e r—''
urban mortgage debt.
proposal, curiously enough,
As fast as FCA acquired mort¬
backed by Senator Ellen¬
Last April Dr. Wilcox made an
gagors,
the agency thereby ac¬
der.
It is, however, the objective
abbreviated study of the adequacy
quired "members" of its coopera¬
of three farm organizations, the
of farm credit for the benefit of
tives, for membership in its bor¬
American Farm Bureau Federa¬
the Senate Committee on Agricul¬
rowing cooperatives was a condi¬
ture. By a series of questionnaires tion, the National Grange, and the tion
to
obtaining loans.
Loans
National Cooperative Council. The
and
other
devices, Dr. Wilcox
were shoved out fast.
It was even
former
two,
particularly, have
came
forward with the intelli¬
been noted in recent years for reported that two of the land bank
gence that the needs of farmers
who
insisted
upon
their urging of smaller subsidies presidents
tfor credit just were not going to
weighing the character of the bor¬
*>c met, what with rising costs of for farmers.
rower
as
well as the collateral,
The bill contains a complicated
|f>roduction, rising costs of machin¬
were fired for their prudence. The
ery, and this and that bad setback scheme whereby borrowers would
idea was to get the money out and
Lore, there and yon for many steadily increase their ownership fast, both to serve the purposes
of the various FCA sources of
groups of farmers.
off the Roosevelt Administration
While seeming to build up the credit, the Federal land banks, in¬ and to acquire "members" for its
termediate credit banks, and banks
argument for a vast expansion of
cooperative associations.
cooperatives.
Furthermore,
direct farm credit aids, however, for
With
this
background
FCA
after capital and/or surplus was
Dr. Wilcox came forward, surpris¬
looked like it was going into the
built up to a certain ratio, these
ingly, with the rather moderate
empire building business.
Since
conclusion that most farmers who institutions would begin paying a
franchise
tax
to
the
Federal the frantic early '30s, however,
-ere well established can get credit,
FCA cooled down.
It has been
Lut
that
the
farmers
on
the Treasury.
There doesn't appear to be one sticking to its "normal value" ap¬
smaller, poorer farms and the
line in the bill which would ex¬ praisal standard, shutting it out
^Oung people who have insuffi¬
cient assets cannot get adequate tend the credit empire of the FCA of a lot of mortgage business that
♦seeds
for
der
who's name will never be forgotten
a
This Board
cooperation
consisting of representatives of
with the Farmers Home Adminis¬
borrowers and appointees of the
tration (the "farm FHA").
Dr.
Administration. In proportion as
1/Vilcox appears to belong to that
the
borrower-members
reduced
large band of Washington "econ¬
Federal capital in the FCA insti¬
omists" with broad sympathies as
tutions with borrower capital, the
to the need of various groups for
^Federal assistance and consider¬ representation of borrowers would
able imagination
be
mixed agency
at first would be a
a man
in the field of commerce
level
the
February
in
of last
ures
"I
dependent agency status. Its
fn close and intimate
below
reached
March
is the
the tidelands
2.1%
in July
and 4% below the record high
peak
opposite direction
proposal to take the Farm
Question, to direct that a study be Credit Administration out from
the control of the Department of
made of the "adequacy" of credit
Agriculture and place it in an in¬
available to farmers.
Stevenson
Gov.
still
were
Never¬
wholesale prices
reached in the like month
Farm Credit
Up
highest level since last
the index, based on
100, rising to 111.8 in
as
theless,
Jr. farm-FHA.
La.) the Chairman of the
Senate Committee on Agriculture,
with
July from 111.3 in June.
report, with the latest
sidy.
commodity prices
turned upward during July for the*
first
time
in
nine
months
and
Company and
review of the Cement Indus¬
try available
on
request.
Available around
14/^:*
:
^
FOREIGN SECURITIES SPECIALISTS
50 BROAD STREET...NEW YORK 4, N. Y.
TEL. HANOVER 2-0050... TELETYPE: NY 1-971
LERNER & CO.
Investment
10 Post Offlco
Securities
Square, Boston 9, Mast.
Telephone
Teletype
HUbbard 2-1900
BS 69
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