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UNIVERSITY
ESTABLISHED 1S39
OF MICHIGAN
SEP?
195
BUSINESS ABMINISTBATIOM
1IBJUNY
an
d.
Reg. U. S. Pat. Office
New
Number 5044
Volume 174
EDITORIAL
The
As
The
We See It
the past year or; so on
reduce their holdings of
the part of investors to
savings bonds is not com¬
forting. The fact that the next few years will
see
billions of these obligations maturing, adds
to current worries, no doubt.
Here is the back¬
ground of the current drive to persuade the rank
and file to take up large amounts of this class of
obligations now and in the future through pay¬
roll saving plans.
It is, of course, far too soon
to tell just how the public will react.
Some of
the unfortunate features of wartime "selling" of
these obligations are again appearing here and
there, and the fact is to be regretted. The author¬
ities, however, have in very truth a serious and
difficult task ahead of them at best.
No
one
with
the
good of his country at heart would wish to
interfere unduly with carping criticism at this
or any other time. *
there
Still
;
situation
are
which
certain elements
the
American
U.
'
;
S. Department of Labor
\
I
risk.
own
foresees only
maximum of 20% of
a
in
More
the
than
war
in
a
deficit at all for the current fiscal year as a
A few
even
foresee
a
cash surplus.
cash
whole.
stitutions to
and
Mr.
the
has
a
far
are
effects
already
have
Prices have risen, pro¬
duction has increased, the unemploy¬
ment of late 1949 and early 1950 has
reduced almost to
has been
time minimum.
If what
a
we
peace¬
have al¬
ready experienced is only a token
what is to come then indeed we
of
in for a rough time in our
economy.
On the other hand, why
we are
Clague
should the comparatively small armament program on
which we have embarked rock our economic system so
Continued
on
30
page
page
26
advertisements
to
the
in
press,
—
There's
still
money
supply
,
thereby
sistent with the softness in commodi¬
ties and encouraged some
pessimistic
to the possible state
of business in many lines this Fall.
On July 12 we expressed ourselves
in these columns to the effect that
predictions
-
as
primarily be¬
policies rather than
Robert
because of possible cessation of the
shooting war" and that there were
"factors which point to the resumption of the
"stocks
cause
declined
credit
Since then the industrial share averages
ket."
to
had
of
21-year highs and the utilities and
considerably.
up
only seems genuine but at times
by
an
Byfield
S.
bull mar¬
have risen
rails have firmed
The upward move in quotations not
has been accompanied
increasing volume of transactions.
Accordingly a
Continued
on
page
24
T';
make reservations
Security Traders As¬
The convention will be held at Coronado Beach, Calif., from
appear
sociation Convention Issue.
NATIONAL BANE
Wis., Aug. 27,; 1951.
ing, University of Wisconsin,; Madison,
inflated
our
by Commissioner Clague before the School of Bank¬
MADE YOUR SPACE RESERVATIONS YET?
for
of
crowding out the reports of scarcity
which had monopolized public atten¬
tion and which long since had be¬
come monotonous.
Furthermore, the
early Summer weakness in equity
securities seemed to be entirely con,
taken place.
Ewan
headlines
only
Nevertheless, the American people
generally are convinced that signifi¬
economic
goods expansion.
sequent price mark-downs have been
obtaining much space and some
reflection of what is to come.
cant
strength of farm
prices has been obscured during recent months
by a decline in the quotations for a considerable number
of commodities. Accounts of inventory excesses and sub¬
which the nation
thus
experienced
stocks,
common
upon
the
Therefore,
1952.
year
stresses and strains
of capital
The relentless pressure
has elapsed since the outbreak of
But the mobilization demands have
of
•An address
on
rate
year
Korea.
supporting further rise in
bloc, relaxation of credit controls, and continued high
production.
war
As
Byheld cites country's and its leaders' liking of in¬
flation in lieu of deflation, increasing
us
surpass
personal savings forcing in¬
invest, and hence expects high grade bonds
preferreds to continue resumption of their upward
trend.
Such apprais-
Continued
Economist stresses rise in
themselves in their effects upon
the domestic economy. The peak influence of the present
program, excluding any subsequent
enlargement or speed-up, will not be
felt until some time around the end
The earlier official forecasts
Some
so far
to doubt whether there will be any
may
.
not yet fully expressed
proved exceptionally wide of the mark.
well informed students in private life go
as
*
national produc¬
our
is attempted, Soviet Russia
economy
ceptional degree characterize discussions of many
aspects of the current situation. Officialdom con¬
tinues to predict large deficits. It began to do so
now
-J
'
.
materials, plants and skilled manpower for greater de¬
fense output without curtailing civilian economy. Advises deferring increase in working hours, but warns if
maximum standard of living and high consumption
ignore only
At the moment, differences of
year or more ago.
•
.
Says wfe do not have enough
tion for defense purposes.
opinion and uncertainty about the future in ex¬
a
.
present
tinue (even in times of semi-war) to
at his
•;
prosperity, though touched off by
mobilization program, has been powered by business
investment and consumer spending, Commissioner Clague
Asserting
con¬
can
Member New York Stock Exchange
Commissioner of Labor Statistics,
in this fiscal
citizen
By ROBERT S. BYFIELD
CLAGUE*
By EWAN
Copy
In Fourth Phase
Under Defense Mobilization
Treasury is doubtless somewhat uneasy at
(so it believes apparently) of a large
this fiscal year.
The disposition during
a
Bull Market Now
Manpower Situation
the prospect
deficit
Price 40 Cents
York, N. Y., Thursday, September 6, 1951,
to
time
in the "Chronicle's" Special National
State and
September 30 to October 4.
»
of INDIA, LIMITED
Municipal
Bankers to tbe Government in
Kenya Colony and Uganda
•
Head Office: 26,- Bisbopsgate,
London, C. C.
600 Branches
R. H. Johnson & Co
across
Established 1927
Branches In India, Burma,
Ceylon, Kenya
Monthly Commercial Letter
Colony, Kericho, Kenya, and Aden
:v;
and Zanzibar
Subscribed Capital
Paid-up
Reserve
The
Bonds
Canada
INVESTMENT
SECURITIES
upon request
Bond Department
The Canadian Bank
THE CHASE
£4,000,000
Capital—..—-£2,000,000
Fund
£2,500,000
Bank conducts every description of
and exchange business
banking
64 Wall
Street, New York 5
Troy
Buffalo
Albany
also undertaken
Scranton
Wilkes-Barre
Wiiliamsport
Allentown
Washington, D. C.
Head Office: Toronto
Bond Dept.
Pacific Coast &
Bond Fund
Hawaiian Securities
BOSTON
Teletype: NY 1-708
Steep Rock Iron Mines
Great Plains
Dome
Direct Private
Development Co.
VANCE, SANDERS & CO.
Ill
Devonshire Street
New* York
Chicago
Los
Angeles
Members of
and
BOSTON
New York, N. Y.
Principal Commodity
•
Boston
Los Angeles
•
Honolulu
•
Portland, Ore. San Francisco Los Angeles
New
CANADIAN
BONDS & STOCKS
England
Public Service Co.
DEPARTMENT
Goodbody
&
Co.
ESTABLISHED 1891
DoHimoN Securities
Grporatio?j
MEMBERS NEW YORK STOCK EXCH.
40 Exchange Place,
Chicago
THE CITY OF NEW YORK
Analysis upon request
Security Exchanges
San Francisco
OF
Agency: 20 Exchange PL
Wire»
Dean Witter & Co.
14 Wall Street,
NATIONAL BANK
Exploration (Western), Ltd.
CANADIAN
Prospectus from authorized dealers or
Nete York
Seattle
UToe
OF
-vof Commerce
OF NEW YORK
Harrisburg
Providence
Trusteeships and Executorships
THE NATIONAL CITY BANK
PHILADELPHIA
BOSTON
115 BROADWAY
CHICAGO
"
Teletype NY 1-702-3
WHitehall 4-8161
CO.
York Stock Exchange
Principal Exchanges
Members New
and
other
111 Broadway,
WOrth 4-6000
105 W. ADAMS ST.
NEW YORK
New York S, N.Y.
IRA HAUPT &
Boston
N. Y. 6
Teletype NY 1-2708
Telephone: Enterprise 1820
2
The Commercial and Financial Chronicle
(858)
.
.
Thursday, September 6, 1951
.
•
Spencer Chemical
Conv.
Pfd.
Rights
&
Utility 5V2/52*
report
on
(The articles contained in this forum
Established 1920
120 Broadway, New
B Arc lay
offer
as an
ERPF
.
United
York 5
States
Steel
Corporation
By and large, the steel industry
its
securities
have
been
by the investing public
comparison to their zeal for
in
Specialists in
other
Rights & Scrip
follow
like
Since 1917
to
their
fofepONNELL&fO.
■''
Members
120
Curb
;
•
v
Exchange
BROADWAY, NEW YORK 8
sues
Trading
The
to be
sion
Dan River Mills
Hardware Co.
I
the
Scott, Horner &.
Mason, Inc.
Lynchburg, Va.
LD 33
ilHIIIIIIIIIIIJIIIIIIIllllIlllfilllllllllll
Graham Paige
4% Debentures
which,
the
in
current
This
book
above
turn,
steel
Armand G.
Erpf
value
Bought
Helicopter
—
Sold—Quoted
J. LEFF & CO.
Incorporated
50
Broad
St., New York 4
Telephone BOwling Green 9-5920
Teletype NY 1-3018
in point.
the
may
prove
The depres¬
1930's
the
and
con¬
tributed to obscure the real posi¬
tion of the industry in our econ¬
Relievers in the boom-and-
80%;
remained at low prices and
oper¬
ations were at a
very high level,
STREET
the
to
other
published
are
pension
The
shares
above
the
—
Refined
—
be
cannot
unem¬
allowed
of
in
a
the
the next few years,
amortization
give new facilities
quickly written-off book cost,
at
so
that when steel operations decline
from their present
over-capacity
the political economy of brand new, low cost plants at full
the United States, if one realizes tilt, enabling it to maintain a good
that the defense
program chews profit level at a lower than capa¬
slant
on
long, long time to come, that the
the
than
it used
con¬
to be since the
con¬
sumer
buys automobiles, refrig¬
erators, household appliances, and
tin cans, which are much more
than
rails
.
the
and
old
has
that
line
been
in for
laid
steel
a
for
shares
a
in
the
case
United
of
States
Steel, we have a company with
about one-third of the total steel
and
and one-half times the
one
ORRIN
G. JUDD
148
stock dividends is another feature
Its preeminence in
ore
reserves
and abroad
is
in
indis¬
coal
lands
far-flung physical
and
International
2
the most
widely distributed
regionally in the United States,
ranging from Utah to the new
plant to be erected
in
near
tidewater
Philadelphia,
where
steel
the
it
has
Business
and from Illinois,
the largest single
It
has
a
very
diversified
product pattern in which the
pro¬
7-0425
As
as
an
an
other
BS
259
^
Spencer Chemical
Rgts.
&
New
Pfd.
with
2%, but this has been quite reg¬
ularly supplemented by a stock
been
Cone Mills Common
Foote Mineral Co.
General Aniline & Film "A"
bounce
back
its
to
former
value
shortly after each stock dividend
is
Gersten & Frenkel
Memoers
130
N.
Y.
Security Dealers Assn.
Broadway
New York 7
Tel. DIgby 9-1550
Tel. NY 1-1932
practically covered by earn¬
and the market seems to
ings,
paid.
There
I.
company,
to finance
usually
are
with
B.
M.
a
WASHINGTON
OREGON
ar¬
has been able
continuous expansion
minimum of
borrowing.
the
SECURITIES
•
Harbor
•
Puget Sound
Plywood
Pwr.
&
Lt.
a
bonds
and
BOUGHT
SOLD
•
QUOTED
•
of
Machines
attorney,
expert
on
I
do
not
myself
pose
investments. Like
lawyers, however, I
faced with
investment for
am fre¬
problems
of
and
form
stream
of
a
so
the
terest
of
to
me
which
re¬
of
of
The
assures
for
which
several
in
SAVINGS
BONDS
sales
of leasing
machines
stability of income. My
also
tells
me
that
in¬
in
every
industry
mechanization
will
of
all
field is
no
so
Over-the-Counter
Quotation Services
for 38 Years
highly competi¬
company can be sure
of
the
National Quotation Bureau
staying at the top.* Yet reports
I.
B.
M.
in
electronic
that
it
pioneering
computers
will not
be
left
,
,
,
Continued
suggest
behind in
on
Incorporated
work
ap¬
reasons.
S.
leases, the effect
be less drastic
fluctuation
•
stock
U.
con¬
of
a
482-483
My guess would be that
policy
tive that
G. Judd
SE
BUY
the
that are susceptible of
it, and keep the business machine
industry busy for years to come.
Orrin
Tele.
earn¬
processes
International Business Machines
to
of
may
wide
a
workers
help
Corporation is
income
promote
let the experts
know how the
1900
rev¬
creasing salaries for white collar
in¬
Portland, Spokane, Eugene
growth in earnings. While
depression may result in some
makes for
outsider
be
Exchange
4
rental
on
ownership
machines, and
judgment
Per¬
an
more
the
many
sources.
gross
The retention
might be.
haps the view
peals
equipment,
in
SEATTLE
tinued
than
in-
the
•
of
ings through stock dividends per¬
financing the construction of
on
which pours
will
^office
cancellations
form ation
from
that
Member New York Stock
mits
a
others, and try
to
is
feature
depend primarily
FOSTER & MARSHALL
Mu.
day.
interesting
stock
enues
mains
quently
of
9, Mass.
Teletype
:
N. Y. Telephone WOrth 4-5000
^
The cash yield of the pres¬
$4 annual dividend is less than
company.
plant in the world, down to r e «t n * the
Birmingham district of Ala¬ world thinks. •
bama.
request
on
State St., Boston
CA.
ideal.
ent
Another
Corporation
enormous
assets. Its plants
are
Tel.
taxed in their top
individuals
.
capacity of the U. S. S. R. It
.sound judg¬
is the largest and most
completely
integrated of the steel companies. ment on the
great
Information
the
it
Attorney, Judd & Gurt'ein,
New York City
revaluation in
putably acknowledged and it has
over
practice of paying regular
stock market every
business
relation to other groups of invest¬
this country
St. Louis 1,Mo.
The
amounts' of
of
>
street
which the holder also would have
this company
preferred
would appear stock ahead of it, but it makes a
that a chunk of steel in
more conservative investment for
any port¬
one who can't
folio is not a bad idea.
keep an eye on the
structurals, then the
conclusion
are
THERMO KING RY.
100%
a
gain in less than ten years, during
level. In time, the Debt at present is less than $30
dividend should be more appro¬ per share. This may give it less
priate to the great asset value and "leverage" than a stock with large
earning power
industry is less cyclical and, therefore,
than in the
past, and that
steel
steel
so© olive
almost
represents
U. S. THERMO CONTROL
operations
lot of steel and is here for city
a
capacity of the United States
Stix & Co.
That
present-day society; yet the ap¬
rangements provided for prompt
sale of the stock
praisal of steel shares continues levels, it requires no feat of
dividends, so that
imag¬
on a confused
basis, relating to a ination to figure out that the com¬ one who needs cash income can
*
medley of ideas formerly in vogue. pany will shut down its older, realize it
By retaining the earnings in the
All in all, if one takes a new high cost plants and operate its
nearly
MIDWEST STOCK
EXCHANGE
114
of its expansion program out $10 a share for each of the last
its own resources and cash four years, the stock dividend has
other large-scale
In
MEMBERS
period would have ex¬
an
increase in value
to
approximately 220.
care
means
ments.
DIgby 4-2727
bought it at its high of the
dividend of
feature will
groundwork
Exports—Imports—Futures
earnings
deductions
are
to
of
Liquid
who
postwar
growing
re¬
opinion has been
feel that by some
general
Raw
has paid divi¬
since 1916. One
and
years,
many
dends every year
brackets, or for
high
income,
the highest in the industry whose primary interest is in cap¬
take into consideration cur¬ ital gains, the dividend
policy is
Its
reports.
over
stable
sugar
conserva¬
accelerated
ployment
branch offices
our
ex¬
tive. In viewing its reported earn¬ which appeals to me.
The cash
ings, provision must be made for dividends are low, as the figure
accelerated depreciation in order above shows. But for professional
to make the figures cjmparable men, whose income on
savings is
and
or
NY 1-1557
Birmingham, Ala.
ample of constant growth through
accounting
is most
throwoff
In
askew.
went
business cycle will be better
WALL
is
Direct wires to
remarkable
a
5% per year. In seven
only slightly
of the last ten years the stock has
highs estab¬
they were high and sold lished before the outbreak of the paid a 5% stock dividend, and in
the 6ther three years it had one
them when they were low," this Korean War, and
the^ield/'on the
5 for 4 split and one 75% stock
apt formula was quite profitable basis of 1950 dividends of
$3.45,
for a while. But when the shares is 8.2%.
dividend.
With earnings of over
The company will take
the formula
25 Broad St., New York
4, N. Y.
HAnover 2-0700
when
trolled
NEW YORK 5, N. Y.
itself
and;
although for a time the unsus¬
pecting public bought the shares
a
99
in
only
bust cycle were nurtured on the and
formula that you buy steel shares rent and future liabilities, as well
as a substantial provision for the
when operations are below
50%
of capacity and sell them when liability for past services incident
to the new pension agreements.
operations are above
up
LAMBORN & CO., Inc.
formed
S.
cent years public
Piasecki
of
fy^nnoe
Curb
and
prewar,
of the company
''J
of the 1940's have
years
has
Steel sells at only five gain of more than 300%
earnings and it should be ten-year period.
U.
times
industry
of
compares
market
Exchange
York
Mobile, Ala.
It
share of book from
per
their attention to the less borne in mind that the
a case
omy.
$67
New
York Stock
New
New Orleans, La. -
operations.
resources
Co!
New
Members
Laurence
capital received dividends of $32.56. If he
expenditures of the company from were fortunate enough to have
1946 through 1953 virtually will bought it at its 1941-1945 low of
equal the present book value. ;
50V4, he would have had a capital
who
years
war
the
—
Lyons, Allen & Co.,
City. (Page 26) '
1941-1945
70%
popular investments.
American Furniture Co.
in
material
Company
York
perienced
42.
courage
to turn
finishing facilities and
raw
Stei ner, Rouse &
Members
Richardson
H.
New
ex¬
will
moreover,
balance
Bought—Sold—Quoted
Machines
Business
Judd & Curfein,
City. (Page 2)
great aggregation of assets
a
with
rewards
and
The
Louisiana Securities
Corporation—Orrin G. Judd, At¬
York
the network of plants consti¬
value,
enjoying
originality
ilium
out
above
is-
had
ingot capacity.
program,
Alabama &
PartnS^CaTl
torney,
and could not be replaced for well
limelight.
F r e quently
there; h a v e
been
tons
tute
the
have
Tele. LY 83
International
been
relatively small in
relation to its size, is the largest
of all the steel companies, amount¬
ing to 2,500,000 tons, which will
bring total capacity to 36V2 mil¬
and
p u r-
for those
Tel. REctor 2-7815
Moore Handley
has
v
improve
current
in
1
Thus, the
make
chases
Stock Exchange
steels
(
1951-53 expansion pro¬
gram of United States Steel,
round
and
stock
York
light
and
Selections
M. Loeb, Rhoades & Co., New
York City. (Page 2)
nor
The
pansion
the
fashions
rising.
lion
groups.
Investors, like
other folk,
York
of
Participants
U Armand^G Erpf'
although
neglected
New
he,
to
aell the securities discussed.)
to
portion
Partner, Carl M. Loeh, Rhoades & Co.,
Members, New York Stock Exchange
and
New
intended
not
are
Week's
Their
-
Teletype NY 1-583
7-5660
be regarded,
to
ARMAND G.
Corporation
V"
they
are
request
New York Hanseatic
r
Forum
which, each week, a different group of experts
in the investment and advisory field from all sections of the
country
participate and give their reasons for favoring a particular security.
Southern Production Co.
*Progress
Security 1 Like Best
This
A continuous forum in
'
Interstate Power Co.
Central Public
V
The
TRADING MARKETS IN
page
26
Established 1913
46 Front Street
CHICAGO
New York4,N.Y.
SAN
FRANCISCO
,
Volume 174
Number 5044
.
.
The Commercial and Financial Chronicle
.
.
3
(859)
ADVERTISEMENT
End of Inflation?
INDEX
By ARTHUR M. WOLKISER
Consulting Economist, New
Articles and News
City
York
in detailed analysis Dr.
Wolkiser maintains that rearmament,
budget deficits, wage-raising labor policies, rising incomes and
reduced
—Ewan
For the first time since the out¬
Our
a
year
ago,
' •'
'1 '
s'"*'
The
rise
in
prices has been
are experi¬
let-up in the largely due to inflationary forces
and not to scarcities of goods. Up
pressures of
inflation.
For to the present there has been no
several weeks appreciable
cutback
in civilian
now
prices production. The American stand¬
have remained ard of living, as a matter of fact,
relatively sta¬ has never before been so high as
ble. Buyers at present in spite of a rapidly
are
more
re¬
growing population. Certain lines
consumers
luctant to buy of
goods in hard ^as
more
Indica-
soft
as
from
to
eager
sell.
ti
well
sellers
and
articles
inventories
excess
versely,
from
purchases.
or,
•"—Summer
mer
senare
The Wholesale
of
tremendous
chasing agents
outpouring
ducers
"phony" price inflation
propaganda disseminated by sales
organizations. The recent "price
:■■■
Motor
and
by
Still,
waiting attitude for still lower
prices. And the praise of "safety"
and other advantages of govern¬
ment bonds as out-balancing their
set-backs from inflation (see A.
Wilfred May's letter to the Editor
a
has
of
j
.
.
The outlook for deflation rather
than
inflation
to
seems
be fed
factors:
in
in
our
various
and
the
lines
consumer
our
as
swings into full defense
production.
economy
One of the most important ques¬
tions facing the economic and po¬
litical analyst today is whether,
aside
from
develop¬
temporary
long-term trend will
show further growth of the hith¬
erto prevailing
inflationary fac¬
tors, or whether the present Ko¬
ments,
the
armistice talks presage a let¬
our defense efforts and a
rean
the
ascendancy.
Government
down in
to
an
analysis is devoted
of
examination
the
eco¬
nomic, military and political fac¬
the
prevalence of in¬
flationary or deflationary forces
in our economy in the interme¬
diate and long-term future.
sumers
In
this field
least
ent
far
as
as
we
are
is
goods
The
the past and pres¬
concerned, with
are
a
rather
complete set of available facts un¬
derstandable
Between
even
the
to
layman.
outbreak of
World War II, and April, 1951, the
American consumer dollar, owing
to
rising
price
levels
in
the
United
1939,
States,
the
has
been
cut
City Bank
statistics,
Federal
of
Bank
'
•
and
Fund
Monetary
Market
on
Furthermore,
have
durable
'
•
*
A
24
.-.iff/.
.
'-i. •-••*•;**
'-.'V.
v.
(Federal
■>.*.
.v.-.-'
•
will
inflation
strongly in
a
itself
show
About the middle of June,
ported that
new
1951,
the
appreciably
were
peak
rate
of
Our
re¬
pressure.
May
of
we
should
not,
expect
course,
Continued
on
as
a
Public
Exchange
4
Hubbard 2-8200
Teletype—NY
Glens Falls
1-5
-
24
________
_____
*
Schenectady.
-
Worcester
Air Products
Baker-Raulang
26 '
Registration
State of Trade and Industry
;
2
The
Collins Radio
34
Security I Like Best__,—
Securities Now in
Tomorrow's Markets
*
Dictograph
5
30
(Walter Whyte Says)
You
and
Washington
a
i
,
-18
——_
..
______
Di-Noc
40
available this week.
Not
Hoving Corp.
27
and
COMMERCIAL
U.
S.
1
Weekly
Twice
CHRONICLE
Patent Office
Gardens,
Drapers'
land,-c/o Edwards
WILLIAM
B.
DANA COMPANY, Publishers
New York 7, N. Y.
Park Place,
y&io
tj
WILLIAM
DANA
D.
■
SEIBERT, President
RIGGS,
i
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j'*
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Business
•
.
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<
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■
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Other Offices:
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year,
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the
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Copyright 1951 by William B. Dana
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V
50 Congress Street, Boston 8
40 Exchange PI., N. Y. 5
>
37
Offerings.
The
REcior 2-^o<0
Members New York Curb Exchange
MACKIE, Inc.
^
23
Securities Salesman's Corner——
FINANCIAL
2-4300
39
—
Securities.——
Utility
Railroad Securities
con-
page
&
HA-2-0270
5
—
———
Governments
Security
Prospective
—
—
—
.
However,
to
Wilfred
Reporter's Report—-.—-
Our Reporter on
of the year (Survey of
Current Business, June, 1951, p. 1).
Since personal income is still ris¬
ing, the reduction in consumer
expenditures reflects an advance
in personal savings and
to that
extent a decrease in inflationary
matter
8
—
—
Observations—A.
be¬
first
the
•
10
Teletype NY 1-1825 & NY 1-1826
orders placed by business in
May,
Forge Company
Singer, Bean
*
14
NSTA Notes —
buying and
consumer
Erie
33
News About Banks and Bankers
1951,
of Commerce
V
Exploration
.
13
.
the Department
Superior Oil
Dome
8
Funds
Mutual
(
8
Recommendations
Indications of Business Activity
most
Canadian
;
Corp.
20
—
—
Washington Ahead of the News—Carlisle Bargeron__—
From
j
Dev. Res.
.
40
Einzig—"Gloomy Outlook for Foreign Investment Under
United Nations"
continued inflation¬
ary economy.
17
Bookshelf
Dealer-Broker Investment
Bulletin, June,
Reserve
Spencer Trask & Co.
Associated
____Cover
Coming Events in the Investment Field--
goods
Philadelphia and Los Angeles
'v;
A" A
Canadian Securities
WILLIAM
-
.
■
(Editorial)
HERBERT D. SEIBERT, Editor
Chicago
1
Teletype NY 1-3370
Direct Wires
:^-V /'./;"v«
""
^
See It
We
Business Man's
more
soft
Broadway, New York 6
BO 9-5133
Bank and Insurance Stocks—l—__
department
than
goods
•61
.
23
'^!>''
1/v';r
•
As
PREFERRED STOCKS
-
in
Meet
i
Reentered
Albany
to
r
•
Regular Features
;Vf7
Reserve
accumulated
Request
25
v
during the "price war" (Federal
Reserve Bulletin, June, 1951, p.
699).
on
'V*
Reilly & Co.
39
25
HAnover
'
'
FIC Banks Place Debentures
High Grade Public Utility and Industrial
25 Broad Street, New York
'
-
23
*
interested in offerings of
New York Stock
£
Labor Leaders Denounce Communism
Reg.
Members
•
Stock Option Study Reveals Cautious Use
have
stores
Prospectus
J. F.
'
21
(Boxed)
World
FIILB Notes
new
stores
*
or¬
orders of depart¬
recently been
smaller than sales, and these data
do not yet include the heavy sales
ment
"
.>
.
20
___.r
—
^ Washington
The
are
20
Accentuating Housing Shortage
produced,
to
INC.'
.
__■
Published
We
Steady Decline, Reports Pur¬
_!
L
r,
18 V
••
Governors
now
impart¬
inflationary impetus to our
Accoiding
TIME,
<*
Incorporated
quarter
dealing, at
■
economy.
low
Economic Factors at Home
a
•.
dispensed will meet a
relatively smaller volume of con¬
tors at home and abroad that will
determine
on
Well-to-do for Tax Revenue, Warns National
Much to the Point!
consequent increase in the activi¬ 1951, pp. 698f.), and it is particu¬
ties of consumers goods industries. larly the field of soft goods where
The following
Backlog
on
Rent Control
power
an
Can't Depend
.
At that time purchas¬
end of 1951.
ing
Order
chasing Agents Association..
' sponding expenditures are expect¬
ed to reach that figure near the
oversupply in
Remington Arms
*
-
;
placing with industry weekly
the armistice negotiations
Korea
in
American
ing
Hartley Shawcross______ 21
17
Business
)
Haile Mines
22
far as the future is con¬
the burden of the argu¬
continue
Exploration
19
Petroleum Industry Earnings in 1951 Forecast at New Peak—..
J
in the
Superior Oil
i
Lafayette Quirin
World Bank Operations on Business Basis—Simon Aldewereld
ment of this paper will be to show
that the inflationary factors will
primarily by two
17
as
cerned,
economy
*Dome
-
pro¬
"Times," June 3, ders of about $1 billion and actual
previous production for defense with corre¬
replaced the
emphasis on the latter.
'^Canadian
16
___-
Britain Needs Trade With East—Sir
Ascendancy
partment stores and so-called dis¬
count sales have been followed
Factors
:
What to Do About Idle Funds in 1952—E.
consumers
Inflationary
13
___'
Thruways Built Over Railroad Tracks
—rAlexander Wilson
goods has
growing strength to
the factors working for deflation.
New York and other de¬
10
Taxation—Roy Blough_____
'Real Estate Outlook for 1952—Roger W. Babson_____
seemed to add
a
Commodity Price Outlook—Herbert Downward
Problems of Federal
i
:
prices to the expectation of ample
supplies and lower prices, and the
pur¬
that in many lines there exists to¬
1951)
!___
Slichter
Selecting Investments in 1952—Ernest Sharpe
ing, sentiment has swung from an¬
ticipation of shortages and higher
sions
Wolkiser
of the New York
H.
5
So Productive?
Public Relations Are Human Relations—Edward M. Heffernan
inadequate consu¬
Generally speak¬
the
of
ve
such expres¬
war" in
4
i___
Why Is United States Industry
con¬
change in
day
Foreign Aid Dollars Will Not Come Back
suffer
even
timent
M.
4
a
*
Arthur
Cobleigh
Portugal—The "Benevolent" Dictatorship—A. Wilfred May
we
encing at present
3
The Fare Planes Are Now Banking—Profits!—Ira U.
dollar"
wholesale
Cover
__
—Eugene Van Cleef
49C,
and
the
to 42C.
-V':
more
Cover
End of Inflation?—Arthur M. Wolkiser
inevitable East-West Hot War.
than
Clague
consumer
break of hostilities in Korea
Byfield__
The Manpower Situation Under Defense Mobilization
goods on the one hand, and
United States military and financial support of our economi¬
cally weakened allies on the other, provide the background for
continued strength of inflationary forces. Concludes the infla¬
tionary trend will prevail until a decision is reached in an
production of
Page
Bull Market Now in Fourth Phase—Robert S.
Br'^'p^+'sements must
New York funds.
WHitehall 4-2250
Teletype NY 1-3236
4
The Commercial and Financial Chronicle
(860)
Thursday, September 6, 1951
..
.
I
earnings record, showing annual
black
figures when most other
celestial
transport enterprises
The Fate Planes Aie
Our
wallowing in deficits. This
sustained profitability is due, in
important measure, to the dy¬
Foreign Aid Dollars
were
Now
Banking—Profits!
By IRA U. COBLEIGH
""
"How to Make
; y:
•»
.
Author
namic leadership of
Rickenbacker who,
■
'
•-;
..
of
sound
to
soars
and
heights of earning
new
power
to
borrow
By EUGENE VAN CLEEF
a
Department of Business Organization, The Ohio State
University
have assured
financial condition.
passenger-miles. V
Ohio
accounting and eagle-eyed
controls
cost
sound
Eastern's
17,100,000 people in
nation famous for
year
America,
keeping
a
its
traveled
feet
on
the ground,
on
air
scheduled
our
transport
planes; and
this year some
30%
more
doing
same
this
All
are
the
thing.
gest
the
in
history of
year
commercial
aviation, and
offers
.
Northwest
the Gulf South, mul¬
Expanding
(6)
Faster
added
and
re¬
New
Flights:
almost
every
placed $100,000,000 order
30 Super Constellations and
for
Martin
60
gives augury of
York-to-Miami
New
19
to
25%
tween
are
These
week.
are
always bigger, and
jets became standard, time¬
tables may be cut in half.
when
E A
and
$2.75
might
$3
and
from
be¬
earn
on
L
2,396,000
1951.
,
.
£
Second in size, United Air Lines,
and
planes
two-hour
a
run.
has varied this year
common
has
too,
profit-wise.
zoomed,
Against
loss for the first five
a
months of 1950,;A L showed net
operating income of $7,854,000 for
the same period
this year.
By
adding
a
population of 155 million
our
lot
-
of
capacity
seat
tions
will
ana
as
that
argue
ultimately
find
serve
boon
a
dollars
our
their
'
•
will
way' home
:
the
From
small
early
of
days
slow,
crates, bumpy flights, pas¬
hurry to get there, and so is the
to
airplane.
airports, arid safety factors
Despite all those things that
depended far more on the
have made and are making the
pilot's skill than such present
gir-transport industry dynamic,
commonplaces of inventive genius
it has suffered quite a few finan¬
as radar
beams, de-icers, instru¬
cial growing pains along the way,
mental
flying
and
automatic
and has offered an erratic record
pilots, we now perceive a passen¬
of earnings and dividends on com¬
ger transport agency with about
mon
shares.
Consequently air
a 50-50 chance of racking up in
transport shares have tended to
1951 as many
passenger miles as remain in the more
speculative
Pullman travel—roughly 11 bil¬
echelon of the market. Not yet
lion, that is. Supersonic progress,
has there emerged in this indus¬
indeed!
'
< ■
try the' blue-chip equivalent of
ture
that
Several factors account for
mov¬
ing air travel out of the luxury
league, and into the mass trans¬
portation department.
Such
as:
(1) Technological Progress: You
still ride in the
can
rode in in 1930.
you
Pullman
same
But
Atchison
the
type of investment status
is
perhaps found in the
here
6,453,000
ican
plane
a
rails.
to that
vintage is literally "gone
with the wind."
Benefiting by
military aviation research, the air
transport plane you board is im¬
portantly
improved
with
each
passing year. :
A
.
(2) Prosperity:
est
per
With the high¬
capita income ever, thou¬
sands who
ford
air
love
before could af¬
never
it.
travel
now
it
use
and
(3) Promotion: Florida, Mexico,
Bermuda and other holiday Mecbeckon alluringly, what with
cas
special
round-trip air
vacation
time
rates, and
wasted
travel
in
cut from days to hours. Eastern
and National Air Lines have en¬
joyed a big jump in net, by build¬
ing up summer Florida travel.
Also family half-fare plans have
made
countless
air
new
enthusi¬
shares of Amer¬
common
Airlines.
M
R is
that
of
Union Pacific among
The nearest approach
or
passenger
to-coast
the largest domestic
system
from
running
New
York
coastto
Los
Angeles and San Francisco, and
serving a southerly arc'"of impor¬
tant cities
including Philadelphia,
Washington, Nashville, Tulsa, Dal¬
las, El Paso, Tucson and
San
Diego. Having carried an exten¬
sive
these
bits
till
share.
a
July
1,
The
1951,
six
landed
net of 90 cents
a share (27 cents
year). Complete results for
this year should well top the $1.39
a
last
for
1950.
for mail
a
Lower
indicated
ball in that everybody talks about
percentages.
batting
The significant air¬
average is the per¬
centages of seats occupied, called
line
in
the
(4) Comfort: Planes
and
roomier
all
dining service,
the
and
bigger
are
time; good
stewardesses
They
say,
as
friends
our
abroad
will
lift.
a
all
get
American very hard, since
only about l/20th of gross is from
at
source.
15%.
and
ket
traveler,
masks
high
in
customer
contentment.
for
the
most
RADIOACTIVE
loses.
to
be
About $2 Per Share
founders of
years
and
of
fields
ly
awaited
a
costly
Latest
of
research
Dow
oil
are
in
now
Free
on
operation.
Request
Member National Association
Securities
Dealers,
HAnover
impressive
One
of
Our
to
produc¬
Unfortunately, the analogy
priming breaks down
pump
when production continues only so
lose most of their trade, a few will
gain, and others not now engaged
in; international trade may find
new opportunities. We do not ob¬
ject to this turn of events, viewed
we merely note it be¬
cause we like to envision all of
nationally;
the
possible
results
erosity.
.
Rich
of
,
is the
as
our
.
,
gen¬
„
.
United States in
natural resources, in persons with
initiative and the will to do, we
must not forget that our popula¬
tion
approximates only 155,000,000
in contrast with about
lion
whom
v;,
leaders
anxious
seem
must
resources
be
usable form before
It is
a
that
with
aid.
to
Our
converted
they
to
make
contribution to life.
effective
an
half bil¬
a
Administration
our
fact and
not
can
mere
opinion
all the genius we may
small population can
develop the energy necessary
possess, our
not
to convert these
of
use
both
resources
itself
as
omic aid. Of course this implica¬
they've
tion is difficult to prove. Prewar
been
classified
among
the socalled "growth stocks," they have, years in Europe, as here, were de¬
pression years and the population
on the
record, been definitely less
of Europe has increased as it has
rewarding to shareholders than
Whereas,
age.
the
chemicals,
cals
the
or
for
years
here. We could well have expect¬
the
pharmaceuti¬ ed
Perhaps, how¬
oils.
With
air
in
tickets,
day
is
travel
at
hand.
at
now
all-time
an
popularity, streamlined
improved
airports,
in¬
increase in output, aid
an
or
We
engaged
action
to
in
check
Communism
and
Marshall
the
to
Plan
spread
of
reestablish,
quickly European
markets
for
motor highway conges¬
ourselves. On the surface, it seems
tion; and with remote points such
as though we have met with some
as Alaska and Canada
generating success.
However, we cannot say
new needs for swift
transport, the as
yet, with finality, that the Plan
fare planes may increasingly comis a
creased
tinue
to
bank
their
wings
success,
and
their profits.
well
members
C.
Bernard E. Loechtenwith
Westheimer
326
of
Communism
is
our econ¬
Walnut
the
New
&
Street,
York
founded, has achieved
of its purposes, but
(Special to The Financial Chronicle)
CINCINNATI, Ohio—Robert
Company,
for
serious threat and
a
omic aid still pours across the sea.
The Point Four Program,
basically
Two With Westheimer
are
still
and
tracting
the
some
and
for the
about
half
No
of
events
would
current
inflation
a
opposed
better
to
life.
aiding
But
such
assistance must lie within the lim¬
its of
practicability. After all,
admit that
tion
would
our
own
seem
survival
sakes and
as a
trogression.
we
first obliga¬
to be to insure
our
for
our
own
bulwark against re¬
About
the
only
gift
dollars which may in a sense re¬
turn to us, and then not in the
form of trade, are those we
may
spend for our national defense
here
may
and abroad,
and those we
contribute for economic aid
in
abroad
limited
special
cases,
well
conceived and carefully cal¬
culated by men who fully com¬
the
differences
in
the
American philosophies of life between for¬
for this undesirable turn of
is the tremendous risk for
who
is
one
others to
instead of at¬ prehend
funds
our
be found in; the failure of our
leaders to recognize this fact.
may
investors to foreign areas, is ex¬
eign
panding into another government¬
al gift program. Of
course, one
reason
for
reasons
must
aid.
no
their
those
Clients
Purchase
a
J,
Department Store
Volume Over $3,000,000
East of the Mississippi
Will Cooperate
with
Brokers
JOHN J. TURTELTAUB & SON
of
Inc.,
2-929(1
to
new
invest
abroad.
Cincinnati Stock Exchanges. Mr.
Too
few
foreign
governments
perhaps Jones was formerly with Saunders* willing to accept Point Four assist¬
long-term Stiver & Co.
ance
are showing
any interest in
,„c.
Exchange Place, New York
Telephone:
tion.
to
of ours. In fact, our
exporters here and there will
own
say,
continuous flow of
operation
at
long
only is profitable,
peoples and ourselves.
-
New Reynolds Branch
VINELAND, N. J.—Reynolds &
Co,,
members
Stock
of
the
New
York
Exchange, have opened
office in
Vineland, N. J.
;
,
an
'
y
Placer
SENECA Oil COMPANY
CLASS "A"
Okia.
way. Eager¬
would
eliminate
hazardous
Data
&
under
results
&
com¬
subsidiary,
Kansas
those who lik¬
contributions
has
1048 by
by this
Chemical
are
"a little
to help foreign peoples to
their feet" should stimulate
on
long run some, if not
peoples, will become
these
of
to
us.
priming continues. Current
of the rest of the earth's peoples.
but is a level from whence the government reports emphasize a
Any attempt to do so must lead
greater Western European indus¬
lion's share of any additional pas¬
to our own impoverishment with¬
trial output today than in prewar
senger revenue can glide comfort¬
out materially raising the stand¬
days and the implication is that
ably into the net earnings column.
ards of others. One of the basic
the credit belongs to our econ¬
The airlines have now come of
feldt
seem
a
are
dollar
priming. They
money
.
GREENFIELD & CO.,
40
line
current
general
around 63% not
Jones and
j
INC.
Tracerlab, Inc.
isotopes
Airlines
Desires
Company organized in
tests
every
Somewhere above 60 seems
the break-even point; and
Friday
here
If
movements
outright gifts. If they be
returned to us via the purchase
route, obviously we shall be out of
pocket, for they will be our dollars
paying for our goods and services.
In fact, this
situation extended
over
enough years must lead to
bankruptcy, for our wealth is not
pump
we
WVUHVHHVVWHVHUHWHl
PRODUCTS,
pany
investors
factor.
paying travelers, nearly
leader,
airline
load
hardly necessary just yet.
Eastern
After
the
conceivably could gain mar¬
altitude,
although
oxygen
giving personal attention to each
assay
A M R closed
It's
the
intentioned
these
assistance
competitors
This
infinite. There
the
repercussions
generous
in the
But
largely
en
possible
we
of
some
expect them gradually
increase their purchases from
suppos¬
edly
Incidentlly
overlook
not
could
international
trade
should
through
"get
their feet,"
on
of seats contain fare- get
rates
haulage (from 63 cents
ton-mile down to 45 cents) don't
this
trade
only 50%
hit
asts.
of
way out
Air transportation is like base¬
high
two
Colonial; and
flying their
are
year,
1950 deficits.
tion, it should now be in a better
position to pass along some of the
months
leaders,
far this
so
Northwest and
ever,
only
the
among
operating plus
an
plane
modernization
pro¬
gram well along toward comple¬
lush current earnings to expectant
shareholders who, in 1950, received
are
but every one in the trade shows
save
a
arising from our technical aid to
underdeveloped
peoples.
While
we
are
raising their standards
business.
our
well
mailboxes in 1951.
These
support
rehabilitate.
to
levels.
normal
ultimate
America
Adores
Speed:
de¬
zling contrast We
through acquisition of 40 new optimism
worship the fast ball of Bob
to
a
short
objec¬
Convair-Liners
and
20 DC-6B's serves
Feller, the cannon-ball serve of
this year and next, a trend toward tive analysis.
quarter cen¬ Bob
Falkenberg, the 300-yard bul¬
The
dollars
Ira U. Cobleigh
a
net figure substantially above
tury ago when let
golf ' drive,
the gunned-up
the $2.90 per share of 1950 is per¬ we send away
only 6,000 in¬ start from the
turning traffic light,
the
trepid souls essayed altitude trans¬ the fast horse at Belmont, the ceptible. Maybe, too, larger A L under
Dr. E. Van Cleef
Marshall Plan,
dividend
checks
portation, by buying a ticket and
may
make
a
lightning quip, and the Super
the Point Four Program, or other
landing in shareholders'
stuffing cotton in their ears.
Constellation!
We're always in a happy
(7)
cannot
half-billion people whom Administration seeks
Proponents of the idea of giving reciprocating the
indicates the built-in
courtesy by tak¬
progressiveness
here, monetary support to foreign na¬ ing' steps to reduce the risk to
corporate
and
back." Warns
:
404s, adaptable for jet
propulsion,
shares in
Capacity
olanes
daz¬
a
or
tiply the travel demand.
revvs
to the big¬
up
(5) Greater Necessity for Tra¬
vel: Military personnel, business¬
men
and engineers traveling in
a burgeoning defense effort (with
a
lot of new enterprises widely
dispersed), people moving to, or
visiting, such fast growing sec¬
tions as California, Canada, the
University economist attacks "pump priming" concept
foreign aid program, and contends it is illogical
unlikely to sustain theory that "our dollars will come
of elaborate
cently
Last
Will Not Come Back
Captain Eddie
Navy phrase, runs "a tight (cor¬
porate)
ship."
Extraordinarily
Killing in Wall Street and Keep It"
a
Commercial aviation
:
■
INC.
5
11501
:;;;g
WALT DISNEY
PRODUCTIONS
LEAD-ZINC
TUNGSTEN-OIL-GOLD
Information
f
2
\
BROADWAY, NEW YORK, N. Y.<
iWVHHVVVll
Development,
Limited
on
request
■
Trading
Analysis
market
available
Analysis
maintained
on
Upon
Request
request
GENESEE VALLEY
SECURITIES CO.
John R. Lewis, Inc.
Powers Bldg., Rochester 14, N. Y.
1906 SECOND AYENUE
Telephone LO 3190
,
:
Teletype
KO
St
_
,
.
Teletype SE
44 Wall St., New York S, N. Y.
Teletype
SEATTLE
105
BUTLER, M0SER & CO.
NY 1-1662
ELiot
3040
BOwling
Green
9-0040
Volume 174
Number 5044
.
.
.
*
*
5
(811)
The Commercial and Financial Chronicle
■
>rn the exercise of the freedom of
Steel
The
PORTUGAL-The "Benevolent"
Production
Electric Output
Retail
State of Trade
Dictatorship
Trade
Commodity Price Index
Price
Food
Auto
Industry
/
a
.11
i
Unique in her domestic political
form,
and
activating inconsistencies
ironies in the Western
and
Powers' foreign policies, Portugal
stands
noted.
000
week ago
This
tons.
net
was
the
since
time
first
last
the
Democracies
West-
week's
output was,
ern
the current week that manufacturers who for¬
merly gobbled up tonnage offered at two or three times regular
mill prices, as a result of the steel shortage, are beginning to shy
away from such high-priced deals, according to "The Iron Age,"
national metalworking weekly.
It is reported
The
for
burden
this
siderable
instead of the exception,
Unbalanced inventories, now the rule
A. Wilfred
purchasing plans of some manufacturers.
There is a
tendency to gear procurement of other items to those which are
hardest to get, this trade authority notes.
can
;
.Actually, demand in
some
consumer
Materials Plan
Controlled
is
Ensuing
Ensuing
exert
of her
putting
a
conversion
and
foreign
sources
rose
in
8%
tne
A further
state
on
scheduled to return
the company and the
hourly wage increase,
tary system in Portugal has over
decade been materially
strengthened.
Whereas in 1939
the
totaled
51,147,
decline of 14.2%
■
-394
as
and 1940.
/
but
as
..
'has
were
ures.
-
Retail
8%
acy
1
million,i
organizations accounted for most of the July decrease,'
page
enrollment
for
tion
Investment
Department,
Am
Association of America,
5?^,
33 South Clark Street, Chicago 3.
covering
checks
tuition
in
the
<-necKS covering xuuion in tne
amount of $125 per person should
Investment Bankers Asso-
~
investment Bankers asso
ciation of America, and mailed to
for_
Lge H
0strander
TreaSurer,
recent
discharge
as
created
power
o°13®
cial
and
political
£fs'I Security Buyers and Their
their
own
proper
(Special to The Financial Chronicle)
aims and those
society, and shall encourage
them to collaborate as members
ST. PETERSBURG, Fla.—Harry
0£
Qf the game commUnity."
Giying the nod to state interventionalism, it provides (in Art.
t
With Florida Sees.
contrary to
otherj
each
with
the course.
S. Myles is with Florida Securities
Company, Florida National Bank
Building.
41) that: "The State shall promote
and
and
an(j
individual
of
its
under
(Special to The Financial Chronicle)
CHICAGO, 111.—Albert T. Sal-
its blessing to the re-
Giving
striction
^.Qn
With F. S. Yantis
communityJ conprovident, cooperative
mutual benefit institutions.
encourage
cerns
liberties
Constitu-
aegis,
the
(jn
Article-
sta^es
8,
sec-
^
a
joined the staff of F. S.
South La
Salle Street, members
Co.,
Incorporated,
don 2): "Special laws shall gov- of the Midwest Stock
We
pleased to
are
announce
that
an
JOHN M; TITTLE
'is
now
associated with
our
firm
has
has been reduced by half.
29
from
a
democracy
are
many
of
ROE & FARNHAM
Investment Counsel
evi¬
on the liability
ledger.
The na¬
workers uniformly are
dent
'side
tion's
there
STEIN
...
visitor
^signs
.
135
South La Salle Street
the
poorly paid in terms of do¬
mestic purchasing power, and the
gulf between their standard of
living ' and t h a t - of the * small
:
a,
;
,
,
•
-
Chicago
3,
very
September
1, 1951
_
4
t
vesen has
Yantis &
by the Zezere dam,
On the other hand, to the
135
pr0mote
development of the national
Anti-Democratic Debits
.
on
..
the former amount of illiter¬
and
larger than those involved in last year's July fail¬
v
?
Continued
supply
money
hydro-electric
cheap
since 1942. Casualties were above one- :
those in the corresponding months of 1939
t
Applications
ujtt"p1KuS:dUoris,
should npnarfmpnt
be made with the Educa¬
of Achievement
WDl be issued by the IBA to each
tak- student successfully completing
state shall
a
been
■■
Fri-
Neeas.
the formation
A Certificate
network of excellent roads
merchant navy
been
importantly enlarged,
rule,
corresponding
■•V-V'
and
Wednesdavs
£*clasfwUl meetTn R^om
1552 of the Field Building.
has been built, the
from 59,629 last
Liabilities involved in July failures fell 7% to $21.1
Building
available), 58% of the money sup¬
ply
attained
foreign
exchange
backing.
The banking system's
gold and foreign exchange assets,
minus foreign exchange liabilities,
They dipped slightly below the 1950 and 1949
and 719, respectively, but outnumbered the July
numerous
21gt fl
R
Article 34 states: "The
"patient" reflects her strong
position.
Further under Dr. Salazar's
failures of any other year
half
the
of
inai949C(the latesTyear with^ata
Bradstreet, Inc.
of
economic
freedoms.
creditor
Declining moderately for the second consecutive month, busi¬
ness failures were down 5% in July to 665, according to Dun &
levels
sha'reholder£.,
restrictions
ECA
;
■
27%
nation's
;;V:.
a
likewise
other overall
during the decade rose from lx/2
to
13
billions of escudos.
The
months of 1951 new stock corpora¬
but a rise of 1.7% above the 50,307 for the
period of 1949.
? 'V'-
past
only
t
formed
the infla-
effects, tradition-
ally ensuing from the policies of
authoritarian regimes, the mone-
v'4!;v New business incorporations in July continued at a lessened
rate with the number falling 6.2% to 6,386, from 6,810 (revised)
during June.
This was the third successive monthly drop, bring¬
ing the July figure to the smallest since last November with a
total of 6,256.
Compared with 7,191 corporate formations in July
a year ago,
the current number shows a drop of 11.2%, Dun &
year,
sharp contrast to
In
Copper was
Inc., states.
have ranged from balancing
for the furtherance
capitalism, to steps at the work-
tion-producing
early end of the five-day-old
industry which "has cut off 95% of
the nation's copper production. The Anaconda, American Smelt¬
ing and Phelps Dodge companies were also expected to make
speedy settlements.
1
'
'<
. ;
tions
Constituti0n
maijzes
tion
bedding" to bring about full em-
strike throughout the copper
seven
by its Prime Minister, Dr.
ployment.
The above action indicated an
y During the first
"die-
been
p' level such as forced 'feather-
immediately to extend it to all other plants.
Bradstreet,
he allowed
corporative against
of the budget
plus a pension plan costing 4x/2 cents an hour.
The initial pact
covered
only Kennecott's Utah division, but steps were taken
^
Con-
«triirp*
corporative economic system,
jng." care to preVent any tendency
among
its constituent bodies to
induIge in unrestricted competi-
om,y,
Friday of last week with the men
their jobs on Saturday. Negotiators for
unions agreed in Washington on a 15-cent
fnrhU
and
of
to
reached
(Political
all-powerful manager of the econ-
agency
to
unions,
The coun-
sor, through reforms at all levels.
These measures effected by this
cars
the labor dispute at Kennecott
be held
continental Illinois National Bank
no
are
constitution
or—
xrys constitution (rouuccu con
stitution of the Portuguese, Re-
The
Salazar, the scholarly,,
self-effacing, ascetic, and wholly
devoted former economics profes-
gain in output was prevented by a one-day loss at
to materials shortages and the continuing Reo
of
There
are
Oliviera
due
settlement
1926
since
has
cated"
was
according to this trade authority.
With car programs
362,000 units this month, manufacturers will end the
third quarter having built about 1,167,000 units, some 32,000 under
National Production Authority authorizations, "Ward's" predicted.
A
workers
—
and hence no strikes.
Salasar
"benevolence" of this com-
underdeveloped
plex
August,
pared
agricultural
——
(Article 39., In their economic
The Benevolent Dr.
predicted United States plants will produce
and 108,000 trucks in September, with each total
representing a decline of 14% below the August estimates of
423,000 cars and 123,000 trucks.
The drop is generally attributed
to
the four fewer working days this month
compared witn
This
362,000
will
week from 3 to 5 p.m.
to suspend operations witn tne
,
T
oaiip
Q+rpPt
nrior
to
object of imposing their respective |outlh La baile , Street, p o
claims"). It insures the State's
* _
*
control over labor contracts; (ArTopics for the course are Inticle 37. "Only economic corpora- vestment Banking and American
tions which are recognized by the Financial Institutions; Instruments
State may conclude collective of Investment Banking; Basic Conlabor contracts, in accordance with cepts of Investment Yield; How to
the law, and those made without Head Financial Statements and
their intervention shall be null Corporate Reports; Analysis
of
and void")
'
Major Classes of Securities; Spe-
Tne
strike, "V/ard's Automotive Reports" stated.
Motors
and
Ciasses
lst
in Chicago
State-snnnsnrpri
the
fhrnnerh
tion through the State-sponsored
syndicates in which all industrial
capital not'labor_shall be* all°wea
orbit.-^
23% below the corresponding 1950 level.
Studebaker
^
relations with each other, neither
the first
it
tinn
Qct
School
University
Northwestern
on
Central
Monday sessions will be held in
Strikes
No
Unions No Strikes
since become dis-
-
eagerly
week,
Unions
No
A 1 wage contracts between
workers and employers, including
the fixing of wage rates, are effected with government interven-
from our international
rolls only because of her
politicalmilitary sphere she has been a
member
in - good - standing of
NATO, presumably on the philosophy that this dictatorship did
not stoop to Franco's World War
ll's cronyings with Hitler and remained within Britain's friendship
sending out first-quarter
their CMP allotments. The
hardest part of the job is picking a base period which is fair and
consistent on all products, concludes "The Iron Age."
production
the
by
offered
Group in cooperation with
relief
quotas to which customers can apply
automotive
banking
states
three days a
million of ECA funds in
having
financial strength. In the
quarter some domestic mills have started
While
of tne "be-
0P.f.L navms since oecome ais
There is some resistance to high prices, but it isn't being
turned down when the price is right.
some
to
probrium.
nMio)
1950-51
sought.
In their efforts to restore some kind of order during
sup-
Training Course
CHICAGO, 111. — The tentlf
training
course
in
investment
0f Commerce will open
ganized.
<
classification
classification
as
union
s
interesting
is
Tenth
qualified
damper on
still
is
dictatorship
with $55
market, and finally, the spotlight of Washington investi¬
gation is a source of glaring embarrassment to businessmen,
whether they are guilty of questionable practice of not, "The Iron
Age" points out.
from
the
tne
nevolent" varietv for these several
the gray
Steel
from
from
2!Y?_
durable lines (particu¬
also
neighbor Portugal.
door
larly appliances) is disappointing.
At least two large makers of
appliances plan additional sharp cut-backs in fourth-quarter oper¬
ations. Despite sales campaigns and lower prices, sizable inven¬
tories of finished goods remain.
The
a.i
fa-
vnrahiA attitnHo tnwara hpr npvtvorable attitude toward her next-
high-priced material to
Regardless of demand for their prod¬
artificially regulate the impact they
materials.
WA'ii i-
-nm
contrastingly
their
highlight
manufacturers to go after
curbs
lending,
black-balling from NATO; an
and
the supply Of basic
on
Ex-
in
port-lmport
May
Bank
restrictions, it adds, have also neutralized the in¬
keep their operations high.
grants,
delays
it
(plus
Portugal to which the unions from
abroad have fastened no such op-
*
ECA
Central States IBA
the
of
West
the
of
Franco
by
pression
withholding of
have altered
ucts, such
dictator,
o u s
responsible
Even some firms of con¬
incited
family
the
from
to examine the workers' situation in
Spain
and its notori-
high-priced inventories is partly
of
some
op-
Position;
Fascist
tory, some of which was acquired at premium prices.
centive of
continued
displays of
attitude, the magazine notes.
means are feeling the financial strain of growing inven¬
Production
Democra-
cies
Last
,
sl0ns-
Greece, Turkey and Yugoslavia)
has largely resulted from British
and French labor union agitation
The
sub-
and
dictatorships,
century
Spain's continued black-
terest.
in
week
century
.
Since
standing in-
100% of capacity.
however, nearly 7% above a year ago.
18th
sta*-tially adding to the democrac.ies lnternational policy con u-
listing
February that steel operations dropped below
benevolent
a
the
of
wealthy minority is very wide
indeed—probably as great as the
rich-poor schism in neighboring
Spain.
.
nation of out-
99.8% of capacity
reduced steel ingot production to 1,995,-
A very moderate drop in steel operations to
.
.
into
fitting
type, but unique among the 20th
a
as
social force.
»'i
,
.
,
on-the-spot observations by the author in Portugal)
recent
on
a
All
*
despotism
■■■'*.
,
,
based
article
f An
industrial production declined slightly
last week, but it was modestly above that in the comparable week
of 1950. Employment as in past weeks remained high and steady
with a mild contraction in initial claims for unemployment insur¬
a
bed-fellowship with Spain's
neighbor is scrutinized.
J)
from 100.4%
public opinion in its function
as
In which the Western Democracies'
•
The aggregate total of
1
of
or re¬
perversion
strictive measures, the
Production
Business Failures
by precautionary
prevent,
By A. WILFRED MAY
Index
L.
ance
shall
regards the first item, they
Carloadings
and
expression • of opinion, education,
meeting and of association.
As
,
Illinois
135
Exchange,
6
(862)
The Commercial and Financial Chronicle
tributable
:
Why Is United States Industry
f
So Productive?
f
adapted
small
five important factors in America's
less
population,
world's
States
the
7%
the
produces
the
of
40%
Mr.
lowest clerk.
vided
This
could
where
get his
he
that
meant
for
rewards
great
who
market
good
a
were
could
Board of Directors and the President and extend down
they pro¬
for semi-
but
anyone
ities and make
costs down to
the
meet
of the large middle class.
If
any¬
property, but in large parts of the
e x
population
traordinary world,
especially in the Near East
productivity and the Far East, the insecurity
of
American
of
few
Human
of
large
.
of
amounts
power
using
-
tive
plant
and
them
causes
metals
producequipment and
hoard
to
jewels
or
of
retarded."
is
efficient
middle
only
class
helped
ple
of
Think
low
m
a
management
of
n
which
economy.
act
types
of
loco
*
.such
the
development of staff
erganiations to help the line or¬
as
ganization
and
development
the
of
chain
<
business
'States
is
order
super-mar¬
,
,
Rico
or
the
United
energy per worker than
other countries and why has the
United States pioneered in de¬
natural
veloping
ing
managerial methods
types of business organi¬
new
zations? These are the questions
that must be answered in order to
explain why the small number of
people in this' country produce
nearly 40% of the world's goods.
The
answer
found in
a
to
these questions is
combination of condi¬
tions.
Each of these conditions is
found in some other countries.
Why then have not other countries
developed the
tivity
the
as
births
about
in
number
a
where, the property of
the well-to-do consists largely of
United
the
200,000
the world
year.
land and where the land owners
have no ambition to improve the
lation—This is not a unique con¬
dition, and a mere rapid growth
;of population does not assure pros¬
perity as the condition of Puerto
mail
use more
new
normal
of business or¬
as
.But why does the United States
iand
the
(3) The Rapid Growth of Popu¬
stores,
kets.
or
of
that
business
new
rriethods and types
ganizations, such
houses,
invention
observe
high produc¬
same
United
States?
For
the
India
reminds
States
But
u's.
the
in
operation of their estates.
the
resources
to
develop. Dur¬
large part of the 19th cen¬
a
tury the population of the United
their wealth and who
States grew
to
in
a
decade.
much
as
one-third
as
managers
last
class—they
century is still
economic
influence
attitudes that
United
important
an
because
helped to create
businessmen still persist.
among
of
rapid development of the
country, made possible in part by
the
growth of population, pro¬
duced
a
persistent shortage of
United
States.
In
ditions
"
ticularly important in explaining
*Sun;mary
Slichter
of
remarks
before
the
by
in
the
Professor
School
of
Banking,
Madison, Wis.,
the
willingness
before it is
States—One
of
South
America
and
Asia
is
the
petitive.
suit
This
is
at?
of
middle
class.
of
to
money,
^
to
make
use
the eager
pur¬
meets
of the
York
New
New
York
New
York
it
.
i
Chicago
New
Curb
Exchange
•
Exchange
•
Spacious Rooms
•
Homelike
•
Delicious Food
Board
And
of
Cotton
other
Inc.
Trade
Exchange
•
Exchanges
•
competitive
and
competitive.
It
to
DETROIT
"
Intimate Cocktail
Lounge
Excellent Service
to
expand
their
IV, r
reserve tfons
Theodore B.
order
for it.
cause
trustmen
banker
was
didn't
sociate
If bankers
blame jmly
can
tomers— the
business
was
little
a
on
pedestal and
a
down
come
talk
with
him
tin
to
his
people
very
kept
fTjater-
In those days, the
up
to
wjTfl
honest
are
even
and
Cer¬
There
themselves and the whole
struck
rock
good
a
the
case
sell
and
lations
is
having such
company
product
of
Public Re¬
long-range study and
understanding your
It can't be superficial
men.
routine, but,
it must be
service
as
distribute.
a
program
fellow
or
a
In
pro¬
important in
more
intangible
to
com¬
be services.
may
an
of
have
though these
even
Public Relations
is much
gram
the other hand,
on
true and sincere
a
rec¬
ture, must start with the Board of
Directors
and
God
whose
He
conde¬
and
in
'
'
the
early
*
;
Since 1933 banks have started to
•
back
earn
some
of
the
public's
confidence—something they
the
never
Even with all of
effort
and
money
that
has
that
the
surface
in
selling their
trinate each
he
will
the
President.
new
many
employee
immediately
officer,
It
that
so
it.
No
the President,
himself too im¬
sense
including
should
consider
portant
to
participate actively in
We all know it takes
the program.
only
to upset the applecart.
have all heard about the
one
And
we
attitude of
one stuffy banker
up¬
setting and nullifying all the good
work done on public relations
hy
the
rest
of
the
staff.
know
of
as¬
cus¬
there!
up
bottom
1930's.
on
avoided
'
,
price-cutting
(the
decision
recent
should just don't
Supreme
limiting
the ef¬
Miller-Tydings
step forward); and (4)
Act
is
a
should
not
be
man
2?
seem
nature.
some
banker
to
a
as
fish."
discour¬
Only
mutual
or
a
a
have'heard
us
trustman referred
shirt"
short
associate
aged from striving to grow larger
simply because they arc alreadv mented about
large.
to understand hu-
All of
"stuffed
business
54fh St.,New York
fact
Both
sell,
commodities
personally
where
bank
a
is
like
and
man
a
fact, I
situation.
spending
siderable money on
tions
In
a
program; and it's
throwing money down
The public relations
drain.
has
no
bank
can
is
backing
and
the
undo
cers
within
daily
bank's
public
his
own
offi¬
any good will he
My brother
up.
personal
a
the
man
executive
top
possibly build
also
con¬
public rela¬
a
friend
relations
of
man.
that
' He
commented
only
last
weekend,
"Poor Bill is
just knocking his
head against a stone wall over at
the
National
;
Bank."
Then
he
added, "You/don't realize how
lucky you are." "Why?" I asked.
"Oh, he goes overboard trying to
build
up
the
place
to
do
boss of his
bank
as
a
business.
goes
friendly
Yet,
that
around
outside of the
concerns
at
doubt?
customers.
markets, that should have lost.
fectiveness of the
Archibald, Manager
Madison Ave.
some
and
the
responsible
was
been expended by both banks and
competi¬ trust companies, these institutions
be stimulated (1) steps have done little more than scratch
In
business.
modities to
ac-,
snubbing
people every day. Why I, myself,
have had several business
dealings
straints
PITTSBURGH
GENEVA, SWITZERLAND
fellow,
any
other
exceptionally
able
young
men there probably are still too many
should be increased; (3) legal re¬ individuals in banking circles who
Atmosphere
PLaza 3-9100
CHICAGO
other
may
Court
Exchange Bldg.
NEW YORK 4, N. Y.
fear
not
nity of bankers.
is
market faster than one's ri¬
increase
the
petent and experienced executives worth-while services to the pub¬
to start enterprises of their
own; lic. One reason that more progress
(2) educational opportunities for has not been made is because
be
N. Y. Cotton
And who
this
and
he
were
is
should be taken to encourage com¬
Central Location
Exchange,
Orleans
discerning
Exchange
There
explains why
labor
more
products.
tion
Stock
Cotton
Commodity
the. requirements
con¬
the banking departments
much trust
business disap¬
tainly
It
makes industry progressive, eager
to
improve its methods and its
■'
Members
for
tech¬
com¬
trustman
situation
brick.
and
peared.
to
econ¬
and
the
on
and
American
out, to
Finally,
for
the
vals
H. Hentz & Co.
marble
runs
his
equipment
scrap
worn
highly
one's
1856
to
the scended to grant an audience to
strong and his public only when absolutely
why wages are high.
necessary.
So probably bankers
.In order to keep the productiv¬ and trustmen themselyes alone are
ity of the American economy high responsible for the faci that public
it: is important to keep the econ¬ opinion of financial institutions
sell
Established
banker
was
competition, the desire to under¬
\jf
each
back
explains themselves, they
the
many
And
fronting all banks and trust com¬ should
pervade the whole atmo¬
panies after the economic collapse
sphere of the organization—down
of 1929.
People had little or no to the lowest
clerk. And to keep
confidence in their emporium of
it rolling, it is
necessary to indoc¬
innovations,
wealth
demand
omy
large
make
explains why the American
omy on the whole is highly
the
United States and the countries
of
Let
think
true
nological research in business.
The-Large Middle Class in
conspicuous, contrasts between the
it is also
wealth,
receptivity
to
United
to
businessman
This shortage helped
e
by
use
types of business.
ognition of the other person's feel¬
vor
of
government
ownership. ings. And to be 100% successful*
And whenever a politician today you can't practice it only from
wants to place the stigma of dis¬ nine to five. You've got to live it
repute on his opponent, he shouts, —all day—at all times—and in all
"He's
merely
a
tool
of
Wall contacts with your fellow man.
Street!" So strong is the feeling
Must Start at Top
of the public against the epitome
of
the
banking
and
financial
Like any other policy, Public
world.
Relations, because of its very na¬
leisure
manufacturers.
one's
to
t h
n
a
and
drive
relation
helped make them willing to try
improved methods and equipment.
(4)
Five conditions have been
par¬
University of Wisconsin,
Aug. 29, 1951.
markets.
materials
the ers eager to increase the capacity
words, ...of'their enterprises, and thus
other
found here.
and
a
to
and
money-making
is conspicuously true
retailers
This
i
not
are
are
This
increase
trouble
owners
industry
the farmers but
of
The
of
States
class.
the
it
The
money.
willing
are
considerable
much slower today than in the
past, but the rapid growth of the
in
what makes the United States dif¬
ferent is the combination of con¬
to
go
make
Population growth is
make managers and business own¬
productivity
low.
are
America, on-the other hand,
most industry is in the hands of
people who are eager to increase
Its value has been
through its
institutions and is strongly in fa¬
In
growing population had abundant
of the
high
to be low and
hence the wages of labor
'
men
for
When
satisfied to enjoy
are
■for labor is bound
rapidly
simple reason that in. few
other countries does one find all
conditions that have made
wealthy
what they have rather than to in¬
crease their incomes, the demand
good Public Rela¬
banking and trust businesses
tually are no different than
to
restrained
,
influence the
to
way
he
a
other
(5) The fact That Industry in parentis, or
the United States Is
Largely in in some other
by class lines which the Hands
management
Prof. S. H. Slichter
of Men Who Desire to close personal
prevent or discourage large num¬
Make Money Rather Than to En¬ and confiden¬
organization.
bers of young men from attempt¬
"
Not only does
E. M. Heffernan
joy Wealth—A principal cause for tial
capacity
the United States produce nearly ing "to rise above their station." widespread
poverty and economic for a person
40% of the world's goods, but it The lack of social stratification stagnation in
Yet trust
many parts of the or an entire family.
-also produces almost 40% of the also encourages the children of world is the fact that the rich are
companies and banks leave much
all classes in the community to
world's energy. So there is a close
to be desired in the opinion of the
pretty well satisfied with what
relationship between the use of aspire to professional, technical, they have and prefer to enjoy general public. A recent survey
and managerial careers, thus mak¬
energy and output per worker.
wealth rather than incur the cares shows that even today about 25 %
in these fields and worries of
The United States has also pio¬ ing competition
of
the
public apparently lacks
increasing it. This
more intense.
It is interesting to
neered in managerial methods,
is especially true in some parts of complete confidence in bankirig
and
sure
proved
have
in
going to
are
tions program.
in
asked
One
public is by
n-
trust¬
e n
we
progress.
case
of
"In
nothing
is
chang'd, but in his garments."
the
i
y
before
much
a
the
sta nces
the distinctive
American
peo¬
♦
create
President of the United
With apol-;
ogies to Shakespeare, it's too often
country.
cation—The starting of new busi¬
nesses in the United States is not
methods
make
one
in
been
one of
are
to be the
overcome
any
of
group
a
er
features of the
rela¬
as
other
margins
(2) The Lack of Social Stratifi¬
an
tions
Incidentally, the
really
are
And
trustmen States—or, at least, the next of
probably have as kin—to get in to see him." It is
opportunity to practice that very feeling that must be
human
are more profitable than
high margins because they make
possible such large volume. Small
-
,
afford
can
Relations
Relations.
an integral part of
of advertising and publicity.
use
bankers
great
a
margins
equipment per land. Thus the
growth of the pro¬
and
ductive capacity of these regions
use
a
the kind of markets in which
in
worker
the
and
who
large
between
(mostly land
large number of
bare subsistence.
precious
invest
to
or
divided
and
wealthy
very
persons
industry is the investing their savings in
use
is
owners)
prevents savers from
property
Public
_
banking and trust business
society. Calls for judicious
our
needs
doubts the importance of the
(1)
the
to
Stresses need of having employees become in¬
tegral part of program if it is to be one of human relations.
Says bankers and trust men must be leaders in their commun¬
there
Security of Person and middle
class, let him reflect on
goods.
The imme¬
Property—Many other countries the kind of markets that exist in
diate
expla¬ provide
security of person and South America or Asia where the
nation for the
world's
HEFFERNAN
Heffernan, in discussing public relations programs of
out good public relations must start with the
rich
not
were
one
of
M.
1 banks, points
luxuries.
the
EDWARD
Trust Officer, Ann Arbor Trust Company, Ann Arbor, Mich.
kinds of markets made pos¬
ple
high productivity of American
United .industry. They are:
almost
By
farm owners and the
well-paid workers had important
effects on technology. These peo¬
part of industrial managers to make money rather
than
Aie Human Relations
and
farms
beginning of
country high wages for labor.
The
than enjoy wealth. Stresses
encouragement to private business
promotion and investment as means to increase productivity.
With
owner-operated
sible by the
(1) security of person and property; (2)
lack of social stratification;
(3) rapid growth of population;
(4) large and influential middle class in U. S.; and (5) urge
on
Public Relations
in
duced from the very
high productivity:
in U. S.
cultivation
to
tion to natural resources that pro¬
Professor, Harvard University
as
best
Thursday, September 6, 1951
.
conditions,
the scarcity of labor in rela¬
(b)
the
Professor Slichter lists
>
several
in the North and Middle West was
By SUMNER II. SLICHTER*
Lamont University
to
(a) the fact that the land
such as
.
.
of
or
a
"cold
time -ago
mine
a
com¬
with
him
whether
he
when
I
bank, I'm
knows
the
entire
officers.
the full
staff,
meet
him
never sure
me."
program, in order to be
must have
Such
a
successful,
cooperation of
particularly the
No officer should
be too
busy with the operational details
of
the
bank president of ments
acquaintance, "You've got
and
banking and trust depart¬
to
devote
time
Continued
to
on
anyone
page
31
Volume 174
Number 5044
.
.The Commercial and Financial Chronicle
.
:
;
J
!•
'
,
:
'
'
'
(863}
■
,
The Wholesale Commodity
Price Outlook
;
products particularly. Changes in that the broad trend will continue
either direction, at least over the to favor somewhat lower levels
particularly textiles. Just when a
revival will come is anyone's guess,
unlikely to during the months immediately but I shall go so far out on a limb
drastic.
ahead. High inventories in many as to forecast at least a beginning
categories, consumer resistance to of an upturn by October of this
Foodstuffs
inflated
prices, previous heavy year. Most textile raw materials
general sentiment inclined buying on credit terms of all types are in ample supply. Prices of
optimistic as regards the of civilian goods, failure of the textiles as a group, may average,
immediate future, are
prove
,
;
With
By HERBERT DOWNWARD*
be
to
Commodity Editor, Business Statistics Organization, Inc.,
Babson Park, Mass.
im-
rearmament program to get rolling
somewhat
proved demand in some categories,
in high gear, as well as other factors, will put a rather firm brake
on the industrial machine. Nevertheless, demand'for many industrial materials will continue brisk
and broad.
Prices^ in general,
should be well maintained; but
some individual items may firm,
reflecting higher costs or chang-
term.
economic
situation
with
and
'
downward pressure has eased on a
Referring
to recent decline in commodity wholesale prices,
Mr. Downward ascribes it to: (1) extent of postwar riso; (2)
end of panicky buying which followed Korean war outbreak;
number
consumer
debt commitments; and (4) large volume
goods.
Holds further price reductions possible,
consumer
unless international situation
prices.
In
of strength.
It is too
soon, however, to conclude that
food prices in general have re-
•:surgence
outlook for
Reviews
worsens.
foodstuff
of
instances, notably canned
corn,
canned
peas,
and
flour,
there already has been some re-
some
*
(3) heavy
of
building materials, foodstuffs, fuel, grain, livestock and textiles.
chief
present
versed the downward trend which
buyers, sellers
and
of
concern
processors
cerned.
of
credit regulations are not helping
wholesale commodities is whether
this
High
inflationary
forces
not
in
too
-
fording
xcugc
The Korean outlook
Seasonally heavy
(6)
mar-
c3VI^3r
kew"I 0f b?mHL U; S; Cr0PSWith most of the factors men-
dis-
Hnnht
that
able
pvpn
it
than
the
to
Korean
.*°r®aiJ
J?-*.
;
favor-
parlv
an
concluShDn
?
future.
There
to
appear
additional
moderate
,
price
situation
con-
easing in this group.
&
&
be
the
operative, and *
heavy ; marketing of live-, ■■
stock, cotton, rice,
certain
and
otol\
l-i
whol0ssl6
wholesale
dity
prices, as
measured
Downward
by
the Bureau
me
nureau
been
Deen
of
the
me
on
average,
for
ior
u
8.,
some
some
pected
depends,
almost entirely
from
the
in
De
ex
opinion,
my
in
in
its
its
Clde
p
extent
extern,
S
this
war.
infiatjnn
p
n
year
would
he
But
trojg
or
in-
f mtiation would oe in
The
workable
rran
-nrt
if
or
iu
•
±
con-
TaYy. f
•
j
wide
Meanwhile,
use.
the
of
will
latter
con-
supplies oi me latter win con
tinue to be none too plentiful, in
contrast
to
Xkf of
'rather
the
stocKs
hJahc
hovp
in
chorn
hnpn
way
are
pOSSible in
a
natural
in
x
seven
num.
"/.'T
cumbersome
lighter
down
some
price
with
possible
the
18.5 /o\
Hides
a
3.3%
e
June
over
tb|
for
000?
of
exception
10.2%; wheat at
New
the
are
in
following:
duration
and
themselves
.able
over-all
this
connection,
familiar
price
is
This
In
of
in
war
Korea
on
June
they
have
in
yet,
many
that
in-
been reduced to normal
buying naturally has
stances,
levels.
not
inventories
as
New
the
population
now
out
involved
deeply
of
major
the
market,
com
mi t
far
as
m e n
t
s
as
are
—-
jjt
any
con-
.
,
bulwa k
127.4% above July
and
increase
was
situation
the
about
undoubtedly I re-
various restrictions on
a
whole
will
fare
,
The to-
the matter of profligate spending
Pe^
dollar may
.
me reason that u. s. ceijmg prices
power. If, on the other hand, Rusgjg plcivs
too low to Httr&ct the needed
the fool snd ooenlv
fOT
volu,mf °f
largest
d:4.:on
average
be
t
some-
do-
tTnTe htavv "afmanTacturers^v'ie mmlon.then tbe inflation potential
as manuiacturers vie in this country, despite all con-
;lnue
Hnptinn
ductlon.
bave
Hi«strihntinn
anH
and
rlsen
appreciably,
cnhstantiallv
?
trols
would
w°uia
'
costs
distribution
mount
ranidlv
?
in
some
in
during
the
Meanwhile
m<%dn.wJllie»
should
the
manv
,n
*•
these
higher
costs
(and
snouia tnedomestic
.
j
thev
still
,?
iSm
*•'
•
•
x
evervhndv
hannv
New Branch Office
Textiles
.
entire textile
The
a j
ver-i^vifnUv ^te^Sdrf voS?-^
Harris, Uphani Opens
industry,
'
Harris, Upham & Co., members?
of the New York Stock Exchange^
est' hope lies in the fact that soft ward Accnpmfp»H with thp»m ManOppersdorff Assistant
r,-r\r\Ac<
/-lr\
nnf
loot
milofmitolv
oOpt
PC
goods do not last indefinitely, that ager. Associated with them as reg-
inventories
are
u,
' " J Xai 7™,
ni,,,
ienerallv
substantial carryovers of old-crop
SUppijes> mean that the United
states
may
very
well be faced
w^b some surpluses. In that event,
it .g bard to gee bow prices 0f
jtems even jn comparatively short
suppiy
can
ciimb
stimulus
tbe
out
very
high with-
of brisk
exports
shooting
war
Most grain prices, with the
probabie exception of corn, appear
to be pretty well shaken
down,
an
or
expansion
of
the
pig
crop
increase
along
INVESTMENT
materials,
Industrial and Miscellaneous
tion
shutdowns in
soft
goods
although actual short- dustries and automobile
probably will be averted, tion curbs.
Indications
plentiful,
ages
BANKERS
Established 1925
continue i.i the narOver-all industrial
production
row-to-tight supply category dur- ]ast month dropped moderately,
jng the months just ahead. Brick reflecting, for the most part, vacacement also will be none too
*
domestic
substantially, during tne and international situations con^ Su° Aar' "ley ?PPeaito tinue about as at present,, there
a
ucts," will
and
nnrt
costs eventually would burst its bonds,
of recent
Ja
seasonal lines.
especially metals and metal prod>
en—
E. Eddy, Jr., James M. Crosby,
Francis A. Farr, Ralph D. Kaufman, William L. Cooney, James,
A. McCabe, Mary P. Neville, Edward C. Sheehy, and Edward W.
Sheldon,
the
hp
mav
Prices of most building materials the
Babsonchart
Index
in-
producare
of
that
the
'iBabWs''summJ' Bu^ssToXences! ?thould be well maintained; some Physical Volume ot Business
New
Boston, N. h., Aug. 29, 1951.
government comes to its senses in.
production cutbacks are in effect
in many instances, and that an exQjven faVorable weather
pected supply stringency in some
^^ 00^ fourth types of durable goods will leave
corn crop this fall.
In ad- more money available for con:ndicati0ns are that output sumers to spend in other channels,
ent'
unusually spring
V
a number of building
are
in making
payments on new homes, television
sets, automobiles, and many other
items that they are temporarily
so
strong
a
well this year. V
^fallen off sharply. (3) Large seg.ments of
?"<}. <»«>urage ■more orderlymarketing generally. supplies of cop-
an
effort to conserve over-all cattle values may trend
essential raw materials for the moderately lower in the weeks
war effort and to check inflationabead> owing to expected heavy
ary trends. It is probable, in this marketings of grass cattle; wellconnection, that private home fed cattle, however, could move
starts will
continue downward somewhat'higher. Hog prices will
during the months ahead. Never- be under downward pressure this
theless, the construction industry fab> as; marketings of the large
25, 1950, resulted in such a heavy
of
nirtnrp
ment /in
along the line that followed outbreak
to be
,
building imposed by the govern-
"whatever goes
up
must come down."
(2) The
excessive and panicky buying all
saying,
accumulation
,
fleets
old,
an
,
,
30% under last year's record rate.
into
structure.
there
seasonal
consider-
vulnerability
potential
the
,
however, failed to show the usual
postwar rise
injected
industrial construction
,
of last year. Private homebuilding,
(1) The extent
the
of
was
from June and
modity price trends. Among them
thp
istered representatives will be Jay
b
y
above
July; expenditures in this field
amounted to $191,000,000, up 7.9%
com-
cause any immediate
as pointed out before,
bit? "IP" in
being reduced, that
nnttnrn
wbpat
^ba^beiow
of
in
for
responsible
wholesale
one
hay'
Tqso^vels al^of
t
^
which were high. These indicated
continued
of
the
of the order is to spur de- Hussia
If by some miracle
she
fense production, avoid duplicate decides
against all-out war with
orders for these strategic metals, the Western
democracies, and our
aJuan' maicauons are inarouipui
which
,
been
reversal
the bright side.
ver
figure of $16,691,000,-
Private
28.5%.
have
tors
this
3.5%
and
to
on
are'
stiu
rall
&
i3<8% above tne
$14)661)000,000 put in place during
,u
the corresponding period of ioro
1950.
number of recognizable fac¬
A
amounted
increase
fii*st seven months of 1951
8.1%; lard at Chicago, 10.4%; No.
yellow corn at Chicago, 5.5%;
York,
The pur-
.
much
jujy> 1950. This brought the total
2
Kansas City, 9.5%; cotton at
July
in
$2,790,000,000—an
butter, *6.9%, cocoa
imported item—
hogs at Chicago,
b
s
Total expenditures for new construction
is
which has been in the doldrums have opened a branch office at
f
g
j
output
in
this for an extended period, is anxious- 604 Fifth Avenue, New, York City,
bave been revised down- ly scanning the horizon for a break under the management of Jeromeearlier ^reilraEmolT"^
estimates
uxc clouds.
eltimltes crop in the uVuuS. xrcxxic»txa the bright- H. a UWUu.w, ■W««B6W) ^ ^l.crop
Perhaps uic uugntP. Boucher,. Manager, and Ed
country
fpl
tumbled
has
34.9%.
of
tune
near
Jne iignter oiis,^wnicn bave been better absorbed than WOuld appear to be little Manser
the trade evnpctcd
There
ii 7aa.nger
Snnnlies of hard fuels
Pany m tne trade expected, lnere 0f serious deflation, since, with a
purposes, buppnes ot nard tueis, 1S n0 assUrance, however, that Presidential election vear cominc
groups
Building Materials
an
to the huge
?
constant
under
are
by the Commodity Department of
beans—another
j
commodity
—3r
which are und®r constant study
study
item
the
nurnoses
commodity -groups
major
which
33% under its
of 78 c
oil
Linseed
the
This
commodity
was
high
pound.
is
which
rubber,
commodity
over
pose
wS SaSt
oUs
used mainly for home heating
are
uuuiiLU
mui,
imported
to
llda
j
recently
1951
uiopa
miiauon
number of crease in the months ahead, espe- prcjbable exception,
cially if the worst happens over
•
•
^
dera°tic'ndrops 'has" occurred Business Statistles Organization.
Uld^llL
prospects,
"v■■■'■•'''
instances
highs have been sharp in a numhpr
A
fpw
figures
of instances.
A few figures
ber nf inctpnppc
Of
mObl
most
—.
,
wholesale
1951
p
®
ou, wnicii nas for reiatively short supplies. Pro-
industrial
suoolies
com-
the
from
less general way, my
wholesale
sre
Russia
•
2^%; metals and metal It maybe helpful at thjs pojnt in Iran. .,
^In "the'case of individual
aRu^Uon prev^ilin^to^ach^f the
Grains, Feeds and Livestock
Although official August 1 indideclines
or
on
and ^inc continue to lag 0f public funds, the
between thtretsonThTtU t^ceiltag prices regahl ??me .f ^
~ lTno"
0risZ° reached
ij
on
livestock,
modities,
be repeated,
foregoing remarks present
more
«smg steel copper, and aluminum portance to
will operate under CMP_ - Con- worry. But,
not, the odds are coke, should easily suffice during are ciimbing in a number of incommodity prices, the months ahead. As far as the stances) will not force some boosts
in general, have shot their infla: longer term is concerned, the out-
8.5%;
a
price
if
,
tbat
farm and
than
other
an_out
on
t
evltable, despite government
nominal, but
only the comprehensive index, which is comprised of some 900 commodities,
Not
food products, 3.6%; grains,
international
uDon
a.evel°Pm^ts- &nouia "^sia ae
1951
^/o iromi tne isoi
not
not
u
biggest cloud
horizon
gland
E
.
develoome^
4%
thTfuels
i
*
miiauon is 10
August 21, this
which has been only
commodities
index
a
substantial resurinfiation [s, to be ex-
176.8% of the 1926
lies
lies
scope.
oricc
oil
the
be
to
'pkXZ
f
7
g
high of 184.2. The significance of
decline
oecnne
comprehensive
commodity
Whether
u
-j
downgrade
aowngraae
down
aown
average
its
products
pnmnrplipneitTP
the
tu
u
two months. As of
in
farm
wen
ui
comprehensive index, have
index stood at
the
ine
soybeans, tinues
corn,
Fuels
Iranian
down someindusb-y
what further before stabilizing or
could be severe, especially in the
developing renewed strength.
ca~p
nf hpaw fuel oil
which has
may
Herbert
f'Vio
H
for
c o m m o
'''-.if.';'
The
settlement
^ahead,
ately
u
other
first
alternative;
•J
"
Labor's
still
above
with
grounds
some
for
tioned
would
buying opportunity that
soon
Conclusion
views
•trolled Materials Plan.
*"
tant
a
not
may
Metals
fill
favorable, apparently: at
more
least
the
-
wuiuiuca
(5)
is
of
surgence
guuua
volume.
re¬
J?®
near
cidentally, many textile bargain^
are on the market right now, af-
ing" supply-demand ratios.
stiffer
and
the
over
situation.
cxvuidu
marked
a
prices
lower
But if all-out war should
occur in the months ahead, the
price trend would be upward.-In-
in
The
7
items may firm, metals and metal dropped
further this month, and
Members New York Stock
,
Exchange and Other National
Exchanges
UNDERWRITERS and DISTRIBUTORS
of INVESTMENT
BROKERS of BONDS,
Private Wires
•
Home
SECURITIES
STOCKS, COMMODITIES
'
at• aPhone LD-159
n ltA:eciffO
8
(864)
The Commercial and Financial Chronicle
Pittston
Company—Analysis—W.
5, N. Y.
Hutton
E.
&
Co.,
Thursday, September 6, 1951
...
Wall
14
Street, New York
Dealer-Broker Investment
Placer
1006
Radioactive
Recommendations and Literature
It is understood that the firms mentioned will be
send interested parties the
to
COMING
Limited—Analysis—John R. Lewis, Inc.,
Development
Second
Avenue, Seattle 4, Wash.
Products,
Inc.—Latest
data—Greenfield
&
EVENTS
Co.,
In
Inc., 40 Exchange Place, New York 5, N. Y.
Riverside
pleased
Cement Company
—
Card memorandum
memorandum
a
Gear
on
Lerner &
—
Also available 1*
Grinding Machine Co. and on Seneca
Seneca
Industry—Analysis—Sutro Bros. & Co.,
Oil
Company—Analysis—Genesee
Co., Powers Building, Rochester 14, N. Y.
120 Broad¬
New York 5, N. Y.
way,
"
Solar Aircraft
City of Philadelphia Bonds—-Semi-Annual Appraisal—Stroud
& Company,
Incorporated, 123 South Broad Street, Phila¬
delphia 9, Pa. Also available is a semi-annual appraisal of
Equipment Trust Certificates.
Sept. 6, 1951
of
for
Sugar
for
the
six
months
ended
June
New York
chart
of
Sept. 14-16,1951 (Hot Springs, Va.)
production in
supplying the U. S.—
sugar
Southeastern
Co., 90 Wall Street, New York 5, N. Y.
&
Inc.—Data
States
in
and
the
issue
same
areas
issue
current
are
data
Collier.;v;
Towmotor
of
ment
Corp.
on
Jacob
"Highlights"—Troster,
..V;^yVuV,
•
Memorandum
;.*<
■
Nebraska
'.><.. ■"
Transamerica
S.
Thermo
9, Mass.
King Ry.
Walt
Also
available is information
Co.,
40
tember
Ex¬
on
been
to seventy-nine
paying dividends 119
seven
received
earlier. Twenty-three of the
dividends continuously from
Of the other twelve, one started
or
years
Sept. 21, 1951
Bond Club of
Notes
of
undervalued
issues—A.
"I
truthfully
can
say
;
■
.
-
not less than
McDermott & Co., 44 Wall
American
tions which
upon
of
were
which I
retail
was
brought to
able to do
distribution.
As
of
my
now,
I
honestly
cannot afford not to be represented in the Con¬
vention
Issue."—Everett
Snyder
&; Company,
W.
Snyder,
University
E.
W.
Building,
Public
Utility
T.
Financial
S^s
W.
—
dustry
—
Natural
Analysis
Gas
Ill
#
J
annual Col¬
Day outing.
(New York City)
(Hollywood
Beach, Fla.)
Investment Bankers Association
Annual Convention
at the
Holly¬
wood Beach Hotel.
and
the
Natural
Gas
RALLY
In¬
J. Leff &
Jerome Solomon With
John E. Miller Go. |
John E. Miller &
Co., 30 Broad
Street, New York City, members
Co., Inc., 50 Broad
of the New York Stock
Services, Inc.—Analysis—Dreyfus & Co.,
Broadway, New York 4, N. Y.
Company—Analysis—Cohu
&
N. Y. Also available is
possibilities of Speculative Rail
o,
Ne™ England
Club
Nov. 25-30, 1951
&
Investors Diversified
York
(Dallas, Tex.)
Bond
the Waldorf-Astoria Hotel.
1952—Progress
Corp.
Paige—Circular—James
Street, New York 4, N.Y.
New
course
opens.
&
Building, Lynchburg, Va.
future
banking
Memorandum—Smith, Barney &
Graham
Jessop Steel
umbus
School
training
Association 26th annual dinner at
Scott, Horner & Mason, Inc., Krise
—
Dallas
the
New York Security Dealers
Co., 14 Wall Street, New York 5, N. Y.
Commonwealth
Oct. 12, 1951
;
of
Association-
University
of Commerce 10th
in investment
Snyder
report—New
Corp., 120 Broadway, New York 5, N. Y.
Corp.
Group
Bankers
Nov. 16, 1951
Street, New York 5, N. Y.
of
States
Northwestern
pretty good job
a
P.
Screw
York Hanseatic
50
Central
Investment
attention and
•
Company—Memorandum—Chas. A. Day
Co., Inc., 199 Washington Street, Boston 8, Mass.
Burry Biscuit Corporation—Analysis—Richard E.
Kphn
Co., 20 Clinton Street, Newark 2, N. J.
Central
(Chicago, 111.)
40 to 50 times over as a result of certain situa¬
M.
Bulletin—Peter
—
;
Security Traders A*»
Oct. 1, 1951
E.
Manufacturing Co., Inc.
the
>
me
Syracuse 2, N. Y.
Supply
at
sociation Convention opens at Co¬
ronado Hotel.
A. Convention issue
—Ed.) has been returned to
Co., 42 Wall Street, New York 5,'
I.
National
that the $48 I spent for
that ad last year (N. S. T.
Kidder
N.
Exchange goll
dinner
Sept. 30-Oct. 4, 1951 (Coronado
Beach, Calif.)
HARK YE! HARK YE!
—
Discussion
Curb
and
dale, N. Y.
& Co., 1 Wall
Street, New York 5, N. Y.
Steel Industry and the eight
leading companies-—brochureCarl M. Loeb, Rhoades &
C.
New York
tournament
Sunningdale Country Club, Scars-
Index
August issue — Amott, Baker & Co.,
Incorporated, 150 Broadway, New York 7, N. Y.
—
of Stock Exchange
Meeting at the Terrace-
Sept. 25, 1951 (New York City) :
v
Stocks
Philadelphia Field
Philmont Country
Club.
Moser & Co., 44
NSTA
-
Calls—Booklet—Filer, Schmidt & Co.,? 30 Pine Street,
Selected
the
at
Plaza Hotel.
New York 5, N. Y.
Aero
(Philadelphia, Pa.)
Thermo
annual
Realty Bond
Hotel,
Association
years
Puts &
Blackstone
at
j■w-...'.
Firms Fall
dividends regularly with the exception of
1833, 1840 and 1858—National Quotation Bureau,
Inc., 46 Front Street, New York 4, New York.
the
19
Sept. 24-26,1951 (Cincinnati,Ohio)
its stockholders have
and
ago,
Omaha
New York 5, N. Y.
paying
years.
Investment
Frolic at
Omaha.
Day
Disney Productions—Analysis—Butler,
Wall Street,
&
Control—Data—Raymond & Co., 148 State St.,
Boston
yield and market performance over a 12V2-year period.
Of the 35 companies
represented in the National Quotation
Bureau's Over-the-Counter Industrial Stock
Index, 12 trace
their ancestry to years before the Civil War and another nine
have
annual
Country Club. Cocktail party Sep¬
Stocks.
beginnings in 1900
Invest¬
Homestead
Iowa
-
New York 5, N. Y.
to
companies
the
Bankers Annual
—
Corp,—Memorandum—Shaskan
change Place,
U.
—
Over-the-Counter Index—Booklet showing an up-to-date com¬
parison between the listed industrial stocks used in the
had their
of
Sept. 20, 1951 (Omaha, Neb.)
Ruppert and Crowell-
edition—$2.00 per copy
Street, New York 5, N. Y.
.
Group
Association
at
Hotel.
Manual of Sugar Companies—1950-51
—Farr & Co., 120 Wall
as
Bankers
conference
Dayton & Gernon, 105
South La Salle Street, Chicago 3, 111.
30,
Dow-Jones Averages and the 35 over-the-counter industrial
stocks used in the National Quotation Bureau
Averages, both
outing at the New York
Athletic Club
United
In
Stocks—Reprint of talk on insurance stocks in
their eligibility for purchase by savings banks
in the State of
Maine—Geyer & Co., Incorporated, 63 Wall
Street, New York 5, N. Y. Also available is a tabulation of
results
(New York City)
Security Traders Association of
Singer & Co., 74 Trinity Place, New York 6, N. Y.
to
Insurance
Production—Lamborn's
Talon,
Insurance
of
Sept. 7, 1951
buyers.
continental
New York.
operating
stock
at City Hall
p.m.
Union
Lamborn
1950,
options—Thomas, Haab & Botts, 50 Broadway, New York 4,
1951
funl
5:30 to 8
opens
Bowling Center.
in current issue of "Glean¬
Gas—Memorandum—Sills, Fairman & Har¬
ris, 209 South La Salle Street, Chicago 4, 111.
Information Please!"—Brochure explaining about put-and-call
the
limited
Southern
showing monthly highs, lows,, earning!,
capitalizations, volume on virtually every active stock on the
New York Stock and Curb
Exchanges—single copy $10.00;
yearly (6 revised issues) $50.00—special offer of three edi¬
tions of Graphic
Stocks, 1924 through 1935; 1936 through 1947
and up-to-date current
edition, all for $25.00—F. W. Stephen!,
15 William
Street, New York 5, N. Y.
relation
Securities
ings"—Francis I. du Pont & Co., 1 Wall Street, New York 5,
Y. Also available in the same issue are suggested port¬
folios of Reasonably Priced Common Stocks and portfolios
tions of 1,001 charts
complete with dividend records for the
year
Co.—Brief analysis
Valley
(New York City)
Security Traders Association of
New York Fall Bowling Season
N.
Dividend Payers Below Ten—List of ten issues—H. E. Herrrr.an &
Cohen, 14 Wall Street, New York 5, N. Y.
Graphic Stocks^—January issue contains large, clear reproduc¬
full
Field
Co., 10 Post Office Square, Boston 9, Mass.
following literature t
Fails Machine Co.
Airline
Investment
Co., 1 Wall Street,
an
appraisal
Broadway, New York 6, N. Y.
5, N, Y.
of
announced
Solomon
has
with them
that
Exchange,
Jerome
become
as
registered
a
J.
associated
repre¬
sentative.
the
In Wall Street for
Stocks.
PubiTic Service Co.—Analysis—Ira
Pac^° J>rw1UCtv I?CT"?TUl]ftin—Dean
Street, New York
Behind
have
Mr. Solomon
Haupt & Co.,
HAROiD
Witter & Co., 14 Wall
some
30 years,
registered re¬
presentative with Dreyfus & Co.
and had previously been with Ab¬
was
a
bott, Proctor & Paine. From 1947
1950
to
he
associated
was
with
the
Kings County Buick organiza¬
tion.
V''-;,
Southern Production
HAROLD
Southern Union Gas*
Pershing
Commonwealth Gas
Southwest Gas Production
*'ProsVectus
'
■
-
on
request
.
74
Y.
HA
& Co.
Teletype
Private
Cleveland-Denver-Detrolt-Los
wires
NY
1-376;
377;
HIM
FIHISH
378
Angeles-Philadelphla-Pittsburgh-St.
THE
performance
on your
but
also
all
45
FRANCISCO,
of
of not only the National
J.
staff
Burkhard
of
the
New
—
joined
Witter
& Co.,
members
Street,
York
Calif.
has
and
San
Fran¬
cisco Exchanges.
With Blyth & Co.
(Special to The Financial Chronicle)
BOSTON,
Regional Associations.
Dean
Montgomery
part will hit an all time high
~
Louis
JOB
Advertising for the "Chronicle's" N. S. T. A. Convention Supplement
and help the treasury
to
f
i
SAN
the
A star
Security Dealers Association
2-2400.
N. Y.
Robert
On
Trinity Place, New York 6, N. Y.
Telephone:
Joins Dean Witter
(Special to The Financial Chronicle)
SMITH
Broadway,
Members New York Stock Exchange
HELP
Troster, Singer
N.
B.
Co., 120
v
Primary Markets
Members:
&
Ingham,
Blyth
Street.
&
Jr.
MASS.
is
Co.,
—
John R.
with
associated
Inc.,
75
Federal
vpami
Volume 174
Number 5044
.
.
.
The Commercial and Financial Chronicle
(865)
HOW CHRYSLER CORPORATION
DEVELOPED MORE EFFICIENT CAR ENGINES
The
engineering story behind high-compression power plants
that squeeze more power and
Charles Kerlee, official
in World War
performance from fuel
Navy photographer
v
II, brings this behind-the-
scenes
picture story from Chrysler Corpora-
tion
the story
—
brilliant
-
of great engines that offer
performance in the
new
Dodge, DeSoto and Chrysler
<
Plymouth,
cars.
NEW TYPE OF ENGINE, the
180-hp. FirePower. Engineer Philip M.
dome-shaped combustion chamber developed
by Chrysler to squeeze more power from each drop of gasoline.
The FirePower, like every Chrysler Corporation engine, runs
brilliantly on regular fuel. Chrysler high-compression engine
research and development began in 1924, is reflected in today's
powerful Plymouth, Dodge, De Soto and Chrysler cars.
Rothwell points to
NEWEST "GETAWAY" TEST
When this
helps measure engine response.
Plymouth Cranbrook starts forward, the long
tape runs
through
sures
how far the
an
electronic machine which
car moves
in each l/30th of
a
mea¬
second.
Constant testing
leads to superior performance in all
Chrysler-made engines, from the new and sensational
Chrysler 180-hp. FirePower to ;the 97-hp. Plymouth
engine with its high 7.0 to 1 compression ratio. "• 7! V,
CAR WITH 9 GAS TANKS.This
unique test helps engineers
make engines use fuel more efficiently. Each
DeSoto's 9 special tanks feeds gasoline to the
of this
engine
speeds, while electronic machines record
exact
amount
of gas used.
With this information,
Chrysler Corporation engineers can improve carburetors
to give best performance at speeds most people drive.
at
certain
engineers and builds PLYMOUTH, DODGE,
CHRYSLER CORPORATION
Chrysler Marine & Industrial Engines
Oilite Powdered Metal Products
DE SOTO, CHRYSLER CARS & DODGE
Mopar Parts & Accessories
TRUCKS
Airtemp Heating, Cooling, Refrigeration
Cyclevehl
9
10
(866)
The Commercial and Financial Chronicle
■■V
up. It should improve both
quality and price during the-
in
Mr.
Sharpe contends investment problem next year will be
one faced this
year, and investors should act
according to changing conditions. Holds stock prices will go
higher as whole, but investor must exercise proper judgment
in selecting stocks.
Recommends airlines, building supply,
drugs, electrical equipment companies and suppliers of impor¬
afternoon,
the investment
ited to
the
will
scene
be lim¬
with
secure,
problem of "Selecting
way
suggests
come-minded
tih
problem
stock will
e
next year
be
than
faced
is
One
I
of
t
common
down-swings
of the most potent reasons
give
for
Bristol
ait<e
the
at
it
full-time
The
basic rules for
can
keep
busy, supplying either civilian
markets,,'
least.
at
for
selecting
se¬
for
change
within
space
of
material and processing costs;
to which is added, the going rate
the
cial
or
eco-
Ernest
'
'
'
Sharpe
'
k
have
the
than
more
;«
profit
un-
certainties, we can expect still to
convince
of
investor
the
two fundamental truths
nored by
often ig¬
the obstinate. The first is
Ihe
necessity
for
adjusting ! to
change. The second is the wisdom
; of knowing what he can and canjnot
control
back
Most
up.
have
a
floor
the
among
in¬
many
the
wages
under
strength
Political
world's
causes
raw
of
appear
them, but
organized
in
unrest
all attractive at
are
to
no
resource
oil,
timber
companies
metals, coal
—
these are things
beyond the control of the individ¬
ual investor. The realistic investor
.will not waste his time puzzling
ked
why business
conditions
are
not
or
mar¬
to
his
liking.
many
materials at the
incites
both
labor.
of
the
same
hold
are
gas,
still very
Our
success
next
the
upon
answers
to
in
acting
expenditures,
keep
material
to
Opportunities
In
seeking
second
tries
three
good
investors?"
needn't
we
the
"Which
entire
Third,
should
from
we
indus¬
industries,
to
try
to
From
field.
six
should
we
of
our
questions. First,
with
ease.
choose
"Which
these
select?"
to
The six fields I would
comb are the airlines,
building supply, drugs, electrical
resource
income
Airlines are now in the best
particular
year they have ever had. Next
industries
year's traffic should be even larg¬
;
■
er,
Stock Averages Will Go Higher
profits
will
dividends,
be
excellent
while
and
conservative,
could be enough better to start
My personal opinion is that the
another boom in the
group. From
market
averages
can
and a
long-range view, this is still one
will go higher in 1952. One rea¬
of the most
promising industries
son I think so is that
they are not for
growth".
American, Eastern
particularly high now, not con¬
and United should all achieve in¬
sidering the present dollar's lower
vestment status
someday, and I
purchasing
stock
power,
larger
and
the
would
.
of
•
of 21
less
years
we
ago are not valid
the
Coal
more
Investors
who
want
than action will buy
this last group,
in
1
are
the type of
get
to live with
stocks
want
you
through good times
or
bad.
NEW BRANCHES
NEW
Bankers
and
OFFICERS. ETC.
CAPITALIZATIONS
un¬
make adequate allowance
have
home
been
.
"...
worrying
construction
supplies
about
the
Boston, N. H., Aug. 30,
1951.
Celotex is
a
stock
on
the
has
dation
resigned
as
o
chsae
President and has been elected
H
n o
r a
r y
Chairman
/.
unities. Earn¬
operating units
industry have' beeh broad¬
ened considerably in the past ten
years by an unprecedented expan¬
in this
of
sion to fill
the country's growing
requirements; Current divi¬
dend rates,-conservative in most
cases, appear reasonably certain
to
continue
and
may
increase.
Consumers Power/Columbus &
Southern Ohio and Pacific Light¬
ing are all good-grade commons
that will return an average of
power
about 6%. I would hold any or all
of them without worrying.
of
d
prospects for each group of selec¬
tions.
Rules of Investment
stocks,
New
preferably
York
assures
Stock
that
those
on
Exchange.
den sale is called for.
Next,
for
with
long
do
without.
companies
For
Concerned
raising the standard of living
the unknowns that
as
they overlook,
of
H.
Marine
of
the
National
Chau-
All
personnel,
staff, officers, and members
of the
respective boards of directors will
continue to
the consolidated
serve
bank.
Deposits
banks
will
of
the
aggregate
combined
than
more
$30,000,000 and capital funds
approximate
more
will
than $3,000,000.
Marine Midland
added, presently owns substan¬
tially all of the capital stock in
and he will continue
tion.
,
H. C.
Flanigan has been elected
President
Executive
Chief
and
Corporation, it is
each of 13 Marine Midland
banks,
all of which are located in New
York
State.
Officer of the Manfacturers Trust
succeed
Flanigan
Von
Mr.
joined
Mr.
Elm.
the
bank
as
in
Director
and
1931 and has since filled the posi¬
Vice-Chairman
both
of
Chairman
of
Board
the
of
and
Di¬
rectors.
He graduated from Cor?
University as a Civil En¬
gineer in 1912 and took post¬
graduate work in Germany for
nell
the
following two years. He is a
Trustee of Cornell University and
a member of the Saratoga Springs
Commission. He also serves on the
board of various corporations.
The
Riedel,
dent
of
Auditor
and
Midland
:
Trust
of
the
Company
announced
Marine
of New
Sept.
5
was
by
Blaine, President,
meeting of the Board
graduate of Cor¬
University ^ and,/ Harvard
James
following
of
on
G.
a
Directors.-A
nell-
University,
School
of Business
Administration, * Mr. Riedel was
formerly
bank examiner
a
with
the Federal Reserve Bank of New
York and more
Cashier
recently Assistant
First
National
the
of
Bank of Boston.
■'
1
Announcement
Midland
formal
offer
the
New
York
and
public
as
advertising
sentative. A veteran
re¬
repre¬
of 25
years'
and
newspaper
publishing ex¬
perience, Mr. Hassell joined the
"Journal-American"
in
1942.
He
previously was with the "HeraldStatesman," Yonkers, N. Y., and
other
Westchester and
New
Jer¬
sey newspapers. In
1938 he
official
correspondent
for
Macmillan
Melville
was
the
to
is
National
b
.
John
made
by
made
to
a
ac¬
Chautauqua
County Bank of Jamestown, N. Y.
subject to approval of supervisory
tf
-
<
%
Harding Roberts, assistant
Vice-President
of' -the
South
Brooklyn Savings Bank of Brook¬
lyn, N. Y. died on Aug. 26. He
was 49 years of
age, and had been
associated with the bank since he
16 years old. In
indicating
Mr. Roberts' activities the
Brook¬
was
lyn
"Eagle"
part:
/ v
served
of
Aug. 28
■" ."
/■
"Since
said
....
1935,
as
Mr.
'?
Roberts
member
a
in
.
had
of
the
Bankers' Forum Committee of the
New
State
Corporation of
be
Expedition.
was
*
*
*
Marine
quire
of
L.
Robert
Vice-Presi¬
Assistant
as
Bank
lations
Bay-Green¬
election
'
Donald
R.
Hassell,
former
"Journal-American" financial
writer, has joined The Hanover
land
Sli
York
fine
example,
a
active in the affairs of the institu¬
This
can
office
be »~a'v+a:ned.
Ex¬
His office
Committee.
the /VC-//V.'
follow your
investments closely and will have
a
ready market for them if sud-;
you
as
of the
member
tion
The first rule, a safeguard, is to
choose only from among . listed
Charles
branch offices of both banks will
Henry C. Von Elm
will continue
buy next year. To help
those of you who will want to do
your own selecting, here are a few
suggestions, proven rules of in¬
vestment you might call them —
rules by the way that many of us
in the advisory field
occasionally
try to side-step, not always with
-
by
President
pres¬
Vice-President
happy results.
issued
lauqua County Bank and that the
He
Some of you will not be conteftt
to let others choose for you "the
you
the
of the Bank,
to
Proven
of
before will be at the Main Office
time
limitations, I
have touched only briefly on the
75%
Corporation, and John
Hamilton, President of Na¬
Chautauqua County Bank
ent
tary,"' Vice'/A'v/'.V
President, Chairman of the Ex¬
ecutive
Committee, Vice-Chairr ;
man of the Board, Chairman, and
ecutive
least
in the matter. It is stated
that op¬
erations of the consolidated bank
will be conducted from the
As¬
and
was
D.
Secre¬
Director
at
tional
'ssively
President.
has
M.dland
all
through
of
ment
cities,
sistant
Pur-
stock
of
Diefendorf,
a''toe i n g
succe
capital
National
Chautauqua
County Bank. A joint announce¬
.Trust
p a
v
Trust
by
holders
Company for
Vz
years
c a
the
stock
48
a
Union
Jamestown.
approved by the Board of
Directors of Marine Midland Cor¬
poration subject to acceptance
/
Manufac¬
in
the
of
of
been
has served the
turers
with
Company
executive,
boom
common
of New York
pany,
and
coming are a good bet for the future.
to an end. I suspect that
long after
tween 1930 and the
Try to pick the leaders of each
present.
it does, a lot of them will
still be group. You will miss the
"sleep¬
Not only is the stock market
earning nearly as well as they ers"
by following this rule but
still at a reasonable
level, it also are now. There are some 40 mil¬ also
you'll avoid a lot of head¬
derives sturdy support from sev¬
lion dwelling units in the
U. S. aches and losses. There are thous¬
eral
million income-minded in¬ and
many of them will be
ands of experts constantly
needing
turning
vestors who in other
years would repair
or
renovation during the over the
"likely-looking rocks"
probably
have
been
holding next few years. Paint stocks such
among securities, seeking the un¬
bonds. But nOw
they find that as Sherwin-Williams or Devoe & usual.
Very few are successful at
Raynolds offer good income and it. in fact inany of them are so en¬
*An
address by
Mr. Sharpe at
the
Sabson
some
Summer
Business
appreciation
possibilities. grossed with their search among
Conferences,
New
for the very wide differences be¬
C. Von Elm, President
Manufacturers Trust Com¬
income
ings bases of most
cannot
building
Henry
,
of the
heavily
select
underlying
Comparisons
that
ican.
been made lately with the
highs
Makers
shares.
Creek
over
another limitation, < con¬
yourself to the "necessity"
from among these
stocks, those of companies supply¬
the
three, with my first choice Amer- ing products or services the
public
have
much
assets
Island
and
•
more
selecting securi¬ be able to select as many individ¬
will depend ual securities as can be handled stocks
equipment, the natural
group
and, mainly for
"Which industries offer purposes, the utilities.
opportunities to the inves¬
stocks
our
opportunities
Second,
good
Picher
Because
to
answer
question,
offer
cover
an
year
correctness
"Will stock market prices
go high¬
er?" I think they will and in a
moment
I'll
give some reasons.
tor?"
more
as
should be favored
time it
rearmament
attractive
ties for
any
blindly. Remember, those
hard-earned dollars you will
be investing in 1952. Be sure
you
good to : Board
of
hedges against further in¬ Directors. Mr.
flation, and for income. Common V o n ; E 1 m
and
large
producing
areas speculative shares but there are
shortages of badly needed many others that may be held.
managements
reasons
sources
but don't follow
your
manager,
REVISED
scratched.
be carried
fluences affecting his investments.
prices at presentfhigh level§. So,
During these last 20 years some since
taxes, wages and raw mate¬
stiff-backed Boston trustees have
rial costs (which together prob¬
gone on conscientiously protecting
ably make up 90% of most selling
dollars for their client, while the
prices) are relatively rigid, I see
purchasing power of those dollars little
hope for lower prices. In¬
dropped from 100c to 45c. And
stead, in line with growing world
there are still more investors than
unrest and the expansion of our
you would believe who consistent¬
defense effort, I expect we will
ly'"buck the market" or refuse to
again see a higher general price
recognize good news now because
level next
year.
I assume the
they expect a depression some stock
market average will be no
day. The purchasing power of the
exception.
dollar, the direction of the rhar-f
ket, the performance of corporate
Industries Offering Investment
out
you can,
different
many
you/ can,
of it
time.
a
industiy.
News About Banks
TV
facing the threat of global war.
ceilings above, due to the weak¬
are
certainly times that ness of our/
Administration and stocks like Texas Co., Gulf, Eagle
should
investment
as
in
losing
CONSOLIDATIONS
sets,
market is
TV
as
afford
within the
be
of
Lately, some profit
current prices. I ./would
choose
margins have been squeezed hard
among them in the order named.
but such cut-backs can
These
'
little
England's
Natural
only so far. Heavier taxes are now
added to all
coming along to push the prices producing
the usual business and
>
still
that
New
as
weather. Next year,
be
plain
15%
Noma Electric
the profit rate.
In which investors must exist is as
i
than
can
to
seem
not
further
of
climate
changeable
it's
less
or
much
each'
are
re¬
General Electric, R. C. A., Master
profit. These prices are gener¬
Electric and the more speculative
ally flexible only4 in the area of
a year
and
xiomic
but
time,
rise
that
Last, get ail the advice
U
from
Another proven rule for contin¬
the homes in the U. S. have radios
as
composite of
a
raw
but the finan¬
f
selling prices,
all know, are
you
not
Most
structure.
to
several
<
A
great deal
equipment will be
electronic
ground
if $5000,
those
that
or
portfolio
your
sell
to
price
great deal
a
out"
and
likely
$25,000 by 20
—
than 20 stocks at
very
•
curities should
"weed
year
dif¬
many
—
should not try to follow
you
electrical equipment
should
by ten
of money and
present
as
fields
Unless you have
or so.
a
The larger
years
business
divide
prices.
manufacturers
4 stocks in
or
ferent
still quite attrac¬
long-haul. Squibb,
preferences
my
3
over
investors
Myers and Sterling Drugs
military
*
,
an¬
expecting higher
quired by the Armed Forces and
prices in the stock market is the
for
the
war
production
effort.
continuing upward pressure being
Also, when we recall that 96% of
exerted
on
our
general
price
i t
be.
super¬
are
many
tive
panicked by the in¬
short-term
upsurge.
this
doubt,
will
they
can
that may occur during the general
Without
year.
,
evitable
different
a
one
a
will
holders
be
income
is
correct your mis-';
dur¬
.
have been pushed up by
vision, the 5% return they require.
I do not think many of these in¬
Securities in 1952." Stating it that
own
even if it does have a
good blood
and promotion of valuable
line.
'-////v.'.,;/,/"////////:
products are giving the in¬
Diversify, of course, both among
dustry more vitality and diver¬
sification each year. Market prices industries and securities. If you
of
the
leaders
in
this ' group have $1000 to invest, spread it
but
minimum of
a
can
new
and
appraisal of only in the stock market
our
in the market
success
'///- recognize and
covery
utilities, and advocates purchase of
listed stocks, particularly of companies
supplying necessities.
This
believe/obvious vaL; uing
-
different from
materials
to
sitting in plain sight.
ues
1* When
Thursday, September 6, 1951
.
is the main con¬ takes as soon a$
possible. Don't
sideration, insist on at least 13 freeze
your
losses
by
wishful;
ing 1952 for the generous return-' years of ^ uninterrupted earnings thinking about what might have
and dividends. Of course you will been or
and longer range price gains,
v
could be. Sell your mis->
want to see evidence of
growth in takes quickly; keep your portfolio
/. Drugs,
both ethical and propri¬
*
/
etary, seem
to
offer as much operations and of the maintenance alive and working.
Even if you're fortunate
promise as any of the investment (at least) of an adequate profit
enough
margin. Don't buy a dying horse not to make
opportunities now available. Dis¬
glaring mistakes,
Investment Analyst, Babson Reports, Inc.
raw
is
common
other that investors
By ERNEST SHARPE*
tant
Flintkote
'fifties.
refuse
or
way
Selecting Investments in 1952
.
York
Chapter,
Chairman
of
A.I.B.,
the
New
and
York
Savings Bank Committee
Administrative Procedure. He
also
member
a
Banks
that
Long
of
Committee
formation.
he
It
was
Island
was
the
on
Savings
Public
further
active
also
Historical
Continued
on
on
was
In¬
stated
in
the
Society
page
It
Volume 174
Number 5044
.
.
.
867)
The Commercial and Financial Chronicle
HANNA IRON ORE
Produces
COMPANY, Cleveland, Ohio.
holdings in Great
from extensive
ore
ing in the development of new
iron
Iron
Iron
ore
is the fundamental
supply of the right grades
Hanna Iron Ore
extensive iron
and
ingredient in the composition of
of
ore
the furnaces of
steel. A continuing
production.
producing division of National Steel. It owns
properties and operates large mines in Minnesota, Wisconsin
steel products
types
West
steel-making material in future
field
National Steel is participating in the development of the great new iron ore
in Labrador-Quebec which is estimated to contain more than 400 million
tons
of
steel
Hanna Iron Ore
which comprise
make National Steel one of
fastest growing producers of steel.
Company is one
and
a
STEEL
of the principal subsidiaries
.•.
.
_
NATIONAL STEEL
GRANT BUILDING
CORPORATION
products.
Mills at Weirton,
AMERICA
BY
SERVING AMERICAN
Unit of Great Lakes
DIVISION.
turer
of
world-famed
Quonset
buildings and
Stran-Steel nailable framing.
HANNA
NATIONAL
CORPORATION;
FURNACE
MINES
Blast
in Buffalo, New York.
CORPORATION.
Coal mines
properties in Pennsylvania, West Vir¬
ginia and Kentucky. Supplies high grade metal¬
and
lurgical coal for National's
tremendous needs.
COMPANY, Houston,
warehouse, built by
NATIONAL STEEL PRODUCTS
Texas.
Recently erected
Division,
208,425 square
distribution of steel
covers
feet. Provides facilities for
INDUSTRY
World's
Corporation. Plants at Ecorse, Michigan,
Indiana. Exclusive manufac¬
products throughout Southwest.
SERVING
industry.
.
the Stran-Steel
PITTSBURGH, PA.
major supplier of all
COMPANY.
furnace division located
completely integrated operations
America's largest
is
and Terre Iiaute,
THE
high-grade ore.
National's
Detroit,
largest independent manufacturer of tin plate.
Producer of a wide range of other important
Steel
years,
...
Virginia, and Steubenville, Ohio.
STRAN-STEEL
abundant supply of this basic
CORPORATION,
of steel for the automotive
WEIRTON
supply of this vital raw material flows into
National Steel.
And, to insure an
STEEL
r
Michigan. The only integrated steel mill in the
Detroit area. Produces a wide range of carbon
is essential to large-volume steel
Michigan. From them, a steady
4
LAKES
GREAT
Company is the ore
ore
fields.
ore
ore—basic ingredient of steel—comes
from National's own mines
participat¬
Labrador-Quebec
region. National Steel is also
Lakes
n
12
(868)
The Commercial and Financial Chronicle
.
Thursday, September 6, 1951
.
.
tmunities in 55
Pennsylvania Brevities
Pennsylvania Power &
Light Co.
ent
Files Additional Common Stock
ALLENTOWN
The money is a
the ..annual
increases and
classifications
have
reflected
chassis
local
on
of
localities
automobile
an
compressed
a
In New Location
mass,
acetylene torches. At the
pany's
in
a
the
reduces
into
eliminating the former lengthy
process of dismemberment by use
The law provides
such funds be distributed
that
instantly
•
collection
liquor licenses.
greater rate of growth than that
Oakes, President of Pennsylvania
Power & Light Co., stated last
coun-
' l;;' C, ,
100% ret'tirn of
•
,
commercial, residential and farm
Charles E.
—
substantial
and
Pennsylvania
ties.
Bethlehem
shears trim the
where the licensees
com¬
plant
giant
block of scrap to
open-hearth dimensions.
situated, none being retained
of the country as a whole.
H
To date, Bethlehem has pur¬
by the State.
v
v
company's schedule V/<
«
if -y.
chased
it
..y-r.
1,000 of;a local dealer's
of capital expenditures from 1951
Penna. Leads in "Quickies"
5,000-car inventory and intends to
Pleasant Pickle '<•
through 1955, earlier projected as
acquire the remainder. A single
Up to July 16 the Defense Pro¬ :
PITTSBURGH
H.J.
costing $82 million, would be re¬
body
produces
an
; Heinz, automobile
duction Administration had grant¬
vised upward to about $143 mil¬
2nd, President of H. J. Heinz Co., average of one ton of high-grade
ed a larger number of fast amor¬
''
'
4/j!
11
Ylion
in order to
meet
told
annual
require¬
meeting that first steel scrap.
.
•
,<r.
tization certificates, and in greater
:
ments of the greatly accelerated
o-.i- <;'*■■■
'v'
fiscal quarter' sales of company
dollar
volume, to Pennsylvania
defense program and growing dewere $46,866,594,
;
Gibbs & Hill have received a
over; 6% above
industries than to any other state
mand for electricity.
From 1945
the 1950 period and the highest contract from U. S. Steel Co. for
Alfred Hecht
i
in the Union.
through 1950 approximately $130
for any quarter in the company's the design,
engineering and con¬
The
Keystone
State
led
the
million was spent in additions to
Hecht & Co., members of the
history. ;:i."y;':v"VV-',;-:7''
'V. struction of a 60,000 kw. electric
i
'''
if
country with 248 certificates rep¬
0
*
New York Stock Exchange, an¬
plant.
generating
station
to
supply
resenting a total of $1,068,000,000.
It is contemplated that expan¬
Steel's Fairless Works at Morris- nounced that as of Sept. 4th they
Supermarkets Here to Stay
Jousting for second place were
will make their office with W. E.
sion of facilities will cost approxi¬
PHILADELPHIA
Samuel ville, Pa.
Ohio with 246 certificates total¬
if
O
Hi
Hutton & Co., 14 Wall Street, New
mately $12,700,000 for the balance
Friedland,
Board
Chairman
of
ing $527,000,000, and Texas, whose
York
City.
of this year.
Telephone
REctor
Sun Oil Spends
The company plans
Food Fair Stores, told stockhold¬
are
.
week that the
,
;
?
—
jl'
"*
«
4
;'
'
r '
■'
"
i
i'1
if
*
.
■
■
,
-
-
—
"
•,
,
,
—
fewer
to raise about
the
$13,500,000 through
issuance of 542,484 additional
shares
common
offered
to
which
jpresent
will
for
each
one
held, effec¬
seven
tive Sept. 18 and expiring
tober 3.
The registration
ment
Drexel
names
First
Boston
Corp.
of the
agers
new
on
state¬
Co.
&
joint
as
Oc¬
underwriting
and
man¬
group.
Price will be filed by amendment.
Shares not taken by stockhold¬
will be offered to employees
installment
an
with
one
purchase
plan
limit of 150 shares to any
a
sales
Oakes
of
said
securities
four years would
order to raise
further
the
over
next
be necessary in
approximately $88,-
500,000 of the $143 million sched¬
uled
be
to
ditures
spent.
Capital
nation
the
10-year
War
II
ized
and
the
will
close
the
109
to
were
service
The
effect
certificates
of
is
to charge off
the
use
income
relief
tax
increased
is considered
a
*
*
double
the
in the
com¬
Eastern
consist-
^
at
a
union
year ago
refused
a
on
—
Bald-
The
"continuing supply" of the tur¬
bine end of the Wright J-65 jet
engines. The amount of the con¬
tract
Oct. 3. The
effect
Farquhar
when
to
a
attempts
reorganization
a
Proceeds of the sale
The
the
propulsion
Navy's
new
will
HERBERT H. BLIZZARD & CO.
Old-Timer
CHESTNUT STREET
If
the
LOcust 7-6619
cut
of
the
holders
the
calls
for.
present
The
& Power Co.
a
Cutting
Carpet Co., Inc.,
reduction
record
to
Property Tax
Division's
divi¬
rate at this
report
investors interested in
S. Leather
BOENNING & CO.
Philadelphia 3, Pa.
Because
in
the
process
and
.
,
'
'■
selling its
retiring from
and
35%
to
Steel
Expands
Harrisburg's sales
profits.
The transaction involves the
19,500 shares of Harrisburg
the
leather business. Upon completion
of
the
several
transactions
mon
that
ejected
Edmund
(Special
to The
for all of Boiardi stock.
DETROIT,
Cochrane
itself
six
oil production.
Lippincott Units
Talon Inc. Preferred
timated the value
liquidated
per
Dredging Common
Analysts have
share
indicating
at
of
assets
the
on
common
market
a
to
approximately
es¬
are
—
Ralph* H.
George E. Strobel
with
now
Waddell
*
Samuel K. Phifli
Stock
Exchange
Bldg., Philadelphia
N. Y. Phone
,
^
COrtlandt 7-6814
*
Those Thirsty Pennsylvanians
Last
week
the
State
General's Department
rate
;
Joins
Reed,
brokers,
Mr.
&
as
with
Sons,
a
customers'
Mullen
Smash
—
area
with
a
obtained
man.
an
GRAND
employed by McDonnell Aircraft
Corp. in 1943, he attended the
Advanced
Management Training
Course
.given
Graduate
the
at
School
ministration.
of
Harvard
Business Ad¬
■;
USN
Construction
Subic
Bay,
Battalion
The
Philippine
Islands, and as Assistant Disburs¬
ing Officer at the Philippine Sea
Frontier in Manila. At the present
time Lt.
(jg) Mullen is Officer
in Charge of VSCU 9-10, a Naval
Reserve Volunteer Unit
of
comprised
living in and
Supply Officers
the
St.. Louis
area
The
is
the
first
Lambert Field.
For the past
five
years
Mr. Mul¬
len has been with Loan Guaranty
Division of the Veterans Adminis¬
tration
as
the Assistant Chief of
of
He has also been
the
faculty of
a
member
the School
RAPIDS, Mich.—Ger¬
G. Posthumus
is with King &
University, where he has lectured
evening
classes
in
the
Depart¬
ments of Economics and
National
Finance.
Semi-annual Appraisals
Equipment Trust Certificates
City of Philadelphia Bonds
as
of June 30, 1951
Now available for distribution
Write for your copy
STROUD & COMPANY
Incorporated
its
country, according to
overhead
release
of
4,000-pound chunk of armorplate
of
Finance, St. Louis
Hit
of
and
meeting at the Naval Air Station,
PHILADELPHIA 9
device
at
Luzon,
Commerce and
designed to convert junked
kind in the
A.B.
in Economics from
St.
Louis University in 1938.
While
Bethlehem
two-ton "flat-
G.
A.
investment
degree
tion.
King & Co.
single drop.
a
com¬
associated
was
to The Financial Chronicle)
automobile bodies into scrap at a
liquor license
999
len
II, Mr. Mul¬
Hi
Steel Co. has invaded the
Lehigh
Valley
report.
to
'■/.
Hi
Steel's
ALLENTOWN
the payment of
$2,603,200 from the
fund
'■
Before World War
production.'
*
Bethlehem
Auditor
announced
of
-,/•
tener"
$
registered representa¬
a
the Loan Service and Claims Sec¬
(Special
ald
with
cur¬
of
about $8 per share for the
mineral
developments and prospects.
&
Inc.
that
stock,
appraisal
production
and
rent
be
$15
months'
incoming orders exceed the
and
as
an¬
Mullen
associated
tive.
Chronicle)
Mich.
and
/
A. M. Greenfield 5s 1954
gas
Byrne
Vice-President
Financial
Mr. Simpson said that Harris¬
burg's present backlog represents
to natural
a
C.
Two With Wad dell & Reed
com¬
volved, U. S. Leather will devote
entirely
them
Exchange,
Lawrence M.
become
re¬
Cambridge Bldg. 3s 1953
in¬
oral
Byrne and Phelps. Inc., 70 Pine
Street, New York City, have an¬
nounced
has
503
the
During World War II, Lt. (jg)
;':v^ Mullen served as Supply and Dis¬
bursing Officer for the Eleventh
■
.
tirement of $810,000 obligations of
Boiardi
and
the
exchange
of
ten
and
the proposed changes
heard
for
several
Company, Michigan
Bank Building.
about
its
of
be
H« ' ' /V ❖
the
subsidiary, Kata Oil & Gas Co., in
drilling
several
producing
gas
wells in the Leidy
Dome, Clinton
County, Pa., U. S. Leather Co. is
tanneries
Hi
an
of 50,000 tons of steel bars, angles
and shapes, and is expected to add
of
on
not
J. T. Simpson, President of Har¬
risburg Steel Corp., announces the
acquisition of ..the Boiardi Steel
Corp. of Milton, Pa. The latter
company has an annual capacity
regular
success
mandatory
Edmund G. Byrne V.
Of Byrne and Phelps
21.
Goes Underground
of
than
argument
10%
announces a
carpets effective Aug.
Harrisburg
; i
appreciation.
Artloom
-
in
[ ,V;.f
frequency.
"SPECIAL SITUATIONS"
375
recom¬
advisory
are
Rug
a
manufacturers, reduced prices
average of 10% last week.
•
time, either in amount
or
U.
annual
rather
James Lees & Sons, also carpet
it inadvisable
a
mendations, however,
Stock
that
nounce
around
prices for wool and
effective at once!
follows a previous cut of
cotton
interesting reading for
Pennsylvania
plan
of their firm.
13% to 20% effective July 31 and
a reduction in the price of some
Sept. 7, Curtis
attempt to establish
*
carpets,
This
stock, payable Oct. 1 to
of
*
-':.v
■
PHILADELPHIA
Resumes
uncertainties make
Common Stock
Free of Penna, Personal
Teletype
dissolution
,
Watch Co. of Lancas¬
*
Publishing Co. resumes common
payments after a lapse of 18 years.
Company officials said that rising
costs, increasing taxes and other
Pennsylvania Water
Phila.-Balt.
stockholders
Philadelphia Company will re¬
ceive slightly greater distributions
than
investment bankers,
Street, members of
York
New
are
preferred
LOUIS, Mo.—G. H. Walker
Co.,
Locust
Edwards
;
Utility Division
has been
v-Vi;
dend of 20 cents per share on its
common
Members
;
H:
recommendations
weeks.
Co,
operated as a wholly
subsidiary. The Connecti¬
company manufactures watch
failed.
With the declaration of
*
Watch
Cases.
-
to
to net stockholders slightly in ex¬
cess of $2 per share.
♦
be
blend
American
machinery for
atomic-powered
*
ST.
&
Jr.
'..'i
*
will
owned
expected
are
*
Hamilton
its demands
subsequent
disclosed.
ter, Pa,, has purchased all the
outstanding stock of Ralph W.
Biggs Co., Stamford, Conn., which
striking
basis.
not
Hamilton
accept manage¬
meet
was
./;'yI-
customers' lists,
' "to-the-extent-able"
Several
Riverside Metal
Leeds &
refinery facilities
Marcus Hook, Pa.
accepted,
Baldwin to Make Jets
win-Lima-Hamilton Corp. has re¬
ceived a contract to manufacture
sale will include real estate, equip¬
ment, fixtures,»machinery, tools,
dies, jigs, repair parts, inventory,
ment's offer to
Bearings Co. of America
PH
for expansion of
SEC's Public
*
PHILADELPHIA
The company ceased production
American Pulley
income and
last
of
*
plant, Hatboro, Pa.,
on
for
year
ended will approach, if
exceed, $250,000,000, compared
.
The assets of Roberts & Mander
Leland Electric
makes
fiscal
'
advertising matter and good will.
1950
.
G. H. Walker & Co.
G.
burgh.
the
in
Lawrence Mullen With
the
year
Sun's postwar
had topped $200 million.
About $40 million is earmarked
$205,643,640 reported the
previous period.
Corp., a former manufacturer of
"Quality" gas ranges, will be sold
at public auction at the company's
inquiries in
Company's
the
from
of
with the
Roberts & Mander Auction
about
Thi*
Robert
Through
recently
1
production.
to
submarine will be built by Westinghouse Electric Corp. of Pitts¬
volume
to
spur
World
General Manifold & Printing i-
1421
sales
*
afforded
refinery
not
thus
million
in
area
A. B.
end
that
by defense work over
five-year period instead of the
usual 20 to 25 years.
The sub¬
stantial
and next
President.
to
grantees
capital expenditures
work in progress,
^
according
Dunlop,
supermarket type of store tended
offset the pinch.
He believes
amortization
enable
to
year
program
that
companies.
of
Pennsylvania has shown
We solicit
opment,
for
.
spent
a
than
more
Electric power
y
Pennsylvania
be
construction,
ap¬
Acknowledging the
effect
of
price curbs
on. profit
margins,
George Friedland, President, said
issuance of fast write-offs. Eleven
of
will
modernization and oil field devel¬
stores.
the
on
$280
exceed
company's plant facilities of 1945.
pany's
60-day moratorium
a
new
i.
Approxi¬
—
$72,000,000
by Sun Oil Co. this
for
com¬
has purchased or leased
proximately
30
new
sites
applications were
just
before
Defense
mately
Mobilizer Charles Wilson author¬
period
will
The
pany
whose
processed
restrictions.
2-3300.
PHILADELPHIA
the
barring possible gov¬
year,
ernment
expen¬
over
following
vious
in
months than in any pre¬
12
next
week the DPA announced
supermarkets
new
more
a
that
that company intends to build
ers
amor¬
necessitated
person.
Mr.
$801,000,00 in
the granting of 109 additional cer¬
tificates to firms throughout the
ers
on
(126) certificates neverthe¬
covered
This
stockholders,
'via rights, in the ratio of
share
be
less
tizations.
ALLENTOWN
•
PITTSBURGH
NEW
YORK
SCRANTON
•
LANCASTER
Volume 174
Number 5044
,
.
13
(869)
Chronicle
The Commercial and Financial
.
empts or taxes lightly those per¬
Problems of Federal Taxation
c
recognizes
Member, Council of Economic Advisers,
Executive Office of the President
rates
the
on
But the
(2) higher taxes will curb
(3) government expenditures can be cut only
Administration's tax program will not damage
and denies it will lead to inequitable distribution
The
Federal
fiscal
produced about
net
tax
*4^00,000£» of
revenue
largest
A
&
u
5
;
dollar
if
for
year
nation's
history.
that
The
taxes
same
nomic
will
as
dates
rapid
The
e
pected
nue
eco-
In
hixed
favor of the
short
istration
Roy Blough
of the amounts
economy.
have
taxes
*'•"'<
s
view
in
that the Admin-
$10 billion tax program
increasing size, and ex-
it.
tribute
penditures will continue to mount of the
rapidly.
legislation
tax
inflation-
amount has
smaller
tives and 1S now-being
considered
Tax
with
wun
have
arguments
who
take
rails
calls
for
tor
the
nf
anything the
corporate income of a
businessman to be split among his
reducing
thereby
children,
the
The tax exemp-
rates of taxation.
municipal securities is an old privjwe
same.
It
*
the
there
was
not
was
unbear-
an
State
Some
second
of
quarter
1952
in
impor-
Legislatures
considering
been
an
have
nronosal
a
call-
amendment to the Fed-
erai Constitution that would limit
taxes
to
25%
of
incomes.
powerful lobby has been vigorously
pushing
this
proposal,
Adoption of such an amendment
would have highly unfortunate effects. It would tie the hands of
the Federal Government, which
alone can carry out many vital
functions. Chronic Federal deficits would be made virtually inA
evitable
•,
...
j
the
just
is- growing
that
tance.
spending.
pcomparea
tne
witn
irii'periods of heavy
The Federal Govern-
.
that
pvideupp that the
a„:
be
b!
damaeed
ppouomv
finallv
dLs!
destroying
oy
.
wartlme 45%- I have seen no per- sl0ns
a^agree that
destroying
consumer
consumer
It would add
to the fiscal difficulties of State
purchasing power.
wil1 be damaged by finally dis- 10 lIje nscai aiiiicumt
tributing the cost of this load and local governments,
$10^00,000 000 is ^^oug^axa^n"'^^ oflheir most lucrative'taxsc^!
deficit
the cost
small.
too
Still another
services m^nt
would be forced to rely
,0^ °?oa! a,n?. sJ;rvlce ho.viiv nn Pvri«P o*ri saip*
by Federal, State, and local gov- Jj£avlly on excise and sales taxes.
ernments are exnected to amount Thls would result in a grossly unernmenis are expected to amount
distribution It might well
to about 25% of Sross national lair lax aistriDUtion. it mignt wen
p od
t
comnared
with
the pave the way for future depres-
outside, the Government, as well
is
by taxeS| howeveri
cover
S/l^^f^Sfthe
thtgef!sc7iayvear. ""iKi
passage of the program, however,
the outlook is for a substantia
woidd present
would be largely diverted to the
a'cleaMnfiaUona^ federal Government.
ceili?g 7 ?xatr
ls>>kely to be ^ far below the
ClarenceIAal With
T
,
A
,
,
•„
.
nrn
spending,
funds
stream
it
from
must
taxation,
through
with¬
income
the
in-
or
: ;
being put tQ0 high,
Registered
a
V
Representa-
Distribution of Tax
Fourth,
Burden
some persons argue
that
;
tive.
in
I
"
are
supported by
Urogram
■i
nressures are
aJH-1 LI,
ho
defuse
an^
den. Considerirtg the different ob-
In view of the
tho
rioht
'
Second
persons argue
should
be
rather than taxes raised
'
cutting
possible
that
reduced
I
am
for
costs, it i, „ot safe either to ce.nt
x
to wait tor
or
to
solve
if
the
problem.
substantial
reductions
the
expenditure cuts
are
revenue
Moreover,
expenditure,
actually
realized,
surplus resulting from
the tax increases will be very de-
stable.
Also,
if/tax
decreases
tion
Excerpts
from address by Dr. Blough
if'Vi'TrLlleltS Smm
in the Presidents program
would be
more
logical if they pro-
posed alternative methods rather
produced
year
came
come tax.
tax.
of the
1951.
tax
revenue
during the past fiscal
from the personal in¬
It is in many ways our
It
is
measured
by net
income, which is the best practical
Sctr,i cfLn^rSison, wd'Tul test of ability to
21,
? ,b a d a
varied expen"
Clarence
J.
Aal
"'ft P°',1£y
0f perfecting and correlating the
operation of all its branches, Mr.
Aal has spent the past month in
*bao objecting to the size of the the
"'aS'42%
best
*
S
would draw the ence in most
of the increased revenue every p h a s e
the persons who have the of *he securiof the income and d0 the fies business
of the spendinS- However, and more reis r00m for sincere differ" cently was a
jOSjaUaKR gSK A."*
whetming bu,lt of .xpenditure, is
■
on
sult
far devised.
The
pay taxes
income
main
office
in
New
York
getting acquainted with Bache &
Co.'s many facilities and services.
that
is
with
deal
great
a
small
is
,:cv"
safe¬
aggression
by
In practice the
re¬
weak'nations
and
to
are
en¬
contempt, on the assumption that the
and principles of the United Nations
Organization, would in all circumstances
them
tect
from
impudence.
consequences
elements
worst
derive
the
the
-
ft'
r
means
Neb.
—
George
Inc., Barkley Building.
of
of
pro¬
their
extreme '
encour¬
that
plunder foreign investors
enterprise with impunity.
This
of
maximum
assurance
now
they can
and foreign
that the outlook for those will¬
Dr.
Einzi^^
Paul
ing to risk their capital for the development
backward
of
countries
private investment
than
worse
it
or
-—
whether
through
-
government-sponsored loans—is now even
during the inter-war period .In the 'twentiestj
was
'thirties many billions of dollars of American and British
capital went down the drain because of unfavorable world-wide
and
economic
conditions,
through extravagance,
defaulted
were
upon.
by
many
debtor
countries
incompetence or corruption. Many loans
But at any rate the defaulting debtors
aggravated
try to make virtue of dishonoring their pledges. In the
'fifties the state of affairs is totally different. Now it has become
did
not
matter
a
of
supreme
virtue
for
countries to
debtor
their
snap
It is no longer a painful necessity to
repudiate debts which the debtors are in any case unable to pay.
It is now the patriotic duty of debtor Governments to refuse to
pay, irrespective of their capacity to pay, and to pass confiscatory
legislation victimizing foreign investors and foreign enterprise.
The public in such countries has been worked into a "pa¬
triotic" fever, demanding the assumption of control over foreign
enterprise.
Any honest Government which tries to honor its
fingers at their credtiors.
pledges is liable to be turned out of office by election result or
and
the Ministers responsible for pursuing an honest
-revolt,
policy
are
liable
to
assassinated.
be
Any
which
Government
comply with the demagogic
demand that it should plunder foreign investment and enterprise.Although Persia is the most striking instance of this tendency,
there are other countries where the movement has reached or
wants
is
in
remain
to
threatening
to
office
reach
has
to
advanced stages.
Nor is it confined to
past investment. The same arrogant approach characterizes also
the attempts to obtain new money.
>
.v .
v
The story goes round in London that the International Bank
received from the Persian Government the following application:
"We want $250
we
shall
use
millions. We have not decided for what purposes
When the bank replied that it would be pre¬
it."
shall use it."
,
democratic Great Powers is liable to be
forced to give way to a Govern¬
ment which satisfies the mob by word and by action that it is i
hot afraid of the Great Powers.
They take great care not to
insult the Soviet Union or its satellites, for that would be a;}
different story. But under the protection of the United Nations.
Governments
the
of
accused of weakness and to be
they can afford to insult and injure the Gov¬
likely to observe the rules laid down by
are
<
...
-,
<
Nations ceased to serve as a:
protection for such action.
Its timid and hesitant attempt at
expressing even disapproval should be replaced by firm action,/
It should not be considered the fundamental task of the United J
Nations to uphold the status quo at all costs, no matter how
unreasonable that status quo may be. Egypt has proved herself;
unworthy to be left in charge of a vital international waterway,,
because
(a) she abused her control for purposes' inadmissible
under international law; (b) by aiming at the assumption of full
control over the Sudan against the wishes of the Sudanese,' she
has showed herself aggressive and imperialistic; and (c) she is
not strong enough to defend the Suez Canal. Even the irregular
troops of Israel were able to inflict defeat on the trained and
organized Egyptian Army, although they had to fight at the
same time Syria,
Iraq and Jordan. Had it not been for British
intervention the Israeli Armies might have seized the control
of the Suez Canal and might have conquered a very large part
of Egypt.
Clearly a nation which is unable to resist even such
negligible forces is not entitled to claim the right to control
one
of the main international arteries of commerce and com¬
is
high
time the United
munications.
It is to the
1
interest of both the United
to
face
time
to
United
with
.
.
States and Britain to
end the petty tyranny of small aggressive nations.
to have to put up with truculence on the part
Communist China. When it comes to haying
a similar attitude on the part of Persia and Egypt it
is
call a halt. If this sort of thing can happen under the
Nations charter then clearly^ something must be wrong
an
is bad enough
of Soviet Russia and
E.
.
.
Any Government of the "nationalistic" small countries which
observes even the ordinary forms of courtesies in dealing with
It
(Special to The Financial Chronicle)
LINCOLN,
the
The
from
bring to
Joins Waddell & Reed
thus Myers is with Waddell & Reed,
tax ex-
against
powerful countries.
It
Street
[n™band "xcise^al teasel h^VhTd 1
S-fLS
dents program
bulk
from
bulk
expenditures 'wherever bulk
but
te
the
overthere
some
expenditures
even
Wail
jectives which a tax pr°gram must community
try to achieve' 1 believe the Pre3i" for the past 35
growing dent'S program is a sound and years- During
program, an adequate tax
do
the United Nations.
adeauate tax
program is one that yields a subi stantial surplus of revenue for retirin0
been a memproperly distribute the tax bur- ber of the
in their effects unless thev
porary
small '.nations
guard
charter they feel
ernments which
Mr. Aal has
^^r^h^^ngo^1' 'h:=;r^:;
pressing inflationary
to
The ideal pursued by
the United Nations
of
what purpose we
.
through
liable
good.
pared to consider applications indicating the schemes for which
the loan is needed, it received a reply on the following lines:
"We now want $500 millions, and we still have not decided fQ&
in
economic ceiling that we scarcely
deficit in the fiscal year 1953.
need worry about raising the genPALM BEACH, Fla.—Clarence
Moreover
taxation is the back- eral level of taxes to° hlgh for the
i.rtni S S i? SL A«7rv
good of the economy. We should, J. Aal will make his new quarters
Sof When government adds of course, be on the lookout for in Bache & Co.'s Palm Beach ofgram.
sjgns that £oecific tax rates are fice, 271 South County Road, as
funds
to
the
income
stream
draw
the authors
in
"Phases ~of~ goodsTarTd
But
agree
burden
able load.
morp
more
oponomists
economists
exreotions
exceptions
financing only about half
economic
the
than will be needed.
rare
rare
much
0f
of these costs by taxation, but
argued that the Pres-
is
urogram
progi am
amounted
governments
To be sure, we made the mis-
uct
been
oppose
as
working mr
as those working for it
if
un-
45% 0f ^he gross national prod-
$10 UUU,UUU.UU0 tax urogram
2j>iu 000 000 000 tax program.
revenue
iocai
and
Increase
persons
First, it
may
amnnntc
arPp
and
income
In
Several
ident'c?
laent s
t
exe™p*e? \rom tax- ^tin anotner
method is to permit the partner-
war.
Billion
$10
Against
Arguments
by
allowances
anniv
„n-wav
ing for
by the Senate Finance Committee,
used
of such
*ries although t e original pur-
doubtedly be much lighter than
was the economic burden of the
A bill provid-
the House of Representa-
passed
poses
nrSnli
thP
flUhmmh
burden
will
program
During 1944 purchases of goods
program and serviCes
by the Federal, State,
and
fiscal
much
a
increase
minimum
a
as
control viewpoints.
mg
to
economic
The
defense
revePu.es by $10,000,-
both
from
President
the
January
000,000
ripi!
doe? not approach the economic tion 0f interest from State and
defense limits. Taxes do not create the
budget. Beginning with April of economic burden of the defense
this year there has been a budget program; their function is to dis-
proposed
than
harm
more
system
ghip
the
balance
to
Last
Another
capital gains.
■
1939.
The weight of evidence is all
ex¬
falls far
after
increased
increased.
■
couraged to treat non-aggressive Great Powers
living has risen. Busi-
profits
ffreatlv
greatly
,
..
..
one
reluctantly to reach the conclusion
foreign investment the system set up by the
is
Nations
nationalists
ness
...
forces
of
United
agement
law
deficit of
Co.
that in matters
a
innr^?J S ivt0rot!!
x-
isting
required
Oil
eXempeted fy0I^ ®ax
reve¬
under
Iranian
Capital investment has expanded.
rises.
come
^
LONDON, Eng.—Persia's truculent and arrogant attitude in
dispute over the confiscation of the property of the Anglo-
the
The level of
of national in¬
1
prop-
United Nations'
plunder foreign, investors.
°f
said
their
the
in
to
more
:
growth
on
policy of non-aggression against small nations, permitting latter
special-
wage
increases since those
been accompanied by
'
have
increase
the volume
edly
,of
pressure
appronriate-mlmy Purely
reread teL Toon
™y
The large tax
undoubt¬
incomes of all kinds.
on
the
Persia, Dr. Einzig lays blame
"one'method allowgiving special
of
tax favors is to
certain kinds
and
1929
erties in
^"cs^l oTtlfe l^phTes
discriminate against
and sal-
persons
above
were
Kmit to
coll ections
Citing British experience with Anglo-Iranian Oil Co.'s
onnnrtmv'
tho
Homatro
of those
pro¬
.
Tthaxes S°aree
Some
the
thinks
rude
lobbies, Congress has
granted an increasing number of
exemptions from the regular pro-
Economy
,
it
By PAUL EINZIG
a
interest
N#t Damage
th.v
in.
any
the
imposed
Under
of tax burden.
-•
amount of tax
revenue
inflation; and
slightly. Says
the economy,
^ ^
if
Investment Under United Nations
•
gressive income tax is uniformly
June
last
ended
higher
larger incomes.
public is due for
awakening
the could then be made, that would
not annoy the taxpayers."
system in
tax
that
year
different
progressively
at
posed
support
balanced budget;
Gloomy Outlook for Foreign
families
that
have
abilities to pay taxes, and it is im-~
of Administration's proposal for $10 billion tax
increase, Dr. Blough points out: (1) increase is essential to
In
»
size
different
of
the subsistence
near
are
it
level;
ROY BLOUGH*
By
who
sons
that
charter.
14
The Commercial and Financial Chronicle
(870)
reflection of the undoubted
Roger Neal Opens
over¬
.
.
Thursday, September 6, 1951
.
Wash.
$100,000,000 mark in total net
of
Dividend
Shares was
THE
production of many manufactures,
Roger
A.
Neal is engaging in the securities
business from offices at 400 South
including capital items. Classic¬
ally, this over-production should
by now have led to a cut-back
—
Mutual Funds
30th Avenue.
By ROBERT R. RICH
assets
crossed
on
of
YAKIMA,
last
operating schedules that would
have
made
sharp
a
in
dent
the
Aug. 28, climaxing an
$82,490,705
on
increase in assets from
Oct.
31, 1950, the end of the
year.
It was the first
fiscal
the
time
crossed
had
fund
million
the
since
the
mark
Federal Reserve Board's index of
Fund
Nj
Managers' Viewpoints
Reflect
investment dealer,
your
NATIONAL
critical
program,
of the economy's response to the
reflects the present uneasy economic situation
and the conflicting attitudes of the business community.
from
or
SECURITIES
RESEARCH
agers on
await the
from
request
upon
&
The
CORPORATION
mutual
test
funds'
che
pessimism
of
portfolio
a
holdings of common stock
completely liquidated.
f
IMMM
VVELUNOTON
m iiiBii
/ #*nii
¥Amnmm+m
Kiaiaflia
19281
10
your
investment dealer
or
PHILADELPHIA
2, PA.
what lies ahead for
«™Vi^ne
econ-
the most important
SrhMhorSfbo
\
o
B
r
e
can
"
•
.
'
licly offered Mutual Funds.
declared
all types
j
shares to meet the special
,1
needs
and
the
institutional
investors.
private
dress
-
both
01
Ad-
Mutual
Manager,
Funds Department.
Founded 1865
•
portfolio
available
and to have some partial hedge
against a continuing decline in,the
purchasing power of the dollar.
Curb Exchanges
Uptown Office 10 E. 45th St., N.Y. 17
temporary in nature and
that the basic outlook is for a continuation
of
high level overall
business
activity and a mainteof high consumer
spending
"In
r
-
our
remainder
or
that
X.
Schreder,
Group
next,
green
it
has
been
green
for
Certificates of
that
market
Ivhahlp"
FUNDS
tlieir capital in
g
of
breaks
high
°ft,<r.0ngress
'
,
■ ■
Conversely,
have five things to-
you
COMMON STOCKS
(Series S1-S2-S3-S4)
had before
never
expenditures;
in
with
porary
Company
Please send
ten
me
prospectuses
describing
Organization and the shares of
your
Funds.
at
July
on
31,
1951,
amounted
to $213,128,100, an in¬
of $3 ,373,500 over the $209,-
crease
of
S4
Funds
Keystone
made
last
B3
public today.
fiscal
The
on
year
the
shows
July
assets
market value of net assets
quarterly.
.
.
As
a
result, the management fee
will remain at Vsth of 1%
quarter¬
to $100,000,000, and will be
l/16th of 1% quarterly on the ex¬
ly
up
above that figure.
cess
KNICKERBOCKER FUND reports
total
of
assets
net
$15,366,332
130
total
net
and
assets
net
a
on
asset
Nov.
conditions
the
31,
BULLOCK FUND, reported to
net
asset
value
in
Assets
the
form
of
cash
and
high-grade, bonds
accounted
for
of
assets;
16.38%
total
net
stocks 83.40%;
stocks 0.22%.
mon
Investment
per
"at
some
least
and preferred
purchases during the
included
Sales
the
elimination
all
up
in
a
12
months
Delta Airlines; 3,000 Electric Bond
ended
July
1950.
31,
holdings of
common
near
The report shows total net assets
of the Fund on July 31, 1951 of
Fairchild
$10,591,937, compared with assets
$16,870,921 a year ago. The
number of shares
was
outstanding on
1^655,521 com¬
with 3,220,830
on
July 31,
1950.
700
$4.20
certificates; 1,300
Airplane; 1,2,300 Safeway
Engine &
Raytheon;
Largest group holdings of com¬
mon
and
dollar-wise
stocks
shares,
gas
14.49%
of
total
net
were
assets;
American Business
been
Shares, Inc.
time
Prospectus
in
upon request
future
general.
before
down to
After
Loud, Abbett & Co.
to detea
lag of
New York
—
Chicago
Atlanta
—
Los
Angeles
the
market
turns
realistic levels and
more
this is what appears to have been
The top-heavy inventory situa-
existed
be-"
dividend expectancy and the
(5)
present threat of
level
they
were
previous breaks in the market."Mr. Schreder said that he
hoped
individual investors would be
of forming
future
on an
course
of
inadequate
opinions
business,
or
on
based
not
such
to
.
.
now,
Mr.
remarked, for investors
be
on
as
swayed by judgments
only one isolated factor,
inventory accumulation,
without regard for other
factors in the economy.
In
the
based
partial survey,
a
special
offsetting
statement
.
to
the
ternational
some
of
complications,
the
reasons
ever
chaotic in-
more
were
Institutional
Shares presented in support of its
thesis that the
/
market, at present
levels, is vulnerable,
j"All of the above,
A
Diversified Investment Company
during the
few months, have been refleeted by a steady decline in the
Prospectus
ratio
investment dealer
last
the
of
spending
amount
bank loans of
of
and
the
profits
capital
to
and
200
may
be obtained from
or
The Parker
your
local
Corporation,
Berkeley St., Boston 16, Mass.
business," the fund
concluded.
Delaware Fund commented that
the "price uncertainty that
transpired between January
August
of
this
year
has
has
and
been
a
LP
•
FOUNDED
52
1925 A
oil
representing
temporary decline of
proportion
in..The
market
stocks
500
Stores,
of
Share
&
a
of
stocks
number of corporations:
some
time in the
com¬
of
months, the
company announced in a special
report to shareholders. "We anticipate," the report said,
at
be
"growth" fund, announced total
net
assets
on
July
31,
1951,
amounted to $11,655,165, equal to
$2J.72 per share. On May 31, 1951,
according to the company's semi¬
annual report for the six months
ended on that date, total net assets
were $11,412,856, or $23.25 a share.
July 31, 1951 was $6.40
from $5.24 per share for the
indicate
have
per
a
fundamental underlying
deteriorating for
30,
value
Business Deteriorating
Ltd.
on
July 31, 1951 and a net asset value
of $6.22, compared with $13,767-
The studies and research of In-
Shares,
man¬
average
of the
on
a
stitutional
waiver
quarterly
agement fee" with respect to any
excess
over
$100,000,000
of the
were
total net
pared
breaks;
Address
values
July 31, 1951
that
the
Schreder
D3
of the
10, Keystone Custodian Funds at
market
share
heavy industry remaining at
high
level,"
stated
Rawson
previous market
half
of business conditions.
Its
very
important
State
one-half
tion,
Name
Gty
a
1950
COMBINED NET ASSETS
and
the
wary
your
by
benefit
the public's reluctance to
good
financial position of most accept today's prices, the proscorporations; (3) the strong liquid pects of declining earnings due to
asset position of
individuals; (4) taxes, reduced volume and less efpresent price-earnings ratio only ficient
operatoin, the decline in
fore
Congress Street, Boston 9, Mass.
Dividend
will
31, 1951 and 2,205,892 a year ago.
Products;
5,000
Texas
Eastern
The report of the Keystone Low
Transmission;- 1,000 United Gas
Priced^ Common Stock Fund S4 Corp.
goods to be temnational production
consumers
of
Shares
$39,184,293 on July 31, three months ended
July 31 in¬
to $38,932,741 at
cluded 1.500 shares of Glass Fibers,
the close of July, 1950. The num¬
Inc.; 1,100 Minnesota Power &
ber of shares outstanding for the
Light; 1,000 SeabQard Air Line
same period was 2,188,803 on July;
R.
R.;
1,000
Sylvania
Electric
a surplus of civilian goods,
in spite of the overbuying by the
(2)
at
50
of
approximately
stockholders
taking place."
stock yields twice what
The Keystone
1948,
holdings
management,
50,000
1951, compared
tion of
previous major breaks: (1) the
existence of heavy peacetime re-
V
since
simultaneous
a
share of $5.60.
Fund
present economic readjustment as
mainly the result of an accumula-
armament
(Scries K1-K2)
change
its entire
stocks.
1950.
.
he
you
liquidated
the
0n: the pending tax
,
stated, "you have economic conditions start
present, in part at least, most of. riorate, there is usually
day which
PREFERRED STOCKS
,
corporate earn-
Wellington Fund, in ats-interim
investment report, regarded the
value
"Today,"
at
(Series B1-B2-B3-B4)
appear
lngs and liberal dividend dis-
real
however,
BONDS
in-
annear
.
tions and the like.
in
policy
jor
and
K
'
'
Mr. Simonson concluded that,
events —high
commodity prices,
high stock market prices, inventory accumulations, credit restric-
these various factors.
investing
each
since 1920 were accompanied
by a
different combination of economic
Participation
INVESTMENT
said
major
few weeks ago, in its first ma¬
on-July 31, 1951 was $17.90 com¬
pared with $17.65 at the close of
aid
foreign
business
Schreder
five
that of Technical Fund which,
was
to
two
turning
Mr.
The most defensive action taken
; The net asset value per share
of the Low Priced Bond Fund B3
th^e^ it will do.'
?tSaiMrJh'!Ch WG positively *hat
Custodian Funds
to
it will turn. Lloyd, Vice-President arid Directhe fact tor of Investment Research,
years suggests the logic
that it might turn
red, if only for,
a
short period before
the
hospitaliza¬
fa*.v
and
According
announcement by the Calvin Bul¬
but
think
Keystone
due
year,
extended
any
fu¬
near
Production stage in larger volume.
Further appropriations for mili-<
straight
w——
this
the
tion."
reports
opinion, the basic out-' public earlier in the year,
inflationary."
"We expect this readjustment
Securities,
commented:
"We're
sitting at an investment traffic
light and the light is yellow.
We
red
H?
of
in
ago,
rate during the
look continues to be
don't know whether
MUrray Hill 2-yiqo
ture.
least
at
754,600 reported on July 31 a year
it is disclosed by the annual
'.'Business activity will continue
at.an accelerated
' be tempered by the final action
omy are
nance
income
u
s
i
Harold
and
are
bursemenL> may be expected.
Howeyer, the degree of such earnmanager/i"gs,^
X
£,wl!L °f ^0X??e
"We believe," he said, that the
current dislocations in our econ-
'•
Members New York Stock
\
and
power.
! Kidder, peabody & Co.
•
relatively high
"Continued
-
fully invested position is being
maintained
by
Diversified
Funds, T. J; Herbert, Vice-President
Company
"We
+e1S defense expenditures reaching the
q«#
'
information about any
covers
said,
Research,
we
.require,
stocks in order to benefit from the
A
Investment
&
but
cured,
do not expect that he will
businessmen concerning the prospects for our economy—are not
the results of basic disagreements
but rather the partial and incomplete product, at present, of active
duction.
'*>p Our service
Simonson,
these
and
patient is not entirely
common
absorb
rearmament production, still leaving excess capacity for civilian
capital goods and consumer pro-
"
untrustworthy,
seems
observers expect a further relapse.
We don't deny the possibility that
should also have adequate investment representation
in common
a^°n of
this, being artificial,
many
a
and
Apnnnmv
impartial
pub-
"To
backlog of bonds and preferred
stocks seems prudent for the investor,
but
that the portfolio
tentative
^n thi ilcf
C SSf that it
so
expanded
Write for complete,
ties
aP.^ tireless research and evalu-
.prospectus from
J.
Henry
being
of
somewhat
The
is
national defense effort.
—with the counterpart conflicts to
be
found
in
the
discussions of
paaaaaa—'^waaaaaaaiaaaaaaa^
WiiiliaaaMHRMHHRHBRHi
indigestion
figures.
lock
conflicting appraisals of the business
and
market future—by the
mutual funds' portfolio managers
k^HgM»aaaaaaaaaa»BaBaatBaaM«aaaBaMaaaaaa«a
wmmmmmmmmn
the
continuing a constructive institutiqnal investment, policy, maintaining" the view that a reasonable
were
maiawiK.
"Chronicle,"
Jr., President of National Securi-
in
which
"If
unemployment
the
investment
policies range from the optimism
of
a
fully-invested portfolio to
120 BROADWAY, NEW YORK 5, N. Y.
in
without
these
unpleasant
medicines, it is because of the
totally artificial stimulation of the
viewpoints of mutual funds' portfolio man¬
the short-run business and market outlook, as they
rearmament
Prospectus
:>
company's incorporation in 1932.
bulge
cured
Uneasy Situation
The diverse
of
industrial production and a visible
H
Speculative
;
hundred
steel,
Number 5044
Volume 174
,
.
.
%;; utilities,. 6.62 %; railroads,v
7.70
Railroad Company
holdings
-V, Largest
dollar-wise
stocks
common
2.99%
total
of
Oil
Standard
Jersey,
Illinois
Central
United
Aircraft,
R.
"2.02%;
Boeing
R.,
2.00%;
Airplane, 1.69%; Texas Company,
1.66%;
Wheeling
Steel,
1.66%;
Rock Island R. R., 1.65%; South
Pacific
ern
were
U. S. Foil "B".
30, last, Growth Com¬
On Aug.
in its portfolio
47 companies and
had
of
portfolio
had
a
and
variety
of
operator
With Shields & Co.
John
Aug.
on
be¬
Shields
with
&
York
members of the NewStock
Exchange, in their
Hotel
Biltmore
City.
,
office, New York,,
the
Phillips Co. Exhibit
At County Fair
1950, with
all in cash and
of $256,500
assets
1,
has
McNamara
A.
Company,
interested
given
people until Sept. 7 to request
hearing upon the application.
$870,356. Cash and receivables on
date amounted to $120,728.
Started
has
SEC
J.
associated
come
The
market value of
CHANGES since an initial offering price of $9.00
last, by Wellington in¬ a
share,
Growth
Companies,
DELAWARE
FUND
climaxed a' cluded some trimming of its sub¬ closed the month of August, 1951,
stantial holdings in the chemical, with net assets of $997,420, equal
$5,000,000 increase in its resources
to $11.77 a share on the 84,709
in the past 12 months to become chemical fiber and oil stocks fol¬
a
$10,000,000 institution on Aug. lowing their sharp advance. - The shares outstanding.
Fund's report observed that this
29,-W.-Linton Nelson, President,
INVESTORS
Fund
action
restored: previous invest¬ REPUBLIC
announced.
•
ment ratios of those groups.
The has shown a 200% gain in total
Mr.
Nelson
reported that • the
principal reductions were in Al¬ assets during the 17 months under
once
"all - Philadelphia fund "
lied Chemical & Dye, American.. E.-W. Axe & Co., Inc. Manage¬
which was started with less than
Cyanamid, Union Carbide & Car¬ ment. At the same lime the net
$500,000 and a handful of share¬
bon and Victor Chemical Works
asset value per share increased
holders
back
in
1938
now
has
in the chemical, group; in Amer¬ 30%;
grown into a nationally-owned in¬
ican Viscose and Celanese among ;
stitution with net assets of $10,the chemical fibers; and in Con¬ THE SECURITIES and Exchange
044,522 and more than 2,000 share¬
tinental, Phillips, Shell," Socony- Commission on Aug. 24 received
holders throughout the country.
Vacuum,
Standard Oil of Ind., application from Founders Incorr
The mutual fund executive at¬
Standard Oil of N. J. and Texas■ porated, Minneapolis, Minnesota,
tributed the rapid growth of Del¬
in which the company asked for
Co. among the oils.
;V*
aware
Fund in recent years to a
an order
declaring that it is pri¬
Other
common
stock ^changes
growing realization on the part of
since June 30 ■, last, included re¬ marily engaged in a business or
the investing public that money
businesses other than that of in¬
ductions in Certain-teed Produets, ?
put to work in common stocks will
Standard Brands, Goodyear Tire; vesting, reinvesting, owning, hold¬
produce more dollar income than
y
& Rubber, American Optical, Ohio". ing-or trading securities.
any
other medium.
He/ recalled
Such a finding by the Commis¬
that original shareholders in Del¬ Edison, Consolidated Natural Gasi
and Columbus Gas System. Penn¬ sion would entitle the company
aware Fund who paid $15 a share
sylvania R.R., U. S. Pipe & Foun¬ to an exemption from the Invest¬
for their stock in 1938 had re¬
June
acquire, the entire capi¬
S. Rasco & Company,
the
INVESTMENT
Skelly Oil, 1.51%.
'
that
ously for 25 years or more.
1.64%;
Company,
continu¬
dividends
paid
have
investments
Products, U. S. Gypsum and
Ekco
stocks
30
F.
stores.
"reported to be dividend-payers."
It is said that 63 have paid divi¬
dends for*10 years or more and
2.33%; International Paper, 2.14%;
of
tal
owner
panies
Of the 65
about to
made
New
issues owned, all are
-
General
by the Fund in H. H. Robertson,
net
New
of
Co., Consolidated Edison Co., Elec¬
tric Auto-Lite Co., Johns Manville
were
and
Electric.
constitut¬
Corp., Pullman, Inc., and Liggett
assets; &
Myers Tobacco Company. „
1'.
Lily Tulip Cup shares,
ing
stocks
individual
of
Grayson .Robinson
stock
common
purchase of the common
of "Commonwealth Edison
the
and
5.88%; retail trade, 5.23%.
<a7i), is
Financial-Chronicle'
The Commercial and
30,
,
going
is
Street
Wall
With Cantor, Fitzgerald
(Special to The Financial Chronicle)
BEVERLY
the
to
sociated
with
Cantor,
&
Fair and, with the help
"of marionettes, attempting to ex¬
County
Inc.,
224
Co.,
Fitzgerald
North Canon.
Goldsmith
Mr.
Drive.
its "mysteries" to John Q.
This unorthodox approach
plain
Calif.—
HILLS,
Jerome Goldsmith has become as¬
merly with Fewel &
Public.
Reeves &
was
for-1
Co., Daniel
Co., and Morgan & Co.
weighty financial matters may
viewed in the B. G. Phillips
to
be
Company tent at the Nassau
and
County Fair, Mineola, L. I., from
Sept.
who
benefit
For the
15.
to
11
those
of
already
not
-are
familiar with Mutual Fund invest¬
,
depict,
ments, the marionettes will
.
.
ceived
of
total
a
$20
a
share in
last,
cash distributions to June 30,
their
and
business
shares
the
at
yesterday, had
of
close
net asset
a
cuit
"that
die
and
more
more
added,
people are
turning to mutual funds to obtain
common
stock ownership.
Dela¬
Fund, for example, has uo-
ware
70%
of
wards
shareholders
more
We
today than it had a year ago.
look
for
continuation
a
trend.",:..
\ ■.
.
.
.
this
of
were
principal
-
as
of
Guy
administrative officer
of the home office investment de¬
of Investors Diversified
Harry T. Newcomb
partment
Services
and
corporate
as
Diversified
counsel of Investors
Services
Lemmon
Mr.
Was
in
foriherly
the company's Chicago
corporation finance office. Before
World War II he was President
of Hecker Products Corporation,
now known as Best Foods.
During
the last war he served as Coordi¬
nator
of
the
War
Bond
"Task
liaison between the
Department and a
group of leading New York adver¬
tising agencies in furthering the
•sale of "E," "F" and "G" bonds,
Force,"
U.
of
the
and
attorney of The Chesapeake
Ohio Railway Company. Be¬
fore
joining the C. & O. Railway
Company, he was associated with
the law firm of Sidley, Austin,
Burgess and Smith in Chicago and
later served as secretary and gen¬
eral counsel of American Buslines
there.
THE
sets
STOCK
Fund
of
Group Securities, Inc., reports the
number of stocks held, has been
increased to 65 by
during
the elimination
the past quarter
Rock Island &
Chicago,
of the
Pacific
of 87%
its current
reported by Value
at
are
stated
a
net as¬
high of
new
COMPANIES
made
reports
in
changes
following
were
Corp.
Exposition,
in
Ill
COMMONWEALTH
White
INVESTMENT
COMPANY
1
r
193?
Prospectus from Investment
or 2500 Russ Building
it■
Dealers
other
km
Oklahoma, is
this
three
home, and
in 25 states. He's got
man
A Mutual Investment Fund
affairs. Charley has sold
in
our
Prospectus from your
any
investment dealer or
entire organization.
were
A.
O.
Arms,
Charley happy
(and us, too).
port¬
U.
Pure
S.
CALVIN BULLOCK
New \brk
One Wall Street
and all its resources.
of new, proved
THE COMMON
STOCK FUND
He's
on
the receiving
end of
a
constant stream
selling ideas.
Oil,
assistants working with
him. He works a familiar territory and lives in his home town
where he and his wife and children are happy.
salesman but now
STOCK FUND
If all this
-
has four splendid
,
OBTAINED
FROM
YOUR
EATON
INVESTMENT FUNDS MAY
INVESTMENT
DEALER
sounds like the
kind of opportunity you've being
King Merritt, President, and get full
set-up like Charley's in your territory.
ing for—write to
"mation about a
OF
Group
Securities, inc.
& HOWARD
KING MERRITT &
22 East 40th St., New
BOSTON
MUrray
24 Federal Street
BOSTON
333
look-
infor-
OR
INCORPORATED
Montgomery Street
SAN FRANCISCO
CO., INC.
York 16, N. Y.
OFFICES FROM COAST TO
a
prospectus
from your
Distributors
Hill 9-1586
COAST
■
Established 1894
He's his own boss and is building another strong
King Merritt & Co., Inc. sales unit. He started as an individual
"
Plywood,
BALANCED FUND
salesman, Charley
nationwide organization
/ eliminated.
Smith,
a
EATON & HOWARD
PROSPECTUSES OF THESE TWO
>
and
knows that the more time you spend
with prospects the more you sell, and tiie bigger your commis¬
sions. Charley isn't bogged down with paperwork and details.
..'(We handle all that for him.) He spends all his time with his
prospects; puts all his talent and energy into selling just one
type of security (Mutual Fund Shares). He is backed by our
Being
in August. Lin¬
EATON & HOWARD
BE
R
1
Mutual Fund shares than
more
Holdings of McBee Co. were re¬
duced. Additional purchases were
Savage
A Balanced
Mutual Fund
ESTABLISHED
community
National Life Insurance and
made
•
Plains, Sept. 25 to 30.
in net assets for
which
Fund,
now
GROWTH
coln
Homes
fm.
"
year was
Ferro
Better
in
Westchester
youngsters, owns his own
takes an active part in church
Sept.
approximately $7,050,000.
the
it will exhibit the
the month at the 1951
company
Howard
&
the first six months of
Line
Fair,
typical of the men who represent
That makes
fiscal
County
Mutual Fund Marionettes later
Charley, who lives in
dividend
dividend payment on
Stock Fund.
GAIN
New York Cits
Broadway
invest¬
of
types
39
although
OUR TOP
State
Fund.
payable
share
consecutive
request.
F. EBERSTADT & CO. INC.?
spe-.
GltGsde4f
declared dividend of
a
upon
SALESMAN
Eaton
of
cents
folio
COMMON
a
Fund
available
& Howard
declared dividend
share payable on
consecutive
78th
shares, including
San Francisco 4, California
MEET
25, 1951, to stockholders
A
all
ing, is
w&
of record
Sept. 14, 1951, which is the 80th
Mr. Newcomb was formerly gen¬
handles
and its
price and terms of offer*
ments/ In addition to the Nassau
Gas.
Fund
Trustees
15
Wall Street, is
cializes in Mutual Funds,
it
„
pany
the
Company,
and
house which
investment
an
•
to
Eaton
payment on Balanced
Stock
is believed
American Natural
of
cents
25
offices at 44
with
A Prospectus describing the Com*
ii
Sept. 25, 1951, to stockholders of
record Sept. 14, 1951, constituting
as
S. Treasruy
eral
Utilities, ' N.. Y.
Gas and United
Balanced
charge of
Phillips
G.
B.
an¬
modern
be the first time.
,
Products,
Thompson
States
Electric & Gas,
TRUSTEES
this week.
nounced
cluded:,
Chemical,
an¬
was
the
Ill
purchases, mainly addi¬
previous holdings, in¬
G. C. Murphy,* "Spencer
to
Gulf
what
for
Colossus
meet
an
new
Tele¬
investment in New England
tions
will
art
Thus
Steel,.
Humble Oil with a
and
tric
cient
1,000,000 shares
owns
development.
cial
Palmolive - Peet, Con¬
Casualty, General Elec¬
Other
Lemmon
common
purchases, according to the
m issues considered
u-e
u.ariret ana 'included
ican
Tooacco,
Bethlehem
tinental
Founders
finan¬
tages of this rather recent
(40.1%) of Gamble-Skogmo, Inc^,
which operates a chain of more
stock than 500 retail stores and engages
report, in wholesaling of merchandise.
beaind The* company has acquired, or is
Amer¬
were
Colgate
Company Act of 1940.
ment
phone & Telegraph common.
V
APPOINTMENTS
THE
and
Bank
Illinois
'the
finding,"
are
Continental
Sunshine Bis¬
eliminated/
;'
American Brake Shoe,
value of $17.23.
"We
States Power,
Northern
dry,
serio-comic fashion, the advan¬
in
on
request
investment dealer
Group, Incorporated
63 Wall Street, New
York 5, N. Y.
16
(872)
*
"•
^
v
competition
Motor
if they build over¬
highways — proponents
say that the transportation systems
Thruways Built
head
ceiving
By ALEXANDER WILSON*
A
tem elevated express thruways in
the air spaces over railroad
right-
of-ways, restricted
automobiles,
is
to
passenger
\
public
idea
of
the
public
Miles of Road
advanced by
Local
Control
its proponents
Federal
All
571,753
2,360,586
Control
Total
the
Motor
con-
taxable
>'■
of
'
Alexander Wilson
prop- -
3,002,509 %
__
thruways built
over
rail¬
To
more
costly
than
an
elevated
highway.
(4) Conversely, if thruways
elevated
as
ascertain
have
the
what
to
mean,
no
time in
come
possibilities
roads
istent railroad tracks,
oyer
are
the
hancement.
The
en¬
"Mr.
hicular traffic in the next five
ten years for instance.
The
or
rapid dieseliation of rail¬
road motive power will minimize
the smoke nuisance to railroad
thruways automobile traffic.
At the
ex¬
they would 28,964
end
of 1949
there
million
from
on
$44
ber.
steam locomotives and 10,-
will
be
replaced with the
economical
more
open
Nov.
miles
for
per
business
15.
The
hour
on
full
ways
more
realize
(b)
efficiently than local
gines.
operating
solvency for this road, and
the dangerously con¬
local
well
as
use
the
road.
gested
construction
of
additional traffic
arteries.
The
automobile
roads
(like
highway
the
toll
Pennsylvania
118-mile
a
period of time, will
pay
enormous
growth
population, automobile
of
and trans¬
portation requirements in the con¬
gested centers of our
country.
Surface
thoroughfares,
streets
ways,
and
high¬
intersections
would be much safer for
vehicular
traffic and the
public, if thous¬
*
Writer
of
following "Chronicle"
articles: 'Why a New
League of Nations
Will Not Insure Permanent
Peace," and
a
"Reply to Critics" of this
article, also
"Peace by Force in
"Are
Americans
Failure
"How
Lost
the
of
an
Uncivilized World,"
Isolationists?"
White
Man's
President
Civilization,"
Truman Can
Regain his
Prestige," "Is Capitalism the Cause
Critical View of American
"Straight From the Shoulder
Politics,"
Advice
Gov.
to
Dewey," "Can America
Prosper Without Foreign Trade?" "A
Plan for Solving the British
Crisis," "The
'Sun'
That
Was," also "The Widow's
Mite and
Defense
The
of
IndisDensable Pennv,"
Man's
Freedom" and
Money ?"
Right
to
"A
Intellectual
"What Did They Use For
the
Na¬
Trust
Bank
for
Vice-President
of
eight
of
the
of United
States
•-
,
22
of
Trust, Jan.
made
was
the
on
of
merger
the
route,
into
industrial
the
Savings
Gibraltar
tions
the
will
stated
combined
be
J.,
that
associa¬
known
the
as
Gibraltar Savings and Loan Asso¬
ciation with total assets of over
not
cost
for
and
its Secretary, will be
Treasurer. Frank
many years
Secretary
and
P.
Executive
Litter,
Vice-Presi¬
of Gibraltar, will be First
Vice-President, Harvey J. Young,
formerly
President
of
Lacka¬
Second Vice-President, in
charge of East Orange.
wanna,
*
*
•
*
The Philadelphia National Bank
of
als and supplies.
lets, villages, towns
The earnings figures show that
ness
and
losing busi¬
costs the railroads
$400
$600 million yearly \vhich the
freight business is carrying.
to
The
railroads
revenues
ger and
to
must
find
new
outside of their passen¬
freight income if they
Would
Objection that RR.s
Be
Inviting
Further
after
bank.
We
passenger
car
and
r'^-
not
well
ham¬
prosperous
,y
must
of
The
49
Pa.,
forget
bank's
experience
in
as
the
John
*
it
financial
Without its vast
States.
the
develop¬
.
system, America would
Co.
for
Banking
not
40
&
on
of age.
years
Trusts
In
its
"Mr.
Koenig,
recently
1926
powerful
Peoples
the
business anatomy.
is
no
that the rail¬
are
the
nation's" entire
.
•
\
Trust
relieved
of
in the bank,
Vice-President in
Department
and
as
a
member of the Board of Directors.
In
1919, Mr. Reyerson joined the
staff
of
the
Minneapolis Trust
Company, later consolidated with
First
National
Bank.
He
became
Vice-President and Trust Officer.
He attended Carleton
received
College and
degree from the
law
a
University of Minnesota.
❖
'
$
*
As of Aug. 22 the capital of the
First National
Bank
of
Tuska-
loosa,
Ala.
$450,000
stock
enlarged from
$600,000 through .a
of $150,000.
was
to
dividend
of
new
stock.
*
A
* .£
change in
Montana
*
the
Bank
Trust
&
the
of
name
Co.
of
Great Falls, Mont., a State mem¬
the
to
Montana
Bank,
was
of
Aug. 1, according to
the August 25 weekly announce¬
as
of
ment
the Board
of
of the Federal Reserve
*
is
It
»
Governors
System.
*
that
announced
the
new
capital of the Bank of California
National Association, of San Fran¬
cisco,
is
now
$10,200,000, having
been increased from $8,500,000 ef¬
fective
Aug.
7.
The
enlarged
sale of the
an
stock, resulted in
new
addition
of
$1,700,000
surplus, raising
V "','U V
*
As
a
it
to
*
result of
to
*
■,
stock
a
the
$13,200,000.
dividend
$500,000, the Old National Bank
Spokane,
Wash.,
capital
increased its
from $1,-
as
of Aug. 20
500,000 to $2,000,000.
,
career'
Bank
later became
&
an
the
Co.
and
Trust
construction.
was
St.
Mark's
&
Co., 601 Bryant Street.
With Schwabacher
(Special to The Financial Chronicle)
SACRAMENTO, 1 Calif.
a
Methodist
on
new
R. Johnson is
now
Schwabacher
authority in the
lending
of
May Adds
PALO ALTO, Calif.—Peter F.
Zwingman is with J. Earle May
began
with
field of mortgage
He
J. Earle
(Special to The Financial Chronicle)
elected
company,
It
issue
Aug. 24 the Philadelphia "In¬
quirer" said:
the
of
the
of health, has
be
active
a
as
the
Mr.
responsibilities. He
continue
however,
of
of
in
backbone
will
Aug. 25. He
his
say
his
of
he
of
1941.
since
reasons
certain
of
President of
roads of the United States
Chairman
that
of
:
director of the Colonel Surety Co.,
affiliate of the Pennsylvania
pioneering rail¬
today.
and
Committee
requested
as
.
be the world's wealthiest and most
nation
President
Trust
an
that
industrial
country.
the
Koenig, Jr., President and
was
and
under
abroad
United
*
Philadelphia, died
our
K.
Vice-
as
announces
foreign depart¬
railroads made possible the
great
ment of
Alfred
of
years
hereafter be
j
and cities that
this
up
exaggeration to
Competition
the objection which
may be
advanced, that railroads would be
further
make
country.
road
To
inviting
to
are
prosper.
Answers
go
thousands
position, Mr.
new
succeed
capital was brought about by the
sale of $1,700,000 of new stock
service,
Reuben B. Hall, Vice-President in sale of $1,700,000 of new stock,
of
which
were
charge of the Foreign Depart¬ details
given
ment, has retired under the pen¬ in our issue of July 19, page 252.
sion and retirement plan of the Besides increasing the capital, the
Philadelphia,
that
banking
century to populate
as
Chairman'of
Wilson, who has served
■
done more than any other
agency
the
will
dent
make
up
Reyerson
made
Gibraltar
supervision of T. Graydon Upton,
Vice-President, who has had wide
build
a
directors. In his
ber,
of
For of all the construction
agen¬
cies
extant, the railroads have
in the last
Ryerson
and
on
Aug. 30 by
Quay, President, fol¬
meeting of the bank's
H.
founders
New
living at present passnger
and freight rates with
continuing
increasing costs for labor, materi¬
it
announced
head the consolidated association,
and Elmer E. Lee, also one of the
It is obvious to
any fair-minded
person that the railroads cannot
a
if
Paul
and with offices at:
The American National Bank in
office, 1029 South Orange
Avenue,
Newark,
N.
J.,
and St. Louis, Mo. reports its capital
Lackawanna
Office, Main and as having been increased as of
Sterling Streets, East Orange, N. J. Aug. 6, from $400,000 to $480,000,
The Newark "Evening News" re¬ as a result of the sale of $80,000
institutional
to
the
;
Main
gigantic enter¬
financed by the issuance
will
of
$13,000,000
this
bonds
the
Governors
of
and
Newark, N. J.
announcement
hereafter
Loan
Savings
Loan Association of
The
and
a n d
t h e $70,000,000 ports that:
Pennsylvania Turnpike (covering
"William Wepner, of Westfield,
Philadelphia, Harrisburg, Pitts-. a founder and the President of
burgh) to the Ohio line. The con¬ Gibraltar for many years, will
and
Mt.
Assistant Trust Officer in 1923,
and since 1941 has* served as a
*
Thruway
investors
of
in
an
,
♦
ment will
"The
of Wars?" "A
with
heartedly and generously.
passenger traffic is a
the
of¬
Association of East Orange, N.
of
of
Wilson, for
Guaranty
Announcement
along its
necessitated the
off the entire cost of their con¬
Jersey's taxpayers a dime as the
It would be interesting to
struction. The suggestion outlined
construction cost will eventually
effect a conversion of
above for the railroad to build
be paid for out of tolls and con¬
the present Third Avenue Ele¬
passenger car thruways over their cession
fees.
vated Railway as a motor
Howard
Johnson
thruway tracks should receive serious con¬
restaurants and Cities Service Co.
would have on north and south¬
sideration as soon as conditions
gas stations have already secured
bound traffic on the east side of
become more peaceful and normal
concessions to serve the patrons of
Manhattan, now that the demoli¬ and when War Defense
demands this
tion of this age-old structure is
Speedway.
for steel and other materials will
projected.
not be as urgent as
What Our Railroads Have Done
during these
In fact, proponents of
thruways hectic times. The railroad situa¬
For U. S. A.
wonder why the old Ninth and
tion with its multiferous
problems
If there is one thing the
Sixth Avenue Manhattan Elevated
people
is
such that
the industry must of the
United States should do for
Railway structures were removed
find new revenues and new
oper¬ their railroads
and not used for motor
which are beset
highways. ation wrinkles immediately if our
with competition and
At the present
problems on
time, new surface great
transportation systems are
and
every hand, it would be to support
elevated highways are im¬
to survive and to be operated on
the
railroad
industry, wh o 1 e
peratively needed to keep pace a profitable basis.
the
State
Vice-President
National
and
Aug.
The
what
with
the
was
*
(7)
see
National
career
later
5,1940.
Refinery at LindennvN, J. besides
acquiring houses for dispossessed
struction
Bank,
same
right-of-way
Turnpike, Hendrick Hudson Park¬ prise was
way, etc.) are profitably operated of
revenue
and in
the
at
Lackawanna
purchase of farms and
Board
lowing
be¬
County Bankers' Associa¬
prior to his election as Presi¬
dent
through
as
new
Aug. 6 to
contained
were
Arthur
the main
Trust
Passaic
tion
are
Do Toll Automobile Roads,
Tunnels and Bridges Pay?
relieve
arteries in the intensively
developed and populated sections
of Long Island which for want of
space will not permit any further
There
and
teen entrance and exit ramps will
traffic to
State
has
Pa.
of
as
tional Bank of Minneapolis, Minn,
Decem¬
■».*
He
Passaic
charge of $4.75 for trucks. Seven¬
allow
last
Crum, it is added, started
years
minimum
a
Bank
States
-
will
length toll is
and
the
the Trust Committee of First Na¬
absorbed
merger
State
banking
Co.
expected to be $1.75 for passenger
automobiles
Carmel,
Vice-President
Vice-
time five branch offices of United
York,
about
or
a
tional Bank of Commerce in New
diesel en¬
1,500 railroad tenants. The New Jersey Turnpike
tunnels in this country, with an
and state politicians.
Authority estimates that' 7,600,000
aggregate length of about 320 vehicles will use the
Speedway in
(6) It is possible that toll thrumiles, and 190,000 railroad bridges 1952 and 15,200,000
by 1962. The
ways built over the tracks of the
with an aggregate length of
3,750 New Jersey Turnpike will connect
bankrupt Long Island Railroad
miles.
'
with the $450,000,000 New York
would help to (a) rehabilitate and
finance and manage elevated thru-
the
United
of
Mr.
Bridge from Deepwater, N. J.,
Pigeons Point, Del. (near Wil¬
mington, Del.) with speed limits
70
that
Federal Reserve System.
the Federal Square office of.
National
his
million Delaware Memo¬
to
effect
also
State
Trust
States became
taxable, as is all railroad prop¬
land, the moving or demolishment
erty, and communities would not eration on Class I roads. It will of 500 buildings, the relocation of
suffer from the elimination of be only a matter of time when freight
yards and five large stor¬
most
of the steam locomotives
their present realty taxes.
age tanks of the Esso Bayway
(5) Railroad corporations could
States
fices."
888 diesel electric engines in
op¬
be
named
was
institution
Under
came
to
60
the
the
"News"
the
of National
that
office
rial
of
and
Mortgage
Aug. 25 announcement issued by
was
of
Liberty
Carmel,
was
George Washington
the Hudson River to
the
Crum
years
the
Bridge
miles
the
Election
Crum
United
speedway
in length,
118
300-foot
were
modern
enterprise,
11
J.,
N.
President
Turnpike
timely interest.
Jersey Turnpike, a:
New
for
Mr.
Mt.
changed its title
*
published in the September issue
The
that
Noting
the
to
of
pany,
on
said in part:
description of
newest
highway
Jersey's
the
Liberty State Bank & Trust Com¬
was
"Evening News" of Aug.
Newark,
looking into
following
New
Advices
First
Fla.
Aug.
23
by
Chinn, President of
it is learned from the
bank,
when
Jersey
Philadelphia
and
former United States Trust Co. of
^
New
the
B.
President
thruways
future
known
Newark
23.
of
Vice-President
a
Clement
the
of ;
Suburbs
Bankers Association.
made
the railroads
for
$250
cars are seek¬
order to facilitate traffic.
Railroad lines in U.S.A. totaled
225,100 miles Jan. 1, 1950 and
railroad trackage 397,000 miles.
comes tax
exempt, depriving each stretch of the imagination to pic¬
ture the mass congestion of ve¬
locality of income.
and illumination of
ground level
thruways is also considerable and
of
sociation
Advertising Club of New
The election of Ralph W. Crum
of "Fortune" is of
At the rate automobile
erty in each community traversed.
produc¬
(2) When a right-of-way is ac¬ tion is progressing (8,002,782 new
cars
and
trucks were built
quired for a ground level thruin
way,
the acquired property be¬ 1950), it does not require any
(3) 'The maintenance, policing
sides
Broomall; the Home Builders' As-
York.
speedway instead of building the
usual railings.
70,170
__
ing in
lse where
cause
Mileage
both
on
49,103,275 registered
New York and
demnation
placed
road tracks may provide the solu¬
tion- which
56,038,000 drivers of
thruways in
New Jersey,
built
be
The
level
Brooklyn,
Advertisers
as
be briefly
(1)
e
roads
1949 may
Control
summarized:
Financial
York
and the
of
Club
Bankers
National Bank of Miami,
should lose
State
ground
Additional Revenues
,
at the end of
use
viz:
dva ntages
may
the
New
ural gas,
Some of the
a
automo¬
head
be
gleaned from the World Almanac,
atten¬
private
public thruways.
over
it may be feasible for the railroad
to operate pipe lines on the over¬
Physical Side of the Picture
Some
in
tion.
if
re¬
As additional forms of
revenue,
revenues.
The
"
attracting
without
News About Banks and Bankers
of
amount
same
thruways to convey oil, nat¬
telephone and telegraph
wires, pneumatic mailing tubes
ands
of
automobiles
could
be and
perhaps conveyor belts lor
routed over elevated thruways.
packages. These big pipes might
increase railroad
sys¬
tolls,
Other
mobility, especially in thickly settled districts and which
suggestion to build toll
the
anyway
biles travel
Writer discusses advantages advanced for
building elevated
toll bridge highways over railroad tracks. A theoretical state¬
ment of a traffic innovation that
may promote greater motor
may
have
competition
Thursday, September 6, 1951
Continued from page 10
toll
would
Over Railroad Tracks
car
The Commercial and Financial Chronicle...
&
with
Church,
years.
Davies
&
1001
was
Mejia
''
•
Fred
associated with
Co.,
Street. Mr. Johnson
member
—
Jay
formerly
for
many
Number 5044
Volume 174
(873)
Chronicle
The Commercial and Financial
.
*.
the
manage
Real Estate Outlook for 1952
Bank and Insurance Stocks
fully.
in
well for you.
Mr. Babson
values in
have combined
of events
number
at¬
to attract increased
two weeks.
which helped to increase trading activity
th#a pnncnlnegotiations bfitWftpri
publicity attending the consolidation negotiations between
Chase National Bank and the Bank of Manhattan. Even though
The
initial
the
spark
want to
nnhlinitv
legal
new
which
problems
to roads
in the form
—
a
good income
refuge in the coun-
or a
a
as
arose
holding real estate
human
home,
property,
result of the discussion^
prevented the combination of the two banks, the event revived
old merger rumors among other institutions and started a* few
the
is
It
land
own
one's
of
basic.
is
Land
■.
try.Remember
the
tha t,
good
all
of these, it might be remembered
the
early
the
connection;
same
depends
amount of land
ability
of
also
look
can
often
Congress which would facilitate the merger
n
price.
current
in
the
the
the
1951
Indicated
Price Range
Annual
Current
Price
Dividend
Yield
High
$1.40
4.71%
34
333
14.00
4.20
45
2.00
4.44
48%
42%
3614
1.80
4.97
40
35%.:-
43%
2.00
4.58
45%
40
would
72%
60%
exceptions,
133 /
103%
29%:
Bank of Manhattan
of N.
Bank
Trust
Bankers
Chemical
First
Bank__
3.00
Trust
3.00
1,280
6.25
1,295
14.00
4.94
298
91%
4.00
4.38
98
20V2
1.00
4.88
21 %
55
2.40
4.36
248
10.00
4.03
46%
2.00
4.32
103%
4.50
4.36
47%
Bank
80.00
2.25
4.76
•
Irving Trust
Trust
Manufacturers
Morgan, J. P.
National
....
;
—
City
.
New York Trust
1,210
States
United
———
Continental
•50
; 49%
104
First
-
Large
235
255
5.8 T
5.71
28%
family in emergencies and a: "The- petroleum industry in the
lf wel1 chosen' make some m<>ney- United States showed increases in
for you- But [t should be a m°d"^ demand, crude production, income
erate amount in relation to your- and dividends for' the first six
wh°le estate' and sh°uld carry iU ™nths of 1951 as compared with
V
Illinois-Chi.
88
4.00
4.55
943/4
86%
46
2.25
4.89
50
250
8.00
3.20
271
443/4
230
Chemical Bank
and two points.
gains of from two to five points have been recorded by
Trust, Corn Exchange, Hanover Bank and New York
Even larger gains have been established in some of the
National
Chase
and Bank of Manhattan
banks outside of New
reception
about one
York City only First
significant change in price during
past two weeks with a gain of about seven points.
First National of Boston has been trading around the current
National of Chicago shows any
the
price which is near the low for about a month. The announce¬
ment of Wednesday that the Bank will offer 375,000 additional
shares of stock on a basis of one new share for each five now
'
.
Restraints
..
Bombing?
„
not
you
such
.
to
sary
BROADWAY, NEW YORK 6,
N. Y.
*
Telephone: BArctay
-.
''.Bell
;
v
Manager Trading Dept.)
Specialist* in Bank Stock* ' "
(L. A. Gibbs,
~;V ':
7-3500
Teletype^-NY 1-1248-49
iarger
—
It depends.
may
In $18
cities there is a trend
decentralization
which
the
reach an all-time high of
billion compared with the
$15.3 billion for 1950. Net income
the group amounted to $999
is of
Now?— you are
likely to continue to have 0il products increased 12.8%. Al-
though crude oil prices remained
firm, domestic prices for refined
products during the first six
months of 1951 were 12.4% higher
than for the same period of the
previous year.
.
Cash dividends declared by the
30 oil companies on their common
stock
during
the
1951
period
amounted to $349 million, an in-
it,
—
Yes. We consider
on
I
investment that
a profit. If
Any
Buy
Now:
-—
Retail
Building?
Rates have already gone
*n many parts of the country
and, with increasing competition
for money between the government, municipalities, corporations,
an<* lending institutions, mortgage
money is likely to be scarcer and
cost more.
•
,
•
Don't' You Think That Real
Subsis- money.
in Case UP
of the Fol-
Duplex? Office
Business Prop-
ital expenditures are not available,
the Petroleum Department of the
Chase anticipates that the, com-
bined outlay for property, plant
and equipment should be substantially more during 1951 than the
$1,894 million spent by the 30
companies during 1950. This belief is based on estimates supplied
Estate Is Outstanding as an In- by several companies. As of July
vestment and as an Inflation 16, the Defense Production AdHedge? — The past record shows ministration had approved 124 rethat real estate values in general fining projects' for the-entire
follow the long-term inflationary industry for rapid tax amortiza-
ihvestment of nearly $600 million,
partnership.
Co., 25 Broad erty?
V
'
'
E. Y. Denham & Co.
Members New
120
Department * of
are
on
good kind of insurance—
Should
out" to be near the peak of the
be:" (1)
Members
you
property That Is Paying Me
toward
arrangements for your family
yourself to have- access to
a place in case of bombing,
boom.
York Stock Exchange
New York Curb Exchange,
Petroleum
Current 4 High'
No—unless
Service Station? —■ No — trend; but the rises come in spurts tion, representing a proposed
Street New Yor^ Citv-Members uriless there are very special cir- a*d there are long periods beff* wl
^umstances. This is a better time tween these inflation spurts when
With earnings substantially In
of the New-York StocK Exchange,
^ ^ink about selling, than buy- rea* estate does poorly. Remem- excess of dividends, only a few
on Sept. 13 will admit Leon Levy ing." Current high prices may turn ^er that to make money on real
companies are expected to require
Oppenheimer &
Laird, Bissell & Meeds
of
mid-year financial survey of
30 oil companies prepared by the
Sell My Home to Take
Q0od Return?
^g
later be sold at
lowing
Oppenheimer to Admit
STOCKS
sta-
do not wish to put money into
a purchase, make the neces-
and
BANK
a
necessarily
could
would give evidence
consolidation discussion were underway.
INSURANCE
a
,
this is
when any spectacular move
and
ness
locations,
"Should I Have a Small
of
by the
or
Hke period of 1950> according to
-
tence Place in the Country
such
merger
g
; the
three years; and most are renewed crease of 27.8% over the first half,
depends on at the same amount notwithstand- 0f 1950. This outlay represented
how bad your need is — costs are ing that values have soared since- some 35% of available earnings,
likely to be lower sometime ahead, the policy was first taken out.
; According to the survey, dividends
barring a total war, but your own
Do You Expect a Raise in Mort- for the entire year of 1951 should
living comfort may more than off- gage Rates in the Next 12 Months? be in excess of the $679 million
set the smallprice advantage you — Yes.
We look for greater dif- declared in 1950.
would gain by postponing.
ficulty
in obtaining
mortgage
Although actual figures for cap-
action of bank stocks
future merger moves
major New York City institutions. Most of them are now
that
service
as
retail
depressed.
be
Now?—Again
few months the market
will be watched for possible indications of
point
wood_
location in a smaller city or town, 0f 1950, while the demand for all
Over the next
the
or
crops>
growth.
few years than will be possible in 1950.
.
periods ahead when you will have
Crude production of the entireto do more renovating and mod- United States petroleum industry
ernizing to meet competition. If during the first half of 1951 inis true that if you have a good creased 20.2% over the like period
why the stock has not acted better
held, provides one reason
in the current market.
at
such
fringe
and
Will
ize
have reacted from
these shares attained after the favorable
given to the consolidation talks. Chase is lower by
point and Bank of Manhattan by over four points.
prices
Among the four
rents>
from
Should I Remodel and Modern-
higher priced issues
the
land
present home is costly or a good return, but rental business
inconvenient, or if you feel you property may be "peaking" both
should give your family a better in yield and in demand.
,
one,
regardless of present costs,
Should I Increase My Insurance
go ahead. But you should be able Coverage? — Many property ownto do much better later on, pos- ers do not carry enough insurance
sibly as early as in the next 18 to protect themselves adequately
months, if the war scare dimin- against loss by fire, etc., at today's
ishes. Certainly, do not build one inflated values.
Most fire insurnow to rent.
ance policies are renewed every
Bankers
Trust.
self
If your
25%
During the past two weeks, Public National,
National City have moved up between one
and
41
48%
1.60
_
for
of
yealr
ly, some areas may be recontrolled
and control might be extended to
certain
commercial locations. If
a downtrend in business develops,
restraints are more likely to be
92
28
National-Chicago.
months
y°ur
Some
values.
strengthen
Should I Build a Home
_
refuge
six
likely to continue for many years, million for the first six months .of
Real Estate Business may be growing away 1951, an increase of 41.5% over
Financing and New Construction, from you.
Looking ahead to a the first half of 1950. For the same
and Control of Rents, Get Worse lower volume
of business, some period, the combined gross operatin the Twelve Months Ahead?— retail outlets will be abandoned, ing income of $8,674 million was
Not unless we have World War III. You may have been enjoying a 23.6% greater than the amount re-If defense activity increases great- larger net income during the last ported for the first six months of
43%
.
—
National-Boston.
First
I
Ji:
City—
of America
Bank
a
first
Earnings for entire
may set all-lime high.
eased.
14.00
241
Trust
Banks Outside N. Y.
provide
vestments,
for
1951.
would serve to diversify your in-
Later, inflationary forces
market.
would
237
"
Public National
dends
remarks in
It
questions.
your home pr0perty on a long--throughout the remainder of the
the Effect of term basis rather than to try to year, according to the Bank, it is
World War III? — First impact trade in and out on the swings.
estimated that the gross operating
would be to deaden the real estate
Should I Sell My Rental Busi- income for the 30 oil companies
tions
83
267
production and consumption,
as higher income and divi¬
well
^
.18%:'
55%
/■
as
wjsh.
be
Would
What
-
278
.
my
you
Bank survey of
companies shows increases
and taxes.
creased costs
27%
323
283 %
National
Guaranty Trust
Hanover
>
2.27
67%
...
Low
340
4.44
132
Exchange.:
Empire
.
■
National
Chase
Corn
Fifth.-
Y. &
in
—4 if
previous
the
be
30 oil
Some Land With
with
in
Chase National
is
itself."
-Chase National Bank ! of New
be further increases in land prices, planning to sell it anyway within York. - The 30 companies comprisein
spite of already-high levels,
nex|. few yearS) or know you about two-thirds of the petroleum
except for rent-controlled proper- can
another to advantage. Ex- industry in the United States. '
ties which would suffer from in- perience shows it pays to carry
if present conditions hold
Current
N. Y. City Banks-
ties
two
Forecast at New Peak
coun-
section
Each
Industry
Earnings in 1951
must
which
counter to the
unto
parj. 0f My FUn^s?
ThiS
You
owner.
trends.
—
'
large banks in other cities.
run
Effect of
Should I
Further Inflation on Real Estate Advantage
Values? — Generally there would Prices?
Would
What
indicated annual dividend,
yield and price range for the year so far are!, shown
following tabulation of seventeen New York and four
price,
market
current
Petroleum
the energy and
on
Should I Own
an
because of changes in
the
"market
a
a
o
to
of
into local trends,
try-wide
>
The
management
success
is
passage
As
real estate
takes hard work and experience;
of a bill in ;
today substantially
no
of national and state
more
of
it
banks, is a good possibility.
At present, laws governing The
consolidation of national banks provide that dissenting stock-,
than there was
holders have the right of .appraisal and may receive cash equiva- *
thousands
ot
lent to their equity.^ This provision has. in a number of cases, ^
years ago and
there
will
be
prevented national banks from taking over state banks which .
<could otherwise have been merged.
Thus a law which would
R? more- a
eliminate this provision could provide a stimulus towards addi¬
; thousand years
tional mergers or consolidations.
7
<;
These factors have brought increased trading activity to the
ictfJTnatural
bank stock market.
The stocks which are likely candidates for
lw
lpJJc tn
mergers or consolidations have, in most cases, responded to these
Roarer W. Babson
ZJJtm
developments., Some institutional buying in selected issues has
tiiie
la
Tnnrn
'} also been noticeable. The result has been that there is consider¬
questions, and this is an approable variation
in the yields
available on the different issues
priate time to discuss them.
this
prosperity.
Furthermore,
cutting of timber exceeds the
present growth.
(3)
opened;
timber lands.
growing
is fixed. There
ones.
In
during
the
investment.
as
being
ap¬
which grow during depressions as
Predicts, on the whole, real estate
inflation, but warns of difficulties
year.
and risks in
tention towards bank stocks during the past
thr*
.was the
coming
This especially
plies to well-protected woodlands
ijeal estate
values will follow trends of
This Week—Bank Stocks
A
queries regarding prospects of
answers
success¬
However, if wisely chosen,
moderate
amount, and if you
"keep after it," real estate can do
By ROGER W. BABSON*
JOHNSON
By H. E.
investment
17
LOGANSPORT,
Y. Denham has
Indi —Eugene
formed E. Y. Den-
live
-
in
Possible
a
part
the securities business:
'
-
it
and
obtain ina
the new major
onri
ham and fnmnans ixritW-nffiepc nt«
Company with offices at
to engage in
of
might
if you plan to
the other part;. (2)
sfrviGe statioh at a ^trategic locacom^ from
v»om
,1101 East Broadway,
exceptions
duplex
.
*A talk
by Mr. Babson at the Babson
estate it must be bought like funds from outside sources for fi-
stocks, when cheap. The hazards nancing capital expenditures in
in real estate ownership that must 1951. Present indications are that,
be me* are: (1) location trends; commitments have been - made
(2) adverse phases of the building since the first of the year to borcycle;
_
(3)
too high original cost;
_
j^Qj.ai
bodies,
row
more
than $200 million from
lack of banks and insurance companies.
in
governing Actual borrowings bv the 30 oil
by
principles
covprnino
tenants, etc.; (6) lack of companies during 1950 amounted
tax 'injustices;
personal
energy
(5)
and
ability
to to $152 million.
18
(874)
The Commercial and Financial Chronicle
Quinby Co. Opens
ROCHESTER,
N.
Y.—H.
Business
Walter
as
of Purchas¬
decline in industrial production in July and
August exceeded anticipations. Says buying policy is
Comparative Transportation Ratios
To
company's new
W ilmington
office
at
407
indications
Delaware
Avenue.,
Heed, a
long-time res¬
i
rn
of
n
g
was
the
wa¬
In
f
Walter
the
R.
Heed
After serving
the Navy.
in both the Atlantic and
he was released to in¬
active duty in 1946 with the rank
sea
of Lieutenant-Commander
Boston
invited
to
of the Bond Club of
Day
have
Day
feature
this year,
Arrange¬
on
in
the
<
because of the out-of-
a
not
in
feasible
to
factors
to
be
considered
of
months.
the
Winches¬
ter
Repeating
Arms
Com¬
New
Haven, Conn.,
gives indica¬
pany,
tion
that
Many
slide-off
short
of
industrial
been
Robert
than
had
months.
Stetson,
partner
modestly. In other words,
absorbing a smaller share of each rev¬
they were last year. As is usual in
than
were
and ten of those that
up
were
down showed
closely by Western Pacific.
Cuts in their transportation
C.
Swanton
4.7
and
4.1
points, respectively.
Line, Great Northern
,
4
....
(
y,
and
•
.
.
Chicago &
'
•
orders
Production has
been
ventories
with
step
in
about
the
lowering of new
production, and con¬
tinued conforming inventory ad¬
justments are planned.
business and
The
is confused by the
says,
and OPS
new
regulations but is
law
on
the
soft side. Employment is high, but
labor unrest is spreading. Buying
policy
is
ranSe-
'
Next in line
Eastern
find
rise,
in
are
Neither
evidence
43.0
46.1
43.9
33.9
33.1
+0.8
the
numerous
36.3
37.0
—0.7
ers,
rather than
38.1
41.1
—3.0
32.3
25 Broad Street
of
New York 4, N. Y.
+0.6
39.2
38.0
38.0
40.5
—2.5
45.8
45.2
+0.6
Rock
&
Island
&
Pacific.
Hudson
__
__
_
...
&
„
Western
__
32.7
_
+ 2.2
.
+ 1.2
v
37.4
41.1
—4.7
,
41.3
40.4
30.6
-
—0.2
—3.4
32.3
37.0
in
of
the
mark
of
reduc¬
allocations.'
;
Commodity Changes
"ups,"
the
trend
inventory
'"downs,"
many
August commodity
re¬
ports. No definite future trend in
either direction is indicated.
Higher in price were: Bearings,
these
survey,
bust,
a
—1.7
such
optimism
as
is
business
forecast¬
Commodity
Prices
price structure.
Buyers
believe that many price increases
in
lished
residence
37.3
+0.6
pated rollbacks have been little in
29.9
—0.3
evidence,
as
of
producers await clar¬
Lehigh Valley
40.0
41.6
—1.6
ification
38.5
40.2
—1.7
new
42.6
46.2
—3.6
38.0
36.9
+1.1
39.3 :
—0.4
mand
31.6
+ 1.3
sidered
+0.4
create
an
uneasy
market situation.
Minneapolis, St. Paul & S. S. Marie___
Missouri-Kansas-Texas
__
Missouri
New
Pacific
38.9
Orleans, Texas & Mexico
New
York
New
York, Chicago & St. Louis...
York, New Haven & Hartford
Central
47.1
■
&
V
32.9
__
:
.
;
35.5
33.1
'+
43.6
Western
46.7
30.1
42.3
'
+ 2.4
together,
42.1
—2/3
44.5
—0.2
August,
—0.1
month
duction
St.
Louis
Francisco.
Seaboard Air Line
.
Southern Pacific
Southern
&
and
38.0
—0.5
31.2
—0.1
shortages,
35.3
—1.3
demand
declined
stock
cutbacks
reductions.
the
and
principal
37.9
+0.5
The
36.3
—0.8
CMP
has
—2.3
—was
not expected to be.
33.2
35.5
35.8
Virginian
:
Wabash
-
21,9
::
+
,,
35.7
+ 0.1
23.5
—1.6
40.8
_
__
;
.42.1
31.3
__
31.3
28.1
32.2
—T.I
39.2
—0.4
38.8
.
—1.3
first
been
quarter
allotments
be
Pro¬
very
lower
causes.
quarterly period
not
in
material
to
regulations
are
again
consecutive
due
a
Army,
has
and
S.
estab¬
in
Oklahoma
served at the, time
instructor to the 45th
Division,
National Guard.
Establishment of Col. Crehan's
Oklahoma
office
own
was
previously *
re¬
ported in the "Chronicle" of
Aug.
i6.
;+'•+ ;+
Paine, Webber
(Special to The Financial
Chronicle)
38.4
Pacific
1947,
Two With
fourth
Crehan,
cautious
35.5
,
Union Pacific
Class I
of
34.0
__
_
__
the
.
31.1
_
Railway
Western Maryland
Western Pacific
Inventories
37.5
Southwestern
factors
Col.
officer in the U.
City where he
as
Inventories
39.5
'
these
securities.
career
'
—1.4
40.6
on
Uncon¬
continue to sag, as supply and de¬
seek a buying level.
Con¬
44.3
40.5
regulations
structures.
trolled commodities and soft goods
+ 1.3
;
31.5
the
pricing
—
&
Reed,
Inc.,
announces
the
opening of his office at 1108 Colcord Building, to deal in
invest¬
retired
29.6
Okla.
John Patrick Crehan, U. S.
Army,
retired, formerly manager of the
Oklahoma Division, for Waddell
ment
37.9
Nashville
Opens Own Office
being held back by lack of
demand and keen competition for
the
available
business.
Antici¬
are
City
Southern
Col. John P. Grehan
OKLAHOMA, CITY,
The effect of the latest regula¬
tions on price formulas is not
apparent in the current industrial
materials
zinc.
currently fa¬
on
Central
Members Nat'l Assn. Securities
Dealers, Inc.
few
current
a
found in the August reports seems
to be based on the
expectations pf
—1.2
St. Louis-San
Telephone BOwling Green 9-6400
Specific
A
+ 1.1
45.5
_
Reading
$).
tion, and CMP
vorable factors.
33.4
ing
-—2.2
47.5
Texas
%
the
table
45.7
44.3
Norfolk
x/fw/bfi all*
to
business,
,
commitments.
Pennsylvania
jdco
geared
slow
Reported down: Alcohol, used
pickup in fall business would cars, babbitt, brass mill scrap,
August inventories on the clothing, packaging, burlap, cot¬
with lengthening forward ton bags, cotton linters, electrical
brisk
Northern Pacific
TimeM
August purchasing cov¬
is conservatively
Buying
.
anticipation
Illinois
48.1
New
at all
in
erage.
steel.
'
.•
Normally,
Louisville &
department of L. F. Rothschild &
Co., 120 Broadway, New York
Selected Situations
commit¬
being reduced to the cornstarch, fuels, grinding
wheels,
possible procurement machine tools, nickel, high speed
shortest
Kansas
Dudley A. Anderson, Sidney W.
Farnsworth, Jr., and Walter W.
Hess, Jr., have joined the sales
;
future
ments has narrowed
somewhat in
the last two months. The
predom¬
inant policy has a
price situation, the report
Illinois
SECURITIES
of
range
However, flected
factors.
declining
are
43.0
of
Great Northern
With L. F. Rothschild
RAILROAD
The
for three, but does not
90-day limit,
yet match the drop-off of new with 65% of these within
the 60orders. There is still a sizable gap day bracket. The
much-talked-of
between
these
two
important upswing in fall business is not re¬
43.5
Georgia....,
Gulf, Mobile & Ohio.
Specialists in
stoppages may
•
Maine
of
RR.
Denver & Rio Grande Western.
Erie
in
City, members of the New York
Stock Exchange. ,+
+V.■ V,/•,+>/■
'
reported.
Buying Policy
of
steady decline for
a
are
appliances,
sugar,
hides
and
leather, lumber, mercury, vege¬
and inventory and material con¬
oils, wastepaper, rosin, soap,
each of which was able to cut three or more
points from its ratio.
trols may be partially responsible. tallow, textiles, tin.
In scarce supply:
Any sharp increase in the fourth
Heavy acids,
TRANSPORTATION RATIOS
bearings, brass and
Quarter, of civilian and defense aluminum,
First Half Year.
brass scrap, steel,
demand,
could
create
a
wild
castings, chlo¬
1951
'
1950
Change scramble for
cobalt,
copper, r electrical
materials; .interna¬ rine,
Atchison, Topeka & Santa Fe_
33.1%
33.1%
tional events or defense plans can equipment,
forgings,
pig
iron,
Atlantic Coast Line
37.2
38.7
—T.5
change the picture. While pur¬ lead, plywood, nails, nickel, kraft
Baltimore & Ohio
40.6
41.3
—0.7
paper, pipe, sulphur, tin, wire,
chasing executives are not expect¬
Boston
Soo
to
Delaware, Lackawanna
J. & W. Seligman & Co.
-
demand.
Many
small wildcat strikes
Several large work
be imminent.
July
August
now
in
are
plants are running
time, due to lack of orders
during
manufacturing
were
year
workers
more
and
six
in¬
-
materials.
The undercurrent
of labor unrest is
stronger.
purchased industrial materials in¬
dollar this
*
and
production
sharper
putting
further
expanding defense plants where
skilled
expected
has
are
on
Employment
in
the
dropping
performance in 1950.
own
managers
pressure
Total industrial
employment has
maintained
high levels for ,4 the
past
three
months.. In ,
August,
there were
many
more
payroll
separations than in
any
month
since March, 1950.
However, most
of these have found
employment
have
Delaware
Jr., who will hold the firm's ex¬
change membership.
Charles P.
been
borne
is
Chicago,
Street, New York
Partners will be Charles P.
has
be
it
year.
mind
with that of another individual
seasonal
many
____
at 60 East 42nd
Stetson
nature
six months
preceding
New Jersey.
Chesapeake & Ohio
^
Chicago, Burlington & Quincy
Chicago, & Eastern Illinois
Chicago Great Western
Chicago, Milwaukee, St. Paul & Pacific
Chicago & North Western.
Stetson & Co., members of the
New York Stock Exchange, will
be formed on Sept. 17 with offices
W.
too
are
should
it
this
the
Nevertheless, the interim figures are of
indicating how the individual road is doing this year
Central
Formed in New York
Eugene
of
of
of
Purchases
winter
Central
Stetson & Co. to Be
and
tabulation
period
for the first
period
inventory
extreme
Purchasing ventory liquidation.
previously
anticipated. Backlogs
&
Stetson
being
,
attendance
.town guests, is expected to set an
all-time high.
City.
this
whole
a
like
Director
industry.
Some railroads normally make all of their
in the last half year while others have their best season
the
were
rence
Stevens, Hemphill, Noyes,
Graham, Parsons & Co., Chairman
the
as
the
compare the ratio of one railroad
carrier—there
ratios amounted
The affair will wind up with a
dinner and entertainment. Law¬
that
with
interim
an
followed
tournaments.
Committee
carriers
with
Nickel Plate. and Central Railroad of New
Jersey. \
On the other side of the
picture there were nine roads that
cut their transportation ratios
by more than two points and an¬
other nine that cut their ratios between one and
two points. The
best relative showing was that of Denver &
Rio Grande Western,
bridge and backgammon
said
I
changes of less than one point. There were, then, 25 that re¬
ported changes of a point of more. Of these, seven were ad¬
versely affected by current conditions, having had an increase in
transportation ratios. The two poorest comparative records were
program.
Mr. Marcus
said that the program also would
the
for
of those that
day's
ments,
seems
following list three had trans¬
portation ratios unchanged from a year earlier, 14
reported
higher ratios, and 28 had lower ratios in the 1951 interim. Seven
been
Markus, Smith, Barney & Co.,
President, announced.
Their presence, he added, would
lend an inter-city atmosphere to
the Club's annual golf and tennis
pf
the
Of the 45 roads covered in the
be held Sept. 21 at the Philmont Country Club, Norbert W.
include
in
industry, the record of the individual roads varied greatly.
one of the reasons
why it is impossible to speak of rail¬
roads as a single investment
problem.
to
the
costs
This is
York/
Field
will
transportation
of
Agents, whose Chairman is Robert
C.
Swanton,
;
trans¬
the
Philadelphia,
which
of
Association
transportation costs
New
the
attend
tournaments
of
major
Class
connection
that
enue
Pa.—Invest¬
Baltimore
and
is .the trend
Survey Committee of the Na¬
tional
Although there has been much said about the inability of
the carriers this year to absorb the increased labor costs
it will
be noted that for the Class I carriers as a whole
the transportation
ratio for the six months was off
Phila. Bond CM
from
importance
in comparison with its
1946 and July of this year.
PHILADELPHIA,
it
compared
value in
tising and sales promotion in the
du Pont company between early
To Hold Held
the
the
of
In
in
various positions in adver¬
bankers
of
1951
money
His civilian business experience
ment
lines
are not, as are maintenance expenses, subject to
inflation to conform to management whims.''
of
immediately
Pacific,
covers
these
ness
as
they
or
for the
and
University of
Pennsylvania and
jj&t
The August report of the Busi¬
uncertainty does exist
to us that a comparison of the per¬
railroads in the current year should be
of value to those interested in railroad securities.
In the tabula¬
tion below we show transportation ratios for 45 individual roads
Wharton
entered
along
progress
picture
formance
the
of
of
view
railroad
1940
from
School
traffic
scrimping
t o n
gradu¬
in
ated
degree what
portation costs in relation to gross.
For one thing, the trans¬
portation costs represent 50%, or more, of all operating expenses.
Secondly, as they represent the actual cost of handling and moving
-
Mr.
ident
considerable
a
to
the future status of railroad securities centers around the
ability
,of the industry to offset, through operating economies, the impact
of increased wages and fuel and material costs. One of the best
of the
ager
says
reduced to shortest possible procurement
range.
R.
man-
Steady Decline
Survey Committee of National Association
ing Agents
Dean
Quinby, Jr., President of Quinby
& Co., Inc., of
Rochester, N. Y.,
has announced the appointment of
Heed
Thursday, September 6, 1951
.
Business Order Backlog on a
Delaware Branch
1
..
under
helpful
Fourth-
LOS
ANGELES,
Calif. —Rob¬
ert J. Hoffman and
Frank T. Mit-
tauer
with
have
become
Paine,
Curtis, 626
South
Mr. Hoffman
was
Spring
with
Francis
&
Street.
previously with
Hill Richards & Co.
was
associated
Webber, Jackson
I.
Mr. Mittauer
du
Pont
8c
realistic.
more
months
present
possible
buying
are
hoped
to
Viewing the six
of
falling
orders,
the
pricing fji confusion, and a
unfavorable
reaction
agreement
is
if
a
reached
Co.
A. W. Morris
A.
W.
consumer
ceace-fire Morris
in
Morris, partner
&
of A.
W.
Co., Los Angeles, Cali¬
Korea, fornia, passed
away on
Aug. 22.
Number 5044
Volume 174
.
.
.
The Commercial and
the exact addresses and
When
What to Do About
By E. LAFAYETTE
QUIRIN*
signature
of
natures
;
.It
is wise
into
four
divide
to
category,
first
The
largest
the
and
funds
idle
categories.
in
amount, could be least accessible
but
most pro-
ductive
in
terms of tem¬
earn¬
porary
ing
be
such
in
E. Lafayette
places and
;;
;
different securities. In this
Quirin
respect
to consider that one
hold funds idle without neces¬
is
can
proper
sarily counting on the entire
value of the fund being available
or
needed
at
once
in the emer¬
For instance, Europeans
Russians, who mostly used
gency.
and ;
help them
and Com¬
munist gangs, quickly discarded
the thought of obtaining absolute¬
ly full value when converting
such jewel funds into transpor¬
tation and livelihood. In still an¬
jewels and diamonds to
escape from the Nazis
type
other
of
emergency
once.
you
all the funds at
would not need
,
,
funds which
.There are some
must
remain idle
without
any
shrinkage of the dollar
amount. If you can afford some
loss in principal, though not much,
possible
then you can buy some
convert¬
convertible preferreds,.though there are very few.
In doing so, some of these should
be r listed on a Stock Exchange
and others not listed. Securities
that
are
known
by over-thecounter brokers might easily be
disposed of when others, traded
on
the Stock Exchange, might
suffer more if the Stock Exchange
were closed. If you do not wish
to suffer any loss in dollar value
you can place funds in various
Savings Banks. Do not confuse a
ible
bonds
bank.
your wife, the
tell the children. Ad-
and
to you
pens
friend
can
bank
each
note of his
name.
and
That may
the
what
and
be
must
records
date
to
sure
say.
You
those
rec-
funds, then one can rely on having sufficient time to liquidate
the invested funds before a new
need
to arise for cash.
were
The
well offer new and
attractive opportunities, especially
1952
year
may
the Federal Government's refrom income taxes in the
fiscal year beginning July, 1952
if
ceipts
later.
vaults
and
under¬ problem concerning both the locaground safety boxes. Some distant tion of funds and the evidences of
Each factor must be
banks whose managements have ownership.
derground
receipts,
'.
;
been
confidentially
investigated considered in relation to yourself,
get rid of $20 or will be •mentioned to those who your family and your habits.
Elsesser Named by
desire them.
Business and Idle Funds
Customers' Brokers
Should You Have Idle Funds?
Although the subject .of idle
frequent occasions one funds is not appealing to most
events
reconsider
whether
some business and investors
On fairly
must
inflation by gov-
a new
ernment deficits might develop,
Petbody Tco f hU'be^nomfthe
better than
half
or
Savings De¬
partment of a Trust Company
with deposits in the Federal Sav¬
ings and Loan Association. We
Savings Bank
or
consider that in a
a
time of emer¬
some
funds
With this in
fourth
category of idle
be in
diamonds
has
been
made.
In
a
discussion
of
Funds
mind, it is important About Idle
to resolve that
plain jewelry avoided
18 carat gold or
idle
"What
to
Do
in
1952?", the
the
business
of
temptation will be circumstances
suddenly boom, heavy inventories and high
would
that
freeze the idle funds. For instance,
prices
for
stocks
attention.
bonds de¬
and
for
the
Presidency of the
1951-
1952 term.
Annual elec¬
tion
solid
serve
din¬
and
ner
-
of
•
the
Businessmen who
silver. Remember
square
-
the decision to hold funds idle, is
adjoining states should be con¬
likely to be weak enough also to
sidered in addition to one in your
fail to undo the error. Hence the
own
state.s For those who are
way to keep funds idle is to keep
particularly prudent, savings de¬
them idle and immediately avail¬
posits in still other and more dis¬
able.
~
tant banks can also be considered;
Now, where or how is this to be
the banking can be done by mail
done. It is wise to reconsider fre¬
directly or through the agency of
quently not only where to keep the
your local bank.
Even relatively funds but also where to keep sep¬
small amounts in distant banks
arately your evidences of owner¬
could become remarkably handy
ship of such funds. This is a very
in case of an emergency.
important point. The evidence of
This applies to your checking
ownership, of course, is a written
accounts also. To have at least one
record.
For unregistered bonds
alternate out-of-State bank in an
only you have such a record. The
area safe from bombing is
wise.
_
In this area we are near
This
offers
still
Canada.
another type of
bought
them might supply the informa¬
tion.
Unless you were alive to
initiate tracing the numbers of
destroyed unregistered bonds it is
not sure that your executors and
broker
from
whom
you
pin- in idlethe part is already beThus funds of one's assets
held
coming more
idle
funds
important than such
seemed to
be hereto-
investment
and real
estate profits will be
more difficult to make henceforth
than in the last decade. With idle
funds available in 1952 there will
be more opportunities than in 1951
as some properties, businesses and
investments are offered for sale at
relatively low prices compared
with the high hopes of last winter.
On another point also, idle
Also,
fore.
1952
will
This
applies
in
funds
portant.
business,
be
more
to
.
■
Abraham & Co.
Joseph Cabb]
Albert
F.
Frank,"'Ladenburg,
Thalmann & Co.
...
_
,
.
.
sJ?*e ^as submitted by the
Nominating Committee, composed
SS
Vogel, Secretary. Edgar
Ehrenthal; Frank Saline, James
Leopold & Co.; Adrien FrankSeligman, Loibetkin & Co»»
.
Pen-
f
dlet°n> James Hughes,
Newlin Director
im¬
people
The White Motor Co. of
Cleve¬
liabilities to land announces the election of
boom in business E. M. Newlin of Philadelphia as a
and
diminishes, one's director.
He succeeds Maynard
liabilities loom larger and more H.
Murch, Cleveland, who redifficult to meet. Thus, idle funds
wrn be much more pleasant to cently
as a
who
have
financial
the
securities
settle.
As
or serious depression, de¬ alternate locale and further di¬
positors in Federal Savings and versification as to governmental
Loan Associations might have to
controls. However, the complica¬
wait a long time to get their
tions
of inheritance and estate
heirs would
be aware of your
funds. Of course, there are also
matters at one's death are offset¬
contemplate,
government bonds; and a good ting detractions to placing funds ownership of them. Ownership of
such coupon bonds might be re¬
part of one's idle funds naturally in Canada.
Idle Funds Kept in Securities
corded at the point of collection
has to go in this type of security
With whom to impart the secret
Aside from having some of the
of the last coupon. The thought to
because it is the biggest single
of your hiding places for cash is
funds in cash, commercial
bear in mind is that if you do not idle
and uniform type of investment
important, but not too vital, since
bank
checking account, and in
keep good records and valid evi¬
today.
the amounts are presumably not
dence of your ownership of idle savings banks, one can also conThe next category should be in very large.
However, the places
funds you' may be considerably sider as an additional backlog such
checking accounts. These can be should not be written down except
funds as are invested in municipal
upset in time of need and finan¬
of fairly substantial
size. They when at your safety deposit box,
other high-grade bonds,
cially incapacitated for the emerg¬ bonds,
will not bear any interest, and and then the slip should be stuck
and in reasonably priced convertency you had in mind when and
considering the Federal Deposit inside the box with scotch tape or
ible preferred issues. The advanif it arises.
/,x::
Insurance System, should be pret¬ with the gummed flap of an un¬
If you wish to be especially pru¬ tage of having a small portion in
ty well protected if your checking used envelope. This is to prevent
dent regarding your records you the last mentioned type of securaccounts are at member banks.
your accidentally removing it and
ity is to add considerably to the
can buy a photo copying machine
The third category of idle funds losing it.
such as are sold for moderate of¬ yield and profit potential of the
should consist of cash. This can
Finally, since the larger savings fice use. Their cost varies from idle fund portion, offsetting the
be in smaller amounts than the
deposits
and checking account $50 to $100. This gives you du¬ lack of income from cash and
checking accounts and should be funds are for an emergency or
plicates of your records so that checking accounts. Of course, that
in both paper money and hard for later investment, be sure you
your personal records can be kept portion of the funds invested in
coin. The paper money denomina- can reach them, either personally
in duplicate at your office, or your municipals, high-grade bonds and
*A talk by Mr. Quirin at the Babson or by mail.
This means that you office records at home. This is a good convertible preferreds is not
so
immediately-available as the
Summer Business Conferences, New Bos¬
must keep a record at home of good protection in case of fire,
ton, N. H., August 31, 1951.
gency
for
Association is that a an investor who follows the stock
refused to accumulate heavy in¬
to be held at <
of solid silver market too closely might resolve
ventories last winter have been Miller's
Res¬
would give you about 2 times the today to have some funds idle for
144
value
per troy ounce that
you a specific emergency, but a few enjoying a considerable amount of taurant,
freedom
from
worry
in noting Fulton Street,
from now might suddenly
have in silver coin. On the other days
that their idle funds have not suf¬
New York,
hand, it doubtless would be less find himself with the temptation
Wednesday,
to buy a stock which seemed to be fered loss in value, such as some
acceptable in trade. .
at
places.
Looking back on inventories have. Moreover, some Sept.; 19,
No\v as to each of these four going
of the idle funds have been yield¬ 4 p.m.
*
categories of idle funds: the larger types of errors which people make,
N o minees
this is probably the most frequent ing at least a little income. As to
part
in securities and Savings
Banks and bearing income;
the one. The investor says to himself, common stocks, a broad average for other ofAlfred Elsesser
of
stock
prices
including
all ficerships and
next larger part, bearing no in¬ "Of course these are idle funds
and for a special emergency, but groups
and
speculative
issues members of
come, in checking accounts; then
shows
very
little gain in the the Executive Committee are as
the cash; and then the jewels. Each the need won't be within the next
three weeks, consequently I course of the last 12 months. This follows:
category should be divided into
shouldn't miss this fleeting oppor¬ is notably so in the motors, the
Vice-President: Marshall Dunn,
parts and placed in more than one
rails and the utilities.
Wood Struthers & Co.
locality. By choosing more than tunity." A call to the broker and
It should be
emphasized that
funds
are
Treasurer:
T.
Alvah
Cowen,
suddenly frozen.
one
bank for deposit and safety the
topic did not involve the Peter P. McDermott & Co.
But they need not be frozen even this
boxes, and in different localities,
Secretary: William Specht, Hay,
this supplies you with choices of then if the investor who has sud¬ question of keeping all funds idle,
but only a fair portion of funds to Fales & Co.
locality
when withdrawals
be¬ denly become a speculator in this
insure one's ability to grasp op¬
Executive Committee (term ex¬
decides at the time of
come
necessary. It permits a respect,
portunities in business and invest¬ piring 1955):
greater privacy in your action. purchase that he will sell with a
ments when and as they appear, or
Nicholas Novak, Drysdale & Co.
But keep your safety box keys gain or loss on a specific date. In
case
of an
emergency.
The
Edward
other words, the error in principle in
Strong Wilson, Reyconstantly
at hand. Remember
of having succumbed to the temp¬ larger part of one's assets should nojtfs &
that Savings Banks, as well as
tation to buy the stock or invest remain at work. Up to last win^Nicholas E. Crane, Dean Witter
Trust Companies, are under the
the funds on a temporary basis, ter the holding of some funds idle & £0
supervision of state governments.
Walton
that error can be mitigated and meant a gradual loss of purchasFerguson,
Cyrus J.
The
decision of a Governor to
ing
power
as
commodity and Lawrence & Sons.
close all banks in a state can completely erased if courageous
action is subsequently taken. How¬ security prices were rising. Since
(T
expiring 1952):
happen in an emergency in such
Daniel F
Da^SOn, Ha yd en,
a
person whose
character then however, there has been no
a
state. Consequently convenient ever,
was weak enough to deviate from loss in purchasing power and some
gtone & q0
bank and safety deposit boxes in
or
different
it
packed
as
simple
each
of
be
The
distributing
category
that
amount of immediately available
of you may funds should remain idle. We are of 1951 so far have justified the
interested to know that dimes assuming that the decision to have policy of having some funds idle.
funds should
for this by
part
at
However, if
a
sufficient
savings banks.
plans to have
nated
Allow
funds.
one
Association of Customers' Brokers
these
of
and
in your
ords, otherwise your executors and are to be much lower as a result
As to choices of nearby banks, heirs may be uselessly confused as of lower business profits from now
With government spending
we
leave that to you, but have to the exact status of your idle on.
Thus there is a two-fold then at a n,ew high, and low tax
one of them be a bank with un-, funds.
denominations. On the
other hand, the $1 bills are of too
low purchasing power. Unfortu¬
nately, as to hard cash the only
convenient amounts are half dol¬
about
c'ashing-in
part
a
of
be very handy
dollars.
minor
risk
not live
various sig¬ vising a friend that you keep recgiven to each bank. ords and where does not mean
yourself known
to telling him the details or amounts
official
keep
higher
can
rela¬
some
does
portion in cash, checking accounts
close
a
be
could
tively
who
friend
of these de¬
tell
to
lars and dimes. Some
power.
There
make
some
$5 and $2's.
emergency it might
difficult to
be
was
Also,
tions should be $10,
In case of an
also
which sample of your
funds into four categories, viz: (1)
cash in savings banks; (2) checking accounts; (3) actual
cash; and (4) plain jewelry, diamonds or solid silver in safety
vaults.
Warns against temptations to speculate with idle
funds, but advises holding backlog of municipal, government
j and other high grade bonds and reasonably priced preferred
stocks. Points out value of idle funds to business concerns.
V
wise
is
It
con¬
a
Otherwise you might easily forget
Babson's Reports, Inc.
Mr. Quirin divides idle
<
but not in case of an atomic bomb,
amounts.
carry
posit places with you, and a spare neighborhood that you keep such
pocket check book of an alternate e v i d e n c e.ps of ownership, and
bank, with a code as to your man¬ where. Thus, if something hapner
Director of Research,
travel,
you
densed record of part
Idle Funds in 1952
19
(875)
Financial Chronicle
dlrefor-
redSned
the
Mr. Newlin, a graduate of
Massachusetts
Institute of Tech-
associated with
nology, has been
H. M. Byllesby and Co., Inc., of
which he is a Vice-President and
a director since 1921.
^ ,
He is a director and Chairman
of the Executive Committee of
Air Associates, Inc., and was a
director and* Chairman of the
Executive Committee of Sterling
Motor Truck Co., Inc., which was
recently acquired by the White
Motor Co.
i
1
J
With Shaver, Cook
(Special to The Financial
ST.
Chronicle)
PETERSBURG, Fla.
—
Wil-
liam O. Babb and Floyd N. Shaver
have been added to the staff of
Shaver, Cook &,
Grobert, Florida
Theatre Building.
{
£0
(876)
The Commercial and Financial
Chronicle
Can't
Canadian Securities
.
asmuch
iiOted in these columns
security exchanges and for
1351
f bfe ™dSsurrintLbden
cording to
a
■Canadian
British
tion
Press
from
to
dators
the
strength
the
on
agreed
1boom
of
widely
Canadian
nSn' 13
Pa-
q
Canadian
,
Tilfl
Lif/hp«;t
lo+tpr
fhi
mintntinn
the
to
Timp«"
"Fi-
the
demand
for
described
was
"gone through the
hevond"
rhrnnicle"
roof
The London "News
also
has
investors
jnanv
to
the
London
securities
ha vine
4?i/i
vear
-
-Arrnrdinff
Canadian
Pacific
from
vpar
backing
are
view that Canada
is
that
noted
Canadian
Stock
the Lon-
is
sharp
that
view
whica.
in
criticism
more
taxation
the
should
that
long haul the
railroad traffic,
ment
a
profitable
This year, it is expected that
it
burden
expropriated
income
over
have taken place.
the tax on.
incomes
and
the
more
studies
should
limitations.
furnish
to
These
exact
no
basis
<WOuld yield
the
a
it
year
less than $1 billion
of
undoubted
taxation
at
present
group' of
every
vindicates
taxes
the
the
of
have
almost
and
been
relying
"All
.
.
-
and Edmonton, now 125
57/6:
Canadian
Lumber, 72/9
International
against
Western
41/9;
and
g° p ln
1' year-
.The upward ™
dian: stockss is: attributedI
by Brit-
ish financial commentatoib
+*.
cfirvniiia+mtf
m
paitly
infinonrp
of
iron
h! ^r
"Given
vest
month of good har-
a
weather,
11 000 000
farmers
bushels
will
come
year's
oron
was
2?Se
rapidly bought
also
Those
about 12%
over
Trvr™tn
p
Tn
fhp
1
nf
nrpm
Undon
"This
said
427 000
Study
because
to
an
he
moment
sells
«:urity he is
-the
proceeds
a
bound
to
Canadian
to
turn
to
over
f
.
canafhan
exchange control
di
PaHfir
epnlir««pQ nf
A'
off the
interestiree loan raised in Canada
during
pay
'
in
seller's
a
variety of
ways toward a short-
versity
Grad-
^
Francis
rftffftTV
X.
Dr.
Coleman has joined
Son
Street,
on
York
Man¬
as
of
upon
G H
COIltl/Ol
L
Ernest
M.
rented
Coleman
and
apartments
in
a
Municipal
beenwith
tain market
Gran b.ery,
alization
Marache
Corporation
tends
Co.-
&
arid
was
President
the
of
Francis
X.
SARASOTA, Fla.
_
...
is
with
A
ono
0
203
f
1-1045
—
M
'
~
New York 5, IN. Y.
.,
|
Henry N.
w
Kidder
_.t
&
'
a
-
Joins John Kinnard
(Speciai to the financial
chronicle)
Fifty Congress Street
Boston 9, Mass.
MINNEAPOLIS
R. Brenne has
Tnu
nn
n
u.
Arcade.
Minn
ioiked
in
easily
in
Duane
the staff of
w
~r% • ' rji
Kinnard & Co., 71 -r. i
Baker
FHA-in-
each
for
liberal
more
income
existing
credit
terms
7
$7,000 in 1940 and
existing
1938
$2,000-$2,499
Borrowed $878
ers
actually
of
new
25
years
has
had
paid
true
income
is
new
more.
average price
single
a
and
under
groups
exception
1940.
number
same
eral
of
homes
of
about
price and quality/
the
more
lib-
credit
probably raises housstandards, Dr. Fisher con-
eludes.
such
But
in
traction
of
the
is restricted
ally
seller's
a
prevailed
as
after
con-
seller visu¬
sales
terms, more
liberal credit is
likely to be absorbed in price with
probably a
reduction in housing
standards, he
■K'&'V;;
Further
evidence
of
this
ten-
dency appeared with the liberalization of the
partially guaranteed
GI home
mortgages, he notes. The
maximum
amount
Administration
guarantee
lieu
of
a
in
creased
the
Veterans'
and
$6,111
the
creases
and
those
to
in
payment,
of
1945
of
to
in
31%
1947
^
was
paid
the
non-insured
was
are
no
accommoda¬
ordinarily
the
last
to
New
York,
dollar
income
after
difference
rental
income
1941,
between
and
declined
the
the;
actual
scheduled
consistently for:
buildings
all classes of
apartment
with
and
average
monthly rents of $30
Dr.
over,
Fisher notes.
Apartment
buildings
with
monthly rents averaging under
$30 showed an increase in this'
difference during 1942 and
1943,
but later it declined..
Perhaps be¬
the
cause
industrial
late
boom
in
the
came
program, the measure of
vacancy
by dollar value rose from
7% in1939
to
9.3%
in
to
1.1%
declined
1941
and
in
then
1945.
In
Macon, Ga.,
and Tacoma,
Wash./
this measure fell to
1.3 and
respectively,
to
zero
in
2.1%,
virtually
1941 and
in 1942.
$5,985
1947.
in
were
in
greater
recorded
mortgages, yet there
evidence
of
a
difference
defines
characteristics
property
in
provements
urban
and
of
real
discusses the
.are
the
of private
land
and
im¬
describes the in¬
estate
market
bought,
finance.
in
sold
whiclv
or
ex¬
and studies the
means for
Other
sections
market
for
are
devoted
residential
market
types of land and
Housing
for
to
lease¬
investment
and
miscellaneous
improvements.
leasing experiments
by limited dividend
corporations,
foundations
and
life
of
than
study
economic
in commercial
and residential fees
and the markets
for
in-
mortgages,
Fisher's
holds, the
last
and
Described
Dr.
-
1946
The
1946
Economic Characteristics of
Urban'
Real Estate
Markets Are
the
in-
■
defense
financing home ownership.
in-
If purchas-. all FHA home
mortgages and all
those who
However,
up.
In
changed
$2,000 to $4,000 in
1945. : The
average
ex-
homes
desirable
struments
from
December,
34%
fill
It
authorized to
was
down
of
paid
least
tions
homes
insure, essentially in
or
lowest rent groups
'30s, when choice
and the
dictates
market,
the
in-'
va¬
cheapest
and
to New York
buyer's market, when there
opportunity to choose from a
middle
likely to increase.
a
quarter
class
had
as
new
For
ones.
borrowers
homes
with
in every year,
for
Concurrently,
vacancies disappear in the mid¬
dle
rent
ranges,
occupancy
in¬
creases
in
both the higher and
lower rent
ranges.
The
a
a
first in
occur
as
their
group below' amount; of
these
mortgages
1941 borrowed
creased
from
$4,561 in the
income
?656 more for
same
v
groups in 1939,
income
a greater amount to purchase
homes than
in
.
groups below $10,000
all income
ample,
in
ranges
available, he finds.
every
to
'
-
short¬
space
likely to
groups.
cancies in the
propor-
says.
than
/ All income
and
a
housing
three exceptions in
Paid higher prices for
homes
*n
in
with
v
1938-41,
with
years»
were
South Palm Avenue.
.
years
class>
which
(Special to The Financial Chronicle)
Cassell
.Two Wall Street
;C
borrowers
two
homes,
reduction
dwellings in the price
Joins A. M. Kidder
.
the
new
.
ny
terms
capitalized
prices for
sured
•
,
In
Coleman
American
Company and the National
Bronx Bank of New York.
A.E. Aines&Co.
become
standards.
Trust
WOrth 4-2400
credit
consequent
20
all
ing
conditions, the liber-
of
to
higher
prior*
that
assistant Vice-
CANADIAN STOCKS
and
also presents for
-
to
INCORPORATED
Characteristics
the first time comprehensive evidence indicating
that, under cer-
has
$3,844;
was
In
The economist
yesterday. Mr.
Provincial
averaged
in
Fisher
Financing."
ced
maximum
widespread,
seems
come
tion, 90%, their loans would have
$5,000,
the market
Markets:
a n n o u n
the
for
Municipal
Government
borrowed
This
monograph published by the National Bureau, "Urban Real Estate
Depart¬
ment, the firm
1
Groups
accommodations
as
existing homes, Dr. Fisher finds.
Bond
CANADIAN BONDS
age
price which was
higher, in relation to their antici¬
pated income, than borrowers on
data
dwellings
the
well
as
is
come
are
homes
Fisher
for
ager
Income
repay, and the loan permitted to
be a larger proportion of the mar¬
ket
value,
borrowers
on
new
the effects of
New
City,
space.
Hence when the increase in in¬
similar effect, Dr. Fisher
reports.
With a longer term in which to
■
.
bearing
1
Ar\
.
analyzes
Gregory"&"son7lncoro7rated''40
Wall
TtiriAvhAvtri+Aj
are
Shortages Occur First in
Accommodations for Middle ■
is
bought existing ones, $4,272, and
from
of
search.
Gregory & Son, Inc.
Railway shares is significant, in-
credit
loans averaged $4,107.
The extension of the maximum
term of mortgages on ririw homes
Re¬
the war."
iThe revival in Britain of specu¬
lative interest in Canadian Pacific
liberal
more
nls\
Bureau
F. X, Coleman Joins
them
but many seek an
improve¬
ment in their
housing standards.
newly established households.
Rent control has contributed in
Economic
*
up.
acquire
adequate
dollar."
market
*■r^" p u ^ V0 -Ji!S
^ m week by the
Cana- National
fu!? ^ber
same class
I'" '
can we
by "undoubling"
uith
and the dollars raised in this
way
are then used
by the British Gov•ernment
concludes
uate School of
npwal
trol
-
^ge of rental housing, Dr. Ernest
M. Fisher of the Columbia Uni-
se-
who
families,
newlyhouseholds, families
"undoubling," families migrating
Accentuating Housing Shortage
atPr90lUoCi)1o°nn liaIis estimate6 Business re^ compared p °r fwn
) h>styear nnn /
study made
no switching
is
English resident
holding Canadian securities. The
allowed
rent.
newly-formed
absorbed in price
leading to reduction in housing standards.
Asserts rising incomes causes
shifting of families into larger
and better quarters, absorbed
Win n,finale
in 1950.
for
Space
Rent Control
-
agalnst ",200,000 produced
s
thl
Chronicle
"News
is
i
this
o4o 7nA
spent
rent,
R^e Production is up about 75%
from last year with a prospective
Pra.irie total of 19.615,000 bushels
rana
,.m
fi is ig%' ExulSg
,,
less,
family in-:
established
reap
J
m 0>
°>°t ® boishels against
1{)^'UUU'UUU Jast year.
premiums of
prices in Montreal
that
even
will have to be increased where
8()d
at
no
previously
they
rent
a
Some may be
seeking to reduce
the proportion of income
spent on
bted pl-aiHe
are
alternative
raised,
find any real solution
the costs of
pay
000
in Canada, opening new op-year s crop was 427,000,000.
portunities of development, and Xo %
A
t *
th
.
.
a tendency by British investors to
di
0ats nroduction is
avoid the possibility of dividend
332
000bushels compared with
limitation in Britain, as proposed
954W000 in 1950
•by the Labor Party Government.
'Prahie barlev cron will
The prices for Canadian sec.ur.i-
ties in London
■
for
nroblem or
the present tremendous spending
tne tax problem or assurance
assurance
program without inflation, taxes of preserving the value of the
t
a„i
acquired
from one
area
to
another, and
families and households
spreading
out
into
more
*0 ^SC0UrBSe initiative.
„If we are t0
000 in 1928;' the newspaper-says,
ore
of
be
conditions, Dr. Fisher
continues, residential leases, be¬
coming a conspicuous bargain, are
wheat
more
all-time hieh
n«n tne an time nign of 04d,uuu,
01 545 000
re-
^ti^at^gmf^ofr^
discoveries of oil and
cent
/
i
price
Under these
place a heavy question mark on
is railroad ljnes m Canada will ex"Corporate taxes are already so
every proposal for additional govNewfoundland, which has perience one of the greatest crop high as to
greatly distort corpo- ernment expenditures and
every
xisen from a low this year of 63
"^coraing rate operations, encourage ex- present extravagance. Only by
to 87/6:
Brazilian Traction, up ™
Jl f/SL-S travagance and inefficiency, arid
from a low ol37
keeping expenditures Under con■with
better
absorption
more, and
the proportion of
than
-
compared .^aj^^JducSon^560W)000bu5i|raln p™«u«ion, asbuuu,0UU Dusn
early ef¬
and
rapid
cannot
be
may
.
considerations
be
can
impact
heavily.
so
these
a
the
quarters
somewhat
a
incidence
larger
existing vacancies, especially in
better
housing accommoda¬
Since
burden
on
,
tions.
which
population
for
seeking
need
which
different
heavy
rising
the
year over present taxes.
displaying strength in London
Anglo
and
rely in determining tax policy.
"The
a
into
quarters
studies
on
on
shifting of
families
an-
alyzed for such help as they may
give, but with understanding of
their
of
Fisher says, one of the
is likely to- be a
fects
the
be
\
limit
period
a
•
This
where
maximum
a
during
incomes
important
to
as
rests
now
just.
of
naturally
reduces
the
proportion of tenant income
spent
on
shelter.
Consequently, Dr.
everybody
fair
than the individual and corporate
taxable1 income taxes on which we have
all
$25,000
rents
increasing
all
the
Setting
govern-
crop is exported, the
shipments involve
shares
makes
Exchange
dian wheat
the
in real wages
train of effects in
this country, Dr.
a
markets
Fisher's investigation
shows.
It
is there that the greatest increases
the^n greatly
of
the
This is
Inlthedowerrangesof incomes.
surveys of the all ranges of
burden are discussed,ywants to be
throughout be borne by the rich and wellthe periods of greatest economic to-do.
^
^ ^
y
distress and depression in the se"The present
spending program
curities markets.
of the government
is such that
Perhaps the activity and up- everybody in the
country will inward surge in Canadian Pacific as evitably feel the
weight of taxaweR as oRier Canadian shares is tion, says the'Bank Letter.' "The
based on
Prospective heaviest bills cannot be paid by just the
2rain harvests in Northwestern rich or even the moderately wellCanada this year. Canadian Pacific to-do.
In
fact, the progressive
has for Years been the heaviest icome tax is now taking
away
-transporter. of Canadian grains such a large proportion of the
a?d since the bulk of the Cana- larger incomes that if the
in which to put money.
Among other
there
don
good place
a
current tax
on
during and after both world
wars,
has produced
the bulk of the
money is.
pty Bank of New York's-Month-
ly- Bank Letter '
results of recent
steady and
a
"Who
Pays the Taxes.?'' published in the
September issue of the National
Stock
uninterrupted market
commen-
is inthemaking
Stc
ia-v
Stock
something like
York
entitled
control
legislation, which
appeared in all Western European
countries and in the United
States
a num-
article
to„
Analyzed
Rent
income.
an
home
Effects of Rent Control Are
be obtained from lower
ranges of J
must
revenues
leading
cific shares have had
atten-
London
that
oc
jirtd
world's
Exchange. Yet,
it was British capital and financial
backing which made the building
of this great continental rail empire possible, and Canadian Pa-
London,
called
Exchange and financial
4
the
on
needed tax
and
New
Ac-
recent despatch of the
newspapers
securities
S3
in
are
In
mand for Canadian securities
,
dealt
during the
these shares
as
Thursday, September 6, 1951
.
in grade or
quality of
explain the differential.
Well-to-Do for Tax Revenue!
on
September issue of National City Bank of New York "Monthly
Bank Letter/'
pointing out progressive income tax is already
taking heavy toll of large incomes and if all income above
$25,000 is taken, yield will be less than $1
billion, says
By WILLIAM J. McKAY
Along with the industrial and
agricultural expansion in Canada,
Depend
..
insurance
j
companies
series
on
Corded
and
surveyed
pendix.
are studied.
Statistical^
deeds and
mortgages re-
in
on
an
foreclosures
extensive
,
are
ap¬
Volume 174
Number 5044
.
.
The Commercial and Financial Chronicle
.
is,
in Needs Trade With East
President
security restrictions on what
we
exported; we have not only
shown ourselves willing to
cooperate in achieving a common
policy to this end, we have in fact
taken a leading part in Europe in
getting such a policy accepted,
Stressing Britain's vital dependence on foreign trade, Sir Hart¬
ley explains why British East-West trade pattern must be
maintained, despite objections in the United States. Says
Britain has curbed exports of war materials to Iron Curtain
nations, but must continue to supply them with textiles and
other materials, even if they may be of military value. Cites
partial dependence of Britain on Russian grain and raw mate-
v
*
-
-
rials, and points
J
-
Great Britain
of Trade,
of Board
:
•
_
The
vital
importance
of
by all
of
often
our
it
is
that.
afford
us
For
might
L;
with
tation
the
light
Soviet
of
things
eludes
h
a c
k
it is
n e
a
that
With
friends could not sup-
contemplate
of
That
We
essential fpods and
'goodwill
depend.
and
us
People of
both sides of the At¬
on
and
we
in time of we give economically and strateNo doubt in time of gically.
it would be a matter
We are always ready to discuss
war
interest to
allies to
our
these
matters
find these additional supplies and
indeed
to make it possible for
But
us
to pay
do
we
with
have
we
On
the
other
hand
we
cannot
ask
Allies
our
constantly
as
done
friends in
our
should
war comes
side,
er
supply
to
these
countries
—motor
from
cars
Coventry
or
control the export of
the'
to
mainly bought raw materials from
the sterling area, such as rubber
to
resist
be
things?
Would
strategically strong if
or economically strong-
us
is not
communist
infiltra-
matter which ought
by the laying do™
a
settled
0f unilateral
conditions or by the
denial of supplies essential to our
wellbeing. It is pre-eminently one
frank, but friendly discussion
for
between Allies
the day the
alliance
For at the end of
success
must
of the Atlantic
depend
on
under-
aod wool, tea and jute
together standing and confidence between
ammunition—and we with restricted quantities of ma- our countries. If we are partners
the other extreme, it chinery and industrial equipment __as we must indeed be—we must
that
and
don't.
essential
it make
list things which will be useful to tion?
in- them. A vast range of our exports
This
justify the prohibition of their
export.
On the one hand it is
arms
these
of
expect these sources of supply to
be maintained if we do not, on our
strategic goods.
Of course, it is their low standard of living. In
decide what goods are fact with the sterling they earn
sufficient strategic importance from their sales to us they have
obvious
way
materials
raw
v* believe that in these
trade exchanges we get as good as
fully alive to jewelry from Birmingham — they
have not attempted to buy despite
are
we
of
to
well
us
except
war.
common
of
furs, caviare and crab,
things are quite different,
obtain from the Soviet bloc
not easy to
of life
free
our
exacerbate difficulties.
.
ed
y
the
and
other, civil¬
The
embargoed
items.
need to
misunderstanding between
our
ports
of
may
trading policy.
know
hand
the
on
knowledge
our
totally
250
There
are
plenty of people who will exploit
always greatly
I
and
one
States
ization
must
affect
the
United
matter
a
which
as
production.
war
prove
is
of
friends,
and
circhanged and in
have
cumstances
the
on
American
our
Western European
the British Commonwealth of Na¬
tions
our
I
them
and
of
some
original list of strategic goods for them. But this is not general Atlantic Community to put themwe
refused to export has war.
And so we are left with selves in our place
What would
since
been
modified
and
in- Eastern Europe as the only avail- they do? Would it
help the Comcreased, always in close consul- able source of supply.
munity if Britain were deprived
standing and confidence between
it
which
are
ply without imposing on themselves rationing or other restric
tions on consumption difficult to
general
beyond general
send
later be turned
our
friends. And
or
us
there
which
misBut
to
dollar expenditure
on
think
21
the
unde rstood
greatly
abroad.
not
Iron Curtain certain material
against
under¬
on
decided
which
pattern of trade has been the
subject of much misunderstanding between ourselves and the
Americans.
We can neither of
And
people.
own
the
our
our
is, I am afraid, still
always sufficiently appreciated
not
We
out normal pattern of British trade differs
from that of United States.
1
export trade
recognized tfre need to im- eye
we
pose
By RT. HON. SIR HARTLEY SHAWCROSS*
*
(877)
At
we
should not
send
from the United Kingdom, not of treat each other as partners. Harsh
J kpd or quantity, as we think, or unilateral action: the failure
live. But the
;
I speak as one who knows and textiles can clothe soldiers or me- having any significant strategic on either side —and there have
sign i f icant
But the commodity have failures on both sides — to:
loves America; as one who, if he dicinal drugs be used in military importance.
truth of truism
>"•
on which they spend most sterling understand the other's point of
'i did not enjoy the privilege of hospitals, A
H. W. Shawcross
is not always
•Our policy has been to prevent 13 ™bberr we have therefore ac- view, his special difficulties, and.
being a British subject—and it
realized. 60%
are
tne
export
01
tmngs wmtn
remains a great privilege—would the export of things which are !?pted ln tb,e la?Yt!S?bei c°ntract lack of confidence, is something,
that we made with the Russians a inimical to nartnershin
of
our
foodstuffs
come
from be gjad t0 be an American.
And important principally for war pro- p1a,1<;p whiVh entitle* the Russian*
YxT
•«> parmersnip.
entities tne Russians ; „We m this country are making
auction ana tilings
abroad; so, do vast quantities of j beg our American friends to duction and things which embody fla^se wmcnor
to decrease
suspend deliveries a tremendous effort in defensp of
raw materials without which the
realize that if we have trading advanced technical knowledge that
f
+imhpr
if tupv
linahie
to
? "emenaous enort in aeiense or
life and industry of the country relations with Communist coun- would be useful m war.
in wcu.
Certain ?* timSu
11 ?U L
unable to freedom and of peace. In relation
worna
oe
useiui
b
rubber with the sterling they to our size and to our resources
could not go on.
We can only tries as well as with them it is no kinds of scientific instruments and
;
h
thpir
+fmhPr I?
a 7 xo our res°urces
Py sell!ng us
timb?r- the rearmament program we have
macnine tools
are
pay for these things by our export
indication of disloyalty
to
the machine toois are obvious exam- SLapyrous exam Thlg doeg
^ mean that supplies undertaken
imnoses
a
heavier
earnings; at present we are not common cause of freedom and pies. Our embargo list covers this
f rllhhpr tn
wui
increase
j"ia5IWKen imposes a neavier
Then there are the things 01 r^bt)er. Xo Russia will increase burden
on our people .than has
earning enough.
When the bal- democracy and peace which our field
tnere axe uxe uuxig nor does it mean that there is any been shouldered bv anv other
which are used primarily to sat- phancrp in
ance of payments figures come to
han
rnhher to
s,nouAiabrea
oiner
countries are pledged to defend,
be published next they will show
isfy
normal civilian needs but
in 0U1 ban on rubber to country. And we, certainly, are
which, particularly if supplied in Lhlnacarrying our program out. So also
a
deficit, especially serious on
U. S. Must Recognize Normal
truism
say
lantic
to
to
them.
export
we
must
to
work
dissipate
be
can
thing
Y
almost
any-
used in war,
even
argued
be
can
that
.
_
,
,v
-
.
1
arp
*
liq
i_
nllr
hand
to
scrutinize every cent of
expenditure and on the
dollar
our
Trade Pattern
that
meet
To
side.
dollar
the
situation we shall have on the one
Just
that
trade
between
Communist
China
Japan
is
quantities, could contribute
large
the Americans recognize
as
a
and
normal
siffnificantlv to military
signiticanxiy to militarv
nist
"limited
greater effort, restraint and sacrifice on the part of our people,
whose effort, restraint and sacri-
„
,
_
Question of Export Markets
do
farms of
Hungary, Poland and the
part
of
much
real terms
in
are
than in
times
prewar
themselves are inadequate
cope
with violent swings in
to
,
Here
payments.
of
balance
our
are the problem s which
American friends and allies
them
understand
to
is
different
how
very
economic
our
and
to their own.
little island has 10 times more
strategic
Our
position
people to the square mile than in
their vast continent and for raw
materials we are almost wholly
They can
dependent on imports.
trade
with
choose—-or,
none,
what
indeed
for Jhei
almost
vnth
v at
vide
the
economic
'
almost all their
strengt
_
f
.
~^
f
industry has been founded on
vigorous
the world.
a
we
tr
It
e
is
r
ZWn
have
P
.
madc^gr ^
COnunentdi x«uuxv,
continental resources
brk
of
h1
.
available to
the
United
States—and to
oV ■ rnntnn
rnnic
miPQtinn
Soviet Union.
This q
the
nf
Shawcross
at Luncheon in Truro. England, to mark
ooening of the Cornish
Industries Fair,
August is, 1951.
sneech
by
Sir
Hartley
relationships
normal
and
peace
senting
matter
But I put the
with all the world.
the "European Recovery
pr0gram, President Truman said:
"Both
the
report of the 16
the
and
mitted
program
now
na-
sub-
to
Congress are based on
belief that over the next few
the normal pattern of trade
between
Eastern
and
Western
years
EUr0pe
wju
stored.
As
is
trade
sphere
be
gradually
this
the
on
for
food
re-
restoration
achieved
demands
the
of
abnormal
Western
Hemi-
fuel
should
and
diminish."
now
nomic and
Whilst
we
purely
as
one
of eco¬
strategic common sense.
shall certainly do noth¬
ing
to
increase
the
relative
strength of a potential enemy we
should be foolish indeed to impose
restrictions
weakened
on
our
which
trade
our
strategic
own
and
economic position.
Consider what
we get in return.
In 1950 we im¬
ported from the Soviet bloc 690,000
tons
of
coarse
grain,
well
over a third of our total imports.
That provided the grain ration for
at least a quarter of our animal
population. We imported 220,000
Unfortunately, that expectation
not
been 'realized.
Despite standards of softwood — almost a
efforts immediately after the
quarter of our total imports and
war to restore the old, and after essential
not
simply
to
house
all, the natural pattern of trade, in
building but for export and gen¬
has
the hoPe that the Soviet Union
would join with us in the peaceful
rehabilitation
have
,
only in that way
thp
his message to
our
C0TuryAiW1il!iLntTmLnnfppt1ir
and highly developed
ing
For exampie>
our tions
do
xne
United States, think alike, believe
in the same things, cherish the
other matters from that of the same ideals. Our enemies would
United States because of the im- divide us. We must stand the
portance of this trade to us. Amer- more closely side by side^ deterica had not and did not need to mined if needs must to join once
East-West
trade as
in
many
prohibit all these ex-
not
we
congress in December, 1947, pre-
It must be difficult for
not have.
the CommonDeonle
of
the
people oi me
in
the
ana
Our position is wholly different
in
had
it
of
the
w£ld>
harshly forced
we
upon
eral industrial needs.
of
total
our
from
come
Ten percent
supplies* of
there and many
bacon
other
mining timber essential
production, chemicals,
oils and fats and a wide range of
with ^ and ^ q
wfth us
{hat Qn ^ contrary other things. These imports have
th^.r
their yagt array of military undoubtedly added to our eco¬
vast
strength
constitutes a
potential nomic and strategic strength. They
threat to the Peace. Accordingly, are things we can hardly do with¬
iio
+v_
us that the Communist countries
are not yet prepared to cooperate
since the Spring Of 1949
important
as our trade with Eastern Europe
—
—*
question of the
export.
In
1951,
less
and
weann,
Much to the Point!
markets to which we
and by
wealth
ports? The answer is clear enough.
In existing circumstances we can¬
Baltic States.
In return, Eastern
not without quite disproportionate
Europe has secured raw materials
damage and dislocation do without
the present unbalanced condition which it lacked and manufactures
the things we get in return for
of the vyorld currencies the more from the industries of Western
them—we come back to the basic
we
can
export to America-—and Europe.
To deprive each part of
reality of our export trade. I say
with her vast productivity Amer- Europe of the resources of the
nothing of the question whether
ica is a difficult market for us— other will not put an end to Comthe
imposition of an economic
the more we can buy from her.
munism; it may merely depress blockade would assist in the
paci¬
Moreover,
the
Americans have the economic welfare of both fication of
Europe. I simply ob¬
substantial reserves of gold with parts without giving either side
serve
that our aim, like that of
which to buttress their balance of any relative advantage.
Indeed, the United
States, is the pacifica¬
payments if necessary.
Our re- the need for that trade was ex- tion of the world: not the exacer¬
serves, ' despite
increases in the pressly recognized in the Marshall bation of existing difficulties. We
second half of 1950 and the first plan.
r;c*
want to find a way of living in
And there is the
pe0ple here and
value and so we limit the have any significant trade with more together in defense of the
quantity we export.
Why, our the Soviet: it means little or noth- free world we have both done so
sources of Eastern Europe, timber
American friends sometimes ask, ing to her to discontinue the im- much to build up.
.
.
-
__
ln America. Fundamentally, our
;
tary
from the forests of Russia, coal
from Polish mines, food from the
praise.
fice is already beyond
■/
indirect mili-
it also has direct or
economy.
It has made available
to the West the great grain re-
Britlsa Araaf rosition unters
From Umted States
we
quantified to meet reasonexports still pattern in the Far East, so trade
able needs. Rubber is the obvious
further, a stern task in the face between Eastern and Western Euof our rearmament program and rope has always been a regular example of that. It has a hundred
one
which
will
involve
still and important feature of Europe's and one uses in civilian life but
other to build up our
*
Brit-h Trade Position Ditters
notential
potential.
export to the Commucountries of Europe only in
These
nn
things
for
out.
—
coal
But where else
them?
We have to
can we
keep
a
obtain
careful
"One
phase of this subject [Social
Security]
.
.
.
propriety of using receipts of Social Security
is the
general purposes of the Government. . . .
fundamentally only
taxes for
"Since the Government has
one source
of revenue, taxes, its
obligations
can
only
liquidated out of tax money. The Treasury can
be
sell bonds,
but these
can
only be redeemed out of
Therefore, in order to redeem the cer¬
issued to the 'fund' (representing the re¬
tax money.
tificates
ceipts of Social Security tax
money) it is necessary
again to raise by taxes the funds
the
certificates.
Whether
taken out of current tax
the
required to pay off
money
receipts
or
so
used is
future tax
re¬
ceipts does not alter the facts.
"The Social
Security Act provides for the avail¬
ability of funds in the trust as follows:
credited
to
the
trust
fund
'All amounts
shall be available for
making payments required under this title.' But
the amounts 'credited' to the trust fund constitute
principal
sented
or corpus
of the trust, and this is repre¬
by Government obligations. In order to
make
Social
Security benefits, that which represents the prin¬
cipal must be sold or redeemed; if such instruments
are merely sold, they must at some future time be
paid in order to liquidate the debt evidenced by
them."—Godfrey N. Nelson, New York "Times."
such
'principal' available for the payment of
Mr.
Nelson
here
seems
which should by now
to be.
to
spell out vital facts
be obvious, but
•
do not seem
22
The Commercial and Financial Chronicle
(878)
World Bank
concerned, or that it is national
pride rather than economic need
Operations
which
posal,
or
vague
On Bnsiness Basis
is
for
cases
to
is
there
need
no
World Bank official reviews purposes
national
the proposal
go
tell their
Reconstruction and Development
own
the
and history of the inter¬
policy of conducting its
operations on business basis. Reports loans authorized now
exceed $1.1 billion, covering projects in 22 countries. Reveals
nature of supervision of loans made by Bank, and reports
favorably on practical results thus far of Bank's operations.
and
institution,
stresses
In
in
the
on
The
International
Bank
is
a ing
and Administration Departinternational or- ments.
Forty-nine countries are memConizations. It is a curiosity in
that it is a business organization bers of the Bank.
With the exrather than a
ception of Czechslovakia, none of
the
Iron
Curtain countries are
political or^
*
.
curiosity
among
—
•
i
has
the Bank
is
and
j -contributing
ito
the
devel¬
tries.
on
$8 billion.
Only 20% of this subscribed
capital is paid-in capital. This is
cither from
United
Nations
from
its
S.
or
Aldewereld
including
countries,
the United States, but can pay
-own
and has even
way
accumulate
io
its
been able
substantial
a
i.
i
.
.
your
for
me
refresh
moment
a
Hampshire,
in July, 1944.
The Fund, as you
know, was de¬
of short-term
balance-of-payments
difficulties;
signed to take
care
the Bank's purpose, generally
speaking, is to finance the
struction
recon¬
development
and
pro¬
grams of its members and to help
restore conditions
Bank
The
is
•
.
the
favorable to
international
private
investment.
organized
along
Its
highest
Board
of
is
authority
Governors.
the
is
Each
has
ernors
delegated most
(including all the
tiormal
lending and borrowing
business) to the Executive Direc¬
The
once a
Directors usually
meet
month at the Bank's Wash¬
ington headquarters. There
present
fourteen
at
are
Directors.
Five
appointed by the five nations
having the largest capital sub¬
scriptions, nine are elected by the
are
governors of the
remaining mem¬
bers, for two-year terms. Voting
power of member
nations is pro¬
their capital sub¬
portionate
to
scriptions
and
economic
ThP
!
ri^s
therefore
their
nf
fho
Ronir'e
^ responsiwfity
ci
u
of
the
President, who is ex-officio Chairman
j The
1 .cists
of
the
Executive
Bank's operating staff
of
400
some
| -cruited from
Loans
are
txmrowed
i
made
only
i rnendation
by
the Executive
i approved
by
con-
persons,
re-
approximately
! nations.
v
Directors.
the
is
money
a
recom-
President
to
The
staff
Ts
J organized in various departments,
the most
the
:
Loan
important of which
are:
Department, Economic
Legal
Department,
Department,
And
the
Treasurer's
Department.
In
addition, there are the Sec¬
retary's, Public Relations, Market•#»mii
only with
.
"
'
H
*An address
.
•
by Mr. Aldewereld before
Ihe
School of Banking of the South,
Louisiana State
University, Baton Rouge.
* a., Aug. 21, 1951.
_
,
f,
,
upon
Let
not
are
can
but the Bank
government
the
the
that
the
on
documents
its rate of disbursements
member
always
the
or
loan,
a
only lend if the
can
member
or-
or
central
bank
country in which
be located is
prepared to guarantee the loan.
project
You will
is
to
what I have
from
see
I
am
nrnxzo
o
banco
and
v
i
*
extent
the consent
I
e
or
have
i,»
i?
much
tell
loans
of
turned
uperauons
States
direct
selling
by
what
the
which
we
you
is
down, but I
can
tell
obligations;
the
many of the trans*
actions in which the Bank is in-*
borrowed
we
flood
loaned and bonds sold,
been achieved by our
has
countries
with
of the Bank's money,
stands
the
control
munications
nroiects and comprojects and comprojects for between
terested
and where it
today.
our
loans has been
of credit., Let me give you an
the London market
on
have
from
Swiss
francs
time
in
total of some
mention
$26,000,000.
in
raised
this
in
that
borrowers
proceeds
free
are
Of
the
our borrowing
u.u.
of sup-
balance has
a
checked
operations
I
.
our
must
say
Policies of World Bank
u
l
~
mi
worked out about four years
ago
with the Bankers Association for
Foreign Trade. Under this pro-
about our system of cedure the commercial bank ischarges.
In the first place, we sues a report to the effect that it
charge the same in any given case, has made an investigation of the
whether the funds come out of documents and has found them to
capital or out of borrowed funds, be in order. The beneficial effect
for the Bank is that we can handle
a relatively large volume of business with a very small staff.
[It
would take too long to give you
the technical details of the procedures. If you have some qtns-
place, we invest part of our un- tions later, I will be glad to tell
disbursed funds
in
short-term you more about this aspect of
government
securities.
In
the our work.]
fourth place, our borrowers pay a
This
system of disbursement
commitment charge, at present at supervision enables us to insure
the rate of .%%
per annum,
on
t.hp undisbursed balances of their
the undisbursed balances of their
loans.
You will
interested
be
1
"
together
1
have
resulted,
and
in net earnings of
development.
J
something
meeting
industrial
are
as a
xi
.
the
matter of routine by
■
the commercial bank; The procedure used in such
cases
was
„x
,
the documents since they
see
is at 25 years; the
shorter maturity.
„l
_
purchase of
being financed through documen-;
tary letters of credit.
In such
cases there is no need for us to
wherever
source
the
construction equipment.
The orders for this equipment are
be situated. The bulk of
may
finance
necessary
our
spend
loans
our
the most favorable
piy
to
will
than
United States dollars because
ex-
ample: The Bank recently granted:
a loan for $18,000,000 for an
irri-f
gation project in Thailand and
a
I should
connection
currencies; other
neecl
we
time
to
and
Switzerland
granted for general reconstruction
The projects financed with the
aid of these loans are located in
financed in the first
are
place through commercial letters
ijng
to
$25,000,000 and $50,000,000 each, know that all these factors taken
The balance of
help
letter'
a
to know that
Bank's
_
more
money
in order will make
are
recently $14,000,000 worth of ster-
financial
you how much we have lent. Up
to now we have made loans for
okonn
con-
of lading,
making payments under
of
aggregate
the money was raised in the Unit-
To complete the picture of
4*
Banns
cannot
amount
the
in
Euro
System of Charges
the kind °f things for which we
have lent money: electric power
what is not to be found in any an(*
transportation projects acpublications—What policies have count for nearly $300,000,000 each,
been developed
during the last agricultural projects for nearly
five years, how these policies have $100,000,000 and irrigation and
is
Generallv soeak-
payment.
You will see that a
Bank loan is in effect a gigantic
« iM cucvt a gigantic
but rather
oui rauiei on the basis of its comuu W1C Uctsia UL 113
ed
bor-
our
individual
apply for
Any
ganization
t in
,
to.deal wlth*
mention
me
countries.
of
/th
development
development
Now I come to what
interesting and
publications
the
goods
"early $350,000,000. The bulk of of credit. You will be interested
be used
can
specific
private' oa
Private bankerS is Eo™ normally
s
y
d0
Jhe econom?c
me economic
administrative
000
which
the
general
some
been
has
$43,000,-
However, we still have to make
that these goods are used for
sure
the project and do not rust
in the
to
jungle, and this leads me to the
second aspect of supervision—-that
addition,
of end-use. When we had to or¬
credited
In
reserve.
after
expenses,
that the proceeds of the loan are
spent on the goods which are
required for the project.
22 countries^ stretching^ from Ice- the Bank charges a special cornganize our end-use supervision we
policies. They fall under three land to Chile, from Mexico to mission of 1% per annum on the considered several possible meth¬
main heads: Lending Policy, Thailand. Some are by any stand- amount of loans outstanding in
ods. Generally speaking, we saw
Financial
Policy
Supervision ard Yery lar§e operations, others order to build up a reserve against as one extreme the possibility of
Policy.
'
'
'
relatively small.
defaults. The amount standing to stationing our representative at
many
respects there is a
There are, for instance, the the credit of this reserve is now the site of each project to check
similaritv between the Interna- Pr°jects of the Brazilian Traction about $21,000,000.
Thus the total what was
going on and to keep
ti^al Bank's
to a proa"d Power Company which reserves of the Bank are approxi- us constantly informed of devel¬
To
start
then
with
Bank's
the
^
app^ach
posed loan and the way any sound
banker
found
Bank
very
is
a
mvolve
^ ,supPly o£ electric mately $64,000,000, which is nearly
Power aI\d telephone services to 10% of what our borrowers owe
often that since the an.ar£a about the size of France, us.
specialized agency of and which represent a total inhis
lends
I
money.
have
t
„
?£ m0',e than $250 milthe other. end there is
the United
Nations, people think
that its actions are determined by
the
internlav
of
Dolitical
ores-
M^c^t^
vou
carefullv
we
check
the*
creditworthiness6 rf'1 the ^prospective
customer
whether
and
the
for which he wants to use
money is sound from a business point
of view and practical
purpose
the
a
technical
point
of
£»•
instance,
on
CAFCU
armchair
aoncuau
addition
a
our
but
men
wno
who
theoretical
in
in
I
KrW.ohawlaalso need technical
ride Paa<;tlCK ex:
perience. We
experts to investigate the soundness
of the proposed
°
There
are
many
„
cases
where it
_
is possible to see immediately that
the scale of the proposed loan is
beyond the
means
of the country
Supervision of Bank s Loans
Now I would like to tell you
of/ssociation
re-
,
nl°'ch,ased ^lth these funds
^
°ur supervision system consists
™
of tw0 staSes.
°"rm^L "ntd^ffi
tve h"ve
Vou
of loans
Inade
will
hp
rnnrcp
estertoTnow
ested t0 know
ested 10 Know
what we
are prop_
erly used.
l ^
infpr-
chlrse
for
what we charge for
cnarge tor
We control in
the
first place the disbursement of the
E°C?fiS.°f ^e.i°ani.inJ.he..!e?:
,
^xav-v.,
opments.
extreme
clusively
are
R
k,
horrowine
borrowing
The
which
W111V11
amount
have
liavc
of
been
capital
made
limuc
funds
available
avcmauic
to date for
000,000.
we
lending is about $760,I have already said that
made loans amounting to over
and
disad¬
at
the
Bank
a
site
the
of
representative
project, would
only be expensive in person¬
nel
but
tive
would
there
ditional risk
that
the
be
our
end-use.
To
use
a
medical
supervision
of
ex-
dis-
be drawn into the
taking responsibility
for technical decisions which, of
might
position
course,
of
should
be
borrower. On the
also felt that
exclusively
by
should not rely
written reports
our
borrowers.
have, therefore, adopted
a
two
lies
I
on
between
just
policy
extent
natal
of end-use
care;
the
as
happy
the
post-
we
the
mentioned.
rely to
information
a
event
in
We
policy
ex¬
Under
certain
submitted
by the borrower, but also send
curacy
the
we
on
by
taken
other hand, we
bursements could be defined as own experts fr0m time to
,e. Pre~natal care and the super- visit ^ project to verify
vision
ad¬
representa¬
which
pression- -the
We
not
this
th
regu¬
reports.
advantages
stationing
thi'
t
us
vantages. The first system, that of
tremes
abo
these
on
their
submitted
v
whlch Bank financed g°ods
inform
would
realized that both of these systems
had
the supervision of disbursemmUs
nohev
We saw as the other
system under which the
larly about the progress made and
under which we would rely ex¬
and the second the supervision of
explain this I have to say some-
a
borrower
^^5 ih?SeT L°alS'.J"„?.rd„!L!°
p
project.
.
£'na"fd n^ear'y it5h ae;dua a" must make sure that the funds
°f.
Tney,i?"
a"d the Paoda and services pur-
liic
back-
,,
„
quire us to do so, but also because
va!y ac"
in the Bank feel that handling
cording to the kind of projects other people s money as we do we
view.
cv-uiiuiiuoia—xiui
lype,
type,
to
a
,,
that passing
the creditworthiness
a whole country is a difficult
Proposition. We need for this pur-
.
^ am°UntS * " Articles
You will understand
judgment
loan
.
recently something about the supervision
^anted £o Nicaragua for the pur- of the Bank's loans. We carry out
chase of aSricultural machinery supervision not only because the
Director'°tos"'been of
them.
the
borrowed
not
has
,
from
and
after
30
Bank
ourselves.
various
the
on
of the
01 tne
this
to
nriQV
sures. This is not true. Our lendins business is based on sound
resources
rnndfipf
is
to
afi_
hilt
proceeds
suppliers, receipts, etc. The Bank,
after it has satisfied itself that the
a total of over $1,100,000,000. Of In the second place, as is true in
this amount, our borrowers so far any other banking business, there
Bank's own obligations.
have received only some $700,- is a small margin in our favor beWhat I have said up to now is 000,000. In a
moment you will tween the rate at which we lend
something you can read for your- understand why. .
; .
and the rate we have to pay for
selves
in
reference
books
and
To give you a general idea of our;- borrowings.
In
the
third
of its
powers
to enable the Bank to conduct its
tors.
the
of
^
member
generally its Secretary of
The Board of Gov¬
^hev
of the
We agreed with
jngthis documentary proof
ject to call by the Bank only if
it "is 'ever* needed to meet the
what
mem¬
in
consider
r>niintrv
loans.
in
supervise
mitments- We have from, time to documentary letter of credit and
time sold bonds in various finan- that our work is more or less what
cial centers in the United States every commercial bank does when
i_i
particular nation whose
currency is involved.
The remaining 80% of the
Bank's subscribed capital is in the
nature of a guarantee fund, sub¬
of
the Treasury.
powers
currencies
loans
i'
■
expressed themselves in the shape
ber country appoints a Governor,
who
n
i
.
iv,nw,o«i„no
i-
following lines:
f
ditio
the
of
zation, the International Monetary
Woods, New
i
m
the
for
It and its sister organi¬
Fund, were founded as the result
of the United Nations Monetary
and Financial Conference held at
Dretton
.
member nations and
memories about the origin of
the Bank.
to
r.
in
plus.
Let
nnnl.Vant
loan
a
time, however, the
same
basis of
creditworthiness of
going to say
only part of the Bank's sub¬
*ater that the Bank tries to do
scribed capital which may be used
for loans. And, of this, only 2% a businesslike job and that we
is paid in the form of gold or try to avoid making loans which
1 citor
Wo
rtf
later may prove tn be a cause of
to
United States dollars immediately
available for lending; 18% is paid regret for both the borrower and
..
sur¬
the
of
said and what
the
of
any
member
capital is in excess of
subscribed
At the
of
..
rowers
capital is derived
ifrom shares subscribed by mem¬
ber nations, in proportion to their
relative economic resources. Total
coun¬
budgetary ap¬
propriations
the
Switzerland, Argen¬
are
Bank's
The
It is not
dependent
i
joined
not
shortly.
very
opment of its
member
have
ment
Charter,
its
disbursement
our
to you
we
is' theref«re. disbursed over a*; gists, of invoices, bills
rather extended period.
they
do
merits
technical
the
with
explain
how
terms
f0r such goods.
the proposal and make an assess¬
tina, Spain and Sweden. Sweden
is
likely to become a member
eco¬
nomic
important
more
which
countries
contribu-
ited
The
members.
Ionization, ft
only
Not
spot.
consider
borrower
accordance
project.£ The proceeds of
teanTofExperts goes'tato"action
1®
2J
-
first
me
of
the
*
Then
possibilities.
to offer
pears
it stands.
as
cases tne proposal apcases the proposal ap
manv
many
Let
general
and a.s a matter of sound business which are necessary for the projPractice, does not make the pro- ect. The Bank will only disburse
cceds of the loan available when funds when the borrower submits
l0an 1S signed but only makes documentary proof that he has
the™ available to the borrower as either spent money for these
and w!ifn they- are ?eed?d «5° goods, or that he needs the money
meet
the
requirements
of
the
further. The papers
story, and we tell
applicant that we do not feel
justified in going any further with
Bank for
Assistant to Treasurer, International
us
of
for this dif-
reason
in
^
such
In
for
The
ference is that contrary to what
happened usually in the past in
international lending, the Bank,
what the plans are too
us to form any judg-
ment.
By SIMON ALDEWERELD*
000,000.
Thursday, September 6, 1951
.
this case being the disbursement
the funds,
$1,100,000,000, and that our borrowers have received some $700,-
back of the pro-
the
at
..
our
time to
the acof the developments men-
tioned in the reports. Working in
the way I just
a
The Commercial and Financial Chronicle
Number 5044
Volume 174
described
need
we
relatively small staff consisting
of engineers and
financial experts.
This staff is occasionally supple¬
mented by consultants
hired
Yqu will ask what is it
to know from
is
answer
>the
<
Let
the
Traction
loan
Light
give
me
have
example;; I
tioned
know
to
its
an
you
already
men¬
thes Brazilian
to
Com¬
financing.
and Power
like to tell you
would
I
sible
all
world.
the
over
When I
in
was
Liege
the
This,
as
we
are
know, is
you
the
project in
physical engineer¬
a
ing and construction sense is go¬
of
American
to
European
foreign exchange and in local
rency
estimates
financial
company,
to
I
is ; better
conditions.
which
tinplate
as
and
resources
whole,
a
be sufficient not
likely
only to
com¬
hour.
Dealers'
The
Toronto
to
discuss
to
supervision plans with the
the
management,
pany's
our
com¬
people
Paulo
I have
areas.
saw
and
be
would have been built
trouble at all for them to power not been
no
1 already
was
them
as
a
being submitted
to
India
teams
sometimes
been
in existence
for
matter
quite natural therefore that some¬
countries
such
times
organization
an
may
the information
not have all
we
require readily available. In such
a case, we may advise the bor¬
internal controls or, if
not
do
trols
yet
e x
i
of
the
am
very
glad to say that good
has been made and that
those of our borrowers who
orig¬
had
inadequate controls
realized, some sooner and
later, the need for an im¬
inally
have
some
proved system to control their
own operations. It is, for instance,
gratifying to
several cases,
that
not
are
and
Bank
have
of controls
system
which
to
they
observe that in
borrowers have told
that
extended
shortest
Bank's
the
how
the
is
benefits
to
beginning to grow.
Our objective will be fully
achieved when no one comes to
is
loans because all
needed can be found in
the money
the
does
way
but a
yet,
this
from
also
by
bond
FHL8 Notes
intend
.
on
offering
of
Public
Market
series
our
supervision work. In one case
about eight or nine months
advance that if nothing was
we saw
in
done, construction of a steel
mill
notes,
non-callable, dated Sept. 14, 1951
and maturing May 15, 1952 was
made on Sept 5 through Everett
Smith, Fiscal Agent. The notes
are priced at par.
Banks,
thereafter, they
raised enough additional equity
money in the local, market to meet
the anticipated shortage. The par¬
ticular project I am referring to
went into production two months
is
ago.
another
scheduled
electric
case,
we
saw
expansion of a hydro¬
system
might be endan¬
gered if no steps were taken to
make
14,1951.
more
local currency avail¬
able. Here again we
talked to the
the
dated
outstanding
obligations of the
reduced
to
the
made
either
at
serve
Bank
of
notes
the
threat of
York,
the
Exchequer
Sir
and
Rama
B.
the
of
Rene
Finance
of
Mayer,
France,
Governor
Rau,
of the Reserve Bank of India. V
At 4:00 p.m., Sept. 10, Eugene R,
Black, President of the
Interna¬
tional
Bank, will
present
the
Bank's
Annual
Report
the
to
Board of Governors; and at
10:30
Sept. 11, Ivar Rooth, Chair¬
the Executive Board and
Managing Director of the Fund,
a.m.,
of
present the Fund's
of
Annual.
Both these meetings will
to the public.
the
the
week
During the
Governors
the
the
matters
the
Annual'[ Reports.
on
agenda
which will be open to the
The
is expected
longest
to be held on
public,
Friday,
Sept. 14 at 3:00 p.m.
Many distinguished leaders of
banking and other investment in¬
stitutions from both the United
States
at
and
abroad
the Annual
will be guests
Meeting as in pre¬
vious years.
eligible
in either
to make
u. s. treasury;
Price
minor, if any,
state
,
and
Accumulated
side, are still
It
municipal
three maturities have been
securities
nearly all of the money-center banks.
have been going into
considered fancy prices, that is, at
what was being posted in the
"
in
savings
deposits that is being witnessed
is
it is removing the
important liquidation by these banks.
Aubrey G. Lanston
& Co.
INCORPORATED
•
-•
With Douglas Hammond
Craigmyle, Pinney
(Special to The Financial
(Special to The Financial Chronicle)
•
Re¬
both, at the option of the sub¬
scriber.
of
cuss
in picking up not-too-large amounts of this
reported that small lots of the last
With
Federal Reserve Bank of Chicago,
or
Minister
been
Federal
New
the
of
United -Kingdom;
rest
eligible ones
continue
banks
temporarily, if not for a longer period of time,
consoli¬
Federal
will be
of.
Treasury issues. These
institutions are being given more time by this development in
which to make adjustments in their investment policies.
At least
$504,500,000 now outstanding.
of
lor
be open
$497,000,000 from the
Delivery
or
Banks
that are considered satisfactory to them.
/The increase
Upon completion of the present
financing,
Ministers
Central
having a more than token influence upon
•
-
the
of
1967/72 is still thin and it
out-of-town
these buyers.
market. !
be
be
will meet in closed session to dis¬
the smaller banks
of
in
mainly
quotations that were better than
used to pay off
series
H-1951
2%
consolidated notes maturing Sept.
will
Home Loan Banks will have
that
because of rising wages and prices
in
the
borrower's country, the
In
some
deal of volume to move prices
great
strong hands at what have been
to¬
on
will
will
issues from
appearing quite regularly, and all of these
$100,000,000
soon
Proceeds from the offering,
a.m.
and
Finance
the
Report.
The out-of-town banks continue
purchases
under accumulation by
gether with current funds of the
funds. We talked to the borrowers
very
near-term
partially-exempts, although on the scarce
The
D-1952, consolidated
might be delayed or even halted
because of
a
shortage of local
and
conditions.
for the
demand
Partial Exempts
Federal Home Loan Banks 2.20%
give you some examples
of the results obtained to date in
me
10,
though this buying has not been too substantial.
a
$92,500,000
Supervision is finished.
Let
even
at prices
effect upon
.
closing meeting of the two boards,
changes on little or no volume appear to have very
the
continue this system after our
their
slow but sure progress
good
start has been made.
Sept.
man
the
There has
institutions, with
Nevertheless,
direction.
private market. We are a long
11:45
at
convene
respective countries.
They
include John W. Snyder, Secre¬
tary of the Treasury of the United
States; Hugh Gaitskell, Chancel¬
obligations.
money
despite tight
getting the play.
take
not
;
their
government obligations con¬
The market for the 2V2S of September
for any more
us
C. Abbott*
D.
The opening session
preside.
heads
not to be discounted amount of competition. Corporaissues into the
concentrate
obligation,
'
and
deposit
the Vies
and
Hon.
Governors,
part
Bank-Eligibles in Demand 1
longest
a
Chairman
the Boards
to the public.
i
The Governors are for the most
casualty companies which have been small inter¬
rather consistent
large
,
open
Income
longer-terms, that is, the tap bonds, with the earliest
pri¬
capital in international in¬
vestment
to
y
Finance
Monday,
rations continue to move out of the lower-income
in this way, the confidence of
vate
a
supplying
money
practical
into
translated
been
a
Minister
will
bank-eligibles continue to get more attention from
The
d
n
will
•
on
o
of
operators have fairly good-
,
,* r]
As people
founded.
was
be-
of
way.
roads
that
evidence
of
available for
higher-income governments. Life insurance
companies, outside of the large ones, have been on the buy side
of the market again with commitments not too substantial, but
evidently modestly greater than has been in evidence recently.
the
is serving the purpose for
is
this
held
Shore-
week
and
the purchase of the
operations
to
financed
they
our
tangible
a
constructed,
and
Fire
produced and transported.
All
see
progress
us
is
in
the
at
•
mittent buyers appear now to have larger amounts
the Bank's work in
over
the world is
are
same
them to work in the marketable Treasury
bridges are built, more food
and
these con¬ Bank
s t, to set which it
them up.
I
contributing
be
dian
although there have been no important changes
make-up of the buyers of these securities.
Pension fundslead the parade as has been the case recently.
It is evident that
private pension funds are going to assume greater importance in
the longer end of the government list.
Acquisitions by others
than private pensions funds seem to show United States Govern¬
ment trust accounts to have been among the larger buyers of the
restricted obligations/ ' It is reported there were ho particular
favorites, and purchases were pretty well spread-eagled over the
whole list of tap bonds.
It is indicated funds have been piling up
in these accounts and it evidently was decided to put some of
life and death.
all
Factories
to improve certain existing
rower
of
In this v/ay
Fund
y
Abbott, Cana¬
in the
which the Bank helps
only a few years and Which are
suffering from growing pains. It is
a r
will
M
tinues to expand,
how this work in
is really a
see
and
Mone-
Sept. :10, 1951.
Douglas
C.
now
Emphasis
It is, however, not always as
simple a matter as this. It is, as jungle or infested with weeds
•you know, in the nature of the which could not be eradicated in
Bank's business to finance pro¬ any other way.
If at the same
jects in undeveloped countries. time you see in that country mil¬
We have given loans to organiza¬ lions on the borderline of starva¬
tion you
are
Demand for the higher income
making available for culti¬
vation land which was covered by
tions in such countries which have
;
the
Inventory Profits
end of the list.
cheap
tractors financed by
Recon¬
Hotel,
Washington,
D. C., during
showing them rather important
profits.
If the market continues to show a buoyant tone, and
trading limits become a bit more pronounced, as some are inclined
to believe they will; there will probably be a greater tendency to
trade these positions.
This should have a beneficial influence
upon the market for Treasury obligations, especially in the longer
available.
in
seen
enormous
for
Development
tional
the
of
ham
old combination, that is, moderately increased buy¬
inventories that
sized
Bank
routine.
matter of
have
I
submit the information because it
this
had
same
passing indications that these
mills and many other factories in
these areas which would never
in Toronto told me that it
Bank
and
of
Meeting
Governors
Interna¬
t
apparently enough to indicate to certain money market followers
that a better trading market is quite likely to be witnessed with
the passing of time.
Although it is reported that positions of
dealers and traders are on the light side, there are more than
textile
seen
t
ing orders and slightly decreased liquidation, continues to have
a
favorable effect upon the government market. " Volume is
still on the light side, which means activity is not too sizable, but
I have seen in Brazil that with
project itself but also
to cover the company's Other ex¬ the aid of the Bank the course
of whole rivers is diverted as part
penditures. These are exactly the
same
questions in which we are of the vast scheme for supplying
interested. Therefore, when I first cheep power in the Rio and Sao
went
•
preside.
ginning-
w
-
>.
is rapidly becoming a very important force again and this
resulting in larger purchases of the taps and the longest eli¬
gible obligations. The Vies, the 1959/62s, the September 1967/72s
and the 2%s of 1960/65 seem to be sharing the spotlight.
the
plete
..
come
speed of some twenty miles an
a
<
is
cheaper than any availably from
whether other European sources being pro¬
of
the duced in a continuous process at
are
•/,•.
volume, the high-income issues are showing signs of com-*
peting much more favorably with them as time goes along.
In-,
in accordance with the
are
original
the
cur¬
know-how
.
(
of
the
of the
example
adapted
of its kind in Europe—an
ing according to schedule,
whether the expenditures both in
,
Boards
struction
in line with
was
Although the near-term obligations continue to get the bulk
area.
modern mill
most
.
,
there two years pre¬
the
Refunding of the called and maturing issues, by"
.
Treasury, with 11-morith 1%% certificates,
expectations.; :
;
'. ■.>
Toronto,
was
future.
near
to
Annual
International
the
a
There
quarters that the growing interest in government securities
bring about greater activity and a better trading market in
Sixth
the
the
ofcourse,, has and conversations with other peo¬
to
know what
is happening
in ple had given me no real impres¬
Brazil—whether the progress of sion of what I saw when I arrived.
in
Finance
The
will
,
ment
convene in
Washington on
Sept. 10. Canadian Minister of
many
official business
and represented the Bank at the
official inauguration of a new cold
mill
Will
short-term market that continues to be holding an even
despite firm-to-tight money and a long-term sector that is
edging into new high ground for the move in some instances, give
the Treasury obligations a more confident tone.
Although volume
and activity have not expanded appreciably
yet, it is expected in
be in Belgium on
Monetary
Fund to Hold Meeting
A
speak now not of what I have read
rolling
Bank and
keel
shall
I
Governments
on
By JOHN T. CHIPPENDALE, JR.
viously all that was visible was
Canadian a hole in the ground. Every month
: company
with its, head office in since then the reports told us
Toronto, while the projects are about progress made and our in¬
being carried out by subsidiaries spectors confirmed that these re¬
located in Brazil. The manage¬ ports were correct.
But reports
which
pany
Reporter
and procedures of
and before I close my
for frf.'A few weeks ago I happened to
of
management
affairs.
own
Our
Loans
about the
in reports, but what I have seen
•
■
well-run for. 'myself.
any
wants
efficient
the
of
you
things that
same
management of
organization
we
interested
are
we
;in essentially the
remarks
borrowers? The
our
that
to
23
Governors of World
something of the practical results
want which our loans are making pos¬
Borrowers
j
v
the
policies
Bank
the
of
Required
result,
a
Results
Practical
main
Information
;
as
solved.
was
I have spoken
on a
temporary basis.
and
borrowers
problem
(879)
WINTER
L.
Bemis
PARK,
has
Fla. —Edwin
become
with Craigmyle,
connected
LONG
Rubin
BEACH,
has
joined
Chronicle)
Calif. —Alex
the
staff
of
Pinney & Co., 128 Douglas A. Hammond, 5327 Lake-
East Park Avenue,
South.
wood
Boulevard.
15 Broad
Street
'45 Milk Street
NEW YORK 5
BOSTON 9
WHitehall 3-1200
HAncock 6-6463
'
24
The Commercial and Financial Chronicle
(880)
000
Stock
Public
Recently filed plans
period, with increasing proportion specifying 10
companies help finance executives.
Standard Gas & Electric
mately
Stock option Plans for compen-
portfolio may be valued approxi¬
sating executives
follows:
as
Philadelphia Company
5,025,000
Wisconsin
Public Service—
2,000,000
Oklahoma Gas & Electric—
Price
1,210,000
the
1
tax
Oklahoma
4.3
—
$6
*Duquesne
2.9
4.0
Philadelphia in
a
1.7
stocks shares of which
(2)
the
Stock
The plan included payment of $3.50 a share in cash for
of the Philadelphia 6%
preferred, but judging from
the current market price of the preferred, around 61, the company
may have to pay about $8 in cash (the value of the new Duquesne
4% preferred is estimated at 53 based on the current price of the
$3.75 preferred).
This would require about $4 million cash, and
the rest
tions
share
common
stock.
the earnings working out?
mately
plan becomes
effective.
In 1949, the company saved $1,850,000 in taxes
by
filing a consolidated return, but the annual report indicated that
"a major portion of these reductions will not occur in
1951, and
thereafter."
about 2V2
Federal
times
as
taxes
for
large
as
the
12
months
in the previous
period and included a substantial EPT.
The company's rate increase went into effect
early in Feb¬
ruary, 1951, amounting to nearly $8 million.
There has been no
final decision by the Pennsylvania Commission as
yet, and if it
eventually approves less than the full increase, it can require the
company to refund the excess.
No
The figures for June include
only a
amount
is
not
increase, but with EPT
retain
and other
about $2.
proposed
adjustments, "normal" earnings might be estimated at
On this basis, and taking into account the fact that the
$1.50
Over
the
relieved of
dividend
will probably be free of the 4 mills
price range of 22-27 seems reasonable.
longer range, particularly when the company is
a
profits taxes and the big construction program
is completed, these estimated Values
could probably be increased
somewhat.
The company has benefited
considerably from itsprogress with the five-year $112 million
development
excess
program to
modernize
generating
equipment;
Phillips Station in the latter part
80,000 " kw.
of 1949 and
were
added
at
80,000 in September/
1950; 95,000 kw. will be
installed in December of this
year at
similar unit will follow in 1952.
However, the
company may not obtain as much benefit from reduced fuel costs
as first anticipated because of the
constantly increasing demands
for more power.
The company recently contracted
(along with
El Ramar and
a
Cleveland Electric
Illuminating and five other companies) to
furnish the output of 100,000 kw. to TV A for use at Oak
Ridge.
ru
-
i
y
^ tL thiJd
j-*
the
1«
.
low
of
Quarter
1950
n;b® tbl™c®
^st.Kb«ln
™asb
tJ ,,f,I
-
^Pree. Mutual swings
ts reicentl;y.
^
spending
bank de-
.a
msuxuxiona/ pres- „
nignr ana tne
wh
•
pered 40% or more of the opvo.H-irt«d iS,nf
^
SLlon
il--ThPrZt-tell
less. The rest fell
or
or
of
more
capital gains.
40%
chose
10.
Incentive Spread Over Times
(61
An
nians
increasing
6 vide
n r
of
oi
number
of
cumulative
to
to
snread
spread,
its
its
that
not
than
more
10%
of
the option could be exercised each
year,
the
0f
cumulatively.
One-fourth
plans studied had some
such provision
n\
\r*n,
■
w
Approxiof
the
th
to
finance exercise
ODtions
paymil^
Textbook
Until
we
Cr dit
about
o?
-money
edly
textbook
a
inflation.
There
expansion
ous
Inflation
was
of
undoubt-
of
case
was
credit
simultane-
a
central
from
.
nual
salary.
varied from
professional -financial
whether
the
circles
as
abrupt decline in
high grade bonds and preferreds
did not presage potocfArioc nf
an eventual downvarimic
*urn m var*ous categories of more,
sPeculative securities, including
mnra
stocks.
common
The
bond-stock
sequence had been considered
Sp'26 the c~reaftion
the Feder.al Reserve System,
In so^e Previous cases, as m 1928
and ^29,interest rates rose bond
pi"lcesdecll?ed, a*}d ctr?2 ^
?
severely contracted. Yet the stock
market continued to rise for 16
and
T"♦!? the publ'C si.mpiy
font nued
continued
to
buv
to buy.
we itnay conclude to-
day regarding the operation of the
bond-stock sequence in the Marchadl.Y Penod °L 1951 js that stocks
?,esrated. or_ bac.ked and filled,
percentage
This
a
c
ePec.
brake but we can scarcely say
tfeey thre™, the stock market into
t
low of 35% to
top
a
siting
bond
prices
acted
as
a
reverse. The picture is not clear,
of several years'salary
but in matters of this kind it sel¬
Perhaps the answer is that
stock yields
are
still high, far
higher than in periods when a de¬
cline
or
collapse followed. For
example, Moody's 200 stock aver¬
age shows a yield of 6.20%, com¬
pared with a yield of 6.17% in
June, 1950 and 7.04% in May, 1949
just before the bull market began.
Perhaps
1
this
s
as
period
one
should
uc
be
auuLuu
of mild reaction
or even stabilization. Stock prices
backed and filled. Certain
groups
i-
mid-February 1951
witnessed what
a
»
About all
considered
*i
risen
dom is.
earlier opin1
T
has
\na®x fnas, "sep
,,
several nrovided for
—
in order.
m
index
'
t
That Bond-Stock SequenceLast Spring there ensued a cohsiderable amount of discussion in
,
J^Sc plai^forSine -tire* H"18
Sives
In Fourth Phase
appears
municjoai
""n'clpa'
10-year plans, for instance, specifled
Bull Market Now
ion
o 00«t
of
Standard & Poor's domestic
■1"-.rfwt-, *!■ 11in
for
ontions
options
vided for lendi
market
95%
our
;fif?nrp
whfle
to
Continued from first page
in
government and business who
felt the impact of credit stringency
more
than
rather
others
vocal
began
their
and
to
be
protests
bank
reached all too receptive ears in
credit, a monetization of Federal Washington. Prospects of a ceasethrough Federal Reserve fire in Korea which seemed
bright
System bond purchases, a marked in June and July stimulated the
stocks bave advanced but
earnmgs>
from
while dividends
$3'08
At
any
so have
are
up
$4 15
t
rate
the present situa-
...
w
tlon \s more orthodox, relatively
sPeakin£> than that which termi^ated last March. At least we
bave the renewed leadership of
bigh-grade bonds to follow without the benefit of
"pegging.'
debt
growth
of bank
loans,
a
rise
in
"lending
industrial and private inventories
of goods and finally an inevitable
jump
in
commodity
First
If
now
a
Pennsylvania tax,
five-
a
Three
consider
we
market
At
as
usual" advocates,
Current
this
Fourth
point,
Phase
somewhere
of
the
bull
the
the
bull
pective
in
and current phase
market began. Pros-
buyers
of
shares
The Future Trend
While
cannot
we
predict the fu¬
ture; we have much to guide our
thinking in a close observance -of
July, the fourth
Phases
that
commenced
The
prices.
being escrowed.
little over one-third of this
applying the company would
very large portion of the increase when the higher
rates become effective for a full
year.
On a rough estimate,
perhaps 25 cents more might be carried down to net which would
bring earnings up to $2.15. Considering pending higher tax rates
annual
for
—
In the 12 months ended June 30,
shares
company earned $1.90 (estimated) on the 5,750,000
which will be outstanding when the Standard Gas
were
95%
as
reexamination of
In the past there have been
many estimates of the potential
earning power and market valuation of Duquesne Light. How
the
About half of the
called
price of 21
reasonable.
recurt
,
—IS if.mw
is
•
a
The present market
years
specifying eight
at
value
cash, or a total of
bank loan of $16 million
outstanding, which makes the total priorities $26 million.
De¬
ducting this figure from the estimated portfolio value leaves a
range of $112-$140 million, equivalent to about $21.50-$27 per
The company also has
will
xu •
^
v
(4) Three out of four companies'utives when
they take up the
priced the stock optioned so as to options.
However, 5% restricted
take advantage of the
new
tax the amount of stock
optioned to a
law which classes profits on
op- percentage of the executive's an-
if the company also has to redeem the $5
preference stock at the
call price of 110, this would require $6 million
$10 million.
10
option period, almost a quarcalled for seven years, with
ter
The SEC staff has rejected the retirement proposal as inade¬
share
Exchange that
enough.
studied
plans
(guaranteed by Philadelphia).
ended June 30
-
"a2f
year
preferred
quate.
in
®
the portion over 100% of mar-
exercise
exercise
periods, with
proportion speci-
long
ferred (which it acquired at $100 a share from Duquesne last
August), but this is earmarked to retire the $24,557,000 6% pre¬
6%
* T
.
of their stock
increasing
lying 10 years.
None extended
over 10 years,
apparently following an informal opinion of the
The company also owns about $6
million Equitable Gas debentures and has about $2 million in
cash, making a total portfolio value estimated at $138-$16-3 million.
Philadelphia also owns $27.5 million of new Duquesne 4% pre¬
Gas
The
law provides that profit
on an option given at 85% is taxable as income on that part of the
profit between 85% and 100% of
market value, and as capital gains
or
for option to executives,
an
sells around 7 on the Curb).
Consolidated
8.9%
was
£as 1S> seasonalIy adjus;ted^ lhis
new tax
on
1951
f J single participant;was^ higher in ,md „ s.:; Treasuries j-rom i03;7
Plans involving a few top men
1552,.
,
months cover longer
ings would be worth about $126-$154 million:
The 51% interest
in Pittsburgh Railways can be valued at $4 million (the stock
none
V
,
(3) Option plans filed in recent
up nearly two-thirds of its total portfolio.
Does the
price of 21lk for Philadelphia Company common reflect
anticipated breakup value?
Using the valuation of $22-$27 for
Duquesne Light mentioned above, Philadelphia Company's hold¬
are
executives.
Periods
$1,730,000
including
were
quarter of
the most
was
Recent Plans Cover Longer
pany make
seems
cent
panies offered 8%
the terms of the plan might be improved, which would
the
they
;
echelon
re-
companies set aside 2%
or more
recent
on
lower
stock; one-fifth set aside
6% to 8%, while 11% of the com¬
As indicated above, Standard's holdings of Philadelphia Com¬
therefore,
executives,
■
per
these estimates.
and
of
because
their
$167), and $155-$171 for the $6 stock (selling recently at $148).
stock
85%
less; 22% set aside 3% to 4% of
mated range of breakup values for Standard Gas $7 prior prefer¬
ence
stock would be $176-$194 (the stock is currently around
ferred
—one
four—set the price atv
the market, apparently
company in
smaller
Five
of the
earnings of $1.62 a share and the dividend rate of
The stock of Duquesne is estimated to be worth between
22 and 27 (as explained below). Based on these prices, the esti¬
each
few
a
a
set
aside 'for
executivl
option in the group studied. 26%
recent
raise
stock
shares
$1.10).
Of course,
wide
a
of
rest
effective rise
full
popular proportion of outstanding
of the three
The potential price
one
held by the public.
of Wisconsin Public Service may be estimated at 16-18 (based on
are
option
discloses
amount
ing purposes.
preliminary distri¬
selling around 21, is the only
the
the stock
second
ehose
The
an
in personal net savings (gross in¬
come
less taxes),
which in the
50, while the rest included more
percentage of than 50 executives. Maximum
their outstanding stock for option- number of shares offered to
a.
bution—slightly more than needed for these exchanges.
Oklahoma,
to
quired
"'Standard Gas would receive about 1,000,000 shares
of Duquesne from
in
plans of
the
since
price.
of the situation is
"
T
offer
2.1
2.6
of
1950
100
filed
market
characteristic of the present phase
longer
years. Few
cover
«35%
while
/
—No. of Shares of Common Stock—
$7
man-
market,
expands the gov¬
mortgage insurance
by $1,500,000,000. Another
offered, the option period,- the ket.
'
sh°uld expect high grade- bonds,.
ci•'
and preferreds to rise further.
option price and other provisions.
(5) One-third of the plans m-ready the-yieid on Moody's AAA
(1) As a general rule, big cor- eluded less than 15 executives,
COrporates has dropped from the
porations, and those restricting the one-third covered between 15 and
proposed to retire each share of the prior preference stocks with
the following packages of securities:
Wisconsin
in
law
variation
1951, the company
than
more
companies
liberalization
$166
price.
Under the plan filed with the SEC Feb. 28,
McKinsey & Co.,
little
listed
^Estimated minimum
con-
consultants, 60 E. 42nd
Street, New York 17, N. Y.
McKinsey & Co.'s intensive study of
25
Net Cash Assets
no
agement
$108
32
21
of
Patton
(Millions)
21V2
*16
follow
sistent pattern, according to Arch
Value
No. of Shares
less and
or
ernment's
Analysis of practice since liberalization of tax law shows
absence of consistent pattern.
By OWEN ELY
Electric's
Option Study Reveals Cautious Use
Thursday, September 6, 1951
.
powers
Utility Securities
Standard Gas &
..
again
recent events.
,
.,
.
Let
us
make
a
list
,
a.n<^ attempt to find out whether
J4 indites a continuation of a
trend' a new trend or a reversal,
low
found
themselves
1949, its initial
phase terminated with the Korean
rising
bond
prices
and
outbreak
phase, speaking creditwise, was
short, having lasted merely from
relatively gloomy days of March,
(2) The farm bloc is stronger
April, May and June jcould be than ever and is in position to r«forgotten. Washington had had a sist any move to tamper with!
gentle dose of deflation and did price support legislation.'"
'
not
like
it.
A
possible
Korean
(3) There is extreme difficultycease-fire proved a political ex- in cutting down non-defense :cuse.
Regulation W was revised spending, /
March to
to
point
of
one
year later, and the
phase with the change in
second
Federal
1951
ing
Reserve
when
prices
at
June
were
policy in March
government bond
unpegged.
The
third
July, when the tightenbegan to be cumueffective. For example,
up process
latively
Standard & Poor's Index of U.
S.
Treasury bonds which had stood
at 107.7 in
to
103.7
early February dropped
by June, and domestic
municipals
while
from
Moody's
140.5
AAA
to
-
loosen
and
credit
up
.
in
a
period
preferred
expansion.
consumer
of
stock
The
credit;
Wage-price regulations
were
inflation.
;
r (4) Credit
controls.?have just¬
been relaxed and there is no pros- -
the increased costs of doing business.
A defense housing bill has
*/(5) Escalator clauses in indus->
trial wage contracts are gaining'
rather than losing in favor. ' ;
J
,
things, weakens Regulation X iy
??sSs1onnflS
bonds during this period increased
reducing sharply minimum
their yield from 2.69%
payments for houses costing $12r-*cies such
to 3.00%.
•
altered with the result that the pect of tightening them
up once
prices of manufactured goods may more short of all-out war with
be more easily raised to reflect the;Soviets.'X-
127.7,' been enacted which, i among other
corporate
(1) Washington is far more
afraid of deflation than of gradual
towmwarious
government
as the
lending.&geii-;
FHA,s.the VA, the
Volume 174
FNMA
Number 5044
•
the
and
.
The Commercial and Financial Chronicle
.
.
-Export-Import
(7) There
is
tax "where the
cease
disposition
no
to
In Labor
Capital
must
continue
goods
expansion
high rate for
a
for
its
Our presently rapid growth
of population is an anti-inflation¬
impose
factor of considerable impor¬
tance.
Some
fully
There
of Senator Maybank
associated
prices.
friends
They
of
and his
high
high.
Green,
Company
Day,
Sept.
President
of
3,
the
American
Federation
of
Labor,
Philip Murray, President of
and
the
CIO,
strongly
denounced
about
cotton
is
the
There
Charles
is
the
of
case
Mr.
stances.
„
There is the
case
much
a
Kennecott
too
Copper
which
unwilling
to
seems
Pb.tlpMurr.r_>
defense
against aggression.
and other
the
of
support
Sneaking
•
program
Mr
topic
this
on
psEhSm-
have
Labor's
and pledged
Communism
sub¬
grant
stantial wage increases
'
^
the
fringe benefits to its employees.
Why not, since that corporation
pays an excess profits tax which
is to be raised
it goes.
to 82%.
And
What it all adds
up to
The country and its
this.
leaders still
like
inflation.
In
.
This
of
Labor
sides
two
sion
time
when
national
of
sound
labor-
that
.
from
one
only,
namely
cost
leaders
JS-'y-yrj
Risks
■y
£xt*an.d
should. In Washington,
special-11nterest lobbies pre,an aI}ti-inflation law that
woald have held pr'ces dow"- In
Even
there are risks that
purchasers of common stocks must
assume, which cannot be ignored.
so,
When the ascending phase of our
rearmament
program
comes
to
a
peak and the maintenance phase
begins, the need for large capital
goods expansion will be
point
the
overbuilt,
at
least
reaction
a
over.
At
may
be
economy
temporarily,
in
business
un¬
its
out
Under
has
dictatorship
the
Red
the
to
en-
State,
regime the
free
voice of labor is silenced, its free
paralyzed. Strikes are foron
pain of death, pro-
will
bidden
tests
punishable
are
Millions
prisoned
in
slave
crime.
a
as
workers
of
im-
are
labor
camps
sub-human conditions. Yet
under
or
Korean
Soviet
by
her satellites since their
invasion
bogged
down.
Soviet Russia dares to pose
a
as
complicating
factor.
For
the
time being, however, inflationary
forces are still in the ascendency
by
Communism
"Today
is
bank-
rupt. It has failed the people so
completely that it dares not let
compare
their conditions
wide margin and holders or
prospective buyers of common
them
stock
with those
a
must
like
the
a
depreciation
danger of
temporary
setbacks
currency
present is the
mistaking
such
guide themselves ac¬
The chief hazard in
cordingly.
period of
as
we
apt to experience
are
from time to time for definite
re¬
versals of trend.
the
Dow
ing 270
to
less
J ones
25-point drop amounts
a
than
coming
and
more
could
:
drop
return
bonds.
might
to
At
still
be
public
more
2%
be¬
common
yields
5%, which
higher than
AAA
from
point
that
present
prevailing in the free
world beyond the Iron Curtain,
In desperation, the leaders of the
Kremlin are reaching out beyond
their borders to seize the wealth
of their
neighbors.
They have
come
to the conclusion that the
Communist way of life cannot coexist with the free way of life,
They are determined to conquer
the entire world, by infiltration
and
subversion if possible,
but
even
corporate
quotations
considered
statis¬
if necessary.
war,
of tyrants to subdue the
In
tempts
world to their dictatorial will.
each
case,
self
: -
Hutchins & Parkinson Adds
(Special to The Financial Chronicle)
BOSTON, Mass.— May Noonan
is with Hutchins & Parkinson, 27
Street, members of the New
York and Boston Stock Exchanges.
With Inv. Research
Gilmore
search
is
Mass.—Donald
ence
his determination to be
and
self-governing. Through the ages,
people have been forced to work
for and to sacrifice for the good
of
with
Investment
there
"But
Re¬
Corporation, 53 State
Street.
We
life.
endurance.
by
and
is
inherit
the
but each genera-
tion must earn its
R.
^
and
aggression in a world struggling
to be free is perhaps nature's way
of testing man's love of independ-
love of freedom,
(Special to The Financial Chronicle)
con-
•
"The recurrence of tyranny
things
BOSTON,
would-be
the
of civilization was himvanquished. So will it' be
queror
with Stalin!
tically reasonable.
State
by
"History is replete with the at-
average
• say
about
be
Under
the
conscious,
would
the
10%.
with
conditions,
stock
After all, with
Industrials near-
enjoyment of it.
a
limit
to
our
We cannot stand idly
allow the international
conspiracy
to
take
Communist
over
world,
the
one
free
nations
con¬
a
for
programs
bettering
"Rather,
beings.
demagogues
the
hope
that the excitement and
which
they
suspicion,
will cloak their
sow
do-nothing records. They oppose
the Fair
Deal program because
that program is aimed at promot¬
ing
economic security, strength¬
ening civil rights, and helping the
general good and welfare of all
the
people.
"Labor
America
in
has
always
..
£? samf
bav« bf"
^fitting a.tax
f
,
™ tbat p"ta the .a™rag® Tan s
•a p'
c man s taxes
,
"The profits of big corporations
■
fought
without
most
same
exception.
period, the cost of liv-
Today, it stands at
ily
During
as steadall time
an
high—and there is danger that
nving COsts will move on to even
loftier peaks Each rise in the
the
for
liberties
civil
strengthening
that the guarantees of
Rights
be
cannot
they will crumble
"Each
of
any
cause
of
duty
to
discrimination
color
"Workers know the
can
work for
and
for
other
82nd
has
Congress
refused
to
to
our
keep
our
house in order.
racy
the
and
to
overseas
have
of
or
ourselves
friends
js
maioritv
be-'
religious
belief is
grist for the Kremlin
propaganda machine. We have a
race,
whose income it nibbles Sway. It
a
citizens
our
democracy,
that
or
away.
of
case
against
the Bill of
neglected,
cost 0f living brings untold hardships to millions of Americans,
tragic
ot
the
and
expansion
of the protection we offer to the
rights of minorities. We know
have been climbing upward, al-
«jn
new
No
tactic
of
matter
Soviet
peace
pleading for peace,
deceptive
the
how
appeals
may
be, no
matter how treacherous their mo-
enact
iaws
to
curtail
remedies for this malignant process
of
inflation.
We
did
so
not
tives, the fact remains that they
never
would have changed their
benefits
practiced.
freely
ot
We
task to show that democ¬
a
in America
us
peoples
in
other
of
the
by one. We know from
home,
must build
we
We
defenses.
our
stabilize
our
must
spread the burden
of
sacrifice
equally
among
all
groups in the population. We must
and
economy,
carry
historic ^campaign,
our
on
against expanding monopoly—and
we
must always seek to promote
only in the interest of our own
the welfare and security of the
members, but for the other milthey realized their lions of Americans who do not people of this country.
"Abroad, we must continue our
chances of victory by aggression have the protection ;of militant,
had collapsed.
The Communists democratic trade union organiza- program of help—both economic*
and military—to other free peo¬
don't cry quits when they are tions. ahead. By the same token, we in
"In this country of ours; with ples. Through the European Re¬
America cannot afford to relax its tremendous
technology and covery Program, the North Atlan¬
tic Treaty, and the Point Four
our
efforts
or
to diminish the its rich resources there are ten
tune
unless
,
scope
of the defense program
merely because we have won the
first
skirmish
in
the
struggle
and one-half million families trying to ekp out an existence on
incomes of $2,000 a year or less,
These ten and one-half million
avoidable.
Much depends upon
claim itself the defender of the
families clip no bond coupons;
the time factor and how long in
oppressed in other lands. Never with reinforced determination to they don't get dividends from
advance the stock market will
was
a
greater mockery and a complete the job of protecting common stocks; they don't buy
discount the peaking-out process.
more bitter distortion of the truth
world peace and security.
new homes and new cars. In fact,
The 1952 election in November is
attempted.
"The workers of America are they don't buy even enough food
a
and pro-
government'
'people's
no
low income families.
"The CIO, I am proud to say,
worked with other fair minded
organizations to seek legislative
Soviet Russia. The
workers
slaved
attempted
been
accident
no
show
the lives of human
hardship for the great number of
of Soviet have wiped
Communist
has
Russia
have
communists have
vestige of freedom for
within their domain. The
labor
driven
and
now
last
the
halted
been
back. In the meantime, we have
achieved substantial^ progress in
building up a full-scale defense
pr°gram Powerful enough to
deter aggressl0n at any danger
■■
records
opposition to progressive,
forward-looking legislation. They
"At
and one source
source,
-
these
sistent
economic
aggres-
attack
external
"The
tangible
_
count three
results. The
of
some
lands.
and by internal regression.
early stages it's kind of fun, and
people have figured out the
con¬
and
can
find
can
their
stopped publicly brandishing
comes^ the sword and have adopted the
external
by
few
which, though huge, is
•
.
celebration is
that the ideal
Day is under attack on
our
year,
clouded by the fact
its
cealed.
,
we
point. Finally, no new aggression
■
and
In
that
strong
United States and in the House of
Taft-Hartley
Communist aggressors in Korea jng jlas been rjsing just
p....
Gr..n
William
needed investiga¬
tion of the RFC, sees no reason to
abolish it.
There is the case of
that
as
*
A
major
Fulbright who, after having
headed
is just
Korea,
Already
of Sen¬
so
in
place £°r the pr0teCti°n °f W°rld
circum¬
soon
stand
first
our
p
not in¬
are
flationary under certain
not
law.
our¬
Taft-
E.
wage escalator clauses
ator
bad
emergency,
agent of
we have
maintained it against great odds.
Despite the tragic loss of life and
the vast expense incurred by our
intervention, Korea may go down
in
history ks one of the most
courageous
and
successful ex-
Wilson, the President
General Motors, who thinks
of
a
"You
Representatives. It is
"In time of peace,
is
both
America
made
wave
of
liberties
demagogues in the Senate of the
Hartley Act, saying:
United Nations, and
the
utilities will do it for free and pay
taxes
on
their earnings forever
after.
the
attack
the
of
the
that
made
far-off
of
though private
even
occasion
.
Senator Lehman who wants to ap¬
propriate funds for Niagara power
development
to
address
the
tidal
a
fear—fear
and democratic.
violation of management relations are essenthe borders of any free land by tial
to the country's welfare,
the forces of dictatorship is an Taft-Hartley is a dangerous law.
invasion of our own freedom and ^ should be repealed—the sooner
a threat to our own security. In the better, in the national interself-defense — and self-defense ests.
only—America stands committed
"Corporate greed is directly retoday to halt and repel any fur- sponsible for the fact that you, the
ther Communist aggression.
American consumer, will be pay-
experience
"We
March,
case
launch
to
abnormal
have
denouncing
to
used
his
price controls.
which
for
There
Labor
on
William
the
over
cotton
has receded from its recent
1951
the
worried
are
quotation
is
addresses
Broacasting
network
Documentation
documented.
the
radio
National
These statements may be sweep¬
ing abstractions but they can be
case
In
severer
Philip Murray of the
addition
Communism
Murray attacks Taft-Hartley Act and calls
repeal while Green denounces Congress's failure to
(9)
in
CIO,
enterprise system.
the time being.
ary
President
Federation of Labor, and Philip Murray, President
Congress of Industrial Organizations, voice opposition
of organized labor to Kremlin's aim of destruction of free
of the
at
seeking
of
Murray Attacks Taft-Hartley Law
Day addresses both William Green, President of the
American
trying to soak the rich and
the corporations.
(8)
people to unjustifiable
profiteering."
selves, fear of
is" and to
money
American
Labor Leaders Denounce Communism
Bank.
25
(881)
against Communist aggression. On
the contrary, we must forge ahead
concentrating on that goal and
will not pause until it is won. On
this Labor Day all Americans can
take pride in the achievements of
free labor during this defense
program. They have fulfilled their
appointed tasks faithfully and
loyally, surpassing all previous
for a decent diet.
,
"America should not tolerate a
condition where ten and one-half
million families are forced to live
on a $2,000 a year income—which
is nothing more than a starvation
income.
.v- •
;
,
"To the family on a starvation
production records.
income, and to other families in
"But the danger to America the lower income levels, words
does not come only from external and slogans can't take the place
sources. Our people, and espe- of decent food and clothes and
cially the workers of our coun-
adequate shelter.
being simultaneously
"There are vociferous orators
to
aggression
from abroad in the land who are trywithin. That aggression stems not ing to smear every program for
from Communism, but from the human betterment. Their instruopposite extreme, Toryism. Every ment is hate and hysteria. Somehousehold in America is now ex- times their slogans are antiperiencing the damaging effects Semitic, or anti-Negro or antiof Toryism. The cost of living Catholic; sometimes they malign
has reached an all-time high, organized labor, or the aims of
Every housewife knows what that the Fair Deal. Whatever device
means. It means lower standards the demagogues use, it is aimed
for the American people.
to spread fear and suspicion and
"In the months ahead inflation distrust.
is bound to become even worse.
"We must not heed this call to
The purchasing power of the dol- division and despair. We must
lar bill will diminish day by day. reaffirm our belief in the fundaAnd when the security of the mental freedoms
and liberties
dollar is imperilled, our free which have made America great,
American way of life is likewise America has benefited because
in jeopardy. Who is responsible our people have always practiced
for the failure to halt the disas- freedom of speech, freedom of
trous inroads of inflation? The thought,
freedom of religious
answer is clear to
every citizen worship, freedom of assembly,
who reads the newspapers. The
"But today in America, the
Tories in Congress, from both demagogues and the peddlers of
political parties, teamed up to hate are endangering these basic
prevent effective price controls freedoms. For their own, selfish,
and
deliberately subjected the reactionary purposes, they are
try,
are
subjected
Program
develop
to
ica
is
truly
backward
showing that Amer¬
areas, we are
concerned
about
thcr
welfare of people everywhere, and
the
freedom
of
defense
itsr
and
It is that
institutions.
recognition
of the needs of human beings for
better
a
life,
most
scales
which may tilt the
heavily in favor 08
it fights the ruth¬
of
unprincipled
Soviet-inspired Communism.
democracy
less
as
challenge
have
members
"Union
recog¬
nized, since the birth of this na¬
strength.
we
cratic
been
tion
Through
our
have practiced
cooperation,
and
demo¬
we
have
proud of our great contribu¬
the constant progress o2
to
nation.
our
brings
labor
cooperation
that
tion,
unions
/
,
principlesdemocracy,
friendship
and
united action, our America can,
"Through
the
same
of
meet
and defeat the
challenge of
propaganda and aggression that i&
being felt in every section of the
world.
' yVvC'
this
"On
men
and
Labor
women
Day
of
1951, the
the
CIO-
pledge once again their full sup¬
port to the cause of peace and:
democracy — which will triumph,
over the evil forces that threaten
free world."
our
Samuel Dobkin Opens
(Special to The Financial
Chronicle)
-
Calif.—Samuel
Dobkin is engaging in a securi¬
ties business from offices at 532T
LONG
BEACH,
Lakewood Boulevard.
;
;
Joseph M. Gross Opens
(Special to The Financial
LOS
Chronicle)
ANGELES, Calif.—Joseph.
M. Gross is
engaging in a securi¬
business from offices at
North La Cienega Boulevard.
ties
521
26
The Commercial and Financial Chronicle
(882)
study of the entire situation
been
effected
by
has
Continued
competent
a
from first
4
Thursday, September 6, 1951
page
lawyer.
Securities Salesman's Corner
Gifts made to heirs, even
when subject to the gift taxes, can
also
bring
about
substantial
savings,
It
By JOHN DUTTON
is
the
High Federal Estate taxes
Create New Business Opportunities
tax
t
not
within
this
of
scope
r'
ability
my
column
to
als
regarding this intricate
However, for those se¬
subject.
who
men
would
like
tion that
The
ness.
eral
15
heavy increase in Fed¬
taxes during the past
estate
has opened the
years
are
men
door to
any salesman, who is qualified to
bring
the
dreds
of
facts
who
women
the
before
thousands
of
men
securities
liquid
during the period in question. It is probable 'that
many of them have their roots, in part at least, in a per¬
to
the
can
during
received
income
the
lifetime
of
curities
can
the
of the
owner
be
se¬
living
for
used
and the family's general
There are opportunities
expenses
hun¬ welfare.
and in using gift exemptions.
help regarding
the
need
of
this vital matter of providing
savings
necessary liquid assets they will
need to pay death taxes, when
which includes the marital deduc¬
that time eventually comes about.
also
Some
meet
individuals
least
at
able
are
part of these
barred
protection.
because
of
They
Continued
health.
Many
danger
age,
of
their
from
of
estates
I
any new
wrecked, and a lifetime of
any improvement in foreign econ¬
dissipated,
because
they omies.
will
not
have
sufficient
liquid
With mostly non-union labor,
assets to pay up Uncle Sam.
If
such is the case, it will force the the company may be vulnerable to
labor organizers, but it has long
disposition of property which they
had always believed would have had a generous labor policy which
'
been a source of protection for should prevent any unrest.
effort
their
194
There is
Taxes
and
Yesterday
—Federal Estate Tax—
Jan.
1,
Estate
1935
$5,600
150,000
14,100
prom¬
for
a
zb%
a
dividend
siock
Richardson
1
1.71
1.86
.
2.95
,
3.35
i:!1949
1.57
.1
1950
3.95
'
Company represents
♦The
v/-v.
decline
in
33,600
68,600
120,600
in
1949
181,600
Notice that
a
modest
the
even
net
with
man
taxable
$100,000 must today face
and
of
estate
Fed¬
a
stantly
ducing
the
family
of
this
man
as
might have to pay would run
high as one-fourth of the value
of
a
the
net
greater
in
taxes
whose estate
in
This
than
amount
Federal
000
itself.
estate
by
man
valued at $200,-.
was
1935.
Or think what could
who had
a
ship and owned
a
a man
at
$560,000
estate
inheritance
for
tax
deducted his
exemption,
tax
happen to
proprietor¬
business valued
After he
purposes.
$-30,000
sole
the
Federal
on
valuation
his
$500,000 of
the
net
estate
of
would
compel his family to raise $145,000 in cash to
pay the taxes due.
What if the business was not in a
sufficiently liquid position to ad¬
this
vance
It
might
sacrifice
to
have
in
to
order
his
be
money
sold
to
heirs?
settle
at
a
the
In
know
your
community
some
timber
you
may
individuals who have
as
holdings,
large farms,
closely held business
acreage,
firms and real estate.
have
are
no
to their
die.
H.
o.
They think
k., but possibly they
idea of what
loved
if
ones
Lyons
der the trade
Insurok,
can happen
they should
Many people do not realize
to
of the
May
11,
1951,
profits tax
ex¬
will
company
be
of the order of $2,150,000."
The
enjoys
company
an
-excel¬
lent balance sheet and as of Dec.
•
name
of Plastok and
the more im¬
are among
portant products. A new sheet
plastic for table tops, counters,
etc.,
introduced
was
trade
of
name
Richardson
under
Plastok
in
the
serves
the
1950.
airplane,
air
conditioning, automotive, busi¬
ness
machines, electrical equip¬
ment, food machinery, oil well
equipment, paper mill machinery,
radio
and
television,
mills,
textile
steel
vacuum
soft drinks,
machinery,
cleaners, and many other
par.
In
the
last
36
dividends
years
have been paid in every year but
one,
an
and at present the stock is
on
indicated $1.40 annual rate. In
line with its past dividend policy
the company
dividend
often supplements its
with
year's end. In
son, on
an
extra
summary,
the
at
Richard¬
the basis of its past record,
represents
commitment
a
semi-investment
combined
with
In
the
company
leaders
in
today is
precision
plastics engineering, and is recog¬
nized
a
lated
and
as
a
are
low
cost
producer.
considered excellent
good volume of business
to
the
there
armament
should
reconversion
be
re¬
program,
no
problem in operating
decentralization
are
that time
in
With Inv.
means
a
that in addition
sound program
program
three
operation.
new
and
plants
Plants
located at Melrose Park,
markets
■
sanity permeates Con¬
as a body, as well as all elements in the exec¬
utive branch of the Government from the White House
taken
down.
worse than is thus
people share, if they
do not inspire, this indifference.
Scorn for principles of
sound fiscal management distilled from centuries of ex¬
perience is in the air. With deep regret be it said, the virus
appears to have attacked not only the usually rather
thoughtless or ignorant elements in the population, but full
many a businessman who should know better, and a very
large proportion of the economists of the country, of all
others, who should be well aware of the teachings of his¬
tory on the subject.
Indeed, the situation is
even
The rank and file of the
indicated.
In Defense
Operations, Too
Contrary to the professions of many timid observers,
the disease ravages defense as well as civilian operations.
There never was on the face of the earth so expensive a
fighting force
as
that which represents the United States,
of America. A
good deal of this, of course, is the inevitable
result of the fact that we rightly insist upon equipping
our men as well and as fully as may be, and upon servicing
them in the field in as full a degree as circumstances
permit. No one in his right mind would raise his voice
against this, but it does not require any particular acumen
to see that sheer waste in our defense operations from
induction to
mustering out simply staggers the imagina¬
our magnificent production capacity
Were it not for
tion.
product, incidentally, of a system many would now
quite impossible to absorb the cost
the sheer waste that now takes place.,
Service
Corp.
for
company has
its
are
111., New
products.
enjoyed
a
of
It has,
(Special to The Financial Chronicle)
DENVER, Colo.—Yale H. Estes
and
John
S.
vestment
Jones
are
Service
with
of
long been the habit of many fiscal
course,
commentators to clothe defense
In¬
Corporation,
650 Seventeenth Street.
tle of
untouchability,
military operations
errors
Joins Lincoln McRae
ROCKLAND,
Maine—Leon
R.
good
The
earn-
that
the
and
neither, of
as
expenditures with a man¬
though those who plan or execute
were
foibles
either sacrosanct or above the
course,
we—even
we,
and
of
in all
They
ordinary
we
mortals.
have
hesitancy in saying
our
no
are
wealth—cannot afford the
White has become associated with
Lincoln
E.
McRae,
449
Street. He has recently been
Main
with
J. Arthur Warner & Co., Inc.
Brunswick, N. J., Indianapolis,
that there has been such a tre¬
Ind., Ogden, Utah, and Newman,
With Paul C. Rudolph Co.
mendous increase in death taxes. Ga.
The wholly-owned Richard¬
son
(Special to The Financial Chronicle)
Company of Texas operates a
Set Up an Estate Protection
Fund plant at
Tyler, Texas.
SAN FRANCISCO, Calif.—Da¬
The company is well
Liquid assets are the only an¬
managed vid T. Anderson, Eugene T. Gable,
swer
when estate costs must be and has an excellent sales force, Harold E. Munroe and Charles N.
constantly on the alert for new Trout has become associated with
met.
This
to life insurance
-
—the
sibilities.
(Special to The Financial Chronicle)
In 1945 the company introduced
a
-
serious
the plants.
since
;
discredit—it would be
brief, the
of
one
halt
\
inescapably from the fact that
This utter indifference to fiscal
gress,
ex¬
cellent expansion and growth pos¬
industries.
for
acquired non-liquid assets such
they
Laurence
Prospects
estate.
new
emption
on
excess
ucts, sheets 500,000 and earned surplus $5,756,and
rods, 619. The company's capital stock
marketed un¬ consists of 497,063 shares of $12.50
is
paid
was
the
intro¬
stockholders
to
stated: "The
31, 1950 ratio of current assets to
Battery current liabilities was almost
three to one; notes payable as of
con tain,ers,
molded prod¬ the end of 1950 amounted to $1,-
It is possible that total
which
con¬
the field.
inheritance taxes which also must
paid.
re¬
products
tlement legal fees, etc. In some
states there are additional state
costs
is
ment
eral inheritance tax bill of $20,700.
Added to this amount would
also be included the costs of set¬
be
its
search depart¬
:
was
,
646,600
a
budget as now planned calls for billions of wasteful,
spending, the funds to meet which must be ob¬
tained from somewhere. There is not the slightest prospect
of elimination of any substantial part of this profligacy
from this year's budget. The fact is that Congress, often
at the instigation of the Executive branch, goes on quite
irresponsibly to enter into commitment after commitment
for the years ahead which render it difficult if not im¬
possible to reduce a number of future budgets into con-,
formity with our economic status and ordinary prudence.
<
.
earnings
'
750,000
1,000,000
2,500,000
to
useless
1.46
1945
t
Richardson
come
rate.
the
1.56
_
1944
Company
any
Inescapable Conclusion
1.50
1947
at
and
This conclusion flows
Decem¬
in
$1.53
1943
Company, New York City
and above
year
taxes and to absorb such debt.
1942
_
over
and
ber, 1950, earnings were as follows
share:
per
within the next
after providing
two-for-one split in 1950 and
record,
ing
due to an over-supply at that time of
an equity in a large fabricator of
$20,700
finished storage
batteries nnd as a re¬
35,700 plastics, particularly with indus¬ sult, activity in the storage battery in¬
trial
applications. The company dustry fell to a level which was the
50,700
has shown lowest in 10 years, and thus caused an
81,700
extremely poor demand for its products.
steady
prog¬
145,700
ress
since its
For the six months period end¬
233,200
incorporation ing-June 30, 1951, earnings were
325,700
in Ohio on equivalentaft$r' ta^es 'tq -$L25 per^i
998,200
March 1, 1898, share; The President in his letter
17,600
300,000
500,000
business
be very
1948
Allen &
Tax
200,000
to
Like Best
Present
$100,000
substantial
for
seem
1946
Today
Net
Taxable
also
material.
ising.
LAURENCE H. LYONS
Estate
some
can
so
quite apart from these un- \
certainties and these differences in opinion, a number- of ,
clear facts present themselves.
One of these is this: |
Whether war comes or not, whether fighting ceases in.
Korea or not, and regardless of the turn of any of the
other events which now seem to be in question, the citizen
of these United States in the current year will either be
taxed far more heavily than there is any need for or will
have to take up in one way or another or in one form or
another a great deal more of the obligations of the Federal
Government than should be the case. Assuming official
plans come to fruition in reasonably complete degree, and
accepting official forecasts as generally accurate, each of
us
directly or indirectly will be called both to pay such
abundance of informar
an
sibilities
family after their death.
Federal
from
funds,
educational
as
But
worthwhile service, plus the pos¬
2
page
developments. Moreover,
therefore in it has
long emphasized the world
having their
market, and should benefit from
are
serious
due
after
The Security
are
advanced
impairment
some
used
to
who cannot obtain life in¬
many
surance
be
this must rewards,
undertaken
be
program
a
However,
rights.
obtained
nearly
or
laws, coupled with
of the investment
costs
through the purchase of life in¬
surance.
However, there are
or
tion
information
sistent belief that hostilities in Korea will
There tion on this subject. The oppor¬
estate tax tunity for performing a very
possibilities for
in setting up
are
the inheritance
we
course, are
war
furnish take up this field of work the
cashing in on one of the best additional protection, provided it opportunity seems to be an excel¬
A contact with a good
opportunities they have ever en¬ is set up properly.
Not only will lent one.
Study of
joyed in the history of their busi¬ the family have protection, but lawyer can be helpful.
Capable life insurance
obviously, in conflict with official pre¬
predicated upon the assump¬
shall not become involved in any full scale
dictions, and, of
go
into detail
curities
these are,
as
or
Paul C. Rudolph &
gomery Street.
Co., 127 Mont¬
profligacy which goes with military operations in this
country.
to
the
Nor have
we
the slightest hesitancy in pointing
corresponding waste in what is
now'known
as
foreign aid, and in the administration of all the agencies
now
engaged in "welfare economics"—a term which more
often than not clothes with
used to be called "the
the
coming 12 months
will without
a
certain respectability what
pork barrel." We repeat: Whatever
may
otherwise bring forth, they
question impose burdens upon the American
rolume 174
Number 5044
people which will
.
serve
The Commercial and, Financial
.
.
the
general public
1
ever.
■
'<•
■,
No Antidote
A second certainty is that no amount of "pay as we
go" philosophy, even if, as now seems doubtful, it is given
practical effect, can possibly prove to be any sort of anti¬
dote for the fiscal
profligacy in which we now regularly in¬
dulge. And to this second certainty, we may add as a sort
of corollary, the observation that no
type of financing any
deficit which may occur can
possibly prevent or make
good the harm which waste and political handouts must
inflict upon us. At the moment we are
apparently in dan¬
ger of falling again into the error of supposing that wide
sales of defense bonds will
"prevent inflation" and turn
evil into
good. The notion is basically nonsensical, of
J
us
(Federal Reserve Bulletin,
p. 665, and TwentyAnnual Report of the Bank
June,
1951, pp. 53ff.).
.
inued
increase
of
nn
becomes
of
evident
ider the
savings
income.
personal
has
to
frequently and abruptly
1
n
in
4th
has
may
third
remember t h
quarter
of
Quar.
271.6
329.0
9.8
5.7
15.8
10.1
19.8
of the
war
that
later
and
the
,
saving
was
are
consideration
of
•
money
many
_
_
.
incomes.
wage
agree¬
escalator clauses per¬
to rise with the
wages
living.
Since excise taxes
the price quotaused for the computation of
included
tions
and
of
of
economies
19®* "the" basis of re951) on the bas^ofTe-
.
.
cently revised expenditures for
the period of $68,400,000,000. (Ex-
correspondscarcities,
penditures for fiscal 1951 just
ended were $44,200,000,000.)
On
the same date, Mr. Staats, Assistant
Budget Director, estimated
operate under
the strain of tremendous
psycho-
United
for
States
its
European
is evident from the fact
that "For the fiscal year 19511952 the U. S. defense expenditure is put at $52 milliard
Allies
purchasing
milliard, or about 30%—which is
a smaller proportion in relation to
*
pSwer over"
goods
billion
been
has
the
for
in
cost-of-living
such
index,
the United Kingdom; but several
European countries will have a
hard task to meet the increased
outlay from current revenue, considering that they are rrl already
^
i.U
International
Settlements,
1951 collecting some 30 to 40% of the
(p. 56), draws attention to "the national income before the new
marked differences between, on rearmament
effort has begun,
the one hand, a full-scale war (Bank's report, 1951, p. 57.)
.
on
the other, an
peacetime rearmament
and,
economy
essential
effort,
0f
as
launched in the autumn
jation
has
creases
in
An
permitted
cases
aggravating
continued
reservoir
decline
a
price
in-
of higher costs,
factor
in
result
the
of
is
as
is
far
the
theory
well
as
our
taken,
the
to
in
a r\
_
^
t*
«
equipment
confirmed to the
was
present writer by his experiences
a
and
recent trip "to Europe. Time
again
and
men
ex-
women
that they would
plained to him
Since we are by Soviet Russia to another war.
increase
our
defense In connection with our build-up
at the expense of our of the North Atlantic Treaty Or-
the activities
non-defense
production and serv-
in-
ices, this difference between cold
defense-production and'hot war in any case ceases
part of our economy.
Our labor, to be one of category and becrease
as
a
aa
_
The need for our bolstering
Western European manpower and
it on
economy
difference °be^
_i .•
disappearing.
forced
labor
an
be
in
While
1950."
seems
-
unemployed
consumers
n^prernmbmittL ^taxes become the instead of higher Bank's that,
basis for
view
Committee.
He predicted
wages and thus>
being
of a restrictive nature, add' to the i^concerned!
the
1952
July 1.
At the end of
an
The "inflationary gap," i.e., the
excess
nance
personal
changes in
to
anticipations
Modern
rise
m
sentiment dictated by
ing
Korean
.
..
decline
due
tion on the other.
the 1930s we had
,CO—S ?.de^l°Laln?osti?^
outbreak
,
t
under
applications and
already breached in
far
thereby
cost of
Quar.
313.9
witnPQQPd
witnessed
1950
after the
subsequent
a
strike
Stabilization
ii._i.__
•»
and
mitting
2nd
Quar.
300.3
be-
its jurisdiction foster
by and our defense effort apalong two routes: first, proaches higher levels the inflaby a tendency for price increases tionary gap is bound to grow.
'
as a result of higher costs, and
The previously mentioned Ansecond, by lifting wage payments nuai Report
of
the
Bank
for
the
We
so
ments carry
Quar.
the
available consumers the national income than several
estimated at $17 European countries have in recent
fiscal year 1951 years collected as revenue to meet
several
cases
its
formula
for
(National Industrial Conference their public expenditure.
.
,
.
limiting wage increases to a 10% Board).
Even assuming a saving In Western Europe the proportion
rise over January, 1950.
Further 0f $9 billion, consumers would of defense expenditure to the naincreases granted
by the Wage still have $8 'billion with which tional income for 1951-52 is not
Stabilization Board or permitted to bid up prices.
As the years go expected to exceed-10% except in
has
Board
Incidentally,
lst
before, the
Wage
,._o_
several thousand
-1951-
3rd
The
outside
283.9
at
rising costs of produc-
force
began.
second quarter of 1951.
2nd
Natl. Prod. (bill, of $)
Personal Saving (bill, of $)
work-
inflation
Quar.
Gross
of
sequence
shorter
a
prevailing
ginning of World War II, on the
one hand, and the present situa-
labor force variously estimated at (billion), or about 18% of the
tion. The newspapers report al- between 10 and 14 million people estimated national income, while
most daily strike settlements in while, as previously stated, we are
the total public expenditure
which peace is restored by grant- now scraping the bottom of the (Federal, State and local author¬
ing reduced hours at a weekly reservoir.
ties) is expected to absorb $92
and
nrn
—15)50-
the
wages,
week
we
^
is
control
higher
changing character of consumer
purchasing
power
between the
»J
i.U
second quarter of
1950 and the
in
This
con-
we
conditions
-
inflationary factor that
become increasingly difficult
wage
x
when
.
sively organized segments of our sibly the Far East a large part of
labor force.
•
the sinews of war in manpower
In order to grasp the full power and equipment that these nations
of the inflationary forces to be themselves,
important
for
our
released through rising wages and own salvation in a showdown with
salaries and the decrease in the Russia, will hardly be able to
labor force as a percentage of re- provide in view of their weakquirements which provides the ened economic, military and podemand-and-supply background, litical situation.
we cannot oyerstress the imporThe need for such further huge
difference
between
the expenditures on the part of the
Another
.
End ol Inflation?
terms
.
_
strong Factor for
Inflation
3
page
a
Settlements,
•
..
.
Labor
to them is corrected.
from
International
for
must admit, appear quite fruitless in these days, but they must be "
made and be continued until the situation which
gives rise
ontinued
1951,
First
-
Protests against fiscal mismanagement,
^
con-
holders
postwar experience should long ago have
"
so.
the least
inflationary forces since
its
magnitude depends entirely
upon- the
will
of
the
deposit
.
taught
of
one
trollable
•...
'
course, and our
is
It
tries.
good what¬
no
.**
■■
27
(883)
Chronicle
the
under General Eisen-
ganization
hower as Commander-in-Chief of
European military forces, there
has been constant stress from offi-
logical forces.
The impact of expendituresforfiscal19a3_ at force, including men in the Armed comes
merely
one
of
degree, cial and officially-inspired sources
political
economic
or
military between $80 billion and $90 bil- Services, has recently grown at True, the inflation resulting from in the United States and abroad
events all over the world creates lion
Upon b e rn g questioned nearly double the normal rate. a continued cold war effort will to the effect that "the French will
sudden mass actions of unstable whether it was possible to raise Between April,
1950* and April, pr0bably cause a slower process fight again."Reoorts of gallant
.
'.
j?
Dunng the swing into full deduring the sec•
x,
ii
j
fense production
ond half of 1951, i.e., at a time
of
$90 krihon in taxes, Mr. Snyder 1951, the actual increase has been Gf inflation than the hot war
stated that such an amount could a little more than a million which- may finally yet 'ensue,
not be produced from ''the present against a
normal
of between However, as an offsetting factor,
type of taxes.
Is it possible that 600,000 and 700,000. During the it is also true that the power of
at this point Mr. Snyder had his same year, despite the recent ob- restraint over the inflationary
tongue in his cheek by thinking normal growth of our labor force, forces in a democracy during a
of
inflation as a form of "taxa- unemployment has been reduced cojd war are weak as compared
tion'?
by more than 50% and is now with a period of hot war.
'
Be this as it may, there are cer- only 1<7 miHion, i.e., in the neigh^ V
tain local government expendi- borhood of the generally assumed
Military Factors
tures that add to the inflationary number of unemployables. As our
National
defense in the first
impetus.
For instance, in many rearmament program expands, the year of the Korean war has cost
cities of the United States transit labor shortage will be accentuated our nation something less than $25
fares have reached a point beyond by the fact that defense produc- billion.
The second year of our
which they cannot be increased tion c o n sum e s a considerably defense effort is scheduled to cost
without adversely affecting pas- higher number of labor hours per us $50 billion more in actual exsenger revenues (letter by Robert ton
of
material than does the penditures.
However, according
F. Wagner, Jr., President, Bor- manufacture of civilian goods.
to Senator Joseph C. O'Mahoney,
ough of Manhattan, New York
The labor-force factor as an chairman of the Senate Military
"Times," July 3, 1951). The only jngredient in the trend toward Spending subcommittee, the milialternative is deficit financing for inflation is so difficult to control tary spending budget, which is not
transit, whether or not the deficit because, on the one hand, it is identical with actual expenditures,
may be offset by certain advan- tightly knit into the political pat- will rise from $60 billion as now
tages accruing to the community tern of 0ur national life, and, on envisaged to $80 billion in fiscal
as a whole.
the other hand, in a democrati1952.
This would compare with
^
decreasing production of consumers durable and soft goods, a new
wave
of scare-buying may well
impart another inflationary im-
*
petus to
the
prices
of consumers
goods the effect of which may be
temporarily delayed by price ceilings and black markets.
In all
probability, the Korean armistice
talks will result in
reduced tax
a
while the need for huge
defense outlays to counteract new
program
Russian
will
threats
developments
rise.
Such
strengthen
psychology in the
reduce
the con-
would
the inflationary
economy
and
sumer's inclination to save.*
Fed-
eral, State and local budget policies will add their share.
While
Federal
fiscal
the
cash
receipts of the
during
government
the
1951 just concluded
will exceed its cash expenditures
think of the cally
organized economy labor
recent step taken by the U. S. cannot be subjected, except under
by about $7 billion, the last quar- Treasury in permitting the return the gravest and most immediate
ter of the fiscal - year has shown of interest flexibility to govern- threat to the nation's security, to
the budget in the red.
In addi- ment issues, it is also true that allocations as regards line of protion, the deficit is likely to grow this agency has recently marketed duction and place of employment,
in view of the tremendous rise in a series of deficit financing issues
To stretch the labor force, the
government expenditures planned m the short-term market.
Secre- reduced work-week often serves
during thef fiscal years 1952 and tary Snyder explained and justi- to bring back the': number of
1953 for which so far no plans for fied this policy with the anticipa- working hours per week to the
appropriate tax
measures
have tion by the Treasury of unusually number
of hours previously
been forthcoming.
As a matter of heavy drains due in the months worked at a
considerable rate
fact, it is generally conceded that ahead in connection with the re- increase for the hours that now
if the spending plans should be armament program.
constitute "overtime."
Thus it is
approved bv Congress, a revoluLargely unobserved by many expected that of the annual rise
year
tionary
in
change
tax
would be necessary to
at
a
a
concepts
arrive
even
reasonable distance from outdista ce
m out
Whatever
Present Types
who
On June 27,
of Taxes
1951, John W. Sny¬
Secretary
1 The
always
a n
d
availability
of
there has during recent
years taken place a tremendous
rise in the velocity of circulation,
Since the end of World War II
Inadequate
■
develop-
discuss the
amount of purchasing power in
ments,
credit,
"
der,
may
economic
of
students
exigtence
lays. ' •'
one
Federal
of
the
Reserve
from
Bulletin
and
of
July, 1951, forecasts an expansion of the
privately held money supply during the
ary° presTures! 1951
deposit
Treasury,
addl"S t0 ,nf,ation"
turnover
18.2
14.6
and
9.7
in April,
has
in
1951, for New
City and other
centers, respectively.
York
increased
1945 to 26.5
reporting
This rise
has been paralleled in other coun-
actually spent
at the peak of World War II.
As anybody can see, the growth
of our military spending program
assumes,
even
at this stage of
limited or cold war, the aspects
0f a cancerous growth reminding
one 0f the almost daily increasing
estimates for military expendiIt
tures during World War II.
T+
may be well"worth while to recall
at 'this point that, according to
best military information, Soviet
Russia today is still arming
$99 billion
a
year
fighting by the French units .at-.
tached
to
being part of,
or
Nations
United
the
Korea
have been interpreted as implying
the presence of a great fighting
spirit in the average
Frenchman,
No slur, of course, is implied here
upon the character, courage, and
the great traditions of the French
a
and the French nation as a
whole. However, the Frenchman,
suffering
as
always from low
wages and
rising cost of living
aggravated
by
be excused for not trydifficulties as he
may
neUrs
economically
an
class of entrepre-
educated
little
ing to add to his
sees
them.
pnnojdpr5tion
ff
't
f ® 1
f
*sMw
pussia
'
thrown
task
ff ct far exceed
II
War
Wond
and
unavoidable hot war
mifiht not
iarge additions
our
- fully under-
if
j
T_f
of
peak
historical
+bp
Q*and
the
into
factors
these
aii
Takine
the
with
exceed by very
the cold-war
peak,
international Economic Factors
The united States
through its
foreign trade and overseas
.
capital
long time
influencing and in turn been
investments
has for
infiuenced
by
a
developments
abroad.
interresult of
ascendancy and the de-
recent
connection
Amer;carl
this
decades
has
as
a
,.
.
the political and economic
faster than our own country and p0wer 0£ the European countries
in wage and salary payments is ahead of us in certain phases and their w0rld-wide dependenwithin the next 12 months of $20 0f airplane construction as a mat- Q.
become ever more potent. A
to $25 billion only about one-half ter of inventive genius. The Rus- mjlestone in history was passed
will be the result of larger em- sians possess stockpiles of atomic when after World War I our
ploy ment, while the rest will come bombs sufficient in size and power country ceased to be on balance
from inflationary wage increases to damage seriously our cities and an internati0nal debtor and became
an
international creditor
(estimate of Professor Slichter of industrial installations. ,,w
instead.
Ever since, the United
Harvard). And a large part of
Military Support of Europe
States in more than one sense has
the labor force, particularly the
Necessary
increasingly determined the
white-collar people, have not yet,
In addition, students of Euro- course 0f WOrld events.
While
,
f f,,iiv
nartirinafprl
in
*" uu"";v"'
,v "lcourse 01 wunu cvu.w.
°fr not yet ^lly' Partlc Pated
pean developments should realize th reiationship between domestic
the wage and salary increases so ^at sooner or later^vve shalj have
Continued on page 28
far accorded the more aggres- to provide for Europe and pos-
The Commercial and Financial Chronicle
28
.
.
Thursday, September
.
(C34)
ing superimposed upon an already
economically weak position prom-
27
economic:
prnnnmir
mnchSesmaller
^
try
activities
activities
factorin
w
foreign
our coun-
Britain
r reat
in
»ha
than
weat
m
fnUaHo°n or d e 11 a t
0^ deflation
United States (as well as
avoid
the
in
Inflation
can
no
Dnwiuj «
_
abroad)
discussion ol interna-
a
:
C
Inflationary Influence of U. S. on
hnVrVorlH
whole
world
the
°
we
"There
can
be
little doubt that
ihe countries which in the autumn
tary and fiscal policies on the one
to adhere at the
to
of
burdens
new
and
"A
them
expect
present situation and indeed
who would advocate rearmaments, the strictive or eve n-deflationary
Bank>s report points to the con- monetary and fiscal policies,
In addition, the very American
tinued S inflationary
dangers by
propaganda through example and
As for the
fQr buge
stating (p. 55):
.
.
.
T.M+v,
inprpaspH
instruction,
rearma-
for
higher
nroductiv-
the vol-
reduce
may
sector of the French
lan
economy,
and services avail- paralleling the recent record inj*
^ T tbe satisfaction of civilian crease
in United States civilian
needg but also that the pr0cess of investments,
and
reducing
the
diverting productive power into otherwise
available
volume
of
military
output
will
tend
to consumers goods 2. Part of this
weaken the economy and, in par- huge demand for investment goods
tjcuiar to jeopardize the advance in France, if it cannot be stopped
has
already
been made by some miracle, will have to be
towards the adoption of practical provided for through inflationary
methods of a more normal and expansion of credit. Both, the di-
European countries
in
industrial
panded
outbreak
Sm
T*ai„
Inflationary Investment in-Italy
able
been
Marshall
the
have
Plan
.
t>Pnnrt
r^e
iq*i
'j
?he
an(j
b
((Tr
V
inclination
.
^
77
n
discussed
t
two
factors
1950
1947 and
between
to reduce the deficit
Our
in their bal-
of payments from
$8 billion
This
inflationary impetus ex- to $1 billion primarily through
-erted by the United States found American
grants and loans; Amerin Europe an economic body still
ican purchases of certain raw ma<and
the recent
from
weak
Besides
aftermath.
its
effort
war
ances
terials in
dominions and
overseas
the
pvnanrj
hJi^
thp
reser^T
taken
means
lectively
by
Thus
Bank
tL
,'Jl
these
.
"The
counteracted ef- tential arising from the
measures,
continues
report
,
-
tK..
#
.
,
European reserves
ing probability of
in
increase
the grow-
is
lack
of balance m the economy, lends
support to the suspicion that a fair
-degree of inflationary pressure
indicating
props,
a
to
actual
appear
than
needs^nder'the rcarmament'pro&
•
.
.
Inflation
France
in
deficit,
for
wages
trend
abroa^aided
bv inflationary
h
Sj? ,er- f°ster®d by certain po- controls
.
,,
First among
.
,
of
is
the
The threat
principles
of
program
the
Office
price Stabilization."
of
inflation, will be
ap-
parent rather than real.
Truman and Congress Fearful of
Deflation
m
,
T.runlans
______
...
Administration,
,
day brings new proof of the Administration's disinclination to ap-
We could mention here
.
whole
a
_
list of further economic difficulties caused by lack of understand-
ing or politically induced neglect
if we would impose upon the patience of the reader,
in attenuation of,
if not
an
as
of, the political attitude of
Administration and Congress the
excuse
following may be said: It is axiomatic that every democratic government is highly sensitive to the
wishes and whims of the population. The Truman Administration,
just
the Roosevelt Administra-
as
tion before it, in
reality and deprotestations to the
spite^ all its
contrary, prefers an inflationary
atmosphere to an economic stabil-
which, for its
existence,
very
would
require deflationary peri0ds to offset periods of inflation,
Washington — and this includes
Congress—thereby probably only
reflects the general temper of the
people who still ■ remember the
Sl.aie
catastrophe of large-scale unemnT
ntnvmAnt
iar„H
thm^h
afraid
rv
fnr
thp
iqw,
wingTvpn
a
Hpflation
however
nwmaZt
woromic
nf
'
of
health
Keynes' Theories in Command
Tn
addition
modern
T
.
in order to stem the mounting tide
of
>
_
result
with
fundamental
these
in the
.,
these factors
1952 national election.
un
T
economic
we social
i
•'
ex_
„
eht" of'govern!
Nw ^ork o" illation
" ' 8
^tantt grow^g bodies
of Jt^ 22, 1951, similarly
c o n 11 n u e d system
difficulties, points to the Amer- power
influence
in
that
country's
Tit
The danger to our economic
discussing Britain's
ican
articles
awareness
t'hpir
be
1S known for
any
Jpms '
not
1/
i
of scarce
no
attention,
rising
will
problem of
lir°rationing, and toof
conclude: "There
is
evidence
Political Factors at Home
„.
t
'
p^ltlcal.ly
5°Ja^a--Mr* Colllns> who
difficulties
The
,
slanted approach of the Adminis-
faster even ply restrictive measures to all
government bargained sectors of the American economy
be
to
the
larf trade def- short
survival of These various needs qnder the rearmament pro
artificial
surplus
.
aggravate during the tration to the whole
countries, including the bulk of customers, spendable insterling area, has moved sharply come now lies. In addition, every
internally, prices and
.
.
ciantPd1 annrnachPSf
to-
irys, taken to
other
from
.
sour*f.
.
And
.
control program. This
progra™ also typifies better than
nr
desnite its advocacy of a high-tax
philosophy, is shying away from
that the balance of payments of concentrating new taxation in the
the United Kingdom itself with income brackets where the large
their economic position.
too strong to be
•
th^hppf^ nf f
Euronean
of
their emnnmies
nf
inflationary
in the London Economist (July 7,
1951), ".
.
important is the fact
aR
Counteracting, at least temporarily, the great inflationary po-
European
also shows
_
friction between Congress and the
important
Ally, Great Britain,
continued tendencies toward inflation., To quote a recent article
dependencies of Great Britain and
attempts at income and price sta-, other European countries, and disbilization just mentioned, Euro- criminations in the sterling area
ipean
countries
employed other against purchases in dollar marartificial
means
of
buttressing kets.
The new
inflationary push apparently was
most
_
fricHnn
inpnHinu nf hnup fnnHc ahmaH
ftlIr
'
y
Inflation Weakens Great Britain
v
forthcoming
f
lnternational Settlements, Annual follows:
The great need of European to a, continuation of a Democratic
countries to improve and widen Administration > in
Washington
their industrial power without ina Republican-Dixiecrat coaflation, if possible, but with it if }ton is serious. It has already
necessary, is further illustrated by induced Mr. Truman to interfere
>
the
"Times" economic editorialist Edward H.
Collins
in
article
ZZ
»
v1 an
an
ar"Cie
1
4.„:
in
ing
during
On July 16. 1951 the New York:
ex-
since the end of
.
price and cost levels at home and
abroad—a position which could
not be maintained indefinitely."
reduc-
harvest season."
the
of
July 1.
<
yesterday showed
survey
acquire
require-
materials have
raw
greatly
the inflationary viruses pervading now t0 lurn
the already weakened body economic of the French Republic,
be stated
can
"World
sentence:
one
terials that European countries the case of Italy.
; '
m the political affairs of certain
Si^ in
^ to "price
to import.
About the middle of July, 1951, states with the purpose of reducmovement* in the countries which
This is not the place to discuss the Cabinet of Premier Alcide dein§ the power of antagonistic
had devalued were not only sub- the lack of validity in the ECE Gasperi handed its resignation to members within his own party,
iected to the effect of the devalu- reP°rt which has been presented the President as a concession to This struggle for power will, as
ation itself but also received an *n excellent form by the June, the Cabinet's critics who, pointing usual,_ make
expediency rather
additional impetus from the rise *951, Monthly Letter of the Na- to the growing crisis in the me- than basic soundness the lodestar
in American prices
The conse- tional City Bank of New York, chanical and engineering indus- of executive acts.
ouence was that
far from bring- The Proposal has been mentioned tries, the low productivity of ItalContinued American rearmaing
the
re-establishment
of
a ^ere
merely as illustrating the lan industry, and the chronic un- ^ment, with or without peace in
tiatural equilibrium a step nearer,
of pertain European circles employment of almost 2 million Korea, will be necessary in anIhe attempt at income and price
a progressive European mfja~ Italians, have demanded for some ticipation of a possible military
stabilization
in
the
countries *lon fostered by American dollar time a more vigorous and bolder showdown with Russia. Such prowhich
had
devalued led to a
even at the risk Srsm^-is bound f° ^°fsfer ^AmeriIn fact, European countries shar- of some inflation,
can
prosperity, part of which, as
growing disparity between
the
a
the
before
for-
a
controls
preventing price
ments of both basic foodstuffs and
Qf goods
ume
principally in dollars) would de- States spending in Europe. Thus,
cline or that at all events there the
Economic
Commission
for
would
be no rise
(this having Europe, a United Nations body
been the case after the devalua- which meets in Geneva, Switzertions in the autumn of 1931). But land, in its "Economic Survey of
a
rather
pronounced
business Europe in 1950" calls for uphoom
with rising prices
got un- valuation of European currencies
-der wav in the United States this in order to offset, by raising prices
development
being already
ap- of
European exports in dollars,
narent in the soring of 1950 (i. e.
the increased prices of raw mawell
costs,
when
that the uncertainties of the situation are
time to such
same
increased
withdrawn
were not renewed on
situation, al- hand and inflation on the other, sober economic, political and fi- tions that might otherwise be put
^
by great the latter has in France's long nancial standards as we in the into effect.
•
°
strain on resources in.most of the history always been victorious. United States, with our much
"The uncertainty is further comnational economies, that the con- Now, after the all but crushing better basis for such policies, are plicating the loan applications of
food processors who seek to fifUct in Korea supervened in the deprivations of war and occupa- unable to follow.
middle of 1950."
tion, strong must be the politician
The deeper problem of all nance" the inventories" they "must
expressed cently warned against additional ities and the creation of artificial
currencies (i.e., sources of inflation from United purchasing power will strengthen
non-devalued
assume
rearmament
world-market prices, as
In
Allies to
European
our
of
"It was in such a
characterized
armaments
quote the following
passage from the Annual Report
of the Banh for International SetElements, 1951, p. 34 a passage
which also points out the mflationary character of this influence:
years,
tradi-
the
Them" countries the additional ouuay xui mcieaseu mvesunems in me civntnem.
hefore
before
example to what extent
this has been the case in recent
an
as
In
pressure.
tional fight between sound mone-
,.,
tional factors.
Just
hopeless task to ask
tionary
End of Inflation?
and
latter by later reverses and sacri- proof
fices.
And it seems an almost mula
ises to contribute to further infla-
Continued from page
6. 1951
to
the
from
unscrupulous
grab of the labor bosses
whom
a
vote-conscious
Ad-
self-inflationary in nature.
theory of economic progress
being facilitated by an atmosphere
were,
The
Thus, France, which showed a inflationary trends when it says: ministration caters is magnified of inflation has been fostered and
trade deficit for January, 1951, of "None of the internal or domestic
by a vote-conscious Congress fos- made respectable by John'Maysurvives in
the individual coun$12.6
billion;, for February of economic troubles that Britain is tering further inflation in the
nard Keynes. It does not overlook
tries.
Certainly, there has been $2.7 billion; for March of $13.5 going through are traceable to
agricultural segments of our econ- the fart that limitless inf1 ation
WK w5.
ihePS?oTtVen'iS^v ££ billion, and for April 0^16,5^- her
alter
lI0n, has increased this deficit ior
butromDlete eauilibrium hetween
e; 1951. to $35.6 and
the
volume andThe^.mnlV $ ?
talhon respectively
S BOTds Ld se^ices hid not vll «,In View of the fact that during
bem re-established in all
the Brstyear after the beginning
trils by the m ddfe of l950 Mta" ?
K5rean Y8*'
inraedtetelv
the
® p
War
mraev
conn
•
forcSi
tionary
were
stfll makJng
themselves felt in labor relations,
-on the
commodity markets, and in
the
field
of
foreign
trade.
Pro-
duction had risen well and the rise
was
continuing
but,
in
spite
of
ntateau
will,
ohsprvprs
come
hp
Hiffipnlf
vprv
sufficiently
exports
near
deficits.
so
eliminating
France
the
insufficiency confined
of
reserves
—it
monetary
rather
was
to
the
authorities
general feature;
£s a rule, stocks of materials were
-on the low side in relation to the
rise
of
production;
full
ment meant that there
of
serves
lines
often
of
a
old enemy
manpower
production
Th'e
trade
have
and
the
an
pp.
article
the first
with
her
Banker
7
326ff.).:
French price level
continued
further
inflation
plained
trend
toward
by
social
is
in
part
ex-
the huge fiscal and
security expenditures that
vital
in
1950
there
was
of
the
absorbed
national
more
than
income.
capacity, armament burden that is
+
a
Blum
•
us. A^erJcai\s
n
says,
a. C.0I\" history has
stantly rlslng standard of living,
strong in-
"Never
John Morton
in
as
a
favorable
ingredient of
nomic and social progress.
In his recent book "Joe Tumult,/
^deA\to
^
33 3 r6"
^
lift
even
to
inflation^ (The
higher
in
and
lack of industrial
employ-
were no re-
1951'
june
a
"T' °£ the Wh°le
it
the
seems
improvements, / the lost, to use the words of
reserve position was still
weak in fn a London
magazine,
most European
countries; nor was round in the new fight
tn
to
as
backs and similar controls. The has wrecked them all through/Mfc
constantly rising spiral of wages, tory. But a constant dosef of. preindustrial prices and farm prices sumably controlled = inflation is
is firmly anchored in the so-called considered by modern statesmen
has made the terms of trade worse parity legislation with
for the United Kingdom, although fiationary implications.
thy opi®ion
in
recent
some
own rearmament program.
This is only getting started ...
It is true however that the impact of American stockpiling, m
so far as it has raised world prices,
American
' Consequently,
^
later,
eco-
''
,
should,' against
tottedSraSl
and
prices begin to decline
national crisis been the first signs of a serious deflasevere enough to overcome par- tion
appear,
our
government
a
Serienced^he"devastattn"6^ef- £Sa" ri^al,ries " If„Te i",terPr«t H"Id
"i® 'i"16
fSkof
occunation it Sav be the word ' partisan", broadly, this bilhons of dollars to stem the rise
uar(f ?£
'the abandon! statement 1S borne out by present of unemployment that mignt deunderstand tne abandon developments in Washington. On velop as a result of sudden fears
an
understand
.
,
^ent born
desperation by most
a larg? parj
?• their traditional economic and
15>
1951>- the
New York of a downward spiral in sales and
"Times" commented as follows on employment, unjustified as such
congresskmal
inaction and the fears might prove later on to have
acumen in favor of an consequent confusion:
been in view of the continued
July
yr*?p<rar! na?l?ns
fmancial
^?^ove standard of living even
y will have to pay for the
2 The
master
30%
announced
The
re-
a"!stance
now
be-
for
plan
an
of
the
ail-our
eca
just
"production
^iva" in the Marshall-aid
tuateThese tendencies
accen~
"Congressional inaction
on con-
trojs bas caught about half of the
processors
in the United
States between the general price
food
freeze
creased
of
January
prices
and
permitted
the
on
cold or
a
later hot war.
„
,
International Political Facto
As
regards
the
international
in- aspects of
power
politics, the
due United States and Russia seem to
Number 5044
Volume 174
themselves
find
the
in
.
The Commercial and Financial Chronicle
.
.
of
vortex
Continued jrom page 5
parable to similar historical
Failures Record
the
English
Before
that
time
England
had defeated the Spanish Armada
and, thereby,: eliminated another
on.
top world
.
power.
;
V1 The expansionary forces of
day collide in
gle, all the propaganda of a pos¬
sible peaceful coexistence to the
'
contrary notwithstanding.
inism-Stalinism
anlysis
tion
based
of
in
are,
inexorable
an
the
the
upon
drops from July, 1950, failures.
last
of
decline
socialism
world.
Whatever
of the
cial
.
Successive Week
than the other recent
level since mid-July.
3% above the $6.69 for the corresponding date
on Aug. 28. This 4-cent drop was larger
declines and brought the index to the lowest
$6.89
The
a
figure
was
.
year ago.
the
the
over
31 foods in
general
intentions of
the
unbounded
The
no
signs of abating, "Steel" maga¬
them.
equally animated
after Dec. 31
sider
relatively
a
such
nothing but
until fourth quarter
setback
in Korea
victory.
As
being
a
a
matter of fact, far
disadvantage in the
Lenin's
of
ahead
able to
complaints from steel
week is
seen
in
announcement of
an
consumers
increase in structural steel
an
shape prices by Phoenix Iron & Steel Co., colludes "Steel." This
increase, approximately $26 per ton, becomes effective Sept. 1.
After that date the company will price and invoice in terms of a
word,
the Soviets probably hope to
lull
the an¬
ticipation of an
armistice also
along other fronts of the ideologi¬
single "base price" which will include additional charges hereto¬
fore separately stated, plus applicable standard extras. The charge
is based on an official interpretation by the Office of Price Stabili¬
cal battle between West and East.
Otherwise, the steel markets are unchanged except for increases
the American people into
The
by
Soviets
the
nomic
test
to
from
the struggle in Iran,
conflict
between
East and
India-Pakistan
and
of
sides
both
on
disagreements
viet
with
dynamite than
the
Korean
more
a
ingots
Electric
and
have
of
accepted
she steps over her
political
tions
thousands
from
our
military
and
miles
of
of
the
tion,
the outlook for the
States
and its Allies in
tinued struggle for
United
the con¬
ideological and
forces of
inflation rather
physical victory over the
spells
the
East
than
stabilization or deflation, for
to come.
many years
,
v
Kenneth
F. Dietz
partnership
stetter, New
retired from
Seskis & WohlYork City, on Aug. 31.
in
shipment did not stimulate current buying interest.
v.
in the raw sugar market by refiners was
later
Increased interest
trad¬
drop in refined
Although the total volume of
reflected in increased prices.
ing remained limited, it was anticipated that the
stocks which occurred in recent weeks will result
in a greater de¬
mand for raw sugar from the refiners. The present price increases
developed in both the spot and futures markets.
The volume of trading in both the coffee and cocoa markets
was very light.
Prices generally continued to be firm during the
week.
Although inquiries were limited, there was no effort to
induce an increased demand by price concessions.
V
slightly higher although a
receipts rose sharply.
There was virtually no change in wool'prices during the week
with trading in the Boston market at an unusually low level. There
was some expectation that an increase in demand from the present
seasonally low point would occur soon. The drop in prices at the
opening of the Sydney market was less than had been previously
anticipated. Further strength in this market will likely accom¬
pany the entrance of United States buyers which is customarily
Livestock
prices
were
steady to
dip in hog prices occurred as
expected later in the season.
was
Trade Volume Stimulated by
Fall Buying Rises Slightly
Preparations for the Labor Day holiday and the reopening of
schools resulted in a slight increase in retail volume during the
period ended on Wednesday of last week. Back-to-school supplies
apparel continued to attract considerable attention. Holiday
food specialties were in large demand.
Total retail volume was
'close to the corresponding year-ago level, Dun & Bradstreet, Inc.,
and
reports in its current trade summary.
Promotional sales of Fall
distributed by the electric light
^
-;..
dresses,
sportswear, and children's
generally brought a very favorable response from consumers
week.
Coats sold well in scattered areas of the country;
dresses in nearly all price brackets were in large demand. Hosiery,
wear
the past
lingerie, and accessories were often among
69,075,000 kwh. below that of the pre¬
sumer
Total
last week
ago.
the
price
offered,
buying considerably.
Where
they
were
retail volume in the period
was
ended
on
Wednesday of
estimated to be from 3% below to 2% above a year
Regional estimates varied from the
following percentages:
New
the best sellers.
reductions stimulated con¬
England
+ 1 to
levels of a year ago by
—5;
+6; Middle
-f5; East and Pacific Coast —t to
+2 to +6; Middle West and Northwest —1 to
West and Northwest —1 to +3; Southwest —3 to —7.
Although the over-all volume of wholesale trade declined very
slightly in the week, it was slightly above that in the correspond¬
centers was about 19%
preceding week.
The
represented a decrease of 78 cars, or .01%
corresponding week in 1950, but an increase of 91,376
12.2% above the comparable period of 1949.
week's total
ing 1950 week.
year ago.
The number of buyers visiting the major wholesale
below a week ago and about 14% below a
Re-orders for various Fall specialties increased
moder¬
continued to be sought
ately, and special promotional merchandise
cars,
by buyers.
Department store sales on a country-wide basis, as taken from
the Federal Reserve Board's index for the week ended Aug. 25,
or
Auto
*
Output Shows Further Mild Gains
Combined motor vehicle production in the United States and
Canada the past
week, according to "Ward's Automotive Reports,"
totaled 139,553 units, compared with the previous week's total of
138,797 (revised) units, and 188,072 units in the like week of 1950.
For the
United States alone, total output advanced to
units from last week's revised total of
132,209
131,949 units.. In the like
178,385 units. Canadian output
in the week totaled 7,344 units compared with 6,848 units a week
week
ago
of last year output totaled
and 9,687 units in the corresponding 1950 week.
Total output for
Retires from Firm
fill-in needs was ordered
below the
additional producthe points presented
all
A moderate volume of flour to cover
by bakers. Activity remained limited largely to a replacement de¬
mand. Offerings for mid-September shipment at a discount under
the
imposes on us
When
oats, and rye,
largely lacking.
Loading of revenue freight for the week ended Aug. 25, 1951,
838,587 cars, according to the Association of American
Railroads, representing an increase of 9,189 cars, or 1.1% above
West
tion,r.expenditures and sacrifices,
above are taken into considera-
were
totaled
at the
territories.
for
direction
somewhat lower than the week be¬
positive price movements in either
South
the
advantages
periphery of their own
industry,
Carloadings Advance Further in Latest Week
enjoy the geographic
This' - disadvantage
entire
Soviet
Russia and her satellites, on
strategy
the
ceding week; 686,223,000 kwh., or 10.6% above the total output for
the week ended Sept. 2, 1950, and 1,601,696,000 kwh. in excess of
the output reported for the corresponding period two years ago.
ac¬
other hand,
a
for
tons of
compared to
industry for the week ended Sept. 1, 1951, was esti¬
at 7,145,609,000 kwh., according to the Edison Electric
The current total
away
frontiers.
own
castings
equivalent to 1,965,000
power
political boundaries, forces us to
fight
period of 27 weeks
Output in the latest reporting week came within striking dis¬
tance of the previous high level of 7,164,469,000 kwh., recorded in
the week ended Aug. 18.
"containing" Soviet Russia wher¬
ever
a
Output Approaches High Level of Week Ended
Institute.
policy
official
this week
August 18
mated
our
and
rate is
The amount of electric energy
given it.
Finally,
Steel Institute announced
will be the second in
and better
would
effective
in freight rates
amounted to 1,890,000 tons.
continuation of
war
ruling.
ago.
week's operating
questions, provide the So¬
Union
specific
99.8%, or 1,995,000 tons a week ago, and 101.1%, or 2,021,000 tons
a month ago.; A year ago it stood at 98% of the old capacity and
rearmament, bases in Spain and
similar
rise
a
for corn,
fore
during the week of
V::''
production failed to exceed 2,000,000 tons.
steel
the
among
German
even
the Western Allies as to
reflect the
request for
.
This
distrust
frontier,
company
American Iron and
week
a
when
West in the Near East, troop con¬
centrations
to
The current week
Indo-China,
the
prices
a
93% of the steelmaking capacity for the entire industry will be 98.3% of capacity
for the week beginning Sept. 4, 1951, or a decrease of V/2 points
preparedness
at many other spots.
The Viet¬
nam
versus
Vietmiri battle in
■
to
that the operating rate of steel companies having
eco¬
our
response
delivered
The
military
and
in
Aug. 28.
of the
negotiations
progress
armistice
be the welcome precondition
may
for
the
over
us
in
of relief presently felt
sense
Korean
zation
delivery.
While closing prices were
.,
is under¬
high National Production Authority officials that too many tickets
were issued, this trade paper notes.
<
\
Important development pricewise in the steel markets last
'''
V;/.
execution
become booked far
that they are un¬
cash in their CMP tickets for steel brought a denial from
A flood of
this defeat will be
used by them for a regrouping of
'their
forces
following
Lenin's
slogan
reculer
pour
mieux
In
to
marked by interest in the more
mixed trading.
what with substantial Controlled
Materials Plan fourth quarter tonnage still uncovered.
ultimate sense,
sauter. /;;
■
standable in the circumstances,
of the many in¬
their road to final
on
■■■<
scheduling is out of the way, this publication,
reluctance
Their
asserts.
as
one
terruptions
from
small
that suffered
as
v
or
was
ginning to increase appreciably.
•;
Prices of other grains were fairly steady
unlikely the mills will enter much tonnage for next year
It is
and their flocks con¬
Trading in the futures
distant contracts rather
Arrivals of cash wheat were be¬
sustained buying activity.
large-scale
than those for near-by
first quarter delivery only, this trade jour¬
Vx,;,;"x
nal adds.
Trouble Spots
men
compiled by
reached on Feb. 17, this
The all-time high of 329.66 was
market
other than limited tonnages from regular customers,
these latter for
and
Many
price index
commodity
•"
•' '•
•' • • ■
prices generally remained firm in the Chicago gram
markets the past week.
Continued strength in wheat prices was
based to some extent on export business although there wps no
Except for some high-rated military direc-v
order that far ahead.
wholesale
Wheat
fives, however, the steelmakers are accepting no business for entry
These
,
year.
business into third quarter
next year were they so disposed since various buyers have been
given the green light by the National Production Authority to
suming directions the mills could book
ticular brand of Messianic Age.
>y.- vX-v
-
Inc., was virtually unchanged last week at the
prevailed so far this year.. On Aug. 28 the
298.83 as compared with 299.79 a week ago and 285.45 a
index was
by their expectation of this par¬
Korea Only One of
daily
year ago.
national metalworking weekly, currently reports.
Steel¬
are being
pressed increasingly by consumers to accept
orders for shipment after the turn of the year.
From some con¬
satellite
and
Russian
are
for steel shows
Pressures
Soviet head
from
support
whole
hierarchies
.
lowest levels that have
makers
of State and his henchmen derive
The
'
Dun & Bradstreet,
zine,
doctrines,
those
,
•
of
show the general
Price Index Hovers Around
Wholesale Commodity
In Current Week
contained in the theo¬
underlying
and its chief function is to
use
prices at the wholesale level.
trend of food
Scheduled to Decline IV2 Points
think
may
.
.
•
,
' .
'
the sum total of the price per pound
,
The index represents
Year's Lowest Level
Steel Output
economic, political and so-
errors
ries
all
we
1939.
prices dipped for the third successive week
with the Dun & Bradstreet wholesale food price index reaching
capitalism and the ascendancy of
Soviet
week
the
Wholesale food
Building plans filed in New York City last month were valued
at $45,557,7*35.
This represented a drop of 11.5% from June with
$51,458,270, but a gain of 22.7% over the corresponding 1950 month
with $37,123,541.
'
expecta¬
in
Wholesale Food Price Index Declines for Third
.
The doctrines of Marxism-Len¬
164
to
rose
level of 229 in the comparable week of
:
issued in 215 cities during the month of
July had a total valuation of $415,571,892, according to Dun &
Bradstreet, Inc.
This was a rise of 7.9% over the June figure of ,
$385,041,042, as against a seasonally expected drop of about 10.0% for the period. 1 Compared with the July, 1950,. total of $524,978,208, there was a decrease of 20.7%, marking the sixth sue- ;
cessive month to show a decline from the year-ago level.
' >
;
cap-
failures
the 174 which occurred in 1949 and were down 28% from the pre¬
Building permits
death strug¬
a
-
the
about
industrial
Aug. 30 from 130 in the preceding week, Dun & Bradstreet,
Inc., reports. Although casualties were at the highest level in
four weeks and exceeded last year's total of 143, they were below
Central, West North Central and South At¬
lantic States reported large
italism and Soviet socialism must
some
numbered
and
ended
war
East North
The
'
.
wholesaling casualties
manufacturing and
same as in June.
1715
people from
Industry
falling to 340 failures from 390 in the previous month, while new
Dutch and the final rise to power
of
Commercial
The State of Trade and
Thus, the Anglo-Dutch War,
in 1652, proved the be¬
ginning of the esclipse of the
starting
Highest Level in
Period
Four-Week
bat¬
tles.
.
Business
strife for world hegemony com¬
a
29
(885)
the current week
was
.
made up of 103,534 cars
and
28,675 trucks built in the United States and a total of 4,612
cars
and
2,732 trucks built in Canada.
dian output
and
In the previous week, Cana¬
totaled 4,485 cars and 2,363 trucks against 7,079 cars
2,608 trucks in the like 1950 week.
1
-v
?
1951, decreased 3%
of 4%
(revised)
year ago,
was
from the like period of last year.
A decline
recorded in the previous week from that of a
and a decrease of 7% is shown for the four
For the year
advance of 4%.
Aug. 25, 1951.
tered
an
;
Retail trade in New York pointed upward
mated
sales
volume
Day period of 1950.
showing
weeks ended
sales regis¬
to date department store
a
gain
last week with esti¬
of 7% above the pre-Labor
.-;';v J:
According to the Federal Reserve Board's index, department
store sales in New York City for the weekly period ended Aug. 25,
1951, declined 4% from the like period of last year.
In the pre¬
ceding week a decrease of 6% (revised) was registered under the'
similar week of 1950.
For the four weeks ended Aug. 25, 1951, a
decrease of 8% was recorded below that of a year ago, and for the
year
to date volume
advanced 7% from the like period of last year.
30
The Commercial and Financial Chronicle
(886)
it.
It
be
can
buying that has been
going on during the past few
Tomorrow's
It
weeks.
Markets
Continued from first page
in the vol¬
seen
be
can
in
seen
Walter
Whyte
0v
Says —
s
By WALTER WHYTE=
You
saw
some
is
something to touch it off.
The
Manpowei Situation
by
four points, while the rails, anybody.
It can be seen in
though also advancing, con¬ earnings statements.
tinued
to show
luctance
to
than
more
a
along
Jje
,
:'fi
,,
What can't be
in
spirit.
*
'
t'f
strange re¬
follow
in
seen
earn¬
ings figures is the psychologi¬
%
*
severely—can't a prosperous ex¬
panding economy like ours take
in its stride
its
20%
of
cal
based
undercurrent
on
peak
of
our
mobilization which
a
will require only 15national production?
:
mands.
"
:
development occurred
year a new
—widespread
reopenings on
contracts already made. The rea¬
The
Cost-of-Living
in May 1948,
Motors Corporation
years
contradiction?
brief
In
the
General
with the United Automo¬
signed
bile
Workers
it is that the mobilization program
has not been solely responsible
other unions
for the business boom of
provided,
1950-51.
The demands of the civilian
both business and
econ¬
consumers,
ago,
features,
months
fall
or
on
of
Index
of
Statistics.
not
several
among
that
some
agreement which
an
the
workers would
3
"and
(CIO)
wages
novel
of
the
adjusted every
basis of the rise
the
the
Consumers'
the
Bureau
This
idea
of
of
Price
Labor
escalation
in the United States,
but the whole combination of fac¬
was
1
the
unique.
made
agreement
it
Furthermore, the impor¬
of the
tance
company and the
unions gave this contract publicity
such as few agreements between
^
aware
that
we
have
guessing. Our Own
had sharp gains in many
leaders, diplomatic as well as
stocks during the past two
military, tell us little except
weeks.
I'm also aware that
what they think is good for
some of this was
at the ex¬ us or what
they think we
pense of the shorts. If it gives should be told.
you any satisfaction I'll state
here that two weeks ago I felt
This
that the
gumption
was
out of
or
are
The
labor and management have ever
had. However, it did not become
developments'since Korea.
was already in a popular with labor and
nomic
the
out¬
occurred.
in ' Korea
break
The
immediate effect
noticeable
most
when
revival
ment
generally—in fact, it was
denounced by some businessmen
and labor leaders.
When the
con¬
particularly tract "was renewed in May 1950,
of raw materials.
People tan re¬ there were still only a handful of
call the spectacular jumps in the firms and unions which had cop¬
prices of ^rubber, wool and the ied the idea of automatic escala¬
the rise in prices*
was
metals.
nonferrous
paternalistic attitude
is understandable; but from a
time
stock market
the
At
same
tion.
stores In" a
the
market.
Based
the
on
subsequent perform¬
viewpoint, it^ all
dangerous situa¬
:-s
the
chances
are
there
are
plenty of others who also
see
Then
Korea, and almost
the attitude changed.
came
November
set
terials also
rose
right.
:
;v,l.
'
..
(Special to The Financial Chronicle)
SAN
ter
FRANCISCO, Calif.—Wal¬
E.
Staley
&
Stock
Exchange
New York Curb Exchange
(Associate)
San Francisco Stock Exchange
Chicago Board of Trade
14 Wall Street
New York 5,
N. Y.
Teletype NY 1-928
COrtlandt 7-4150
Private Wires to
San
,
New
York
and
Exchanges
Barbara
Fresno—Santa Rosa
For Profitable Stock Market
Planning
get NEW SEPTEMBER ISSUE
of GRAPHIC
over
STOCKS
1001
Large, Clear, Eye-Saving
CHARTS
(Many stocks not charted elsewhere)
ORDER TODAY for Prompt
Delivery
Single Copy (Spiral Bound).. .$10.00
Yearly (6 Revised Books)... $50.00
F. W. STEPHENS
15 William St.,
New York 5
HA 2-4848
the
into
off
entry
in
Korea
another
con¬
the Consumers' Price Index since
January 1950, and (b) to recognize
automatic escalation
within
influence
the
businessmen,
consumers.
nessmen
but
also
Busi¬
were
market.
wage
and
encouraged to ex¬
pand their capital investments, notonly by direct government invita¬
in
our
ates
by the prospects of
This
.
has
been
the;
private investment year
history. Investment ere J
demand for both labor and
a-
materials.
Employment
in
the]
industry reached an!
construction
all-time
1951.
peak
in
the
Consumers
summer;
ofj
expanded!
too
their
demand, partly by spending
somewhat higher proportion, of
a
their
incomes
tending
Thus
consumer
businessmen
increased
sumers
partly
and
their
both
a
by
ex¬
credit.
and
their
the economy at
upon
con¬
demands
time when
government
was
also raising >its
(even though the latter
demands
were
than
more
ernment
that
covered
by gov¬
The result Was
income).
total
demand
available
supply
prices went
exceeded
the
of
goods
and
to make the bal-
up
ance..;-;/"v-V
-
During the past six months
something like a temporary bal¬
ance
has been achieved, but- it
is
unstable and precarious one.
an
It
might be
up or
for
a
either
upset
the
on
down side.
We might pause
moment to consider the lat¬
ter
possibility.
Inventories
are;
high, some industries are
having trouble with their sales,
j
higher taxes are about to be im¬
becoming more!
spending. If the;
peace offensive is actively
pushed, if international tensions]
posed,'.people
cautious in
are.
their
Soviet
relax, if our mobilization program
is reorganized downward, them of
the
course
into
But at
slide]
|
»
present the" probabilities<
stronger in the opposite
seem
rection.
indicated
As
mobilization demands
their
full
this
earlier,
di-j
the]
far from
are
peak.
Actual
j
spending
is scheduled to
increase from a rate of $1.5 bil¬
lions a month to $4 billions a
month—an annual rate of $30 bilon'
j
j
economy might
and temporary reces-l
mild
a
sion of the 1949 variety.
program
Stated
lions.
another
the
Walston,
San
vr:
foodstuffs
topped 400 (August 1939=100) in
February
1951,
the
Wholesale
CALL
tivity increases (in wages) are
permitted if they do not require
a price increase.
; ;
bor
Amer. Woolen.@37
U. S. Steel...@44
Pepsi-Cola ...@10%
Mo. Kan. Tex..@10%
Radio Corp... @22%
Bait. & Ohio.@20%
Hall Printing. .@17%
St. Paul pfd.. .@47%
TWA
@25%
C'pital Airlines @16
Nov.
Nov.
•
2 $350.00
3
225.00
100.00
Feb. 13
100.00
Jan. 30
237.50
Nov.
7
162.50
Nov. 14
225.00
Oct. 22
100.00
11
mos.
275.00
5
mos.
100.00
5
mos.
187.50
5
mos.
212.50
Hudson Motors@14
Nov. 13
137.50
Chrysler .....@71
Nov.
375.00
Bond
Stores..@15%
.@18%
Subject to prior sale
or
Explanatory pamphlet
5
price change
on
request
THOMAS, HAAB & BOTTS
Members Put
& Calls Brokers
& Dealers
Association, Inc.
50
into
crossed
new
high ground, the Consumers Price
went
Index
above
180
(1935-39
average=100).
This
was
the situation when the
was clamped on in
January. The result of the
freeze, taken in conjunction with
Feb. 26
N.Y. Central.
Statistics
late
Per 100 Shares Plus Tax
Broadway, N. Y. 4, Tel. BO 9-8470
to
consumers'
prices, with
further proviso that produc¬
Price Index of the Bureau of La¬
"price freeze"
OPTIONS
tied
the
Francisco
"
;>
further; the spot
market prices of 11 raw
a
SPECIAL
•
Francisco—Santa
with
gomery streeVraembers of ihe
Principal Offices
Monterey—Oakland—Sacramento
is
Goodwin, 265 Mont-
Members
York
do
of
earners
,
ourj
way,
views
Hoffman
New
and
can
ef¬
economy
mobilization
demands
will
in-,
sumer
buying flurry, which, limits of the over-all policy. This
crease within the next two yearsI
expressed in this coupled with seasonal factors, sent policy was finally cemented in the
by about 10% of the national in¬
article do not necessarily at. any retail
prices sharply upward—the recent decision of the Board to come. This is a
very large "bite"
time coincide with those of the Index rose about 3 points a month
apply these principles to all wages to take out of an
already peakChronicle. They are presented as for three months. Prices of man¬ subject
to stabilization.
Wages level
economy.
Some of this, of
those of the author only.]
ufactured goods and of raw ma¬ have now been fully and closely
course,
we
can
get out of in¬
on
Schwabacher & Co.
Chinese
the
But
rise.
be
,
Pacific Coast Exchanges
its
in
down
of
Walston, Hoffman Adds
Orders Executed
and swept
posed to this market, you'll
[The
Pacific Coast
indirect
an
private
v.
kindly dis¬
it
own
now
got, alarmed
consumers
the shelves of the retail overnight
Nation-wide buying, With the upsurge in prices after
Korea and particularly in the late
spree. So retail prices also ^firmed
makes for a
ance, I was wrong.
up. All this had its influence upon
autumn* there was a rush to tie
#
*
*
tion. I would prefer to be Tfong
public thinking." Thus the .original wages to the Consumers' Price Index.
By the end' of 1950, over
While I'm in this I-Will- of stocks most of the''time; I legislative program of the Presi¬
dent called only for production 1,500,000 workers had their wage's
Tell-All mood let me also add also know there are times it
controls, but the tide of public tied to prices by means of such
that I can see the market get¬
is wise to disregard optimistic opinion was such that the Defense contracts; by the early summer of
Production AcCby the time it was* 1951, there were over
ting itself into a corner out of
3,000,000. statements and either stay out
passed by the Congress, contained?
which it can jump daily five
Meantime, the Wage Stabiliza¬
of the market or, other things both wage and price controls,
tion Board in early 1951 had to
or more
points. The ammuni¬
After the first flurry of buying, formulate a policy on wages in
tion for this is already there. being equal, go short.
./
things
quieted
down
a
little; conjunction with the price freeze.
It has to do with war orders,
i'fi
t'fi
M
bumper farm crops helped to keep It is sufficient here to indicate
food prices level, and so the Conr that their final decision was (a)
superimposed on an inflation¬
If you've gathered from all sumers' Price Index of the Bureau
to limit wage increases to a pat¬
of
ary base.
But because I see this that I'm not
Labor Statistics was slowed tern closely related to the rise in
the
market's
its
manage¬
economy
business
have
new
in
tors
They
activities
be
•
I'm well
of
the
upon
heaviest
Three
What is the explanation of this
Wage
Adjustments
_
apparent
policies
fect
the
portant.
,
pointing out the dispar¬ numerous things, all tied to have played the greater part to
ity between the two averages the international situation; date. The problem of the future
as
something to mull over. the war in Korea; the peace is simply this, what sector of the
According to the Dow theor¬ meeting in San Francisco; the economy must give a little in or¬
der to accommodate the demands
ists this spread between the Iranian oil rhubarb and what
of the mobilization program?
'
two has significance. How im¬ will the Reds do about all
this.;
Economic Developments Since
V-v^Y''7 '
#
.ijc
' $
'S)yj
portant this will be we can
Vjv.i;
'V
-v
1 Korea
y'-y
leave to the lads with the slide
The newspaper stories, pre¬
To
understand
the
nature' of
rules and the charts.
sumably quoting reliable this problem it is -necessary to
sketch in brief outline the eco-sources, are full of double talk
\.
terms
Of course, government activities
and
tion
for this is interesting and im¬
son
By contrast, in World War II, we
at one period were devoting about
50% of production to; war de¬
omy,
I'm
in
spending, government has
been a mildly
deflationary influ¬
ence during the
past year, not an
inflationary one.
'
Under Defense Mobilization
at
rally
more
That's the bullish side
in the past week. The indus¬
trial averages went up about the picture. It can be seen
So
direct
brokers'
buying for the pub¬
lic. This type of buying can
be directly responsible for an
explosive market.
The ele¬
ments are there. All it needs
Thursday, September 6, 1951
.
surplus.
of
ume
..
number
of
other
was
that
policies
and
prices re¬
ceded from their peaks. Spot mar¬
ket prices are nearly all consid¬
erably below their 1951 highs, and
wholesale prices have been de¬
clining for several months. Con¬
sumers' prices continued to ad¬
vance slowly, but the net change
was
very small.
From February
to July the increase in the Con¬
factors,
many
sumers' Price Index
was
16
Production
months.
also
an
ruary
1950 had fallen to about manpower. In the period of ac¬
2,000,000 in the summer of 1951. celerated defense preparation that
Even with spotty unemployment lies
ahead, our manpower re¬
in some areas, such as Detroit and sources will be subjected to great¬
some
of the shoe and textile towns
in New
England, the national pic¬
ture
today is one of high produc¬
tion*
nearly
full
employment,
comparatively stable prices and
slowly rising wages, with some of
the wage increases being of the
catching-up kind.
Powered
Demands
by
of Private Economy
The most significant point about
all this is that, while it may have
been touched off by the
it
powered
by
mobiliza¬
spending and unbalanced budgets,
many
were
increases
industries, but these
were
generally modest in amount. How¬
ever,
in
the
second
half
of
was
of
the
the
the
private
discussion
Federal
economy,
about
government
Government
came
out of the fiscal year ending June
the 30,
1951
with
a
substantial
strains than
end of
By the
1952, about 12 million
per¬
than one out of
the American labor
or; more
sons,
six
force,
in
will
connected
fense
at any time since
of World War II.
every
be
with
engaged in work
the National de¬
effort.
During this period,
inflationary
pressures, we also will have the
task of providing the manpower
minimize
order to
needed to
maintain production of
civilian goods at the highest pos¬
sible level consistent with avail¬
able material supplies.
the demands
in
There
er
the end
in
Prosperity
namely,
by businessmen investing and by
consumers
spending.
Despite all
Korea.
civilian
the
\-Xf-K
to
tion program and the Korean War,
the
curtailing
economy.
d
advanced
meantime were
rising, following prices up. Most
of normal annual wage-setting by
collective bargaining took place in
the
first
half
of
1950,
before
in
Wages
without
employment
Our Manpower
vj.
prosperity
levels during the past year. Un¬
At this point it is necessary to
employment,
which
reached
a
analyze one factor w hich we have
postwar peak of 4,700,000 in Feb¬ passed over lightly so far, namely,
have
less than
1%, which is close to reasonable
stability. In July the' index de¬
clined slightly for the first time
in
.
creased production, but we do not
have enough materials, plants and
skilled
manpower
to get it all
At
the
present
relatively
military
12
close
the
strength
was
are
our
goals.
In
the
following the outbreak
Korean
of
the
War,
armed
the U. S. more than
cash- few
we
meeting
manpower
months
of
time,
to
brought
hundred
to
a
the
net
forces
of
doubled, and
level
thousand
only
short
a
of
Volume 174-
Nuitfbeif 5044 .•The Commercial and Financial Chronicle
theanritTunced;gbal :ofabout'3 V2
mi'JcUm for the end of fiscal 1952.
±1
will be necessary*to replace
large; numbers of: Teservists and
other personnel scheduled for re¬
lease during
the current fiscal
as
well as * to make the.
planned additions to net strength.
However,
under the Universal
year;
.
Military Training Service Act of
1951, the pool Of young men qual¬
ified for military service has been
expanded to the point where
Scheduled needs
be met with¬
can
out undue strain.
Tn contrast,
still
long
>
.
(887)
40 hours on the average, as
shown equipped industry. It will be necContinued from page 6
by the Bureau of Labor Statistics' esSaij,: however, for; u$ * to * main-;
reports on Hours and Earnings. t&iii 'past 'rates Of 'performance if >
This means that: there was some we are to keep the lead we now
overtime beyond 40 hours in some enjoy.
*'
plants and in some industries.
The history of the world has
However, it is still small as com¬ always been that free labor and
pared to World War II, when av¬ a free enterprise system have al¬
erage working hours rose to about ways
out-produced slave labor
who enters the bank with a prob¬ the public.
40 per week at certain periods of and controlled
Little incidents, in¬
enterprise. It canlem.
time.
Each
additional hour
of be done again if sound
volving employee and customer,
production
can determine the future of your
work in manufacturing industries policies are followed.
A couple of concrete examples
We must
is equivalent to an additional la¬ maintain a
high production econ¬ will illustrate this point. Mr. Merl bank. A teller who throws a pass¬
bor force of about 400,000 men. omy, which means
Vice-President
and book or money on the counter cer¬
primary at¬ McHenry,
Consequently, we could obtain the tention to new capital investment Trust Officer of the Bank of tainly does not make a friend of
Public
.
•
Are
Relations
.
equivalent of 2 million or more
the customer.
workers
ceptionist in the trust department
and to the training and develop¬ America,
relates an interesting
manufacturing by ment of our labor force to its story in a recent issue of "Trusts
and Estates."
moving to the 48-hour week and highest potential skills.
Under
supporting activities. It has been obtaining a net weekly average those policies the standard of liv¬
"As time went on, Betty Maze
estimated that this program at its of 45-46 hours.
ing will take care of itself—there (an attractive, vivaeious widow,
"This program, however, should will be goods and services to pro¬ with a substantial
prospective peak will require
trust) indicated
we are
a
way from meeting peak manpower
needs for defense production and
about
8,500,000
These
overall
women.
needs
manpower
be met within the framework
can
of
and
men
a
free labor market by labor
in
,
held in
be
cies.
British experience in World
War II shows that
a
for emergen¬
reserve
period of
over a
few months in time of crisis the
work longer hours
vide
a
reasonable supply of butter
along with the guns. On the other
hand, if we attempt to maintain
at
all
hazards
fqrce expansion, by shifts of em¬
labor force
ployed workers from nondefense
to defense work,
and by ^main¬
a
short-run maxi¬
without too much loss in produc¬ -consumption
can
The
the
Between
:
tivity
and
1950
of
end
the end of 1952, normal growth of
the labor force, because of popu¬
per
of
advantage
great
hours is that it
longer
her satisfaction with the Bank
by
bringing in first one friend and
a second, each of whom es¬
tablished
a
healthy trust. The
Trust Department began to feel
very proud of themselves. 'It just
goes to show,' chortled one Trust
Officer, 'that sound investment
recommendations and good, allaround administration really pay
then
be
school,
emergency.
in
the postwar
employment of
the
should
most
provide
women,
gain of al¬
net
a
uptrend
workers.
million
the
last
for
resort
full
a
We
the
may anticipate, in addition, a net
inflow of close to IV2 million "ex¬
for
tra" workers because of additional
for the full emergency.
two
increases
the
in
force
force, to train workers
higher skills, and to put ma¬
chinery and equipment in shape
time
comes,
ticipation of adult women, youth,
work
can
and
in
the
workers.
cates
that
labor
labor
par¬
handicaped and older
Past
experience indi¬
labor force expansion
of this magnitude
in
accomplished
readily be
period of ex¬
Contest
a
This
the
In
hours
oi
yield significant results
increased output.
can
a
When that
increased
is
•
of Production
Race
short-run
problem.
the contest be¬
Communism and Capital¬
the
long
tween
run,
panding employment opportuni¬
ties," provided that the hiring
standards and training practices
ism may turn out to be a race for
of
tary
industry
fuller
older
of
use
workers,
and other reserve groups.
women,
the
As
revised .to make
are
rearmament
program
gains momentum, further cutbacks
in civilian metal-using industries,
such as automobiles and television,
production, not
breaks
three
the
of
world
no
the
then
years,
strength
If
in
out
contest of mili¬
a
strength.
war
two
next
or
defensive
the
nations
Western
be such that a period of mili¬
tary stalemate could exist for 20
may
During that period
and
in
nondefense construction the question would be which side
will provide additional manpower would
grow
relatively stronger.
for defense needs.
Between the Could the present tremendous lead
quarter
fourth quarter of
ers
for defense activities.
industries
In such
transportation, min¬
as
ing and basic steel, this shift would
involve
in
if
little,
dislocation
any,
employment as output is redi¬
rected
uses.
from
In
civilian
to
of the
certain
defense
consumer
durable-goods industries, however,
dislocations of workers, already
small scale, may
comparatively
be intensified.
For the fourth
quarter of 1952,
experienced
w.e
on
a
have projected unemployment
at IV2 million, V2 million less than
corresponding period of
1950, and about equal to current
levels adjusted for seasonal fac¬
tors.
This unemployment level
in
the
contrasts
with
the
low
point
in
unemployment of about V2 million
during'the full mobilization pe¬
riod near the close
of World War
ity of the labor forces of the free
nations.
United
the
In
States
in
the
past productivity in manufac¬
turing industries has been known
increase
to
at
a
rate
of
3%
per
That is, the output of indus¬
try could be increased 3% each
year
with the same amount of
year.
This incerase is due
labor hours.
not
only to the skill, training and
the workers, but
also to the capital equipment in¬
stalled and the enterprise and
initiative of management. Can the
experience
of
United States in the future main¬
tain
this
rate
of
productivity?
Conversely, can the Soviets and
their
allies
increase
rate than this?
evidence
kept
that
down
duction
a
faster
goods pro¬
However,
mized.
if
the
we
maintained
a
low
may
availability of
sur¬
labor in different areas is
taken into account, wherever feas¬
plus
ible, in placing defense orders and
locating new defense facilities.
into capital goods for future pro¬
duction.
This could result in sub¬
stantially increased output in fu¬
ture years despite a very low level
of
productivity of the Soviet
worker
today.
It will not do,
therefore, for the American notion
,
Increasing
-One
other
Hours
factor
iii reserve—the
of work.
of Work
can
be
kept
increase in hours
As of July* 1951, indus¬
try-was still working only about
to
rest on its present laurels in
the production field. We now have
the most highly productive labor
force in the world and the best
about the
income
checks
that
and
sort
of
lacka¬
a
handling of his trust
or
estate business. Training is essen¬
tial in building up a smart, courte¬
efficient
and
ous
staff
of
em¬
ployees. And at the same time,
the management of a bank is de¬
veloping one of its best sales
forces.
A large number of the
bank's
new
customers is retained, or
friends made, because of the
impressions created - by its em¬
ployees.
Even
such seemingly
little things as how an employee
answers the telephone may make
the difference between
or
satisfied
a
dissatisfied customer.
a
account
investments, taxes,
mean
education
The
and
training of
one¬
a
proposition.
Management
must expect to give, as well as to
way
take. It should look upon the en¬
The V i c e-P resident tire
staff, including officers, as a
nodded.
'Oh, they're being han¬ team
comprised of human beings.
dled all right,' said Betty, airily
Even
the lowest-paid clerk, or
Announcement
was
made
on
dismissing the fundamentals of the more
commonly referred to as
September 1st by Frederick Snow trust business with a toss of her
"low man on the totem pole," has
Kellogg of Montclair, and R. Rob¬ blond head. Then, her face light¬
all of the same human reactions
inson Chance of Summit, of the
ing
up
with
enthusiasm,
she as the President or one of the
dissolution
of
£i
added, 'But if you really want to Board members.
Everyone has
the law firms
know what I
enjoy most about
hopes and aspirations, which, with
of Kellogg &
your service, it's dealing with Mr.
proper cultivation and assistance,
Chance, Jersey
Everett. I like him and so do my
they would like to see materialize.
City,
and
friends. He seems so interested in
And they can and will, if manage¬
Chance & Kelour affairs and so friendly.
Why ment will nurture them. There are
"Tog.g,
New
he even takes us out to the eleva¬
any number of ways that manage¬
York.
tors himself!'"
ment can help. First, it can pro¬
The part¬
In our own trust company, the vide pleasant and attractive work¬
nership
rec¬
President, Earl H. Cress, took time ing quarters and conditions. Yet,
ords
and
afout one day about three years ago too often we have found in the
fairs were
from a very busy schedule to talk past that
management's contribu¬
taken over by
with two GI's. They had started a tion stopped there. Of course, even
Mr.
Chance,
business about a year prior to that conservative bankers and, trust-
thing?'
R. Robinson Chance
who
will
tin
u
con-
time
the
e
in
practice of
R.
Robinson
Chance
then
and
serious
themselves
found
difficulties.
financial
The veterans did not know Cress,
law at 48 Wall
men
have been forced to
other
changes
economic
in
lives.
recognizr
social and
They now offei
our
nor did he know them.
However, higher compensation—not just t
they had heard of his willingness nice
position
with
lower-than
to help people with financial prob¬ average pay in return for many
Mr. Chance is First Vice-Presi¬ lems. As
many others in the com¬ intangibles, including what mar
dent of the Hudson County Bar
munity already had found out, agement used to think of as pres ¬
Association and Vice-President of
they had come to the right place. tige. Those days are gone! Th •;
the Pulverizing Machinery Com¬ He not
only listened to their prob¬ public is no longer fooled by, no
pany of Summit, New Jersey. He
lem that afternoon, but he spent does it give recognition to, th
New York City, and
Exchange Place, Jersey City.
1
Street,
is a member of the Hudson
several other hours with them and flimsy
and
somewhat nebulou ■
County, New Jersey and American
finally found the solution for a advantage of "working for a ban.
Bar Associations, a member of the
successful work-out of their diffi¬ ing institution"! Banks and tru
Judicial
Conference
and
of the
culties.
And there was nothing companies also are making their
General Council of the New Jer¬
that the trust company, in its offi¬ staffs aware of the fact that the *
sey State Bar Association. He was cial
capacity, could do in the way are part of a team. Many incentiv
formerly President of the Roselle of
rendering services to the GI's plans and suggestion awards ar v
Borough Council, Roselle Borough —at that
particular time. Since given to the employees, as well a
Attorney, and a director of the
then, however, both young men to the officers, for their contribu
Union County Taxpayers' Associ¬
have
been
successful
in
other tions to increased business.
The
ation.
fields of endeavor and the trust
retiring partner, Mr. Kel¬ company has sold one of them a
logg, was at one time the partner house; made a mortgage loan to
of Honorable William H. Speer, the
other; rented a safe deposit
former
Hudson
County
Circuit box to one; is currently discussing
Court Judge and lately a Vice- the establishment of a living trust
The
President
and
General
Attorney to provide for the education of the
of the Public Service Corporation. children
of
one
GI;
and
the
Mr.
:'...;,y;-
years.
•
Kellogg & Chance has been
of the
one
"We're
City, having been formed March
15, 1917. It traced its origin
going to do
as
business with you as
oldest law firms in Jersey
Such, incidents
restore
to
bound
employees, too, are being tauglh
how to deal with the public.
It
certainly took the banking fra¬
ternity a long time to recognize
the fact that their customers hav
much
more
contact with
the
em¬
th
Employees are offered
plans, hospitalizatio n
plans, courses at local universitir;
in their wills! They or through the A. I. B., advance at
various times, ments and social programs outside
Kellogg is and has been Gen¬ chances are excellent that both of
eral Counsel of the New Jersey them
eventually will name the
-
consumer
and
at
by
customer in
employees should not be
There is plenty of Manufacturers' Association and its
trust company
the Soviets have ^affiliated
corporations for many have told us
anticipate standard of living in order to ob¬
continuing labor surpluses in a tain a maximum reinvestmeht of
few areas where prospects for em¬ capital. In other words, they are
ployment expansion are unfavor¬ putting a large proportion of their
able. This problem can be mini¬ output,
perhaps nearly a third,
IL
Will Be Continued
'You
a
A secretary or re¬
daisical manner, leaves a feeling
of doubt in that person's mind
being handled to her entire
of
satisfaction.
"
years or more.
of 1950 and the of the United States and the West¬
1952, it has been ern nations in production and
estimated, reductions in the num¬ standard of living be maintained?
ber of workers directly or indi¬ Or. will Communist output grad¬
rectly engaged in the production ually creep up?
Tne answer to this question will
of civilian goods will yield, on a
net basis, about 31/2 mil-lion work¬ be found in the future productiv¬
fourth
her
the
were
Did Law Firm Dissolves
war
The preparatory mo¬
bilization period, such as we are
in now, should be used to expand
details
that
be used flex¬
can
ibly and specifically to meet tem¬
porary bottlenecks.
So it should
lation increase, veterans finishing
and
mum
who treats
.
standard of living and a high
economy,
there is
hour. However, over great danger that the Communist
taining the unemployment at its longer periods of time, increased economy of Soviet Russia would
current low levels.
However, we fatigue and absenteeism cut down eventually catch up and surpass
After the crisis of the next
may expect to encounter real dif¬ the output until finally the longer us.
ficulties in meeting the labor re¬ hours will produee no net result. two or three years, the primary off.' But the rude
awakening came
quirements of particular indus¬ Great Britain found it necessary attention of the American people when a
Vice-President, thanking
tries, occupations, and areas where to cut back the 64 and 72 hour must be directed to this major the voluble Miss Maze for her
defense hiring
will be concen¬ weeks to a maximum of 54 hours. problem.
sales assistance, voiced the hope
trated.
31
much of our
is possible."
as
the
these
are
confidence
ployees
than
they
with
do
officers!
retirement
of
banking hours.
A
customer
phoned
the
other
day and said, "You've really gr¬
amazing Real Estate Depart¬
"I'm so glad to hear tha
you see anything that ap¬
pealed to you?" "Oh, there wer^
Bedle, one time Governor (1875Employees, an Integral Part of
a couple of houses," she said, "tha'
78) and Justice of the Supreme
Program.
I liked. Mr. Long showed me inos
Court of New Jersey (1866-1880).
Public Relations, like charity, of
the likely possibilties." I wa;
begin at hime. Therefore, the em¬ quite pleased with her satisfactio n
ployees of the banking institution of our service. Then she went or
W. A. Johnson Opens
should become an integral part of "But
you know the nicest thing
directly
to
Honorable
WAKEFIELD,
Johnson is
ties
Post
I. —W.
offices
on
of
the
public in banks and trust
D. companies.
the
medium
staff.
to
education is the
train
the
bank
This is extremely important
because
or
used
trust
ment."
Did
A. the program. And
engaging in the securi¬
business from
Road.
R.
Joseph
an
they represent the bank
company in the eyes of
happened?" Tilting' on to the
phone. "What was that?" "It was
Mr. Long's secretary. Johnny was
that
Continued
on
page
32
•
32
(888)
The Commercial and Financial Chronicle
Continued
from
page
is true.
verse
31
Thank you for your
Trust
intelligent interest."
Company is appointed in
wills,
receiving
appoint¬
their
ments as Trustee and
The
Public Relations
Customer
Are Human Relations
bank
'Miss
and
drawn."
'
Oily'
had
.
Are Bankers Actually
Leaders?
One
thing
has' always
baf¬
fled me personally about bankers
and
trustmen.
They look upon
themselves
communities.
their
how
leaders in the
are
of
the
sense
in
actually
Yet,
of them
many
true
leaders
as
word?
Don't
many
of them follow, rather than
lead?
-Don't
until
many
of
them wait
something becomes well
trenched in
economic and
our
en¬
so¬
the
is
of
the
new
is
the
key word throughout this
who
He is the
pays
the
and
employees
officers
salaries
to
and
the dividends to the stockholders.
has
the
tions
as
your
feel
person
Nothing makes
have
a
with
"Good
staff
a
at home than to
more
member
greet
him,
afternoon,
Mr.
And
that a public relations Brown!"
recognition of a
properly operated, will customer's accomplishments like¬
you many times over,
in wise is a "must" in any good pub¬
you
enthusiastic
will have
You
staff
well
—
lic
an
relations
out to send him
indoc¬
Take time
program.
note when he is
a
and es¬ elected to an office in a civic or¬
sential nature of the banking and ganization or when he receives a
trust business. You
will have a promotion in his work. Also recog¬
trinated in the importance
staff
is
that
among
congenial
—-
themselves and with
You will
have
both nize
the and
other members of his
family
them likewise.
treat
Banking
neat, and trust business is
cial life before
customers.
their
intelligent and efficient staff. You and confidential and
will have a staff comprised en¬ treated accordingly. Acknowledge
tirely of human beings—not robots additional business which you re¬
inaugurating it in
institutions?
Perhaps
own
it's the nature of the beast.
Per-
tiaps it's that staunch,
con¬
solid
servatism
or
might
are
tiead.
that
coming
to
light.
Or
say
rearing its ugly
Something can be so solid
we
one
no
«aot
penetrate
can
the
even
customer
it
who
—
pays
the freight. The late Helen Hokincon
depicted
aptly
(banker—in the eyes
the typical
of the public
—when, having to leave
meeting, he remarked, "If
ideas
come
a
Board
any new
while I'm out,
up
my
vote is 'No!'"
cogs
in
a
wheel—all of whom ceive
a
from
a
staff which is selling
bank
your
every
iweek
and
trust
day of the week'
services
—
every
if
customers
treated
are
satisfied
in
bankers
look
and
into
what
there
are
enough
aggressive
and
trustmen
the
be
must
who
future and
done
to
can
can
see
make
the
each
department
human
as
is
and
—
business
more
customer
beings.
better
A
than
of the month—and every any salesman you can hire.
We
month of the year. You will have know that to be a fact!
He can
a staff which has gained for.
your truthfully speak from experience
■institution an assured and re¬ and becomes a rooter for your in¬
spected place in your community, stitution. You finally have arrived
place for banking in at the point of. assured success
our society and a
profitable opera¬ when you have customer endorse¬
tion. Perhaps these benefits can ment!
assured
an
.
,
Fortunately
progressive
personal
should be
very
customer
a
potential bank executives. You you're bound to get
will have
best
be illustrated
in the 1949
by
a
ies of the Trust
Company's quar¬
terly bulletin. There is little doubt
such whenever he
as
program,
dividends.
appreciated by the Jones. And
they will continue to receive cop¬
being and that the Trust Company has both
feelings and reac¬ a good customer and a valuable
employees. He likes salesman in the Jones.
enters the bank.
giving of management. I can as¬
rich
whole story and it was very much
same
to be treated
premise that a
successful banking institution is a
give-and-take
proposition.
JYe
have been talking only about the
repay
Recognition
And he, too, is a human
doubt my original
sure
of
business.
It's
comment
so
easy
to have
a
satisfied
Annual
Report of the customer and thereby increase
Girard Trust Company of Phila¬ your business.
\ The following ex¬
delphia. "Most banks and trust ample will illustrate how it can be
Thursday, September 6, 1951
.
company, and I can assure
that it will be favorable.
You'll continue to get more and
Use
of
Advertising and Publicity
Another
way to influence the
public is through the judicious use
of
advertising and publicity. This
take the form of a
straight in¬
can
stitutional type of ad which
again
explains
the
windows
local
services. Then
your
lend
can
or
products. Also,<
good working relationship
The power of the
press is known to everyone. Per¬
a
with the press.
is
can
you
ence
relations
in
over
in
others.
him
a
every
certain turn¬
a
poulation—perhaps
communities
some
moves
In
program.
more
than
in
But whenever a person
into your community, send
letter welcoming him
to
city.
Whenever any one of
strange place, we crave
recognition or an indication of
your
is in
us
a
friendship.
who
son
There's hardly
has
been
ever
Times
Square in New York City
crossroads
the
of
world
per¬
a
at
—
—
the
who
hasn't watched faces
passing him,
thinking and hoping that he may
whom he knows. And
see someone
people whom
slightly in
much
seem
than
on
may know only
home communities
we
our
closer when
vacation
a
only 500 miles
meet
we
trip—perhaps
from home.
away
And
I know
worthwhile
that
because
residents
new
nity
who
do
in
our
business
our
the
or
are
beings
the
about
and,
likely to
more
their problems.
make
is
company
human
you
understand
Don't
your
items.
news
that
Don't
which
news
benefit
seek
press
out
news
company. Give them
notice
of
worth-while
advance
your
only give out.
think
you
will
After all,1
company.
the press is also human and
figure
can
they
out in short order.
Don't be afraid to tell the
public
what
you
happens in
bank. They
your
are
much
you
imagine. One of
our
leading
interesting com¬
an
President within the
our
"I
year.
want
to
tell
you
he
said,
"I
now
Earl,"
an
interested -than
more
citizens made
entirely different impres¬
of
about
your
the
After
company.
of your
some
few projects and
a
activities
of
offi¬
reading
both
your
people
and
the
company,
I've
to the conclusion that
you've
come
our
really got
Real Estate and Mortgage Depart¬
ments, together with
therefore,
cers on
commu¬
with
to influ¬
way
trust
or
of
working with
tion follows that practice and you
would be amazed at the number
of
bank
composed
sion
institu¬
our
of
group
more
That will let the public know that
your
have
it is well
do
public—one
frankly,
community. They will ap¬
preciate any- gesture of friendli¬
other
no
other. Give them news about
your
institution—and the people in it.
past
your
ness.
the
ment to
So it is with every new person in
your
industries'
have
people that
lic
you
lobby
promotion of
the
haps there
customers, like the Jones, if
follow through on your pub¬
of
use
to
more
community there is
you
as
guardian.
phase
trust company.
or
person
Executor,
as
program
customer. There is no more
important person who enters the
we
nomination
as
relations
your
arrived say, "I don't know what it's all
right in about. It just came out in a bulle¬
tin the other day."
tow while Mr. Long and I planned
All in all,
our
itinerary.
When we were management makes the employee
ready to leave, Johnny was armed feel that he is a full-fledged mem¬
with a pad and pencil and was ber of the first team!
showing us all the wonderful pic¬
You probably are beginning to
he
well
Once again they received a letter
from the President in recognition
public
your
and Miss Oliver took him
tures
of
important
Another
quite unhappy when
Phase
as
Program'
..
an
outfit here that you
be proud of."
can
>;
Safe De¬
You then have
general done. Inasmuch as
public accept¬
we
render posit
Box
Department. Usually
ance
of
services to offer, they have the purely
your
institution.
Pro¬
fiduciary services, my il¬ you have won and earned a re¬
same kind of dollars to
vided, however, that your Public
lend, and lustration will exclude banking spected customer who
the
same
time profitable.
They
eventually
Relations program is well
know that "Nothing will come of generally the same lists of securi¬ services, although the same thing will be doing business with other
planned,
ties from which to choose invest- is
true in connection with those departments in your bank or trust consistent and continual. And your
nothing." They do not stop with
ments. The only way in which one services.
Mr.
customers, your community and
and
Mrs.
Arthur company.
granting
their
employees
only
your institution will prosper. Each
institution
can
excel Jones (fictitious for this
those things discussed above and banking
purpose)
banking and trust business an in¬
tegral part of our society—and at
companies have the
same
,
which they are more or less forced
to give them—just to keep enough
employees
their payrolls. They
educate their staffs.
on
continue
to
They
finding
are
of creating
ways
others is in rendering better serv¬
had
ice;
Trust
better
service, in turn,
be rendered only by better
can
per¬
sonnel."
In
addition
to
educating your
and maintaining that enthusiasm
staff, you should review your ser¬
which is
essential to progress.
so
vices
and
the
charges made for
safe
a
deposit box
with
Company.
"Everyone
pleasant when we came
so
the
was
into
as well, of the many valuable services of¬
will appreciate this new and at¬ fered by our
banking, institutions.
tractive appearance. They recog¬ And I mean literally
every person
nize accomplishments of the em¬ in this country — rich or
poor,
ployee.^There is^ nothings that^wiiis; black or white, young or
oldj
any
human
being
more Don't be afraid to advertise your
quickly than recognition. And it charges! Generally speaking, you
-doesn't
matter
whether
you're are rendering inexpensive worth¬
over
Program J :.§
like to do business with
your com¬
you
Then there is the larger number
of older residents who still are
off their
mortgage. At that time
Mrs. Jones made the comment to
marily
a case
teach
can
of education.
and
the
of
Trust
introduced to
Officers in the
bring
of the
while
services
of
public relations
program.
Expose this group, too,
to a well-planned educational pro¬
as
is practicable. That is
recogni¬
tion not only of the employee, but
of a fundamental human trait—we
all like to
and
we
see
our
in print
names
all like to have the feeling
of
Banking and trust business is no
longer of the tailor-made variety
for the chosen few—it's
got to be
made available to
everyone and
on
the
basis to both Mr. and
Mrs. John Smith and Mr. and Mrs.
same
some authority.
They have staff
meetings where every employee Jonathan Van Asterbilt,
IV.
I
may be heard, either directly or should like to quote briefly from
through one of their superiors in a letter which our company re¬
the chain of command. And they ceived only recently from a new
will
respect
this
mand. But there
chain
must
of
be
com¬
created
feeling of sincerity and mutual
respect all the way from the top
down. Management asks for sug¬
gestions and is not always dic¬
tating with no explanation for
a
certain
you
actions.
heard
some
How
often
bank
have
customer:
trust
these
gram.
This
of
part
your
probably will be
your
to
there
crack.
Yet,
<
something lacking in
public
company has given to our small
affairs.
I
had somehow formed
At
one
of
has
dent of the Red Cross."
The Trust
Officer
replied, "Well, let's go
right in and you can thank him
with this group.
first, what
It
is
to
see
Officer.
both," said the Trust
The Jones met the Presi¬
and
with
the
ousness
busy; I know he'd like
you
were
men
recent
m
of the visit.
short time later that the Trust Of¬
have
learned
that
the
am
delight¬
re¬
writer, working out
for
them..
an
Needless
estate plan
to
say,
the
re¬
only
are
^
-
past 14 years, has" become
associated with the firm of Stein
must
be
not
Roe
& Farnham. Mr. Tittle has
also been elected Assistant Secre¬
tary of The Stein
ham
sporadic.
Prior to
&
a
so
recent trust
will
get
to
•>"■!:;.
forming John M. Tittle
1937, he spent seven
in investment banking with
& Co. and Lawrence
VS, V..
,
Pur-
cell
Thurston has
formed
Thurs¬
ton
&
offices
in
Co.
with
Mutual Building to conduct
curities business.
;
.
'
.
;
H. R. Brown
SALT
Ross
the
opinion of your bank or trust
Farn¬
invest¬
Thurston Co. Formed
understand
its
&
RICHMOND, Va.—William
con¬
formulate
Roe
mutual
versity.
lic
will
•.■
Stern
ficer and trust services." The pub¬
gradually
;V;.
& Co. He is a
graduate in
Commerce of Northwestern Uni¬
aptly
people and they, in turn, will bet¬
ter understand both the Trust Of¬
in
Inc.,
'
Bonbright
President of the Harris Trust and
Savings Bank in Chicago,
Co.
years
public know that your
civic-minded and is
described it at
Fund,
ment trust.
munity.
own
Public
because, I
the
an
he
successful
a
program
CHICAGO, 111.—John M. Tittle,
Chicago investment counsel for
institution is
way,
have
£
services.
Let the
to
Stein, Roe, Farnkam
that
years
impressed ference, "The. Trust Officer should
graci- get out from behind his desk more
It was only a often and meet the public. In that
ficer was meeting with the Jones'
impression that trust com¬
panies were the concern only of attorney and life insurance under¬
moneyed people, and
your
institu¬
John Tittle With
and
the
employee fully surprised to find that the
It
gram.
your
.
much
informality
cus¬
you
only
trust
for
peat, Public Relations
Human Relations!
your contact
important factor in your com¬
Have your officers and
personally." "Oh, we don't want employees participate and become
to bother him.
You can just tell active in various projects in the
him," said Mr. Jones. "Let's find community.
As
Mark
Brown,
out if he's
unlimited stream of
who, in turn, will provide
Relations
been
meetings, Mr. Jones said to You never know when a person is
Officer, "Will you please going to find himself in need of
thank Mr. Cress for his
very nice
letter when I was elected Presi¬
Cooperation,
persistence will
and
dividends
easy
hardest nut
the Trust
dent
"I was very much
pleased with
the kind consideration which
your
fund.
than
Only those who
As Bulwer-Lytton once said, "A
good heart is better than all the
heads in the world." Yes—it's so
and
common
succeed.
more
tion.
overall
any
United States, the President of the
why and wherefore of his partic¬ can see what they are and they
ular job. And they include in this will know that they are
being
organizational chart as many titles treated the same as everyone else.
to
customers.
an
tomers
rich
Personal Trust Department to dis¬ public actually knows
very little
people will
cuss investments. There were sub¬ about what a
trust company or a
gladly pay as they do the doctor,
sequent meetings and the outcome trust department does.
It is an¬
Bank, or anyone of your em¬ the dentist, the attorney — or for
was the establishment of a
living other indication of "taking too
ployees. They have a perfect or¬ their life insurance policy. In fact,
trust with investment in our con¬ much for
it is a good idea to have a fixed
granted." And keep driv¬
ganizational setup where every
tract fund, which is similar" to a ing away at this educational
member of the staff knows the schedule of fees. Then,
pro¬
everyone
talking about the President
its
—with proper treatment. Educa¬
tion of the public is a vital part
Let them know,
do; that you want
girl in the cashier's department, to do business with them, and thatj
"I'm going to miss
seeing you so you can render them a real worth¬
often. I've certainly..enjoyed our while service. That is
particularly
visits." A few months
later, Mr. true with "Trust-Services," too.
one
others
realize.
can
teamwork
"You
a
and Mrs. Jones were
the
will enjoy it
have tried it can appreciate the
great satisfaction to both the bank
old dog new tricks!"
an
needs
one
And you
-
the Trust Company,"
they told the
Vice-President, in making a mort¬ not doing business with your in¬
gage loan application.
"We just stitution. That, I believe, is pri¬
They are adapting their internal these services. Make sure that you pany." They were granted a loan
and the President
acknowledged
systems to more favorable work¬ are offering to your community all
the new business in a
personal
ing conditions—and which to the of the services which it needs.
letter to them. This impressed the
amazement of the cynics, usually And you should know
your costs
Jones considerably and a short
provide greater profits. They are so that you can charge a reason¬
time later a friend of theirs came
alert to the appearance of their able fee,
allowing for a moderate
in to inquire about a loan on their
banks and trust companies—mak¬ margin of profit. The
banking and
ing a friendly and warm feeling in trust business is no longer exclu¬ recommendation. Later, Mrs. Jones
place of the cold and stoical edi¬ sively for the few. Almost every¬ inherited some money from her
fices of the past. Not only the em¬ one has some use for one or more uncle and they came in and paid
ployees* but the customers
Education of Public Is Vital to
■■■$'•■£ yife'
a
the
se¬
<
Opens
LAKE
Brown,
securities
CITY, Utah—H.
Jr., is engaging in
business
from
of¬
fices at 431 South Sixth Street.
Number 5044
Volume 174
.
The Commercial and Financial Chronicle
.
.
The
Indications of Current
Indicated
steel
Equivalent
Bteel
operations
Crude
1,965,000
and
output
condensate
to
runs
stills—daily
Gasoline output (bbls.)
Kerosene
,
daily
(bbls.
average
of
42
Aug.
Aug.
Aug.
Aug.
(bbls.)
_
(bbls.)_
output
Aug.
Residual fuel oil output (bbls.)
Aug.
Stocks at refineries, at bulk terminals, in transit and in pipe lines—
Finished and unfinished gasoline (bbls.) at
Aug.
Kerosene (bbls.) at
Aug.
Distillate fuel oil (bbls.) at
Aug.
Residual fuel oil (bbls.) at
v
—Aug.
Distillate fuel oil output (bbls.)
;
—
*
Revenue
%
•
6,220,250
25
25
25
25
6,470,000
6,396,000
21,526,000
2,254,000
2,497.000
25
25
8,761,000
8,593,000
8,763,000
8,442,000
8,858,000
8,543,000
25
25
25
25
115,934,000
116,668,000
121,156,000
28,923,000
26,959,000
24,829,000
76,938,000
44,957,000
65,841,000
83,113,000
46,753,000
47,166,000
Mixed
of
connections (number of cars)
Revenue freight received from
819,875
666,622
673,492
CONSTRUCTION
construction
^Private
-f~-r——-,^,2
»
—__
—
—.———Aug. 30
——Aug. 30
-
construction
Public
and
State
Federal
municipal
_.
$257,381,000
.
$267,571,000
$188,893,000
$342,486,000
158,404,000
oil
Refined
OUTPUT
Bituminous
87,412,000
97,332,000
101,481,000
109,167,000
68,756.000
76,590,000
83,085,000
28,576,000
24,891,000
26,082,000
■
Beehive
coke
.
10,800,000
10,290,000
10,270,000
of
42
712,000
737,000
952,000
127,700
*140,200
150,200
149,300
Electric
output
100
SYS¬
Aug. 29
279
268
232
(in
Sept.
INDUSTRIAL)—DUN
AND
BRAD-
&
'
V
'
5'"'
«&£*,'.
,V ;
IRON AGE
••
V"
Y'-
Pig
.
Domestic
M.
'$29,215,614
yT'
Lead
(New
(St.
Zinc
(East St.
Louis
—
—————
-
_
————;
4.131c
4.131c
$52.69
$52.69
$43.00
at
$524,978,200
37,123,541
487,854,667
—
45,557,765
City
of
York
New
370,014,127
City
FAILURES—DUN
of
BRADSTREET,
&
July:
27.425c
number
102.000c
17.000c
16.800c
17.500c
17.500c
16.800c
17.500c
a.
.
v
S.
98.94
111.25
110.34
service
115.04
109.60
110.15
110.34
Sept. 4
104.31
104.31
103.80
109.2
Sept. 4
107.80
107.62
107.09
112.0C
111.25
111.07
110.15
116.8C
Sept. 4
115.04
114.85
114.46
MINES)
OF
(BUREAU
.
To
Africa
tons)—
(net
(DEPT.
GINNING
MERCE
—
—
establishments as of Aug.
consuming
public storage as of Aug. 4
month of July
2.34
2.8<
In
3.10.
3.15
2.85
2.86
2.6.
In
2.89
2.91
2.96
2.6'
Cotton
Sept. 4
3.15
3.16
3.20
3.49
3.49
3.52
3.29
3.30
3.34
3.0'
Spinning spindles in place on Aug. 4
3.10
3.11
3.15
2.8:
2.90
2.91
2.94
2.61'
Spinning spindles active on Aug. 4
Active spindle hours )000's omitted) July—
Active spindle hours per spindle in place July
Sept. 4
452.0
456.2
467.1
469.:
INDEX
2.90
.
.
3.2]
"
:
Production
(tons)
—
;
—
;
—
Unfilled orders (tons) at end of period
228,IB
231,788
223,617
225,800
606,879
1,082,818
1,307,194
5,188,941
96,289
114,981
172,186
212,947
207,761
75,400
163,701
of
93
97
10C
Aug. 25
-
sales
ultimate
to
(000's
May
ultimate
from
568,311
537,591
645,49c
148.3
148.0
148.2
132.:
20,518,009
23,183,000
20,871,000
9,241,000
410.8
25,136,000
23,007,009
20,910,000
20,525,009
8,677,000
7,284,000
514.3
408.1
25,466,691
25,940,310
22,394,246
$451,676,900 $456,778,900
45,711,427
45,501,032
$407,411,300
consumers—
omitted)
customers—month of
May
customers
of ultimate
Number
20,910,000
INSTITUTE:
ELECTRIC
SDISON
'
94
516,856
Aug. 25
—
__
818,714
1,754,427
(DEPT. OF COMMERCE):
COTTON SPINNING
2X1,071
181,072
187,002
188,010
-Aug. 25
Aug. 25
Aug. 31
;
y Percentage of activity—
767,282
1,370,446
49,746
20,871,000
spindles active as of Aug. 4
Revenue
—
Aug. 4
public storage as of Aug. 4
Kilowatt-hour
ASSOCIATION:
establishments as of
consuming
Month
(tons)
454,636
538,468
2.8'
-—Sept. .4.
Sept. 4
Sept. 4
i
''
at May——
V
".'V
■1
AVERAGE
6TOCK
=
DRUG
100
REPORTER
PRICE
INDEX —1926-36
—
DEALERS
SPECIALISTS
AND
Odd-lot
sales
ON
by dealers (customers'
THE
ODDSTOCK
ICAN
of
value
purchases by dealers
(customers'
sales
739,10C
$3S ,137,547
$37,156,123
$34,542,153
other
sales
23,728
T 26,550
22,682
25,67:
208
312
604
131
23,520
Aug. 18
orders—Customers'
total sales
26,238
736,740
625,726
Customers'
short
10,167
22,166
4,85£
J
sales
7,100
,
25,534
22,078
^
729,701
'
sales
Other
:
sales
Round-lot purchases
Number of
726,573
603,560
$2' 167,703
$30,339,739
$26,161,921
178,420
217,730
174,960
223,03C
178,420
217,730
318,560
312,010
318,500
271,43C
176.7
*176.7
177.6
167.f
188.7
*188.6
189.9
179.4
Total
180.7
181.0
177.2
167.7
Total
258.3
262.5
264.0
249.4
Operating
187.3
*186.0
185.9
176.1
278.7
278.5
275.3
165.8
*165.9
166.9
168.1
168.1
172.6
Month
commodities
Farm
products
Grains
,
Livestock
Foods
Meats
All
.
commodities
Textile
other than
farm
foods
products
Fuel and
lighting materials
.
Metals and metal products—
Building
\
and
•
Lumber
——
allied
products
Chemicals
CEMENT
and
"Revised.
{Not available.
Aug. 28
28
-Aug,
Aug.
Aug.
— Aug.
28
28
28
»
j,
—
137.7
/
-
595,06*?
*134.818
111,233
838
39/
(at
EARNINGS
operating
Aug. 28
—
Net income
$855,753,244
677,684,976
79.19%
income before charges
(est.)——-——
after charges
134.8
ZINC
OXIDE
174.8
221.7
216.3
Production
350.2
t
139.8
124,6
(BUREAU
OF
140.0
*140.0
78.07%
$102,888,968
74,936,575
50,000,000
$779,182,380
588,763,30?
75.56%
$84,293,23t
90,025,721
75,000,000
MINES)—Month
Shipments
*
$96,568,337
63,930,048
50,000,000
$888,715,928
693,802,498
150.9
188.2
•'
93%
CLASS
I ROADS
AMERICAN RRS.)—
expenses
railway operating
Net
156.4
224.2
*341.2
15,293
96%
—
OF
ratio
137.8
*
16,439,000
99%
revenues
operating
*221.7
•
24,749,000
Month of June:
"188.1
341.2
20.001,000
24,894,000
*19,390,000
21,984,000
Capacity used
137.8
1
21,925,000
24,935,000
mills (bbls.)
end of month—barrels)
188.2
,,
^Includes 466,000 barrels of foreign crude runs.
706,702
(BUREAU OF MINES)—
Shipment from
263.8
1
coaches
(bbls.)
..of
'
May:
Stocks at
,
<
-;
/y.
(short tons
figure.
{Decrease all
19,050
—-
(short tons)——.
—
end of month (short tons)
"Revised
;
motor
(ASSOCIATION
Aug. 28
Aug. 28
materials
*617,685
*482,029
of June:
Production
RAILROAD
U. S. DEPT. OF LABOR—
1926= 100:
All
492,311
665
trucks
T&X6S
223" 030
174,960
of
Number
Stocks
—
motor
—
cars———
$27,433,501
by dealers—
PRICES, NEW SERIES
WHOLESALE
67,08*
110,239
vehicles————
passenger
of
Number
653,142
of shares
Number
3,464
147,725
ASSN.)—Month of July:
of
number
Total
Aug. 28
Short
9,644
144,810
S.
U.
IN
FACTURERS
PORTLAND
of shares—Total sales—
Number
257,066
165,513
FACTORY
SALES FROM
(AUTOMOBILE MANU¬
VEHICLE
PLANTS
Aug. 18
value
341,952
381,407
month (number
of cars)
Aug. 18
Aug. 18
—Aug. 18
sales
207,966
5,290
(number of cars)-—-—
724,85(
-
Round-lot sales by dealers—
,,
July:
Backlog of orders at end of
Aug. 28
Aug. 28
Aug. 28
other
223,795
OUTPUT—DOMESTIC (AMER¬
RAILWAY CAR INSTITUTE)—Month
Aug. 28
Customers'
Dollar
660,242
Aug. 18
Aug. 18
Aug. 18
Aug. 18
of shares—Total sales
1
$32,232,111
Aug. 18
Aug. 18
Number
v
769,249
sales)—
short
Customers'
J
24,254
26,808
MOTOR
Customers'
Number of
;
26,927
774,361
29,270
845,551
.dVVv '
CAR
Deliveries
Aug. 18
Aug. 16
Aug. 18
Number of shares
Odd-lot
Y.
purchases)—
Number of orders..
Dollar
N.
43,684,250
-
202,408
(tonnage) estimated—
Shipments
COMMISSION:
EXCHANGE
EXCHANGE—SECURITIES
(tonnage)—estimated———
closed
Contracts
FREIGHT
TRANSACTIONS FOR THE ODD-LOT ACCOUNT OF
LOT
•"
STEEL
TION)—Month of July:
AND
;
(AMERIINSTITUTE OF STEEL CONSTRUCSTRUCTURAL
FABRICATED
CAN
PAINT
OIL,
To",572
90,460
Linters—Consumed
2.63
Baa
PAPERBOARD
4
3.11
-
-
334,046
674,909
of July_
Lint—Consumed month
2.57
;
Railroad Group
Public Utilities Group
119,394
344,619
COM¬
OF
Sept. 4
Sept. 4
Aa
413,838
.292,641
1,803
COMMERCE):
LINTERS — DEPT.
RUNNING BALES:
AND
•
—
OF
Running bales (exclusive of linters) to Aug. 16
COTTON
475,131 >
312,337
28
162,766
tons)
(net
2.55
Aaa
Orders received
:
tons)
Sept. 4
Sept. 4
Sept. 4
corporate
NATIONAL
1
(net
tons)
(net
In
AVERAGES:
Bonds
COMMODITY
$19,538,000
—
(net tons)—
Europe
Asia
America
Central
America
In
MOODY'S
1,495,000
$22,773,800
anthracite
Pennsylvania
of
and
South
COTTON
120.0.
Sept. 4
—
1,619,000
1,006,000
$21,088,000
-
tons)
North
To
120.84
Sept. 4
Railroad Group
Public Utilities Group
Industrials Group
—
5,251,000
3,085,000
1,398,000
liabilities
119.6!
115.6:
;
2,640,000
7,434,000
June:
To
116.2:
113.89
—
$8,533,000
6,234,000
2,666,000
liabilities
of
(net
102.17
98.02
111.07
99.19 '
•
Sept. 4
115.82
Group
$5,014,000
4,778,000
exports
To
'-v"
?''*
'
114.85
Industrials
6a
694
4,456,000
:
liabilities
Month
U.
To
116.02
A
43
699
$7,790,000
liabilities
liabilities
EXPORTS
COAL
16.500c
|
115.24
Average
71
55
number
liabilities
Total
13.800c
17.000c
17.000c
Sept. 4
DAILY
79
349
665
service
number
Wholesale
14.000c
16.800c
27.425c
103.000c
Sept. 4
YIELD
66
390
74
1
-
22.425c
106.000c
27.425c
Sept. 4
BOND
151
66
340
number
number
129
130
number
Manufacturing
22.230c
24.200c
24.200c
103.000c
Aug. 29
,
-
Government
13,793,725
$385,041,042
51,458,270
333,582,772
Retail
Average corporate
S.
47,404,159
$415,571,892
York
Total
$40.92
Aaa
U.
22,799,198
83,655,330
Retail
$46.61
$43.00
24.200c
Aug. 29
Aug. 29
Aug. 29
•
at
MOODY'S BOND PRICES DAILY AVERAGES:
U. S. Government Bonds—
MOODY'S
99,571,771
9,395,993
3.837f
4.'"
.
52,246,490
87,269,536
52,023,538
'
*
118.101,730
11,930,748
INC.—Month
QUOTATIONS):
at
)
44,119,420
94,152,446
69,392,224
Construction
$43.00
Aug. 29
Aug. 29
Louis)
38,567,089
CITIES—Month
—
Commercial
at
York)
Lead
$31,062,528-
88,833,880
64,846,220
&
Central
New
14:
$52.69
Aug. 28
at
refinery
Export refinery at
Straits tin (New York)
V
$27,022,408
77,700,220
57,522,360
DUN
—
Pacific
•
4.131c
Aug. 28
—
J.
1404,000
80,544,082
VALUATION
Central
Construction
PRICES (E. &
Electrolytic copper—
197,844,000
13,433,000
export
-iV/y
Scrap steel (per gross ton)
IfETAL
*213,372,000
14,229,000
Mountain
6,459,386
171
130
164
Aug. 28
(per lb.)
(per gross ton)
iron
10,135,000
24,420,424
Central
Commercial
«v:'
.•
Finished steel
'
13,618,000
*10,978,000
16,556,000
and
(bbls.)
——
Manufacturing
PRICES:
COMPOSITE
15,319,000
11,097,000
(bbls.)
INC.—215
Atlantic
West
288
•
7,003,209
7,076,534
,145,609
1
Aug. 30
STREET, INC.
"*
17,000
16,051,000
159,441,000
July:
Wholesale
(COMMERCIAL
FAILURES
6,000
218,506,000
stocks
PERMIT
BUSINESS
kwh.)
000
200,508,000
133,800,000
16,702,000
191,268,000
;
Outside
INSTITUTE:
ELECTRIC
173,687,000
16,640,000
i
Total United States
EDISON
gal¬
(bbls.)
domestic
consumption
England
Middle Atlantic
11,005,000
827,000
Aug. 25
INDEX—FEDERAL RESERVE
SALES
STORE
TEM— 1935-39 AVERAGE =
183,400
,
r
of
(bbls.)
imports
BRADSTREET,
South
Aug. 25
(tons)
(tons)
DEPARTMENT
3,031,500
6,000
output
New
97,357,000
22,424,000
,_Aug. 25
and
anthracite
..
..
(bbls.)
products
BUILDING
South
S. BUREAU OF MINES):
lignite (tons)
(U.
coal
Pennsylvania
123,100
207,914,000
oil
imports
Indicated
East
COAL
155,931
„
(bbls.
Natural
222,705,000
119,781,000
160,049,000
Aug. 30
——————Aug. 28
—
—
—
—
-
—
137,021
3,452,166
ENGINEERING NEWS-
—
RECORD:
Total U. S. construction
4,472,654
4,151,361
165,362
3,338,000
129,947
Month
INSTITUTE—Month
production
crude
(bbls.)
ENGINEERING
15,529
For
—
each)
Increase—all
CTVIL
63,519
11,997
CM therms)-;
..
domestic
Domestic
693,005
67,454
11,369
therms)
(M
PETROLEUM
lons
838,665
72,698
3,719,134
sales
gasoline output
Benzol output (bbls.)
829,398
838,587
680,216
/
end of July
July
(M therms)'
gas
May:
Total
Crude
Aug. 25
Aug. 25
Ago
U. S.
therms)
sales
gas
AMERICAN
41,697,000
of
in the
(short tons)
sales
gas
Manufactured
2,272,000
7,559,00c
Yea*
Month
MINES):
ASSOCIATION
(M
gas
Natural
105,793,000
29,504,000
GAS
Previous
May:
Total
20,263,000
21,539,000
2,540,000
8,174,000
•
.
(number of cars),
freight loaded
of
5,699.43C
6,197,000
6,204,600
6,240,850
116,500,000
85,543,000
OF
short tons)—Month
Stocks of aluminum
21,592,000
AMERICAN RAILROADS:
ASSOCIATION OF
(in
1,890,100
2,021,000
AMERICAN
—
average
(BUREAU
Production of primary aluminum
1,995,000
date:*
of that
are as
I
Mourn
ALUMINUM
98.C
INSTITUTE:
PETROLEUM
oil
Sept. 9
(net tons)
of quotations,
cases
Ago
101.1
99.8
98.3
gallons each)
Crude
Ago
Sept. 9
in
or,
either for the
are
Latest
to—
ingots and castings
AMERICAN
Week
that date,
on
Year
Month
Week
capacity).
of
(percent
month ended
or
Previous
\
production and other figures for the
cover
Dates shown in first column
month available.
or
Latest
STEEL INSTITUTE:
AMERICAN IRON AND
following statistical tabulations
latest week
week
Business Activity
33
(889)
stocks.
17,857
19,683
16,656
17,934
19,58i>
13,562
11,168
15,743
34
(890)
The Commercial and Financial Chronicle
Securities
1M*W
Filmcrs
new
-
.
I\egibixauun5 <uiu i iniiga
_
_
..
/ c??3? J™ *
o
Now
?}
*
(ia/,9)
\
,
.
1Q01
Sept. 5 filed $8,000,000 of first mortgage bonds due 1981.
Undewriter
Probable
To
be
bidders:
determined
Halsey,
by competitive bidding
Stuart
Co.
&
Inc.;
Lehman
in
t[Qn
Qf
st
finance
New
Fischer
Q
r!! tv! S
T
.
ISSfnrn
Whit<vWeld & Co. Proceeds—For
•
other
construction
other
Expected to be opened about
corporate purposes. Bids
(Charles D.), Inc., Crisfield, Md.
Aug 23 (letter of notification) 10,000 shares of 5% cumulative preferred stock.
Price—At par ($10 per share).
Underwriter—None. Proceeds—To pay in part for construction of new plant.
^
Central Telephone Co., Chicago, III.
Aug. 28 (letter of notification) 26,500 shares of common
stock (par $10), to be offered for
subscription by common
stockholders (other than Central Electric & Gas
Co.) on basis of one share for each three shares held,
with
an
share.
oversubscription privilege.
Underwriter—None. Proceeds—To
edness to parent
new
Price
repay
(Central Electric & Gas Co.)
construction.
Chamnion
$10.50 per
-
indebtand for
Offering—Expected early this month,
Mine**
Co
nPnvpr
Aug3™ultte^0f HOtiiication)
noUffcatSn?
('i/eiier ot
Colo
loan
companies.
Office—635 Com-
&
Aug. 31
of:
excess
$159,705.10.
Underwriter—None.
Proceeds—
working capital.
Circuit
Breaker
Co
Philadelnhia
writers
Smith
Collings
&
1^2 caPliai>
mg caoltal
Co
Barney
'
Co.
&
Philadelphia
New
Pa
York
C.
and
Proceeds—For
C.
work-
.
International Refineries, Inc.
(9-25)
Aug. 31 filed $3,000,000 of 10-year subordinate sinking
fund debentures, due Sept. 1, 1961, and 750,000 shares of
common stock (par $1) to be offered in units of
$20 principal amount of debentures and 5 shares of com. stock.
Price-To be supplied
by amendment
(may be $25 per
unit). Underwriters—Eastman, Dillon & Co., New York,
and First Southwest Co.,
Dallas, Tex. Proceeds—From
sale of units, together with
$4,000,000 loan from Guaranty Trust Co. of New York, will be used to purchase
Colo. /'•-
(par $1) and 50,000 shares of non-voting
(par $1). Price—$1.10 per share. Underwriter—None. Proceeds—For working capital. Office—
(par
1 000000
shares of
one
Proceeds—To reduce bank loans and for
working capital.
Office—408 Junipero
St, San Gabriel, Calif.
Consumers
Cooperative Association, Kansas
of indebtedness.
Underwriter—None. Proceeds—To purchase 6,000 shares of common stock of
The Cooperative
Farm Chemical
Association, and for other corporate
poses, including financing
receivable.
Business—A
inventories
of
regional
and
farmers'
pur-
accounts
cooperative
purchasing association
of the federated type, organized
cooperative basis to supply member
associations with the products
required by their farmer
members and patrons.
and
operated
on
a
.
Cribben
&
.
..
Sexton
Co., Chicago, III.
Aug. 30 (letter of notification) 500 shares
stock. Price
Hummer
—
Davis
of preferred
$13.50 per share. Underwriter
Frozen
Food*
Inr
AuST(EW^otmc'ation)
share
one
n
of
stork
common
fnar
*1 ^
stockholder*
common
eight shares held
and
To
he
with
nroduction
^00 000
refinery in late
Del-Mar Mortgage Corn
Elliston
Leith
on
hv
for-
artivitm*
Loin
S
from
improve-
and in
1952.
Del
Bldg.
on
reai
Plaza
and
money
Citv
'
(Mont.)
(non-assessable)
stock.
Price
—
At par
($1
per
Proceeds—For exploration
opment of mining
properties.
of notification)
St., Carson City,
Francisco, Calif.
Leon
1,000,000 shares of comPrice—At par (10 cents per
but
will
be
sold
through
Land
&
Nev,
156
and
Montgomery
St,
San
stock
(par
$10
writer—Beer
&
cents).
Co,
Price—$1.15
Dallas,
Tex.
share.-Under-
per
Proceeds—To
retire
Macco Corp.,
Paramount, Calif.
(letter of notification) 1,000 shares of common
(par $1). Price—At market (approximately $10
share). Underwriter
a
—
None.
Proceeds
To E.
—
A.
director of company. Office—14409 So. Para-
Blvd" P™'*
Calif"
share).
and
de-
crease
working
capital.
Office
—
661
15th
Ave,
East
Michigan Associated Telephone Co. (9/18)
Aug. 31 filed 32,000 shares of $2.70 cumulative preferred
stock <Par $50>- Price—To be supplied by amendment,
Underwriter— Paine, Webber, Jackson & Curtis and
stone & Webster Securities Corp, New York. Proceeds
—From sale of stock, together with other funds, to pay
S1-600'000 bank loans made for construction purposes.
Michigan Gas & Electric Co.
Aug. 29 (letter of notification) 1,008 shares of common
stock (par $10)^ Price—At market (about $25 per share):
Underwriter—J. Arthur Warner & Co, Inc, Boston,
National Container Corp. (9/19-20)
Aug- 29 fded $20>000>000 of 15-year sinking
fund debentures due Sept. 1, 1966 and 480,000 shares of
$1.25 convertible preferred stock
(par $25). Price—To be sup-
plied by amendment.
Underwriters—Halsey, Stuart
C°- *nc-> and Van Alstyne
and Van Alstyne Noel Corp.
Pa^ $6,175,000 of 4%
Noel
Corp.
for
for stock. Proceeds—To
notes due March
1,
&
debentures
re-
1964, and for
approving the
new
preferred stock issue.
ture of proposed
corporation.
Northern Oil Co., Salt Lake
City, Utah<
—
—
Cleveland
Pennsylvania Electric
Aug.
Oct.
all
offices
of
common
To
Brown & Sons
RalUmnfp
Theodore'
Piedmont Aviation, Inc., Winston-Salem, N. C.
Aug. 28 (letter of notification) 5,000 shares of common
^0<ik (par $1) Price—At approximately $3.25
Underwr.ter-K.rchofer & Arnold Associates
per share.
Inc., RaProceeds—To latter, who secured the stock
to
an
notion
issued
in
connection
with
caip
nf
ls5ueSjln connect,on wlth sale Qf
sto<* to
-
rv
n
*
c
11!^
±?m',
g
'
Aug. 27 (letterof notification) 100,000 shares of common
stock. Price—At $1 per share.. Underwriter—None, sales
to be handled by officers of company. Proceeds
For
,
incident to development of business
expenses
ducti0n
manufacture
or
of
and
sanitary mattresses,
pro-
or
kin-
tondDpr^UCtS' 0ffice~171? M St, N. W, Washing'
"
^
N. J. (9/7h
Aug. 31 (letter of notification) 2,000 shares of non-vot?w?u
ing common stock (no par) to be offered for subscription
to common stockholders of record Aug. 30 at rate of one
share for each five shares held; rights will expire on
Sept. 2.7. Price — $50 per share. Underwriter
None,
Proceeds — For working capital. Office
721 Market
—
—
Transgulf Corp., Houston, Tex.
Aug. 30 (letter of notiifcation) 8,000 shares of capital
stock (par 10 cents). Price—$1.25 per share. Underwriter—Gearhart, Kinnard & Otis, Inc, New York.
Proceeds—To Gearko, Inc, N. Y, the selling stockholder.
Ultrasonic Corp., Cambridge, Mass.
Sept. 4 filed 100,000 shares of common stock
Price
(par $5).
Approximately $13 per share. Underwriter—
Coffin, Betz & Co, Philadelphia, Pa. Proceeds—To exercise options for purchase of capital stock of S. A.
—
o?!1
+?
°^P"\
nAA
v
V
1
(letter of notification) 1,000 shares of capital
(no par).^ Price
At market (about $49.50 per
share). Underwriter—Cyrus J. Lawrence & Sons, New
York. Proceeds—For working capital.
/,
1
Universal Farm Sales, Inc., Saginaw, Mich.
'
Aug. 23 (letter of notification) 45 shares of common stock
(par $100) and 250 shares of 5% cumulative preferred
stock (par $100), of which 27 shares of common stock
will be sold for account of two selling stockholders and
remaining shares for company's account to employees
and directors, and a few selected individuals. Price—
Of common, $320 per share, and of preferred, $100 per
fare. Underwriter-None foceeds-To company, will
be ^sed *?r
w0S-ir}g caP1tak Office 3036 Carrollton
Hoad, bagmaw, Mich.
30
filed
1, 1981.
Co.
Probable
bidders:
Halsey,
stock.
Price—At
($1
par
per
share).
-
common
Underwriter—
None.
Proceeds—To purchase 50,000 shares of capital
(par $1) of Aegis Casualty Insurance Co. at $1.50
per share, and for operating capital.
Office—E and C
Building, Denver, Colo.
stock
/vcro Manufacturing Co.,
Columbus, Ohio
Aug. 14 (letter of notification) 40,716 shares of
ers
f
common
(par 25 cents), to be offered to present stockhold-
at rate of four-fifths
(unsubscribed
shares
of
be
to
a
share for each share
sold
to
public).
per share
share
held
Price—$7
to stockholders and $8
to public,
Proceeds—For plant improvements
expansion and for working capital.
Office—2040
East Main Street, Columbus, Ohio. :
r
T
per
Underwriter—None.
and
Flake Graphite Co.,
Birmingham, Ala.
(letter of notification) $100,000 of 7% 20-year
sinking fund bonds dated Jan. 15, 1949 and due Jan. 15,
1969 (in denominations of $1,000 each). Price—At:
par.
Underwriter—Odess, Martin & Herzberg, Inc.. Birmingham, Ala.
Proceeds—For
plant expansion.
Office—420
Comer Bldg" Birrningharn' Ala'
(10/9)
$5,000,000 of first mortgage bonds dueUnderwriters—To be determined by com-
petitive bidding.
Co. Inc.;
Previous Registrations and Filings
Aegis Corp., Denver, Colo.
Aug. 8 (letter of notification) 80,000 shares of
Alabama
(Jetter of notification) 200,000 shares of common
50 cents per share. Undewriter
None.
Proceeds—For drilling test wells. Office—19 West
South
Temple, Salt Lake City, Utah.
stock. Price
to
underwriter—Alex
proCpids
July 12
,
Aug. 30
San Francisco
Md
shafe*
PhilliosExecutivp^P
™.. mceedt-To.Th^ott Phmtps Executive VicePresident, who^is the selling stockholder.
;-
stock
Holding Co., Lexington, N. C.
(letter of notification) $115,000 of debentures;
shares of preferred stock and
10.000
shares of'
common
Chicago
1 000
stock
^oW cons^ruc^on- Meeting—Stockholders will vote Sept.
18
Pittsburgh
Cambridge
Aug. 30
stock. Price—Of
debentures, $100 per unit; of
preferred, $100 per share; and of common, $1 per share,
Underwriter—None. Proceeds—To provide capital struc-
Private Wires
"g*
noU^cation")
of
Oct. 9.
on
Inc
Price-At market
*0
stock. Price—At par ($100 per share). Underwriter—
None, stock to be sold by officers. Proceeds—To in-
1,740
Philadelphia
^
^ 0
^fett^
27
Aug. 27 (letter of notification) 1,250 shares of preferred
North Carolina
v
Au<*
Packing Co
Wo«ds Machine Co., Boston. Mass.
Mercury Loan Co., East Moline, III.
Aug. 27
Boston
Phillios
St., Camden 2, N. J.
Cattle
Co., Ft. Stockton, Tex.
Aug. 28 (letter of notification) 260,000 shares of common
on
New York
Bids—Expected to be opened
SSi^i^rScL^r^<^aros)hareS' and
lend
Consolidated Mining Co.
(letter of notification
50,000 shares of common
Underwriter—None.
ve
1951
Dover
Underwriter—None. Proceeds—To
Aug. 27
further
to
an
sunn lied
Proceeds—For
proposes to borrow
Life Insurance Co. for
mortgages. Office
State St,
Dover, Del.
i»ixy,
Nev.; and
Sam B. Bailey, 1480 Elmhurst Ave, Lovelock, Nev.
Proceeds—For expenses incident to exploration and development of mining properties. Offices—215 N. Carson
Pellegrin,
r
j
—
Citu
Aug. 30
working capital and other coraorate requirements
estate
Utah
W. A. Hayes, 156 Montgomery St, San Francisco, Calif.;
Lester B. Walbridge, 263 West Fir St, Elko,
subordinated
—Company also
Mutual
|7Va(leatter
(non-assessable) stock.
share). Underwriter—None,
per
Uvinatnu
oversubscription privilege
Price
amendment.
Underwriters—None
ther expansion of
exploratorv
Penn
Salt Lake City
0.
Moline, 111.
for each
ments and additions to
n;i
stock
•
offered for subscription bv
basis of
Continental Bank Bldg
intersiaxe uii •& ueveiopmeni to., tarson
Wayne
plant.
be
stock
Harold
—
To
—
6% debentures. Price—At
principal amount (in denomination of $100 each);
Underwriter—R. S. Dickson & Co.
Charlotte, N. C. Proceeds—For working capital- to
purchase
outstanding preferred stock; and toward repurchase of company's
Deep Rock Oil Corp
Aug. 31 filed 49 912 shares
stock
fh*Pley*+? £?'
•r s ^
preferred, together with $3,received from Associated Electric Co. for
165,000 common shares, will be used to repay a $2;500,000
ba-nk loan
.thu remai"der *or. aew construction.
mirsuant
common
»
?29'522
SSS
debt and for working capital.
&
Co, Chicago, 111. Proceeds
Jalass, the selling stockholder.
and for
,
mon
City, Mo.
Aug. 30 filed $5,000,000 of 4J/2% 10-year certificates of
indebtedness and $3,000,000 of 20-year 5V2% certificates
Bids—Tentatively
? —r'
Interstate Finance Co., Salt Lake City, Utah
Aug. 29 (letter of notification) 100,000 shares of voting
Aug
program.
Aug. 30 filed 30,000 shares of cumulative preferred stock,
(par $100). Underwriters—To be determined by
competitive bidding. Probable bidders: W. C. Langley
leigh, N. C.
322
construction
series E
working caDital
common
Clary Multiplier Corp., San Gabriel, Calif.
Aug. 29 (letter of notification) 23,250 shares of common
stock (par $1).
Price—$5 per share. Undewriter—None.
Beane, Union Securities Corp. and White,
(jointly); Equitable Securities Corp.; Kuhn,
Co., Lehman Brothers, Drexel & Co. and
Salomon Bros. & Hutzler. (jointly); Harriman
Ripley &
Co., Inc.; A. C. Allyn & Co., Inc.; The First Boston Corp.;
Shields & Co, and R. W. Pressprich & Co.
(jointly).
&
& Co. and Glore, Forgan & Co. (jointly); Smith, Barney
Pa
gep^ 5 filed 60,000 shares of convertible preferred stock
(par $50). Price—To be supplied by amendment. Under-
land' to construct refinery and related facilities
stock
&
Weld & Co.
Proceeds—For
i,uuu,uuu snares 01 capicapi
cent). Price—Three cents per share.
Underwriter—None. Proceeds-For mining equipment
and working
capital. Office-941 Monroe St, Denver,
*14,
Fenner
Loeb
Porter
preference stock (no par). Price—To aggregate not in
jp0r
jessksssss
Co., Hatboro, Pa.
Jexpected to be opened on Oct. 9.
(letter of notification) 15,970 shares of class A
Pennsylvania Electric Co. (10/9)
l-T-E
Briddell
and
0rleanS) La<
Thursday, September 6, 1951
...
Registration
Firs* Louisiana Partnership, New Orleans, La.
Aug 23 ^etter of notification) 300 certificates of ownership in partnership. Price—$1,000 per unit. Underwriter
None, but sales will be handled by Edward R. Goodrum
an(j an employee.
Proceeds—For use mainly in operamon
.
Stuart
&
Kidder, Peabody & Co., Merrill Lynch, Pierce,
if Alabama Power Co.
Aug.
1981.
10
filed
$15,000,000
Underwriters—To
bidding.
Probable
(9/11)
of
be
first
mortgage
determined
bidders^ Halsey,
by
Stuart
bonds
due
competitive
& Co. Inc.;
,
Volume 174
Number 5044
.
.
The Commercial and Financial Chronicle
.
.
Morgan Stanley & Co.; Blyth & Co., Inc.; Harriman Rip¬
ley & Co., Inc.; Shields & Co. and Salomon Bros. &
Hutler (jointly); Drexel & Co.; Union Securities Corp.
and Equitable Securities
Corp. (jointly); Kidder, Peabody & Co.; The First Boston Corp.; Lehman Brothers.
Proceeds—For expansion program. Bids—To be received
up to 11 a.m. (EDT) on Sept. 11 at 20 Pine Street, New
York, N. Y.
Co., New York.
ization
in
needs
few
a
Underwriter—Tellier
working capital.
weeks.
,
Thomas
To
Bosch
&
American
Corp., Springfield, Mass.
outstanding shares). State¬
Chicago, Rock Island &
Cott Beverage Corp
Underwriter—Paine,
Webber,
York.
finance
related
Jackson
equipment
&
second
a
at
the
Curtis,
Manistee,
11:30
a.m.
Brake
Shoe
Co.
>
Cone Mills Corp.___
Chemical
Harshaw
(9/18)
(letter of notification) 100,000 shares of corm(par $1). IPrice—$2.12% per share. Under¬
writers—Graham & Co., Pittsburgh, Pa., and Graham,
Ross & Co., Inc., New York.
cafpital and new equipment.
Investment
Proceeds—For
working
Illinois
ible preference stock, series A (par
in exchange for common stock of
Cprp,, Chicago,
111., the
Domestic
on
,
Natural Gas & Oil
:
Los Angeles, Calif.
cumulative and partici¬
pating preferred stock (no par) of which 54,444 shares
are first being offered to preferred stockholders of rec¬
ord July 6 at rate of one share for each 41/2 shares held
with rights to expire on Sept. 24; unsubscribed shares
to be offered publicly. Price—$45 per share. Underwriter
—-None. Proceeds—To repay bank loans. Statement ef¬
October 9,
Arkansas
Picture Corp.,
Underwriter—None.
Bonds
Bonds
-Bonds & Preferred
October 29,
November 9,
$2 per share.
Proceeds
—
For
1951
(EST)
1951
Telegraph Co.__Debs & Com.
6%
City Title Insurance Co.
incident
Aug. 16 (letter of
motion
$2.50) being offered to stockholders of record
Aug. 20 on basis of one share for each 5V4 shares held;
rights expire on Sept. 14. Price—$5 per share to stock¬
holders and at $6 per share to public.
Underwriter —
to production, advertising and exploitation of
pictures. Address—P. O. Box 364, Mesa, Ariz.
Bigelow-Sanford Carpet Co., Inc.
May 16, filed 100,000 shares of 4%% cumulative
pre¬
ferred stock, series of 1951 (par $100), of which 39,604%
shares are issuable to holders of 26,403 shares of 6%
the basis of 1 % shares for each pre¬
ferred share held. Public offering of the additional 60,000 shares of new preferred stock has been deferred due
preferred stock
to
present
Ripley
&
Moseley
on
market conditions. Underwriters—Harriman
Co., Inc.; Kidder, Peabody & Co., and F. S.
&
Co.
Proceeds—For general corporate pur¬
Blair
Chilson, Newberry & Co., Inc.,
(Neb.)
Clinton
(Mich.)
per
share, but not more than $3 per share). Underwriter
Proceeds—For working capital, including pay¬
—None.
Omaha, Neb. Proceeds—To retire first mortgage (closed)
3%% bonds and to convert to dial operation.
'
Utica,
,
Financial
Credit Corp.,
Sept. 5
pected
stock
(par $100). Price—To be supplied by amendment.
Underwriter—Kidder,
Peabody
&
Co., ' New : York
Proceeds—For additions and improvements to plant and
equipment. Offering date postponed.
ic Central Eureka Mining Co.
Aug. 7 filed 300,000 shares of capital stock being offered
to stockholders of record Aug. 24 on basis of one share
for each two shares held, with an oversubscription priv¬
ilege; rights expire on Sept. 28. Price—At par ($1 per
share.)
Underwriter — None.
Proceeds — For develop¬
repay
on
at
its bid of 101.6319 for 3V4S. Reoffering ex¬
102.4222 and accrued interest. Proceeds—To
bank loans and for construction jyurposes.
Aug. 28.
State¬
ment effective
ic Cone Mills Corp., Greensboro,
N. C.
(9/20)
of common stock (par $10).
Price—To be supplied by amendment.
Underwriters—
Morgan Stanley & Co., New York. Proceeds—To four
selling stockholders.
'
■
Aug. 29 filed 400,000 shares
'
July
10
(letter of notification) 300,000 shares of
preferred stock.
Price — At par ($1
Proceeds—
pay
Food Machinery &
Chemical Corp.
shares of common stock (par $10)
to be offered to employees. Price—To be based on mar¬
ket on New York Stock Exchange (about $34.50 per
June 13 filed 100,000
Underwriter—None. Proceeds—For general cor¬
porate purposes.
Statement effective June 29.
Fosgate Citrus Concentrate
Cooperative
(Fla.)
A common stock (par
June 29 filed 453 shares of class
$100); 5,706 shares of 5% class B preferred stock (par
$100), cumulative beginning three years from July 10,
1950; 8,000 shares of 4% revolving fund class C stock
(par $100); 2,000 shares of 4% revolving fund class C
stock (par $50); and 4,000 shares of 4% revolving fund
class C stock (par $25).
Price—At par. Underwriters
—None. Proceeds—To construct and equip frozen con¬
centrate
Fox
plant at Forest City, Fla.
(Peter)
Brewing Co.,
Chicago,illl.
.
6%
per
G. Fox,
Underwriter—None. Proceeds—For purchase of
soft drink dispensing machines. Office—105% East Pike
Peak Avenue, Colorado Springs, Colo.
share).
Underwriter—None.
obligations, for expansion and working capital.
Office—60 East 42nd Street, New York 17, N. Y.
To
July 24 (letter of notification) 5,000 shares of common
stock (par $1.25). Price—$7.75 per share. UnderwriterThomson & McKinnon, Chicago, 111. Proceeds—To Frank
Consolidated Equipment Corp.
cumulative
New York
July 27 (letter of notification) $250,000 of Financial in¬
vestment bonds.
Price—At par (in units of $50, $250,
share).
* Columbus & Southern Ohio Electric Co.
Aug.
8 filed $12,000,000 of first mortgage bonds, due
1981. Underwriter—White, Weld & Co. awarded issue on
,
Burlington Mills Corp.
March 5 filed 300,000 shares of convertible preference
Acceptance Corp., Chicago,
holder.
N. Y.
Aug. 27 (letter of notification) 5,959.54 shares of com¬
mon stock (par $1), to be issued as a 2% stock dividend
on Sept. 1 to holders of record Aug. 20 and to be pur¬
chased by underwriters at $7.75 per share. Price—$8.25
per share.
Underwriter—Mohawk Valley Investing Co.,
Inc., Utica, N. Y.
'
ment program.
payable and purchase of inventory.
III.
Aug. 10 (letter of notification) 10,000 shares of class A
common stock, first series (par $1).
Price—At market
(estimated at about $4.50 per share).
UnderwriterStraus & Blosser, and probably others. Proceeds — To
David J. Gradman, President, who is the selling stock¬
Colonial
18 (letter of notification) $175,000 of first mort¬
gage 4% bonds, series A, due 1971. Price—101 and ac¬
crued interest.
Underwriter — Wachob-Bender Corp.,
Manufacturing Co.,
Machine Co.
Aug. 16 (letter of notification) 100,000 shares of common
stock (par $1). Price—At the market (estimated at $2.75
^ Fleming Co., Inc., Topeka, Kansas
Aug. 14 (amendment) filed 2,000 shares of 5% cumula¬
tive preferred stock (par $100) and 9,000 shares of com¬
mon stock
(par $25), of which 3,000 shares of common
stock were offered for a period of 10 days to common
stockholders, officers and employees and 2,000 shares of
preferred and 6,000 shares of common publicly to¬
gether with any of the unsubscribed 3,000 common
shares.
The underwriters have an option to purchase
the preferred at $100 per share and the common at $36
per share.
Price—On exercise of rights, $36 per share
for
common,
and to public at $103 per share for
the
preferred
and
$37.50 per share for the com¬
mon
stock.
Underwriters—Beecroft, Cole & Co.. Inc.;
The Columbian Securities Corp.; Seltsam-Hanni & Co.,
Inc. and Estes & Co., Inc., all of Topeka, Kan. Proceeds—
For working capital. Statement effective Aug. 24.
$500 and $1,000 each).
Telephone Co.
July
Brunner
Kingston, N. Y. Proceeds
general corporate purposes.
ment of accounts
poses.
notification) 16,000 shares of common
stock (par
—For
Proceeds—For work¬
Denver, Colo.
Bonds
per
expenses
Underwriter—None.
ing capital and for development work on mineral claims.
& Hart, 350 Equitable Building,
Address—c/o Holland
Mesa, Ariz.
(letter of notification) 27,800 shares of
cumulative preferred stock.
Price — At par ($10
22
share).
it Excafibur Uranium Corp., Denver, Colo.
1951
Utah Power & Light Co. noon
*
Aug. 13 (letter of notification) 99,750 shares of class B
stock being offered to stockholders on a preemptive
basis of one share for each two shaies held; unsubscribed
shares to be offered to a few selected investors. Price—
Power & Light Co._—
Pacific Telephone &
Motion
'
1951
Pennsylvania Electric Co
fective July 6.
stock.
Corp.^_——Common
October 2,
Public Service Co. of Colorado
Farms Co.,
Arizona
Equipment Finance Corp., Charlotte, N. C.
(letter of notification) 2,774 shares of common
Price—At par ($100 per share)
Underwriter—
None.
Proceeds—For operating
capital.
Office—1026
So. Boulevard, Charlotte, N. C.
Aug. 6
Preferred
Corp
September 27, 1951
June 11 filed 55,000 shares of $3
Aug.
Inc.—_-Debs. & Common
of California
Bonds
Finance
Sept. 25.
.
■
stock
September 26, 1951
Midland
Marine
DealerManagers—Kidder, Peabody & Co., New York, and Alex.
Bj*owr} & Sons., Baltimore, Md.
June 4
Southern Counties Gas Co.
(9/7)
$25), to be offered
offer to expire
Drayson-Hanson, Inc., Los Angeles, Calif.
(letter of notification) 50,000 shares of common
(par 40 cents). Price—$1.20 per share. Under¬
writer—Edgerton, Wykoff & Co., Los Angeles, Calif.
Proceeds—To purchase real property and plant.
Common
(Hawaii)
September 25, 1951
,
Exchange Rate—To be supplied by amendment.
Arden
Common
International Refineries,
Co. of
Deardorf Oil Corp., Oklahoma City, Okla.
May 18 (letter of notification) 200,000 shares of common
stock (par 10 cents). Price—70 cents per share. Under¬
writer—None.
Proceeds—To pay obligations.
Office—
219 Fidelity Bldg., Oklahoma City, Okla. Offering—Tem¬
porarily postponed "because of market conditions."
Preferred
Co
Mutual Telephone Co.
A.ug. 16 filed 167,105 shares of $1.25 cumulative convert¬
■
Babson, Wellesley Hills, Mass.; H. J. Witschner, Kan¬
City, Mo.; Business Statistics Organization, Inc.,
Park, Mass.; or their nominees. Proceeds—To
retire debt to RFC and for working capital. Office—2110
Central St., Kansas City, Mo.
sas
September 24, 1951
stock
American
Underwriter—None.
Office—824 Old National
W.
September 20, 1951
general funds.
Aug. 22
.
oversubscription privilege; rights to expire
Drug Co., Kansas City, Mo.
(letter of notification) by amendment $300,000
4%% debenture convertible notes due Oct. 1, 1962 (in
units of $60, $100, $500 and $1,000). Underwriters—Roger
noon
—To
mon
an
Crown
(CDT)_—Equip. Trust Ctfs.
Debs. & Preferred
&.Light Co. 11 a.m. (EDT)—Common
Pacific RR.
&
Utah Power
American Cladmetals Co.
Chicago, ILL
capi¬
Aug. 21
Chicago, Milwaukee, St. Paul
stock purchase plan.
Price—To be not greater than
the market price on the date of the offering, or no less
than 85% of such price.
Underwriter—None. Proceeds
to
Co.,
Oct. 1. Price—30 cents per share.
Proceeds—For working capital.
Bank Bldg., Spokane, Wash.
National Container Corp
a
added
&
Babson
June 29 filed 50,000 shares of common stock (no par) to
be offered to certain officers and key employees through
be
Underwriter—Boettcher
Offering—Postponed indefinitely.
on
September 19, 1951
American
purposes.
Electric Co., Geneva, III.
(letter of notification) $300,000 of 6% sinking
basis, with
Bonds
Common
Common
Pennsylvania Power & Light Co
Roddis Plywood Corp
ma¬
Mich.,
plant.
>
Common
Pacific Ry.—Eq. Trust Ctfs.
(EDT)
corporate
Cornucopia Gold Mines
May 14 (letter of notification) 229,800 shares of common
stock (par five cents) being offered for subscription by
stockholders of record June 30, 1951, on a one-for-five
Preferred
Co., Inc.—
--Preferred
Michigan Associated Telephone Co
Preferred
New England Gas & Electric Association
New
paperboard
Ctfs.
&
Merck
general
Proceeds—To retire indebtedness and for working
tal.
Bonds
—
and
fund debentures due Dec. 1, 1975 (to be issued in units
of $100, $500 and $1,000 each). Price—91% of principal
1951
American Cladmetals Co.-
(9/11)
capital
Continental
March 2
amount.
.--i
:
September 18,
offered to directors, officers and salaried employees of
the company).
Price—To be supplied by amendment.
and
Co,
Development
and
working
Temporarily deferred.
Bonds
_Bonds
(EDT)—
September 12, 1951
Aug. 21 filed $5,000,000 first (closed) mortgage sinking
fund 4%%s bonds due 1961 ($300,000 of which will be
chine
Board
Box
a.m.
Chesapeake & Ohio Ry.
noon
(EDT)
Equip. Trust
International Bank for Reconstruction
July 3.
Proceeds—To
11
Corp
Preferred
Teunessee Gas Transmission Co. noon (EDT)-Bonds
17 filed 98,000 shares of common stock (par $2).
Price—At the market (approximately $15 per share).
Underwriter—None. Proceeds—To Allen & Co. (owner
American Box Board Co.
Gearhart, Kinnard & Otis, Inc., New York. Proceeds—
Sonotone
increase capital and surplus.
of 198,000 shares, or 15.1% of
mop (voting) stock (par $1). Price—$2 per share. Under¬
writers—Sills, Fairman & Harris, Inc., Chicago, and
..Common
For
Alabama Power Co.
Car-Nar-Var Corp., Brazil, Ind.
(letter of notification) 150,000 shares of com-
March 5
Common
September 11, 1951
Offering—Expected
Office—201%
company's electric property.
Brookfield, Mo.
Continental
Illinois—Preference
of
(I. P.) & Son Co
September 10, 1951
May
ment effective
No. Main St.,
Hobby & Brown Electronic Corp
Statement effective Aug. 21.
American
ments of the
1951
September 7,
—
short-term notes and for further extensions and better¬
(EDT)__Eq. Trust Ctfs.
Investment Co.
American
,r'./V.-'V
—
stock. Price
At par ($50 per share).
Underwriter—None, but will be sold through WachobBender Corp., Omaha, Neb. Proceeds—For liquidation of
September 6, 1951
Southern Pacific Co. noon
* All American Casualty Co., Chicago, III.
July 26 filed 1,000,000 shares of common stock (par $1).
Price—$3 per share. Underwriter—May be M. A. Kern,
President." Proceeds
lative preferred
NEW ISSUE CALENDAR
Proceeds—For expansion and modern¬
and
35
Consumers Public Service Co., Brookfield, Mo.
Aug. 22 (letter of notification) 1,500 shares of 5% cumu¬
★ Alaska .Telephone Corp., Juneau, Alaska
July 18 (letter of notification) $300,000 of 6% 20-year
convertible
debentures and 75,000
shares of common
stock (par $1 per share) to be reserved for conversion of
debentures.^ Price—At 100%.
(891)
the selling stockholder.
Office—2626 W. Monroe
St., Chicago, 111.
Continued
on
page
36
36
f
(802)
The Commercial and Financial Chronicle
Continued from page 35
each)
Proceeds
stock,
$10
per
increase
To
—
(par $15) and 73,598 shares of common
(par $1). Latter to be reserved for conversion of
$5 par 6% cumulative convertible first preferred stock
(letter of notification) 86,250 shares of capital
par
($1 per share).
Underwriter—
Floyd A. Allen & Co., Los Angeles, Calif. Proceeds—For
working capital. Office—244 So. Pine St., Newhall. Calif.
stock.
common
Price—To be supplied
Underwriter—F. Eberstadt & Co., Inc.,
Price—At
Lytton's, Henry C. Lytton & Co., Chicago, III.
July 24 (letter of notification) 3,000 shares of common
New York. Proceeds—From sale of preferred stock to¬
stock
(par $1).Price—$6.87 per share.
Underwriter—
gether with other funds, will be used to repay $2,000,-,
Straus & Blosser, Chicago, 111. Proceeds—To Martin S.
000 outstanding 4% notes due March
16, 1954, and to
'Goldring, a director, who is the selling stockholder.
redeem 36,799 shares of outstanding preferred stock at
Office—235 So. State St.. Chicago. 111.
$5.50 per share. Meeting—Stockholders will vote at an
adjourned meeting Sept. 7 on the proposed financing
★ Maplehurst Farms, Inc., Indianapolis, Ina.
Aug. 23 (letter of notification) $200,000 of 5%% first
program^ Offering—Date indefinite.
mortgage sinking fund bonds due 1961 (in denomina¬
Glen Roger Credit, Inc., Washington, D. C.
Aug. 16 (letter of notification) 60,000 shares of 30-cent
dividend class A stock (par $1). Price—$5 per share.
Underwriter
Proceeds—For
N.
John
—
C.
working
Kahn
Co.,
capital.
Washington,
Office—1108
D.
16th
C.
St.,
Golconda
Mines
Ltd., Montreal, Canada
April 9 filed 750,000 shares of common stock.
Price—
At par ($1 per share).
Underwriter—George F. Breen,
New York.
Proceeds—For drilling expenses, repayment
•of advances and working capital. Offering—Date not set.
Grand
Union
Co., New York
Aug. 7 filed 64,000 shares of common stock (par $10)
to be issued pursuant to an "employees' restricted stock
option plan."
Price — To be supplied by amendment.
Underwriter—None.
Hahn
Proceeds—For
general
corporate
Office—50 Church St., New York.
purposes.
'
Hedges Diesel, Inc., Eddington, Pa.
Aug. 27 (letter of notification) 12,500 shares of
stock.
Price—At
None.
($10
par
per
share).
common
Underwriter—
Proceeds—To build Diesel truck engines.
Helio Aircraft Corp., Norwood, Mass.
July 31 (letter of notification) 7,750 shares of noncumulative preferred stock (par $1) and 7,750 shares
of common stock (par $1) to be offered in units of one
share of preferred and one share of common stock.
Price—$25
Underwriter—None.
Hex Foods, Inc., Kansas
City, Mo.
Aug. 1 (letter of notification) 89 shares of 6% cumula¬
tive preferred stock (par $100) end 424 shares'of com¬
mon stock
(no par). Price—For preferred, at par; and
for
common, at $20 per share. Underwriter
Prugh,
& Land, Inc., Kansas
City, Mo., will act as
dealer. Proceeds—For plant improvements and
—
Combest
corporate purposes.
Mo.
'
-■>
Hilton
Hotels
general
Office—412 W. 39th St., Kansas City,
dorf-Astoria
stock
Corp.
on
a
Sept. 26. Dealer
Co., New York.
-
in exchange for their holdings of
share-for-share basis; offer expires on
Manager — Carl M. Loeb, Rhoades &
writer—Willis E. Burnisde & Co., Inc., New York. Pro¬
ceeds—To purchase inventory and for
working capital.
Office—55 Front Street, Rockville
Centre, N. Y.
Imperial Brands, Inc.
Aug. 20 (letter of notification) 50,000 shares of
capital
stock. Price—At par ($1
per share). Underwriter—Floyd
A. Allen & Co.,
Inc., Los Angeles, Calif. Proceeds—To
purchase additional machinery and equipment and for
*
working capital. Office—324 Hindry Avenue,
Inglewood,
Steel Co.
Aug. 27 filed 250,000 shares
to
be
issuable
under the
voted
ferred stock.
Price—At par ($20
writer—Guardian Securities Corp.
eral corporate purposes.
upon
exercise
of
of
capital stock
(no par)
option issuable
option plan to be
stock
company's proposed stock
by stockholders on Sept.
upon
6.
Price—To be
€5% of current fair market value of the stock.
Proceeds
—For working capital.
Merck & Co.,
Inc. (9/18)
filed 244,500 shares of cumulative convertible
2nd preferred stock, no par (each share convertible into
2.9 shares of
Columbus, Ohio
Aug. 1 (letter of notification) 50,400 shares
tftock.
June
& Co. and Lehman Brothers, New York.
Proceeds—For
capital expenditures and working capital.
in
finance,
The
First
Boston
Corp.
part,
Suburban Transportation Co.
(letter of notification) $300,000 of 4%% con¬
vertible debentures of 1967 (each $100 principal amount
convertible into three shares of common stock).
Price
11
—At par.
Underwriter—None.
Proceeds—For working
capital.
Office—69th Street Terminal, Upper Darby,
Pennsylvania.
.V,.v.
,
Pittsburgh
Plate
Glass
Co.
«
June 27 filed 450,000 shares of common stock (par
to be offered to certain employees of the company
its
$10)
and
stock
option plan.
Price—At
the New York Stock Ex¬
change at time options are granted. Underwriter—None.
Proceeds—For working capital.
,
v
subsidiaries
85%
under
a
of the market price on
★ Reading Tube Corp., Long Island City
5 filed $1,859,256 of 20-year 6% sinking fund de¬
bentures due July 1, 1971, and 66,402 shares of class B
stock (par 10 cents) being offered in exchange for 265,608
shares of outstanding class A cumulative and participat¬
ing stock (par $6.25) on the basis of $7 principal amount
June
of debentures and one-fourth of a share of class B stock
for each class A share held; offer
York.
extended to expire on
Dealer-Manager—Aetna Securities Corp., New
effective June
Statement
fective
29.
Plan
declared
ef¬
Aug. 14.
on
★ Roddis Plywood Corp., Marshfield, Wis.
stock), to be offered for subscrip¬
Sept. 10.
Rights will expire on Oct. 3.
Price—To be
supplied by amendment. Underwriters—Goldman, Sachs
'■■■-y--v
(9/18-19)
Aug. 29 filed 281,500 shares of common stock (par $1),
of which 200,000 shares are for account of the company
and
81,500 shares for the account of certain selling
stockholders.
Price—To
be
supplied by amendment.
Underwriters—Blyth
New
York.
& Co.,
Proceeds—For
Inc., and Reynolds & Co.,
general corporate purposes,
including purchase of additional timber reserves, and for
working capital.
/
Microtech Corp., Los Angeles, Calif.
Aug. 23 (letter of notification) 12,500 shares of capital
stock.
Price—At par ($10 per share).
Underwriter—
None, Proceeds—To purchase machinery and other as¬
★ Rohr Aircraft Corp., Chula Vista, Calif.
sets useful in manufacture of miniature ball
bearings and
for working capital for initial operation.
Office—1706
per
S.
Grand
Avenue, Los Angeles, Calif.
of materials to be used in the manufacture of fertilizer.
Mohawk Business Machines
Corp.
Aug. 28 (letter of notification) 2,000 shares of common
stock (par 10 cents). Price—rAt market
(estimated at $1
per share).
Underwriter—Maurice Barnett, JL, Mart*
hasset,
L.
N.
I.,
Y.
Proceeds—To
holders.
two,
selling stock¬
Mutual Products Co.,
Minneapolis, Minn.
Aug. 8 (letter of notification) $200,000 of five-year 8%
registered debentures. Price—At par (in denominations
of $100 and
multiples thereof).
Underwriter — None.
additions
Aug.
10
stock
(letter of notification) 8,000 shares of capital
Price—At market (estimated at $12.50
(par $1).
share). Underwriter—Lester, Ryons & Co., Los An¬
geles, Calif. Proceeds—To Fred H. and Shirley B. Rohr
to
property and for working
Office—509 N. Fourth Street, Minneapolis, Minn.
Mutual Telephone Co.
(Hawaii)
(9/24-25)
July 27 filed 150.000 shares of common stock (par $10)
to be offered for subscription
by common stockholders
on a one-for-five
basis, with a 14-day standby; and to
employees. Price—To be supplied by amendment (ex¬
Rheim, who
are
the selling stock¬
holders.
Roper (Geo. D.) Corp.
Aug. 8 (letter of notification) 4,000 shares of common
stock (par $5). Price —$24.75 per share. Distributor —
Merrill Lynch, Pierce, Fenner & Beane, Chicago, 111,
Proceeds—To Grace Y. Roper, the selling stockholder.
Office—340 Blackhawk Park, Rockford, 111.
• ^7.
Sanders
Associates, Inc., Waltham, Mass.
(letter of notification) 60,000 shares of class A
common stock/ Price—$5 per share. Underwriter—None.
Aug. 2
Proceeds—For
ities such
j
Proceeds—For
,
and J. E. and Esther D.
Midwest Plant Foods, Inc., Napoleon, Ohio
Aug. 20 (letter of notification) 400 shares of common
stock (no par) and 200 shares of 6% non-cumulative
preferred stock (par $500), probably to be offered in
units of one preferred and two common shares at $500
per unit. Underwriter—None. Proceeds
For purchase
at $10 per share).
Underwriter—Kidder, Peabody & Co., New York. Proceeds—To pay outstanding
bills and for construction program.
New England Gas & Electric Ass'n (9/18)
Aug. 6 filed $6,115,000 of 20-year sinking fund collateral
trust bonds, series C, due 1971.
Underwriter—To be
determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.; White,
Weld & Co.
Proceeds—To purchase additional common
stocks of five subsidiaries.
Bids—To be received up to
11:30 a.m. (EDT) on Sept. 18 at 10
Temple St., Cam¬
bridge, Mass.
Norris Oil Co., Bakersfield, Calif.
Aug. 10 (letter of notification) 500 shares of capital stock
(par $1). Price—$4.75 per share.
Underwriter—Walston, Hoffman & Goodwin, Bakersfield, Calif. Proceeds
—To
Arthur
of
common
—
capital equipment.
Office—538 E. Town
Ohio.
St., Columbus,
'
Kingsburg Cotton Oil Co., Kingsburg, Calif.
(letter of notification) 5,000 shares of
common
and
Gregory, two selling stockholders.
Los Angeles
..
to present stockholders (debentures to be
offered are
to be subject to prior issuance to
shareholders in pay¬
ment of a dividend in
aggregate amount of
JPrice—Of debentures, at
$300,000).
par
stock
and
certain
notes
Underwriter—None.
of
McCormack-Medl
-
>an.
24
Par
($1
filed 200,000 shares of
share).
per
stock. Price—At
common
Underwriter—None.
Proceeds—To
purchase machinery and equipment, to construct a mill
in Mexico and for
general corporate purposes.
State¬
ment fully effective Aug.
29,; 1951.
.'Vv.
Peabody Coal Co.
March
26 filed
160,000 shares of 5%% prior preferred
Price—To be supplied by amendment.
Underwriter—A. C. Allyn & Co., Inc. Chicago, 111. Pro¬
ceeds—For construction
program.
itock
(par $25);
Offering—Indefinitely
Drug Co. (Calif.)
July 23 filed $500,000 of 15-year 5% sinking fund debenutres dated Oct. 1, 1951 and due Oct.
1, 1966, and 40,000 shares of capital stock (no
par), to be offered first
.
Secretary, who is the selling
No general public offering is planned.
★ Pan American Milling Co., Las Vegas, Nev.
Aug. 8
Gregory
Scott,
Nu-Enamel Corp., Chicago, III.
Aug. 24 (letter of notification) 102,492 shares of common
stock, to be offered in exchange of 171,650 shares of
istock
(par $1). Price—At market "between
$4.12% and
$4.25 per share." Underwriter—The Broy
Co., San Fran¬
cisco, Calif.
Proceeds—To Leonard A.
W.
stockholder.
Corp.
Price
At par ($5 per
share). Underwriter—
Proceeds—To finance inventories and to
purchase
Willie R.
common
tion by common stockholders of record
Sept. 18 at rate
of one preferred share for each 30 common shares held
after the proposed 3-for-l stock split to be voted
and
construction program
(estimated to total $12,700,000 during remainder of 1951.
Sept. 25.
Aug. 23
common
Keever Starch
Co.,
None.
pre¬
share).
Under¬
Proceeds—For gen¬
per
Co.
&
•
Thursday, September 6, 1951
.
as
purchase and/or rental of operating facil¬
electronic test equipment, machine tools, and
office equipment and for working capital to enable the
taking and completing of prime government and sub-con¬
tracts pertaining to guided missiles, electronics, and re¬
lated fields.
Office—135 Bacon St., Waltham, Mass.
Schenley Industries, Inc., N. Y.
Aug. 17 (letter of notification) 2,935 shares of common
stock (par $1.40).
Price—$33.75 per share. Underwriter
—None, but Wagner, Stott & Co., New York, will act
as broker.
Proceeds—To Lewis S. Rosenstiel, Chairman,
who is the selling stockholder.
Office—350 Fifth Ave.,
New York 1, N. Y.
pected
★ Hobby & Brown Electronic Corp. (9/10)
Aug. 22 (letter of notification) 100,000 shares of com¬
mon stock
(par 10 cents). Price—$1.25 per share. Under¬
Inland
and $1,000 each).
Price—At par. Under¬
Securities Corp., Indianapolis, Ind.
Pro¬
ceeds—To retire short-term bank loans and for
working
capital. Office—3745 Farnsworth St., Indianapolis, Ind.
capital.
Corp., Chicago, III.
March 30 fiied 153,252 shares of common stock
(par $5)
«ow offered to holders of
common stock of Hotel Wal¬
nuch
$500
—
per unit
($20 for preferred and $5 for com¬
Proceeds—For development
and promotion: expenses.
Office—Boston Metropolitan
Airport, Norwood, Mass.
mon).
of
upon
Aviation
Products, Inc.
Aug. 27 (letter of notification) 17,500 shares of common
.stock (par $1). Price—$2 per share.
Underwriter—None,
but company will effect its own distribution. Proceeds—
For engineering, acquisition of machinery and other cor¬
porate purposes. Office—2636 No. Hutchinson Street,
Philadelphia 33, Pa.
.
tions
writer—City
Mercantile Acceptance Corp. of California
May 18 (letter of notification) 4,881 shares of first
W., Washington, D. C.
Proceeds—To
Philadelphia
June 15
shares to be sold to underwriters.
by amendment.
derwriters—Drexel
Loven Chemical of California
preferred stock
redemption, with unconverted
the
share. Underwriter—
working capital and to
finance expanded merchandise inventory.
.stock
to be called for
of
and
None.
★ Fuller (D. B.) & Co., Inc., N. Y.
July 26 filed 120,000 shares of 6% cumulative convertible
..
(in denominations of $100
postponed..;
•
:
.
Pennsylvania Power
&
Aug. 29 filed 542,484 shares
to
be
.
•V•
,
Light Co.
of
offered for subscription
of record
Sept. 18 at rate of
seven shares
held; rights to
employees.
Price—To
to
new
purchase
Columbia
of
for
each
Underwriter
—
None.
Proceeds—For
trust notes secured on District of
estate.
Office — 1115-15th St., N. W.,
second
real
Washington, D. C.
Slick Airways, Inc., Burbank, Calif.
Aug. 14 filed 147,301 shares of common stock to be of¬
fered for sale as follows:
87,906 shares to holders of
presently outstanding Employee Option Warrants and
59,395 shares to holders of Stockholders Option War¬
rants.
Price—At par ($10 per share).
Underwriter—
Probably F. S. Moseley & Co. Proceeds — To purchase
new equipment and for other corporate purposes.
Snoose Mining Co., Hailey, Idaho
July 19 (letter of notification) 1,000,000 shares of com¬
mon stock.
Price—At par (25 cents per share). Under¬
writer—E. W. McRoberts & Co., Twin Falls, Ida. Proceeds
—For development of mine.
^
Snyder Chemical Corp., Bethel, Conn.
(letter of notification) 7,625 shares of common
stock (par one cent).
Price—$4.50 per share. Underwriter-r-Coburn & Middlebrook, Hartford, Conn.
Pro¬
ceeds—To Francis H.
Snyder, President, who is the
Aug. 8
selling stockholder.
;
—
★ Southern Counties Gas Co. of California
(9/25)]
Aug. 24 filed $12,000,000 of first mortgage bonds, 3V2%
series due 1981.
Underwriters—To be determined by
&
bidding.
Probable bidders:
Halsey, Stuart
Co.
Inc.; Blyth & Co., Inc.; Harriman Ripley & Co.,
Inc. and Dean Witter & Co. (jointly); The First Boston
Corp.; Merrill Lynch, Pierce, Fenner & Beane and Harris,
Hall & Co. (Inc.)
(jointly); W. C. Langley & Co. and
subscription by
supplied by amendment. > Un¬
Glore, Forgan & Co. (jointly); White, Weld & Co. Pro¬
ceeds—To reimburse treasury for capital expenditures,
offered
on
for
or
about Oct.
,
★ Sonotone Corp., Elmsford, N. Y. (9/11-12)
Aug. 23 filed 40,000 shares of cumulative convertible
preferred stock (par $20). Price — To be supplied by
amendment. Underwriter—Van Alstyne Noel Corp., New
York.
Proceeds
To reduce bank loans, and for new
machinery and working capital.
competitive
(no par),
stockholders
share
debenture bonds.
3.
be
be
stock
common
one
expire
Unsubscribed shares
(9/18)
common
by
.......;
Security Finance, Inc., Washington, D. C.
Aug. 14 (letter of notification) $100,000 of 5-year 8%
Number 5044
Volume 174
.
.
The Commercial and Financial Chronicle
.
(893)
37
i
for
Western Reserve Life Insurance Co.
construction, and to reduce indebtedness of com¬
new
to its parent, Pacific
to be received on Sept. 25.
pany
(letter of notification) 10,000 shares of common
stock (par $10) to be offered for subscription by present
stockholders at rate of
Southwestern Associated Telephone
Co.
filed
15,
added
general corporate funds.
to
Offering
be
supplied
.
by amendment.
Postponed.
Underwriter—Blair, Rollins & Co., Inc., New York.
Proceeds—To pay off outstanding indebtedness and fpr
^ Spencer Chemical Co., Kansas City, Mo. Offering—Indefinitely post¬
Aug. 3 filed 125,000 shares of 4.50% cumulative convert- , other corporate purposes.
ible second preferred stock (par $50) being offered to ; poned.
/
.;"A
Proceeds—From sale of
stock, together with $5,100,000 from institutional investors, will be used to pay part of cost of construction of
Prospective Offerings
Glore, Forgan & Co., New York.
Statement effective Aug. 27.
chemical works.
new
Suburban Gas Service, Inc., Upland, Calif.
Aug. 22 (letter of notification) 12,000 shares of common
stock (par $1). Price—$4.50 per share.
Underwriters—
Gas
Eastman,
&
Co.
may
-jAr Tennessee Gas Transmission Co.
10
Aug.
bonds
filed
due
$45,000,000
1971.
of
first
Underwriters
—
,
To
be
office
Texas
line
by
expansion program.
Southeastern
...
Tiger Minerals, Inc., San Antonio, Tex.
Aug. 20 (letter of notification) 15,000 shares of common
stock (no par), of which 5,000 will be offered to stock¬
holders through warrants at $10 per share, and 10,000
shares to stockholders under pre-emptive rights at $15
per share; unsubscribed shares to be sold to public at $15
per share. Underwriter—None.
Proceeds—To engage in
the oil and gas business, to develop and explore mineral
leases now owned by company, and to acquire, explore
and develop new mineral leases.
Office — 809 Alamo
National Bldg., San Antonio, Tex.
United Canadian Oil Corp., Washington, D. C.
July 31 filed 1,000,000 shares of common stock (par 10
cents). Price—$1 per share. Underwriter—None. Pro¬
exploration and drilling activities.
United States Gasket Co.
$100,000 to $200,000 of
convertible preferred stock, or a mortgage
loan of that amount.
Underwriter—None.
Proceeds—
To
erect
—602
plants, and purchase equipment.
10th Street, Camden, N. J.
new
North
Office
Utah Power & Light Co.
(9/19)
Aug. 9 filed 175,000 shares of common stock (no par).
Underwriters—To be determined by competitive bid¬
ding. Probable bidders: Blyth & Co. Inc.; W. C. Langley
& Co. and Glore, Forgan & Co. (jointly); Union Secu¬
rities Corp.. and Smith, Barney & Co. (jointly); Lehman
Bros, and Bear, Stearns & Co. (jointly); Kidder, Peabody & Co., and Merrill Lynch, Pierce Fenner & Beane
(jointly). Proceeds—To repay bank loans and to pro¬
vide additional construction funds. Bids—To be opened
at
11
a.m.
(EDT)
on
Sept. 19.
(10/29)
Aug. 9 filed $9,000,000 first mortgage bonds, due Oct. 1,
1981.
Underwriters—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Kidder, Peabody & Co.; Lehman Brothers, and Bear,
Stearns & Co. (jointly); White, Weld & Co.; Salomon
Bros. & Hutzler; First Boston Corp., and Blyth & Co.,
Inc.
ney
for
(jointly); Union Securities Corp., and Smith, Bar¬
Proceeds—To repay bank loans and
construction program.
Bids—To be received up to
& Co. (jointly).
noon
(EST)
on
;
Oct. 29.
V
Mich.
Price
—At par ($1 per share).
Underwriter—Titus Miller &
Co., Detroit, Mich.
Proceeds — For exploration and
drilling of mining claims.
Office—23660 Van Dyke
Avenue, Van Dyke, Mich. Statement effective Aug. 28.
Van
June
7
Lake
filed
Uranium
100,000
Mining Co., Van Dyke,
shares of common stock.
Viking Plywood & Lumber Corp., Seattle, Wash.
July 9
(letter of notification) 37,500 shares of common
minimum units of 125 shares
stock (no par), to be sold in
Price—
$20 per share. Underwriter—None. Proceeds—To per¬
mit acquisition of 50% of capital stock of ' Snellstrom
to
.
;
Ltd.
Aug. 7, it was reported company expects to file in the
near future a registration statement with the SEC cover¬
ing approximately 1,150,000 shares of common stock
(par $2), following merger/ which will be voted upon
Sept. 4, into Atlantic Oil Co., Ltd. (a subsidiary of
Pacific Petroleums, Ltd.), of Princess Petroleums, Ltd.
(an affiliate of Pacific Petroleums) and Allied Oil Pro¬
ducers, Ltd., the consolidated company to change its
name to Canadian Atlantic Oil Co., Ltd.
Underwriter—
Reynolds & Co., New York.
Building, Seattle, Wash.
Office—1411 Fourth Avenue
•
,
mined.
Central
Probable
&
South
Consolidated
and
York,
Inc.
,"///l
refunding
if Consumers Power Co. (Mich.)
Aug. 24, Justin R. Whiting, President,
the
shares of
be
ding,
be
underwritten.
bidders
may
to finance in part the 1952
pansion
portion of the company's ex¬
It will be necessary to issue additional
program.
securities in 1952,
the exact nature and amount of which
have not been determined.
^
Continental Can
Co., Inc.
*
Aug. 7 it was reported that the company may offer a
combination of securities later this year. Probable Un¬
derwriter—-Goldman, Sachs & Co., New York.
★ Cott Beverage Corp., New Haven, Conn. (9/18)
Aug. 22 it was stated that the company plans issuance
and sale of 30,000 shares of preferred stock (par $10),
each share to carry a bonus of common stock. Under¬
writer—Ira Haupt & Co., New York. Proceeds—For ex¬
pansion program.
/ /
Denver & Rio
Grande Western RR.
poned to an undetermined date the taking of bids for
the purchase of $40,000,000 first mortgage bonds to be
dated May 1, 1951, and to mature on
May 1, 1981. Un¬
10.
derwriters-—To
received
up
to
Bids—
to
mature
(EDT)
on
Denver
Sept. 12
by
the
$6,300,000 of equip¬
semi-annually
company,
at Room
744,
Bldg., Chicago 6, 111., up to noon (CDT)
Sept. 19 for the purchase from it of $7,500,000 equip¬
ment trust certificates, series 00, to be dated Oct. 1, 1951,
and
to mature in
30 equal semi-annual instalments.
on
Halsey,
Stuart &
Co. Inc.; Salomon
Bros. & Hutzler.
Salt
Lake
bonds, series A, and $8,666,900 of
mortgage 3 %-4 % bonds,
income
;
July 16 corporation received SEC authority to issue and
sell
$900,000 of debentures to mature July 1, 1957
(placed privately with an institution) but reserved
jurisdiction over the proposed issuance of approximate¬
ly 12,500 additional shares of common stock (latter to be
offered to public pursuant to a negotiated transaction).
To be selected through competitive negotiation.
Probable bidders: Allen & Co.; Union Securities Corp.; Smith
Ramsay & Co.; Hincks Bros, and Paine, Webber, Jack¬
son & Curtis (iointly).
Proceeds—To be applied toward
1951
construction
program.
Offering
—
Expected in
October.
Chicago, Rock Island & Pacific Ry. (9/18)
are expected to be received by the company on
Sept.. )8 for the purchase from it of an issue of about
$5,700,000 equipment trust certificates, series J, to ma¬
ture semi-annually from April 1, 1952 to Oct, 1, 1967,
inclusive. Probable bidders: Halsey, Stuart & Co. Inc.;
Bids
'
Salomon Bros. & Hutzler.
Chicago & Western Indiana RR.
June 2 it was reported company expects to be in the
market late this year or early in 1952 with a new issue
approximately
&
if Derby Gas & Electric Corp.
from
Station
bidders:
determined
Halsey,
both due Jan. 1, 1993.
(9/i9)
received
bidders:
first mortgage 3%-4%
(9/12)
noon
be
by competitive bidding.
Stuart & Co. Inc.; Morgan
Stanley & Co.; Kuhn, Loeb & Co. and Bear, Stearnt
& Co.
(jointly).
Proceeds — Together with treasury
funds, to redeem on June 1, 1951, $35,062,200 oustanding
Probable
Chicago, Milwaukee, St. Paul & Pacific RR.
Probable
stock
common
will
(jointly); The First
certificates
be
that
(no par). It is expected that the
If sold at competitive bid¬
include: Morgan Stanley & Co.;
Lehman Brothers; Harriman
Ripley & Co., Inc. and
The First Boston Corp.
Morgan Stanley & Co., New
York, acted as dealer-manager in a common stock offer¬
ing to stockholders last October. Proceeds are to be used
offer
April 1, 1952 to Oct. 1, 1966, inclusive. Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.
will
announced
and sell to its common
basis an additional 561,517
to offer
l-for-10
a
April 12, Wilson McCarthy, President, stated that due
to prevailing market conditions, the company has post¬
fQr the purchase by the company of
trust
proposes
on
Blyth & Co., Inc.; Smith, Barney &
Ripley & Co., Inc. (jointly); Lehman
Registration—Expected about Sept.
early in October .
will
company
stockholders
To be opened
of
of New
Glore,
Co. Inc.; Morgan Stanley & Co.; The First Boston
Corp.; Merrill Lynch, Pierce, Fenner & Beane and White,
Weld
&
Co. (jointly).
Proceeds — To redeem a like
amount of Westchester Lighting Co. 3%% general mort¬
gage bonds due 1967. Offering—Postponed.
Corp. and Merrill Lynch, Pierce, Fenner &
Beane
(jointly); Kuhn, Loeb & Co.; Carl M. Loeb,
Rhoades & Co.; Ladenburg, Thalmann & Co. and Wertheim & Co. (jointly). Proceeds—To be used to assist
subsidiaries to finance a part of their construction pro¬
Union
Edison Co.
$70,000,000
of
first
mortgage
bonds,
El Paso Natural Gas Co.
Aug. 10, it was announced that stockholders will vote
Sept. 18 on increasing the first preferred stock from
100,000 to 300,000 shares, the second preferred stock
from 200,000 to 300,000 shares and the common stock
from 3,800,000 to 5,000,00 shares; also to authorize an in¬
crease in the aggregate principal amount of bonds issu¬
able under the company's indenture of mortgage, dated
June 1, 1.946. from $157,00,000 to $300,000,000.
Tradi¬
tional Underwriter—White, Weld & Co., New York.
Continued on page 38
'*
1
Hal¬
mortgage bonds, series H, due May 1,
(in addition to $40,000,000 series G bonds filed with
on March 30).
Underwriters—To be determined
by competitive bidding. Probable bidders: Halsey, Stu¬
bidders:
Harriman
Bids
debentures:
1981
Boston
•
or
the SEC
West Corp.
Brothers and Lazard Freres & Co.
ment
Probable bidders for bonds
March 23 company applied to New York P. S. Commis¬
sion for authority to issue and sell $25,000,000 of first
31 it was announced company plans to issue and
500,000 shares of common stock (par $5).
Un¬
derwriters—-To be determined by competitive bidding.
Bids
of about $250,000,000
Stuart & Co. Inc.; The First Boston Corp.;
Forgan & Co.; Morgan Stanley & Co.
"
sell
grams.
that additional capital
sey,
Aug.
Co.;
means
will be required through 1954.
Neither the timing nor
the nature of this new financing have yet been deter¬
if Central Illinois Light Co.
Aug. 10, it was reported company plans to issue and sell
about $7,000,000 of first mortgage bonds. Underwriters
—To be determined by competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.; Lehman Brothers;
Morgan Stanley & Co.; Kuhn, Loeb & Co.; Union Secu¬
rities Corp.; Equitable Securities Corp.; Harriman Rip¬
ley & Co., Inc.; Merrill Lynch, Pierce, Fenner & Beane.
Proceeds—For new construction and to repay bank loans.
Offering—Expected in September.
■>■■?*>
present officers, directors and stockholders.
Lumber Co., Eugene, Ore.
This
art &
* Chesapeake & Ohio Ry.
Utah Power & Light Co.
<
com¬
Canadian Atlantic Oil Co.,
6%
or
To be determined by
Bing & Bing, Inc.
Aug. 30 it was reported company is contemplating sale
of
additional
common
stock
following approval
of
3-for-l stock split, which was scheduled to be voted upon
Sept. 5. Traditional underwriter: Lehman Brothers.
—
4%
—
•
Gas
July 25 (letter of notification)
Underwriter
program.
Co., Bellville, Tex.
May 16 (letter of notification) 19,434 shares of commoi
stock to be offered to common
stockholders through
transferable warrants.
Price
At par ($5 per share)
Underwriter~None. Proceeds—For working capital.
ceeds—For
Proceeds
bidding. Probable bidders for bonds: Halsey,
Inc.; Paine, Webber, Jackson & Curtis and
Stone & Webster Securities Corp. (jointly); Kuhn, Loeb
& Co. and Salomon Bros. & Hutzler (jointly); White,
Weld & Co., Kidder, Peabody & Co. and Shuman, Agnew
& Co. (jointly); Harris, Hall & Co., Inc. and Equitable
'Securities Corp. (jointly). Proceeds — For construction
of
Statement effective Aug. 28.
11.
Inc., Chicago, 111.
plant and equipment.
new
Stuart & Co.
determined
November.
Oil
petitive
Bids—To be received
Cahill, Gordon, Zachry & Reindel, 63
Wall St., New York 5, N. Y., up to noon (EDT) on Sept.
the
at
or
was
gage bonds.
,
pipe
reported that the holdings of the Union
Corp. group of stock of Colorado Interstate
Commonwealth Bdison Co.
Telephone Co., Ltd. (Calif.)
July 3 it was announced that tentative plans call for the
sale later this year of $8,000,000 additional first mort¬
competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Stone & Webster Securities Corp. and White,
,Weld & Co. (jointly). Proceeds—To retire short-term
notes and for
ber
Associated
(9/11)
mortgage
Interstate Gas Co.
was
(531,250 shares) will probably be sold publicly in Octo¬
Corp., New York. Proceeds—To selling
Offering—Expected early in October.
writer—A. G. Becker & Co.
—For
Dillon & Co., New York, and/or
as brokers.
Proceeds—To SBN
•
Securities
and
act
Co., the selling stockholder.
Ashland
Sept. 4 it
Suburban Propane Gas Corp.
Aug. 22 (letter of notification) 5,250, shares of common
stock
(par $1).' Price—$16 per share.
Underwriter—
but
Colorado
& Refining Co.
May 22 Charles Y. Freeman, Chairman, announced that
the company's scheduled construction
stated that the company expects to issue
program for the
'1951-54 period calls for the expenditure of about
sell later this month $7,000,000 of 20-year deben¬
$450,tures due 1971 and 50,000 shares of $5 dividend preferred
000,000, of which it is estimated that $200,000,000 will
be provided out of cash resources at the end of 1950.
stock (par $100). Price—To be determined later. Under¬
•
,
Co., and Wagenseller & Durst, Inc., both of Los
Angeles, Calif. Proceeds — To William R. Sidenfaden,
President of the company, who is the selling stockholder.
Office—60 East Foothill Blvd., Upland, Calif.
Bioren
be
'
Lester &
None,
Underwriter—To
Colorado Fuel & Iron Corp.
Aug. 20 it
Union Securities
stockholders.
par.
York.
if American Export Lines, Inc.
Aug. 20 it was reported that a registration statement may
be filed late in September covering 110,000 shares of
common stock (par 40 cents).
Underwriter — Probably
,
$65,000,000 will be sold ini¬
than
Aug. 15, it was reported that company plans erection of
a
$30,000,000 mill at Pueblo, Colo., which may be fi¬
nanced
partly by private placement and partly by public
offering. Traditional underwriter: Allen & Co., New
■
preferred *;
for each eight common shares held Aug. 27, with, rights
expiring Sept. 11. Price — $50 per share and accrued
dividends.
Underwriters — Morgan Stanley & Co. and
stockholders in ratio of one share of
common
about
by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; Lee
Higginson Corp.; Harris, Hall & Co. (Inc.); Drexel &
Co.; Kuhn, Loeb & Co. and Salomon Bros. & Hutzler
(jointly); Harriman Ripley & Co., Inc.; First Boston
Corp.; Lehman Brothers; Paine, Webber, Jackson &
Curtis; Kidder, Peabody & Co.
Proceeds—To refund
$49,988,000 of 4% non-callable consolidated first mort¬
gage bonds due July 1, 1952, and to redeem
$13,747,000
first and
refunding mortgage 4y4% bonds, series D, due
Sept. 1, 1962.
The remainder will go towards property
improvements, etc.
>
~
•
share for each two shares held.
Price—To
stock.
common
which
Price—Not less
determined
if Wilson Brothers, Chicago, III.
filed $2,200,000 of 5% sinking fund debentures
due Aug. 1, 1966, with non-detachable common share
purchase warrants for the purchase of 154,000 shares of
—
1961, of
tially.
Aug. 3
York, and Rauscher, Pierce & Co., Inc., Dallas,' Texas
Proceeds—To retire $1,500,000 of bank loans and the
balance
one
Price—$20 per share.
Underwriter—None. " Proceeds—
For financing expansion program.
Office—1108 Lavaca
Street, Austin, Tex.
17,500 shares of $5.50 cumulative pre¬
ferred stock (no par). Price—To be supplied by amend¬
ment.
Underwriters—Paine, Webber, Jackson & Curti*
and Stone & Webster Securities Corp., both of New
June
due
June 12
Lighting Co. Bids—Expected
38
(894)
The Commercial and Financial Chronicle
Continued
jrom
page
expansion, but that plans for financing have not yet
completed. Traditional underwriter—F. S. Moseley
37
been
it Goodall-Sanford, Inc.
Aug. 23 it was reported that company was understood
to be planning additional financing.
Traditional under¬
writer: Union Securities Corp., New York.
& Co.
^Natural Gas & Oil Corp.
Aug. 20 it
Hahn Aviation Products, Inc.
Aug. 24 it was announce^ company proposes to offer
12,500 additional common stock (par $1), in addition to
17,500 shares filed by letter of notification with SEC—
see above.
Underwrite^—None. Proceeds—For engineer¬
ing, acquisition of machinery and other corporate pur¬
poses. Office — 2636 No. Hutchinson
St., Philadelphia
33, Pa.
Harshaw Chemical
<
Co.
(9/20)
Underwriter—McDonald
&
Co.,
Cleveland,
O.
Offering—Expected about Sept. 20.
Stockholders
will
be
asked
to
Price—To be
000.
increase
the
authorized
from 20,000 to 40,-
later. Underwriter—Probably
Portland, Me. Proceeds—For work¬
named
H. M. Payson & Co.,
ing capital.
•
about $11.25 per share. Underwriter—Union
Corp., New York. Registration—Scheduled for
Offering—Expected about Sept. 27.
at
Sept. 7.
• New
England Power Co.
Aug. 27 it was reported that company plans to sell 80,000
shares of preferred stock this Fall.
Underwriters—To
be determined
by competitive bidding. Probable bidders:
Brothers; Equitable Securities Corp. and Carl
M. Loeb, Rhoades & Co. (jointly); The First Boston
Corp.;
Merrill Lynch, Pierce, Fenner & Beane.
•
Telephone Co.
was reported that this company may issue and
$1,500,000 of preferred stock this Fall. Under¬
writer—Paine, Webber, Jackson & Curtis. Proceeds—For
May 15 it was stated that this company, a subsidiary of
American Gas & Electric Co., will need
$36,000,000, per¬
haps more, which it expects to raise some months hence
The
Hollingworth & Whitney & Co.
new
securities.
Proceeds—For
expansion program.
authorized
the
it Idaho Power Co.
Aug. 23 the FPC authorized company to issue and sell
$15,000,000 first mortgage bonds due 1981. Underwriter
—To
be
determined
bidders:
Lazard
by competitive bidding.
Stuart & Co. Inc.; Blyth &
Halsey,
Freres
Equitable
Salomon
and
The
Securities
Bros.
&
First
Corp.;
Hutzler
Boston
Kidder,
and
Probable
Co., Inc.,
Corp. (jointly);
Peabody & Co.;
Illinois Bell Telephone Co.
June 27 W. V. Kahler,
President,
announced
that thii
(approximately 99.31% owned by American
Telephone & Telegraph Co.) plans issuance and sale,
the
end
of
the
year,
of 682,454 addi¬
tional shares of capital stock to its stockholders.
writer—None.
for
new
Under¬
Proceeds—To repay short-term loans and
construction.
^ International Bank
for Reconstruction and
Development ("World Bank"') (9/12)
Aug. 28 it was stated that the Bank will sell
$100,000,000
of additional 30-year bonds about
—First National Bank of
(jointly) and others.
Sept. 12.
Underwriters
Chicago, Halsey, Stuart & Co.
Kansas Gas & Electric Co.
May 24 Murray F. Gill, Chairman of
nounced that the company's present
the
board,
construction
gram
calls for expenditures of
1951.
To
more
than
an¬
pro¬
$8,000,000 in
finance part of the expansion
program, com¬
pany may sell $5,000,000 of first
mortgage bonds. Under¬
writers—To be
determined
by
competitive
and
Aug. 1 A. Sidney Knowles, Chairman and President,
nounced that the directors have approved in
principle-a
plan to offer a modest amount (not exceeding $300,000) '
of common stock for
subscription by common stockhold¬
24,700 additional
one-for-eight basis. There are presently out¬
standing 197,600 shares of $1 par value. Probable Under¬
on a
writer—H. M. Byllesby & Co.,
For
Chicago, 111.
Proceeds—
working capital.
•
Pennsylvania Telephone Co.
Aug. 31 it was reported that company may issue and
sell this Fall between $1,000,000 and
$2,000,000 preferred
stock.
Underwriter—Paine, Webber, Jackson & Curtis.
Proceeds—For
new
Lehmann
(J. M.)
(N. J.)
Sept. 1 it was reported that the Office of Alien
Property
expects to call for bids in October on all of the out¬
standing stock of this corporation.
Long Island Lighting Co.
June
25
it
was
reported
that the company's next
step
i in its financing program
may include the sale of ap¬
proximately $15,000,000 of preferred stock. Probable
bidders may include Blyth &
Co., Inc.
Marine Midland Corp.,
Buffalo, N. Y.
Aug. 16 it
was
(9/26)
announced company plans to offer
to its
stockholders the right to subscribe to
223,352 shares of
cumulative convertible preferred stock
(par $50)
on a basis of one share of
preferred for each 25 shares
of common stock held on or
about Sept. 26; rights to
expire Oct. 16. Price—To be
supplied by amendment.
Underwriters—The First Boston
Corp.; Union Securities
Corp. and Granbery, Marache & Co. of New
York; and
Schoellkopf, Hutton & Pomeroy, Inc. of
Buffalo, N. Y.
Proceeds—To permit acquisition of an
additional bank
new
or
the
banks to expand the
capital funds of
constituent banks, and for
general
one
or
more
corporate
of
pur¬
Meeting—Stockholders will vote Sept. 20 on
ap¬
proving the proposed financing.
Registration—Expected
about Sept. 7.
poses.
bond
issue
for
con¬
of
more
than
/
announced
company
$8,000,000 by fall of
Southern California Edison
Co.
Aug. 29 it
was
announced
$49,900,000
nancing to take
care
company
more
of its
have to raise
may
through 'additional fi¬
1951-1952
construction
Probable bidders
gram.
pro¬
for bonds:
Halsey, Stuart & Co.
Inc.; Kuhn, Loeb & Co.; Blyth &
Co., Inc.; The First
Boston Corp. and
Harris, Hall & Co., Inc. (jointly). These
bankers bid for the
$30,000,000 issue of 3 %% first and
refunding mortgage bonds which were sold last week.
The nature, amounts and
timing of the new financing
cannot now be
determined, and will depend in part on
market conditions
existing from time to time and may
include
temporary bank loans. /
with
bidders:
tion
with
FPC
for
facilities to cost
an
an
applica¬
permission to construct additional
estimated $13,641,000, of which ap¬
proximately $9,187,000 is expected
to be
spent in
1951.
Southern Pacific Co.
(9/6) /
by the company
imminent.
Bias will be received
at 165 Broad¬
way, New York, N. Y., up to noon
(EDT) on Sept. 6
for the purchase from it of
$10,920,000 equipment trust
certificates, series GG, to mature in 15 equal annual in¬
•
it Public Service Co. of Colorado
stalments.
Probable bidders:
Salomon Bros. & Hutzler.
& Co.
Inc.; Blyth & Co., Inc.; Kuhn, Loeb & Co.; Glore,
Forgan & Co. and W. C. Langley & Co. (jointly); The
• Southern
Corp.; Lehman Brothers; Kidder, Peabody
Co.; Harris, Hall & Co. (Inc.); Harriman Ripley &
Co., Inc.
Aug. 28 it
Halsey, Stuart & Co. Inc.;
Union Gas Co.
reported company plans registration this
$10,000,000 of new securities. Underwriter—
Blair, Rollins & Co., New York. Proceeds
For new
&
Co.
provision
company
Southern Natural Gas Co.
First Boston
•
The
July 31 it wafc announced company has filed
Proceeds will be
1970
(held by a group of insurance
companies)
$5,000,000 first mortgage 31/8% bonds due 1978.
with
stock.
$18,000,000 of senior securities. Prob¬
Halsey, Stuart & Co. Inc.; Blyth & Co.,
Inc.; White, Weld & Co.; Lehman
Brothers; Merrill
Lynch, Pierce, Fenner & Beane and
Harris, Hall & Co.
(Inc.) (jointly). < Offering—Expected in the Fall.
:
Financing not considered
.
a
market
Aug. 7, it was reported company may issue and sell
$8,000,000 to $10,000,000 of first mortgage bonds. Prob¬
able bidders may include:
Halsey, Stuart & Co. Inc.;
expansion program.
issued
year.
able
be used for expansion program.
for
be
common
.
Pennsylvania Water & Power Co.
July 25, stockholders approved issuance of 78,507 shares
of cumulative preferred stock
(par $100). Proceeds will
used
to
Southern California Gas Co.
r
V
April 4, the company indicated it would
this year be In
the
construction.
Lehman Brothers; White, Weld & Co.
could
approximately
(10/2)
Aug. 23 it was reported company plans issuance and sale
of $15,000,000 first
mortgage bonds late in September
or early in
October. Probable bidders: Halsey, Stuart
and
•
1
This may involve the issuance of
500,000
To refund the
presently outstanding $4,000,000 of 4%-%
first mortgage bonds and
repay outstanding short-term
bank notes which are due
before the end of the
year.
I
Parkersburg Rig & Reel Co.'--^-:
ers.
from
Underwriters—May be determined by com¬
petitive bidding.
Probable bidders:
Halsey, Stuart &
Co. Inc.; Lehman
Brothers; Blyth & Co., Inc. Proceeds—
Stuart & Co. Inc.; Morgan Stanley & Co.; Lehman
Brothers and Union Securities
Corp; (jointly); White,
Weld & Co. Proceeds will be used to
repay bank loans
bidding.
bidders:
Halsey, Stuart & Co. Inc.; Union
Securities Corp.; Merrill
Lynch, Pierce, Fenner & Beane
and Kidder, Peabody & Co.
(jointly). There is a pos¬
sibility that company may also decide to refund its
outstanding $16,000,000 first mortgage 3%% bonds due
Probable
this
633,274 addi¬
and for expansion program.
$1)
for
Jersey Gas Co.
Earl
Smith, President,
24
plans
sey,
shares
company
before
$30,000,000 of 30-year debentures
which
April
(11/9)
plans to issue and
company
(par
/
tional shares of common stock at
par ($100 per share)
to present stockholders at rate of one new share for each
nine shares held. Probable bidders for debentures: Hal¬
Union
Securities Corp.
(jointly); Harriman Ripley & Co., Inc.; Kuhn, Loeb &
Co., Lehman Brothers, A. C. Allyn & Co., Inc., and Wood,
Struthers & Co. (jointly).
Proceeds will be used for
additions and improvements to the
company's properties.
Offering—Expected about Oct. 16.
sometime
sell
announced
■
granting of rights to
stockholders;
conversion of long-term indebt¬
reservation
South
Telephone & Telegraph Co.
was
;-Vi}
presently
outstanding 439,193 shares of capital
stock, of which
45,350 shares are held by the
wholly owned subsidiary,
Ryan School of Aeronautics.
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.;
Boston Corp.; Glore, Forgan &
Co., White,
Union Securities Corp.
(jointly). Pro¬
Pacific
capital stock
shares in order to
vertibility into
ceeds will be used for construction
program.
Co., Inc. Proceeds—To finance acquisition of southern
timberland. Offering—Expected in October.
"-r}y
has
First
Aug. 15 it
(jointly); Leh¬
Brothers and A. C. Allyn & Co.
(jointly); Stone &
Webster Securities Corp.; Carl M.
Loeb, Rhoades & Co.
and Equitable Securities
Corp. (jointly).
man
edness
Weld & Co. and
&
Underwriters—To be determined by
competitive bid¬
ding. Probable bidders: Halsey, Stuart & Co.
Inc.; The
First Boston Corp.; Merrill
Lynch, Pierce,, Fenner . &
Beane; Blyth & Co., Inc.; Kidder, Peabody &
Co.; Union
Securities Corp, and White, Weld & Co.
or
Probable bidders for
Aug. 29 the directors voted to issue and sell publicly
100,000 additional shares of common stock. Underwriters
—Paine, Webber, Jackson & Curtis and Harriman Ripley
D.
place it in a position to
do appropriate
financing of some form of its own securi¬
ties if and when
advantageous to the company. The new
financing may take the form of a general
offering for
sale to the public or
construction.
bonds:
a $10,budgeted
Rockland Light & Power Co.
July 19, Rockwell C. Tenney, President, announced that
the company is
planning the issue and sale this Fall of
approximately $6,000,000 of first mortgage bonds, series
1,000,000
Ohio Power Co.
through the sale of
Proceeds—To finance, in
part,
000,000 construction program the company has
for the next two years.
its
sell about
new
Corp., New York.
Thursday, September 6, 1951
.
Ryan Aeronautical Co., San Diego, Calif.
v
Aug. 4 it was announced company plans to
increase
Ohio Associated
Aug. 31 it
Hathaway (C. F.) Co., Waterville, Me.
Aug. 18, it was stated that the company plans to issue
and sell 12,000 additional shares of 5.8% preferred stock
(par $25), which will carry warrants entitling the hold¬
ers
thereof to purchase IV2 shares of common stock.
number of shares of preferred stock
pected
Securities
Lehman
July 27 it was reported that the company plans to issue
and sell $4,000,000 of cumulative convertible preferred
stock.
(9/27)
announced company is planning issuance
and sale of 900,000 shares of common stock. Price—Ex¬
was
.
..
week
was
of
—
construction.-
Public Service Co. of
Indiana, Inc.
was reported that
company may do some per¬
manent
financing "when market conditions permit."
Earlier this year arrangements were made
with
June 25 it
eight
borrowing up to $40,000,000 on promissory
notes bearing interest at 2lk%. Of this
total, it is planned
to use $13,000,000 in
1951, $14,000,000 in 1952 and $13,000,000 in 1953. Underwriters—May be determined
banks
Aug.
for
by
competitive bidding. Probable bidders for bonds: Hal¬
sey, Stuart & Co. Inc.; Kuhn, Loeb & Co.; Union Securi¬
ties Corp. and Salomon Bros. & Hutzler
(jointly); Blyth
&
Co., Inc.; The First Boston Corp.; Glore, Forgan &
Co.; Merrill Lynch, Pierce, Fenner & Beane; Kidder,
Peabody & Co. and White, Weld & Co. (jointly); Harri¬
man
Ripley & Co. Inc. Probable Bidders for preferred
stock: Blyth &
Co., Inc.; Glore, Forgan & Co.; Harriman
Ripley & Co. Inc. Proceeds—To retire bank loans in¬
curred in
connection with construction
program.
Public Service Co. of North
Carolina,
July 12 it
sell
United Gas
was
several
announced
million
Inc.
plans to issue and
first mortgage bonds in
company
dollars of
•
...
>
Corp.
1, N. C.
McGowan, President, announced that "it
will be necessary to
arrange for an additional $50,000,000
to complete the total
financing, and it is
presently antici¬
pated this will be done by the sale of first
mortgage and
collateral trust bonds
during the latter part of the year."
Underwriters—To be determined
by competitive bidding.
Bidders for an issue of like amount sold on
July 24 were
Halsey, Stuart & Co. Inc.; Morgan
Stanley & Co., White,
Weld & Co. and Equitable
Securities Corp. (jointly);
The First Boston
Corp., Harriman Ripley & Co., Inc., and
Goldman, Sachs & Co. (jointly). Proceeds—For
expan¬
sion program of United
Gas System and for other
corpo¬
rate purposes.
/'■'
Virginia Electric & Power Co.
f
May 1 the company announced that it is
contemplated
that there will be additional
financing to an amount ap¬
proximating $20,000,000, incident to the 1951 construction
.
program, and that further
financing will be required in
1952.
Probable bidders-for bonds:
Halsey, Stuart & Co.
were
Inc.; Salomon Bros. & Hutzler; Stone & Webster Securi¬
ties Corp.; Union Securities
Corp.; White, Weld & Co.
Rochester Gas & Electric
Corp.
Aug. 1 it was announced that company expects to issue
$5,000,000 additional first mortgage bonds and additional
debt securities or preferred or
common
stocks, bank
it West Texas Utilities Co. /v.-.
'Aug. 31 it was announced company plans to sell
$8,000,000 of first
mortgage bonds late this Fall. Underwriters
the
Fall.
In July last
year, $1,200,000 of bonds
placed privately with two institutional investors.
Expected this fall.
„
McKesson & Bobbins, Inc.
May 24 it was announced stockholders will vote Oct.
23
on a proposal to increase
authorized common stock
by
500,000 shares to 2,500,000 shares in order to
provide for
a probable
offering of additional stock to common stock¬
holders. Probable underwriter:
Goldman, Sachs & Co.,
New York. Proceeds will be added
to working capital.
Mengel Co.
Aug. 10, Alvan A. Voit, President, stated that the
pany
com¬
plans to spend from $15,000,000 to
$20,000,000 for
borrowings,
combination thereof, in connection
with its construction
program. The method of obtaining
such additional cash
requirement has not been deter¬
mined. Previous bond
or some
financing
was
done
privately.
July 18, it was reported that the
company expects to
raise money through the sale of
some preferred stock
later this year.
Underwriter—Probably The First Boston
—To
be
determined by competitive
bidding. Probable
Halsey, Stuart & Co. Inc.; Hemphill,
Noyes,
Graham, Parsons & Co. and Drexel & Co. (jointly); The
First Boston Corp.;
Kidder, Peabody & Co.; W. C. Langley & Co.; Union Securities Corp.; Equitable Securities
Corp.; Harriman Ripley & Co.; Lehman Brothers;
Glore,
Forgan & Co.; Merrill Lynch. Pierce, Fenner & Beane.
bidders'
Proceeds—For
new
construction.
Number 5044
Volume 174
.
both issues will be
new
fi¬
LOS
J.
planning
formerly
to
I., The passing of the summer-end
holiday brought a breath of life
the
into
deals
Bankers
000
well
along
the role
to¬
of
The
bid
&
closed.
EATON
dividend
($.25)
a
ance
and
Common Dividend No.
of
Dividends
Exchange Commission,
($1.75)
Today the major issues involved
railway equipment trusts and a
large municipal issue for Jeffer¬
son
County, Alabama Southern
Pacific's
$10,920,000
of
equip•ments was counted upon to bring
the usual lively run of bidding.
of
regarded
dollar
one
share
per
173
as
likewise
market,
-municipal
in
specializing
interests
type of security.
of record at the close of business
The
little business
-tone
to act as an
market
seasoned
Louis.
f.'V-v *
.•
issues
'
.
Fed¬
by
debentures
$68,700,000
and
$50,000,000 to help finance its vast
-
,
1951
1,
progressing at
closed. Checks will be
of
One
mailed.
largest
undertakings
now
involves
National
SAN
Container
Calif.—Es¬
'
18, on the proposal to issue 480,000 shares of new convertible pr.e-
Holt
of
staff
the
to
&
Collins,
;
106
f
by
one
of
"% sale
banking group while the
the
Proceeds
■i
off $6,175,000
new
nance
will
construction
Power
&
now
the
first
Thelma
staff
of
Joins Paul
Light Co.
SAN
rather exten-
portion,
involving
the sale of 175,000 shares of addi¬
tional no par common stock slated
bidding for
is
Renstrom
Rudolph
With
be
with
lively
ready
tention
Near
having
of
five
the
groups
al¬
their
in¬
signfied
entering
close
of
tenders.
October
B.
&
with
will
open
Company,
127
on
to
20,
ANGELES, Calif.—Wallace
Alexander
has
been
added
to
Wagenseller & Durst,
has
de¬
1,
October
1951,
record September
1951.
i
V.
Secretary.
STEVENS,
THE TT T
Wrest Penn
Street, New York 5
of
Directors
Electric
JOHN M. GONZALEZ,
Treasurer
QUARTERLY DIVIDEND
DECLARED
•
Common
Stock
50£
shore
Payable
to
per
on
1
,
.
.
trl
h. d. Mcdowell,
Secretary
September 5, 1951.
INCORPORATE!)
Preferred and Common
Stock Dividends
The Board of Directors
of
Bank
BY
Rusham
ORDER
-1951, declared
New York,
September 5, 1951
The Board of Directors has this
,
day declared
Surrey. '
Egham,
House,
who
■
.
Secretary.
a/
quarterly divi¬
be entitled by
of Article XIII(l) of the Double
between the United
States and the United Kingdom, to a
tax
credit under Section 131
of the
Taxation
Treaty
United States Internal Revenue Code
dend of Three Dollars
share
on
the
($3.)
per
Capital Stock of this
Company for the quarter ending
may
can
September 30, 1951, payable on
October 15,1951, to stockholders
of New York obtain certificates
giving particulars of rates of United
Kingdom Income Tax appropriate to all
the
above
mentioned
dividends.
dividends
on
quarterly
the Com¬
pany's $5.00 par value Common
Stock and 4% Preferred Stock.
The dividend
Stock is
and is
at
on
the
Common
the rate of 604 per share,
payable October 1,1951 to
of
stockholders of record at the close
business
September 19, 1951.
on the 4 % Preferred
The Dividend
of record at the close of business
Stock is
September 14, 1951.
share and is
to
STUART K.
BARNES, Secretary
by application to Guaranty Trust Com¬
pany
Safeway Stores, Incor¬
porated, on August 2:\
15th August, 1951.
D. McCORMICK,
Stores
Safeway
.a
■
A.
on
September 14, 1951.
Savoy
made.
September 29, 1951
stockholders of record
1951.
September 5,
''91
Provincial
Company
(Incorporated)
———
of
dividend
half-yearly
Stockholders
Wagenseller Durst
the staff of
the
Wall
Board
is made.
DATED
Paul
Inc.,
626
South Spring
Street,
bids for $9,members of the Los Angeles Stock
000,000 of 30-year first mortgage
'
bonds, for which four groups are Exchange.
company
Stock
National
payment is
(Special to The Financial Chronicle)
LOS
stockholders of
to
the 5% Preference Stock (less
the
Calif.—
Montgomery Street.
this block of equity securities will
,
dividend
Bearer
usual
on
virtue
From all indications
payable
dividends
COMPANY
dividend to hold¬
ers
of Certificates of Deposit and
old
First
Mortgage
Twenty-year
71/2% Sinking Fund Gold Bonds, en¬
titled to receive, upon the surrender
of
said
securities,
shares of the
Company's
$1 par value Common
Stock, will be made when and if said
securities are so surrendered and the
stock issued in accordance with the
provisions of the Plan of Reorgani¬
zation
confirmed by order of the
United States District Court for the
Southern
District
of New York,
dated July 28, 1937.
Court, Strand, London,
W.C.2., for examination five clear busi¬
ness
days (excluding Saturday) before
Rudolph Co.
FRANCISCO,
Herbert
C.
Stock
Payment of this
dividend must deposit Coupon
Limited,
for Sept. 19..
•
of
Holders
this
with
(Special to The Financial Chronicle)
f
cents
Income Tax) for the year ending 30th
Calif.— September next will also be payable on
P. Furey has joined the the 29th September 1951.
Coupon No. "96 must be deposited
Pacific Coast Securities
Company, 519 California Street.
Directors
per
FRANCISCO,
in
.
.
sive financing plans in the works
with
?
pay
of notes and to fi-
This company has
;
I
to
used
be
progress.
Utah
be
ferred
September 21, 1951.
29th September, 1951.
on
2%%
(Special to The Financial Chronicle)
SAN
.
another.
carried through by
J
will
stock
senior
interim
second
The
With Pacific Coast Sees.
Of $20,000,000 of
jecting the sale
| debentures which will be handled
of
regular quarterly dividend
share on the 1% Pre¬
Stock, also a dividend of 15
per
share on the Common
of
this
Corporation.
Both
$1.75
has this
day
declared
a
dividend of One
Dollar and Twenty-five Cents ($1.25)
per share on the Company's $1 par
value Common Stock, payable Sep¬
tember 28, 1951, to stockholders of
record at the close of business on
WARRANTS TO BEARER.
fore payment
Meanwhile the company is pro'
Vke Pres. & Treasurer
DIVIDEND
obtain
No.
211 with the Guaranty Trust Company
Russ Building, members-* o£~4he
of New York,, 32, Lombard Street, Lon¬
San Francisco and Los Angeles
don, E.C.3., for examination five clear
Stock Exchanges.
business days (excluding Saturday) be¬
Corp.'s plans for the sale of deben¬
tures and preferred stock. Share¬
holders are slated to vote, Sept.
ferred. J
FRANCISCO,
ther R. Offenbach has been added
CHARLES C. M0SK0WITZ
y
'.
MANATI SUGAR
Vice-Pres. & Secy.
the
Ordinary Stock for the year ending 30th
September 1951 of one shilling for each
£ 1 of Ordinary Stock, free of United
Kingdom Income Tax will be payable
(Special to The Financial Chronicle)
industrial
shaping up
the
.
Board
clared the
oi
J.
Wm/J. Williams,
A
Holt & Collins Add
National Container Corp.
The
)
business
a
that necessary financial $788,455,000.
preparations be kept moving.
CORPORATION
MGM RECORDS
•
September 14, 1951.
Transfer books will not be
The
quires
;
r
placed at par.
evidently work is 4, 1951, the total amount of de¬
rate which re¬ bentures outstanding amounted to
WAGNER BAKING
of
stockholders
to
THEATRES
-
■v,;
together with $1,BRITISH-AMERICAN
tionally by the growth of defense 780,000 cash from Treasury, were
TOBACCO COMPANY LIMITED
used to retire $100,485,000 of de¬
industry in its territory.
bentures maturing Sept. 4, 1951.
NOTICE OF DIVIDENDS TO HOLDERS
The company borrowed $50,As of the close of business Sept. OF ORDINARY AND PREFERENCE STOCK
000,000 in the market only a few
months ago, but
.
Treas.
&
1951.
5,
t
The proceeds,
expansion program spurred addi¬
.
were
:
.
on
consolidated
2.25%
,
.
Sep¬
September 29, 1951, to stockholders of record
at the close ef business on September 14, 1951.
Checks will be mailed..,
s, ..r^
Stock
record at the close of
1952 and
2,
Jan.
due
on
quarterly dividend of 37 He per
on the outstanding Common
Stock of the Company, payable on
quarterly dividend of $0.20
per share on the Common Stock
was declared, payable October
consisted of
consolidated
2.00%
$30,005,000
August 30,1951
share
A
M. G.
16
$98,705,000
totaling
'
,
of the
Common
Bank
Aug.
SANDERS,
LEVENE,
a
of business
indicates debentures due June 2, 1952. Both
issues were dated Sept. 4, • 1951
discussion
Current
,
on
F.
Treasurer
Y.
record
September 5, 1951
The Board of Directors has declared
that the firm may seek as much as
•
S.
Secy.
1
PICTURES
of
stockholders
to
MGM
September 14,% 1951.
on
for
-contemplates entering the market
.in the
near
future for another
sizable bond issue.
1951
two
Newcomb, New York fiscal agent
'the
bank.
The
financing,
Reports are current that United
Gas Corp., large-scale transporter
and
distributor
of natural gas,
,
made
was
at
H.
LOEWS INCORPORATED
per
record at the close
Credits
Intermediate
eral
United Gas Corp.
debentures
of
of
offering
successful
A
£i'-.KC-- "
*'
,
FIG Banks Place Debs,
'
£
;
,
$ 1.0625
1,
corporations
erations.
"...
*;
quarterly dividend of
share on the $4.25
Cumulative Preferred Stock
was declared, payable October
A regular
in-
which,
.for one reason or another, have
•delayed prospective financing op¬
to
•ducement
"
*
close of
the
September 11, 1951.
New York 6, N.
Preferred Stock
director of
Brewing Co. of St.
Falstaff
the
record
of
DIVIDEND NOTICE
Co., has been elected a
were
payable October 1, 1951, to stock-
1951.
17,
■
of
business
of
close
the
•
change firm of J. R. Williston &
counting on the firm
ruling
generally
in
the
they
dividend of 30^
Common Stock,
the
on
part¬
a
Stock Ex¬
New York
the
ner an.
;
their hands, but
on
stockholders
to
September
had
share
business
on the
Capital
payable October
per
share
outstanding,
1951,
••
Arrowsmith,
Directors has this
a
holders
5
Dollars
dividend of Two
a
($2.00)
F* D. Arrowsmith
Donald
of
Board
Board of Directors has this day
tember
F.
per
York
New
Street,
Wall
declared
Secretary
1,
at
iSM:..W
Inc.
—7
*
DIVIDEND
SUGAR COMPANY
10G
CARL A. SUNDBERG
September 5. 1951
that
/
September
on
14, 1951. Transfer books will not be closed.
was
UTILITIES,
/
L?
\o
FRANCISCO
THE
J.
:
.
underwriters
Meanwhile
a
The
declared, payable October 1, 1951;-to holders
'
-
declared
have
Trustees
a
day declared
per
-expected to attract brisk bidding
'by
pi
/
1
SOUTH
1
I
FUND
icents
five
seventy
(25<)
the
of
MIDDLE
*"
the Preferred Stock and
on
five cents
twenty
County
the fore¬
reawakening
a
/
106
Stock
of
14,
payable September
25, 1951, to shareholders of
record at the close of business
September 14. 1951.
24 Federal Street, Boston
The $10,000,000 Jefferson
runner
Sep¬
share,
a
share on the
Common Stock of this Company have been
j
offering,
a
1951.
Boston
September
STOCK
New York 8. N. Y.
Preferred Dividend No.
on
cents
& HOWARD
MTON
#
J
30 Church Street
clear¬
Securities
given by the
share
per
■
The
Arrowsmith Director
pay¬
(25^)
all shares of common
stock outstanding as of the close of busi¬
ness September 7, 1951, such dividend to be
payable September 14, 1951, to the holders
of record of shares of
said stock at the
close of business on September 7, 1951.
Cents
1951,
24 Federal Street,
through this operation. V
customary
provided
was
twenty-five
a
By order of the Board of Directors.
JOHN J. O'BRIEN, Secretary
have declared
share, payable
25,
business
offering to the public in prospect
today
of
to
share¬
holders of record at the close of
Treasurer
August 28, 1951
of
a
tember
MICHAELI,
H.
HOWAItO
&
The Trustees
a
J.
Treasurer.
BONNYMAN,
25, 1951, authorized the
dividend of Twenty-five
August
ment
of this Company
Board of Directors
The
on
BALANCED FUND
The
clared
L.
& ST. louis
company
railway
1
P.
NOTICE
DIVIDEND
THE minneapolis
dividend of fifteen cents ($.15)
with
yesterday
be
AMERICAN LOCOMOTIVE COMPANY
mortgage
first
for
anticipating
is
company
ments
not
Board of Directors has de¬
dividend of 25tf per share on the
outstanding Capital Stock of the Company
of the par value of $12.50 per share, pay¬
able October 1, 1951, to holders of record
at the close of business September 10,1951.
\
taking
of dealer-manager of the
group
$12,000,-
Edison's
30-year
to
successful
107
declared a dividend
of 50 cents per share on the Common Stock
of
the Company to stockholders of
record at
the close of business September
14. 1951, pay¬
able September 29,
1951.
Transfer books will
91 rt
217
vn
NO.
NO.
DIVIDEND
has
company
COMPANY, INC.
mvinrNn
DIVIDEND
part of its 1952 financing require¬
Columbus
the
had
Ohio
the
AND LIGHTING
Mountain & Pacific Co.
Mexico, September 1, 1951.
STOCK
above
39
DIVIDEND NOTICES
Rocky
New
COMMON
THE SAFETY CAR HEATING
^
offering expected to reach market
next month.
f
number
a
offering stage.
Southern
bonds
with
already
the
ward
with
that
indicated
was
future
near
of
this
market
should be picking up in
the pace
the
it
but
week,
issue
new
is
expectation
Raton,
The
DIVIDEND NOTICES
PI
that the
company will ask for underwrit¬
ing bids on a "standby" basis
The
'
Louis,
Co.
one-for-ten basis.
•
has become connected
Witter & Co., 632 South
Street. Miss Huning was
with Barbour, Smith &
Spring
finance
on
a
"rights" basis through the sale of
561,517 shares of new common
to its present shareholders on a
is
St.
Calif.—Mary
ANGELES,
Huning
with Dean
(Mich.)
Co.
Power
Consumers
(Special to The Financial Chronicle)
Up for Bids
Deal
"Standby"
DIVIDEND NOTICES
Dean Witter Adds
applied to're¬
bank loans and
construction.
of
payment
nancing
from
Proceeds
bids.
preparing
t)
(895)
The Commercial and Financial Chronicle
.
.
Guaranty Trust Company
of New Y ork
at
the rate of $1.00 per
payable October 1,1951
stockholders of record at the
close of business
September 19,1951.
MILTON L. SELBY, Secretary-
August 29, 1951.
40
The Commercial and Financial Chronicle
(896)
..
Thursday, September 6, 1951
.
else, and will continue to support
him .for the third or
any future
terms, if with less verve than the
CIO, which is usual.
BUSINESS BUZZ
on...
(This column is intended
flect the "behind the
Behind-the-Scene Interpretation*
from the Nation's
pretation from the nation's Capital
and may or may not coincide with
the "Chronicle's" own
Capital
views.)
WPGvCO.
Office Of THC
Mr.
Staats
also
revealed that
D. C.—Among
Congress who during the fiscal years 1950-52,
tiave better than a speaking ac¬ inclusive, Congress is being asked
quaintance
with
fiscal
affairs to appropriate or authorize $225
there is a gloom bordering on de¬ billion for ALL expenses of the
featism over the long-term out¬ Federal Government. Actual pay¬
look for the government's finances. ments during these three years,
What
makes
them
gloomy is however, said Mr. Staats, will ag¬
that the "worst" as it was out¬ gregate a mere $150 billion. This
will leave a carryover, for actual
lined officially by the Adminis¬
in
fiscal
1953 and
tration several weeks ago already expenditure
later years, of $75 billion.
tias become even worse. This de¬
WASHINGTON,
those
PR£S(0€f\)T
of
members
Business
Man's
Bookshelf
Life Insurance; Its Acquirement
"Contracts will have been en¬
Congress,
is the explanation of tered into and goods ordered for
why the Finance Committee of the virtually all of this amount, but
.Senate laid down and played dead actual delivery and payment will
featism has affected the
and
in part
«nd
let
and
House
the
with
committee
the
over
run
the
of
most
lat-
ter's provisions on the corporation
the
of
eve
of the
(In
the
fiscal
new
until
made
1953
be¬
or
year
Man'svast
Budget.
light
credits
of
these
years.
advance
After much hedging and
alibi-ing, Mr. Staats fi¬
worth
as
For the current fiscal year total
#mlitary expenditures for the U. S.
and its allies
were
predicted at $42
*t
In
hoot
a
101
it
summary,
Manual
latest
current
ture
tion—and
Security
America
Add
other
re¬
for Atomic
•Energy, items not included in the
as
$55-$65 billion, and then add what
tWUr. Staats breezily sets at $20 bil¬
lion arid anybody
else would put
*nuch higher—the costs of
veterans,
aid
for
aid for
farmers,
etc.,
and all other expenses of govern-
#nent, and
with
out
come
you
a
•Federal budget in fiscal '53—next
year—of $85 billion.
"So
talking about $85
"trillion in fiscal 1953, is that right,
roughly?" asked Senator Eugene
JVlilliken (D. Colo.) at the time.
"That is right, roughly $85 bil¬
lion. Thus it may be assumed that
budget expenses for 1953 will total
between $80 and $90 billion," Mr.
Staats replied.
However, the Assistant Director
of the
Budget offered eventual
Jhope for the undeserving taxpay¬
■
are
He said that the defense build-
er.
-tip
you
a peak in late fiscal
early fiscal '54. Thereafter
will reach
*53
or
Ihere will be
gradual reduction
a
estimate
of
"My joke wasn't THAT funny, Peterson—How
much
you getting ready to put the bite on
me for?"
expendi¬
billion is
$68.4
(3) The chance of
from
this
1955
or
or
even
billion.
are
one
taxation
The
to
increase
has
en
up this pose.
In theory, for
political purposes, the Adminis¬
tration will insist that there is
limit to taxation, still insist
will
the
relatively
of
bright
farm
spot,
the
cooperatives.
If the committee had attempted
to
in
fact made balancing of the budget
impossible and so in fact has giv¬
no
it
legislate
to balance the
means
as
budget, and House, which is opposed to taxa¬
usual blame Congress for tion of co-ops.
failing to balance the budget and,
The
committee
thus
as
this also is
inflation
So
instead
frained
influence,
an
1951
North
revised
Edition
of
—
direc¬
D.
corporation income taxation
if it pays out to
members, its
ings.
earn¬
the
committee
of
Freedom, The—Some
About
the Foundation for
Economic Education—The Founda¬
tion for Economic
Education,
Inc.,
Irvington-on-H
u
d
s o
Although
paper
a
*
re¬
Y.—
of
chance."
one
N.
n,
.
treatment
IF
Study
Facts
*
Two With
Freehling Co.
(Special to The Financial Chronicle)
CHICAGO,
Schmitt
have
and
assumed that the United
from
G.
Warsaw
Freehling, Myerhoff
Co., 120 South La Salle Street,
&
members
*
111.—Russell
Stanley M.
joined
of
Midwest
Stock
Schmitt
was
the
Bache & Co.
New
York
and
Exchanges. Mr.
previously
with
•
of
the
and
of
Completely
tory of stock and bond houses in
States and Canada—Her¬
continued
Labor Policy Committee would be¬
taxing the earnings come a
vehicle which both would
rising cost
co-ops UNLESS they fail to
make it possible for
Big Labor to
of living.
distribute the patronage dividends
put up a united front and later
(5) Indefinite, heavy deficit fi¬ to their members, which is the would
lead to organic unity in
nancing is in prospect. One high¬ main argument used by co-ops to the
labor
movement,
then
the
ly informed Senator offered pri¬ escape taxation; or UNLESS, if
break-up of the United Labor Pol¬
vately to bet this correspondent the co-ops don't distribute pat¬
icy Committee is significant,
odds that the deficit for fiscal '53 ronage dividends but some secu¬
insofar
for
Wall
Seibert & Co., Inc., 25
Place, New York 7, N. Y.—
fabrikoid—$10.00.
long way from equal
co-ops and private
anything like equal
business it comes close to
being
taxation of the earnings of the big
"saleable."
Straight corporation
farm co-ops with the earnings of
taxation of co-ops had two strikes
private corporations, the project
against it. The Senate provisions,
would have failed.
It would not
in the opinion of members of the
have survived the Senate floor,
committee, "now have a fighting
much less the conference with the
military build-up.
Administration
as
In all the tax picture there was
prospective
4)
120
United
bert
raise, the $7.2 to exempt local
co-ops, and con¬
tinued to exempt the
co-op itself
from
or
at any known date, in view of the
decision
much
as
be
cannot
pegged for fiscal 1954
nues
House pretended to
tapering
ever
fantasia
the goal of the
Companies,
Co.,
Park
(2) The maximum of "$80 to $90
billion" is probably too low.
off
&
Dealers
—
Mid-Year
probably obsolete.
rising.
lated defense, such
Sugar
3,
—$2.00
G>&»
Pim
y?.
conserva¬
year
of
York
Street, New York 5, N. Y.—cloth
(1) In the light of known facts
trillion; for fiscal 1953, $55-$65 bil-
r
the
Fifth Avenue, New
Y.—board—$1.50
1950-51—Farr
[
❖
as
N.
tives at the Capitol sees the situa¬
tion:
the
A Definition
Democracy—A. Powell Davies
—Farrar, Straus and Young, Inc.,
figures
the
nally outlined the picture.
Future:
of
the
nobody
Horace
$2.50.
Finance Committee in¬ the fact that Mr. Truman at the
sisted upon pininng down Mr. Ei¬ moment hasn't asked specifically
sner
Staats, Assistant Director of for some $13 billion of the $94 bil¬
the Budget, about the budgetary lion of appropriations he said in
outlook for the next two or three January he would ask for.)
^
Treatment—William
Sinclair, 210 West Seventh Street,
Los
Angeles 14, Calif.—paper—
yond," said the Assistant Director
Income tax increases.
On
be
not
to re¬
scene" inter¬
With Slayton & Co.
(Special to The Financial Chronicle)
NEW
ORLEANS, La.—John T.
Milford
pany,
Few labor
specialists in this
the rate of national security will amount to $20 billion, even rity, it is in the form of a loan re¬
expenditures for fiscal '54 and money that it will be $25 billion, payable with interest in two years. town, however, believed that a
In other words, what the com¬ united front on policy could have
later years. This drop back in the and "slight odds in my favor that
more than a short and
superficial
srate is "scheduled," he said, to it will be $30 billion." And it was mittee proposes would achieve an
is with Slayton & Com¬
Inc., 126 Carondelet Street.
in
;
not the Senator who has been most
This commitment
was
made by
|he Administration spokesman
June 29. It
was
on
made before Harry
Truman, and his advisers
came
to
amelioration
often quoted in print with such
*>egin in fiscal '54.
greatest irritations of tax
an
In the. light of these factors
and
impinged
emotions
the
upon
of
the
as
minds
members of
could the Senate Finance Commitee, it
«tand for as much as was being is possible to understand why they
their
reputed
«pent to make him play the role abandoned
prin¬
of a human Highty Mouse, and ciples and boosted the corporate
«ealize
'
that
without
controls.
enitment
House,
the
made
country
It
having
a
was
before
the
learned
com-
White
rate
to
52%, subjected additional
earnings
to
EPT,' although
the down to 75%
how
as
in the
not
of the
case
country
could
survive
without House bill.
Always conservative and vio¬
controls, decided to go ahead and t
opposed
to
boost the overall target by a de¬ lently
confiscatory
cision to be announced in October taxation, the committee neverthe¬
or
less
sooner.
is
at
the
top
of
responsible
•
*
*
There is also
*
some
the outlook for the
committees
gloom
as
to
current fiscal
almost
the
the
of
cause
the
the
exemp¬
They
prospect
tion for farm co-ops, their capac-
alarming viewpoint.
they
of
existence.
;
unity. They
ity to
and
plowing back tax-free
into the business. They do
this by often paying stock as
pat¬
ronage dividends.
go on
money
After
would
ops
cash
At
tee
two
or
years,
have
in effect,
co¬
out
the
to
pay
be taxed.
the
same
exempted
time
the
from
commit¬
these
stric¬
within
were
making for
a
to
put
the
RIVERSIDE CEMENT CO.
labor
some
for
time
CLASS B (common) STOCK
break
up, and the
fact that it occurred in August in¬
stead of perhaps September or Oc¬
A
to special tax treatment.
a 3
t-g
producer
r o w
i
n g
of
cement
Southern
f
Analysis of this Company and
Harry Truman, on the other
hand, lost a convenient propagan¬
a
review of the Cement Indus¬
try
available
on
request.
da vehicle and
Selling about
port.
The
AFL
will
go
$14.00
LERNER & CO.
Investment
Finally, it tightened up sub¬
Nevertheless,
Harry
Truman
stantially the rules entitling co¬ probably has lost no
political sup¬
ops
f
California.
-
.
controls legislation.
co-ops.
leading
in
tober is about all that matters.
Congress.
Thus,
desperately and wearily,
decided
WE SUGGEST
labor
mouthpiece for his
tures, co-ops with $100,000 or less policy, the ULPC having been his
of assets, the
personal
genuinely local farm
Charley McCarthy on
of
committee
utterly
organic
that the rivalries
say
tensions
movement
discount
for
For
targe Appreciation Potential
Securities
10 Post Office Square, Boston 9, Mass.
Tel. HUbbard 2-1990
nowhere
in
The Treasury spent during one last lick, no matter how un¬
July of this year for U. S. and sound or repugnant to the com¬
foreign military aid, well in ex¬ mittee's principles, toward one
cess
of $3 billion, a rate which more effort to keep Federal fi¬
bas
been
rising steadily since nances from getting out of con¬
January. Three billions monthly trol.
year.
means
lion
—
month
though
not
at
an
annual rate of $36 bil¬
the
very
first
achieved
of
the
the
this
fiscal
year.
Administration
time
revise
Even
will
upward
Second,
the
committee
that in moderating the
confiscatory
defense
aspects
surtax
of
on
the
11%
upper
$42 billion forecast for U. S. to be pilloried by the Little Man
and foreign military expenses, it and all his journalistic
followers.
Is a good bet that the actual out¬ They also know
they are to be
lay will run well ahead of $42 bil¬ blamed for having failed to
Beneficial Corporation
SECURITIES
Kingwood Oil
Texas
P.ARL MARKS & P.O. INC,
Engineering &Mfg.
FOREIGN SECURITIES SPECIALISTS
brackets, the committee is certain
the
lion.
FOREIGN
knows
altogether
the
Allied Electric Products
FIRM TRADING MARKETS
achieve either $10 billion of
reve-
50 BROAD STREET...NEW YORK
4, N. Y.
Hill,Thompsons Co.,Inc.
TEL. HANOVER 2-0050...TELETYPE: NY 1-971
Trading
'S
Department
70 WALL STREET, N. Y. S
;
•
■
-
"
Tel. WHitehall 4-4540
'
i
@FedFRASER