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UNIVERSITY
°f
ESTABLISHED
Michigan
Reg. U. S. Pat. Office
Volume
172
Number 4940
New
Price
York, N. Y., Thursday, September 7, 1950
30
Cents
a
Copy
EDITORIAL
Price Behavior of Stock
Our Defense of
As We See It
The Home Front
"In view of the threats of
dent said:
which
face
now
these
us,
[our armed]
maintain
come.
larger
aggression
forces and
forces
for
we
a
Commenting
shall have to
long
time
cal effects, prominent
steel executive urges public insistance
that American individual freedom, self-govern¬
ment and private enterprise system shall be preserved.
Scores expansion of Federal power, together with "incomptent, unrealistic leadership" that has led to Korean
crisis. Says steel industry is proof no controls are re¬
quired in present situation, as there is ample steel for
both military and civilian needs. Denounces excessive
government expenditures and attacks National Labor
Board's policy in Weirton Steel case.
to
...
"In addition to
increasing the size of our armed
forces, we must step up sharply the production
of guns, tanks, planes and other military equip¬
We shall also have to increase
ment.
our
stock¬
pile of essential materials, and to expand
industrial
capacity to produce military
plies.
our
sup¬
...
movement
.
"In order to increase
The
right of Americans to
period, the investor-speculator
role of
defense effort
So far
But about that willingness to
longer, and to impose upon our¬
selves such restrictions as are necessary to pre¬
vent inflation and runaway prices.
We wonder.
And here is one of the things which makes us
good.
so
Americans
work harder and
that
place
not
the
mean
ican
T.
Ernest
of
Amer¬
the
and
self-government,
American
Weir
now
loss
competitive eco¬
of los¬
private,
single
a
City
Single Page!
a
in the edition of a New
(the New York "Times")
page
newspaper
Continued
on
are
afforded
as
of
Russia.
war
with
"An address by
great—if not
Mr. Weir at the
Virginia
Chamber
Sept. 1,
1950.
of
Commerce,
NOW
a
so
obvious—as the danger
Sulphur
IN
REGISTRATION—Underwriters and
complete picture of issues
takings in
our
now
Va.,
Springs, W.
on
understanding how security .markets
such
While
work.
an
examination
throw some light on how mar¬
kets behave, it cannot offer positive
evidence on why they behave as they
do. When we have reliable ev'donee
may
as
how the
to
behave
various
several
stock groups
cycles.
*
The
wouxd
why
of
movements
group
to be associated with
seem
as
such fac¬
the following:
(1) The nature of the product. The
largely a producers'
fact that steel is
good is probably
responsible for the
prince-or-pauper nature of the steel
industry. The fact that tobacco products are consumer goods is probably
K
Burrell
responsible for the relative stability of this industry.
(2) Variation in capital structures among industrial
groups perhaps explains some differences in price be¬
While
there
are,
of course, differences
in the
various groupContinued on page 28
capital structures of companies within the
securities
potential under¬
page 34.
dealers in corporate
State and
Funds,
Smithfield, E. C. 1
49 Charing Cross,
S. W. 1
Burlington Gardens, W. 1
64 New Bond Street,
Custodian
Franklin
OFFICES:
Bishopsgate, E. C. 2
West
Municipal
throughout Scotland
LONDON
3
0
OFFICE—Edinburgh
Branches
8
cy\
.
conjecture as to the why.
then
tors
over
Incorporated by Royal Charter 1727
HEAD
it does perhaps
registered with the SEC and
Registration" Section, starting on
"Securities in
making profits in the stock market but
make
some
slight contribution to
24
page
took
in line with "free market" operations.
examine in detail price behavior of
several price cycles. Such
examination does not result in any "sure fire'' method of
havior.
15th Annual Meeting of the West
White
Continued
26
page
SECURITIES
Royal Bank of Scotland
ing these is
more
It is interesting to
nomic system. And the danger
From
From
determine
should
will
Holds with
ended and free markets restored, a
economy
the various stock groups over
extent never before
American individual freedom,
uncertain:
York
it
control
unable to perform
reshuffling of relative prices of various stock groups
has
lives
own
was
bringing prices in line wi!h values.
planned
The plans of individuals, families, business
communities, and states are subject to drastic
change—almost without notice. Now
we enter a period that is entirely new
in American experience — one in
which the nation proposes to live in¬
definitely on a military, or at least
semi-military basis.
What this may mean eventually, no
one
can
predict.' We know that for
many it will mean giving up civilian
lives to go into military service. For
the rest, it may mean serious disrup¬
tion of private lives and sacrifices of
many kinds.
Whatever the outcome,
concerns,
rapidly
enough to meet the danger that we face, we shall
have to make many changes in our way of living
and working here at home. We shall have to give
up many things we enjoy. We shall all have to
work harder and longer. To prevent inflation and
runaway prices, we shall have to impose certain
restrictions upon ourselves."
our
an
and down swings
period, 1946 50, maintains during wartime
war
dreamed of.
.
.
their
live
been taken out of their hands to
of the degree of correlation of
of stock groups with the up;
market, having particular reference to the post-;
of the
"We must
now divert a
large share of this [our]
productive power to defense purposes. To do this
will require hard work and sacrifice by all of us.
I know all of us are prepared to do whatever is
necessary in the cause of peace and freedom.
Administration, Univ. of Oregon
Professor Burrell's study
present crisis and its economic and politi¬
on
j
By O. K. BURRFLL
Professor Business
Chairman, National Steel Corporation
shall have to increase
we
Groups Since 1929
By ERNEST T. WEIR*
In his radio address late last week the Presi¬
W. 1
*00 Branches
inc.
^
A Mutual Fund
COMMON STOCK FUND
across
Bonds
Canada m
Monthly Commercial Letter
PREFERRED STOCK FUND
upon request
Bond
BOND FUND
TOTAL ASSETS
£
156,628,838
Associated
INCOME
& Co.
FRANKLIN
Williams Deacon's Bank, Ltd.
The
(BALANCED) FUND
Prospectus
Banks:
Glyn, Mills
THE NATIONAL CITY BANK
UTILITIES FUND
DISTRIBUTORS, Inc.
64 Wall Street,
of(%nme/ice
OF NEW YORK
request
on
New York 5
Canadian Bank
Teletype: NY 1-708
New York Agency: 20
Seattle
THE CHASE
NATIONAL BANK
Head Office: Toronto
Bond Dept.
Department
OF
THE CITY OF
NEW YORK
Exchange PI.
Portland,Ore. San Francisco
Los Angeles
XI
CJlje
canadian
Bond Fund
Underwriters and
Distributors of
BOSTON
OF
Stocks and
Municipal
5 Prospect us
from authorized dealers
,
■
VAACK.
111
,'j
j
or
t.
SANDERS & CO.
OTIS & CO.
Established
BOSTON
New.York
u
,
ESTABLISHED 1891
MEMBERS
NEW YORK STOCK
CLEVELAND
Chicago
Los Angeles
.
1899
115 BROADWAY
New York
Cincinnati
Chicago
Columbus
Denver
Toledo
Dallas
Buffalo
bonds & stocks
SHOES
COMMON
Goodbody & Co.
(Incorporated)
Devonshire Street
MILES
Bonds
and
Corporate Securities
fL
CANADIAN
NEW
YORK
105 W.
.
EXCHi
Doxcnoii Securities
GEPORAHO?!
40 Exchange Place,
New York 5, N.Y.
.•
Teletype NY 1-702-3
WHitehall 4-8161
n
#
York Stock Exchange
Principal Exchanges
Members New
and
other
111 Broadway,
Boston
N. y. 6
Teletype NY 1-270S
Telephone: Enterprise 1820
worth 4-6000
ADAMS ST.
CHICAGO
IRA HAUPT&CO.
2
(894)
The Commercial and Financial Chronicle
TRADING
MARKETS
The
IN
American Na.ural Gas
Common
&
Security I Like Best
A continuous forum in which, each
Rights
in the investment and
Puget Sound Power & Light
Eastern Utilities Associates
♦nor
(Conv.)
they
are
in
this forum
he regarded,
to
WALTER K. GUTMAN
Corporation
Goodbody & Co., New York City
Economic
which
Analyst,
1920
(Dow Chemical Co.)
Teletype NY 1-583
At
given
any
which
stocks
I like
worth buying
moment
seem
went
down.
made
prices
high,
look
is
ence
Rights & Scrip
most
when
Since 1917
that
of their
stocks
down
of
Members
Exchange
BROADWAY, NEW YORK 5
Tel. REctor 2-7815
In
that
way
have
to
that
or-
you
have
Walter K. Gutman
getting good
If the stocks go down,
they test your ideas. You learn if
you
really want them.- Usually
there are moments when you feel
Churchill-Downs Inc.
than
less
Capital Stock
the funda¬
stocks you
but
good;
mental result of buying
Consider H. Willett
really like to own is to eventually
a profit. This happened with
the utility holding companies in
Common
make
in
turers
™f
BANKERS BOND
and
the
steels
can
also
add
the rub¬
down
If the
possibility
be
may
which
ing
able
papers
become
at
ft paid to buy at that mo¬
rapidly
purchaser.
been
ation
to
put
them.
for
it
Yet
can
be
ing
to
argued that before next spring
they may be bought still cheaper.
Despite
this possibility I
have
advising purchase of chemi¬
and other
cals, pharmaceuticals
growth issues.
would
3%%
148 State St., Boston 9, Mass.
:
Teletype BS 259
:
*
^ N. Y. Telephone WOrth 4-5000
^
call
not
American
copper
earnings ratios
are
price to
at these levels
The
even
better than sensible.
no
Dow
Chemical is selling for nine times
its current annual rate of earnings,
U.
S.
Steel, even at its
13-year high, has been selling for
less
Ohio. Water Service
Scranton
Spring Brook Water
than
this
year's
you have to
growth stock
investment
be
funds
placed in them
their
excellent
defined,
stocks
com¬
are
to
a
'
WHitehall 4-2530 Teletype NY 1-3568
because
records
prospects.
become
dirt
of
well
and
growth
For
them to yield 7%-8%
VOGELL & CO., Inc.
Street, New York 5
times
mitted to them, and will continue
to
Hytron Radio & Electronics
37 Wall
four
earnings. But then
ask, how cheap can a
get? These stocks are the premier
equities of our markets., Impor¬
tant
Purolator Products
cheap, for
and sell on
low
price-earnings ratio,
would
require
a11 revolutionary
change in investor thinking. The
fact that they are now available
very
on a
of
reasonable basis is
a
minor
something
revolution.
is
It
this
sudden
Primary Markets in
Over-The-Counter
Securities
change in the relationship
of the price of growth stocks to
their"
proven
tempts
me
Dow
to
and
have
been
basis
by
MEMBERS
NEW YORK STOCK EXCHANGE
NEW YORK CURB EXCHANGE
40 EXCHANGE PL., NEW YORK 5. N. Y.
Phone
DIgby 4-4950
Teletype NY 1-953
earning
-earnings
buy them.
other
bought
the
forces—(1)
Skaskan &(b.
Cyanamid
which
)
growth
to
a
interaction
stocks
sensible
of
two
the rapid increase in
power
demonstrated
in
this year and the sudden prospect
of excess
profits taxes. First-half
earnings of numerous growth com¬
panies showed that they really did
have
the
earning power which
their
followers
forecasting.
EU
'tit 'It Hi*
had
long
This earning
V'f
been
power,
common
be
can
company
be
able
in¬
their
They
research
They
growth
faster
a
schedules
turnover
than
is
to
on
in
charged $20
equalled
With
con¬
conven¬
depreciation in
plant.
of
possible
established
equipment
This
gross
metal.
legal
dis¬
companies
may
to
told
could
that
me
give
his
its taxes
prof¬
excess
it will have this year,
as
this
clauses
as
big
escape
company
profits in 1951 under
year
its
7%
this
last
of
prospects,
but
tremendous
a
effort
vested
both
in
plant
in¬
and
research, only part of which finds
reflection in
their
balance sheets.
effective
panies,
new
relief
may
keep
An old
axiom
on
example.
C
the
do?
now
why
buying stocks which
Well,
now,
The steels for
for
one
thing
I
Far from it.
Comparing
restaurant,
a
do
with
a
to
dollar
what
in
a
you
lot
of
places, I keep on thinking that
many of them are cheap, certain¬
ly well worth the money. What in¬
trigues me about growth stocks is
that they are suddenly available at
last year's prices even though they
may
be wortn
less,
taxes
will
surely be
is
of
Securities
Portland, Me.
Dealers
Ino.
10, Mass.
Tele. BS 142
Enterprise 2904
.
Hartford. Conn.
Enterprise 6800
OpenEnd Phone tolNew York Canal
6-1613
Pocono Hotel Com
Units
Warner Company Common
West Penn Power Common
Philadelphia Electric Common
Equitable Gas Common
Dan River Mills Common
Henry B. Warner & Co., Inc.
Phila.-Balto.
Stock
Exchange
123 South Broad St., Phila. 9, Pa.
Phila. Telephone t\
PEnnypacker
New York
dire
things
may
happen,
but
there
Bell System Teletype
5-285f'
Cfty Tel.:
PH 771
BOw.ing Green 9-4818
the
found
in
know it is really only 15
old, it dates as a big scale
operations from the discovery of
vitamins and sulfa drugs.
The
chemical industry as an aggres¬
sively inquisitive, creative, eco¬
nomic entity is only 25 years old.
we
years
It dates from the development of
cellulosics
—
and
rayons
phane circa 1925.
As to
imaginative approach
to
cello¬
glass,
condition
and
prepared to meet
whatever the future may produce.
The "Chronicle" of Aug.
3, pre¬
sented C & O
article,
glass
mended
the
matter
industries.
The
of
a
steel
lot
of
is
becoming chemical and electronic
at"az'r>af
r>1in
Fle^rnivHc
plating, electrolytic galvaniz-
hereby,
a
"Copeland Refriger'n'
*lnformation
cahontas
fields
Eastern
tally,
of
West
Kentucky.
Pocahontas
is
request
recom¬
the great Po¬
serves
on
staff
parallel reading.
more
bituminous
as
"Douglas & Lomason
aetna securities
Corporation
coal business than any other rail¬
Virginia
111
Broadway, New York 5
WOrth
4-6400
Inciden¬
Tele. N. Y.
1-2494
admittedly
the best steam coal in the world.
Also
C
& O has along its lines
mines which produce high
quality metallurgical and special
many
purpose
Over-tlie-Counter
coals.
Also
importantly, it moves an
immense tonnage other than coal,
including automobiles, auto parts,
chemicals
and
ucts,
&
iron
Quotation Services
for 37 Years
O
and
Corridor
everything.
business
relatively
food prod¬
Chessie
practically
Passenger
been
paper,
The
etc.
produces
C
explosives,
steel, petroleum and its prod¬
ucts, pulp and
other
industry
is
Originating
and
is
high points in
which
"Plywood Inc.
Berkeley Williams
ucts, with top flight management,
in sound
physical and financial
an
about a dozen years old.
These
growth industries arb putting mind
"Winters & Crampton
handling
ness,
and
"buy" in depth.
of growth
left; The pharmaceutical industry
can
great deal
Lea Fabrics
an
ty. Investors
a
*
en¬
gaged
road, C & O
is
TRADING MARKETS
C & O will be
showing record earnings.
If
they get cheaper, there will be a
really amazing buying opportuni¬
are
an
common
ture the dollar
many
stocks to houses, to what you can
at
good spec¬
a
O
fu¬
essential prod¬
tin
Assn.
Tel. HUbbard 2-5500
Members
In
ent time.
into
&
both.
essential busi¬
as
Nat'l
75 Federal St., Boston
Wall Street is
of
"a good investment is
ulation," and
be greater and
growth com¬
not such stocks sell
less vulnerable.
There
J. B. Mognite & Co., Inc.
Members
Purolator Products Common
don't think the growth stocks are
the only cheap group at the
pres¬
can
Quoted
—
Light Common
Philadelphia Transportation Co.
(Chesapeake and Ohio Common)
law do not bring
lower than they
Why buy growth stocks
at
Sold
Penna. Power &
Richmond, Va.
to
escape
much
get
—
nalism in gov¬
the
suppose
sions of the
are
WILLIAMS
Retired Investment Banker
ernment will
record.
not
Bought
Allan Wood Steel Com. & Pfd.
BERKELEY
provi¬
quite
Manufacturing
charge
like Dow today offer not
only fine
higher, pater¬
make
Bates
its
Dow
is in a
pretty
good position to finance expansion
regardless of taxes. Growth stocks
a
will
branch offices
established
distinctions
into
our
equip¬
new
which tends to
process
capital
from
keep a large share of
growing earnings. One treas¬
their
and
240
on
sense
translated
tinctions,
But
growth stocks
4V2%.
and
whereas
Southern Production
grow¬
the
mycin,' with those being made by
urer
dirt cheap—after all the yields are
still
modest,
running
between
Cel. CA. 7-0425
of
a
I
I
because
the
tensive
favorable to the
levels where
they represent worth while statis¬
tical values—a quite unusual situ¬
★
★
profits
and
report.
b,y the demands
are
in
profits taxes.
for
them
million
are
aureomycin, of Pfizer fiom terra-
been
★
between
swollen
and those which
NY 1-1557
Birmingham, Ala.
Mobile, Ala.
have
industry.
tional industries. Dow
is promul¬
ment, even in cases when the im¬
market action was un¬
have
Request
on
drawn
are
war
leaders
established
excess
ventional
over, an effective legal distinction
of
HAnover 2-0700
New Orleans, La. -
which won't be hurt at
invested
on
that
elections
by
ment
bear
unfair to compare the profits com¬
the
and
values
real
By rorce of war growth stocks
Analysis
the
once
all
well
give
an atmosphere of reason¬
legislative calm, which is a
If such
CONTROL
law
new
the
are
schedules
gated in
able
hange
■
also have established depreciation
mind
my
chance
avail¬
liquors
mediate
U. S. THERMO
reasonable
extrusion
cold
through
all
con¬
profits taxes will not
think.
Exchange
St., New York 4, N. Y.
important seg¬
rapidly. The growth
it
programs
as
heavily on legitimately
growing
profits
as
many
fast
Curb
25 Broad
change
of
have
to take growth stocks out
hands if the tax
To
will
ing
speculative
a
StoLk.
York
hot pace of change which is sweep¬
long-term investment
brightens.
hot and
industries
feel
can
ing,
and
ments
proves
various times in the last ten years.
When
Bell Tele. LS 136
Long Distance 238-9
are
Speculators
excess
York
New
Direct wires to
barking,
likely to work
that
picture
New
com¬
development of new and
improved products. Certainly it is
bers,
Kentucky Home Life Bldg.
LOUISVILLE 2, KENTUCKY
in
1947
One
1949.
Incorporated
1st Floor,
manufac¬
with the aircraft
1941,
growth
medium term specula¬
as
there is
values in the
Common
body & Co., N. Y. City (Page 33)
recent
fident
money
first place.
American Air Filter Co.
Bonds—R. B. Williams, Manager
of Research Dept., Kidder, Pea-
power..
the
Steiner, Rouse & Co!
<./.
highs since
Some are still
tions.
of
are
you
(Page 2)
Canadian Short and Medium Term
funds will continue to want growth
stocks.
There will be plenty of
belief
deep
a
out well
feel
to
Virginia.
stocks
new
the
growth stocks
go
instead
up.
der
Exchange
Curb
York
New
120
Stock
than
Common—
Williams, Retired In¬
Banker, Richmond,
Obviously if the tax bite
less
Bought—Sold—Quoted
Ohio
and
vestment
pulling at capacity and
earnings
Co.,
Berkeley
prices, to
they fell in the break. But
working at a feverish pace, the
are
dis¬
Analyst,
New
York
steel,
aircraft
which
of
Louisiana Securities
Economic
looked
once
going
striking proof
tressed if your
fr|C PONNELL & Co.
Chesapeake
away,
July break.
selling at last year's
are
Alabama &
Company—Walter
Gutman,
Goodbody &
City (Page 2)
Unlike
machinery, and
typical
growth
plants
and
Selections
Chemical
K.
the third quarter reports are
to give even more
money
you
too
not
which
the
panies
make the
you
far
so
cheap.
have not rallied to
new
My experi¬
York
Dow
he,
to
the securities
looked
once
equities,
immediately and which I would
be glad to buy more of if they
Specialists in
New
sell
to
copper,
120 Broadway, New York 5
BArciay 7-5660
intended
discussed.)
New York Hanseatic
Established
offer
an
as
Thursday, September 7, 1950
die coumry
o,
particular security.
a
not
are
.
Week's
Participants
Their
of experts
group
section*
an
for favoring
reasons
(The articles contained
different
a
advisory tieid trom
participate and give their
Federal Water & Gas, Siubs
week,
This
Forum
..
has
never
important
National Quotation Bureau
Incorporated '
to
Established 1913
the
Hollywood antics
indulged in to stimulate passenger
Continued
46 Front Street
CHICAGO
on
page
33
New York
SAN
>
4, N. Y.
FRANCISCO
9
Volume 172
Number 4940
.
.
The Comrnercial and Financial Chronicle
.
(895)
INDEX
Marxist Influence Underlies
Lichkimih
B. S.
Articles and News
Demand for
vQu ckie" EPT
ROBERT
By
early
maintains
current
AND COMPANY
S. BYFIELD
legislative agreement to enact
profits tax is product of long
Marxist
of antibusiness smear.ng w.th definite Marxist roots.
Warns strength
of sentiment now displayed by legislators may well presage
demagogues' future success in imposing low ceiling on
"sinful" profits.
excess
years
Influence
The
conaovcrs^ai
a
tax,
would
he
choose
that
which
new
no
most
In
means.
unjust
tion
the masses."
Gustav
The
That
Le
would be levied
on
incomes has been
after
Korean
began.
i t i
con¬
short¬
"take
4
Next Decade's New Capital Needs—E. W. Eckard
6
a
up, as
is
Snyder
a
ideolog¬
for Democratic
cans
putable aspir¬
battle
in
ation, particu¬
larly during a
Sept.
1,
Robert
S.
Byfield
shooting war.
Though a hackneyed cliche, there
elment
of
rough
holding that "when
justice in
draft
you
men
should also draft money." We
quarrel
with
this
basic
you
cannot
concept;
we
only
can
point
out
that it must be fairly and honest¬
ence
the
is
redistributing wealth and
incomes.
Our
or
time
soundness of txie
since its terms
it
had
order to
in
Excessive
get
we
statute
the
on
books
amazed that perhaps a ma¬
are
can
new
Levy an EPT without giv¬
(1)
Tax alleged wartime excess
(2)
have not yet
held
been
have
until
and
debates
ii>
concluded.
been
provisions
Specific
hearings
remain
to
be
highly
ing
will
the
Treasury,
the
important
taxpayers
to
in¬
volved, the corporate shareholders
and, in fact, most of us, they may
classified
future
of
as
immediate
than
of
seek
rather
to
strength
nificance
of
the
rather
concern.
out the
point
tonishing
and
We
as¬
deep sig¬
movement prin¬
cipally in the Senate but also in
the
House to
levy a '"quickie"
EPT
!on
corporate
profits.
A
generally agreed
by close observers of the Wash¬
ington scene that there would be
no
EPT until 1951.
Neither the
Treasury, the White House, the
month ago it was
Senate Finance Committee nor
the
and Means Commit¬
it otherwise.
Long
House Ways
tee .wanted
—Louis E. Walker
The
in the nature of
could not for some
ahead be any war profits
when
months
Defy the wishes of an Ad¬
(3)
which
ministration
has
never
shrunk from the fullest use of
tax
powers
is
It
on
Curb
York
New
Exchange—Its Listing
Estate Planning—Mobilize Now—Edward M.
dismal
history
in
that
—F.
Raymond Peterson
13
Role of Bank Credit in Nation's Economy—Kenneth K. DuVall
Harrisburg Steel
15
Inflation—It Must Be Conquered, Not Just Restrained!
—Robert L.
Bunting
Lone Star Steel
16
;
Labor's Security Package and the Collapsing Dollar
—E. S.
*
*
(New)
*
Mobilization
5
City College Announces Courses in Credit and Finance
9
"Pay-As-We-Go"
Favors
N. Y.
Texas Engineering
17
Pillsbury
Bought
—
Sold
—
Quoted
Correspondent Discusses "Our Bloodless Political Revolution" 19
FHLB Notes
Market
on
of
ride
willingness to
a
shareholders
corporate
We Must Be Realists, Too
that his opponents were
Korean
the
crisis
may
as
"using the
excuse
an
be
claimed
to
permanent excess prof¬
its tax."
For some years there has
been a belief among certain Con¬
establish
a
gressional
time
circles
excess
knowledged
swering
that
a
a
peace¬
profits tax would be
Connally
Senator
feasible.
Street, New York 4
'
d
■
,
L
AIRCRAFT
Regular Features
Foote Bros. Gear & Machine
12
Liberty Products
9
Business Man's Bookshelf
Canadian Securities
Texas
18
_.
EQUIPMENT
MANUFACTURERS
Cover
(Editorial).
As We See It
Engineering & Mfg.
Continental Aviation &
31
Coming Events in the Investment Field
Eng.
Lear Inc.
8
Dealer-Broker Investment Recommendations
20
Einzig—"Higher Interest Rates?".^
its
ac¬
existence in an¬
on the Senate
on
page
MACKIE, Inc.
•
40 Exchange
HAnover 2-0270
Mutual
14
Funds
PL, N. Y. 8
„
Teletype NY 1-1825 & NY 1-1826
16
NSTA Notes
News About Banks and
Bankers
Wilfred
Our
Reporter's Report
Our
Reporter
—_.
May
15
BUY
5
—
39
on
Utility
Public
S.
U.
SAVINGS
17
Governments
BONDS
37j j
Security Offerings
Prospective
21 >
Securities
Securities
10
Securities Salesman's Corner
23
ptGMfjst l/Ui/ue S&uuce
34
FOR BROKERS AND DEALERS
Railroad
Securities Now in Registration
...
2
Security I Like Best
The
The State of Trade and
Washington
Industry
...
You
and
To Western markets in
5
LOS
30
(Walter Whyte Says)...
Tomorrow's Markets
26
Published Twice
—-
1
Weekly
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FINANCIAL
B.
WILLIAM
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to
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N.
Y.,
9578
the
under
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Editor A Publisher
.
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C.,
E.
Rng«
A Smith.
B. Dana
Act
of
March
8» 1879»
Park Place, New York 8, N. Y.
2-9570
c/o Edwards
Copyright 1950 by William
Company
Patent Office
DANA COMPANY,
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Gardens,
Drapers'
Reentered as second-class matter February
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.
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From
charge
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2-4300
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(Boxed)
herd on
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found.
York Stock Exchange
-
Broadway, New York 6
BO 9-5133
22
the assault on
of
Spencer Trask & Co.
Chicago
61
P
_
HAnover
Incorporated
21
Purchasing Agents Report Sharp Upswing in Business
WILLIAM DANA SEIBERT,
*
J.F.Reilly &Co.
20
Shortage Continuing.
Foresees European Dollar
REctor
New
18
President Truman Reports on Korean Crisis
Observations—A.
corporate profits of the past two
decades few more flagrant cases
preferred stocks
-
12
Portsmouth Steel
Reg.
Albany
Newport Steel
11
Heffernan
Banks' Role in Present Struggle With Communism
interested in offerings of
25 Broad
Procedures and
J. Kenna__
its
occasion.
every
opinion
our
High Grade Public Utility and Industrial
Members
8
•
Unlisted Trading Privileges—Martin
.
1
YORK
Quoting Markets in Over-the-Counter Securities
The
are
WALL STREET, NEW
Telephone: WHitehail 4-6551
there
experience with EPT in the 1940s
We
69
6
to tax.
be
worked out and while their draft¬
hearing.
ing affected taxpayers a
thing
Congress
own.
to:
profits
months
some
very
believe,
to
Stocks
^
Bank and Insurance Stocks..
Zeal
Committee and subsequently
recorded
for
be
the
Regardless of just what emerges
the
Senate-House
Confer¬
been written and cannot be known
have
after
launched
was
The
hardly be to discuss the harshness,
EPT
month
a
jority of the Senate were willing
this
at
purpose
mildness
we
for
hard
Friday,
1950.
an¬
or
just
the
up
On
House.
George
other
"soaking
Action. Rep¬
took
his
bill passed at all was forced into
a
compromise which involved a
pledge
tnac
the
1951
tax law
would provide an EPT provision
retroactive to July 1 or Oct. 1,
ator
during World War II, merely
for
the
drive
EPT
from
device
Mills
reached such momentum that Sen¬
ly applied—to do otherwise, such
drafting or conscription of money
becomes, as it did to some degree
rich"
to
did Senator Humpnrey who
resentative
an
O'Mahoney
develop
the
began
high in the councils of Ameri¬
ical and indis¬
is
Railroad
but
be
strength. Senator Connally joined
a
is
It
of
much
movement
goal.
-
and
Report
known, might
a
following.
well
is
attract
popular
non
Committee
joint
long-term hostility to cor¬
retary
cer-
inly
me
despite admonitions of Sen¬
ator
George and Treasury Sec¬
legitimate,
logical, equit¬
t
Bearish Factors in
and
—Roger W. Babson
Yet,
a
c e r
of
Senator, who is
Economic
porations
not
the
that
the
whose
to
want
Corporate Bond Market—Jonas Ottens
Own"
that obsolete junk of yours
may
The issue
joined, but for some weeks it
was
on
out of war" is
and
pending tax bill.
Chairman
profits
able
to the
seemed
an
n,
Sen¬
troduction of his EPT amendment
foregone
It
good
came
1951 corporate
a
affair
o
and
Tnen
3
O Mahoney's press release of
ator
abstract propo s
logic
of
pre¬
a
July 31 and the simultaneous in¬
the
As
great
so
"Our Very
"Quickie" EPT
pro¬
by the Administra¬
having
behind it.
sense
a
Tax
Profits
clusion since early in July
ly
and
ponderance
Bon:
Crowd, 1896.
Excess
an
overall
an
There seemed little
cedure backed
he the best for
may
of
for
1
ueiay
opposition in prospect for
the
practice
couid
law
enactment
prompt
tax measure.
theoretically the most just?
By
a
Demand
Cover
our
complicated and
so
Home Front—Ernest T. Weir
Underlies
—Robert S. Byfield
Bullish
indicated that
"For instance, should a legis¬
lator, wishing to impose
page
Price Behavior of Stock Groups Since 1929—O. K. Burrell__Cover
Our Defense of the
Economist
3
50
Exchanges
Broadway, New York 5
Telephone WHitehail 3-6700
Teletype NY 1-1856
4
The Commercial and Financial Chronicle
(896)
The
ing maturing in each of the years
1970, 1973, 1975, 1976, 1980, 1982,
1986 and 1987 (convertible issues
not included) and in January sold
Corporate Bond Market
By JONAS OTTENS*
Partner, Salomon Bros. & Hutzler
Mr. Ottens gives
Natural
the
general description of classes and grades
a
bonus available for investment, along with char¬
of eacu class. Discusses changing yield relation¬
maturity
this
like to
with
preface
the
discussion
will
deal
of
cost
market
Another
for
a
bonds.
There
is
of
a
section
the
however, it does not oper¬
30
the
sinking
down
times bonds
to bonds of invest¬
bonds
dustrial
Each, in turn, can be sub¬
among
utilities into power and
aren't
light
com¬
is
manufactured
distributing com¬
panies and natural gas pipe line
companies.
Among railroads the
just
issues
larger number of issues
that
as
not
bond
of
the
form
Most
investment
turities
than
14th
lecture
bonds
in
a
given
in
the
series
Securities
of
Markets
Aug. 9,
on
17
The
on
and
Their
Industry
Vermont's
and
the
Department
bond
of
light companies mature
issue.
During
the
postwar
period,
do
sub¬
have
not
take
mortgage
There
property.
light
the
form
the
on
com¬
of
entire
few under¬
are a
lying liens outstanding, high
cou¬
and non-callaoie, representing
of companies since absorbed
pon
debt
by larger systems.
Two examples
Elmira Light 5s due 1956, now
new
cessive years, it is not unusual to
find the
same
turities
in
company
1977,
1978,
with
1979
ma¬
and
Telephone issues do not fol¬
low
York
Operation,
standardized
a
tern.
of
year,
At
the
maturity pat¬
beginning
of
this
American Telephone & Tel¬
&
egraph had debentures outstand¬
Economics.
'
which
in
Brooklyn
of
turn
Consolidated
Edison,
into
merged
was
Edison
Company of
York.
New
Until
bonds
• CHARLOTTE
CHATTANOOGA •
HUNUVILLE\
(iGREEKVILIE
ROME
\
S. C.
mortgage
\
n
• TUSCALOOSA
•«»"L
fc
W »»»»'•
\m
J
\
"£***"
\TaGRANGE •
MAC0H
•jUj
k
a
callable
issues did not
con¬
tain sinking fund provisions. Gen¬
utility
additions.
industry,
Unlike
the
railroad
a
mortgage on the
entire property, but are a lien on
many
not
are
only certain sections of the road.
Such issues are
to
generally referred
liens.
This, of
divisional
as
results
course,
in
complicated
a
reached
result,
a
issues
full
handful
a
market
maturities ranging from
and
with
from
of
companies
the
used
to
20
sinking
50%.
to
with
15
cash
a
25
As
debenture
of
the
to
came
ratios.
Other
convertible
debenture to
supplement mortgage
future equity
capital.
utility stocks
were
depressed during the post¬
debt
and
provide
Prices of
inflation
as
costs
were
up
example, Consolidated Edi¬
Company issued debentures
son
convertible
25
into
share.
a
approved
ers
common
stock
at
When the stockhold¬
the
financing, the
was selling at about 21. The
common stock
subsequently rose
in
price above
the
conversion
price of $25 a share. A substantial
stock
of
amount
debentures
verted into
time
common
debentures
the
con¬
were
stock. At
sold
one
high
as
145.
railroad bond market,
as
I
determine
their
to
investment char¬
In
the railroad field, equipment
acquisition
of
issued for the
are
rolling
stock such
freight and pas¬
Equipment trust cer¬
locomotives,
senger cars.
tificates
are
highly
a
specialized
financing and were de¬
primarily to enable rail¬
signed
roads
to
acquire
equipment
new
without that equipment becoming
to
hereafter-acquired-
is terminal bonds. These bonds
mortgages
such
Cleveland
high
grade
speculative
or
bonds.
The
period of years by
over
a
costs
with
ing ratios
the
rose
result that
rising
Station,
and
Kansas
discussion of the characteristics of
public utility, industrial and rail¬
of
rate
the result that
increase in
an
government
in
bonds.
the sup¬
bonds
and
the
supply of
For
example, in
new
amounted to only $19
money
million, although $1,200 million in
bonds
sold
were
standing issues.
made
rates
it
corporations
to
refund
refund
to
outstand¬
ing debt at lower rates of interest.
New
money
financing increased
beginning with the year 1946 wnen
$668 million of new money public
utility bonds were sold.
In 1947,
$1,729
million
million in
and
new
bond
April,
1946,
in
1948 $2,458
public util¬
money
sold.
The
when
2V2S
high in
reached
was
United
States
December,
1972/67, commonly known as Vic¬
tories, were selling to yield 2.12%.
One of the highest grade
public
utility bonds, namely, Boston Edi2%s due
son
yield
2.32%,
points
more
In the
1970,
selling to
was
only
19
than Victories.
bonds.
road
market
spring of 1946, the bond
began
a
decline
that
reached
a
carriers
inevitable.
tial
increase of traffic
of the war,
2%s, 2.84%,
a spread in yield of
points. During this period,
there were no new issues of long-
37 basis
term government
insurance
bonds. However,
companies and other in¬
stitutions sold substantial amounts
of
government
bonds, reinvesting
the proceeds in mortgages or new
corporate bonds.
From December,
1947, to December, 1948, Victories
supported
by the Federal
Reserve at a price of 100 8/32.
I
should
changing
tween
After
like to discuss the
now
yield
relationships
government and
be¬
corporate
bonds and changes between vari¬
of corporate bonds.
groups
I
think that it is important to real¬
ize
that
the
as
bond
market
un¬
the
have
not
been
been
Reserve. The
changing relationships
ever
among va¬
ment
The utility
and the
process of
high
bonds
tant
a
maturing and its securi¬
yet reached
as
credit
were
a
segment
there
still in
rating.
outstanding.
point
Industrial
relatively unimpor¬
of
few
were
a
the
market,
industrial
as
issues
Despite
rise
market.
was
monetary authorities
rise
postwar in¬
this,
the
bond
slowly during the
bonds, with the result that
were the
prime
investment in the corporate field.
industry
uary,
From June,
increase
Members New York Stock
Exchange and Other Leading Exchanges
UNDERWRITERS AND
<
BANKERS
in
INVESTMENT SECURITIES
•
Home Office: Atlanta
•
Phone LD-159
result
a
as
earnings,
a
much
position
placed
1949, to Jan¬
in price
rose
and AAA corporate bond
Early this
Reserve
again
year
the Fed¬
began
selling
long-term government bonds with
the result that Victories
Continued
currently
on
page
pleasure in announcing that
Mr. winfif.ld A. Scott
has become associated with
us as
and
Manager of
our
the
improved fi¬
MUNICIPAL BOND DEPARTMENT
permitted
them to retire and refund substan¬
tial amounts of debt.
DISTRIBUTORS OF
BRQKERS OF BONDS, STOCKS, COMMODITIES
Private Wires
nancial
almost
As
a
result,
railroads today are in much better
Cfcm&itcxtn Secu/uitcA Co/uKVuxtum
f
financial condition than they were
prior to the
Railroad
eral
bonds
follow
maturity pattern.
.suns'* M
they
war.'
|V
»«nic
are
of
longer
nO
gen¬
Generally,
t
- A
term
than
'
25 BROAD
'♦
'•
*
STREET,
a
bond
yield declined from 2.64%
to 2.44%.
eral
the
yield declined from 2.44%
to 2.23%
average
in
occurred
1950, Victories
Investors desiring to
We take
it
gov¬
June, 1949, the Federal Reserve
sharp
ago railroad bonds
had
of
by the Federal
stopped selling long-term govern¬
railroad field.
years
in
early part of 1949 and at the end
of
rious groups of securities is in the
Twenty-five
sharper
selling
ket and thu$ stop the
market did
exam¬
election
wished to tighten the money mar¬
tween various groups of bonds also
One of the prime
the
ernment securities
flation.
changes.
much
for
dergoes changes, relationship be¬
ples of what happens in these
national
November, 1948, market psychol¬
ogy changed and the bond market
began to rise. This advance would
with consequent large
railroads in
I N VESTMENT
appeared
However, the substan¬
■■
low point in October,
1948, when Victories were selling
to yield 2.47% and Boston Edison
Changing Yield Relationships
tions, bankruptcy for many of the
major
.
basis
or
operat¬
few excep¬
-
in
of
industry had deteriorated to such
some
out¬
Declining interest
advantageous for
rather sharply. Just
point that, with
1944
the sale of public utility bonds for
prior to World War II the railroad
a
a
corpo¬
were
of
into
terminals
Union
Terminal
are
City Terminal. This completes the
talk,
divided
railroad
on
Chicago
as
ties had not
is
was
Government
acteristics.
mentioned at the beginning of this
investment type bonds and second
debt with
ernment
there
There was, how¬
money.
large increase in the gov¬
a
were
ous
For
new
ever,
market
and
earnings adversely affected. When
debentures are converted, equity
capital is provided at the conver¬
for
ity bonds
order
property clauses in the mortgages.
Another type of railroad security
times
commodities, are
supply and demand.
the
in
the large construction programs in
the postwar period, mortgage debt
at
and
study of such
issues
gener¬
other forms of
as are any
capital structure requiring careful
subject
railroad industry has been plagued
I»Ll»K»\
BIRMINGHAM
tice to issue bonds with
prac¬
type of debt that power and light
companies had outstanding. Due to
grade
tMISlll*
general
medium of
first
recently
represented about the only
The
liljlLM'.l
This
bonds
by
During the war there were prac¬
tically no corporate bonds issued
ply
become
nas
as
'HEW YORK OFFICE
—>
not
Bonds,
affected
decrease
it
lying
Railroad Bond Market
DURHAM
rail¬
a
does
corporate
securities
that
trust certificates
as
TO BROAD ST.
which
the year 2361.
of New York State Electric
Company; and Kings Coun¬
ty Electric 6s due 1997, an under¬
issue
purchase
issue, incidentally, is non-callable.
only in the last 20 to 25 years
part
& Gas
as
the
Commerce
and
price, which is usually above
the market price at the time of
and light companies needed
capital and sold issues in suc¬
issue
until
It is
bonds
usually
first
war
issues
companies
panies
a
power
other
University
of
the
Company
issuance.
sponsored jointly by the New York Secu¬
rities
take
Bonds of Utilities
ma¬
1950,
New
usually
outstanding today
bond
property
Telegraph
bonds.
of
sion
1980.
*,A
most
maturity,
yield.
issues
30 years from date of
Industrial
bonds generally have shorter
in
the
of debentures.
of
power and
issues
the general
public.
prices
shorter
Industrial
actively traded and
are not well known to
of
non-callable.
Issues of the American Telephone
years,
second grade or speculative, but
are
bonds
There is
road
100 years and gen¬
made
were
&
retirement
actual
no
fund
outstanding that might be classed
they
this
less
feature
the
of
have
industrial
the lower the
high-grade
Some
are.
All
group.
turities up to
erally
speaking, such
sinking
funds are cash sinking funds and
there are no offseting credits for
yield
large majority
companies
utilities
but there
popular,
latter
the
that
during the expansion of the rail¬
road industry were issued for ma¬
Thursday, September 7, 1950
.
ally bought railroad bonds.
century
erally
additions, and there
property
comparable
investments; certainly the impor¬
tant
demand
quality will sell to
than the longer-term
utility bonds.
That is a natural
has certain
are
in
are
mean
as
cases—the
of industrial bonds
"maturities,
seeking
highfixed-interest
securities.
means
general classifications are
transportation and terminal com¬
panies.
A
to
at
investors
much
a
in
only
characteristics.
shorter
doesn't
That
natural gas
groups
as
purchased in the
bonds
grade,
panies, telephones,
the
tends
heavy sinking
funds,
and
the
comparatively small number of
industrial issues outstanding, in¬
generally
namely,
are
fund
maturity and
are
of
Because
divided, the industrials into steel,
oil and chemicals down through
the
various
industries;
public
smaller
esti¬
the
of
for
Bonds of power and
some¬
market, above average price
stability results.
industrial, public utility and rail¬
df
An
fall
open
divided into three groups,
Each
100%,
would
turn
Until the last few years,
sinking funds.
years.
individual issues
on
to
average
shorten
Ottens
Jonas
ment merit.
and
maturity of 10
the
bond
are
those at this time and confine our¬
roads.
from
As
over
Corporate
5% annual sinking
at
railroad
sidiary
where between 60 and 75%.
We will
selves mostly
a
average
mated
railroad
pass
investor purchases
bond with
run
nature,
particu¬
larly
in
the
field.
an
Sinking funds
high-
a
through call
sold
feature.
is
Thus, the sinking fund provides
shorter average maturity.
For
an
grade
of
iund due in 20 years he may have
bond
market that is
not of
bonds
of
example, if
a
large
feature
heavy cash
by purchase in the market.
or
U. S. Govern¬
ment
important
industrial bonds is the
or public utility
Many of the railroad bonds
on
a
cash basis, particularly
during periods of expansion, as
the sinking fund receives credit
ate
in
20-year range.
retirement
the
by
issues
many
sinking
and
light bbnds carry a
sinking fund, a small one. The
norm
is 1%
annually.
In most
sinking funds entailing the actual
rates
money
and
with
groups
the 15- to
mainly
with debt securities influenced by
the
two
my
that
statement
pattern
industrial
bonds.
mature
cases,
should
of
are
Power and
examples of price and yield fluctuations. Points out effects of
sinking tunds and callable features on bond prices.
I
because
involved,
assets
funds.
ships between corporate and government securities, and cites
remarks
bonds,
gas
wasting
similar to industrial bonds in their
of corporation
acteristics
issue due in 1971.
an
either
..
f
V*
NEW'YORKT,
Telephone: DIgby 8-2150
ji u
N.Y.
I
i
21
,
Volume 172
Number 4940
.
.
.
(897)
The Commercial and Financial Chronicle
*5
Favors "Pay-As-We-Go"
Steel Production
The
•
Mobilization
Electric Output
Observations.
Carloadings
Retail
State of Trade
and
Trade
Guaranty Trust Co. of N. Y., in
Commodity Pv-ice Index
Industry
Food Price Index
its
Auto Production
holds it is
take back in taxes most of
The high level oi industrial output present
over
into
last
week.
However, in
carried
changes in production in
tional
nature.
Compared
moderately higher.
With
for
the
Korean
decided
shift
industries
many
with
total
ago,
a
frac¬
output
was
our
increasingly
to
economy
showing
the
need
a
the
the future
of the
Canadian
Railway strike on Thursday of last week pending
settlement by disputing parties, the deferment of the General
Electric Co. strike, and the probable settlement of the Aug. 6l
walkout
at the
Bendix
Aviation
Corporation's huge plant at
Teterboro, N'. J., involving 600 workers engaged in war work.
of
Another
Motor
past week having
trade
and
industry
direct bearing
a
include
happening of significance
the
was
on
postponement
the action of the Ford
Company on Monday (Labor Day) of this week in joining
Chrysler Corp., which initiated the move, and with other
with the
increases.
Scrapping its old wage contract, the company advanced the pay of
110,000 CIO United Auto Workers hourly rated employees by eight
cents per hour, effective immediately.
According to unofficial
estimates, the annual cost of the agreement will be close to
$50,000,000, with total benefits gained by the union equivalent to
automotive
major
cents
19.5
an
the
granting
in
manufacturers
wage
hour.
bilization
will be increased to $125 a
month,
$100, including Federal Social Security benefits, which, with
hourly wage increases, will make the new five-year
latest
pact historic, as it is the first time in the industry that a company
has voluntarily cancelled its standing agreement and innovated a
new
one
of such
solved
the
In
steel
steel
industry,
procurement
problems
are
in
More and more the market assumes a pattern rem¬
wartime, the magazine adds. Voluntary allocations by
mills
are
definitely restricting shipments to established
tonnage.
iniscent of
in
resulting
quotas
customer
futile
a
scramble
consumer
for
protective tonnage in every direction.
Military requirements,
carrying precedence over civilian orders, are necessitating some
adjustments in allotments and rolling schedules to the dis¬
advantage of the regular trade.
The
in
tone of
mate
the market is very strong but no
prices are noted. Isolated advances continue
producers but the larger interests are
ff
major changes
to be made by the
holding firmly to
smaller
long-established schedules.
it
of
back-logs of unfilled orders may
mounting
be
gleaned from the figures released the past week by the United
Department of Commerce. According to this source, a back¬
States
log of $3,000,000,000
facturers' production
of unfilled orders has been added to manu¬
capacities during the month of July. Deliv¬
comparing with $15,80u,$20,800,000,000 im'June of
$32,000,000,000 dropped to
July totalled $19,900,000,000,
000.000 for the like month of 1949, and
eries
in
year.
June
inventories of
$31,700,000,000 at the close of July.
this
Labor Day
Curtailments
While
false
tne
from
an
the
by
In
commenting
national problem,
"The
Survey"
stated
that
the
"Federal Reserve System's action
in
rediscount rate to
IVz°Io is a wise ap¬
the
raising
from
proach
the
to
Reserve
wnicn
requirements
uniformly
more
minimize
to
as
might
System
well be
applicable
eliminate
or
flexible
"A
higher
discount
short-term
with
coupled
to
budget,
are
and
rates,
raised high
the Federal
money
taxes
balance
enough
rate
central features of an
effective though arduous strategy
for
the situation facing
editorial
continues.
meeting
up,"
the
"Otherwise
boding for
the
outlook
is
fore¬
serious inflationary
a
In fact, the postwar infla¬
trend was plain enough
spiral.
tionary
lo.jg before the Korean outbreak
posed the fresh need for superim¬
posing'
the
a
potential on top of
war
fiscal
drift
toward
an
indef¬
inite series of unbalanced Govern¬
and
ever
for
of military
economy,
II
War
have
math
and
shown
its
that
after¬
rationing
price-fixing regulations, how¬
justifiable, are not substitutes
wise
and
sound
financing
methods," it is further stated. "In¬
flationary pressures can be held
in
check
their
for
a
while,
is
force
pent-up
but when
unleashed
difficult to control,
people
become
and it is the masses of the
such
Government
most.
suffer
who
over
prices
wages,
undermined
become
ple lose confidence in the dollar.
•
It has been
suggested," reports
magazine
of
the
monthly
A. Wilfred May
of the changed
investors'
warnings. This
distrusts the in¬
vestment companies as a whole because of their connotations of
the 1920s; a fallacy whose rebuttal by disinterested organizations
least
equals that afforded the investor in other securities,
need information and advice rather than
columnist repeatedly finds that the layman still
today
with
grind
to
axe
no
effective—in fact even more
regulations no matter how construc¬
be most
can
effective than additional SEC
tive they are.
The Trusts' Psychological
Justification
the
problems—
pamphlet under review points out in non-scare terms
The
increased complexity of today's investment
of tax, political, and currency-depreciation
greatly
because
problems-
leading to the investor's need for trusts under expert manage¬
ment.
But the authors, as so many others, overlook the all-im¬
psychological raison d'etre for honest management of
people's money"; corresponding to the disadvantage, be¬
cause of emotional factors, of a medical doctor ministering to his
own illness. " The investment expert too, will deal with the emo¬
tional factors bound up with investment operations more logically
portant
"other
acting for others than for himself. While this psychological
more difficult to implant in tne layman than are
performance demonstrations and fear-and-escape selling tech¬
niques, it should be persistently hammered in by both those with¬
when
fact
out
is perhaps
the trust
within
and
The
In
any
movement's
movement.
Great Growth Ahead
event, the authors convincingly point out the trust
opportunities for further growth, despite the recent
phenomenal mushrooming
Street depression as well
of
the
funds
open-end
hnidst Wall
As they state, of the
$2 billion of current savings invested in corporate securities, only
about $97 million or 5% is invested in mutual fund shares. In no
State are shares held by more than 2% of the population, and in
only six States are they held by more than 1 % of the population.
Seen in this
perspective, the current mass entry of brokerage
firms and others into the funds distribution tield is not alarming—
as
prosperity.
particularly as safeguarded with the accompanying external and
self-policing. The pamphlet renders a vaiuaole service in giving,
a succinct summary of the SEC's regulations through
the Invest¬
ment Company Act of 1940. In future editions could be added and
evaluated the SEC's above-mentioned "Statement of Policy" re¬
stricting sales literature abuses, and the regulatory activities
States, as in Wisconsin under the aegis of President Edward
of the National Association of Securities Administrators.
and
and in¬
effectual if the masses of the peo¬
the
Because of me
objectivity and experience in the field
members of the Federal
are
Reserve
made
problem.
of banks
current
|
point out in their foreword to the booklet, be¬
situation wherein Federal regulation has out¬
lawed the worst previously-existing abuses, and since the pro¬
tection now afforded the purchaser of investment-trust shares at
fiscal
the
on
a
As the authors
cause
the
of
is
investors, and their conclusions serve as a sig¬
nificant basis for discussion of the trust movement.
Company of New York.
aspects
members,
are
(this is the ninth annual edition), they possess
rare opportunity to serve the community of
Trust
Guaranty
J
study and of
a
possible to individuals, according
to "The Survey," which is issued
monthly
authors
the
"explanatory" fund literature.
banking structure by selling
many
Government bonds as
as
staff
authors'
time keep
same
the increase in Federal debt out of
controls
prophets try to minimize the impact
the steel market this week is gasping
enveloping assault of full-blown hysteria, according to
Continued on page 27
buildup on our
poiicy to approxi¬
as possible by
and at the
power,
$1; published
non-commercial, non-political organization—in
contrast to the naturally self-interested distributors of most of the current mass of sales and
taking back in taxes most of the
excess
of consumers' purchasing
they
Rise Slightly Due to Fewer
Steel Output to
feasible, it would
closely
as
"World
Evidence
The Institute publishing the
ment budgets.
*
if
not
fiscal
wise
pp.,
Harrington, Mass., 1950).
Great
whose
If that is
Wenzler, 94
George H.
by American Institute for Economic Research,
Without In¬
"Mobilization
Investment Trusts
independent organization and applying
an
and
flation."
in¬
intensity, according to "Steel," the national metalworking authority. With producers virtually out of the market
on all products over the remainder of the year, consumers continue
this week to wage a losing battle in their struggle to get additional
the
"pay-as-
regional differences.
*
*
it
financing
on
a
objective scrutiny to today's trust business is
being widely circulated among lay investor^
("Investment Trusts and Funds—From the In¬
vestor's Point of View," by Edmund A. Mennis
by the fignt-
provoked
by
torial,
su
proportions.
%
creasing
by
we-go," declared "The Guaranty
Survey" today in its feature edi¬
1%%
Pensions of Ford workers
from
power
higher government
outlays.
be
Events
*
The economic and military mo¬
continue to drop.
course
purchasing
As
coincidence, almost simultaneously with the Securities
and Exchange Commission's issuance of its "Statement of Policy"
with its regulations for cleaning house in the mutual funds dealers'
and underwriters' promotions of their wares, a pamphlet compiled
excess
ing in Korea may best be met and
campaign
in
purely of
wartime footing, the
drain in manpower, both for military production and the armed
forces, is beginning to make itself felt, and as a consequence, both
initial
and
accumulated
claims
for
unemployment
insurance
a
arising from
in past weeks was
this latest period,
were
year
a
of consumer's
Some Disinterested Observations
fiscal policy to
wise
Business Failures
J
By A. WILFRED MAY
monthly publication,
current
of the
Samp
Appraisal of Individual Trusts
feature of thisLdisinterested book is a
statement of its findings regarding individual trusts.
A
unique
forthright
There is a
comprehensive listing of allTrfvestment trulls in the United States,
indicating briefly the authors' reasons for considering each one
Continued on page 20
Guaranty Trust Company of New
York, "that United States savings
ds include
bo
a
cost-of-living ad¬
provision which would
assure the patriotic citizen-inves¬
tor that his pay-off at maturity
justment
We
pleased to
are
announce
that
We
are
pleased to
announce
that
would be in the form of real pur¬
JOHN
F.
WELLER
chasing
accepted the management of the complete
rather
than
in
a
DOUGLAS 11. HANSEL.
be depreciated purchasing
Such a prevision would
might
has
power
nominal number of dollars of what
power.
has.become associated with us
clso encourage the Government to
business
and
trading operations of this firm
adhere firmly
to non- inflationary
fiscal practices."
' n
With S.
B.
to
direcl
our
Dealer Service Department
Franklin Co.
(Special to The Financial Chronicle)
BLIZZARD
H.
HERBERT
LOS
rence
has been recalled to Active Service
the
ANGELES, Calif.
Pleener had
staff
of
& Co., 215
HERBERT H. BLIZZARD & CO.
1421
Phih
Phila.
2, Pa.
lestnut St.,
Chestnut
\
'
.
*
1
LOcust
♦
• '
♦
7-6619
t
'
> k
—
Lau¬
to
been added
Samuel
B.
Franklin
West Seventh Street.
Shields & Company
'
.It
(Special
to Tiie Financial Chronicle)
)
.
41
E. F. Hutton Co. Adds
»
.
.
MenibersISi'it York" faocff Exchange
WALL
CHICAGO
^
^HOUSTON
SAN
DIEGO, Calif.—Warren R.
Grundmeyer is now with, E. F.
Hutton & Co., 1066 Fourth Avenue.
He was formerly with Hope & Co.
BOSTON
'■>• *»'
LITTLE
L
►
&fltEET, NEW46K&U N. Y.
ROC.W
^
BFEFALOH
LOS ANGELES
>
BEVFK LA WLIjS
.
G
(C38)
The Commercial and Financial Chronicle
throughout the period.
Next Decade's New
By E. YV.
reveals
Capital Needs
Professor
ation
ECfcARD
Eckard,
major
no
(3) there
war;
full employment for an increasing labor
force; and (4) technological progress will continue, estimates
during next 10 years additional net capital accumulation re¬
quired will be $176.4 billion, or an annual average of $17.6
needs
here is to estimate
for
the
United
ten
years.
capital
States
creation
for
Attention
the
will
rected
next
There
to
the
that
of
prog-
It
is
that
at
1965803724
a
when
so
other
be-
are
ing
advanced
for
consider-
ation. The
thor
au-
is
aware
uncertainties
which
the
of
accuracy
forecast, and accordingly has
careful
this
is appro-
many
needs
as
upon
of
priate
affect
be-
possible
as
any
been
in
his
estimates.
of future needs is
the
on
economy
assumption that our
will behave throughout
the next
ten
the
same
in practically
years
that
manner
it
has
more
tions
stated
are
specific
for
adding clarity.
of
the
dollar
changed.
major
of
the
remain
the
so
pioximate
in
we
the
full
may
labor
increase
remain
will
con-
be
expect
force to
an
increase
lead
needs
for
to
an
capital
assumptions to
prove
generally, obvious.
true
are far—
and
to
A
major
capacity
a
war
wage
a
and
war
Arises
the need
The
addition to
data
cussion
hpln
mav
it
rrpa<;pH
pertinent to this
are
summarized
dis-
by
the
Estimates
(l)
of
Labor
(2)
^rpatlv
Per Worker
Labor
Force
Year
(Millions)
1950——_
1956_____
with 1% inc.
per year
($ Thousands)
per
nf
Ihe^pasf dsePverraT0cenLriUes"
been
change to
a
more
product per workimprovement has come
avei age
This
irregularly
and
establish
long-term rate of in-
a
it
because
crease
variables
is
difficult
of
the
involved.
nLn4
to
several
Research
At
the
of
far
1C*
frorn
npr
value
o£
cause
,vhen
form
of
the
a
rate
vppr
...tit
Tl
apply'to
is
the
caDital
is
no
the
madp
than
rate
the
value.
of
In
sense
it
-
^A^
?e»
app!ying a
requirement
crease
to
if
II
ntp
rate
th
i<?
in is
and
P^r annum mcrease
capital
postwar
nf
ot
inproDCQ
increase
prevails
Needs
(5)
Net Annual
Capital
price level- This
(1) X(2)
Accretion
($ Billions)
($ Billions)
Rate of 4%
<
7
v-
P4
same
level
For
the
capital
reasons, although the
remains stable.
of
purpose
consumption
estimating
for
the
fol¬
four-year
Gross
(hereafter
called
$239.8
GNP
billion
for
it
the
ten
next
will
be
estimates
make
to
or
making a
for the period
consideration
under
necessary
GNP)
while
billion
averaged $33.8
of
GNP.2
In
14.1%
period
National
of
We
years.
shall start with $260 billion as the
GNP
to
increase
for
main
will
in
pro¬
capital
to
requirements,
by
Column
3.
summarized
The
is
It
GNP
approximately
portion
as
1950.
that
expect
argument
against
affect the result.
may
It is
as
very
returns
isting
each
for
capital must
year in
order
and
wear
of
the
be
obsolescence.
view
In
in
the
the
of
United
railroad
States
strikes
Canaua,
ana
and the bullish tips that are
put
out
people
get
to
being
buy
to
i'odv«s
i
an%
it
is
believed
provides the
ital consumption
,
_
.
.
cap¬
for the next ten
,.
.
,
iLn c1
hu
h,
of
.
$18.8
four
and
years
will
continue
capital
I Survey
*950,
Current
National
averages
averages
to
pre-
»
of
Income
calculated
bv
by
bc
Business,
Review
the
the
for
the
Decade
Requirements
Roger
W.
figures
1951-60
(8)
Gross Nat'l
Product
<
$ Billions)
GPDI of GNP
(6)
f-(7) X 100
(Percent.)
16.4
16.7
€-3
26.5
10.3
680.0
16.9
67
2< .2
10.41
697.2
17.2
68
27.9
10.51
714.7
17.5
69
28.6
10.62
732.4
17.7
29.3
10.72
750.5
18.1
30.0
48.1
309.7
15.5
49.1
317.3
15.5
260
42.2
15.8-
43.2
273.7
15.8
4*. i
28U.6
1 o.i
45.1
287.7
15.7
45.1
2950
15.6
47.0
302.7
15.6
71
10.83
768.8
18.3
72
30.8
10.94
787.5
18.7
31.5
11.05
50.2
806.4
325.0
15.4
18.9
32.3
51.2
332.8
15.4
176.4
289.9
466.6
17.6
29.0
46.6
in
War
1916
the
63.0 J
declined
around
44.00
in
1949
and
June,
are
and
war
the
four
last
we
to
of
years.
able to avoid
a
maintain
existing
ital
from
from
and
major
tnroughout
decade we will
an
structure.
come
the
prosperity
approaching
have need for
expanding
This
cap¬
will
need
growing laoor force
a
technological advance¬
capital accietion snould
ment. Net
be at the average amount of $17.6
billion per year.
The addition of
an
average
of $29.0 billion for
capital consumption gives an av¬
erage
required
GPDI
cf
$46.6
bilnon, which is 15.6% of tne esti¬
GNP
mated
the
for
This
period.
percentage is slightly higher than
the
corresponding
for
percentage
the four years 1946-49.
will
It
capital
well if the needs for
be
formation
are
recognized
by those who have the responsi¬
bility
tor
determining
public
policy
tnis
that
so
country
proceed on its way toward
may
higher
standards.
have
lems such
as
traffic
war
peacetime
increase
Following
are
rail
on
for
reasons
op¬
securities:
railroads
what
&
abandon
to
the
New
Hartford
York,
for
Being
Bearish factors
The
(1)
have
usually
from
trouble.
could
be
the
justment
transconti¬
true
so
difficuhv
(2)
many
debts
which
Even
long
railroads
roads
on
beds,
depression
their
other
help
that
were
last
cut
reduced
should
organized
especially
Kbrean
the
bonded
earnings
fair read¬
a
made.
As
earnings
is
be
are
war,
abnormally
withdrawn
over,
a
wage
when
after
earnings
1
(2) Railroads have (subject to
disputed government rate conces¬
more
more
not
re¬
able to spend hug?
bridges,
their
equipment,
road¬
ma¬
airplanes,
trucks
buses
more
than
and
before.
ever
Therefore, railroads normally
subject
to
tremendous
are
competi¬
tion
during peacetime. This will
certainly be true as a settlement
gradually made with Russia.
is
they have
such
a
larg"
basic investment, In other wor-'s
cause
have
more
or
less, a monopoly
during wartime; but aftrr a;war
is over, they are confronted with
stocks.
the
were
improving
railroads
wages
fact, the railroad
given during the
again decline.
charges,
chine shops, etc.
the
war
when
be
of
source
sions)
During the
and
as
lasts.
when the
a
the
earn¬
railroad
war,
could
of
increases
the
been
If
a
strong
railroad
peacetime
railroad
reduced
declined after
the
the
in
"skimmed
the
great
Bearish
of
in
are
unions
good, cannot
particularly
Haven
are:
oldest
serving such industrial centers a*
Pittsburgh, Detroit and Chkr^
but
New
Company is
doing.
Reasons
matter
nental lines. This should
have
much
Railroad
(1) Railroads have always pros¬
during wartime. This ap¬
plies not only to the railroads
pered
uses.
been
unprofit¬
able
mileage and to streamline
their organizations. This tatter is
especially
being
illusira.ed
by
able
ings and have
Reasons for Being Bullish
rails,
that
Tne rail¬
same
population.
The
(5)
cream"
height during World War II.
equipment
traffic
in
stocks
selling for almost
they did at their
the
and
roads should also benefit from the
unions
'
com¬
uses
locomotives
War
now
prob¬
industr al
panies will have. This is because
These
as
selling«
the railroads
war
many
field.
are
asset
reconversion
no
labor
much
the
cases
(4) After the
will
low
Korean
some
the market.
tinued around
the
In
the price at which they are
on
now
Babson
until
stock.
value of railroad stocks is 10 times
con¬
(3) Most railroads have little to
fear from excess-profits taxes be¬
15.6
the
If
Index has gone up to nearly 65.00.
means
that
these
railroau
sums
S
in
This
be
266.8
8
15.6% of GNP, which is slightly
higher than the similar percentage
broke out. Since then the Railroad
Section,
Percent^^e
MU'S)
(5 Billions)
World
II
to
July
Annual Gross
Investment
close
of
This
author.
author.
<7)
the
about
as
the P^Portion of
as
vest ment.
these
aJe
oil
averaged
,
Slbnn9rrflAgures
^ A
billion. CCA as reported by
nR
as
Index of Rail¬
Column
estimates
rail-
road Stocks
in4%
that
figure.
n
A.
•fr<?m sludy °f.rates of de"
conservative
will
the
cuss
"fd
lo be replaced each
because of wear and obso-
a
I
this week dis¬
}het industr.V and type of capita,
5
Column
by
Babson, in discussing outlook for railroad stocks, lists both
factors, and concludes conservative investor
should not be tempted to buy railroad stocks at this time. Says
stre.t railway stocks may profit by war, and, slice they ha/e
not yet ad/anced along with railroad securities, they may prove,
good speculation in some cases.
Proportion of existing capital that
is
eventually.
It
is
indicated
that for the ensuing decade GPDI
should
comprise
approximately
Mr.
up
Pieciaaon charged in several
dimin¬
of
bullish and bearish
glven per cent stated as the exac
year
law
In Railroad Stocks
Hen
again it is difficult to defend
the
By ROGER W. BAUSON
ex¬
make
action' of
ishing returns will be encountered
Bullish and Beaiiih Factors
replaced
to
01
living
railroad
4%
by an increment
size, but if the present
population increase per¬
rate
pro¬
rate
same
stocks,
that
646.4
the
considered
663.1
"Actual.
$43.1
affected
degree
similar comparison
prewar
10.2
(1951-60)
GPDi
amount is likeiy
10.1
1
highest
be
this
sists
by the De¬
lowing ten-year period it will be
630
25.8
the
Commcere,
inclusive
averaged
n™
Consumption Private Domestic
(S Billions)
of
During
1946-49
to rise thro"ghout the next dec ade
for the
price
(6)
Annual
than
1951* is
billion for 1948.
timism
Creation
less
for
GPDI reported
partment
ual
gra
^amsln® ™Ea?^a"fth°i
eQulPment created at the
65
iotal
Average
slightly
actual
y^31* pri(:? *eveLwas substantiaBy
*9wer
than
the
present
one.
Heace the net addition to the
capital structure of our country
*s likely to be less than tne dif-
64
73
"requirement
capital expansion is that either
increasing or diminishing returns
10.
i
mated
£eeAs,
f
^ca<?^-, 1951-60.
But the Department of Commerce
Bgures ,or, SL
are
ei.y <°*!?e
$11 000
over
year of the next
yearly estimates
rise from $42.2 billion in 1951 to
$51.2 billion in 1960.
The esti¬
jecting GNP at the
!.?®war
worker will in-
per
slightly
Capital
Capita!
net
the
GPDI
yea*js ™.as sufficient to meet the
intTease
(4)
Requirements
that
during
AT the re-sults of |?een incr£asing rapidly in the last
Capital
(3)
averaged $17.9
which
would
the Department of Commerce has
~
Force
year,
indicate
to
dustries
of
unchang-
ing price level
per
so
increase
have meaning in the real
must be based upon an
Private
for
Thursday, September 7, 1950
.
will
of
These
lescence. The pattern varies with
•
the
unit
required for each
logical
be-
chances
^mmon
other
id
the
capital involved
Drogrp(;s
that
ran
tyth
tbp
Gross
CCA
over
on
and
present time
J
inri.Pfl(;p
bp
periods
"depressions,
Department
nient of capital and to the
dur-
the estimates
at
decade.
years owing to the annual incre-
in-
nmmmt i
arrive
.
•
worker
the
include
not
depletion.
By
adding
the
estimates
of
capital consumption to those for
capital accretion requirements we
ference between GPDI and CCA
during the past four years,
The .amount 01 CC/i nas been
increasing during the past several
a
year
has
labor
63*
70
•_
then
year
capital by the
th<*
Capital Required
l
increase
progress
SUCCeSSfully lf °p^r2°rUntp0f
accompanying table.
to
billion
requiredpner
CaDital
11c
if
our
Technological
order
will enable
successfully
is
per
$10
of
measure
cold war is to
continue,
imperative that we replace
and
improve our capital equipment.
The existence of a
high
to
net
million
there
the
productive
force
one
rate of increase must
is
to avoid
labor
our
by
a
by
even
defer
a
large demand for
investment to the postwar period.
us
us
Uke.
and
If
force
$10,000, wnich
figure of $630 billion
capital requirements in 1950.
for
of
adequate replacement in many fields of investment
it
labor
gives
not
would
war
a
expansion,
stagnation in the investment goods
industries.
the
the
does
mineral
of
depreciation
supports
reasonable figure.
The
requirements at present
be obtained by multiplying
as
ieve]
may lead to
formation
De-
unemployment
are
hand in hand with
go
Observation
of
by
that CCA
value
understated because much of the
included was com- unlikely that proportional
P**ted on the basis of prewar costs
2 Ibid.
rafher than postwar costs. This
depreciation will not represent
rePlacenient costs since the pre-
force
(;bis sublet nets confused bv nrice
A period of inflation
capital
labor
capital
er
suts of the failure of
any of these
prevent
of
vancement.
higher
employ all laborers. Fourth,
last, there will be gradual
technological progiess.
The
re-
reaching and,
the
price level and
technological
advance-
complicated and expensive equipment vvhich has brought about a
and
likely
stage
this
of
present
There has
so
to
nation
member
the
jng
ap-
employment
the
in
frenzted
at
accre¬
required
the
same period.*
The excess of
apparent
Commerce, Gross Private Do-
billion
approximately $10,000 worth
capital is required to employ
0f
no
that the proportion
national income spent for
war
the
According to the United States
Chamber of Commerce an avei age
each
con¬
added
Product
to
Commerce,
GPDI
year.
of the labor force.
un-
there will be
enlargement
oi
based upon a
must be made if capital formation
is to keep pace with expansion
purpose
the
billion
$10
seem
amount
First, the value
will
Second
military ends will
stant.
Third, there
that
The
assump-
of
accretion
0f
is
progress
place of the annual net
million
per
The net accretion
$16.4 billion per
to $18.9 billion per annum
present actual labor force of 63
millions and an increase of one
If
be-
haved in the last four years.
following
of
part of the war babies
entering the labor force.
Column (1) in the Table shows
the estimates of the labor force
be
for the next decade
to
Domestic Investment (hereafter
tailed GPDI) averaged $33.8 billi°n for the four years ,1946-49
inclusive and Capital Consumption Allowances (hereafter called
CCA) averaged $15.9 billion for
This
years.
first
will
may
The estimate
made
ten
1960.
from
ascend
1950
tion
of
throughout
the
force
succeeding
$806.4
will
in
decade.
According
in-
logical
time
may
continue
of
amount of increase may be greater
in the last part of the period when
sort
many
will
crease
amount
labor
needs
the
annual
and of techno-
lieved
of
this
requirements
$630
billion
*or.ce- The average annual requirement iS $17.7 billion for tne
believe
to
reason
the
emphasis
Eckard
good
expanding
ress.
W.
an
is
will
force
capital require¬
These
in
In recent years our labor force
been expanding by
approxin.ately
one
million
per
year,
di-
labor
ments per worker will rise.
annum
has
be
effects
E.
in
the
necessary after
sidered is from
billion.
The purpose
that
billion in
will be approximate
the
Column 3
capital
grow and that the
(1) value of dollar will
assumptions:
on
unchanged; (2) there will be
total
require¬
ments after taking into consider¬
College of Business Administration, University of Arkansas
remain
the
.
.
no
watered
(3)
merce
When
the' Interstate
Commission,
railroads
had
transportation.
no
a
was
Com¬
formed
monopoly
There
private automobiles,
then
no
of
were
trucks^
Volun..
172
buses
no
and
highw^y^
very
of
a
Number 4S40
existed
Hence,
pc jr.
railroad
.
The Commercial and Financial Chronicle
rates
the
groups,
were
regulation
and service
From
was
Washington
neces.^y. Today, this regulation
has
tu...ed
concern
the
nuisance
a
Commissions,
and
S.u.e,
both
continue
order to nold their
obliged
able
an«
a
costly
th_
now
Ahead
in
office.
an
In addi¬
manner.
Federal
It
aRer Labor Day feeling when there comes
over and you've got to settle
the feeling which the kids have when they have
to school, but official and semi-official Washington
is
Government
down to work, or
to
back
go
this week
suing the railroads for "over¬
charging
and
(4)
'x..ese
competitors
railroace, such
trucks,
Goverui
for
ent
wiii
h
obliged
taxes.
l.
ust pay the cost
of build¬
anu
maintaining
o
ed
the
-r;
terminal
e-third
if
railrou.
up
uy
or
mileage
should
is
unprofitable
present
abandoned.
railroads want
m
a
be
the
Yet,
to
take
liitle useless track, the ship¬
t.,e labor unions and the
a
pers,
politicia
s
Another
fact
that
Carlisle
Bargeron
combine to prevent it.
each
generation
of
young
people will be less willing to
tronize
railroads than
tne
is
considered
be
to
pa¬
we
are
Speculation
a
factors
mads
vestor
avoid
to
in¬
being tempted to
this time.
Some railroads may increase their
dividends
temporarily, but very
few which now pay no dividends
will go on a. dividend basis. They
buy
iioad
ra
will
stocks at
the additional money for
neea
It
smart
to have bought railroad stocks im¬
mediately when our troops first
landed in Korea; but to buy them
today for investment will be risky.
buying
would have
Probably
expect
something must be done.
uncommon
etc.
downward
On Cap¬
at all to hear
the exclama¬
confined
to
supply
and
to Korea, that the Chinese are
keep up a seemingly inexhaust-
of
troops,
is
increasing,
and
throughout the government there runs a feelir- rr r»jspust for the bungling at the top that
rerr
ui
ains,
no
ceeded
in
superior,
Yet with the situation
ecu
has
try lies in ridding
been
upon
may
His opponents seek to justify their,
the billions we have spent,
all
in the terrible
would not be
sure,
mess
we
are
Alger Hiss,
in
the
leadership
vancement
of
the
of the National Association for the Ad¬
Colored Race has joined the unconscionable
posed to the so-called Federal Fair Employment Practices Com¬
mission, a device to hound employers into employing whomever
a
government agency decrees. The fact is that his opposition
to this measure has never stood in its way.
A Southern led
fire
filibuster
is
what
always checks
it and
is opposed
Taft
association is simply joining
It is also a fact that Taft gave
the Negroes an FEPC, in effect, in a provision of the Taft-Hartley
Act which is designed to prevent racial discrimination in unions.
No,
enemy.
with
the leadership
the other irrational
of this
groups.
Notwithstanding the prating of Bill Green, Phil Murray, Walter
et al about the need for a Federal FEPC to prevent
Reuther
racial
Washington completely of the crew that
many tragic recent years, there are
discrimination
in
employment,
the
unions
in
these stocks to go down
cause
rapidly. Intrinsi¬
cally, stocks go uo only when
there are more buyers than sell¬
ers; and go down when there are
more sellers than
buyers. Hence,
price just
offer to sell
nor a
solicitation of
an
offer to hay any of these
offer is made only by the Prospectus.
$40,000,000
■
.
.
.
*
'
*
^
,
.
railroad
stocks
themselves with
its;
when
but
these
paper
be
may
very
at
it
once,
for any to
Twenty Year
%
Sinking
%
Fund
2 Debentures Due 1970
may
find
•
.
Dated September 1,
Interest
I
'
Due September /, 1970
I960
payable March 1 and September 1 in New York City
and in Atlanta, Georgia
good paper prof¬
try
they
into
profits
to
turn
cash,
it
If all spec¬
difficult.
should
ulators
Plantation Pipe Line Company
as
purchasers of these cheap specu¬
lative
attempt to do this
would
cash in
Price
99%%
and Accrued Interest
impossible
be
on
their profits.
>What About Street Railway
Stocks?
i
,
Street
railways and buses should
profit from
the
any war,
leads to
wrr
especially if
the rationing of
gasoline, tires, etc.,
or
to the cur¬
Copies of the Prospectus may be obtained from the undersigned only in States
which the undersigned is legally authorized to act as a dealer in securities
and in which such Prospectus may be legally distributed.
tailment of the sale of new auto^
Street railway securities
mobiles.
have not
have
yet gone up in price as
railroad
in-some
selling
securities;
instances, Uhey
for
less 'than
sold for many years.
market
bonds
in
are
they
fact,
are
yet
MORGAN STANLEY & CO.
now
have
Although the
(js thin for street railway
securities,
have been
major racial discriminationists in the past.
governing it these
Debentures. The
certain
income
worthy of consideration.
September 7, I960.
to the
filibuster, which should make him a friend of the NACR, not an
pretty obvious that the salvation of this
This announcement is neither an
in today.
only
but
in
can
Stalin today,
would never have saddled upon the American
go
price. Furthermore, they h ve
such a big leverage when selling
at low prices, they could double
or
per' ans triple in price
How¬
ever, after the war is over and
earnings decrease, these very facts
the
fight that is being made against Taft in Ohio, because he is op¬
out,
price due purely to
speculation on the part of. small
specula ors. There are only a rel¬
atively few years of these stocks
outstanding; and a little increased
buying could easily send h.em up
to
,
Secretary of War Woodring, and finally suc¬
Woodring
an
not
II
Yet
only to learn to his intense
chagrin that he was not to succeed him. Johnson is an opportunist
by l-aiure. Truman must have known that when he brought him
in.
But it is certainly asking a lot of American boys to go off
to defend Korea under the bickering and backbiting and-poison
spreadi g that is taking place in the high'councils in Washington.
forcing
1939
a Lee Pressman or a John Abt, men who
influential in the events that led up to World
the amazing deluge that followed.
They were
among the architects of the disaster that seems to have been
erected for us, and now their Communist machinations are being
more fully
revealed.
people
small part of his tenure as Assistant
a
we
Taft, for
that he is getting no more than
though,
Johnson devote i
der his
in
Italy.
vailed
taking some of the waste out of
military spending should be charged with the Korean
fact
here
if it does,
situation.
the
came
away
fiasco, that the official answer to that fiasco should be to spend
additional billions.
The military and Johnson, of course, could
not have been prepared to defend Korea because no defense of
Korea was anticipated. It is difficult to see where the small sav¬
ings which he effected in defense spending have anything to do
with
path being taken.
that with
are
War
the drunken
he
billidns has been based upon, the premise that it exists, and
all of our billions would, not keep Stalin out of France
On this I find no disagreement anywhere.
Taft, for sure, never contributed to; he was never helpful in
bringing about this situation. As one who has followed his record
in Washington closely, I am convinced that had his counsel pre¬
doing in Korea
are we
who professed to be
man
day
charge of his unhelpfulness on the fact he has tried occasionally
1o cut down on the pouring out of billions to Europe. The plain
seems
were
a
the
in
more
up
it
The fear that the fighting is not to
railroad
which
I
dividend,
a
them,
from
been
cheap
some
stocks,
commoi
never
equipment,
more
probably
of
Secretary of War in the late 30's and early 40's to building
and other
conservative
,a
both
that
his due.
as
not¬
brought about our present predicament.
I have some sympathy for Louis Johnson in the attacks on
him for having been economy-minded. It is an irony of the times
The
Railroads
that
has
older people.
A study of the above
to
on
"What in the hell
prepared
jiv,-*
mu¬
of
acute
gang,
present, to which he was a contributor. Indeed, at times he has
seemed to be almost the lone voice in the wilderness against the
according to the military, could take over Western Europe within
a
few weeks. For one, I have never accepted the statements of
Russia's tremendous physical strength but our policy of throwing
be
they
built by the Federal
so
Washington
Acheson
facts
anyway?"
nave
as
between
irrefutable facts, their conduct, to my mind,
known,
trajtorousness.
on
general feeling that never in all our history
1 ave we faced such a serious situation and it
tion:
the
vS.
(5)
when
maintain
to
uvernments,
nicipal
and
c..e^
become
of the
itol Hill and at the Pentagon there is a rather
is not
own
In
fighting among themselves
feuding with the State De¬
bitterness
has
hold
to
certain that
while their exnen^ve
are
St..
or
airplanes,
..it
ro...
their
terminals.
and
The
are
the other
case
no
railroads
on
roadbe...,
use
the
tends
their propor.ion in
pay
are
are
withstanding Truman's statements that he in¬
tne
T.ie railroads
hand,
ing
and
cost
to
by
they
Johnson
and
have
tneir
Federal
by the States,
etc.,
built
then
partment.
tne automooiies.
as
uses,
j
"roadbew^
the
or
is in the dumps.
military
War II business.
on
of the News
the
be
may
face
"Jumping Joe" Ferguson who, with the support of these
hopes to knock off Bob Taft, whose sanity has stood out
in Washington through this crazy period as a shining beacon,
was back
in Washington the other day asking for advice.
And
Truman told him to go forth and campaign against Taft on the
grounds he has "not made a single contribution towards the solu¬
tion of our grave foreign problems."
The underlying theme in
this sort of an attack, of course, is that our problems have been
so grave that naturally mistakes were made but Taft never sought
to assist in solving them.
It strikes me that this is an indictment that Taft could accept
with enthusiasm. There is not one single muddle made by the
the realisation that vacation time is
unreason¬
are
groups,
By ('ART, 1ST,F BARG^RON
In
jobs, they feel
to
regulate
7
racial and labor, the latter led by power thirsty men,
turning Heaven and earth to keep it in power. In the
who
borders
Federal
continue
to
the railroads in both
tion,
to all
v.—railroads, shippers and
I.e. Yet, the various Rail¬
pu
road
into
(899)
airplanes. Such
no
then
as
.
.
in
the
8.
(900)
The Commercial and Financial Chronicle
Financial
tation
Reporting
Chronicle,"
Standard
&
Poor's
"Stock
Guide,"
Fitch
"Stock
Record," and Moody's "Bond Rec¬
which
covers
the
Quoting Markets in
Over-the-Coiinter Securities
ord,"
the
President, National Quotation Bureau, Inc.
well
as
as
Further,
wishes
to
morning,
the Quoted
Counter
"The
Compilation,
Availability of
and
Markets in Over-the-
Se¬
tail
or
re¬
tions
which
-
net—commissions
We
Louis
*.A
12th
security
Walker
some
on
of
17
Markets
the
under
National
the
given
series
a
and
Securities
on
lecture
in
of
seven
Aug.
4,
the
on
and
As¬
Dealers.
hunthe
1950
New
their
York
operation
York Se¬
sponsored jointly by the New
curities Industry and
the University
Vermont's
Department of Commerce
of
&
Economics.
and
wire
from
105
dealers,
specialists
in
who are selected by
Quotation Committee of the
the
field,
National Association of Securities
Dealers.
We
eleven
of
the
a
their
to
In
Natural Gas Co.
cities, the
and
dis¬
Association of Securities
Dealers.
Boston
is
where
of
number
of
a
few
quotations
are
one
by
that
newspapers
n
Stix & Go
interesting
subject.
icient
copies
SECURITIES
STREET
too
a
his
time,
ind
them
study
our
St. Louis 1,Mo.
to
me
MEMBERS
MIDWEST STOCK EXCHANGE
will
/hich
gives
hat I
GARFIELD
TELETYPE:
0514
SL-80
have
in
the
the
you
urities
the
.he-counter
securities
are
available in most of the
Established
Chicago
New
Exchange
Curb
Ex'Lange
E-.cha
Board
g
ol
other
N.
Y. Cotton
Exchange Btdg.
NEW YORK 4, N. Y.
'
DETROIT
GENEVA.
are
se-
office
one-man
in
Berkeley,
or
be
confined
to
Each
to
the
subscriber
receive
the
Daily
and
is
complying
regulations.
Of
must
be
of
exception
Stock
all
the
highest.
of
the
Exchange
subscribers
New
member
desiring
their
quotations
required to fill out
to
published
appli¬
our
cation form giving the past ten
years' business connections of the
principal owners of the firm and
news¬
over-
readily
their
preferably from
members
of
the
New
York Stock Exchange, their
banking connections, and a state¬
their
to
as
net
requirement
partnership
imum
net
that
to
they
us
a
they have
interest
There
a
—r
correct
In the
of
issues
Daily
average
an
security
in
covered
the
Service.
to
in
Gathering
different
the
quotations.
New
methods
gathering
<-2127
in
price
a
are
been
change in the market
time
of
closing.
a
up
Seventy-
telephone
telegraph. The rest
by mail.
All quo¬
or
received
are
tations
that
symboled
the
are
not
current
accordingly.
out-of-town
are
Many
subscribers
of
mail
their
listings in each night and
bring these quotations up to date
the following day by telephone or
teletype.
As
an
example,
firm
one
each
in
day
may
take
which
lists
we
Boston
under
260
securities.
Of this group, there are probably
100 or 150 that in a normal market
won't
change
day,
so
has
in price from day
that the only time the
to
spend
the
on
tele¬
or teletype to bring the list
to date is to correct the more
active
This
issues
that
change
them
saves
daily.
considerable
In the two large cities,
York
and
Chicago, the
Continued
quo¬
on
page
30
Dealer-Broker Investment
Recommendations and Literature
It is understood that the
send
interested
firms mentioned will be pleased
parties the following literature:
Investment
Facts
About
Com¬
Stocks and Cash Dividends—
mon
Brochure
tabulating 285
Douglas
land
& Lomason,
Refrigeration.
1
Cope-
and
common
stocks that have paid a cash divi¬
dend in every year for 20 to 102
Brief
years—New York Stock Exchange,
Pierce
New York 5, N.
Building, Dallas 1, Tex.
Y.
Natural
Gas
News—Recent
de¬
velopments in various companies
in the industry—Scherck, Richter
Company, Landreth Building, St.
Louis 2, Mo.
Mississippi
River
Fuel
memorandum
&
Co.,
Corp.—
Rauscher,
—
Mercantile
Bank
Missouri-Kansas-Texas
—
Bulle¬
tin—Ira
way,
Haupt & Co., Ill Broad¬
New York 6, N. Y.
St. Louis, San Francisco—Bulle¬
tin
Vilas
&
Hickey, 49 Wall
Over-the-Counter Index—Book¬
Street, New York 5, N. Y.
let showing an
up-to-date com¬
Standard Railway & Equipment
parison between the thirty listed
industrial stocks used in the Dow- Manufacturing Co.—Memorandum
—
Jones
Averages
the
and
over-the-counter
stocks used
in
thirty-
industrial
—F.
La
S.
Yantis
& Co., 135 South
Street, Chicago 3, 111.
Salle
the
National Quo¬
Thompson Products—Memoran¬
Averages, both as
Hammill & Co.,
to yield and market performance dum—Shearson,
14 Wall Steet, New York 5, N. Y.
over
an
eleven-year period—Na¬
tional Quotation Bureau, Inc., 46
U. S. Thermo Control—Analysis
Front Street, New York 4, N. Y.
—Raymond
&
Co.,
148
State
Street, Boston 9. Mass.
Railroad
Income
Bonds—Dis¬
tation
Bureau
cussion of market action in 1950—
Goodbody
&
New
York
6, N. Y.
Birtman
Electric
Co.,
♦
115
*
Color
available
Co., 37 Wall
5,
is
Y.
N.
circular
a
Works—Sum¬
Win.'isld Scott With
on
American Securities
Television.
Blair
Chemical
and analysis—Hornblower &
Co.—Circular
&
Street, New York
Victor
mary
Weeks, 40 Wall Street, New York
5, N.Y.
*
—Bond, Richman
Also
Broadway,
Holdings
Corp.
randum—Davies
&
—
Memo¬
Mejia,
Russ
Building, San Francisco 4, Calif.
on
Central Vermont Public Service
Co.—Analysis—Ira
Ill
Haupt
Co.,
&
Broadway, New York 6, N. Y.
Also
available
is
a
bulletin
on
Emerson
Electric
Co.
—
Brief
memorandum—Auchincloss,
Par¬
ker
New
&
Redpath,
York
52
Wall
Street,
Winfield
5, N. Y.
ready
are
listing,
a
General
Fuse
Company—Anal¬
ysis—J. May & Co., Inc., 32 Broad¬
way,
position
they
Lea
Winfield
Aetna
are
many
must
therefore
'liter at lite'
a
other standards
live
up
included
to.
in
I
the
booklet entitled "Quo¬
Corporation, 111
Broadway, New York 6, N. Y.
Also available
ters
are
Crampton,
data
A.
Scott
Scott
has
become
associated with American Securi¬
ties
Corporation, 25 Broad
New
Fabric s—Information—
Securities
A.
Street,
New York 4, N. Y.
real and genuine
the
subscriber
have
i 1 V
has
phone
these
of
quota¬
any
there
per cent of all out-of-town
houses send in their quotations by
up
Several
or
which
five
firm
Quotations
in
in
the
to
Methods Used
used
cancel
York
the firm's
indicate.
.1 •
i J
and
tions
are
the telephone
a
as
willing to buy or to sell at
prices given; or, where they
that
PITTSBURGH
14 l
us on
Central States Electric.
min¬
a
of
$5,000 and
$25,000.
Also,
of
do not show
Liquid
t
obliged to call
a
part of the contract, they agree
that at the time they submit their
the
■
subscribers have the right and
worth.
is
show
must
worth
corporation
Exports—Imports—Futures
Dlgfcy
approx¬
1:00
Chicago, ten messengers
call on 120 firms
during the same
period. In both these cities, the
traders.
They also are re¬
quired to furnish two references,
principal
SUGAR
SWITZERLAND
and
700
and
a.m.
In
p.m.
using the services
state
quotations
—
Monthly
Service.
these
services
re¬
-
/
CEICAGO
must
the
firms,
STREET'
Refined
there.
out
some
the
hun¬
have
any
York
and
—
to
several
Mass.,
wishes
With
,w
Raw
and
small
service
Trade
Exchanges
be
year,
to
necessity, the responsibility and
integrity of the firms listed in the
NEW YORK 5, N. Y.
Orleans Cotton Exchange
And
different
will
which
and
I
with
Exchange
Cotton
the
Another
WALL
in
subscribers
produce
ment
99
25,000
a
order.
Service
Commission
at
LAMB0RN & CO., Inc.
Stock
market
that
to
who
H. Hentz & Co.
Members
of
so
Service is required to sign a con¬
tract verifying that he is registered
with the Securities and
Exchange
communities in the country. Many
financial publications, such as the
"Bank and Quotation Record" of
1856
best
the
a
have
covered
by the
that quotations on
papers,
be in
security dealers.
information
of
on
York
business day, the
issues
stock
course
five
literature
number
New
imately 2,000 bond issues.
an
said, this service
reports professional or wholesale
quotations.
Therefore, its distri¬
mentioned.
from
vidual
security,
position
a
would
hundred
As
Contrary to general belief, it is
evident
sell
or
gave
Calif.
but I know you will
helpful in completing
of this subject. This
find
customer
buy
Springfield,
to
read
the
average
re¬
security dealers,
a
execute
to'the
fnolding it up) will be the report
/ou
to
with
their
numerous
branches throughout the country,
on
report,
that
11:30
mes¬
messengers
on
and
Beane,
figures
long for
bids
bids
offerings.
The
list
covers practically
every firm that
does a general security business,
all the way from firms similar to
Merrill Lynch, Pierce, Fenner &
This report gives
which would
you.
actual
;ou
ake
509 OLIVE
this
These
to
bution
of
published
are
their members
an
firms between
by
up
call
making
were
were
information
day
to
On
the
for reference and to advertise their
nclude with the literature I have
irought for
INVESTMENT
order
wants
Mr. Soule supplied me with suf-
Commodity
from
making
they
branches offices
the over - the - counter
quotations, their circulation and
this
York
gather
eighteen hundred firms and their
carrying
Ha
other
New
to
a
staff
of
15
people.
present payroll numbers 300.
Today there are approximately
Recently,
Mr.
George
Soule,
Secretary of the Quotations Com¬
mittee, District 13 NASD, issued
a
detailed
report" showing
the
Lynchburg, Va.
York
consolida¬
as a
Our
group
Scott, Horner Ost
Mason, Inc.
New
organization
were
when
To
Committee of the
gathered and distributed
of local dealers.
—*-
that
dred
quo¬
National
exceptions
Kch., Fred. & Pot. D. 0.
York
Quota¬
quired
newspaper
gathered
are
trict Quotation
Dan River Mills
New
National
which
distributed
Daily
Chicago and most other prin¬
cipal
were
one
subscribers
newspaper
uted
York
Our company started with about
Press and Associ¬
who, in turn, dis¬
large proportion of them
Press,
tribute
day.
picked
Thirty-five
New
material
approximately 22,000 listings with
quotations on some 5,000 indi¬
traded
This is the main
venient form of reference and
to
plain white sheets
in San Francisco
in
are
1950
offerings
compiled and put in a con¬
to find
news¬
the
published
price at
be
can
Our
they
on
the dealer
to
on
principal
also the United
ated
them
pass
tributed to the newspapers by and
under the supervision of the Dis¬
Alabama-T ennessee
TELEPHONE:
and
in the New York District,
papers
tations
Trading Mar If eta
LV
which
in¬
uiroughout the country.
^
iiiiiiiiiiiiiiiiiiimiiiiiiiiiiititmimi'
Tele.
profits
or
green
the
the
was
of
Exchange is open, or, if it
should happen to be a holiday in
New York and the Chicago and
San
Francisco
Exchanges
are
open, they are published in their
own local
community and distrib¬
or
reports covering the securities for
gather these quotations by
their
direction
Securities
services
consists
sheets, is published in
Stock
by Mr. Arthur Elliot in 1911.
The
object of both of these
most
which
combined three sections will carry
represent
of
the
of
These
formed in 1913
offers.
telephone
*
dent, compiles
Quotations
the
wholesale
Monthly Services orig¬
inated by Roger Babson in 1904.
The Daily Service was originated
cluded.
*,
reau, of which
I
am
Presi¬
of
for
the
tion of the
The over-the-
is,
second
Eastern
quotations.
Bureau.
was
the
part, merchandising in character. security dealers
daily and monthly
National;
Quotation Bu-
supervision
tion
Hence these markets for publica¬
tion are on a retail basis—i. e.,
.
the
sociation
market
of
security
a
function
guide to
a
Professional
subject, gathering and
between dealers.
(indicated
by
the
bought (indicated by
at the time of each
or
counter
news-
the
sold
day's compilation.
quota-
at
as
the
the
—
is pub¬
York; the Western
New
These services
or
covers
discuss
now
our
which
not
the "askeds")
talk
paper
will
quotations
These
transactions.
intended
each
quotations.
and
professional
publi¬
quotations do
actual
are
for
day
distribution.
asked
"bids")
quotations.
first of the
and
been
and
will
bid
and
the
to
approximate
range
within
which these securities could have
wholesale
I
cation
given
in
Chicago;
are
banker
sections
white
market
Quotations
I
the
into two parts,
retail quota¬
tions
retail
Wholesale
part of
are
each
newspapers
They
divided
be
securities
represent
curities," has
to
dred
on
trouble
a
of
local
about
distribution
discuss
to
are
lished
every-
just
question of
adequate and accurate quotation services.
this
his
three
Section,
which
consists
yellow and pink sheets,
Section,
bit
least
in
and
obtain
can
tne
This
reliability of quotation sources and use of caution in their
compilation and distribution. Sees investor well protected by
Distribution
bond
or
tations
senger.
investor who
broker.
and
we
a
Standards,"
the
7/
Thursday, September
.
question fully.
The Daily Service is published
quotation
any
obtain
calling
by
Distinguishes between retail and wholesale or pro¬
fessional quotations, the latter being directed to exclusive use
of security dealers. Stresses need of ascertaining
authenticity
subject
ranges on
over-the-counter
fairly active over-the-counter
without
distribution.
The
active
issues.
stock
methods used in compilation and
over-the-
quotations and
more
any
Executive of leading quotation service describes sources for
obtaining market prices and "bids" and "offers" of over-the-
and
current
carry
counter
By LOUIS E. WALKER*
counter securities
"Commercial
.
.
on
Plywood
Win¬
City,
as
manager
ment, it is announced.
was
formerly
nicipal
of
municipal5 bond depart¬
Mr. Scott
manager of
Department
the Mu¬
for- the Title
Inc., Guarantee & Trust Co.
Number 4940
Volume 172
.
.
York
Bar, and "Commercial Fi¬
nancing and Factoring" by Walter
S. Seidman, partner of Jones & Co.
In addition, the program will
offer several, courses dealing with
mercantile and
retail credits
and
collections, and business financial
management.
courses
rotta,
Instructors for these
include
will
Credit
Frank
Executive
of
Social
1950
the
of
Safety
mond
Security
Act—Prentice-Hall, Inc.,
70 Fifth Avenue, New York
11,
N.
Y.—Paper—Part of PrenticeHall's "Social Security Service"—
Special
Rayon
from
rates
subscription
Credit
publisher.
How to Run
J.
Lasser—McGraw-Hill Book
K.
Inc.,
Co.,
Small Business—
a
New York
Modern
Reports
Corporate
will
meet
Wednesday
on
and
American
a
special
convenience,
this
for
cants
course
"Commercial
is
F a c t o r i n g,"
sponsored
a
place
City
or
19,
Office,
New
to
City
for
under
orders should be
School
of
Lexington Avenue,
10, N. Y., and mailed
17
York
before
Sept.
11:00
(Special
16, and
NEW
N.
G.
I.
Financial Chronicle)
with
has
La.—Evangel
become asso¬
Schweickhardt, Lan¬
dry & Co., Hibernia Building. Mr.
of
Bill
to The
ORLEANS.
Anagnosti
ciated
veterans'
payment of
the
ap¬
are
Anagnosti
Weil
of
Rights.
was
&
formerly
Co.
and
an
was
Malmin With Shearson
LOS
L.
ANGELES,
SAN
Malmin has become associated
with
618
Shearson,
South
Hammill
&
formerly
with
Fenner
Merrill
&
become associated with Francis I.
was
Lynch,
duPont
&
Street.
Mr.
Co.,
256
Montgomery
formerly
Fay, and prior
Eaton
Hooker
with
and
/Beane
FRANCISCO, Calif.—John
B. Eaton and John F. Miller have
Co.,
Spring Street. He
to The Financial Chronicle)
(Special
Calif.—Philip
&
was
thereto conducted his own invest¬
ment business.
Buckley Bros.
to
Employees and the
Doris—Prentice-Hall,
Inc., 70 Fifth Avenue, New York
11, N. Y.—SI0.00.
^
Prologue to Tomorrow—A His-
/
•
tory of the First Hundred Years in /.
the Life of the Pennsylvania Salt
Company—Robert
Leavitt—Pennsylvania Salt
Manufacturing
Keith
Philadelphia,
Co.,
Manufacturing
Pa.—Cloth.
1947
Ratio Analysis of Selected
of Manufacturers' Figures
Census
for
Industries and Industry Grouns
Research,
Business
of
—Bureau
of
685
Boston,
University
College
Business
Administration,
Boston
Avenue,
Commonwealth
Mass.—Paper—$2.75.
Suggestions for Sales Training
Meetings—Sales Personnel Divi¬
sion, United States Steel Corp.,
Seventh
Avenue,
Pittsburgh
436
30,
of copies
Pa.—(a limited number
available without cost).
and the State of
The—Chamber of
Commerce of the United States of
America, Washington 6, D. C.—
State
Welfare
Welfare,
Human
Paper—50c per copy (lower
on quantity orders).
-
price
College
N. Y, Oily
Announces Courses in
and Finance
Credit
Under supervision
of Oscar Lasin Credits
given by
Business
"Dur
don, series of courses
and Finance will be
specialists in field.
operation
The
of
and function
financial economy
will be emphasized in the special¬
ized program in Credits and Fi¬
nance
which opens for the 1950
Fall Term on Sept. 25 at the Eve¬
ning and Extension Division, City
College School of Business, New
the
American
Under the
supervision of Oscar
member of the New York
Stock
Exchange
and
Associate
Editor of "The Banking Law Jour¬
Lasdon,
Credits and Finance
program
will offer a practical
orientation in finance. Instructors
for the program have been chosen
from the ranks of qualified spe¬
cialists in the field who bring to
the
nal,"
the
classroom
a
knowledge and
keeping
minute
the
on
rich background
experience, thus
offiices
at
Credits
an
legal
reserve
ordinary
Finance
fits
to
cover
individuals and
Pilot Life operates
Rico
and
the
economic
Financial
KNOXVILLE
of
In-
BIRMING HAM
instructors Leon¬
MEMPHIS
ard
"Journal
"Principles
as
of
Lynch,
and MarCarton of Allen & Co. "The
Fischer
of
educated, and
older people have enjoyed happy retirement
insur¬
hospital bills,
incidental to injury
Payments to policyholders under group
years.
plans have helped many to meet
surgeon
fees, and other expenses
and illness.
i
■
•
*
■
•
serving the
Pilot
Life's investments have been
made in the South, thus
contributing to the rapid rise and further development
of this section.
is
Securities
Market"
Philip, p.
WershiL of
taught
the
Equitable
and commercial concerns in the
states.
Equitable will welcome opportunities to contribute to the further
development of the South by supplying capital funds to sound enterprises.
EQUITABLE
YORK
HARTFORD
CHATTANOOGA
GREENSBORO
NEW
ORLEANS
Securities
Brownlee O.
by
New
published for more than ten years by
Corporation featuring outstanding industrial
Merrill
Pierce, Fenner & Beane,
vyn
Through these funds, families have been held
1903.
together, homes left debt free, children
NEW
Corporation and former
vestm^htf' has
in thirteen Southern states, Puerto
serving 750,000
Southern
dif¬
NASHVILLE
Commerce."
Company's organization in
Having been organized in the South and
family groups.
This is another advertisement in the series
DALLAS
the
industrial,
policyholders and their families.
of
of
added
District of Columbia,
Investors
Editor
and beneficiaries since the
ance
policyholders
$57,005,167 has been paid out to
Over
people of the South, the greater percentage of
American
News
and later
group
pro¬
F. Howard, Secretary
General
It began as
life insurance company.
company
life and
phases of credit, each
course being taught by a special¬
ist in that particular field.
"In¬
vestment Banking" is taught by
the
passed
insurance in force.
hospitalization and surgical
plans, and recently extended its hospitalization bene¬
group
ferent
Leonard
with home
Organized in 1903, Pilot Life is North Carolina's old¬
Securities
includes courses in all
gram
1945,
many
trends and de¬
and
force since
Greensboro, North Carolina, this year
the half-billion-dollar mark in
velopments in the field.
The
in
PEOPLE"
is
up-to-the-
training
latest
insurance
PILOT LIFE INSURANCE COMPANY,
est
York.
of
Doubling its total
322 UNION STREET, NASHVILLE
3.
of
Two W;tV Francis duPont
(Special to The Financial Chronicle)
Stockholders.
Public—L.
officer
head
Anagnosti & Walker, Inc.
Pierce,
15.
Registration for all other
by the National
Anagnosti Willi
Schweickhardt, Landry
Sept. 18,
courses
I
E. N.
register
the Evening Session
College
All
tuition
Higher Education.
or money
22.
and
proved
ering all fees and made payable
Checks
ill take
from
address
1:30 p.m. on Sept.
from 6.00 to 8.30 p.m. on
money
addressed
above
to
a.m.
v.
the Auditorium of the
College School of Business
in
the
at
the program
in
courses
Applicants should send a
order for $20 cov¬
by mail.
check
Business,
and
arrange¬
to
course
Store.
included
starting Sept. 27
15 weeks. As
ments have been made for appli¬
to the Board of
Financing
nights
continuing for
Bemberg Co.; H. Binks Goldstein,
Credit
Manager,
United
Metal
Box
Co., and
A. S. Kleckner,
Credit Manager
of The Namm
Also
West 42nd Street,
18. N. Y.—Cloth—$3.95.
330
and
Re¬
This course
gives thorough coverage to fac¬
toring, financing of accounts re¬
ceivable, inventory loans, import
and export finance, and install¬
ment sales financing.
The class
from 6:50 to 8:30
North American
Company
Commercial
of
Companies.
Per-
Bank & Trust Co.; Ray¬
J.
Dougherty,
Assistant
Manager,
Conference
ceivable
Bur¬
lington Mills Corp.; Sol Altschuler,
Credit Manager of the National
Explanation
(901)
The Commercial and Financial Chronicle
.
AND
Corporation
JACKSON.MISS.
Currey, President
TWO WALL STREET,
NEW YORK 5,
10
The Commercial and Financial Chronicle
(902)
.
.
Thursday, September 7, 1950
.
shortages and that Philco expects
to
Pennsylvania Brevities
its
meet
*
Pittsburgh Railways Board of
.
Under
the
by-laws
newly-forming
consist
to
five
to
Pittsburgh
Rail¬
of the
nine
of
by Phila¬
owning 50.9%
common, and four to
Company,
new
chosen
from
nomination
former
those
public
by
system
in
of
placed
holders
unguaranteed
se¬
Philadelphia
inees
'
the
to
Company's
board
nom¬
are:
President
and
delphia
Company
of the
Phila¬
of
Standard
and
Gas & Electric Co.
George E. Devendorf, President,
Electric & Gas Co.,
Consolidated
Chairman
and
of
the
Treasurer, Standard Gas & Elec¬
tric Co.
C. D. Palmer, Commercial Man¬
Pittsburgh Railways
ager,
Co.
made
been
holders.
public
by,
will
Four
be
security
named
to
Board:
the
bonds to mature Aug.
bank
of
has scheduled
ing for Sept. 26
President,
fractories
Assistant
Co.
of
cash
Harbison-Walker
J.
Dix,
preferreds and
will
and
the
a
be
New
in
the
to
be
in
the
miles
$10
current
Gas
sales.
year
*
,
E.
pansion
Oakes,
facilities at Sunbury, Pa.
plant
caoacity
which
will
kw.
of
are
*
*
Hills"
Somewhere
—
Mountains,
here,
120
Fidelity
will
be
on
Allen &
Co., New York, is Pres¬
The purchase is reported
Co.; Director ident.
and
Treasurer,
Chavannes
In¬ to be for investment and no stock
dustrial Synthetics, Inc.; associ¬ offering
or
change
in
present
ated with J. Arthur Warner & Co., management
is .contemplated.
New
York.
*
*
♦
*
$
*
Natural Gas in Pennsylvania
Duquesne Light Program
approval
Public
by
Construction
quesne
program
Light
Co.
expenditure
calls
of
Du¬
for
the
of
ural
HAVEN—The
well in
gas
County
month,
fifth
Pennsylvania
Utility
Commission.
tional
Pennsylvania Water
& Power Co.
late
yielding
Free of Penna. Personal
and
selling
under
6%
1932
the
'
r
tral
RR.
of
&
Delaware,
*
*
of
Philadelphia 3, Pa.
Cambridge BIdg. 3s 1953
Leeds &. Lippincott 3y2s 1952
Leeds & Lippincott Units
Pratt Read Co., Common
Transportation Co.
Issues
Phillips & Co.
Phila.-Balt, Stock Exchhnge
Packard BIdg. Philadelphia
Y- Phone
COrtlandt 7-6814
back into full
tne
iron
$2
It
not until
was
strike
of the
off
income
even
only
on
a
only
million
$1.8
the
The
strike
Lush
road is
to
Allegheny
low
alloy
steel
five
Plush
American
luxury
liners.
preceding year and common share
This compared with $4.91 a share for
months affected by the
criterion of what the road
of earnings for the full year. The
benefits from the stepping
and the movement of material and
In
Coast.
as any
of
up
this respect its status has been improved
defense
our
the Pacific
to
men
materially by
the construction, by the connecting Denver & Rio Grande Western,
of
new
When this project
yard facilities in the city of Denver.
estimated that it could cut
was
1950
will
earnings
naturally
might have without the strike.
ditions
much
as
was
15 hours from
as
does
be
back
not
up
reach
not
accumulate to
or
the
level
they
The lost traffic under such
be
moved
at
con¬
later
a
It, and the earnings it would have produced, are lost
Nevertheless, and
imposed,
reach
even
per¬
with the higher taxes that will
it is estimated that earnings this year will at least
$10.00
$11.00
to
dividends than
liberal
This would
share.
a
with
compare
$9.83
Such net would certainly be sufficient to justify
quarters it is expected that
the
an
$3.00
being paid.
now
In
many
extra will be declared before the
year-end.
elements in the Rock Island picture, and
consideration that should allow generally liberal dividend poli¬
one
the
of
railroad.
ment
drastic reorganizations ever
most
Following that it engaged in
program,
1980 to
It went through
imposed
on
a
major
aggressive debt retire¬
an
culminating in the issuance of $55,000,000 1st 2%s,
replace the old 1st Mortgage and Income bonds.
This
now
It is followed
represents the company's only non-equipment debt.
by 705,238 shares of $5 preferred and 1,409,019 shares of common.
Fixed
Douglas Hansel With
Shields &
I
was pretty bad, with net ooerating
year-earlier levels. In July it was
cies, is its highly conservative capital structure.
carpet
totaling about 9,000
new
the
below
substantial
program
a
yards of carpeting, to be installed
on
from
One of the strongest
*
manufacturers, have been award¬
contracts
back onto
cars
particularly well located, and physically in excellent shape,
reap
date.
James Lees & Sons Co.,
ed
earnings
50%
will be able to show in the way
plates 30 cents per 100 lbs.
,
the
on
early August that J. D. Farrington, President,
approaching normal loadings. The impact
obviously not be taken
can
manently.
price of carbon
*
adequate supply of
unfortunate
their
ton, and Lukens
and
plates
back
went
men
months through July 1949.
results of the two
seven
more
steel
an
earnings amounted to $3.62.
carbon
a
short¬
operating income for that month amo - ted to
$684,365 compared with $2,304,640 realized in July 1949.
circumstances, the road's showing for the seven months
whole may be considered quite gratifying.
Net income was
earned last year.
strip $5
a
of the five
one
Net
Ludlum raised price of hot rolled
Steel boosted base
when the
even
was
called by the switch¬
was
June
almost
worse.
Alan
ton;
per
Also,
operation, get
stated that the road
of
Wood Steel Co. increased price of
pig
25.
expensive
were
line, etc.
month.
prices
last
and
charges amount to only $2.3 million, or 1.2% of 1949 gross,
preferred dividend requirements to roughly $3.5 million.
Company
to
,
Service Department of Shields &
;
Company,
complete the first well.
Active
Trading Markets
'
*
*
*
44
Wall
New
Street.
f
*
r-Vri*iiJE3i&v»
1950
C i t y,
members of
Reporting six months net profit
$6,672,000, equivalent to $3.86
per common share, compared with
$1,998,000, or $1.08 per share a
year ago,
it is anticipated that
Philco
Corp.'s 1950
sales
may
reach
high
new
a
of
so
great that it has been
allocate
Stock
television
Costs
sets
of
developing
production
television
sorbed
in
on
and
the
firm
receivers
the
second
line
were
ab¬
quarter.
James H. Carmine, Executive Vice-
President, says he
industry can reach
of
6,000,000
running
into
believes
a
1950
receivers
serious
the
output
without
material
r.
k
MUNICIPALS
an¬
has
EQUIPMENTS
pio¬
in de¬
neered
CORPORATES
veloping
a re¬
service
search
for
dealers
and
Mr.
sel
will
tirmp
Douglas R. Hansel
start¬
1951
Maintained in
today
(Sept. 7). The
necessary
ranges, radio and
distributors.
.
nounced
approx¬
to
*
Ex¬
change, is
refrigerators, freezers,
airrconditioners,
*
the New York
imately $300,000,000. William Balderston, President, states that de¬
mands for company's products is
to
*
York
of
of
^
in¬
announced
the
late
how
Rock Island
against which strikes
June
on
just
railroad.
a
factor.
properties, the strike against Rock Island was continued,
as a test case.
The strike ended on July 8, only after seizure by
the Army had been ordered and a court injunction had been issued.
In all, the strike lasted only two weeks. The effect was felt con¬
siderably longer, however, as it takes time to get a large railroad
Full
Pennsylvania
age gas for years to light and heat
his home, raised sufficient capital
ing
It!N*
PH 37S
products
union
men's
realize
to
be to
can
$3.00
a
a
freight schedules between Chicago and the Coast.
The appointment of Douglas R.
Hansel as director of the Dealers
Central RR. of N. J. Int. Ctfs.
Members
in
creases
difficult
is
strike
earnings have also probably been
other four
Raised
*
Development of the new field
dates back only, to last January
low.
BOENNING & CO.
Samuel K.
producers
for the break at the outset of the Korean i icident,
Action of the stock may probably be attrib¬
part to disappointment in some quarters over the
Recent
rate.
begun it
*
Prices
number
steel
Lackawanna
Western.
&
Steel
A
&
Lehigh Valley; N. Y.,
Western;
Ontario
Delaware
Penna.;
immediate
•
Philco "Sold Out" for
Phila.
are:
Pennsylvania; Reading; Cen¬
Hudson;
nd going
Since then it has attracted little inter¬
"
Property Tax
its
in
-
schedules
new
The
last
when Dorsey Calhoun, a farmer
who had been using surface seep¬
Common Stock
Currently
wells
The
nine Pennsylvania railroads which
have filed the
to 41 *4 at the close of the year,
of 47.
far of the directors to increase the dividend above
so
It
per
nat¬
$24,400,000
in
with an
open
flow
of
1950,
$26,800,000
in
1951,
and 3,220,000 cubic feet per 24 hours
$20,000,000 in 1952. The Securities at a depth of 5,930 feet. It was
and
Exchange Commission has drilled for the
McKean-Venango
Gas Producers Corp., which plans
to proceed with five to eight addi¬
future.
cents
the
by
western Clinton
brought in
was
3
11, subject to
■Y
LOCK
to
mines
Sept.
—
Traction
unprepared
from
increased
ton
gross
year
Under the
points where the coal is processed
Bleichroeder, Inc., New York. visualizes the possibility of a dis¬
Paul
E.
Kern, member
New aster which would wipe out city
office
York Bar, New York.
records,
documents
and
4
Theodore W. Kirkpatrick, Pres¬ personnels
*
,*
*
ident
/and
Director,
Citizens
E. & G. Brooke Iron Co.
Traction Co.; Secretary and Di¬
rector, Pittsburgh Coke & Chem¬
BIRDSBORO
Controlling in¬
ical Co.; Director, Colonial Trust terest in E. & G. Brooke Iron Co.
Co.;
Director,
Pittsburgh
Steel has been acquired from Lukens
Co.; Vice President and Director, Steel Co. and Worth Steel Co., by
Pittsburgh Terminal Warehouses, Bayou Interests, Inc., of which
Inc., Pittsburgh.
Charles
Allen.
Jr..
partner
in
legheny
failure
annual
already
completed.
125,000 kw.
on
coal
at least in
uted
as
anthracite
S.
Wilson, President, Al¬
kw..
*
rates
high this
a
has drifted aimlessly.
250,000
when
1951
additional
an
to
of
Freight
Thar
of
in
Present
150.C00
boosted
additions
new
*
Pocono
early
ordered
Now
is
be
to
est and, except
western railroads
*
plans for further ex¬
company's generating
of
low last year of 25^
on
lived
Sunbury plant total to 375,000 kw.
Bar, New York.
A. Geltz, member Alle¬ Bond & Mortgage Co. is burying
true copies of mortgages aggre¬
gheny County Bar, Pittsburgh.
George H. Heyman, Jr., partner, gating about $50,000,000, according
to a United Press report.
Abraham & Co., New York.
Joseph
Stephen M. Kellen, Vice Pres¬ N. Gorson, company President, is
ident and Director, Arnhold and not apprehensive but nevertheless
L.
are
well ahead of 1949.
in
part
James
John
thus
Earnings
reported
value,
par
on
subsidiary.
shares
*
north
common
dividend
from
par
President,
Pennsylvania Power & Light Co.,
preferred.
Them
the
the
generating capacity has been
ordered,
which
will
bring the
made
in
part
*
Re¬
York
to
tax
Charles
6%
Consolidated
of
PHILADELPHIA
member
Philadelphia
Pittsburgh,
"In
Chicago, Rock Island & Pacific
Chicago, Rock Island & Pacific stock has been giving a rather
desultory performance in the past couple of months. F
vhile
it had been one of the leaders on the upside, having climbed from
a
Further Penna. P. & L. Expansion
structure.
calls for retirement
outstanding
Payment
plan
a
the
to
par"
company
quarterly
changed
*
of Philadelphia
corporate
program
Company
Co., Pittsburgh.
Maurice
"no
by
$100)
the Board of
placed
a
and
reducing
hear¬
a
part of
on
simplification
Company's
all
in
in*erect
the .year,
on
basis
(par
insurance
bear
announces
The SEC
of
called
be
#
*
*
to
stock
construction.
The
will
an
Directors
competitive bidding, an additional
$7,500,000 par value of its new
preferred, proceeds to retire all
bank loans with balance going to
for
special
a
Nazareth Cement Co.
preferred
of
Earlier in
pre¬
Redemption of $27,500,000 out¬
standing 5% preferred (par $100)
$110 per share.
Later, Duquesne will sell, at
Duquesne
Executive
new
$50) to Phila¬
for $27,200,000.
(par
Company
George Greer Coolidge, Director
and
loan
$27,500,000
stock
7%
means
short-term
loan.
of
ferred
of
1, 1980.
$2,000,000
note
Sale
Company
that
bidding of October to vote upon a plan to
mortgage 2%% retire the outstanding 7,052 shares
first
$12,000,000
preferred
The following nominations have
Cement
competitive
at
Sale
of
*
z
understood
stockholders
Sale
Board,
Patchogue Electric Light Co.
Clyde F. Ligo, Research Man¬
ager, Pittsburgh Railways Co.
A. L. Lippe, Vice President and
is
are:
at
O. Boshell, Chairman
E.
Board
Nazareth
It
meeting of
delphia
curities.
Duquesne to proceed
nlan currently
financing
a
involving $41,500,000.
Steps
presently
contemplated
members;
nominated
be
delphia
be
the
of
Co., the board of directors
ways
is
authorized
with
Directors
goal
.production
1,000,000 sets.
Han¬
con-
tv^e
de¬
velopment
of
this as well
as
Shield's
tionwide
trading an^
na¬
STROUD & COMPANY
underwrit¬
Incorporated
ing facilities for dealers.
Mr.
Hansel
member
associated
19
1920
with
years.
been
has
''tvooU'-1
nf
munity since
for
who
was
-
formerly
Wertheim
,
PHILADELPHIA 9
a
&
co.
ALLENTOWN
•
PITTSBURGH
NEW
YORK
,
SCRANTON
•
LANCASTER
Volume
Number 4940
172
...
The Commercial and Financial Chronicle
.
The New Yo k Curb
Exchange
(903)
as
to what
to
qualify
must
I believe that
the
Its Listing
Stock
discussed
Piocedures and Unlisted
Trading Privileges
ments
strated
standards
be
to
earning
it
have
to
as
prominence,
earning
tribution,
Vice-President, Division of Securities, N. Y. Curb Exchange
must
with you their require¬
for
in
cal
size,
demon¬
for
I
eligible for listing
deta.ls of listing requirements,
gent
of issue,
of laws requiring certain unlisted
register with SEC.
to
for trading in
nately, he
country,
qualify stocks for listing.
have
any
with
them
difference
so
pre-
a
to
talk
(which is pri¬
marily
pro¬
p r
i
v
i-
a
back¬
the
ground
and
statistics
strictly
a
morning,
but I did
I
of
under¬
would
give
talk
will do,
brief opening
prepare a
I
statistical
the
on
it, although I think perhaps
end of
otherwise
covered
Sheehan
for
met
10
is
with
499
288
regular members and
ciate
The
members.
membership,
Curb
securi¬
ties division, and it is about that
phase of the Exchange's activi¬
of
somewhat under $10,000, rose to a
is the second largest
securities
Stock
The volume of business
our Exchange generally
largest.
done
on
about one-fourth to oneYork Stock
averages
fifth that of the New
hand,
Exchange,
Exchange. But, on the other
the Stock
generally
excluding
more
than
all
of
averages
volume
our
of
the
the
combined volume
fourteen
other re¬
gional exchanges in the country.
The New York Curb Exchange
talk
to
to
you
We
provide
public
a
American
and
tions.
the
At
market¬
foreign
corpora¬
this
beginning of
these securities had a mar¬
of something over $13
value
billion.
about
I
our
is
privi¬
trading
"unlisted
termed
leges."
bal¬
what
to
admitted
are
ance
than half of our
fully listed,
are
remaining minority
the
and
more
securities
First, I will talk to you
the fully listed securities.
Listing
for
"Requirements
Applications" pamphlet so each of
take one and look it over
leisure.
As you look it
you can
at
your
will find it calls for the
such as a de¬
over, you
information,
usual
scription
history
the
of
of
the
business, properties, capitalization,
financial statements, etc., of the
applicant company, and the
statistical
As
usual
presentation.
know,
you
which lists
of the two really
one
proportion
are
also
New York
maintain a coun¬
which
of
firms
member
of the
Stock Exchange,
trywide network of over 1,400 of¬
fices located in 371 cities in fortysix states and the District of Co¬
lumbia.
Twenty-seven member
offices
serve
investors
in
eight
foreign countries. Approximately
600 Curb Exchange tickers located
and
cities, twenty-one states
the District of Columbia carry
our
quotations across the
sixty
in
The Curb Exchange
nation.
is governed
of 32 governors, of
whom
28, including the Chair¬
man
of the Board, are elected
from the membership of the Ex¬
change and are, therefore, in the
by
board
a
_____
'
■
•'
given on Aug. 2, 1950, the
11th in a series of 17 on the New York
Securities Markets and their Operation,
*A
every
company
on
similar to what we get in a
much.
If
a
cannot
It
application.
listing
vary
too
particular company is
being examined, either for
listing
it is
registration
purposes,
necessary to get about the
same
basic information as to history of
or
the
business, properties, financial
statements, etc.
Likewise,
ments in the
cedural
the listing require¬
mechanical and pro¬
form
Curb
the
for
are
just about the same as the Stock
Exchange,
and
just about the
same
as
most of the other ex¬
changes in the country;
to
the
form
of
that is, as
presentation, the
mechanics of presentation, and
the
information that should be in the
listing application.
However, you
lecture
sponsored jointly by the New York Secu¬
rities
Industry
and the University of
Vermont's Department of Commerce &
Economics.
power,
ing
get
in
size, national promi¬
we
or
primarily
are
the
from
about
comes
that
Exchange
demonstrated earning
public distribution,
etc.
nence,
That
Curb
a
develop¬
stocks,
time
as
they become seasoned and
goes on
and develop, and there is a
flow
natural
of
stocks from here
The last
Exchange.
Stock
the
to
list
we
their
in
or
at
some
prior history
were
and also
written
not
are
rigid requirements.
We more
less take each case as it comes.
We do have certain
mental, some¬
elastic, yardsticks as to what
we will take in the way
what
in to¬
executed in
exactly
the
earning
of
hood
in
a
a
not
have
and
those
to
have
we
cases,
privileges."
agency.
be
satisfied, of course, that the com¬
majority of them would not ap~.
ply.
It would have meant, if the
bill as originally drafted had been'
was
with
registration
no
governmental
any
And in those early years,
largest)
try,
except
was
into
look
the
and
we
other
bill was enacted
form.
It pro¬
vided first that
all fully listed
stocks on exchanges had to regis-1
ter with the SEC by a certain datein order to be continued.
As to
the
unlisted
stocks it provided
Congress, and the
in
stock to be dealt in
proper
would
We
1
-
representatives of
exchanges appeared before,
So
was
a
'
1
ket.
the Exchange.
on
Stock Exchange,
the
would have lost an exchange mar¬
actively dealt in overthe-counter
which
he
thought
stock
(although we were
but also on most of
the other exchanges in the coun¬
the
whose
company
some
unlisted not only
in
Curb
the
on
thousand
several
that
dealt
stocks
admission
Such
privileges."
register with
enacted,
usually resulted from some mem¬
ber of the Exchange calling to our
attention
the SEC the great
to
was
going back as far as you can go,
the Curb always admitted stocks
to what we called "unlisted trad¬
ing
had ap¬
plied for listing, the probability
was that if they were then asked,
the
Act
required
demonstrated any earning power.
In
(when
There
in.
-
stage
substantial list of unlistedThey represented the ma¬
1934, and immediately the prob-^
arose:
What happens to the
unlisted
securities?
Naturally,;
Securities Ex¬
enacted), the
Curb, of course, was the sole
judge—or any exchange was the
sole judge—of what it would trade
fact, we have on occasion listed
stocks which are still in the de¬
velopment
prior to
1934—and in the years
lem
the unlisted stocks, prior to
On
1934
In
earnings.
less
designated.
situation prior to
so
since the companies never
,
the
jor portion of our trading volume.
Along came the bill to enact
the Securities Exchange Act
of
call "un¬
we
on
stocks.
which
stocks
not
very
Trading in Unlisted Stocks
Ex-
for
dollars
million
a
the
and
listed trading
stocks
public
that time the Curb had built up a:
re¬
subject, and therein
differences be¬
admitted to what
are
that in printing
was
listed
That was the
fully listed and registered
companies
for
were
lies one of the big
of years before they will
stock. We list stocks with
period
list
power
a recap¬
quirements of the SEC to which
listed and registered com¬
are
compared with the
as
the
of
ticker
fully
tween
abso¬
information we
used a symbol "L" to indicate it;
was listed; and the unlisted stocks,
report¬
principal
was
stocks. The only difference
sales
to
the
There
way.
in mechanics
they buy and sell
profit within a six
are
Sales
ticker in
no
listed
if
a
Those
demonstrated
the neighbor¬
requires
change
Stock
the
example,
10%
on
listed stocks.
as
listed stocks
rules of
were
difference in the service
public received for the un¬
the
months' period.
is considered on its own
For
than
more
same
lutely
registered
being subject to
at
stock
standards, but each case
merits.
of listing
and
the proxy
to
clause
ture
change
the Curb.
on
standards
Our
into
Exchange
Stock
the
time
Section 14,
the
companies
ing all transactions in their stock;
made shows that about
60% of all the stock issues listed
dealt in
of
owners
survey we
on
the
SEC; Section 16, which has to
with
officers, directors and
do
panies
companies.
After
the
and
listed
are
conform
fact
seasoning exchange for
a
to
the
periodic
trading
were
com¬
going to statistical manuals
and such other sources from which
we could obtain information, and
if
we
were
satisfied
that the
pany,
compromise
a
would make a
that the SEC
unlisted
of
study1
trading privileges
on
back to
stock had all the attributes for a Congress by some specified date a
has a
Listing Requirements
normal
listing
and
an
exchange
will properly develop
year or a year and a half later.
the com¬
have here enough
copies of
market, we would admit it to un¬
pany, and that its product or busi¬
The SEC Provisions
any Exchange must
"national"
concurrently
register
with
the
exchanges in the country, as dif¬
SEC under the 1934 Act.
And you
ferentiated from "regional" ex¬
probably know, or will find as
changes, because our ticker serv¬
you look over the SEC 1934 Act
ice and the branch offices of our
requirements,
the
members cover virtually all parts registration
basic information called for in the
of the United States.
Our 488
1934 Act registration is generally
member brokerage firms, a large
is
that
in
the
on
Stock
considerably
Slightly
all
stocks
basis
same
reports;
requires
which
minimums
place for approximately 900 stock
and
bond
issues
of
some
750
ex¬
States. The
Exchange, of course, is the
change in the United
want
today.
a
peak of $254,000 in 1929, and sank
to a low of $650 in 1942.
The New York Curb Exchange
I
that
ties
total
running
Ex¬
to be in charge of the
pen
or
assoc-
value
now
not
not as stringent as
are
the matter of
transactions and securities. I hap¬
of
association
proprietary
voluntary
a
brokers
Exchange
Curb
the
of
operations
change,
ket
York
selects
listing
the
of
grow
standing committees to super¬
year
New
in the securi¬
engaged
the
those
executive, not
The President each year
of
some
this yesterday.
The
who
Exchange,
ties business.
off-the-cuff
which
memorandum
John
original
been
this
the
of
full-time paid
a
with a staff of 300 em¬
ployees.
The work of the Ex¬
change falls into three main parts:
the
divisions
of
administration,
few
highlights on
you
a
policy-making decisions of the
The other governor is the
President
is
representa¬
viewpoint to
provide
public
trad-
you
Our
to
unlisted
leges), to give
Curb.
securities
not engaged
business,
and
outside
tive
three are
vise
g
motive
selfish
somewhat
and
n
which
unlisted
stocks.
separate
no
them;
Orders
gether.
for
provides
annual
of
financial
re¬
are
which
13,
"filing
we
opinion
their
high enough, although we have a
cedures
i
Martin J. Keena
governors,
the
elected
the
on
listing
the
in
board.
as
If
of
to
as
quirements, it is that they
corpora¬
business, and
"public"
the
my
standing had
securities
ciardi asked
liminary
all
at
be
Professor Ric-
me,
country,
foreign securities.
called out of the
was
the
feeling. The standards which must
Truslow,
was originally scheduled to speak
to you a few days ago. Unfortu¬
were
for
our *
on
listed
the
ards in those respects in order to
in
Notes Curb Exchange's facilities
Mr.
President,
privileges,
received the print on the
Exchange
Our
with
There
a
admitted
were
trading
tion
exchange
being the
giving
all commingled
were
floor
op¬
when
in
naturally should have high stand¬
largest
Be/ends unlisted trading privileges, and
looks for passage
that
know
they
covers
our
is fully listed
company
The Stock Exchange,
not as strin¬
says are
You
unlisted
to
that pretty well
the stocks
After
developing com¬
a
provid¬
were
we
service
those facilities to the stockholders.
typi¬
a
public
a
posts
national prominence, demonstrated earning power, and
public distribution.
tions
which he
ing
it has to
register with the SEC, and there¬
by become subject to certain re¬
quirements of the 1934 Act; Sec¬
those of New York Stock Exchange in matter of size
as
is
fully listed phase of
eration.
that
on
That
be—they had not seen fit to
their stockholders an ex¬
change market,
felt
we
listed.
was
think
the
give
stock to be listed
proper
that
may
But still
power.
a
listed that
demonstrated
we
no
example of
pany
securities
had
the Exchange.
on
exchange.
Describing New York Curb Exchange as one of the two really
nat.onal exchanges as differentiated from regional exchanges,
Mr. Keena outlines its organization and government.
Gives
was
public dis¬
power,
order
it
stock
representatives of
Exchange
national
By MARTIN J. KEEN A*
which is that when
be met in order
stock for listing.
a
11
into
changes,
variations between
not
presentation
but in the
in
of
the
the
ex¬
mechanical
application,
application of standards
is adequately financed and
management which we think
pany
such that there
is
ness
is
a
good
possibility it is going to develop
into
As
a
successful company.
a
indication of
an
without
stock
a
listing of
demonstrated
•
take
Kaiser-Frazer.
We
listed
that
stock about four years ago. You
may remember on that situation
there was first an initial public
offering
of
approximately two
million shares at $10 a share. That
earning
power
can
we
clearly, at the time of the
original
not sufficient
financing to complete the devel¬
opment of the company and to
bring it to production.
The com¬
pany did not apply for listing at
that time, and probably would not
have been eligible if it had; it was
not completely financed.
offer,
public
second offering of
stock at $20 a share, and the pros¬
pectus on that offering clearly
illustrated that after they received
that
financing they were ade¬
made
any
and
privileges
We took the view then
an
—
covering unlisted
section
That
management,
lack
of pressure
from stockholders, or whatever it
This
is
under
no
Securities
an
circumstances
for
offer
NEW
be
to
buy, any of such
made
only
by
study,
enacted with
means
on page
construed at Pn offering of
to buy, or"ttSua solicitation of
these
Securities. The offer is
of the Prospectus.
ISSUE
1,000,000 Shares
Alberta-Canada Oils, Inc.
a
Delaware
(a
Corporation)
Common
Stock
(50 cents Par
Value)
quately financed to get into pro-,
duction.
As a matter of fact, at
that
away
applied
listed
only a few
production.
they
listing, . We
to
the
us
for
The
stock.
subsequently
went
into
company
produc¬
Prospectus
may
did
produce a
well.
They have subsequently had an
They have since not done so
litigation with Otis, but that
not change the basic fact
which
I
am
trying
to
illustrate,
investment dealer
undersigned.
Thomas G. Wylie
financing program
which resulted in the differences
does
the
■I
additional
and
be obtained from your
or
good
many cars in their early stages,'
and
earned
substantial profits.
They
tion.
Share
Price $2.50 per
point at which
the
is
That
were
from
they
time
months
Ml
.
.
Co.
Underwriter
535 Fifth Avenue,
re-,
securities.
was
Continued
sale, or as an offer
to
its
made
ported the results to Congress,
market, and for some
inertia on the part of
active
reason
that
widely distributed,
was
SEC
The
and
the upshot of it was that the Act.
if a
had was passed with Section 12 (f)
tions.
stock
report
and
without
application of the company,
sometimes over their objec¬
was
Subsequently, about a year later
they
trading
listed
exchanges
New York 17
Tel: MUrray Hill
7-6945
22 j
12
The Commercial and Financial Chronicle
(904)
country to another section.
Estate
will
Planning—Mobilize Now
By EIAVARD ML HEFFERNAN
Trust Officer, Ann Aroor Trust Company, Ann
Mr. Heffernan pair,
should
begin work
and trust
Mobilization
each
and
action
a n
order
of
du.ing
the
Everyone
mobilization
is
the
for
gencies.
It
shores.
own
to
miles
of
have
We
from
our
taken
our
this
that
is
ligated to
families to mobilize
our
our
own
and
resources
the
a
home;
There
some
funds
jectives
best
plan
several
are
manpower,
in savings of one type or another.
to
natural
However,
either during or after his lifetime.
re¬
assets,
the
case
be,
and
plac¬
or
any
ordination
friend
eventu¬
before
we
e. m. .^ifcrnun
strength
our
and
provide the maximum of security
our
country—and for all the
for
free countries of the world. While
first step toward
mobilization
not be
100%, it is part of a
master
plan which will insure
protection
for
all
democracies.
Our
leaders,
both
civilian
and
may
building
co¬
up
of
or
has
relative who
his
of
known
some
"taken
was
time." And
this same person may have failed
or
have neglected to "mobilize"
his assets to provide the maxi¬
can
demonstrate
the
her)
(or
of
them.
widow
His
plan set
under such
circumstances may be far from
adequate. In fact, it may be im¬
possible at that time to set up
a
up
the plan which would provide the
best management and distribution
blueprint
of
these
each
of
us
that
plans
that
so
be
may
a
assured
tion when it is needed. They
cer¬
his assets.
Just
another
exam¬
ple of unpreparedness—"too little,
late"!
too
they
have
excellent
made
plans
their estates.
emergency
presented itself
and
then fumble around to see what
you
that he's going to leave every¬
to his wife. "Want her to
could
have it
did
and
not
wait
,
what
until
the
found
be
and
the
for
disaster
or
(Not
at
all
a
the
to
in
A
will
man
tell
thing
be
done.
the various types of in¬
surance—to
protect against fire,
best. If either of those statements
illness, burglary, disability,, death
be discovered
there
are
loss
or
of
earning
families
some
Then
power.
have
insurance
which will provide for the educa¬
tion of children or for the retire¬
ment
of
the
head
of
the
family.
Most families have savings of
one
is examined
carefully, it will
soon
family. In the case of the
Iwoman, what experience
has she had in handling financial
matters
or
managing property?
or
average
Would
she
be
not
the
widow
(3)
of additional worry and be
depen¬
dent upon a busy friend or rela¬
other
Some
handle—or be subject to the prey¬
inherited property,
ing of unscrupulous individuals of
or
type
already
investment.
of
have
whereas others will inherit prop¬
erty in the future.
<
Many
people
criticize
and
ernment
the
has
complain
the
about
plan|J|he
made
for
gov¬
^mobilizing
tive
who
whom
in
widow
plans,
for
or
their
perhaps
no
plans at all,
estates.
own
There
is
world
be
friend
around
to
to
At
most
quate
strategic
items,
or
have made arrangements to obtain
them. Yet equally important with
having them, is a plan for utiliz¬
ing them most efficiently and ef¬
fectively. If we have been a bit
slow
in putting these plans into
effect, it is one of the penalties of
having a democratic form of gov¬
ernment
tant
fact
and
still
have plans
into effect
society. The impor¬
stands—we
which
can
whenever
be
any
always
placed
crisis
arises.
•Every
family
should
have
its
plan of the .management and
distribution of its assets or re¬
own
sources
it
will
more
in
his
such
point
vul¬
no
one
par¬
will
be
advice
or
important
I
should
observation from
an
advice, which
the
to
present
any
relative
or
this
make
the
that
donate
assist
matters.
like to
In
situation
sure
little doubt about the
adequacy of
the resources of the United States.
We have
sufficient
amounts
of
of
affairs
extremely
position.
even
personal experience. The
my own
from
even
own
an
can
time
inadequate
in
uncertain
dividuals
have
is
nerable
ticular
who
his
there always will be some
world?
And
a
grieving
the
in its present emer¬
gency. Yet there undoubtedly is a
large proportion of these same in¬
country
has
a
a
person
receives—
friend—without ade¬
compensation,
is 1 usually
worth just about what he has paid
for it. It is just a corollary of that
old
saying, "You get what
you
The
tehnpo of life under an
economy and society mobilized for
either defense
or
war
often leaves
but little time for future
Each of
us
is concerned
planning.
primarily
with
accomplishing the immediate
task
at
hand.
We
producing
are
material for the
armed
we
as
one
are
serving
a
forces;
or
member
of
of the branches of the
Navy,
Marines
or
Air
Army,
Force; or
we are
engaged in a home, front
when the time
corner And- activity. Things! change rapidly—
come!
There
is
nothing almost over-night. Our duties may
certain^in !ife tfrr> 'pxes
and
death. Ancf a good estate plan can
provide for both of these contin¬
change from
or
we
move
one
may
find
from
one
day to the next
it
necessary
section
of
to
the
The
take
the
(4)
share
for
each
one
share
of
Manu¬
one
share
of
Manu¬
twelve shares held.
Thus, with
$60, the exchange, after the stock
will be worth around $238
hold
to
are
special
Brooklyn
of
merger
share
a
of Brooklyn.
meetings Oct.
stockholder
Trust
with
Brooklyn.
over
of
an
relative.
aged
(5)
a
son—or
a
(6)
well-being
incompetent parent
or
the
has
of
a
from duty
returns
son
with the armed forces
ana
can
de¬
cide whether he wants to partici¬
(7)
Minimize
this
and
will
liabilities—
tax
become
an
ever-
increasing item.
(8) Insure the orderly distribu¬
tion
of
person's
a
complex status of
other
defense
economy.
(11)
will be placed
was
Select
dependable
a
and
executor, who will
always be available and qualified
to handle the administra¬
act,
tion of
an
Any
estate.
of
one
be
these
objectives
itself
to take the time to do some plan¬
ning for the
in
area
operated, 22
in
Queens
79
offices
are
his
entire
but most of
to
the
of
the
family.
general
us can
last
sulted
in
We
war,
have
tragedies
many
from
the
short,
are
remember back
lack
heard
that
of
squandered
or
ice
of
or
Men
their
by
inexperi¬
unscrupulous in¬
died
in the
country
and
serv¬
failed
to make
wills, leaving their brides
inadequately
protected
because
the
widow, in some states, under
circumstances, received only
such
one-half
of
the
estate.
Or
there
hastily-prepared wills by
unqualified individuals which
brought
the
long, complicated and
on
expensive
widow
the
and
brothers
parents,
other
battles
court
cases,
or
between
deceased's
sisters.
the service
men
In
ne¬
glected to change the beneficiary
on
his
insurance
pertinent,
with
The
person
one
a
policies,
where
similar
result.
on
whom
we
thought
our family could depend,
if anything happened, had moved
away or had become a war cas¬
ualty himself. In fact, that still
happens today!
And these same
things can happen to any one of
Continued,
on
page
31
of these
facilities would,
has
in
State
the
California—its
of
concentration
over
525 offices
particular city
the country. The hundred branches of
Manufacturers will compare with the 76 of Corn Exchange, 67 of
National City, and 54 of the Bank of Manhattan, the other large
branch banks in New York City.
would
terms of
Manufacturers
deposits the merger would increase the funds of
by
million.
$2,336
The
approximately $226 million, or to around
gain would put Manufacturers close to the
deposit total of Guaranty Trust.
larger by
in New York would be
The
a
the greatest in
be
Brooklyn
of
merger
Only National City and Chase
substantial amount.
Trust with Manufacturers Trust
any
brings to three the number of such transactions which have taken
place within the past two months. The most recent development,
prior to the Brooklyn Trust, was the proposal of Bankers Trust
to merge with the Lawyers Trust. The stockholders of these banks
This
followed closely the acquisition by Bankers Trust of
certain banking functions and operations of Title Guarantee and
are
meeting next, week to approve the terms of this merger.
proposal
Trust
Company.
The merger of
since
bination
Brooklyn Trust, however, is the biggest com¬
the war and the eleventh in the past five
before
The economics of the situation
years.
continue to support such
developments and we would expect the trend towards larger and
area to continue.
fewer banks in the New York
Announcement of
the merger had
been preceded by a sharp
upward movement in the price of Brooklyn Trust shares in the
over-the-counter market, indicating that something was going
on
of
importance.
From a price of around
132 in mid-July, the
to about 160-170 in early August and then settled
days. It then proceeded to rise sharply again to
around 200 and once more hesitated.
The final move came just
for
a
before and
stock
after the
merger
statement last week and pushed the
to its present level of around 235.
up
The
not
few
interesting from a number of points of view,
being the indicated payment to the stock¬
of Brooklyn Trust.
The book value of Brooklyn as of
merger
is
least of
the
holders
received for the
dividuals.
at present has
boroughs of New
in the number of branches—Bank of America
strain died suddenly. Estates
enced widows
Trust
principal
in
June 30,
were
the
after allowing for
specific points, result in a branch banking
system of over 10(1 offices. It would be the largest branch system
in New York City and while not so large as the Bank of America
planning during that period. Men
working under severe stress and
lost
Manufacturers
throughout
consolidations at
some
re¬
estate
many
' ■!
self and
Memories
Manhattan.
combination
back
person
its
a
scattered
stock moved up
a
and
particularly desirable acquisition. Of 26 offices
in Brooklyn. The remaining branches are located
and
future. The sooner
begins his over-all
plan, the easier it is for both him¬
that
of the Directors of Brooklyn Trust
some
City.
The
enough in
reason
had
reported to be nego¬
the Manufacturers' board.
which Brooklyn Trust operates
on
branches make it
experienced
to
institution and
merged
i
In
or war
institutions
tiating to obtain control. The announcement of last week, how¬
brought an end to the speculation as to the future of
Brooklyn Trust. The officers and staff will be absorbed into the
property.
a
to
ever,
York
business which
a
established, until such
his
as
education
grandchildren.-
or
Protect
father
the
for
Assure
children
time
against
shiftless
Both
12
Even in the days immediately preceding the
announcement, the Chase National Bank
The
Provide
or
property
or
were
for."
pay
and
The
long been rumored. For over a period of two years practically
of the major banks were mentioned as likely candidates to
children.
or
Protect
recipient would
another—a bank account,
stocks,
bonds,
mortgages,
land
contracts,
real
estate
or
some
type
cash
held.
,
that the husband is
merely "passing the buck" to his
wife
share
all
eventuality of war!)
(2) Provide sound management
and
supervision of property for
a
did not include the
merger
the merger.
approve
ac¬
all," is his usual comment.
(9) Manage real estate, stocks
They realized that it probably Therefore, he assumes that every¬ or bonds while a person is busily
would be too late at that point.
thing is taken care of. Then there is engaged in defense or war pro¬
Each family is not unlike the the
husband
who
echoes, "We duction; or while he is serving
government, which merely repre¬ have
everything joint."
Again, with the armed services either in
sents all of the families in "the such a reply indicates that there various parts of the United States
country. The average family has is nothing further to be done. or outside the continental limits.
certain assets or resources, includ¬ The thought behind both of these
(10) Relieve an inexperienced
ing the earning power of the head statements is admirable—as far widow, friend or relative of the
of the family. There is the
home; as it goes. But is it superficial at management of capital under the
might
in
$183.00
each
for
one
institutions
parents.
improbable,
of
dividend,
in
chil¬
common
receive
Trust
Maufacturers selling at around
protection,
minor
of
care
dren in the event of
to
are
holders
family,
pate actively in the business.
for
tainly
his
may
Provide
welfare
Of course, many people feel that
have the greatest protec¬
we
(1)
son-in-law!
of
working out
these
children, or other loved ones, have
been compelled to formulate their
own plan for these assets. In many
instances,
for
of the
announcement
facturers will be paid after a distribution to Manufacturers' stock¬
intends
person
a
Company
Aug. 31.
on
initial
facturers
following list:
spendthrift
military, have spent considerable
one
the
or
use
mum
time and effort
in
of
Some
cident
Everyone
for
which
definite lack of
a
in
estate.
an
ality. It is the
only w a y in
our
to be
seems
a
pre¬
paredness
and
which
accomplish
relationship to the others. There
may
state of readi¬
ness
consideration
full
without
as
ing them in
experience shows that
these steps is often taken
each of
facts
sources,
or
aside
Trust
different ob¬
and
announce¬
They have subsequently been revealed and
approved by the directors of the banks. Stockholders of Brooklyn
which will
assembling of
material,
the
Trust
terms of the merger.
objectives.
our
Company,
The
we
should determine to work out and
execute
set
Trus^
to
assets
was
Agreement on the merger was revealed in a joint statement
by Harvey D. Gibson, President of the Manufacturers Trust Com¬
pany, and by George V. McLaughlin, President of the Brooklyn
ob¬
are
protect them to the utmost. So
accomplish
provide some in¬
against the many uncer¬
backtracking at
Yet in the face of
individuals,
Week—Bank Stocks
banking circles last week
ment of the proposed merger of the Brooklyn
into the Manufacturers Trust Company.
no
junction.
tures. It tries to
to
This
The big news in
and
all this we, as
surance
also
By H. E. JOHNSON
aggres¬
favor of freedom
there
And
necessary
life; to provide
Bank and Insurance Stocks
our
protect¬
democracy throughout the world.
com¬
for its
maintenance and expendi¬
tainties in
power,
against slavery and
sion and in
family, to the best of its
ability, attempts to provide the
power
Many
extremely'short
world
a
thousands
stand
each
earning
As
are
assumed
be
can
notice.
Thursday, September 7, 1950
.
themselves 4n faron
ing other parts of the world which
trust funds by individuals.
up
current
o r
which
process
calls
setting
ior
crisis.
that
understands
by facilities afforded by trust
ujm
the
day
every
world
present
an
■
reason
is
Arbor, Mich.
why everyone with property
estate plan as an all-out mobilization
ad/anfcages of having work of estate
<ais
planning
Lists
panies.
v
lands
country is committed
jjt reasons
R-
home front.
on
find
even
distant
..
them
1950 was $195.60 per share and the indicated value to be
shares is around $238.00. The book value of the
is obviously conservatively stated and the payment in
the book value represents in part the valuation of
With only 82,000 shares of stock outstanding,
million dollars additional valuation means $12.00 in per share
company
excess
of
certain
a
totals.
the
reserves.
The adjustment and
appraisal of Brooklyn's assets provided
additional equity.
The
merger
is also interesting in that it provides for
partial
the
compensation in stock, something that has not been used in
recent mergers in this area.
Volume 172
Number 4940
.
in
President, American Bankers Association
Chairman, First National Bank and Trust Co., Paterson, N. J.
ABA executive, warning
dom is
"small
no
of
of banking: (1)
ships
commercial
and
for
accounts
co¬
victory won over
Today I want to
industry
I
of
to
you
banking
with regard to the
also
want
war
plans
the
bring
of the views of the
tell
to
war.
about
you
banking
and
the
some
of
things
we
prepared
are
do
to
port
in
sup¬
of
the
has
materials of
i
r
a
Korea
into
give
to
pause
com
m
u
i
n
the
in
But
F.
Raymond Peterson
The determination of
front.
does not rest.
mortal
and
be
must
we
prepared to fight it with weapons
well
as
of Communism will be
invasion of Korea
Reds,
or
a
do-China,
blow
next
full scale
a
by the Chinese
Nor do we know when
is
coming,
this
but
country would be foolhardy not to
it, and to prepare for it,
regardless of the time element.
So the prospect of eventual to¬
tal war is an ugly reality that we
expect
all
must
It
recognize. It can create
nation
than
war
support that the Ameri¬
industry,
people,
can
already face.
we
require of us all the same
can
full
serious problems for
more
many
the
commerce,
Halsey
industrial
Our
the
also
the
test
of
of
taskmaster
is
It
men.
eco¬
an
All that the people
of this nation have done since the
end of World War II to achieve
nomic system.
and prosperity, and their
hopes and plans for an even bet¬
ter future are now being set aside
while the nation begins to bend to
the tasks of war to defend this
peace
and the remaining free
nations against the aggression of
country
the
growing communist empire.
Communism
and
War"
dom, There Is No "Small
In
the
munism
"small" war. Our
this war can use
satellites,'as in Korea, to confuse
the issues; to select its own time,
place and weapons of war; and to
bait us into economic exhaustion,
intervening
years
most
that
gestures
false
But for almost five
toward peace.
it has seemed inevitable to
political and military experts
a: (final
struggle—the show¬
down—must eventually come,} be¬
cause war is the weapon
f
♦An
address
t
>
the
Rotary Club
31,
1950.
'
.
1 *
'
and con-
4 («f"»
(
'
*
Mr. Peterson before
of Paterson, N. J., Aug.
by
V
.
'
from the war as a
emerge
over
finance
and
controls the law
labor, industry,
very broad and
potential
The
establishes
are
Our experience in
taught every one
farreaching.
II
War
World
M11
2344
4432
6514
8836
52
2372
4435
6523
8905
55
2401
4454
6536
9018
9038
91
2402
4462
6539
110
2415
4471
6543
118
2447
4522
6563
9100
155
2490
4548
6587
9101
302
2517
4552
6599
9169
9181
9308
9317
9318
9320
307
2625
4586
6651
333
2634
4605
6665
366
2644
4615
6680
9086
4692
6729
4707
6785
production
and credit, and liberating the con¬
from
experience that it can be suming public from the shackles
done, with such completeness that of control as promptly as possible.
2741
4805
6790
472
2335
4807
6806
503
3028
4815
6810
521
3155
4821
6883
523
3156
4838
6888
585
3308
4876
6907
603
3312
4891
6921
638
3339
4942
7000
677
3346
4972
7050
718
3407
4985
7075
5173
7094
nomic
It is not an easy job
for
necessity
the
is
ernment's powers over
to convert it to war. But we know
the flow of war material becomes
In
or
war
in
In
go
on
essential part of the
nation's productive economic or¬
ganization because it provides the
government and
industry with
credit and other indispensable fi¬
the
nancial services.
law
banking is
an
effects
the nation's banks.
and
3415
785
3450
5213
7120
831
3500
5245
7121
838
3509
5246
7151
864
3539
5257
7249
900
3543
5323
upon
7426
930
3565
5326
7434
987
3575
5387
1125
3646
5404
7442
7461
valuable to the
ration now in many other ways.
Of course we do not know how
1134
3672
5450
7481
1200
3750
5492
1212
3775
5549
7583
7676
1235
3806
5597
7712
Communism
1259
3813
5677
The
this time to provide
as
World
perhaps more—credit
than
during
services
World War II,
although the nature
credit as the
the war
when
ends.
emergency
be
war
over
powers
prescribes,
may
much—and
They
740
other
War has always
profound
of banking, we
field
own
our
record now for repeal of
government's wartime guar¬
anties of industrial credit and for
abandonment of Federal powers
over consumer loans and of such
peace,
experiences of banking
in
War II are
rapidly the war with
extent of some of these serv¬
in what respects it
ices may differ from those of the many differ from the last war, or
last war.
how long it will last.
But our
plans must be based on the as¬
Banks Are Sound and Strong
sumption that it may become total
It is fortunate at this critical war. and a long war. We can hope
point in the nation's history that for the best, but it is safer to plan
and
the banks have never before been
so
and
sound
have
they
such
had
Never
strong.
so
great
re¬
exceeding $170 billion,
vast a backlog of wartime
sources,
so
how''
"know
this
which
with
during
country
to
aid
Bank¬
war.
required to do.
Financial and
economic planning is as vital to
success
in war as military plan¬
real "adversary in
Bank Farmers Tru ^Company,
statist nation.
Com¬
between
Production Act
sweeping that this country
so
could
freedom, there is no
such, thing as a
with
are
ing is alert now to all that it may
conflict
and
Free¬
troversial Defense
2694
torrent.
be
ning.
■
for the worst.
Let
war."
the
Underlying
success
of
all
major fact; the financial and eco¬
nomic conduct of the war ought
to be carried on in
with- such
such
ways,
that the
skill,
and
funda¬
mental-integrity of the- national
[debt and of the credit structure,
behind money,
of the values
"
'
'
ft
■
.
:
mm
■>
.
j
t
7738
7760
7823
1359
3943
5814
7906
1398
3956
5850
7936
1409
3967
5857
7940
10731
1464
3988
5876
1494
4020
6036
7963
7970
10827
10829
1511
4030
6043
7984
1605
4045
6058
7999
10833
10906
1662
4072
6096
8164
1673
4108
6104
1678
4116
6109
4200
6200
4224
6215
not committing the
4277
6223
"planning for the last
Military leaders do not dis¬
1998
4295
6259
2081
4309
6374
2089
4334
6386
2288
4346
6413
2322
4396
6451
8806
2329
4429
6453
8824
we are
of
The
banking, finance, and
wartime.
They, too,
make their plans for future
operations with an eye on
experiences in past wars.
lespect
to
industry
Banks'
the materiel and perc.cntinued on page 31
financing
financial
ment'as
it
and supplies
helping
expands,
Debentures specified above
will be redeemed and
36767
36802
36820
36838
36886
36893
37000
37044
37080
37307
37404
37450
37486
37531
37545
37575
37633
37641
37652
37780
37808
37821
37338
37870
37921,
38042
38074
38095
38481
38658
38662
38740
38800
38842
38857
38866
38975
39127
39248
392o0
39300
39346
39352
39363
39393
39461,
39475
39506
39610
39649
39692
39738
39760
39790
;
;
...
paid on October 1, 19M), at
\Y>11 Street, New York o, N.
niterest accrued thereon to
Dillon, Read & Co., 48
surrender in the ordinary manner.
the
Y.,
the
redemption, Afrmteiest on sa
,
In
case
any
.
of the aforesaid Debentures
,
,
made
'
holder;-
<
'•i'
Dated:
New
'
>
*
*
/
*'
CELANESE
York, N, Y., August 30,
„
,
shall he registered as, to
thereof to the Paying Agent shall be accompanied hy^npropnate
or transfer duly executed
in blank if payment is'to be
to
maintains,
the armed forces, and
Trustee, and bear the following serial numbers:
11537 15551
19613 23439 27445 30875 33557
11569
15564 19627 23583 2747/ 30936 33675
11595 15717 19665 23636 27482 30951
33704
11753 15747 19690 23684 27631
30983 33720
11779 15791
19706 23731 27718 3101t 33758
11802 15844 19717 23758 27753 31039 33819
11854 15893 19734 23790 27773 31046 33939
11912 15953 19758 23832 27832
31205 33974
11926 16050 19792 23862 27872 31230 34022
11952 16053 19794 23938 28002 31266 34139
12144 16067 19920 24075 28021 31277 34162
12287 16098 19991 24149 28033 31283 34233
12321 16154 20009 24170 28036 31341
34266
12378 16188 20049 24171
28084 31343 34300
12400 16221 20112 24176 28158 31376 34314
12415 16224 20160 24350 28243 31449 34379
12532 16257 20176 24374 28575 31558 34392
12577 16258 20197 24476 28607 31620 34404
12641 16294 20263 24489 28617 31624 34415
12697 16299 20277 24580 28662 31625 34448
12990 16321 20468 24604 28853 31640 34471
13285 16427 20531 24619 28913 31703 34530
13340 16441 20895 24629 29002 31827 34578
13501
16755 20934 24818 29029 31836 34582
13626 16833 21050 24854 29224 31839 34630
13799 16878 21102 25200 29288 31851
34658
13910 16898 21179 25379 29383 31884 34675
13978 16948 21316 25447 29391
31943 34731
14016 17026 21344 25496 29404 31963 34736
14057 17179 21490 25532 29489 31979 34741
14074 17181 21523 25577 29560 32062 34809
14087 17258 21621 25647 29591
32073 35058
14120 17298 21729 25675 29632 32103 35140
14511 17371 21862 25705 29763 32207 35177
14524 17430 21946 25764 29780 32223 35310
14542 17444 21987 25804 29786 32270 35312
14548 17522 22093 25810 29828 32297 35421
14719 17627 22113 25816 29925 32328 35476
14723 17653 22119 25902 ^0003 32384 35482
14726 17668 22159 25933 'S0031
32404 35531
14730 17717 22361 25940 30037 32432 35627
14745 17779 22392 25962 30084 32434 35797
14761
17850 22408 26116 30099 32461 35817
14768 18053 22491 26252 30136 32475 35850
14792 18245 22571 26283 30220 32486 35875
14874 18275 22576 26407 30264 32534 36002
14910 18358 22603 26454 30273 32539 36099
14912 18673 22637 26527 30287 32729 36132
14994 18768 22658 26536 30377 32831 36135
15011 18796 22764 265C5 30388 32843 36162
15013 18948 22842 26619 30625 32950 36219
15028 18984 22897 26696 30687 32966 36256
15144 19087 23062 26741 30700 33190 36305
15325 19181 23080 26883 30746 33234 36337
15341
19199 23116 26998 30750 33235 36533
15427 19208 23141 27013 30778 33341
36659
15453 19509 23260 27205 30854 33428 36672
15469 19557 23318 27295 30874 33502 36679
required to be presented and surrendered for redempt on
and payment at the Said office of the Paying Agent on the redemption date with all appur¬
tenant coupons maturing after October 1, 1950, and may have the October 1, 19. 0 co p
attached. Any of the aforesaid Debentures may he presented without the October 1, 19oO
coupon being attached, in which event said Debentures shall be paid at the redemption p
_e
less the face amount of such coupon, and such coupon shall be paid upon presentation and
other
the United States Treas¬
dated
The aforesaid Debentures are
perform are:
services for the govern¬
1, 1965
the provisions of the Indenture
101%% of the principal amount thereof together with
date of redemption. From and after the.date fixed for said
Debentures so called for redemption shall cease.
services the bank¬
Providing credit and
of America
at
Wartime Services
ing industry can
10947
10991
10995
11025
11039
11207
11263
11311
11364
11365
11369
11472
office of the Paying Agent,
in
The wartime
(1)
5678
5696
1961
regard the lessons they learned in
their war experiences in former
wars.
The same holds true with
their
Structures
3831
1811
II,
10160
10214
10333
10356
10422
10491
10662
10700
3930
1754
blunder
9747
9750
9801
9808
9834
9850
9861
9890
9967
10002
10061
10066
10114
1354
exoerience in World
emphasize that by draw¬
9368
9484
9491
9500
9566
9568
9718
1261
8299
8348
8378
8547
8579
8583
8646
8676
8733
me
ing upon our
War
war
Debt and Credit
plans for economic and financial
mobilization and warfare is this
and
progress,
may
must
Must Maintain
duration, or the future movement
of costs and prices.
However, this
was the Treasury's experience in
1, 1945, between Celanese Corporation of America and City Bank Farmers Trust
Company, as Trustee, there will be redeemed on October 1, 1950, through the operation of
the Sinking Fund provided for in said Indenture, $750,000 aggregate principal amount of
the 3% Debentures due October 1, 1965 (hereinafter referred to as the "Debentures") of
said Corporation. The Debentures to be so redeemed have heen determined by lot by City
2733
a
cause
October
431
or
Between
necessary,
appear
413
productive.
war.
3% Debentures, due October
403
it
approximating the cost of
This of course, is be¬
we
do not know yet the
exact nature, its totality, its
even
this
NOTICE IS HEREBY GIVEN that, pursuant to
eco¬
as
or
Celanese Corporation
gov¬
required
is
they
economic
complex
as
regu¬
quirements for money.
There is
no
known means of determining
NOTICE OF REDEMPTION
restoring
is
In the simplest
expenditures.
this means helping the
Treasury meet its borrowing re¬
check-cashing
services for
of men in the
armed
freedom,, curbing the
provide that same support, and
even more if it is needed.
to
and
to win a war.
necessary
their
wrath,
their
skill,
and
their
strength have always proved in¬
vincible
when
they are finally
and fully turned upon the enemy.
structure
to help the
finance its
aban¬
regulation
uurnig tie war.
Throughout the
nation's history, our people have
been
willing to forego many of
their
rights and privileges, and
submit themselves to all that is
but
fight,
is
established by law and
has
and
war
families
and controls already
pointed out that the free men of
democratic nations are slow to
mobilize
these fundamental
banking
United State Treasury
war's
the restrictions
and yet to be
end of the war of
her adversary.
recently
than
weapons
Admiral
produced
War
that
industrial
lence, and for what she may lack
in manpower.
Because of Amer¬
ica's technical ability and indus¬
provided throughout
World War II.
We must be ready
finance
and
believe
one,
tremendous
capacity, when mo¬
bilized,
can
largely compensate
for her strategic
handicaps, for
her
commendable
unwillingness
to arm herself by seizure and vio¬
of
other part
some
or
blow
a
do
strike at Formosa, In-
the world.
such
We
words.
whether the
know
not
with
as
for
I,
of
are
armed
government at the
ter
self-declared
a
exists
it
as
country depends on prompt
It is
of democracy,
enemy
long
so
atomic
of
Federal
(8) Providing branch banking
facilities for Army, Navy and Air
Force
bases
and
encampments,
and
first
of
who
the
in
de¬
services
trust
women
serve
States
tax
Equally important, the survival
democratic institutions in this
sector of the com¬
But
Communism
people to win in
bring eventual victory
that single
munist
of
Although
the eco¬
trial
capacity, this country can nomic powers conferred upon the
design and produce more and bet¬ government by the highly con¬
American
Korea may
offi¬
donment by the
America's
t
s
form
some
de¬
and
with
accordance
The
to
its
end.
and economic
the
onslaught.
government
housing
as
war's
their soundness at tne
upon
weapon.
ma¬
1
has
also
able
to
coun¬
own
cials have stated that Communism
the
and
High
quered.
States
been
in her
war
of
lations.
nancial operations
the nations she has con¬
assist¬
financial
construction
the
administering
the granting of real estate mort¬
gage
credit
prudently
and
in
fi¬
nation's economic and
the
a
in
may
terms,
Providing
(7)
ance
fense
for demoncracy.
victory
Pyrrhic
be
the
in
credit.
consumer
during the war
ought to be carried out in ways
sive.
This adversary has almost that will help preserve the future
unlimited manpower, strategic de¬ soundness of the national debt, the
fense in the vast space and depth dollar, and the credit structure,
of Europe and Asia, and the abil¬
because the economic and social
ity and ruthlessness to seize and institutions which comprise the
regiment troops, labor and the democratic way of living depend
get enough
men
Com¬
This country's real opponent in
is formidable
and
aggres¬
two
weeks,
of
authorities
war
During the
United
goal
real
So
try and
past
te
the
munism.
war.
to
is
quest
would
institutions,
cratic
with Federal
regulation of
and
men
tasks
But
Communism at
the price of economic and social
disaster, and collapse of its demo¬
Treasury; and (5) providing trust services for
for
commercial credit.
Cooperating
serving
positories.
(11) Providing
forces.
victory in war is a certainty.
a
'
(5) Restricting unnecessary
civilian,
non-military
uses
of
(6)
part
it
United
the
for
Treasury
called
that
and cannot assume
not
does
individuals in armed services.
some
have again
we
essential
system
Maintaining War Loan ac¬
subversive activities.
victory in total war is a foregone
conclusion.
Military
leadership
loan
war
counts
blithely assume that military
can
unnecessary
(4) maintaining
credit;
consumer
(10)
military and civilian uses.
(4) Assisting the government in
locating and freezing enemy funds
in this country that are intended
for espionage, sabotage, and other
is vital, but no one
Confidence
pro¬
material; (2) financing agriculture; (3)
war
operating with Federal authorities in restricting
of war,
as
learned in Korea.
viding credit and other financial services to government and
producers of
destruction and hard¬
and all the
integrity of national debt and credit
Lists among wartime services
structure.
are
an
establish.
for
needed
as
rationing
the
of
both
fought for and won at the price
of human suffering, casualty lists,
financial and economic conduct
warns
maintain
must
war
but
taken
conflict between communism and free¬
war," asserts banks in these critical times
sound and strong,
tions.
government
commodities
cultural
economic institu¬
Military victory cannot be
for granted.
It must be
and
social
our
Providing coupon account¬
Clearing services for the
(a;
ing and
(3) Financing farmers^ in the
production of food and other agri¬
all
the destruction of almost
mean
By F. RAYMOND PETERSON*
and
materiel.
war
with Communism would
war
a
nical
militaiy victory. Defeat
of course,
Straggle With Commnnism
ments.
credit for, tech¬
industrial producers of
(2) Providing
requirement for the
successful outcome of any war is,
first
The
forces receiving dependency allot¬
investors.
war's end.
at the
tained
distribute its securities among
ury
dissipated and can be main¬
is not
Banks' Role in Present
13
(905)
Chronicle
The Commercial and Financial
.
.
IC'
principal, the surrender
Uistruinctits
brherthan the festered
'*■
CORPORATION OF AMERICA
1955.
.14
The Commercial and Financial Chronicle
(906)
.
.
Thursday, September 7, 1950
.
k
on
Realty Inv. Co.
SOUTH
securities
firm
business
under
the
another
A
record
assets
net
$9,803,385 increase in
recorded
was
ington
Fund
in
ended
Aug.
30.
the
and
by Well¬
ten
The
increase,
largest for any similar summer¬
time period in the Fund's history,
boosted
net
$135,983,227
120
CORPORATION
BROADWAY, NEW YORK 5, N. Y.
to
$18.39
or
cording to the Fund
vestment
RESEARCH
assets
share, ac¬
interim in¬
a
s
report, made public
compares with
result
a
report stated,
of
the
of
under
maintaining a balanced
in
senior
securities
ton
of
with
Fur d
its
the
net
diversified
July
31,
1950
July
31,
1940
stocks,
three
stocks
peace
Market
Capital
59.(J%
a
peace
ments
major
Industrial
Net Asset
Stock
Value
Average
Per Share
$209.40
126.14
7.58
$3.70
request
from your investment dealer
Distributors Group, Incorporated
Street, New York 5, N. Y.
and
Other
Aug. 30
included
on
tion
The
Fund
to
in
certain
considered
less
growth
or
sult
of
these
and
a
As
economy.
other
a
received
come
invest¬
ment
changes since Jan. 1, realized
security
profits
of
the
Fund
WELLINGTON
amounted to
The Fund
$2,474,375
on
Aug. 30.
that date also had
on
83rd Consecutive
New
common
listed
Quarterly Dividend
in
September 15,1950
President
Philadelphia 2, Pa
stock investments
the
Southern
share, payable Septembe* 30
report
Pacific,
included
Union
Pacific,
Goodyear Tire & Rubber, Amer¬
ican Steel Foundries and Pullman.
These securities, as well as hold¬
ings of Bethlehem Steel common
which
increased,
were
sified by the Fund
as
clas¬
were
among those
expected to benefit in
In
meanwhile
is
that
is
not
thus
taxes
classification
of
eh her
the
economy,
creases
accompanying table gives
mary of the mco.. e story:
or
H.
Funds
reported
in¬
common
L.
Green
and
Marshall
Field.
In its group of peace stocks, the
Fund said
it had
added
to
its
holdings
Participation in
INVESTMENT FUNDS
investing their capital
IN
of
Aetna
Insurance,
American Can, American
Tobacco,
Phoenix Insurance, Philip
Morris,
National Cash Register, U. S. Ply¬
wood, Atlantic City Electric, Con¬
solidated
Edison
and
Illinois
Power. "Most of these
(Series B1-B2-B3-B4)
PREFERRED STOCKS
(Series K1-K2)
at
(Series S1-S2-S3-S4)
The
sum¬
a
Total
in
dividends
10 yrs.
American, in examin¬
ing the last ten
Tke
Keystone Company
,\Um
of J^oston
11
"Within
there
years
of its
per¬
•
Jmy 27, 1950, cov_r ng 6,000,shares, with estimated market
value
of
$9,900,000
on
became
the
were
ten-year
numerous
period
occasions
prices of leading industrial
were
falling — sometimes
very sharply.
There was a bad
drop from late 1940 to the Spring
stocks
'I,
■
of
1942.
Then
there,
was
a
fully
Aug. 28.
income
and
conse¬
Commonwealth
advantag
by
highei
Investment
Company
profits taxes.
excess
/~\
**
MUTUAL
PURCHASE
ii
of
PROGRAM
BOSTON
Xir
A Flexible Plan for
Systematic Investment
A BALANCED FUND
Prospectus on request
from your investment dealer
Prospectus and details from
or
investment
Louis h. Whitehead Co.
dealers
or
North American Securities Co.
Russ
Bldg., San Francisco 4
Value
of
$5.32
19o0.
year
American
Shares
$84.44
$4,415
EATON & HOWARD
New
at
June
9.
Fund
BALANCED
on
high Asset
share for the
FUND
STOCK FUND
new
a
per
of $5.30
In
EATON & HOWARD
High
PROSPECTUSES OF THESE TWO MANAGED INVESTMENT FUNDS MAY
BE OBTAINED
This compared witn a
previous hign
on
mrrnmrnnTTimnM
Selected
Stock
Average
Knickerbocker
due
Aug. 17 reached
Fund
paid
the
per
BY
snare
interim
REQUEST TO
EATON
the
YOUR
&
INVESTMENT
DEALER
OR
TO
HOWARD
$0 08 distribution—
an
$0X4 lrcm
sible
by
This
was
aaoption
t..e
servative
15.3%
made
pos¬
of
con¬
a
and equiva¬
cash
lent
position curing the latter part
of May and early June.
A large
portion of the cash was reinvested
after
the
The
Korean
Fund
is
in
now
TWENTY-FIVE YEARS OF INVESTMENT MANAGEMENT
24 Federal Street
>
S
t
Months
KlW
mi
the
mm
'
Last
Combined
net
Six
assets
of
10
Keystone Custodian Funds at
mar¬
ket
1950,
values
amounted
July
on
742,300 reported
it
is
disclosed
ports
S4
made
10
the
Bond
end
Fund
as
compares
31,
1950,
close
of
July
31,
upon
repio"
ABBETT & CO.
LORD
Sept.
on
a
Investment
Managers
and
The
6.
the
of
laORl). ABBETT cNi C<>
Ne»
Yom
—
Chicago
—
AtUnt.
—
Lo» Annrir
total of 52,532
of July.
assets
932,741
Shares, Inc.
a,,.
re¬
Funds B3
shareholders
Funds reached
Net
American Business
1950,
by the annual
public
of
Jan. 31,
on
of Keystone
number
at
31,
Vw V s
to
$209,000,000, an in-r
of $4,257,700 over the $204,-
crease
Montgomery Street
SAN FRANCISCO
a
cash.
In
333
BOSTON
decline.
n.arket
fully in¬
vested position with less than 5%
in
BOSTON
and $0.04 fiom
mcon e
capital gains.
the
of
Priced
Low
increased
B3
to
$38,-
of July 31,
1950. This
with $37,061,610 on Jan.
$31,419,446
and
the
last
1949.
fiscal
The
the
at
year
on
number
of
July, 1949. The asset
share on July 31, 1950,
$17.65 compared with $17.05
was
big
break in the Autumn of
1946, and
per
Jan. 31, 1950, and $15.19 at the
close of July last year.
A
The report of the Keystone Low
Priced
when
Cohjpess Street
■
busi¬
a
Securities and Exchange Commis¬
paid
to 7-31-50
Knickerbocker
value
formance, reported that:
Boston 9, .Massachusetts
Se¬
2500
Industrial
on
50
Becomes Effective
registration statement of Div¬
idend Shares, Inc., filed with the
Dow-Jones
<
.
Last 10-Year Record
Selected
be obtained from
4%
A
deducted
State
affected
+
at the end of
Selected American Looks
COMMQN STOCKS
Protpectus
may
is
is
tax
+11%
+1.0%
purchases,"
the report stated, "were made at shares outstanding for the same
prices which appeared to have periods were 2,205,892 on July 31,
discounted in good part the ..ex¬ 1950; 2,173,897 for the six months
ending Jan. 31, 1950, and 2,068,656
pected increase in taxes."
BONDS
M'"'
Fund
this
+33%
+1.5%
!
peace
holdings ot
Brands, Swift & Co.,
Continental Oil, Standard Oil of
California, Texas Co., Westing1 ouse,
Chicago Corp., Northern
Natural Gas, United Gas, Peoples
Gas Light &
Coke, S. H. Kress,
,
-
in its
or
and
well-
every
interest
and
+7.6%
bond
INCOME
stocks
Standard
J>
Certificates of
semi-war
a
series
MULTIPLE
also
Keystone Up Four Million
the
bonds
crlculated,
quently
priced
Dividend's Six Million
National
which
Federal
are
which may do comparatively well
in
Custodian
to 7-31-50
or
semi-war
a
economy.
K, :ystone
to 7-31-50
INCORPORATED
a
unrealized appreciation on in¬
vestments of more than $4,000,000.
net
MORGAN,
before
taxes
79.3%
important consideration.
an
war
re¬
in
bond
en¬
66.0%
-
40
effective
loss is only
part of the investment story. In¬
attractive
expected to benefit in
semi-war
needed
expense
rela¬
July 31, 1940
that in the
reported
readjustment
stocks
mons
WALTER L.
that
$6.01
$83.26
bonds and preferreds; and 19.87%,.
in U. S. Governments and cash.
higher taxes were sold
and purchases were made of com¬
20c per
ber
ness
v
"But,capital gain
1.29%
both
portfolio,
en¬
capital
hancement
invest¬
that
2.31
-
—
pi t al
c a
stocks
economy.
Dow-Jones
FUND
in view of
to stock of record
are
balanced
distribu¬
gains
low
bond
Low
6-13-49
average
Securities
Market
6-23-O0
series
Relates Bond Story
$11.28
$83.26
,
ible seniors; 18.26% in investment
63 Wall
Shares,
appreciation
Percentage
war
appreciation bonds
and preferreds; 0.68% in convert¬
on
Dow-Jones
hancement
of net assets in
prospectus
ago,
years
PERFORMANCE
tion
were
so-called
as
ending
000
ten
American
which may do comparatively well
in either a semi-war economy or
a
National
common
commons
among
classified
groups
in
bond
National
investors might do we*l to remem¬
Total
these
and
had
30
assets
National
1950,
sion
Shares
Se'ected
ad¬
31,
curities commented this week that
CAPITAL
and
ending Jan.
PERFORMANCE
Break
vestor who owned Selected Amer¬
pro¬
commons
Aug.
on
total
stocks
Group Securities, inc.
BOND
Korean
stocks
Stock Average, from the
point of view of capital:
a semi-war economy.
In line with this policy Welling¬
of
NATIONAL
July 31, 1949.
justed to
STOCK FUND
six
"You may be interested in see¬
ing what has happened to the in¬
policy
a
months
Stressing
Korean
gram
commons
falling
prices, the net result for the
is a plus figure of im¬
Portfolio changes were made,
war.
the
as
of
dustrial
June 30,
on
made
THE COMMON
net
$126,179,842, or $17.80 a
last.
The report revealed various ad¬
justments in the Fund's portfolio
share
instances
and
still owns it. The following table
compares his experience with the
performance of the Dow-Jones In¬
of
assets
recognizing these
six
and $4.01 for the 12 months
years
ican
yes¬
This
terday.
the
portance.
of
total
a
when
recently
even
other
stock
months
two
here
But
war.
&<
previous
National's Bond Series have per¬
formed as follows in the past:
3,722,525 at the close
July 31, 1950, was $5.24 com¬
pared with $4.94 for the previous
North Koreans started the present
Months
Record in Two
SECURITIES
the
with
on
Wellington Sets
NATIONAL
for
compared
of the last fiscal year on July 31,
1949.
The asset value per share
By ROBERT R. RICH
Co. from offices at 1 Ann Street.
Prospectus upon request from
your investment dealer, or from
19o0,
months and
Mutual Funds
of The Realty Investing
name
31,
3,581,316
NORWALK,
Conn.—
Edward C. Sterling is engaging in
a
July
shows
Common
assets
on
$16,870,921 and
Stock
July 31,
compares
Fund
S4
may be obtained from your local
investment dealer or The Parker Corporation,
1950, of
with
as¬
200
sets of $17,694,218 for the previous
six months ending Jan. 31,
1950,
and
$14,917,806
on
July 31
a
year
ago.
The report shows the number of
S4 shares
outstanding
as
3,220,830
Diversified Investment Company
Prospectus
Berkeley St., Boston 16, Mass.
ti
S3
TWENTY-FIFTH1
A N
tl
HIYMJt SAR.Y
YE A R
Number 4940
172
Volume
.
.
(907)
Chronicle
The Commercial and Financial
.
eight
include
exhibits
other
the
Role oi Bank Credit
pieces of handwrought silver de¬
and
Craver
which will
News About Banks
rxamlin,
be
A
known
iue
(Sept. t
yesi.ii
day
that the
noted
joint announcement
n a
and Sun" of Aug. 31 it was
gram
ment "came as
New
Brooklyn Trust."
y
\<
V. Mc¬
Laughlin.
resident of Brooklyn
Trust Ci mpany of Brooklyn, N. Y.,
that
at
posed
the
ul
Sept.
Soon after
the
merger announcement there
was a nominal bid of $220."
In its Sept.
1 issue the paper
from which the foregoing is taken
approved." A week
were
(Aug. 31), Messrs. Gibson and
ago
in
a
joint
an¬
nouncement,
had revealed that
"an agreement providing for the
merger
of the
Brooklyn Trust
McLaughlin,
into
Co.
has been
agreed upon by the
Chase.
meetings
special
It
holders
of
Brooklyn
Manufacturers
stock
of
and
v*83
Co.
and
ca
the
the
taxi
by Man
the
mc
This
va.ue
assets
a
priate
Co.
Trust
facturer
Trust
Brooklj
Manula
urers
subject
stoc.c
Co. stocknoluers,
Trust
Co.
will,
authorization, by
)
to
the
of
the
stockho
.crs
stock
distribute to its
..holders a Siock dividend
are for
each 12 shares
sto
own
of
one
In
held.
lar
addition
si:a
Both t
per
cash
di
Oct.
16.
was
declared today.
stock dividend and the
_
will be nayable
stockholders of
Idend
to
1950
record Sept.
increase
facturers
the next regu¬
d.vidend of 60 cents
quameri./
000
necessary
increase,
18, 1950. The $3,750,of capital of Manu¬
Co. required for
Trust
proposed stock dividend will
entirely from recoveries and
Valuation Reserves. The payment
of
the
stock dividend
will not
affect its surplus and undivided
the
come
profits heretofore shown. At the
time of the merging of the two
transfer
be
from undividea
Trust
Manufacturers
of
will
$6,000,000
institutions,
1950.
to
$2,326,578,000. The
were
Co. will take
the 26 offices of the Brook¬
Manufacturers Trust
over
lyn Tru. t Co. The entire personnel
of Brooklyn Trust Co. will join
the
staff
of
Manufacturers Trust
Co."
that the
provides that
Mr."
M
iCuehlin,
President
of
Brooklyn Trust Co., and John
Gemniu., Jr., presently directors
of the Brooklyn Trust Co., will
become
embers of the Board of
Directors of Manufacturers Trust
Co. Mr. McLaughlin and George
A. Barnewail, Vice-President, will
become .e pcctively Chairman of
the
Executive
Committee and
It
is
merge,
Vice-Ik
Trust
In the
further
stated
agreement
ent
of
-
New York
Manufacturers
-
•
"World-Tele¬
tral
Trust
&
ihvj
Hoga- I
J.
since
1939.
New
from
Cen¬
He
was
Auditor
Assistant
appointed
with
been
has
He
Hanover
in
1935.
Smith, Second VicePresident of the Bankers National
Hollon
B.
Life
N.
Co., of Montclair,
Insurance
J
and
has
a
elected
been
a
director
member of the Trust Invest¬
Committee
ment
tive
51 years
as
Committee
one
of goods and
at
roughly $250
valued
billion, and in order to meet an¬
nual payrolls in the neighborhood
of $140 billion—just to mention
two jobs—our economy is making
of
of
some $28 billion in currency
coin, circulating outside the
banks, plus checks clearing our
use
and
banks at
of
some
an
annual rate in excess
$1V4 trillion. Thus the $28 billidn
of currency—large
that point the
pears—is dwarfed by the $l*/4 tril¬
of
role
Trust Of¬
bank
in
credit
nation's
lion of checks
the
econ¬
By the
capi¬
talist economy
is
based
the
paid by banks each
token it is the $90
same
billion of demand
Our
K.
Kenneth
deposits in the
nation's banks turning over more
DuVall
upon
of money as a medium of
use
though it ap¬
year.
omy.
of age.
joined the Fidelity
an office boy 34 years
than
12
tute
the
times
change.
exchange. By means of it the mass
bear
a
that consti¬
year
major
medium
of
ex *
It is highly important to
mind these points con¬
in
of highly specialized
services is translated
production
cerning the $90 billion of deposits
now held by banks: (1) they exist
largely as a result of credit ex¬
As
tion that go to make our standard
tended to borrowers
private or
bank, he served as a director of
of
living.
That is to say, the government—rather than through
the A. W. Faber-Castell Pencil Co.
worker spending a lifetime prothe deposit of currency or coin;
of Newark, the Heller Bros. Co.,
oucing only wheat, or only shoes, (2) the total has more than dou¬
an Ohio firm with a Newark of¬
readily exchanges the product of bled'since 1941; (3) the ^mount
fice, and the Forest Hill Land Co.
his effort for the myriad products in existence in the future (as in
and Forest Hill Association, both
of all other workers.
the past) will depend largely upon
of
Newark
and
both associated
The supply
of money at any and fluctuate with the loans and
with the Heller company."
given
time,
therefore,
becomes investments held by the commer¬
Mr. Crean, it is added, was a
vital to the processes of produc¬ cial banks.
The volume and rato;
member of the New Jersey Bank¬
tion and consumption^ As we all of turnover of demand deposits,,
ers Association and the American
know, prices in a free market are as the predominating medium oi'
Institute of Banking.
a
reflection of the impact of the exchange, is a prime factor in
thq
if.
if
if
supply of money upon the supply twin problems of inflation and de¬
.The common capital stock of the of goods and services.
flation in the nation's economy.
:
Union
the
Fidelity Union Trust Co.
Trust Officer of the merged
the
come
goods
and
the
into
high levels of consump¬
-
National
Scottsbluff
*
*
*
and
of
the
the
Execu¬
of
Bank
Scottsbluf^, Nebraska, has been
increased; effective Aug. 24, from
$225,000 by a stock
$75,000, it is learned
from the Aug. 28 Bulletion of the
Office of the Comptroller of the
$150,000
to
dividend
of
Currency.
*
*
American
*
These facts are the key to the
Ir^ the beginning money was
supplied by government which alternating emphasis placed by
printed currency or coined metal. organized banking on the need ag¬
The widespread acceptance of the gressively to expand bank credit
currency thus printed and, even¬ at one time and the need to exer¬
tually, the coin thus minted, rested cise restraint in making loans at
on
belief in the implied promise another time. These facts explain
of the government that,
within the shifts in Federal Reserve pol~
reasonable limits, its currency
and
As infla¬
time are in
to
be fol¬
Currency and coin as the sole or
nounced on Sept. 5.
Mr. Smith employees' manual outlining for
chief
medium of exchange be¬ lowed by the dominance of de¬
the
350
members
of
its
personnel
was
formerly a director of The
came cumbersome, so in time in¬
flationary forces at another, it is
National
Bronx
Bank
of
New the employment policies and ben¬
dividuals deposited it with well the part of sound monetary policy
efits
offered
by
the
bank.
The
York, now in liquidation.
known
business firms
or
indi¬ to encourage restraint in credit at
ft
*
*
booklet gives a short history of
viduals and paid for goods and one time and expansion at another*
Irving Trust Co. of New York the bank, showing its growth in services
purchased by issuing a
deoosits from $277,074 in 1913 to
announced on Aug. 31 the election
Role of Banking, 1929-1949
written order to pay on the holder
to its board of directors of Philip
$137,498,512 in 1948 at the end of
With our fundamental premises
cf the deposit. In this manner the
35 years, and $150,000,000 in 1950.
F. Gray, senior loaning Vice-Pres¬
established
we
may,
with
modern use of "checking account" thus
Likewise
the
personnel policies
ident of the company.
profit, go on to trace the general
money evolved as a supplement to
are set forth, followed by a listing
t-zz
role
of
bank
credit
in
the
nation's
currency and coin in effecting the
and description of employee ben¬
An exhibition of handwrought
economy during the past two dec¬
exchange of goods and services.
such
as
retirement plan,
silver will be on view in the lob¬ efits,
ades from roughly 1929 to 1949.
As the next logical step the in¬
Co.
Trust
L.
New
of
five
the
of
branches
of
York,
the
E
st
an¬
Manhattan
R ver
Sav¬
Sept.
6 to Sept. 29 arranged through the
courtesy of the Craft Service De¬
partment of Handy & Harman, re¬
ings Bank of New York from
finers and fabricators of
metals,
as
of Kansas
program.
will
include
silver
presentation
pieces, works done by contempo¬
rary silversmiths and work done
by teachers attending Handy &
Harman's Fourth National Silver-
Workshop
Conference
held in August at the School for
American Craftsmen, a department
of the Rochester Institute of Tech¬
will be
Plaza
The
on
and
presentation
pieces
is
il¬
of the new
(Sp^ial to The Financial Chronicle)
LONGMONT,- Col.—Dwight L.
is associated with Wad¬
Sullivan
Mo.,
Reed, Inc., of Kansas City,
.
..
.
.
Dale H. Wise Opens
(Special
.*
to The
Financial Chronicle)
DENVER, Col.—Dale H. Wise is
engaging
from
in
a
securities business
offices in the Colorado Na¬
tional
Bank
will
include the
rose-
given to the City
of New York by the City of Lon¬
don and loa^d by the Museum of
by J. L. Auld,
City of New
York.
Some of
,
Opens
Lawrence F. Gardner is engag¬
ing
in
offices
securities business from
at
11 West 42nd Street,
a
New York
City.
ascendancy
one
only
dividual
arranged
to
establish
In
a
studying
the trend
of ba: ■■?£
deposit with the well known busi¬ deposits since 1929 it is interestin $
the
period into t; >
ness firm or
individual by giving to divide
note
of
1929 to 1941, tl y
period, and 1941 to 194 J,
period of war and postwar
expansion. It is particularly use¬
ful to do this because a wide*
promise to pay instead
in currency or coin.
came to have banks that
parts,
or
turning
Thus we
with
deposited
them
that is,
prewar
the
paid checks against not only cur¬
rency
but
against a deposit created by spread misunderstanding has lei,
acceptance of a promissory *many observers to the false con¬
note.
This could only mean that clusion that'the inflation we know
banks were not only handling cur¬ has resulted from deficit financing
also
ihe
rency
but
by the government for ten years
before the war as well as the un¬
avoidable deficit financing of the
and coin entrusted to them
important they were
more
actually creating money by
grant¬
ing credit.
war
period.
that between.
the purpose in re¬ 1929 and 1941 bank deposits in the
viewing them is to establish the United States rose by some $21
backdrop against which our econ¬ billion primarily as a result of an
.increase
in
the
country's gold
omy functions today.
holdings of approximately $20 bil¬
"An
address
by Mr. DuVall at the
lion. Some $6 billion of the addiWhile
well
Bldg.
Lawrence Gardner
silver gilt, designed
tionary forces at
the
a
Wit*-: Waddell & Reed
dell &
icy from time to time.
insur¬
view at 40 Rockefeller
water bowl in
the
booklet
building, completed in 1947.
bank
smithing
nology.
The
lustrated with pictures
precious
The
benefits.
ance
coin would remain stable in value.
City, Mo., has issued an
insurance and life
sickness
part of their non-profit
educational
shown
City National Bank & Trust Co.,
Harvey
President,
Schwamm,
bies
Co.
surplus.
The combined deposits
of the merged banks as of June
20,
versity.
a
before the firm merged with
National Bank to be¬
ago,
degree of Master of Business Ad¬
ministration from New York Uni¬
•
the issuance of Manu¬
to
Bank
resident
graduated
was
Crean,
distribute
order to
fundamentals
*
Crean
Trust Co.
Co lege wnh ihe degree
u
production
at
risk
review
Fidelity Union Trust
was
"Mr.
of Bachelor of Arts and holds the
of the value of Sc-ch
after providing appro¬
i\ serves.
"Price
aie
announces
Nelson
of
City,
Faverfoi
after
at
arrived
was
adjustment
York
effective.
becoming
o^nce
ine
In
year's
services
Scene
today's monetary-
on
scene.
in
Perhaps
look
us
—
iora
Mr. Hogenauer, a
racturers Trust Co. upon
_ef
44th
and
Auditor of the company.
as
nauer
be received
which will
Trust Co.
oi
Hanover
New
of
appointment
Brooklyn
of
credit
the
In its
Aug. 28 issue, the Newark "Eve¬
ning News" said:
He
26.
to
Central
Co.
representing
assets
.oxfc
routine of
collecting loans—caus¬
and
contract.
also
Co. of Newark, N. J., died on Aug.
zation exclusively.
value per snare of
ci net
agr
the
the
of
is
It
Let
to expand
use
or
the two institu¬
*
J.
William
ficer of the
Trust
in cash, such stock
together
i
ing
Da¬
tions will be retained.
providing
deposits,
withdrawal,
check-cashing
and
foreign exchange facilities and are
available
to
persons
connected
h
Nations organi¬
82,000 sh„r-s of stock of Brooklyn
Trust Co. outstanding one share
of
Co.
Trust
and employees of
office
Nations
Drive
Services
limited
con¬
of
The
of
making
consequences
daily
loans
Monetary
Today's
bankers fail to grasp
many
of the
Trust
&
serious than at outset of World War
more
far-reaching
their
be placed
Branch
Bank
Home
Stamford
Sec*"*'* Hat
*,T
River
Street.
each
for
n
East
at
the stock¬
Trust Co.
merger,
receive
to
are
the
of
Bank
United
its
nto
McLaughlin in part said:
ditions
to
stockholders.
the
before
is
rien institution is to be known as
Company of New York on Sept. 1
moved
of Messrs. Gibson and
and
which
plan,
*
Chemical
The
approval," and that the terms
would be announced
"immediately after action by the
two
boa. as. '
The
Sept. 6 an-
terms
the
have approved
directors
the
that
Too
the
*
*
*
of the merger
the
Messrs. Rider and Kelly as
nounced."
and
"Under
reported
stating
Register"
"Evening
the
that
understood
is
Sept. 6, "for formal authorization
nouncen ent
far
Da¬
rien, Aug. 25, in the New Haven
meeting
each
of
airectors
at
from
proposed merger will be in over-simplification
we
excess of $38,000,000 and the com¬
bined trust fund over $30,000,000.
might
sum¬
It is added that all present officers marize and
adjourned
about
two
hours before the decision was an¬
the
advices
Press
stated that the combined resources
that the
io
sociated
credit demands is
II.
of further inflation due to increased private
President of the Darien bank.
yesterday morning it had two sep¬
arate proposals.
One was from
Manufacturers and the other from
institution
Judge William A. Kelly,
As¬
tion and
Trust exec¬
managements of the two institu¬
.,l was added at that time
sented
E. Rider,
utive committee went into session
tions,
agreement would be pre¬
joint state¬
by Harold
issued
President of the Stamford institu¬
the
"When the Brooklyn
of Stamford, Conn., has
been made known in a
stated:
Manufacturers Trust
the
Co.
This morn¬
Darien, Conn., with the Stamford
ment
stressing importance of banking in
After
plan for the proposed merger
Trust Co.
Wis.
today's monetary
scene, along with its inflationary and deflationary aspects, Mr.
DuVall reviews role played by commercial banks in period
1929-1949. Points out rapid rise in credit since war was due
more to price increases than to growth of economy.
Calls atten¬
tion to rapid expansion of instalment and real estate mortgage
credit, and contends, for banking system as whole, prospect
*
of the Home Bank & Trust Co. of
ing the bid was $214.
Manufacturers
into
no.
Trust Co.
From the same
without interruption.
Brooklyn
the
of
merger
Trust
institutions
two
for
market
the
in
also quote:
"This spurt started last June at
$132 a share. Since then the ady^nrp hac
'"L-arp
-a pi—
"the terms of the pro¬
v,
climax to a sen¬
a
we
paper
of the
meetings
Separate
director,
on
George
and
k,
rise
sational
announce¬
merger
D. Gibson, President of
Manufac urers Trust Company of
by Harv-
President, First National Bank, Appleton,
Broadway.
*
*
Economy
By KENNETH K. DuVALL*
Walter Rhodes will
and
view at 291
on
CAPITALIZATIONS
Wc
In Nation's
Turner,
James B.
Adda Husted Andersen,
Bankers
and
ETC.
REVISED
It
view at
on
silver done by Madeleine
BRANCHES
NEW OFFICERS,
be
Cortlandt Street; handwrought
_6
CONSOLIDATIONS
NEW
executed by Margret
signed
13
these
simple
facts
are
of
Wis¬
The record shows
known,
■
School
of
Banking,
consin, sponsored by
University
Central States Con¬
21, 1950.
ference, Madison, Wis., Aug.
Continued tin page
33
The Commercial and Financial Chronicle
(908)
%P
when
Inflation-It Host Be Conquered,
Not Just Restrained!
University of North Carolina
of inflationary pres¬
controlled, points out price control and rationing
be
must
sures
ineffective
are
Federal Reserve powers are
you-go"
The United
nessed
mood
i
"Fair
our
Deal"
-
President
re¬
quested. For
a
could
one
t e 11
from the
news
go:
n o
Bunting
is
services
precisely
exists.
Given
sensible
fairly
the
The
seek out those
expenditures
measures
necessary
to meet the emergency
with
the
which
are
maintenance
and
preservation of that system;
surely the approach of sincere and
comprehending free enterprise
would
not
subsitution
im¬
be
the
of
govern¬
decree for market forces
primary
economic
of
source
as
decisions.
inflationary
Administration
increases
has
abetted
consumer
and
Opposition
pressures.
asked
individuals
on
porations
tures
(and
no
of
an
by
tax
cor¬
curbs
on
credit.
mortgage
this
to
for
and
to
The
program
was
tion.
all-out
economic
mobiliza¬
At first it seemed
that most
members
of
Congress were more
sympathetic to the Baruchian sug¬
gestions
than
requests;
likely
the
to
President's
it
appears
most
Mr. Truman will get
now
that
what he asked
crease
for
along with the
impose
the
more
stringent price and wage controls
when and
are
if he decides that they
It is
necessary.
the
belief
of
the writer that the general powers
by
requested
in
the President,
conjunction
monetary
Reserve
to
that
the
existing
of
the
Federal
of
Governors, are
do the job at hand,
nroper
will
powers
u^ed
with
powers
Board
adequate
and
not
of
use
only
these
make
un¬
necessary future imposition of a
rigid system of direct controls but
is
a
preferred alternative to these
controls
in
combating
a
general
price rise.
The
signed
formulation
to
control
rest.-upon
sources
on
ary
of
an
the
of
policy
inflation
anlysis
upward
of
de¬
must
the
pressures
prices; such insight is necesfor an examination of the ad¬
vantages and limitations of alter¬
native control measures available.
A
free
erates
on
in periods of normalcy,
necessary than before.
included
this
to
And,
program.
given
required
tax
he will
immediately
of
individuals
lays.
and
V
This
be
can
in
who,
of
in
contact
NSTA
our
Con¬
with
.your
con¬
better
out
after
Good
We do hope
luck
Herb, and
outstanding job in the Association's behalf.
weeks "Ad Libbing" notes have been appearing in
many
in
that
order
with
our
entire membership could get
Personally, I think it brought
our
work.
quickly various ideas and made for greater progress than
more
letters to the
members would have
Convention
Our
Manage
in uniform again.
now
your
acquainted
will
month
Advertising Committee depends
conditions. Again I refer to
proving himself as our number one
all at the Convention.
us
at
Virginia
upon us.
undoubtedly
held,
ever
meetings of
be the
done.
Beach
largest
the
and
last
week
most
of
successful
this
we
to be there to participate in the discussion
association. Make it a must.
so try
your
HAROLD
Herbert Blizzard Go.
advertising
medium
securing ads, is
"Chronicle"
the
in¬
have
John Weller to
excellent
meet with
For
politically feasible.
The opportunity to avoid stum¬
bling into costly and cumbersome
controls is
this
thinks for
many
aren't
creases
for
throughout the country.
Blizzard,
Chairman
the
strong feeling expressed by
Congressmen
to
(for
the
"pay
war) as we go," it can hardly be
that the
deadline
unforeseen happenings and
many
Herb
very
argued
the
The success of your National
on
for the Federal Reserve
to make its contribution
System
in
temporaries
grants of authority are
new
is
vention Issue, so please forward
your order and copy direct to the
"Commercial and Financial Chronicle" in order that it
may be
are
B.
SMITH, Chairman,
Advertising Committee,
Pershing & Co., 120 Broadway, New York 5, N. Y.
NSTA
,
P.S.—Our
advertising total to date is
NATIONAL SECURITY TRADERS
John M. Hudson,
over
$15,000.
ASSOCIATION, INC.
Thayer, Baker & Co., Philadelphia. Chairman
accomplished
through rationing and price con¬
trols. It must be recognized, how¬
ever,
that these devices do not
dispose of .inflationary pressures
they
merely
contain
them.
Clearly, if the government in¬
Security Traders
Association, has addressed the following letter
to the
i'
President of
each NSTA
"One short month from
Affiliate:
now your
Public Re¬
lations Committee will submit its report to the
delegates assembled for
tion at The Cavalier,
port
a cor¬
aggregate increase in Federal out¬
enterprise
enough
system
income
to
gen¬
n^'-nit
the
its
creases
increase
in
will
feature
our National Conven¬
Virginia Beach. Our re¬
literature
of
constructive
a
nature
relating to investments and. finance. A
display will be set up making available to our
delegates various pamphlets and articles of
interest.
Herbert
H.
Blizzard
John F. Weller
ing
PHILADELPHIA, Pa.—Herbert
H.
Blizzard
has
been
recalled
to
active service and announces that
F. Weller has accepted the
or
we
or
are
ask¬
ideas of
a
access
to
any
interesting literature
reprints in quantities of 200
forward
trading operations of the
firm of Herbert H. Blizzard &
1421 Chestnut Street.
Affiliate,
to submit any comments
have
you
management of the complete busi¬
and
you
worthwhile nature to be passed along to your
fellow members around the country.
Should
John
ness
<
"As President of your
the
to
or more, please
undersigned to be included in
John
M.
Hudson
display.
our
Co.,
"Please
may
concomitant
to
of
be
report to me promptly in order that your Affiliate
directly represented in our Public Relations Committee
than
the
War
value
II),
the
will
be
of
available
on
prices
And
expected
be
felt
the
may
it may
that
in
that
black
period
of
confidently be
markets
during
in
and
general upsurge of prices
the controls are lifted.
In
and
rationing
tary
measures
sault
upon
rise.
The
tax-credit
combination
is
a
tax
an
available
for
same
all
controls make
that
as¬
attack
incomes
the
consumer
at
credit
with these measures, Federal Re¬
used
the
powers
to
can
and
should
be
make
overall
refined changes in
monetary situation as
needed. The powers of the Board
of
Governors
to
that
associated
in
its
York
Stock
New
Kurt
Wechsler
with
has
the
firm
York
office, 35 Wall
St., New York City. Mr. Wechsler
formerly was a partner in Heimerdinger & Straus.
Wanna Bet!
Edward
H.
Morfeld
influence
the
down
your
Add 5.
Multiply by 50.
Add
-
the
"
/ ;
change in your
(Any amount under
pocket.
a
„
;
loose
dollar.)
Subtract 365.
Add 115 to total.
Result
figures
the
will
are
be
your
amount
of
the
first
two
the last two
age;
change
in
your
pocket.
C. F.
Try This One
on
Yourself
Corley
President:
First
the
purpose
not
Board's action
post-World
War
II
•
Reserve
singleness
characteristic of
Second Vice-President:
Third Vice-President:
Substract 615.
Treasurer:
First
Secretary:
figures
and
age.
will
the
be
last
Hagensieker
Edward H. Morfeld, Morfeld, Moss & Hartnett.
W. T. Kitchen, Scherck, Richter Co.
Multiply by 50.
Result:
Earl
Vice-President:
Add your age.
Add 365.
during
the your phone number
price
rise, figures will be your
John W. Bunn
by Clarence J. Maender, G. H. Walker & Co., Chairman, have sub¬
the following slate of officers for the year 1950-51:
Multiply by 2.
added, however, that the effective
Eugene V. Koch
mitted
Add 5.
a
B. L. Schlueter
age.
ability of commercial banks are
the flexible element of these
gen¬
eral control measures. It should
be
Federal
Kitchen
Multiply by 2.
Write down your phone number.
of
T.
Yourself
Write
loan-making and deposit-creating
possibilities requires
W.
Figure This One Out for
durables
(the output of which will be most
severely affected by the rearma¬
ment program) more difficult to
purchase. In complete harmony
serve
New
become
price
expenditures
time
the
nounce
controls
double
decrease
measures
of
Exchange and other leading stock
and
commodity
exchanges, an¬
re¬
expanding expenditures: the
upon
Walston, Hoffman & Goodwin,
members
mone¬
of
sources
Nominating Committee, appointed by the Board of Gov¬
Security Traders Club of St. Louis, which was headed
of the
Walslon. Hoffman
con¬
approach,
represents
the
a
after
contrast with the price
trol
liance upon general tax and
the
will
pressure
control
The
Kurt Wecbslar With
pur¬
be temporarily
suppressed, but it is still there in
the form of increased cash bal¬
ances.
SECURITY TRADERS CLUB OF ST. LOUIS
Buckley Brothers.
ernors
goods
for
chase. The resulting upward
pres¬
sure
with
was
report."
taxation
individuals
services
was
formerly in the
trading department of Hallowell,
Sulzberger & Co. and prior there¬
rate
World
of
utilization
of
in
as
incomes
of
individuals after taxes plus
the "income" of governments plus
the
a
Mr. Weller
expenditure
(financing these expenditure? to
large extent by borrowing from
banks
purchase,
at
prevailing
prices, of goods and services cur¬
the incomes
of
a
rently produced—i.
e.,
rate
drastically without
to
power
Sept. 20
of
necessary
units—effecting a de¬
roughly equivalent to the
and
diate
reorientation
in
cut
buisiness
greater
Banking and Currency.
testimony
Mr.
Baruch
the necessity of imme¬
on
this
such agreement
responding
mittee
In
AU LIBBING
economy,
Since there is gen¬
desirability
increase in Federal expendi¬
for
military preparedness
spearheaded by the Baruch testi¬
mony
before
the
Senate Com¬
slrezsed
and
re¬
imminent
—
The problem at issue is how
control
of the
the
of decreasing
one
non-military
outlays) the problem is largely
one
of putting a damper on the
the
view
to
our
problem of controlling in¬
flation, then, is
Notes
of the Public Relations Committee of the National
give one reason for wonder¬
ing just how many of them have
a sympathetic
understanding of a
free
enterprise
system.
Surely
the approach of those sincere be¬
lievers in
the
superiority of a
free market system should be to
gress
ment
of
use
outlays and aggregate out¬
eral agreement on the
mediate
In
guides
as
put at its approximate maximum,
pro¬
be forthcoming,
NSTA
can
increased
expenditures.
adherents
used
present
are
recent antics of members of Con¬
consistent
of
prices must rise.
a
might
gram
L.
Robert
now
that
efficient
individuals in
money
Congress
seems
and
This
happening at the present
the
Federal
government,
situation
in
would be. Al¬
though it
function
anticipation of
price rises and "shortages"—at a
time
when
a
full
employment
hectic
scrambling
is
and
what
results of
the
goods
markets.
stepping up the tempo of their ex¬
penditures — the government for
military reasons, business units
reports
the
flow
business units and individuals
touch and
yvas
the
time:
while it
short
individuals, business units,
governments rises relative to
into
dispose
their
more
and
what
and
and
most
any
of
doubt
no
decisively,
only
period of time.
Inflationary pressures arise when
the rate of the combined expendi¬
tures of
life
c
than
be
can
immediately
No
in
bond-sup¬
these guides, far
from being luxuries to be enjoyed
saving is just equal to
value of goods and services
the
simply
dislocation
corporate
produced
measures
its
measures,
program.
wit¬
eco-
our
There
our
of populace. Says
sufficient to contribute to "pay-as-
a
paradoxical reversal of
Congress seemed
in
the
to
impose more controls
roles:
n o m
States has just
Thursday, September 7, 1950
port program.
sources.
absorb accumulating cash at disposal
to
over
sources
unless combined with heavy taxation
measures
.
inflationary tendencies; moreover,
they leave prices free to perform
Assistant Professor of Economics,
Bunting, maintaining
by
that these general
conquer
By ROBERT L. BUNTING
Professor
anti-inflation
its
subverted
were
.
.
B. L.
Schlueter, Newhard. Cook & Co.
C. F. Corley, C. J. Devine & Co.
Elliot H. Stein, Mark C. Steinberg & Co.
Eugene V. Koch, St. Louis Union Trust Co.
National Committeemen: John W. Bunn, Stifel, Ni'colaus & Co.;
Earl
Hagensieker, Reinholdt & Gardner.
Continued
on
page
33
Number 4940
Volume 172
(909)
The Commercial and Financial Chronicle
..
.
Gol. Troster Recalled
To Active
Labor's
Our
Duly
Reporter
called
tive
to
By E. S. PILLSBURY
An advancing bill rate
market, with the intermediate and long-term issues join¬
ing the uncertain group. Although in the midst of an important
short-term
11
the
307th
of
rnade
e
This
f
o u
time
e
1916
that
both the
Oliver
J.
the
Mexican
has
he
Chief
set
re¬
War
was
The subscription period for part
Border,
Troster
service. / During World
of
the
the
the
in
National
Association
Dealers,
as
or
a
Se¬
which
mers,,
he
in
joined
1946.
Singer will continue
active partner of the
,
whether
as
Formation of D.
6
Associates,
business
holder
Inci,
,of interest rates.
a
stock¬
and
has
relations
Hegarty,
conduct
to
financial
in
S.
M.
been
an-
the 13
decided
as
the sale of outstanding ones
question
M
..
'
who
commitments
note
should
course,
are
accustomed
to
the
tragedy of monetary inflation and
run to cover when
they see it in
Our failure to make
redeemable in gold
automatically closes the door to
one
means
of protection.
If our
the
offing.
our
money
convertible into gold,
only one, im-i
slipped, on portant factor leading to a sounder
construction fiscal policy. Convertibility would
be the sole answer,
but1 it
opera tions, not
a
very
distinct (con-»
from
100c
to would be
the
following:
Our dollar has
as
E. S. Pillsbury
20c
points of speculation over the early fall refunding will be cleared
up in the not too distant future.
The money markets will then
have an opportunity to see how many scars have been left by the
controversy between the two monetary authorities over the level
■
~
well
of
giving or
accepting such
Treasury will have to
since
we
money were
it would be one, but
tribution.
"In
considering our financial
against
promises to pay. During the same policy, there is one point - that
should be emphasized, and: par¬
period, the dollar has lost from
to
businessmen - since
50 to 80% of its value in every ticularly
other
direction.
Furthermore, many seem unaware of the con¬
prices have become muddled to sequence of a prodigal govern-i
started
.
issuing
currency
.
Associates Is Formed
:
Those
people are not apt
inquire into nor doubt the
safety of their money as a store¬
house
of
value.
Europeans,
of
to
are
purchases of
by the Cen¬
Then there will also be an answer to the
the
fiscal integrity,
value.
borrow directly from the
Reserve Banks in order to pay off holders that for the time being
at least prefer cash to other government securities.
All of the
as
&
system will depend upon the size of the
securities,
Banks.
tral
to
firm.
D. M. S. Hegarty
not
new
partner in Troster, Currie & Sum¬
Louis P.
is a
trustworthy
will be watched with much more than
open
cur-
our
storehouse
action of the government market. Whether
there will be changes in reserve requirements of member
banks of the
Colonel
general
Inc.,
Troster will continue
are
umption
rency
of the refunding having been
effect upon the future
and
of
•
by the money markets. The amount of
iy4S which Federal will underwrite will have a
months
Dealers Association
curities
a s s
passing interest
York
New
books
to guarantee
that
(Sept. 5 through Sept. 8), it will not be long
by the Treasury
which the
Branch,
active
Security
great corporations
before the results of at least one phase of the gigantic opera¬
tion will be made known.
What will happen during the time in
Brehon Somervell.
J Long
our
pressured
now,
Army Serv¬
ice Forces, in the office of Gen¬
eral
which
being
Troster
turned to
II,
day since the dollars decline in
purchasing value month by month.
future wage advances, life pen¬ Because of their great faith in ou£
sions, etc. This is, of course, being own type of government, and be-^
done on the cause of a century and a half of
Many of
are
after having pre¬
Important Developments Ahead
Colonel
Movements
been
attempt to insulate against the uncertainties
an
taps and the eligibles again weakened
g an
on
centered
obligations.
sizable in this end of
have
are
viously recovered their equilibrium.
an.
career
which b
securities, in
.
t h;.
r
in
Army
ip
1.;
e
market
the list.
-
mar^s
the
government
Swops and switches have really been very
Owners of the called issues are exchanging them for other
holds the rank
of-co Ion
the
in
assumption present currency is trust¬
"collapsing" and thus bond buyers as well as wagebeing "looted." Urges immediate action to head
off a catastrophe and advocates legalizing free gold market.
Warns, if buying power of dollar continues to decline, our
economy and way of life is threatened with destruction.
earners
mainly in the refundable issues and the shorter-term
He
on
has been
The
Operations
known
up
worthy store of value, points out purchasing power of dollar
not too distant future.
was
t. 1.
p
s:
u.-
Army, it
Electric Co.
industrialist, taking note of current pension and
plans built
wage
higher coupon called obligations are being bought, as
bills and other outstanding issues are being sold by the Reserve
Banks. How this will work out will be a matter of record in the
ities.
Re¬
placement De-.
pot,
rates
Federal
cordingly, the muddle of the money markets carries on with the
Central Banks the main centers of activity in government secur¬
command¬
officer
Prominent
is following the policy of firming
in order to combat the inflationary forces. Ac¬
operation,
refunding
on
ing
Chairman of the Board, Century
continues to keep pressure on the gov¬
ernment
ac¬
duty
September
5
Security Package
And the Collapsing Dollar
Governments
in the securities firm of Tros¬
ter,-Currie & Summers, 74 Trinity
Place, New York City, has been
as
on
By JOHN X. CHIPPENDALE, JR.
Oliver J. Troster, general part¬
,
ner
17
Investors Move
Cautiously
*
:
:
,
out;of align¬ ment. Many of them feel that our
will
run
their
getting worse. The deficit policies
get
forces that" have muddled prices course and that when-they
Ascription books open for the refunding. There is considerable self- severe
enough so that inflation*
refunding of the so-called "play it safe variety" going on. Other - and driven the dollar's purchasing
power down' were
never
more really gets snow-balling, you will
short-term securities which yield slightly more than those pres¬
have a change in personnel in gov-,
They are
ently being offered by the Treasury are being taken on as replace- - powerful thati now.
ernment and in the party in power..
fully capable of pushing the dol¬
-ments for the called 2s and 2V2S. The feeling is, keep to the nearerlar on down' to 1 /20th or l/100th They may be right in assuming
Term side of the market, with the best possible return, until the
They are
of its former purchasing power if there will be a cnange.
trend of rates has been determined. The somewhat more venture¬
no
one
cares enough
to do any¬ wrong, however, in assuming the
some operators, however, have gone out a bit farther and are using
The latter figure change will necessarily be towards
the 1952/54s as replacements for the issues which are being retired v thing about it.
a
conservative group. History
is
approximately where
by the Treasury. The opinion here is the 52/54s would not be ef- ; (1%)
the
franc
landed
after
going doesn't back them up in that con¬
-fected by higher short-term rates.'
clusion. On the contrary, history,
The belief that a 1%% certificate rate or higher is in the off- : through numerous collapses. How¬
is replete with examples where,
ever, somewhere along the line,
ing is tending to keep the 2J/2S of 1956/58 and the 21/4 s of 1956/59
if a serious crash occurs, the rab¬
before a currency reaches a low
runder wrap?.
These two issues would be in for some downward „
ble-rouser moves in.
When a se¬
level, people are sure to awake
price adjustments under such conditions. Nonetheless, there has
rious monetary crisis occurs, your
to what is going on and to lose
been no sizable liquidation of these securities despite the feeling
chances of a socialistic form of
confidence
in
their
currency.
.that higher yields are in the offing.
The opinion is that if prices
conditions and general government are at least ten to one
.should recede, it would be a buying opportunity and'more funds - Panicky
stagnation are sure to follow the stronger than the possibility of
would be put into the 2Vzs and 2!/4s of 1956. The lack of higher
destruction of confidence in a cur¬ your getting a conservative gov¬
coupon bank issues will bring plenty of buyers in these two obli- ernment to correct the situation.
rency; so the time to correct the
gations if there should be some price irregularity because of the
Just
consider what occurred
in
practices that are doing the dam¬
feeling that a 1%% certificate rate might become a form of meas¬
Europe in our own times and
age
is
while
the
confidence
still
uring stick in the near future.
think of the rise of Hitler and
persists,
Mussolini, and the causes of their
A very fine analysis of the "col¬
Eligible 2Y2s of 1972 Continue Active
assumption of power, and you will;
lapsing
dollar"
problem
has
re¬
The only remaining issues in the eligible list which still seems
recognize that continued excesses
cently been made by Mr. Henry
to-be getting considerable attention is the 2J/2% of September
of
monetary
inflation
lay
the.
H.
Heimann,
Executive
Manager
1967/72. Although the price of this obligation came down with the
foundation
stones
for
dictator¬
of
the
National
Association of
rest of the long-term securities, buyers have not ceased to make
ships, socialism,
and regulated
Credit Men, of 1 Park Avenue,
commitments in this issue in fairly substantial amounts. Whether
peoples. Perhaps if this were fuiiy
this bond would be vulnerable with a higher certificate rate is • New York City 16, N. Y. This ar¬
understood, there would be much
ticle will be found in the July 14,
open to question.
The fact it is the only eligible security giving a
more
aggressiveness in demand¬
1950, issue of its "Monthly Busi¬
yield of more than 2%, together with the limited floating supply,
ing a halt be called to the way
ness
Review."
The whole paper
does not make it unattractive as a replacement for the called 2s
the government is conducting its
is well worth thoughtful study. We
and 2V2S. The smaller commercial banks continue to be the prin¬
fiscal affairs. After all, a debt of
quote only three paragraphs that
cipal buyers of this issue, despite current competition from the
$6,400 on each and every family
deal specifically with the collaps¬
larger money center institutions.
is something to cause concern."
ing dollar and what is likely to
The ineligibles were again set back, but are showing a tend¬
result from mishandling it.
The
Now Is the Time to Act
ency now to back and fill near the lows of the year. Federal has
following
is part of. what Mr.
;
enough control over these securities to keep them within desired
The time to start to head off
Heimann has to say with refer¬
limits. The 1952 eligibles appear to be the leaders at this time,
such a catastrophe as Mr. Hei¬
ence
to such currency:
•despite the demand which still makes the Vies the important issue
mann foresees, is now.
One of the
"This is a time when business
as
far as yield buyers are concerned.
simplest ways to start about it is:
must do its' own thinking about
to make it lawful to buy arid sell]
our existing economy. Regardless
gold in free markets with our.
of its appearance, it is not healthy
paper currency. To be sure, that!
by any known standard of evalu¬
is not a final solution of the mone¬
again picked up in the government mar¬
weekend. This was not unexpected with the sub-
where many are way
Volume and activity
ket after the long
-
ment
and
are
,
houried.
Mr.
Hegarty,
of the company,
President
recently resigned
'
as
Vice-President
&
Co.,
Inc., to organize the
Offices are lo¬
corporation.
new
cated at
City.
52
Broadway, New York
Hegarty
Mr.'
mander in
World
both
the
War
the
II
was
a
Com¬
U. S. Navy during
and
member
a
Navy
and
Army
of
Price
He is a for¬
Adjustment Boards.
mer
invest¬
banking firm of Blair, Rol¬
ment
lins
the
of
Vice-President of E.
H. Rol¬
lins & Sons, Incorporated, a pred¬
ecessor
Inc., and
of
of
Blair,
a
Roliins
&
Co.,
former Vice-President
Commercial
Investment Trust,
Incorporated.
u. s.
TREASURY
★
★
★
BILLS
CERTIFICATES
NOTES
BONDS
'
-
Lyman Logan Willi
Iowa & Nebraska Inv.
Clark, Dodge & Co.
Bankers Field Day
'
Clark,
Dodge
&
Co.,
16
Wall
Street, New York City, members
of the New York Stock Exchange;
announced
have
Aubrey G. Lanston
& Co.
INCORPORATED
15 Broad Street
-
45 Milk Stieet
NEW YORK 5
BOSTON 9
HAneock 6-6163
Lyman
Since 1941, Mr. Logan
ment.
been
S.
associated
with
Argus
had
Re¬
Corporation as economist
senior researcher, specializ¬
search
'
Whitehall 3-1200
that
Logan has become associated with
the firm in its research depart¬
and
ing
in non-ferrous
metal, build¬
and con¬
ing, steel, rubber, paper
tainer industries.
MOINES, Iowa—The Iowa
Investment Bankers
Association are having a
Field
DES
and Nebraska
Day at the Wakonda Club, Des
Moines, Iowa, on Sept. 14, 1950.
The day will consist of breakfast
in
the
morning at the Savery
Hotel,
events,
usual
and
golf
lunch
game,
special
and dinner at
the Club.
Registration fee is $20 for mem¬
bers; $25 for guests.
ation.
'
'
"The
tary problem, but
continuing decline
in the
will
it is
a
step that;
bring the price problem out
value of the dollar into daylight. Moreover, it can be;
should have been accomplished at no expense' to j
protested much more vigorously anyone. Few problems are solved;
riot only by every citizen, but by by turning off the light, whether
business
and
particularly those obscurity is brought about by an
businesses dealing in future prom¬ iron curtain, or by exacting laws'
ises to pay.
This decline consti¬ that prohibit open market opera-,
tutes, of course, an appropriation tions in a metal like gold that has
of one's life' savings or an indirect served as a standard for compar¬
confiscatory tax. It definitely dulls ing values for thousands of years.
one's inclination to practice thrift The overall result is to compel;
purchasing
over
and
the years
it
dom of
makes
uncertain
the wis¬
storing dollars for a rainy
Continued
on page
29
13
(910)
The Commercial and Financial Chronicle
.
.
out
Truman
Canada
Securities
i
In radio address
victory, but
L
McKAY
WIT,MAM J.
Canada
ranks
first
anion
%
ex¬
is
not
time
operated
porting nations in value of fishery
products shipped. In 1949 t/ese
scale,
were
worth almost U. S. $103 mil¬
coast.
lion.
The
Government's
same
Norway,
year
a
major competitor, exported U. S.
$93 million worth of f.sh and its
In
products.
landed
Canada'
however,
of
tot: 1
with
1,802 million pounds
ranked
only
servations
eighth.
of
a
catch
last
year,
These
contained
are
issue
current
Bank
weight,
of
The
ob¬
in
the
Canadian
Commerce
"Monthly
Letter."
Canada's
Commercial
leadership value-wise is based on
a large
part of her fishery exports
being relatively high-priced
species such as lobster, halibut,
whitefish,
canned
fresh,
and
frozen
or
salmon.
is
nor
equipped
is
schemes.
open
The
the
on
expected
It
Japanese leaders did.
hoped to
In
industry
resources for it.
"fireside"
a
nation
Sept.
reviewed
to
the
the
the free
on
worship
to
raise
way,
the
further
has
1
Edward J. Bourbeau
a
t i
scale
industry.
With
for
quick freezing, re¬
frigeration and canning, as well as
ward
better
formed
with
offices
at
trawlers
and
other
fishing
equipment, the whole
field
of
activity has expanded in recent
New
years.
products
market forms show
is
entering
The
the
life
industry.
Govern;, ent
started
ago
new
new
fishing
Dominion
months
some
and
that
f:sh-
a
ANGELES,
where
Spring
Street
to
curities
to
long-term
in.
vv
>:n 1,
being taken
stocks of fish,
preserve
'*
pr-rtict
e a
R. J.
President
carried
formerly with
by
the
Fisheries
Re¬
of
salmon, halibut and
mainstays
of
the
there,
has
been
developed.
herring,
industry
weil
relatively
Further
sole
Ground
and
the
like,
and
cod,
the
tuna
office
'•*
»
The
the
Atlantic
greatest
pansion.
added
$140
into
about
million
for
entrance
of
ex¬
New¬
Confederation
$35
million
value
fish production in
to
the
of
Canadian
1949.
Including
Newfoundland, the Atlantic fish¬
eries
produced
of the
landed
fisheries
time
in
the
J.
Bourbeau
and
with
him
about
two-thirds
weight of Canadian
1949.
At
Atlantic
in
the
coast
present
industry
both
those
York
New
State
the
novel
Fair
of
Syracusans
in
a
Street
"know"
the
just
to
cuse"
of
companies,
products
corporations
is
"Syra¬
a
look
can
to view
Municipal
Letter
the
Corporation
a
to
not
chaos.
intend
Small
Business
Foundation.
sizes
how
movie
small
owned
are
Manufacturers
Building
A. E. Ames & Co.
the
on
Representatives
from
the
to
Two WmII Street
of
&
road
Arts
Co.
new
4-2400
/
NY
1-1045
Boat on
O, Mao.
to
FiNAh;ci^rj^HpoN^pj.E}) (f j
DENVER, Colo.—John F. Efirhart, John C. Greer andrWRliAm
M.
Winberry are with Hamilton
Management Corp., Boston Build¬
ing.
•
.
k
,
.
.'MC
,
,1
'I
•
?
(J'h
,
been
and
swal¬
history of the
1930s
anything, it is that
world
acts of
war.
If
ap¬
the
United
course
is
sure
the
one
The
free
world
chose.
Nations
made
its
meet
historic
military aggres¬
sion with armed force. The effects
-of that
-beyond
taken
our
j
i
world
joined
but
the
nations it
the
unceasingly
decision
will
Korea.' The
by
best
the
ham¬
defense
just
a
Soviet
Union
has
repeat¬
ment
destroyed
the
neighbors.
disrupt
those
It
of
It
to
dominate.
tremendous
has
independence
has
sought
countries
It
it
has
armed
could
built
gression
of
preaches
struggle
practices
ag¬
gression.
to
circumstances, the free
have
been
against
The
United
compelled
to
measures
selves
the
aggressive
sign of the Communists.
Nations
to
them¬
protect
de¬
the
Korea,
nations
free
Fifty-three
gether for
Every
to
of
meeting
work
proud of the role that
has
to¬
in
aid
to put
played
in
imme¬
the
firty-nine
United
Nations
the
the
to
United
Nations
down this aggression.
Thus
brunt
the
far,
fighting
fallen
has
armed
forces
Korea
and
the
of
of
the
upon
the
Republic
United
the
addition,
naval
Australia,
Great
of
States.
In
are
in
from
action
Nations
been
have
Zealand
now
United
forces
Canada, - France,
the Netherlands,
Britain,
New
and
and
the
under
command.
Fight¬
ing planes from Australia, Canada
Great Britain have
and
joined the
operation.
Ground
by
pines,
Turkey,
been
have
forces
fered
Thailand,
Australia,
France
British
Some
their
on
are
of¬
Philip¬
the
troops have landed in
Korea and
All
way.
of
under the flag
serve
of
United Nations and under the
the
Nations commander,
United
Gen¬
Mac-Arthur.
eral
U.
S.
Our
Forces
own
Well
Fighting
justly
our
coun¬
bringing
this
about.
with their gallant
men,
Korean
commander, have held the
breach.
In
five
have
troops
than
are
United
moved
into
them
of
eight weeks,
of
from
States
combat,
bases
more
6,000 miles away. More men
the way.
on
Fighting in diffi¬
every kind of
American troops have
overwhelming numbers
cult country,
hardship,
of
than
less
divisions
the
naval
under
invaders.
Communist
air
and
forces
Our
been
have
carrying the attack to the military
bases and supply lines of the ag¬
gressors.
Our
be
can
ag¬
response
challenge.
Thirty have already pledged con¬
and 'freedom.
peace
American
na¬
move¬
was
the
of
members
held back
able
was
tq.act as(it„did in Korea because
the free n.ations in the years since
World War tl have created a com¬
determination
imper¬
armed
open,
joined
some
these
nations
between
diate.
de¬
own
imperialism
but
peace
nations.
achieve¬
far
fense.
try
free
these
brought the free
in
the
up
forces
Communist
program
Communist
turned
more
cooperation.
to
going
are
tions closer together.
When
the
Communist
these will
take
the
have
national
In
of
step,
and
edly violated its pledges of inter¬
not
we
enlarged
and other countries.
The
United
Already
Taken
International
have fought with grim
men
gallantry.
of
All
those
of
know
how
place
on
We have taken
after
step
strength
The
to
record
them to
In
the
yo'u.^
in
step
Korea
and
for
unity
nations.
free
recall some of
who
us
us,
old
are
worthy
that
they
long
Nations
into
In
epecially
soldiers,
are
and
of
a
honored
tions
to
1947,
countries
Iran
aid
which
Turkey,
United
military
Greece
helped
and
those
to
keep their indepen¬
against
Communist
at¬
dence
be
firm
felt
far
action
Nations
is
hope of achieving world
peace. mY'
ft is^dtr liberty and mine which
is 'involved. What is at stake is
valor
their
of
their
in
soldiers
tacks and threats.
but also
line,
Nations
in
de
the
other
1947,
by
Janeiro,
the
treaty of
joined with
we
American
nations
the
guarantee
safety
Western Hemisphere.
In
1948,
checked
nist
since
the
the
the
that
gether
in
time,
nations
free
in
a
of
forces.
still outnumbered.
valiant
sults.
We
about
weeks
hold
3,500
the
their hard
But
fight
is bringing
firm
a
square
enemy
base
miles.
it
Plan
Commu¬
of
Europe;
has
and,
brought
closely to¬
more
has been ham¬
framework.
The
and
effort
to
The
airlift
defeated
drive
the
enemy
strength
attacks.
is
recklessly
We
believe
spending
his
in desperate
the
invasion
maining is to crush it. Our men
confident, the United Nations
are
command is
confident, that it will
be
The power to
is
in
the
free
1948
Soviet
nations
crushed.
the
now
front
between
the
line
battle
in
the
in
Korea
struggle
freedom
and
tyranny.
fighting there is part of
larger struggle to build a world
But
a
do this
being gathered in Korea.
Right
is
Berlin
1949,
heavy
loss.
economic
strong
of
For
mering, now at one spot, now at
another,
some
times
at
many
points
at
once.
He
has
been
to
the
re¬
has reached its peak. The task re¬
Marshall
danger
subversion
the
by countless
beaten back each time with
Also
Rio
in¬
These United Nations troops are
Na¬
against
our
to
has
maintain
to
dependence is shown not only by'
and
began
economic
and
The determination of the South
Koreans
supporting activities of the whole
population. They are giving every
possible assistance to the United
at
invasion.
we
fighting fiercely
freedom.
own
existence
the
protect
Communist
In
by
Republic of
battle
1946, the,United States gave
support to the successful
taken
have been
country.
our
the
to bring the
full
action
liberty for
soldiers of
their
the
.
w&jti^ped
Francisco.
San
served
The
o'f^these steps is im¬
Let'Vnfej
1945,
United
Create
the lead
create
among
pressive. '
to
Unity
aggression
aggression elsewhere.
other
decision to
(Special to
Fifty Congresa Street
the
us
which
investments.
Hamilton Managem't Adds
ahead
went
If
The
explain to visitors the story of
the
pered all efforts to achieve
its
have
allowed to succeed in Korea,
it would be an open invitation to
New York 5, N. V.
WORTH
courses.
would
were
in attendance
are
possible
course
peasement of dictators is the
Grounds.
Cohu
on
Korea.
two
Syracuse office and the
New York office
INCORPORATED
Fair
of
faced
teaches
coun¬
Liberal
brutal; attack
a
Republic
happened, the free and
loving nations of the world
ment.
by thousands of
and
and
lowed up their victim. That would
have been the course of appease¬
.The exhibit is housed in the
try.
fa¬
the
peace
gressors
a
stockholders throughout the
happen.
Communist
from
limit our action to diplomatic
protests, while the Communist ag¬
busi¬
part of
the free enterprise and profit
sys¬
tem
as
the
giant corporations
which
and
to
empha¬
town
and
have
to the
infiltration
of
to
small
that
ago,
turned
tactics
our
let
months
One
Economic
is just as much
nessman
CANADIAN STOCKS
The
the
For
to
live
have
effort,
1950,
an
by
pos¬
to
peace.
upheld,
When that
Rebel," sponsored by
Union
Steps
is not
forward only
war
the
this
together
roll of those who created and pre¬
part, we
miliar
short movie entitled "A
a
history,
ultimate
Two
lux stock
quotation machine in
operation and visitors are invited
Provincial
more
inspiring fact.
imperialism
trans-
every
people
nations
in
us
mon
been
fighting
single banner to uphold
subversion
a
this
for
horror of another world
do
representative
The Cohu exhibit shows
We
of many nations are
an
we
played.
Government
else
ever
If the rule of law
who
prominently dis¬
are
hearts.
important.
more
or
under
services of those local
or
all
them
the rule of law in the world. This
actual
the
world.
strength
our
our
has
cause
men
featured.
showing
certificates
of
aside
put
of
ounce
all
For the first time in all
explained
visitors
to
companies
addition
stock
be
can
every
with
No
Cohu people that "mysteries" and
effectively
the
in
supreme duty.
misunderstandings of high finance
Wall
with
fighting for the proposi¬
peace shall be the law
are
shall
Yorkers generally are thor¬
oughly familiar. It is felt by the
more
nations, are
their lives the
freedom
that
and
New
and
Our men, and
of other free
of
with
Central
and
liberty.
We must and shall support
upon
featuring
are
so
of the earth.
list
twenty corporations with
some
which
idea
with them and
day in and day out
just
and
lasting
for
stand
na¬
com¬
we
liberty and self-gov¬
Most
Soviet
a
men of ours are engaged
in the age-old struggle
men
tion
for
ernment
over.
its
or
years,
desire
in
in
crete
a
our
in
the
our
else¬
with all nations. We have
worked
more
cause
State
York
ours
brother,
a
or
of
land
thoughts and hopes are
defending
Syracuse (Sept. 2-9), has hit
this
fighting in Korea. I know
for human
firms.
Exchange
of Cohu & Co., in an exhibit
the
in
thousands
you,
five
beyond the needs of its
They
at
objectives
our
with
son,
These
,
once
associated
was
At NY State Fair
New
are
we
mine.
Cohu Go. Exhibits
In
CANADIAN BONDS
a
your
the
The
to you
why
about
what
constantly
of their Los Angeles
prior thereto was a
at peace
controls
want to talk
talk
husband
that
Henderson
of
present
President's
the
of
and
I
have
was
principal of Bourbeau & Douglass.
firm
present
opportunity
The
foundland
fisheries
three
to
the
follows:
families
of
Mr.
great variety of fish by-products
a
in¬
to
last
proof of
with
Korea,
As
Edward
freedom
We have given
peace.
are.
is
manager
industry, are capable of further
development. The manufacture of
also has many possibilities.
forces
double
text
there,
over
fisheries,
plan
a
armed
or
Tonight, I
expansion is
limited somewhat by controls
fishing.
the
about
Secretary. Mr.
Bourbeau
if,
the
worked
sible
revealed
address
D.
Fareed
as
President Truman
number.
Daniel Reeves
On the Pacific Coast, production
„the
A.
in
Treaty,
Atlantic
military aid to strengthen the
ialism
is
achieve
to
later in another address.
millions,
and
Treasurer.
search Board.
have
to
also
crease
Vice-
,
spawning ground
exploitation. In addition, biological
research, essential to the full de¬
velopment of fisheres. is be'ng
on
He
Hender-
s o n
aggression
American
During
he
announce
The
and
the
to
E. J. Bour-
are
Presi-
are
have
which
se¬
u,
With
and
promised
busi¬
dent
measures
the
undergo
new
sacrifices,
being
Officers
ness.
b
prospects of the indu0
Ed¬
—
is
en¬
the
gage in
Co.
&
the
Na¬
wiped out. That is why
people are united
in support of our part of this task.
and
longer
510
South
eries development and rehabi1 Ra¬
scheme.
Calif.
J. Bourbeau
tion
further
I
LOS
down
put
freedom
own
work
to
will
methods
to
in
United
up
the
of
of
that
North
with
freedom
'
have
Being Formed
better
bound
are
We cannot hope to maintain
will
o n
harder
Go.
future,
Must Support Freedom Elsewhere
the
satellites,
civilian popu-
the
needed to
sources
jobs,
our
own
Russia and her
fish.
fishery
re¬
develop a larcre-
our
own
Korea.
'
Canada
our
right to live without fear.
these
tions
of
in
the right to choose
present action
ag¬
gression
children
right to plan
All
d
e n e
our
outpost
their freedom.
common
please, the right
opinions, the right
we
our
and me
of
cause
for
notice
the
Today,
ahead
Atlantic
would
ments
as
developments
be-
served
of
to
sacrifices
new
1949,
tions
munity
of life—the right to
way
express
and
on
not
democratic
North
preserve
Hitler and
as
The
Step
to
S.
in the Korean
threa t
States,
Tru¬
Harry
long
a
the
of
Western Berlin.
come.
Crisis
predicted,
however, together with the open¬
ing up of new areas for fishing,
such as Great Slave Lake, provide
some
scope
for
expansion
to
meet the strong demand for fresh
report
all radio networks
over
1, President
man
fish¬
ing industry is limited by the
availability of resources. A well
organized conservation program,
water
public to
final
to
as
work harder and longer.
must
Promises another talk
of
and
(fresh water)
optimism
expresses
armed forces must be increased "for
warns
come," and civilians
the
east coast
up new
inland
is
nation, he
underestimate power and will of United
west
of
to
to
Korean Crisis
on
Reiterates faith in United Nations and cautions Russia
large a
efficiently
development
modernize the
and
as
as
that
as
Much
research
on
it
Reports
Thursday, September 7, 1950
.
the
Volume 172
in which
Number 4940
just and lasting
a
.
.
The Commercial and Financial Chronicle
.
peace
That
is
why
in the United
we
States must increase
our
zen
de-
own
fense strength over and above the
forces we need in Korea. That is
why
continue
must
we
with
other
to
nations
free
work
in-
to
combined
strength.
The Congress is now acting
crease
our
request to
my
of
gram
aid
to
These
th?If
ni-p
are
ourselves
more
worfdT greatesi
greatest
defense
our
their
Free
the path of peace
are
strength
which
of
these
have
forces and
charter,
iney
as
worjd
our
word
Korea two
we
and
maintain
we
these
long time
had
million
active
about
in
duty
Our present
plans call for increasing this num-
further increases may be required.
In
addition
to
increasing the
of
armed
our
forces,
must
we
step up sharply the production of
guns,
tanks,
planes,
and
other
military equipment. We shall also
have to increase
essential
stockpile of
expand
our
materials,
and
industrial capacity to produce
military
wr
We
ivi'*
tu
the
_
have
which
and
the
meet
to
resources
confront
Our
us.
agriculture have
stronger
or
We
use
will
never
much
as
strength
to defend
ourselves
been
as
of
is
and
this
needed
establish
peace.
years
the
Japanese genmiscalculated
badly,
ten
erals
when they thought
ago,
would
not
be
able
to
use
we
our
effectively
the defeat of aggression.
when
the
power
Axis
dictators
of
threat-
the
tragic
uphold
the way of mutual
operation and international
we assert that mankind
and
hour
world
At this criti-
uivp
tn
maintain
,0
f0
find
can
history
country
0ur
unnn
co-
peace
advancement along
the
in
of
way
neace
peace
and
and
the
of
has
nf
been
iustlce
justice
the
of
armed
armies
and
Sors
govern-
the aggres-
against the United Nations.
-
„
w_
Fourth:
We
\
hope
particular
in
united JNations
ana
gainst the American people, who
have always been and still are
their friends.
Only the Communist imperialism, which has already started to dismember China,
could gam from; Chinas involve-
any
part of Asia for ourselves,
like that of
mosa,
any
should be settled by
misery
conflict
fall
The task which has fallen
Tn
onP
oarrvint?
it
other
just the same."
unon
isa great
out
alone.
The
the
mission of
Fleet is to keep Formosa out
7th
the
peace,
wp
conflict.
Our
purpose
is
,
.
the
nations
of
the
have fallen undef:its control.
rar
We
freedom for the
We
must now divert a large peoples of Asia, but we also want
share of this productive power to to help them secure for themdefense purposes. To do this will selves better health, more food,
require hard work and sacrifice better clothes and homes and the
by all of us. I know .all of us are chance to live their own lives in
prepared to do whatever is neces- peace. The things we want for
sary
in the cause of peace and the people of Asia are the same
freedom.
We
have
never
yet things we want for the people of
failed to give all that is needed in the rest of the world.
that cause, and we never will.
Seventh: We do not believe in
!, i In order to increase our defense
aggressive
or
preventive
war.
-effort rapidly enough to meet the
guch war [s the weapon of diedanger that we face, we shall tators,
not
of
free
democratic
not
•
only
a
Calhoun in Our
Congress Today?
g£.*
It is true that
Congress, through
torship
strength and courage for the days
as
they do
There will be
on
its victims,
profit for
no
any
consulted by the President, but
only
after he had made
the de¬
to wage war, and most of
Congressmen have publicly
expressed their strong approval
of that decision, regardless of its
ahead,
cision
these
LETTER TO THE EDITOR:
crucial
of
the
vested
without
,.Z_iisA^™5Ute'notmake the
?,i™
w
rioole
a
rrkof ic
That is
to
ovo™,t0
execi
and
The
treasure.
issue
at
should
is
that alt
have
been
to any
decision.
v
.
Granted, too, that the President
Congress can point to.manyprevious events in our history
where the President has usurped
the power to initiate war in vio¬
lation
oi
the provisions of the
and
The most vitally significant and
important
nportant event in our history has
_ecurred
occurred
right under our noses
hardlv
Congress
prior
Correspondent criticizes alleged abdication of its rights by the
Congress in President's decision to send troops to Korea.
in
a
President of
United States of America."
/
blood
pomt
asked to register their votes on Jt
Political Revolution
causing
in
cost
Oui Bloodless
nntmairofhc
laws of Congress.
Constitution
in
and
defiance
-———
of
—
the rights of Congress, but those
events
merely
evidence
add
to
dent sbaR be tbe Commander-in- monarch, not a republic. Those
Chief of the Army and Nav.y and former events were comparatively
purp0ses>
of the militia of the several states minor and did not result in too
ernment fr0m that of a Republic wben called into actual service of much of a political upheaval. Nor
Monarchy. Not in every re- the United States."
did they result in a permanent
spect, since we are still permitted
Although
the
Constitution change in our form of governtQ votg^ but -n .connection with makes the President the C.-in-C. ment.
But the decision at issue
one
of the mogt sacred and im- of the armed forces, it does no.
transcends all those former ones
eyent
•
thig.
revoiutjon
political
bloodless
bas
for all' practical
transformed our gov-
namely: the
i
power
undertake
any nation,
to initiate war.
to
valid
submit
evidence of the truth of the foregoing by the following facts.
#
Republic vs. Monarchy
The primary difference between
Republic and a Monarchy is
that a Republic is a state in which
a
the sovereign power resides in a
certain body of the people (the
elecorate),
not conquest.
'
a11
Is There
ask
and meanness and to give us its individual leaders, has been
and
is
exercised
by
representatives
elected
by
and
to them only.
That
was the original form of our government when
we
adopted our
Sixth: We believe in treeaom resp0nsibie
f°r
Police
or
any
heavily on those who act as
tools for the Communist dicta-
international
action, and not by the decision of
the United
States or any other
state
War
be
iv
Uehtfrn? tbe~ knock-clown," drag-ouTlight
Tbei.fi1rstTTparagirapb ^ Section show that this particular Korean
tQ a finish ^ •. deg|rveg Tgat II, Artie e II, states: "The Presi- affair is an action taken by a
be.mwlf^-or forced into fighting
aSa|nst tne
Whether
among nations. We have responded
Action, "A Rose by
have to that call. We will not fail,
name would smell
Korea
all
—1 1A u:"5—
dollars pronto to continue it.
as
It will not spread
imperialism
war.
for
ened the world.
■
nations
people
the
East. That is one of the reasons
why we are fighting under the
Let would-be aggressors make United Nations for the freedom
no such mistake today.
of Korea. We helped the PhilipWe
now
have over 62,000,000 pines
become independent and
men and women employed—more
we have supported the national
than
we
ever
had before.
Our aspirations
to
independence of
farmers are producing over 20%
other
Asian
countries.
Russia
more
than
they were in 1940. has never voluntarily given up
The productive capacity of our any territory it h^ acquired in
manufacturing
industry is 60% the Far East; it hasnever given
greater than it was 10 years ago, independence to any people who
economic
again
us
penalties
Communist
other
ments into the fight of
0f
and
want
not
other terridemands tory in dispute, should be settled
industry peacefully. We believe that it
productive,
more
economic
Hitler
do
We
general
or
the
and
in
events
shown
We believe that the future of For-
ability
'ne
the
Fifth: We do not want Formosa portant functions of
Ability and the
the
The
fighting in Korea to expand into
.,
Resources
We
Third:
ment in war.
supplies.
u
Have
all
Korea.
draws
Army,
that pledge.
on
freedom
miW
"a"?ns "r
without exception, to
the
join with us in this great work,
Under the direction and guidance of the United Nations, we,
with others, will do our part to
belP them enjoy that right. The
United States has no other aim in
unless
Navy, and Air Force.
our
We shall
all
be-
and
our
invite
world,
and
we
right to be free, indepen-
a
women
one
and
men
the
dent> and united—as they want to
shall have to maina
to
Second: We believe the Koreans
a
have
half
size
went
months ago.
back
go
universal
and security through and
seek horrors
peace of war. The Nort
Koreans have learned that the
we
for
We shall give what help
can
organization. We kept
when
support of the United Nations in
have
forces
to
larger forces for
We
on
pledged ourselves to
we
tllls
Element
aggression
we
the
the
United Nations
in
First: We believe in the United
When we ratified its
come.
a
aims and
our
"'*=
We
Has Faith
1 Nations.
Next
face us, we shall have
increase
to
clearly
hopes.
our
key element in the
the free world.
In
a
now
shall
tain
to
to make this
human wish come true.
World
view of the threats of
to
trying
want all
the peoples of the
world, including ourselves, to be
happier.
The armed forces of the United
States
authome an additional 10 billions
to making their lives richer and
never
in
ship, its efforts and its resources,
We
believe
we
are
own.
Our Armed Forces—Key
ipnHpr-
futile
the
of dictatorship
COUrse
do.
what
we
.
intelligent judgment of the reader
to form his own opinion about
t;.is poxxu from the daily press an#
™ u iv.,„ris from the battler
front; t. e casualty lists, the draft,
the i«.rge-s ale mobilization, the
sudden upsurge of wild inflation
aila
rearmament boom, as to
which of these two terms is the
true oneif lt is a "Police Action," it is
tbe most expensive one this world
^as ever known s*nce the P*es~
ident
has asked
Congress
to
Against
.
invue reace tor All reoples
arm
understand
they
well
as
to
also want the rest of the world to
foinmg with us to develop
collective forces for mutual de'
forward
pr0gress
are
fense
secure.
people who follow the Communist
dictatorship down its dark and
bloody path.
free to devote their full energies
m
worxsnop.
make
and
worktop ^They
worms
to create
will
in
free
it'
people.
nnn nnn
peace
now
which
We want peace not only for
its own sake but because we
oi™
^nn
200,000,000
over
strength
quickly in the
days ahead, as we strive with
the United Nations for victory in
Korea, we must keep clearly in
other
what
to
this
in
part
the
_
move
what
are
his
helping
sources, are
effort.
we
mind
nations
addition
an
As
on
increasing their own efforts. Our aid is not a substitute,
is
government
your
play
can
pro-
greatly
but
what
national
our
increase
arms
countries.
explain
intends to do, and how each citi-
be maintained.
can
19
(911)
want
Constitution,
fine(j
the
which
de-
clearly
and limitations
0f Congress and the President,
when in the course of time any
one
Pf our elected Federal officials
powers
assumes
a
sovereign
power
him by the
Constitution, our state is no longer
a true Republic.
a dictatorship is a state ruled
by an individual or a group who
exercise sovereign power. By this
beyond that granted
specifically grant him,the power
to order those forces into combat
against an enemy nation in time
As an indication of how far
down the road to serfdom we
have traveled in recent history,
consider the following bold and
characteristic declaration made on
Specific Example to Illustrate tne Feb. 9, 1837 by Senator John C.
Point at Issue
Calhoun, addiessed to the then
What is written herein is not President Andrew Jackson:
meant as disapproval of our Pres"1, as a legislator, have the right
ident's decision per se to wage to investigate and pronounce upon
war
in Korea. That is not the his conduct, and to condemn his
issue involved. It may have been acts freely, whenever I consider
the wisest thing to do and may them to be in violation of the
have met the approval of 90% laws and the Constitution, I, as
of our citizens. What I am ob- a Senator, may judge him; he can
jecting to is the manner, the never judge me."
.
^
procedure
in making that de^
cision. The following hypothetical
incident will illustrate this point:
General in ComDivision of our Army
the
Suppose
mand of a
Prior to assuming his
his absence without first consult
office,
Constitution requires the
ident to take this oath:
our
Pres-
world into an armed camp.
of peace any more than the C.-inC. of a U. S. Fleet is authorized
to do so merely by virtue of such
high rank.
in time of peace which was located
near
a
potential enemy
leaves his Headquarters for a few
hours to inspect a base hospital
in the rear.
Prior to his dejs meant a ruler of Hitler's type, parture, he issued strict orders to
not the present King of England, his Chief of Staff, whom he left
in
temporary command of the
Specific Provisions of Our
Division, not to open fire durin
Constitution
in that it will transform not only
the United States but all the
ing
him,
connected
since
by
the
hospital
telephone
was
with
Consequences and Conclusions
The main mission of this article
is to make clear that this Korean
decision of the President will
probably prove to be the most
important one made since Caesar
decided to cross the Rubicon, because this one possesses the ingredients essential to plunge the
whole world into such a raging
war that its flames could destroy
not only our own form of government
but
also
democracies
all
on
other
the
face
existing
of the
globe.
In
all
history
since
time
the
Headquarters,
when
his return to his Headthe General was asfounded
to
find his Division
Julius Caesar conquered most df
Western Europe and the Near
East has the world been faced
full-scale, bloody battle
He immediately
Our Constitution does not grant relieved his Chief of Staff of all
have to make many changes in
countrieg like the United States, to the President the power to de- duty and recommended that he be
our
way
of hying and working
are
arming only for defense clare or initiate war, but specifi- tried by General Court Martial,
,here at home. We shall have to agaj,ngj. aggression. Even though cally delegates it to Congress in not because the action of his Chiei
;SVe
i"
"li? things
Communist imperialism does not Article I, Paragraph II, of Sec- of Staff wasnt the wisest thiny
We shall all have to work hordei
bebe
peace
it can be dis- tion 8, in these words:
to do, since the General himself
and longer. To prevent inflation
^lieve 1 £ « '
aggression if
with such a formidable array of
military power as that which now
confronts the non-Soviet nations,
Therefore, the personal decision
of the President to initiate war in
Korea did not amount merely to
starting a local Police Action^
(or affirm)
the best of my
ability, preserve, protect and deso]emnly
that
I
will,
swear
to
fend
the Constitution
United States."
of
Upon
quarters,
the fighting
a
with the enemy.
n
the
Roman
legions
under
but may turn out to be—-like the
-«2« _!■££,« rw",
pleted
on
legislation to
to channel the necessary
action
we
shall achieve it. Our men are on lapd
and water.
y<1
nrk
!:
q...
fnre£?0in£?
is
cited
as
one
fighting for peace today in Korea.
The, Constitution specifies'rthe f,.Is!lCtfrea a "Police Action" or a
8instances 0f th*
We are working for peace con- primary duty of the President,in,
War?
»
tannine abXatioroUte rights bi
increase our productive capacity, stantly in the United Nations and Article II, Par. I, of SectiQp I, as ' Only in the White House and
y
and to hold down inflation.
in all the capitals of the world, that
of
exercising
Executive amongst the Administration lead■
'
After this legislation is signed, Our
workers, our farmers, our power in the following words:
ers 0f Congress is Korea called a
R CHARD H. EDISON,
I intend to talk to you again, to businessmen,
all our
vast
re"The Executive power shall be "Police Action." I leave it to the Boston, Mass.
enable
us
effort
to
defense
production,
to
__
/
'20
The Commercial and Financial Chronicle
(912)
Central Banks, owing to the immense prestige and
many
Even
Dr.
Einzig, in commenting
discount rate from
serve
recent increase in
on
war
l*/2% to 1%%, points out, despite
be financed
can
'Does not look for
Britain.
British interest rates
or
that anything
increase
been
the
a
decision
for
States
to
it
rearm,
time
some
before
that, but for the additional
assume
of
would
have
not
in
-
The
coun¬
is
rate
presumably to discourage pro¬
ductive activity for non-military purposes, in
order
to
ment.
that,*
ensure
productive
capacity
the
At
authorities
sufficient
a
is
time
same
naturally
are
the
share
for
reserved
reached
Paul
which
at
ditions.
It is conceivable that money rates
may have to be raised
higher before that stage is reached.
A 2% Bank rate may
even
well be within the realm of practical possibility.
There is no
likelihood,- however, of a really sharp rise in money rates and
a corresponding
policy of really tight money.
In the United States as elsewhere, rearmament is
primarily an
industrial problem and not a financial one. The ease with which
astronomic figures of additional military expenditure have
just
been voted shows that lack of financial resources is not
likely to
handicap the progress of rearmament. At the same time, it seems
unlikely that the Washington Administration would wish to spend
more
on
rearmament than is absolutely essential.
Since a very
large deficit is now inevitable, the cost of government borrowing
will be an important factor in the cost of rearmament.
On the
other hand, if as a result of
inflationary financing the cost of pro¬
duction should increase
materially, the Treasury would pay a very
high price for the relatively low cost of borrowing. •
It seems, therefore, that the rise in prices will be
sought to
be kept down by means of dearer money until it becomes
possible
to achieve that end without having to increase the cost of bor¬
rowing. An increase of interest rates by V\% or even y2%, is a com¬
paratively small item, even if it has to be paid year after year
over a fairly long period.
But when it comes to paying an addi¬
tional 1% or more, then the authorities concerned
may think twice
before pursuing such a policy..
far
As
increase
tenth
as
Britain
interest
of
is
concerned, there is
rates.
The
2%
Bank
no
rate
likelihood
will
of
an
celebrate
its
anniversary in October..
lived
panic
Indeed, if we disregard the short¬
of August 1939 when it was raised to 4%,
measure
the (Bank rate remained at 2%
be
to
come
regarded
as
a
in London
permanent
ever
since
figure, and
1932.
any
It has
departure
it would produce a psychological effect that would be quite
from
out of
proportion to its material significance. An increase of the
Bank of England's rediscount rate would be regarded as a panicmeasure.
It is not likely to be resorted to unless the
weight of
argument is overwhelmingly in favor of an increase, which does
to be the
seem
at present.
case
The late Lord
,
Keynes has taught the British Treasury that it'
is possible to finance an expensive war by means of borrowing at
low interest rates. Although Keynes' teachings have no
longer the
same following, even in his native country, as they had a few
in
ago,
this respect
Britain
is
not
likely to unlearn the
lessons of the second world war. It is true, Sir Stafford Cripps has
abandoned Dr. Dalton's policy of cheaper money, and has allowed
long-term interest rate to rise quite considerably from the low
level to which it was reduced by his predecessor's policy.
Evenhe would not embark, however, on a policy of
deliberately dear.,
years
money.
r
Apart from other considerations, it will be easier for Britain
,
to
restore
controls than for
the
last twelve
has
embarked
months
or
the United
so
the
States.
British
is
therefore
political
control
on
It
no
out
of
the
any
"It
to
to
rise
of
*
the
to
extended
loans
on
to
during the
the end
peak
a
1951-1953.- After
the
European
Pro¬
Recovery
European
gram.
therefore
sources.
United States im¬
longer
any
countries
are
unlikely to have more
billion out of their
result of
negotiations,
on
other
basis,
would
there
to
the
world
the
purchase
/
American
economic
of
that
assuming
do
not
mid-1949
rise
give
once
to
more
heavy losses through the flight of
in
experienced
compares
a
in
1948,
of strong domestic demand
prices were mod¬
year
when
import
than at present.
other countries
higher
erately
Dollar earnings by
from
and
income
investment
on
billion
in
1948
1949.1
in
level
the
second
the
half
of
tend
probably
from
son
offset
be
There
penditures.
rise in
will
by
miscellaneous
in
decreases
outlays
to
sig¬
any
nificant increase, since the
travel
ex¬
is every rea¬
experience
to
past
would have to
there
purchases
by
ports
respond
in
capital
for
All
States
of
these
world
the
a
as
dollars
the- United
to the rest
whole, plus
by
ways
funds
dollar
for
allowance
some
of
amount
directly
in
supplied by international financial
agencies or obtained through the
sale of currently produced gold,
will
of
probably be within the range
billion to $13 billion an¬
$12
be
$2
some
favorable.
are
these
ways
iUnited
—
In 1948,
supplied in
excluding, however,
fi¬
Government
States
in the
availabilities
world
to an end.
comes
of
curtailment
further
"This
imports from the United States
may
give rise
to
difficult re¬
both
adjustments,
itself
Slates
in
in
and
United
the
other
many
of American
industry
agriculture might be expected
increase as their own produc¬
to
rise.
incomes
and
tion
The
ad¬
lower level of im¬
ports from the United States is,
however, likely to fall with par¬
ticular
severity
on
European
a
Their
countries.
dollar
own
re¬
will, of course, be directly
reduced
as
American
financial
sources
aid
to
comes'
close, only a small
a
whl&hWill be compensated
increased'1'-'earnings
in
the
part of
by
United
States
of
basis
the
on
rent
transactions with
States totalled
billion
both
in
and
1948
1949, al¬
slightly
in
the
Less than 50%
falling
though
the United
approximately $2.6
course
senting gross receipts from ship¬
figure
billion
fell
to
the
year
for
still at
was
in the last
than
less
as
about
level
quarter of the year.
service
the
to
investments
ican
abroad
order
of
$3.5
1-
cline.
such
There
years.
payments
'
While
the amounts due
shipping
,
from
i
to
.U
,,
fallen
during
TTT1--1
American
in
to expect the total
reason
of
been
billion
each of the last few
for
and
have
transactions
deon
services have
,
postwar
remainder
the
exports,
repre¬
peak
in
Europe,
and
transactions.
As
personnel
itary
service
above,
seen
some
will
actions
tend
it is difficult to
could
expand
succeed in converting
dollar
deficits
dollar
present
into
fcurpluses in third markets
abroad."
Herbert Lax Joins
Stanley Pelz & Go.
Herbert Lax
Herbert
Lax
has
become
asso¬
ciated with Stanley Pelz &
Co., 40
Excharge Place, New York City.
Mr. Lax was formerly an officer
of Greenfield, Lax & Co.
John Miller Go.
two
next
or
Formed in NYG
Formation
Co.,
Stock
John
the
field
known
as a
ler had
eral
than
more
most
during
years.
amounts
capital,
been associated with
Earlier in his
financial
take account
ma^es
ments, and cannot
with
the
figures
$3
the
These
of
American
totaling
be¬
as
of
adjusted in the
estiof unrecorded shippayments
be directly compared
as
sev¬
1920.
he served
career
editor of
as
York
New
the
"Evening Mail."
Mr.
Cooksey has been
of the
member
a
New York Stock Exchange
since
1941, prior to which he had
held
membership
on
the
Exchange for 12
New
York Curb
years.
Joseph Weinberg has been a
specialist in security analysis since
his
discharge from service in 1945.
Formation of the
new
firm
was
previously reported in the "Chron¬
icle" of Aug. 24th.
First National Sees.
PHILADELPHIA.
usually
United States trade returns.
given
in
Pa.
—
First
National Securities Corp. has been
formed with offices at 1520 Locust
Street
to
urer;
engage
Officers
in
a
are
President
securities
Perry
and
N.
Treas¬
E. A. Selheimer, Secretary.
was formerly with
Mr. Selheimer
Walston,
are
investment
the
analyst, Mr. Mil¬
Wall Street firms since
how the total
see
balance
in
market
Selheimer,
States
an¬
of these trans¬
decline, and
three
1 These figures
been
Miller, Joseph
firm-
new
Well
by receipts of private remittances
small
New York
Weinberg and George R. Cooksey, Jr., are general
partners in
business.
investment
E.
York
New
has
Exchange,
nounced.
Miller &
E.
Street,
City, members of the
earnings have been supplemented
and
John
of
Broad
30
to
to
the
at
billion
mil¬
American
of
disbursements
United
j
.
their
of this total was accounted for by
other
It will be noted that
the United States
the form of earnings on Amer¬
in
of last year.
$11 ping, American travel expeditures,
whole
a
that
goods.
payments
unless they
their
countries, whose demands for'the
nancing and also drawings on the
Fund
and
on
gold and dollar
reserves—amounted to $12.4 bil¬
and
imports of European
countries from the United States,
further
a
nually in the course of the next present prospects. Such earnings
'years, if general economic by European countries from cur¬
conditions
be
in
expected
billion »in
few
the amount of dollars
the
can
year,
of United States ex¬
other countries to cor¬
to the likely level of
abroad. justment to
investment
the
told,
supplied
be
by in¬
private
of
flow
the
1949.
be
of
United Slates official financing
and
will
of
reduction
products
creases
of
therefore
compared
little
prospect that this
than
compensated
half
second
tne
would
slightly less than $11 billion.
with
that
level,
was
As
expect private relief aid and per¬
sonal remittances to decline, and
more
in
level
This
because
partly
dollar
American
imports and roughly
$1.5 billion less than the reduced
1949
than in the first half of the
as
show
This
exports was very mucn
in
be
to
imports
on
States.
and $12.4
previously
As
however,
observed,
service transactions could scarcely
expected
value of such
recent *past.
total value
annual rate for the last six months
level reached
United
would be less than half of-the 1948
a
however, that the total value will,
within the next few years, greatly
the
the
States exports of about
of United
billion
the
with
of a decline in
prices, but chiefly because of a
decrease
in
volume,
and
the
a
exceed
from
private capital such as have been
high level of economic
activity is maintained, may con¬
tinue to rise. It seems improbable,
if
and,
earnings to spend
own
amount of reduction which
available
remain
lower
apart from the purchase of Amer¬
degree of
in
generally something in the neigh¬
borhood
of
$9
billion annually
American
the most important source
dollars, have recovered from
of
remit¬
States
investments
this
ports,
levels
volume
dividend
United
to -the
of
recession
-recede
to
increasing
and
and
"On
$13.4
appreciably by increases
supply of dollar funds from
other
„
States
period
countries.
be offset
volume
a
assistance
in the
the
expected
the
by
interest
This
does not necessitate corresponding measures
no
offset
foreign countries to a fraction of
the present level in the course of
the next few years is not likely to
is little
and what is done is arranged as
financial
Gov¬
other
solidarity between the money markets. There is very little inter¬
national discounting done nowadays compared with before the
war,
States
United
in
ernment
fact that the New York Bank
For there is
United
and financial conditions otherwise
that the impending
appears
reduction
ican
European country.
Amortization
royalties.
payments will also be due
due
savings thus made
requirements will
be
dollar
for
make'
period by Italy, Belgium, France and other Continental /pountries.
There the teachings of Lord Keynes have never periqtrated t-o
in
in
"Against this prospective sup¬
ply of dollars, there are certain
demands which can be foreseen,
prevent deflation. Resistance to inflation by means of dearer and
scarcer money has already
been resorted to during the postwar
rate has been raised
expires
(ECA)
Program
ing
the Conservative Party might
restoration of rationing and
mere
trie
lion, but in 1949 the correspond¬
measures.
But the
from
imports
Government
Possibly some Continental Central Banks might follow the
American example in raising their interest rates in an effort to
deep as in Britain.
for
true, during
can
danger that
capital
loans
is
essentially
an
policy
tances
Socialistic
anti-Socialistic policy of de¬
easily be reversed, however, especially
as
Mr. Churchill has made a public declaration promising that,
should the Government adopt unpopular measures in the interest
of rearmament, they would be supported by the Opposition. There
This
control.
contains a summary of
of
a
continuing
shortage of dollars with which
European countries can meet their
According to the report:
sufficient
a
Europe,
the
Einzig
the United States are prepared to
degree of physical control in order to
obviate the necessity for control by means of tighter
money con¬
to
some¬
on
since the end of the war, and are
any
goods,
Dr.
unduly sharp increase of prices. It is true, these aims are also
by direct means of physical controls which are already in
force or are under consideration. But the
stage does not seem to
been
of
prospects
be
can
further,
Nations Economic Commission for
1952.
anxious
and
in
Aid
States
served
have
"Eco¬
United States when the European
to curtail
civilian demand, whether for productive pur¬
poses or for consumption, in order to avoid an
submit
published
recently
Survey of Europe in 1949,"
prepared
by the Research and
Planning Division of the United
demands
of
rearma¬
United
pay
services, figured on a
basis, including interest and
diviaends, transportation account,
Dollar Shortage Continuing
nomic
The object of the increase of the New York
bank
to
$1 billion to the United
than about $2
favor,
other
and
will have
gross
therefore must continue to impose import restrictions.
to
The question is, will
the United States proceed further in the same
will Britain
tries follow their example?
seerns
receipts, ;;it
that European
reckoned
over
States
inflation
decided
and
idea
of European
Recovery Program in 1952 European countries are unlikely to
have sufficient dollars to spend on imports from U. S., and
.
raising the Bank rate.
direction,
The orthodox
rates.
thing
Survey of Research and Planning Division of the UN Economic
expected of rearmament, the Federal Reserve
authorities
interest
be
may
countries
Commission for Europe concludes that after end
a
the
reasonable
seems
even
Foresees European
period
though there
possibility of
resulting from rearmament. For,
distinct inflationary tendency in
United
ex¬
decrease
some
Against these
and miscellaneous services such as
rediscount
of the
of dear money
had
of the
recurrence
a
likely.
cinema
Federal Reserve action.
of
certain amount of speculation about the
a
of
that goes wrong can be put right if only the Bank
high enough has long been discredited.
raised
is
rate
rate of the
Federal Reserve Bank of New York from \xk% to 1%% gave rise
to
likelihood
no
substantial rise in Continental
any
because
LONDON, Eng.—The
is
Bank rates and
tacular rise of
low interest rates still holds in
on
there
so,
and here also
"
:
perience of the bad old days when international political and
military considerations were apt to result in an all-round spec¬
Federal Re¬
falling off of Lord Keynes' followers, the economist's theory
that
$400
million
and
$500
million during the past two years,
power
the financial sphere.
of the United States in
By PAUL EINZIG
4
tween
independently of the current discount rates.. Psychologically,-the
of the Federal Reserve authorities is likely to influence
decision
Higher Interest Rates ?
Thursday, September 7, 1950
;:.
Hoffman
&
Goodwin,
Buckley Brothers, and Reynolds &
Co.
W. F
Henshaw, Jr., is also asso¬
ciated with the firm.
Number 4940
Volume 172
Continued
jrom
.
.
grade and speculative
this because of
for second
4
page
(913). 21
The Commercial and Financial Chronicle
.
I mention
issues.
bearing it has on bond busi¬
ness transacted on the exchange.
the
The Corporate
Bond Market
On
86 or 87, a decline of about 20
yield 2.42%, while Boston
Edison 2%s are selling to yield points, as compared with a decline
of only 2 points in Central New
2.51%, or only 9 basis points more
York Power 3s.
The yield differ¬
than Victories.
It is thus apparent
sell
•
'
the
1
ments
;
by open market policy of the
and
basis
97
This
points.
been
has
Fed¬
than
in
of
there
yet
Inflation and Public Utility Rates
In
grade
was
transaction
a
view
of
the
threat
of
inflation
induced
by
the Korean
crisis, investors in public utility securities are deeply concerned
over the prospects of proper aajustment of rates and charges to
Com¬
New York has several
mortgage bonds listed,
of
issues
Chi¬
3s have
high
in
was
Consolidated Edison
pany
the
price of railroad bonds, and
eral Reserve.
20%,
bonds.
there
year
recovery
some
SAKOLSKI
By A. M.
corporate bonds on the New
York Exchange was $3,250,000. Of
this amount about $600,000, or less
ential between the two issues was
between governcorporates is affected
spread
Utility Securities
a
in
to
how
■
Public
typical day's business.
Friday, Aug. 4, total volume
'Take
rising costs.
in
Experiences of previous v^ars have shown that a fad¬
ing purchasing power of the dollar seriously
affects
& North Western
only one of these for $15,000,
Bonds of the power and light cago
while $101,000 of the company's
companies and of the telephone improved in price and are now
companies provide an interesting selling at about 92, wnile Central convertible debentures traded. If
New
York Power 3s are selling one were to seek reasons for the
example between two groups in
at about 105.
small proportion of business rep¬
the utility field. There again the
Now, to show what can happen resented by high grades, I would
question of supply and demand is
to
the
price of two mortgage say that the size of the institutions
the dominating factor. At the end
.' of 1945 the ratio of telephone bonds of the same company under buying and selling them, plus the
changing conditions in the bond cost
factor,
are
the
important
; bonds to power and light bonds
market. In February, 1949, Ohio ones. To obtain a given yield to
outstanding was 21%. In the postPower 3V4S of 1968 and 3s due
maturity, every fraction counts
war period the telephone industry
net
revenues
and unless offset
and
rates
„
of
utilities
corporations
by higher and compensating
charges,
stockholders
common
riot
only suffer from decrease in the dollar's value,
but also
in reduced dividends.
Holders ;of
.
public service corporation securities following
World War i weie lor a while acutely affected,
.
and their securities
underwent severe depreci¬
ation until rates and charges were
the
meet
new
adjusted to
situation; and at the time
this
/
a
was
slow process, due to
4
embarked
;
on
large expan¬
very
a
program,
telephone bonds at short intervals
during the early postwar period.
declined to
light bonds had risen to 43%, al¬
most
double
the
ratio
at
the
bonds sell to
earlier
in
period.
result, prices of telephone
faster than those
a
declined
At the
1948, the American Tele¬
electric companies.
the
of
of
end
ad¬
February
of
last
the 3s
12 basis
points more. This change in price
relationship is brought about be¬
cause
of the call price of 104 for
phone
&
Telegraph
Company
sold $200 million of debentures.
The issue was announced in Octo¬
the 3V4S. In a strong bond market
ber, to be bid on in early Decem¬
ber. This immediately affected tel¬
greater.
the
ephone bond prices.
On Oct. 21, American Telephone
& Telegraph 2%s of 1975 and New
York Power & Light 2%s of 1975,
to
through the period prior
American
declining
92 and New York
Light's advancing
to
to
&
Power
(the bond market had begun
97Vz
election rise), a spread of
the post
5V2 points and .31% in
yield.
attractive yield of
3.28% and sold
As is often the case, suc¬
of a large issue re¬
quickly.
sale
cessful
sions
by calling
about
only
a
.r
a,
security mar¬
of this
of
some
aspects of bond trading. ,
reduce some of the mystery
surrounding it, I like to compare
it to
a
merchandising business.
larger investment firms may
The
be
to
compared
department
a
types
a
80%
of
on
in
the
market,
the
of
bond
the
ex¬
in
the
a
trading
over-thehigh grade
preponder¬
transactions
take
over-the-counter
market. A large share of these are
done
the
or
about
sector of the
trade
to
is
point,
transacted
these
profitable research.
devoted
profit
average
considerable amount of
kets and lends itself to broad and
be
you
transactions
counter market. In the
place
will
the
and
change is in second grade and the
more
speculative issues, there is
few examples
The third and final part
commis¬
When
quarter of
Although
the
talk
up
each
tax.
bond
one
business
ance
phases of the
ex¬
dent.
a
among
tant
the
on
$2.50, the limitations become evi¬
changing price relationships
debt securities. It is one of
most interesting and impor¬
of
give
the
that
dealer
on
in
are
out
cents
75
transfer
realize
price.
These
and
two
of
bond
To
Telephone issue came at an
The
call
money
in
trade
resenting
corporation
the
Here
change costs $2.00 per bond, rep¬
3V4%
bond and replacing it with an is¬
sue bearing a lower interest rate.
Hence, an investor is unwilling to
pay too great a premium over the
bidding date on Dec. 9,
Telephone & Telegraph
the
refunding the
becomes
much
of
That is,
save
can
spectively at 93% and 96%, a price
spread of 3 points and a yield dif¬
ferential
of
.16%.
The spread
widened
bonds
3% %
maturity and rating, sold re¬
same
probability
themselves.
dealers
again the cost factor is important.
"off
That
off."
to
never
is,
the
reaches the Street
ex¬
for the firm involved in
negotiating
the transaction
be¬
tween the buyer and the seller,
cept
represented
usually
institutions.
nancial
treated
with
two
These
fi¬
are
brokerage transactions,
the institutions in¬
as
of
one
volved
by
paying
a
commission
of
company's store, and others to specialty $2.50 per bond. At other times,
of shops. The former maintains de¬ brokerage
transactions
involve
the year, the American Telephone partments to hrndle almost every another deeler or a Street broker.
& Telegraph, '75s rose to 95. Dur¬
type of security, while other firms The securities are bought from or
ing 1949, telephone financing ta¬ specialize in only one type, rang¬ sold to them for the account of
pered off considerably, but power ing from government bond houses, an insurance company, bank, etc.
and light issues continued to fi¬
to
those
dealing
in
over-the- The dealer who has a position in
moves
the pressure on a
outstanding bonds. By the close
in
nance
large
cember, 1949, American
&
By
volume.
De¬
Telephone
Telegraph 2%s of 1975 had ad¬
point of New
vanced to within one
York
Power & Light
2%s, selling
respectively at 101% and 102%.
in
Fluctuations
As
the prewar period when
railroad
systems
were
threatened with bankruptcy. Many
during
many
through
position
and
debt
their financial
retirement of
refunding outstand¬
by
of inter¬
ing issues at lower rates
est.
Chicago and North
Ry. First Mortgage
1989 were sold at
Western
3% Bonds due
par
in
April,
1945, to refund the company's out¬
standing 4% First Mortgage Bonds.
It will be interesting to compare
the
price movements of this bond
a
public utility bond simi¬
with
For this purpose, I
Central New York
At the peak of
the bond market in 1946, Chicago
& North Western Ry. 3%
bonds
were selling at about 106 to yield
2.75%. This compares with a yield
of 2.62%, or a yield differential
of 13 basis points on Central New
larly
rated.
have
selected
Power 3s of
York
Power
period
suffered
1974.
3s.
railroad
in
In
the
postwar
securities
popularity,
again
and
by
November, 1949, Chicago & North
Western 3s were selling at about
which
of
selling
case
the
inventory,
firm
the
in
trader
bond
position today approximates
issues) buys
and sells
deals
buy and sell fp'r^l^he account
brokerage or agency
other
acts as ji,dealer; or
against it, and here again
financial institutions,
with
dealers
brokers,
transaction.
last named
the
in
"position." As in any merchandis¬
ing business, the size of the posi¬
tion is guided by the demand for
and supply of high grade invest¬
ments during any
given period.
Demand is put first because this
It
known
is
as
Street
the
physically
impossible
to
check all other dealers as to mar¬
kets in any
course,
as
there
is
close
full
given situation, and of
in any other business,
some
reluctance
to
dis¬
by the
improvement was the more rapid adjustment of rates to rising
costs on the part of the utility regulating authorities.
Much of this improvement in uie regulatory process is due to
revised theories of rate-making that have come into vogue in
of almost
commissions, backed
up by decisions of the United States Supreme Court, based their
rate-making theories on the "fair-value" rule. This standard was
founded on
"the reproduction cost, less depreciation,
of the
property in use." To establish such a "fair value" in rate pro¬
ceedings involved considerable time and expense, so rate adjust¬
ments were slow and difficult,
and when made, were found
impractical or inadequate. This was exemplified in railroad rate
cases, where the elaborate valuations made of railroad properties,
under heavy expense to both the railroads and the Interstate Com¬
merce Commission, have proven to be useless in adjusting railroad
rates, so that the whole theory of basing rates on reproduction
values or original cost or any other fixed standard, has been, in
effect, abandoned for all practical purposes.
As a result of all this, neither the state regulatory bodies nor
the United States Supreme Court are now basing their rate deci¬
sions on any sfet or fixed rule. In two important cases before, the
Supreme Court in recent years involving the Natural Gas Act of
1938, the "fair return on fair value" of the property has been, to
all intents and purposes, set aside.
In the Natural Gas Pipeline
Case, decided March 16, 1943, Chief Justice Stone stated that "the
Constitution does not bind rate-making bodies to the service of
any single formula or combination of formulas. Agencies to whom
this legislative power has been delegated are free, within the
ambit of their statutory authority, to make the pragmatic adjust¬
ments which may be called for by particular circumstance.
Once
a fair
hearing has been given, proper findings made and other
statutory requirements satisfied, the Courts cannot intervene in
the absence of a clear showing that the limits of due process have
been overstepped.
If the Commission's order, as applied to the
facts before it and viewed in its entirety produced no arbitrary
results, our inquiry is at an end."
Having this dictum in view, it may fairly be presumed that
public utility regulatory bodies will, without elaborate and pro¬
longed studies or an adherence to strict formulas, adjust public
service rates to meet rising costs when conditions come about
which make neccessary changes in rates to protect the equities
recent years.
From the time of the Smyth vs. Ames case
half century ago, the
a
and
state public utilities
A more
than in the past may be
earnings of stockholders.
rate increases
conciliatory attitude toward
expected, and each case will
merits and the circumstances surrounding
formulas or fixed standards, appli¬
cation of which may have no practical significance. All this will
mean that investors in utilities will be protected, as far as prac¬
tically possible, in a regime of spiraling prices, and vwill be in na
worse position than other classes of security holders.
be
judged upon its own
it
rather
than on arbitrary
market.
over-the-counter
this
is
and
but at net prices. The
play an important part
of another, a
Inventory
(our corporate
two hundred different
he
represents
railroads
regained a considerable amount of
their credit status which was lost
roads had improved
and
number of issues
a
Thus, trading bonds is the buy¬
ing
may
Railroad Bonds
explained,
have
I
counter stocks.
required
then
II, the situation was not so bad, due largely to
improvements in technology of the period and
the heavy demand for the expanded output of
the services. Anotner and important factor of
A. M. Sakolski
quality and convertible is¬
expected dollar gain. A fair
share of business is generated by
hearings
commissions.
During the inflation period of World War
by
of the
and
various state public service
more
represented
missions represent only a fraction
year,
yield
to
gations
busi¬
do
buy for profit and the com¬
sues
To
selling
were
lower
the
3%s,
to
prices,
issues
volatile
whereas back
the
than
net
at
transactions. Investors in the
longer term 3%
yield 14 basis points
words, the
other
less
bonds
desire
investors
avoiding the
commission involved in exchange
106 to yield 2.82%. In
the end of 1947 the ratio of
telephone bonds to power and
As
and
ness
improved
in price to 106, the yield was re¬
duced to 2.68%, while the 3V4S
3%
the
vanced,
By
bonds
market
bond
the
As
issue.
in large issues of
This resulted
*
103, respec¬
108 and
at
as
faster pace.
<
sold
1978
did the power tively, yielding 1.72 and 2.85%.
This is a normal relationship. The
and light companies, but the ex¬
shorter term issue seds at a lower
pansion in the telephone field was
proportionately larger and at a yield basis than the longer term
sion
the elaborate investi¬
fected
FHLB Notes
on
Market
Offering of $290,000,000 consoli¬
dated notes of Federal Home Loan
on
Fed¬
will have
that date consoli¬
Sept. 15, next, the
eral Home Loan Banks
outstanding
on
dated obligations
in the aggregate
$472,000,000, consisting
amount of
yesterday (Sept. of the $290,000,000 notes presently
through Everett Smith, fiscal
offered, $85,000,000 of l%s, due
agent.
The offering consists of
$174,000,000 of 1%% notes, Series Nov. 15, 1950, and $97,000,000 of
B-1951, maturing May 15, 1951, l%s, due Feb. 15, 1951.
and $116,000,000 of 1.70% notes,
amounts there will be less demand the-counter quotations, the avail¬
Series C-1951, maturing Aug. 15,
Hubert F. Young Co.
for corporate bonds on the part ability of bids and offers, and in
1951.
Both issues are dated Sept.
acts as a go-between
in
of
these
investors.
Dealers will turn,
FLORENCE, Ala. — Hubert F.
15, 1950, and were priced at par.
tend to keep moderate positions. over-the-counter trades. As quo¬
A ' countrywide
selling group of Young has formed Hubert F.Young
Supply is the second factor in tations are made in multiples of securities dealers participated in
& Co. with offices at 125 South
one
eighth, their commission or
determining the amount of in¬
the offering.
Court Street to engage in the se¬
ventory. By that I mean that there differential is $1.25 per bond. In
Proceeds from the offering will
curities business. He was formerly
is not always a supply of bonds effect, he performs a service to in¬
be used to the extent of $145,000,available in the open market at a vestment firms similar to those
with King Merritt & Co.
000 for the payment at maturity
reasonable pricSizable inven¬ performed by the latter to its
on
Sept. 15, 1950 of $75,000,0o0
tory may
be acquired through customers.
1.35%, Series C-1950, and $70,Heimerdinger & Straus
I have tried to give you a gen¬
underwritings.
eral
impression of what trans¬ 000,000 1%%, Series E-1950, con¬
Kurt Wechsler has withdrawn
Where and how are bond trans¬
solidated notes.
The balance of
pires in the high grade bond mar¬
actions consummated? Either on
$145,000,000 will provide funds from partnership in Heimerdinger
information
one's
to
The Street broker,
prime determining factor. competitors.
If mortgages ana other forms of through a large number of private
investments are available to the telephone connections, keeps the
investing
institutions
in
large various dealers posted on overis
Banks was made
6)
the
.
the bond market of the
or
in
tions.
exchanges
over-.he-20u.1ter
As
was
transac¬
po:nted out at
the
beginning, the bond market is
divided into two sections,
really
the
high
grade
market and that
ket.
lend itself to q great
for making available credit by the
detail, but time is run¬ Federal Home Loan Banks to their
and perhaps we, can member institutions.
It does
deal more
ning
out
cover
some
tion
period.
of it during the ques¬
Upon
ing
and
completion of this financ¬
the
retirements to be ef¬
&
50
Straus,
York City.
admitted
firm.
Broad Street, New
Ruth Straus has been
to
partnership
in the
22
The Commercial and Financial Chronicle
(914)
Continued
Sharp Upswing in Business
jrom
Thursday, September 7, 1959
.
not
11
page
.
.
registered with the
SEC took the
SEC, the
viewpoint that those
companies they just could not ad¬
Survey Committee of National Association of Purchas¬
ing Agents finds, however, rise in materials prices, with few
Business
The New York Curb
exceptions, has not been high percentagewise. Holds immediate
imposition of price
three separate
inventory controls would be harmful.
or
first
Clause
A
of
report
this condition.
composite
the
C.
Swanton,
Di¬
chases,
of
New
Conn.,
indicates that,
generally reported
sales departments
that
during August
general busi¬
C. Swutoo
the
sharp
and
up¬
Again,
There
are
skilled
indications that the movement has
about
the
reached
months, may level
high plane it has at¬
Military orders have not
had much effect on the
tained.
yet
overall
business
picture.
Pur¬
chasing agents believe there is
some possibility of a
lag between
the lessening of the current high
civilian
a
demand
and
program.
Industrial materials
prices con¬
tinue
to
rise, but, with a few
exceptions, the" advances are not
high percentage-wise. Inventories
headed
are
down,
following
a
Employment is
the highest since the Fall, of 1948.
Buying policy is necessarily of
longer range, to cover the ex¬
three-month rise.
tended
production
suppliers.
To
the
schedules
specific
of
question
of,
price, material, and/or
inventory controls be helpful or
''Would
harmful?" the
ion.
of
that
predominant opin¬
purchasing executives is
imposition now or in
immediate
harmful.
(1)
The
future
voluntary
working
fairly
defense
heavy
fied
would
given
allotments
reasons
well;
(2)
requirements
are
not
so
satis¬
be
without
controls,
and
(3)
ceilings become, in effect,
price protection, eliminating free
play of supply-demand forces on
price
**■/
;
of
business
prices.
A
minority expressed the opin¬
controls would be help¬
ion.
that
ful.
but
only
if
managed
by
a
separate,
temporary government
specifically set up for the
purpose of controlling everything,
agency
including
prices, wages, profits,
strikes, farm
products,
govern¬
ment subsidies, wasteful govern¬
ment
spending
and
the
credit
controls
The
needed
situation
present
foreseeable
future
with
garded
inflation.
curb
to
the
and
being
caution
are
utmost
changes,
extend
and
overextend
Commodity
in July
up
into
and
tin
size
of
increase.
August.
While
below
Employment
creased
Anticipated
mands
increasing
influence in
movement.
Escalator
more
common
play
to
gray,
black
the
and
use
or
ma¬
de¬
wage
and
strong
the
to
basic
taxes
the
are
price
clauses
are
orders
of
materials
at
premium prices.
first
time
in
three
months, purchased industrial
terial
trend.
inventories
Twenty-one
show
per
a
ma¬
down
cent,
the
largest number since May, report
same
ments of the
is
much
is the
States.
chasing Agents
requirement
United
see
are
nb
in
sion
may
class
of
in
any
special
admit
cases
a
case
stock
on
class of cases the admission
or
Jl i B; Hanfau^h) Officers
that
particular stock
auer,
President;
Vice-President
Sabloff, Treasurer.
and
Han¬
Evelyn
.
did
the
mean.
six
most
In
an
an
auction
market.
the
12
we
approved for one of the
six stocks solely because that par¬
ticular stock happened
to be a
leges
was
public
which
utility holding
was
registered
SEC under the
result
of
that
company
with
1934 Act, and
registration
the
as
a
was
subject to substantialily the same
reporting requirements as a fully
listed
and
registered stock on an
exchange. v;
-
coun¬
the
same
special
not
are
ac¬
any
the
in
all
effectively stopped,
were
stocksfor unlisted trading
privileges except for a few isolat¬
ed cases where the companies had
some form of registration with the
SEC which makes them subject to
all the reporting requirements of
SEC.
the
That
condition
has
continued
for several years.
now
tioned,
As I
men¬
have kept for unlisted
we
trading privileges any stocks we
prior to 1934, but we have
had
able
been
to
add
few new
trading privi¬
very
stocks
for
leges.
We have lost companies in
due to reorganizations,
unlisted
many cases
etc., and
mergers,
not able to
are
replace them with
on
the
stock
new
unlisted basis.
an
SEC's
Proposed Amendment—the
Bill
Frear
About three
submitted
the SEC
ago
report to Congress in
a
of
unlisted
and
years
they pointed out that
stocks
both
the
on
many
dealt
are
in
exchanges
over-the-counter
that
are
widely held by the public, and the
public which holds them does not
have
the
they
were
protection
same
as
if
fully listed stocks be¬
companies and their
the
cause
managements
are
not subject to
reporting requirements of the
the
1934
Act.
The SEC,
Congress
panies
so
amendment
to
as
under
SEC.
the
That
the
of
bring those
com¬
jurisdiction
report
of
made
was
years
ago,
approximately,
nothing materialized at that
and
time,
but
made
a
early
to
up
quiring
size
off,
of
in
Delaware
intro¬
Congress
which
the
is
on
subject
requirements.
The
sole
had
to
and
300
to
criterion
have
$3
re¬
cer¬
a
United
an
be
to
.of
company
in
it
the
first,
had the effect of
every
whether
along
bringing
following which
date,
bill
they,
year
report
the
as
Senator Frear
tain
this
second
lines
same
it
therefore, suggested to
an
1934 Act
States,
exchange or
registration
size.
was
million
of
stockholders.
it
If
It
assets
met
size
those
requirements, it had to
register with the SEC, and would
become subject to the provisions
Sections
of
13,
14
and
16
of
the
Act.
There
were
the
before
Banking
hearings of that bill
Senate
Committee
on
and
Currency.
We at¬
them, as did many other
representatives of the securities
tended
has
and, from
been
:
Since the other five stocks were
what I
sidetracked
hear, it
least
at
for
this session of Congress.
That brings us to the status we
are
in
had
a
now.
very
it
ment,
has
amount of
are
dwindled
still
unlisted
the
over
have
a
'large
security,
but
effectively stopped from bring¬
ing in
If
its
While we originally
large unlisted depart¬
We
years.
still lost the case from
purely legal aspect of Section
(f).
Unlisted trading privi¬
point,
of
we
than
Although I think we did prove
our case from the statistical view¬
to unlisted
stocks
talking in particular now
widely held, active
not
attempting to
rather
1943, we picked
active
v/e
passed
or
to
in
industry. But the bill has not been
am
stocks; I
am
say
it is
more
advantageous in the more
closely
held
stocks which
are
subject to a negotiated market
decided to test it out and see what
it
stockholders
ket.
fading'privileges ^yould be in the
jp^lic ihterest. . (]J..
Edith
the
the over-the-counter mar¬
versus
ANGELESnGaiifV ^JJ; ,B.
Hanauer & Co., 639 (South
Spring dri Nobody knew.w^pit that meant
Street, is now doing business ,as a incthe early stages of the Securi¬
corporation.
Officers are ,'J. (JB. ties Exchange Act, so we finally
Hanauer,
to
advantage
of
that special case
in
to
exchange market was of great
an
even
that
of course, took no
what these figures
proved conclusively that from the
viewpoint of the cost to the public
though it is not
required to conform to all the
registration requirements of the
SEC, provided the Commission is
satisfied
as
the
any more
dealers, but the
that was up to us to
prove.in turn, made an ex¬
haustive kttidy of the figures, pre¬
sented (W! \feiy elaborate brief to
the
SECj'^and I think that we
went on
trading privileges
exchange
will be im¬
to The
(f)
reports
proved
say
unlisted
immediate
posed in Canada until they are in
the United States.
(Special
12
a
up
by
stand
that another sen¬
Section
of
in,
came
set
filed
those
of
Commission,
that notwithstanding the
foregoing provisions the Commis¬
to
staff
re¬
of
was
information
over-the-counter
(f).
tence
are
governmental
none
way
So
have
the
in
by that decision, from bringing in
would
a
series of exhibits showing the
I
That out
Canadian Pur¬
for
controls—expect
12
improved.
as
the
re¬
job.
Commission
be
over
these
category;
It took a long time
the figures to come in.
was
be
to
stock
are
a
sults
all of the require¬
in
That
class of
case or
it
would
They
ter.
duced
After
and
registered on
exchange. So it did not mean
deal
very
the
bringing in new securities, except
for one out that was in Sectior
States.
same
that while
1934 Act unless it is
us
United; States,
the
in
months.
for
listed
to
a
question¬
over-the-counter
sent
every
elaborate
speaking
there
tively
three
They
that he submit a record
of every transaction he made in
these six stocks for a period of
to
fully
than
ing like that had ever been done
to
deem
we
interest, there is no more
of a showing of special case of
public interest in these five stocks
the
quiring
exchange could
stock to unlisted trading
stock is subject to
between exchange
was
any
public
ing in these six stocks, and noth¬
before.
an
practically
order
in
of the over-the-counter trad¬
vey
the* same reporting re¬
quirements as a' fully registered
security the Act was in effect stat¬
ing that you could bring it in if
listed on some exchange, since no
ject
is
LOS
the
a
deal¬
mission undertook to make a sur¬
could not because in specify¬
ing that a stock could be admitted
to unlisted trading if it was sub¬
they give free
Inventories
For
admit
securities
public stockholder, the Com¬
the
ownership reports.
That in effect meant
the
represents
there
six
theoretically
States rate.
Inventories
the
Buying policy
United
production
new
up.
in
the
a
the
im¬
of
once
having to do
with financial statements, proxies
and stock
applications. We
trading and over-the-counter
trading, particularly in costs to
it,
Act
the
of
16
the
ence
dealer
anything
United
all
the pricing of many fabricated
items, where the prices have in¬
proportion
up,
the
in
contained
ah
the
under
of
to establish
and for all how much differ¬
Finally,
admit
can
special
a
hundreds
those
over-the-counter
Securities
require¬
ments being, as I mentioned be¬
fore, contained in Sections 13, 14
and
move
Canada
An
of
the
those
ers.
that
state
with
to
requirement
which
Dealers,
naire
some
are
out
to
up
we
opposed,
requirements as though they were
registered
In very short supply:
Aluminum,
brass, cellophane, caustic soda and
soda ash, cement,
copper, lumber,
pipe, steel, wire, zinc.
than
their
on
in
kicker
substantially
or
same
oils, paints, paper, platinum, rub¬
ber, textiles, wire.
lower
in
a
the Commis¬
them even
course, by the
National Association of Securities
privilege of trading unlisted
in a stock can only be given to
securities which are subject to the
you
Prices
terials.
was
cases
which
were
this
privileges,
substantially
rise
was
went
it
because
bearings,
brass,
building
materials,
castings,
chemicals,
containers,
dyestuffs,
electrical
equipment, explosives, food, fuel
oil, glycerine, lumber, steel scrap,
price increase
in August, much of it the result
of high demand and low supplies.
inflationary step-up is noted
there
But
that
We filed
widespread
and
stated
SEC.
That
provided that
there
that
market
it
put
we
notwithstanding noncompli¬
if in
ance
and, therefore, they met the pub¬
important
viewpoint.
we
admit
to
lic-interest
the
was
our
establish
sives,
far
unlisted
for
But
that the
those companies
of that exchange.
to
in
ex¬
prove
public distribtuion in the vicinity
Canadian business did not keep
pace with that in the States dur¬
more
3
from
active
or¬
Other
a
frankly
stocks,
compliance
ground
registered with the SEC, pro¬
that
the
exchange
could
also
moved
outstanding
were
their
as
were
going to
stockholders of
would be bene¬
fited by the advantages of an ex¬
change market versus the overthe-counter market they then had
ex¬
the Curb Exchange.
portant materials up were: Abra¬
ing
in
bring
to
vided
Copper was pushed
price market—lead
split
a
a
fully
and
Changes
have
to
seem
in August.
up
of
But it has been very
Exchange Act of 1934, the
Specific
same
the Com¬
mission to give these stocks un¬
listed
trading privileges on the
exchange could admit to unprivileges a security
which had not been fully listed
order
Commodities that did not
these
SEC.
power
without
any
by
Commodity Prices
and
sales
attempt
un¬
public-interest section of
sections,
lister trading
course
booking.
re¬
industrial buyers.
More
if
the
curb
you
security—we
that
the Act, which gave
country,
not too much
was
there.
clause theoretically
postwar period should
ganizations
listed
sion
the regional ex¬
on
throughout the
Clause
screen¬
problem, when the
that
anyway
subject to the
are
admitted
all
because
there
clause
com¬
tion to previous customer experi¬
ence. The multiple ordering of the
a
said
them
trading privileges
prohibited them.
cases."
reporting requirements
fully
hundreds of stocks which
listed
in New York,
either on the Stock Exchange or
ing incoming orders and accepting
only reasonable quantities in rela¬
not be
wide¬
trading privileges on their floors
predominant comment is that the
extension is for definitely booked
orders, with nb element of specu¬
lation. It is favorably noted that
immediate
they
SEC
many
on
are
the
vicinity.
technical
states
law
stock
legal phase of it—
which
admit
that this
are
maintain a range of
60 days and under, while 28% re¬
port over 90 days, with a strong
push on four to five months. The
manufacturers
less
the
advantageous to the regional
can
many
section
it did was
open the door to us applying for
unlisted
trading
privileges
in
them
The trend to longer commitment
panies
the
to the
as
cannot
changes, because it has permitted
on
Policy
periods continues. Very few
But
ments of the
and
zinc and aluminum, where
severe
cutbacks in voluntary al¬
lotments by producers are forcing
a
reduction in working hours.
Buying
our
requirements of the Act.
been of much use to the Curb Ex¬
field
copper,
present
are
that they cannot
be
are:
dependent
a
widespread
a
met
we
the
on
they met the
an
changes
manpower
industries
the
are
had
stock
the
stocks dealt in
in¬
is
Contrary to this trend
where
available.
their
the
is
is
Therefore,
Ex¬
of
figures
that
for
they
We ob¬
in.
public distribution in
for
satisfaction
the
that
change,
Overtime
workers.
appearing
pickup in
a
defense production
all
then
payrolls
apply
show
of
that
active market in the cept in one or two minor cases,
vicinity of that second exchange. were not subject to all of the
That particular Clause 2 has not registration and reporting require¬
creasing and additional shifts are
for
the
on
as
and,
top
few
next
off
the
in
spurt
a
distribution
volume
period
a
dealt
requirement
any
on
Securities
the
could
to
joyed
as
reported for August, with industry
hard
put to fill jobs requiring
orders increased steadily
new
SEC
move
and
provided that
spread public distribution and en¬
Employment
Production
throughout the month.
can
produced,
2
under
tablish
some.
continued
ness
swing started in July.
be
can
condition,
actively
tained
ex¬
unlisted
trading privileges in that stock,
provided the exchange could es¬
hoarding
apparent;
endeavoring
to supply
top production is the
Inc.,
Haven,
were
for
showed
law
They said, in effect, "While the
We
members
our
trading
stocks
which
stocks to
change
of a substitute for
all, there is little
Over
them.
of Olin
that
on
their
of
those
from
unlisted
to
because the
over-the-counter.
time,
change Act of 1934, a second ex¬
for larger shipments of
currently critical items or
the
Indus tries,
iKriert
tered
waiting
development
1934,
1,
security which was fully listed on
an
exchange, and thereby regis¬
while
materials
easier-to-get
continued
be
Clause
difficult to decide to curtail intake
Re¬
March
to
change.
backed by
peating Arms
Company, Di¬
vision
could
in
admitted to un¬
privileges on an ex¬
was
prior
change
find
obtained
records
provided that any se¬
listed trading
With
inventories.
1
curity which
production schedules,
large order books, it is
heavy
Win¬
chester
industrial
in
of Pur¬
rector
of
much
consump¬
receipts ac¬
the thinning
out of protective stocks. Materials
management is concerned
over
the developing trend of unbalance
is
Robert
Capacity
piecemeal
for
counts
Survey Com¬
mittee, whose
Chairman
with
tion
opinion of purchasing agents who
comprise the National Association
of
Purchasing Agents Business
could
clauses—Clauses 1,
2 and 3.
mit
Exchange
any
the
new
Frear
original
opened
more
a
bill
form,
field for
unlisted
presently
which
securities.
had
it
stockholders
to
stocks.
these
passed in
would
us
unregistered
meet
'
have
bring in
All
those
companies
$3 million, 300
would be
standards
required
to register, and would
subject to all the regis¬
tration provisions of the Act. Since
become
these
provisions of the Act are
only thing that has stopped
admitting stocks to unlisted
trading since the Act was passed,
the
us
in
Volume 172
Number 4940
.
.
The Commercial and Financial Chronicle
.
they would, therefore, have been
eligible if we could have proved
includes
sufficient distribution and trading
issues, which
activity in our vicinity.
However, even before this bill
was
sidetracked, there was an
dle
amendment tacked
objection^
of
the
The
to meet the
on
of. the
representatives
over-the-counter
effect
this
of
dealers.
amendment
would have been that
exchange
can bring a stock in for unlisted
trading privileges for a period of
a year and
a half after this bill
no
passed,
was
with the provision
that within that period the Com¬
mission
would
make
study
a
of
unlisted
Now,
first
about
we
foreign.
as
the
foreign list of
our
same
50
really don't han¬
We handle them
American
as
course
Canadian
corpora¬
tions. We do not require
American
depository receipts for Canadian
stocks.
Aside
from
the
Canadians, we
English cor¬
porations—most of them the larg¬
est
English
companies,
a
few
South American corporations,
a
Spanish, a French and a South
African corporation.
And while
have
several
those
very
dozen
stocks in years past were
active here, since the war the
trading privileges and re¬
port back to Congress whatever
their recommendations may be as
exchange of
foreign currency have pretty well
dried up the market in most of
to
them.
continuation of it.
a
Whether the Frear bill
variation
it
of
passed
in
know.
I
the
or
some
is going
to be
future, I do not
think
sooner
later
or
there is going to be some form of
regulation
of
unlisted
securities
which will make the requirements
to which they are subject com¬
parable to those of listed securi¬
ties.
When
that
know.
not
take
In
will
come, I
meantime,
the
do
we
the
position now (and we
always have in the past), that
securities should be permitted to
dealt
be
unlisted
in
the
on
fit not to list those wide¬
seen
ly held, active, traded-in securi¬
ties which are logically adaptable
to an auction market, the stock¬
holders
of
those
companies
better served if the stocks
are
are
on
exchange, with a public auc¬
tion market, with bids and offers
matters of public knowledge, with
every transaction reported on the
ticker.
Notwithstanding the fact
they may not have supplied all
an
the information
of
ity, there still is
listed
a
secur¬
advantage to
their stockholders in having the
stock on an exchange. That is the
position
an
take and always have
we
taken,, and we have argued it be¬
fore Congress and
otherwise.
think
unlisted
about finishes
that
the
of our operation.
just two other phases
phase
There
are
of the
operations of the securities
division of the Exchange I wanted
to talk to you
There
securities.
eign
One is for¬
about.
about
are
100 to 150 foreign securities dealt
in here on the Curb ? Exchange.
majority are admitted to unlisted
trading privileges.
They are so
prior to
in 1934.
because
the
had
we
of
passage
them
the
Act
change pioneered in the develop¬
ment of what we called the Amer¬
ican
depository
receipt,
or
the
American share certificate, which
is
a
device for trading in foreign
Exchange touched on
his
discussion, but the
in
that
purpose
of
these American
share certificates, as you know, is
facilitate
to
United
States
trading
between
exchanges and the
which
Particularly it
European exchanges
they
traded.
are
upon
listed
securities
after
affect
other matters that
and
trading,
take
then, of
we
of
care
rulings that
are
shall be ex-dividend here, because
when a stock sells ex-dividend
we
pioneered
here in
a
securities.
large number of foreign
We
then
had, and we
still have, the
largest list of for¬
eign securities in the country,
including the
Stock Exchange.
Back in the
of
1920s
we
had stocks
all
.European countries traded here.
corporations of practically
the
the Exchange
companies that
have securities traded in here, and
maintain that contact for the pur¬
of obtaining information for
pose
the
on
regulation of trading
floor, and the proper regu¬
proper
our
lation
of
deliveries
I
think that about covers what
to tell you.
One other
wanted
I mentioned
that
companies, but that does
necessarily indicate that all%
stocks on our floor are small, de¬
veloping companies. A very sub¬
stantial percentage are old, wellestablished companies.
Many of
them have the necessary attributes
to meet the Stock
Exchange list¬
ing standards, but for whatever
the reason may be they have not
fit to
seen
For
list
the Stock
on
example, 75% of
dividend
are
which
years.
all
stocks
to
during the follow¬
the brokers have a
ing week so
knowledge of it, and each
ing we put out over the
a
So
are
change.
close
we
to
establishing
date,
these
have
we
ex-divi¬
few
a
me¬
not
are
and
transfer
exclusively
developing
chanical problems. First, we have
three-day
our,
that
delivery plan, so
normally you would
while
expect
stock to sell ex-dividend
a
the
date
when
the
record
of
stockholders is taken, actually we
have to sell stocks
ex-dividend
which
full
transfer
business
in
record? ctale;.
In
New York
prior
days
'
-
addition
two
the
to
-
•-
m
We
change particularly,
as
ated from the Stock
Exchange, in
that
list
we
trade
to
the
develop,
Stock
Ex¬
those
greet
never
admit
or
to
be,
at
of
we
the
on
are
we
trans¬
basis
performing
economic functions
of
assisting in the growth and devel¬
opment of smaller companies
to the
point where they
are
up
large
enough for Stock Exchange listing.
to
trading
LeRoy Godfrey With
a
Shields Go,
Chicago
transfer
in New York, such as the
Exchange requires. We have
always found that works out satis¬
factorily.
CHICAGO, III.—LeRoy D. God¬
agent
in
least
our
years
differenti¬
Stock
However,
the
over
philosophically
one
means
to accept those
that
are
have
not
but
come
fers
transferred any¬
where in the United States. There
does
in,
have
establishing
ex-
dividend dates, we not on}y have
to allow two days
beppjjse gi our
frey,
veteran figure
in the grain
business of the United States and
Canada, has taken
Street headquarters
La
up
as
Salle
manager
of the
&
far-west
continental
and
growing interest of eastern
inter-mountain
issues.
Their
Spokane
Los
and
supervises the firm's
is in charge of the listed
The New York office is under the management
of Ken Howard, resident partner.
unlisted
business
Angeles.
Joe
Monahan
while Larry Sheehan
order department.
Securities Salesman's Corner
By JQHN BUTTON
grain department of Shields
Co., 209 South La Salle Street.
Make the
calls, but make them where they count. Some years
friend of mine who had raised his annual earnings substan¬
tially in a year that was not considered very good in the securities
business, told mq this: "I had been making too many calls and
ago a
not
enough interviews.
I found myself putting a dozen cards in
pocket in the morning and starting out.
By nightful I found
the people were not in, or were too preoccupied
to talk to me seriously.
I was meeting a lot of people, and that
was
about the size of it.
Then one day I met a salesman who
told me that his main trouble was persuading people to sit down."
For the first time it dawned upon this salesman that in order to
my
that about half
sell anything as important as the investment of a sizable sum
securities
He told
that the salesman who
tipped him off and stalled
selling, told him how be would go
factory and walk around the place with the buyer. !;Other
him
on
into
a
a
me
successful
this salesman
times
career
in
would have to stand
on
his feet and
inviting a foreman over to a nearby lunch stand and
soft drink together.
He made the sale.
He did this
his buyer off his feet as often
he could do it.
His sales increased.
Then he began building
they had
a
whenever he had the chance—he got
as
the importance of his call.
He used the telephone and made
appointments. He began to qualify prospects over the telephone.
He did more planning before the call and his sales went .up.
This security salesman told me of a typical case which proves
the point.
He had a lead that was obtained through some ne ws¬
up
advertising which was done by his firm.
He telephoned the
Products
wherever the
that
by.
He said he waited a week and then drove
prospect.
He found him working in his garden.
duced himself, and after a short ten minutes, in which
his prospect to do most of the talking (he did this
questions about the man's garden), he then made
appointment for the following evening.
He asked if
which
be
many,
represent in each,case the
transfer office
may
was
Co.
Prior
Vice-President
to
and
the
Manager of the country elevator
certificates of the company
system of the Van Dusen-Harring-
located
in
order
to
have
purpose
of the
dividend.
That
is
We take
dend
Refining
he
one
on
of
the
services
we
stocks traded in here.
care
of
all
information.
ton
interests
at
Minneapolis,
Minn., and operator of a grain ex¬
port brokerage business at Winni¬
peg,
Can.
that ex-divi¬
We
take
care
rulings that
may be necessary for the regula¬
tion of trading and deliveries, such
of
brokers, settle disputes when there
are
disputes between brokers as
to whether a particular security is
isn't
or
a
good
delivery,
and
whether the buyer must accept it,
etc.
Those
disputes
come
up
occa¬
out to see
He intro¬
he allowed
by asking
wife
was
interested in their financial affairs and,
this
was
so,
a
Ccm. Stock Offered
Public
"good
delivery," establish¬
ex-rights
dates
when
there are rights or any special
matter that comes up that may
call for a ruling establishing either
the time or the form of delivery.
In our division we also, on a
day-to-day basis, rule by tele¬
phone on deliveries as between
a
ment
call
his
of
offering" of
1,000,000
Canada
made
Net
will
if she could be
asked
of
finding out that
present when he called.
told that this would be very acceptable.
The next eve¬
three of them could sit around
put his books and papers out in front of them. He
issue
Alberta-
table.
talked
a
He
program
of investment.
desires and objectives in
Inc.
on
proceeds from the financing
held as general funds.
sale and opened a good
He found out first what their
life really meant to them.
new
common stock
Sept, 5 by Thomas
G. Wylie Co. at $2.50 per share.
was
Oils,
shares
a
was
he
a specific
this man's
ning when he called, he asked if the
form of stock certificates which
are
prospect and was told that he shouldn't make a special trip 1o
see him,
but if he was in the neighborhood someday he could
He
Alberta-Canada Oils
1o
the idea of
time in transit from New York to
so
talk
foreman while he was directing operations in 11'busy
factory.
He was selling a highly competitive product used in
industrial plants and he could rarely get a man to sit down at
a
desk because the buyer was nearly always an active operator
of the business instead of a desk man.
Then one day he fell upon
plant
a
paper
have to allow
in
anything else—you just can't take orders.
or
Before
joining ./Shields,
Mr.
Godfrey for 10 years was manager
of the grain department of Corn
p^.y^t also
i^ore days
three-day delivery
trans¬
private wire system links New York with the "firm's
ex¬
have lost another issue to
we
to
that, we have a
complication in this Ex¬
further
that
in
dealers
we are.
because each transfer
asm,
and wire facilities to handle the
room
run¬
hundred
a
transfers with any great enthusi¬
In
Hogle & Co., 61 Broadway, New York City, members
Exchange, New York Curb Exchange and
principal western exchanges, have recently expanded their order
consecu¬
As companies grow and
they
on
a
change, although primarily
ticker
day.
to
up
notices
repeating the stocks that
going to be ex-dividend that
and
dividend record
seasoning
morn¬
A.
consecutively,
years
yearly
ning
schedule
stock
our
payers,
40% of them have paid dividends
that particular dividend. So each
week
we
put out a bulletin in
we
Ex¬
J.
of the New York Stock
offices in 12 western cities, which include Salt Lake City, Denver,
tive
be ex-dividend
are
smaller
not
of the stock is not
going to receive
over
we
primarily a seasoning and devel¬
oping
market
for
newer
and
10
bid
the
between
as
members.
of them have
as
before,
of
some
quirements.
said
of
contact
all
over
of the issuance of all
As I
with
and
in
and representatives of
brokerage houses who are not fa¬
miliar- with foreign transfer re¬
in developing that. We built up,
in the 1920s, a very active market
tinuous
for
reduction
a
Hogle Expands in New York Gily
issues of companies that are al¬
ready listed. In fact, we have con¬
price to reflect the fact the buyer
is
cashiers
of dividends to American holders.
all
J. A.
Also, of course, the securities
division, in addition to the orig¬
inal
listing of securities, takes
care of the
listing of all additional
issues
perform
as that of a domestic
and facilitates deliveries
or
23
that type.
We put out weekly bulletins es¬
tablishing dates on which stocks
there
name
the
assignment is
properly, signed, and things of
change.
physical transfer of certificates. It
facilitates delivery of foreign se¬
curities in the Street among the
type
of
for the
necessary
registered for the
same
woman
regulation of trading oh our floor.
stock
company,
course,
issuance
the
rapidity with which stock can be
transferred back and forth by
cable
without
the
necessity of
This American share certificate
have is in registered form of the
oper¬
they have
been admitted to trading, along
the lines of seeing that they issue,
and we obtain, annual reports to
stockholders, notice of dividends,
etc.
And having been notified of
dividends
a
not
earlier:
phase of the
facilitates arbitrage because of the
we
of
thing that I think I skipped
ations of the securities department
is to service the listed and un¬
I think that Phil West
securities.
of the Stock
main
other
one
stocks which
Back in the 1920s, the Curb Ex¬
of
Investors
The
Many of them are listed, but the
admitted
Protection
for
.r—
(915)
sionally when stock is in the
I
Operations
dend
Trading in Foreign Securities
I
the
on
ex¬
changes; that if the management
has
restrictions
„
account.
evening after a four-hour interview.
If
you
don't think what you are
tant, how do you think they
He made the
He left this house at 11:30 that
The sale was worth it.
doing for people is impor¬
will feel about it?
be
The
company,
Deleware,
incorporated
proposes
in
to engage gen¬
erally in the business ojt prospect¬
ing for, acquiring and developing
oil and
riatuhal gas reserves >xvith
particular
reference
to
La Branche to Admit
X. Wn WellmCo. Fbrmed
BLOOMFIELD? N: J.
Weller
—
J. W.
hh&ffbr&recl J; W. Weller
Offices' at 2 Broad
Albferta, Street,' to"engage in
Canada, and, possibly, at a latdr
date in Saskatchewan arid British
business.
Columbia.
of New York.
He Was
nected with
a
securities
formerly con¬
First Investors Corp.
On Sept. 14 Thomas
F. Callahan
acquire the New York Stock
Exchange membership of John I.
Dakin and will become a partner
in La Branche & Co., 50 Broad¬
will
way, New York City, members of
the New York Stock Exchange.'
24
(916)
The Commercial and Financial Chronicle
who
Continued from first page
Ou Defense of the Home Front
else
whatever
called
we
us.
to do as individuals,
of
upon
accurate
must add the responsibility
we
that
that
it
difficult
be
of
war
in
case
arms,
ammunition and equipment
to fight anything but a battle of
made
methods
retreat.
made
to
from
abroad.
We
that
defense
Korea
Some
people
remote places.
It must be made here on the home
front.
Expansion of Federal Government
Specifically,
internal
great
the
further
expansion
of
Federal
the
the
certain
measure
•
the
becomes
the
supreme
over
the
then
purpose
of
Government is
big enough to
organize the nation to accomplish
that purpose.
Every good Amer¬
ican must willingly accept what¬
nation, and
only agency
the
sacrifice
ever
is
required
his
as
personal contribution toward win¬
ning a war or toward prepared¬
ness
against
war.
But
every
American also has the right to
entrench Government's power over
the
people
this
of
at
In
country.
Who
made
Some
that
blank
a
the
about
matters
think
to
They
now.
effect, let's give
in
ment
afford
cannot
such
about
say,
I
people take the position
we
check
govern¬
and
worry
later.
consequences
If
Communist, this is ex¬
actly the kind of thinking I would
like" to
see
prevail.
It is the
"emergency" psychology; the "act
first and think second" type of
were
a
attitude
that
is
has
been
know
.iot know
and
its
We have
name.
Russia's
actions. Did the American people
nave any voice in the decision to
siop the
American armies on a
bit from
by
line which gave Eastern
Germany,
.ncluding Berlin, to Russia and
permitted Communist domination
jf
Czechoslovakia,
he
countries?
Hungary
Why
and
Ger¬
was
dismembered, arid why
United
isolated
States
was
from
Berlin and allowed passage
of the city only as. a
the
patten* of division set
Germany ' and established
38th parallel as a potential
in
up
the
line of battle?
Practically every
advance
in
the expansion of Russia and every
vantage point from which she
can
oy
harass
As
all
we
know,
Federal
the
Government's
direction
trol
over
American
was
expanded in the period from
the
and
the
1933' to the start of the
that
extent
the
try.
no
to
an
precedent
in
war
previous history of
Following
the
whatever*
move
swollen
to
continued
inflation
during
the
war,
made
diminish
of
power
also
our coun¬
Administration
Truman
It
had
in
no
the
government.
period of
peacetime
the
a
spending and controls that had
been
supposedly
introduced
to
combat depression. In addition, it
reached
out for
controls
new
greater
and
ture,
industry, agricul¬
medicine,
education
and
other
fields—to
over
attain
what
it
considered
socially desirable ob¬
jectives. Though it bitterly denies
this, • the Truman Administration
is socialist in spirit, and, in my
opinion, its actual objective is a
socialist
be
United
thankful to
States.
some
We
can
good Amer¬
icans in
Congress that it has not
entirely
in
reaching
this objective.
succeeded
But
extent
it
has
government
a
remains
profound
achieved
tween
and
change
in
the
the
States.
succeeded
that, although
the
The
to
of
the
form of
unchanged,
has
been
relationship
Federal
people
our
be¬
Government
the
United
Government
has
vastly more to say and the people
vastly less to say about the affairs
of the people. It is a fair question
us
leadership
and at
time
no
of
was
country—
our
were
the American
informed, let alone con¬
practice of secrecy has
The
been carried down to
huge
item in
Korean
me
all
was
been
con¬
military
ex¬
Federal
the
of
of
Now
peace.
all
this
find that
we
total of
money—a
$50 billion since June, 1946—less
than
one-third has been
tually be used in fighting
and only one dollar out of
has
been
and
spent
on
new
a
entire four years and that is less
than the amount spent on
military
;
certainly is not a record
inspire confidence. Operating
with
free hand in the
a
field
diplomatic
during
and since the war,
the Administration has made mis¬
take
after
duced
us
mistake
to
has
and
condition
a
describes
now
as
re¬
which
of
one
it
grave
national danger. With a free hand
billions of dollars to spend,
the
Administration has allowed
For reasons best known to
itself, the present Administration
does not believe in
taking the
American
people into its con¬
fidence.
I
vvith
the
hit
the
first
Pearl Harbor.
on
of
of
certainly
all,
After
country.
Government
our
people,
is
not
the
there
considerable
How
North
must
38th
it possible
was
scale
and
same
travel
the
across
large
a
Koreans
are
and
all
since the end of
North
South Koreans
ways
was
rep¬
in Korea for almost
of the five years
the war.
Korea
oeen
people
shock of
the
That
me.
resentatives
had been
from
news
American
something
the effect
of
military strength to decline
to 10 partly trained and
poorly
equipped divisions. Can we find
security
in
making
the
whole
United States into a military
gar¬
rison under the command of such
not
Blind Dependence
It
for
Korean
a
army
sponsibilities
This
largeto be
the
one
Our
this?
thing
we
Government
policy
the
resist
to
Of
in advance, why
preparations not
proper
on
Korea.
Asia
and
some
not
re¬
vigilance
and
a
why, and insistence that
single economic function
ser¬
be
unnecessarily
from
private to public control. In final
analysis, in peace, war, or prep¬
can
for
history
defense,
on
a
the
country
our
enterprise of
whole, and Ameri¬
proves that the
way
is the successful
tive
way.
can
and
private
produc¬
doubt that in the last
the chief advantage possessed
not only by the American armed
forces, but also by the nations
war,
allied
mass
with
of
our
country
material
possible
and
by
was
the
equipment
the
leaders
military
enormous
United
Government
did
there
was
good
to
reverse
the policy,
the product of
why were no adequate
preparations then made for de¬
economic
fense? One way or the other, there
terrible blunder. It is being
to
was a
paid for
now
by young Americans
private,
our
they
are
by
achieve
American free,
competitive,
capitalist
system. Free enterprise
demonstrated an amazing capacity
convert from usual peacetime
operations to the unfamiliar jobs
to
year
II, it can be met
of the present capacity
of
1952.
.
and
a
large
very
1
.
military
reserve
companies know what steel it re¬
The steel companies will
—
see
bomb
of
built
was
the
genius
dustrial
and
steel
because
American in¬
of
engineering
He
of
said
finally:
assets—one
our
"The
greatest
must be
still
and
is
our
I
the
to
am
the
basic
strength
and
is
and
her
eco¬
industrial
strength. If
that strength
want to preserve
we
hands.
The
mine
be
must
kept
surest
in
Think
under¬
will
impose
of
system of controls.
is-not true solely be¬
this
cause
government
control
to
siderations
that
mixed
ideological
have
since
1940.,
There is a very large
ships, for instance, both'
war.
of
and
commercial.
Defense
and bases are
still in existence and should
have
been
maintainedin
reasonably:
good condition. To the extent that"
they have been, there will be no
job of production
become
50%
plants, cantonments
the direction of people who don't.
is also because under govern¬
bound
least
it.
today we still haveequipment and many
installations built during
the
combat
means
It
is
is
at
the last
taking the job of production out
with political and
economy; I do not
single important indus¬
a
of
reserve
of the hands of people who know
how to do it and placing it under
ment control the
to
applies
much of the
deadening
And
also
remember that
strength
be to allow government to
worse.
Against this greater
capacity to produce, we must also
private
to
way
national
our
be
con¬
Can Produce More
industry
that
creased
keep it growing, the economic
system
be
not able to produce
in larger
quantity and more effi¬
ciently than it could 10 years ago.
The
manufacturing capacity of
the country as a whole has
in¬
Mr. Baldwin is right. Our coun¬
try's
will
entire
know of
try
they
may
that what applies
sure
steel
If
you
—
and
left
mar-;
government
result
All Industries
Economic System Must Be Kept
in Private Hands
nomic
free—if
fusion, waste
production."
mass
left
that the
sure
indus¬
be
normal
by normal methods.
imposes controls
capacity for
enormous
should
their
serve
not
are
preserved and fostered—has been
trial strength and our
companies
to
kets
know-
which
that all essential demands have
free
chiefly
how, not because of American
military development skill."
need
for the steel and
terials
up
for
con¬
that
the
went
other
ma¬
them
nor
into
required
manpower
to
place in, build them.
no
it.
The
steel
splendid
are
present
that
industry
illustration
controls
It
is
military
id
in
Compared
affords
of
a
why
required
situation.
in
the
estimated
requirements
the
increase of those requirements
by
the proposed extra expenditure of
$10y2
billion
another
3%
would
to
5%
need
only
steel
pro¬
of
duction. On this basis, even when
the
foreign
aid
programs
are
added,
the
total
tion.
against
consider
that
that "requirement
the
steel
industry
has increased its capacity by al¬
most
19 million tons—or 23%—in
the past 10 years. In other
this
increase in capacity
words,
would
double
the
take
of
care
Let's
another way. In
uses
steel
alone
about
military and foreign
quirements.
aid
look
1943, the
re¬
at
it
year
of
war production, direct war
required only 38% of total
shipments—and- that would
amount
States,
I
cannot
need
that
a
the
to
Europe
—
end
the
steel
the
of
total
the
of
amount
delivered
and
in
war
to
ship¬
makers
of
ordnance, projectiles, planes and
tanks, and for the construction of
defense
plants,
cantonments
bases amounted to
27%
of
same
total
amount
steel
of
a
total of
shipped.
steel
and
only
That
would
be
only 21J/2% of present capacity.
I
don't
like
to
overburden
you
with
figures, but I want to point
one
more
thing. Since
the war, approximately 29 million
tons of ingot steel production has
been lost
through strikes. That
out
just
strike loss equals more than onethird of the total amount of steel
the
any
regimented
a
Adminis¬
government-controlled
atmosphere
an
of
excellent
promotion
crisis
of
will
afford
for the further
cover
its
socialistic
pro¬
gram.
This is
a
most serious
that must not be
danger—
pushed into
the
background
by the dan¬
ger
of
one
war.
It
even
creates
problem
a
that is by no means
partisan. It is
problem for all Americans. There
a
are
Republicans who
have
will¬
ingly helped the Truman Admin¬
istration shove
the
road
our
toward
there have been
of
the
country down
socialism.
And
sharper critics
no
socialistic
nature
of
the
Administration program than Sen¬
ator Byrd,
former Secretary of
State Byrnes and other outstand¬
ing Democrats.
.
The
Truman
denies
is
for
economy is exactly what it wants.
The thing I most fear is that the
confusion and distraction of an
vehemence
that
United
how
creates
consistently
early
1945—
enormous
see
economy. The present
tration
has
shown
only 30% of present
capacity. In the 52 months from
through April,
this
situation
genuine
to
1941
with
potential of the
present
requirement for
steel for all of these purposes will
not exceed 10% of total produc¬
.Now
economic
no
regular Federal
igfet this year would take only
1.6% of total steel production. The
builders
not
grow
peak
for civilian requirements. All
that
government has to do is let steel-
which
many
the
War
priority. They can do that byvoluntary allocation. Beyond that,
repeatedly
worth
cause
and
—
should
of
the
And
war.
There is ample steel for
needs
chiefly
at
government
arsenals or proving grounds." ■
finished
defending. that production. Its total contribu¬
That policy may have been per¬ tion
to production was
very small.
fectly valid from both diplomatic" The gigantic and
complex produc¬
and military standpoints.
But if tion for war came from
factories
it was, why was an attempt then
and industrial plants
throughout
made
to
defend Korea?1 Or, if the
country which were themselves
as
in
scale
veloped
States?
testified to this fact. Even
Joseph
Stalin admitted it.
of
items
situation'
approach
tary designers and have been de¬
peak
Who
end
research
or
Tnose
not
transferred
the
off
so
all
self-government.
constant
Our
parts
for
the
activities of public
clear
brushed
other
time
production of
Early this year,
Administration
Korea
no
blind
vants;
determination
to
know
what is going on in public affairs
made
had
is
reassume
sure.
be
can
the
Government for
of
means
the
over
Government
on
stop
It
to
is dependent
the people as
into
Or if they knew
made
on
have
parallel.
to
things.
aration
trained, equipped and
position for invasion
without our representatives hav¬
ing advance warning of any kind?
were
time
dependence
many
organized,
moved
is
kind
both
the record does,
say
support any such conclusion
individuals
believe
Korea
our
leadership? I
which
developed
or
industry
to
struction will
bring our total ca¬
pacity to 106 million tons by the
outgrowth of commercial
designed
irom
over
primarily the product of mili¬ quires.
a
This
of
proportion
World
lag
seven
what is designated as "housekeep¬
ing expenses." Only $600 million
were
spent on weapons in the
to
the
war
weapons
in
we
ac¬
equipment. The rest went for
travel.
those
are
use
100 million tons—and new'
facilities that are now under con¬
quality, as well as in
But tnose items which
...
war
present
full
demand
with 30%
some
lead
we
the
our
begin
in
if
are
spent on
and machines that could
men
the present
day.
con¬
economy
at will
acquired
Russia under agreement with
people
today.
have
the
of
in
direct
in
not
even
On the atom bomb he said: "The
thing
and
sulted.
for the fix the United States is in
time
out
out
Korea
of
budget. In fact, this item has been
given as a major reason for tax¬
ing the people on a war basis in
does
what commitments
now
bit
time
the
We
penditures
Congress—did
even
at
made in
vvere
learned
basis
the
scious
American
the
that
public—and
aot
bulk of national pol¬
icy and action during these past
17 years. In my opinion, it is the
thing that is largely responsible
for the great
brought
Yalta, Teheran and Potsthe American public
.nformed about these agreements?
fact
Department
that
equipment
scientists.
were
the
shocking
to light by
situation.
the
Was
fhe
the
and
Another
deals at
aam?
by
So
to
the
doubt
no
in
private
representatives
reported
of
usage,
not in
was
is
best
are
ent Administration.
threat
terrible
a
the
responsibility for
Korea rests squarely on the pres¬
possible for Russia
such
security?
Korea
government
State.
When
II.
MacArthur's jurisdiction.
directed
in¬
of
door
in and
favor
of our present
national leader¬ from Russia? In return for just
ship* that is a real arid serious •ive days in the Japanese War,
danger against which we must vvhy was Russia given a virtual
guatfd ill the present situation.
lease on Asia?
Who repeated in
View of the character and record
broke out,
The
little
too
the
Who made it
other
broaden
kept
competent, unrealisitc leadership.
many
to
not
lies
ation
and
and
and
War
steel
does
W.
quantity.
are
for
demand
"There
world
war
own
nized
items
there
expect that Government will use
this sacrifice only for the purpose
given
extent
in
hands, that may be
true.
From that point on,
the
major responsibility for this situ¬
iheir
our
war
the
those
to
under its
was
men
World
enterprise
or
that
that
can
marvel at the
in
free
superior
ior
through April, 1945.
Certainly, the military demand
•
Baldwin, a recog¬
expert on military affairs,
skill and speed with which he got
men
and supplies into action —
even
by
were
he
and
military
1941
products
understand
thankful
arnment
become
of control
To
wholly
Hanson
be
snipped
the
by government
General
We
Furthermore,
case,
had this to say in a recent article
in "The Saturday Evening Post":
mighty
I
after
direction.
responsi¬
way
situation.
nearby,
General
„o
Winning the
economy.
in.
no
this
that
production.
about
doing in three weeks a job that
would have required three months
the American
way
are
to
a
impression
to blame for the situ¬
we
power
the Government must have
war
the
some
Government.
Everyone accepts the fact that in
create
read
you
MacArthur is in
for
clear
be
is,
people gave too much au¬
thority and responsibility to Gov-
threat to American freedom is the
of
things
all
that
other
that the
a
in
made
be
cannot
other
in
or
the
are
ation
defend
must
And this is
in
mat
at
of
hear
and
protect it against attack
against this threat.
Unrealistic
should
thing:
ble
Leadership
guard
freedom
surrender
must
has
it
to Korea.
us
Incompetent,
it will be said,
because,
against,
horhe
to
that
Korea
too
one
a
free¬
within and
from
comes
will
is
there
threat against
serious
most
dom
we
that
remember
is:
answer
brought
preserving American freedom. We
must
where all this has brought
And
I
believe
a
brief and
ask
10
be
may
sent
were
We
To
into
few in numbers and with too little
Thursday, September 7, 1950
.
.
.
that
it
is
Administration
socialist
with
a
which
indicates that
the truth hurts. But its socialistic
character
has
been
noted
fre¬
quently by neutral observers Who
certainly qualify as experts on the
subject. One instance is the state¬
ment
of
the
Strachey, who
own
Englishman,
John
attacked in his
was
country as unfit to hold his
position of Minister of
present
War
because
of
his
Communist
sympathies.
Strachey
said
the
Truman Administration was—and
I
quote—"one
of
the
most
left-
wing in the world today."
Another expert is Earl BroWder,
former
head
of
the
American
Communist Party, who said that
state
capitalism (or socialism) has
progressed
farther
in
America
.
Volume 172
Number 4940
.
.
Chronicle
The Commercial and Financial
.
(917)
20
t
than
in
Labor
Great
Britain
Labor
the
under
Strachey and
Browder
speak critically.
did
labor
ord.
To
the
that
that
time
control
he
be
complete
the
over
was
given
action of
wartime
American
and greater powers
allowed
in
the
demanded the
have their
government
Bill.
the
steel
Union
He
Company in a specific case which
describe.
On this ground,
busi¬
I shall
troduce
to
the
Spence
Bill
which
under
the Union's reason for existence.
tions he
posed
fit.
saw
Then
the
Administration
the
would
terms and condi¬
any
and
farm
every
farmer in the country under gov¬
control
ernment
at
ad¬
enormous
ditional
cost
to
the
whole.
Add
to
these
people
as
things
a
the
Administration's plans for public
housing and the control of medi¬
education
cine,
ties, and
you
other activi¬
and
have socialism clear¬
ly blueprinted.
the
Government
production — and after the
Weirton Independent Union had
the
Weirton
em¬
ployees without opposition of any
kind for three years, the CIO sud¬
represented
denly started an organizing drive
in the course of which it brought
large
last
April,
Senator Byrd
warned
that if Congress adopted
the Adminstration
program
it "would
commit us irrevocably to a social¬
istic
be
state
We have
of the
can
practical meas¬
magnitude of this Ad¬
a
very
ministration
tained
in
Executive
program.
Expenditures in the
on
enforcement
Hancock
this
re¬
the Committee Chairman,
Senator McClellan, of Arkansas,
revealed this startling fact: The
preserve
peace
only source of deputies
would be Weirton employees and
that since he had no money to
deputies,
pay
Steel
Weirton
the
would have to provide funds
this
Weirton
The
purpose.
the next few years
would increase
total Federal expenditures to $65
billion
I
more
or
emphasize
to
want
the
that
Administration wanted to add this
increase of more
billion—an
$25
this
strued
by
the Court as domina¬
Weirton Independent
with the
interference
and
Union
con¬
was
the
of
tion
each year.
respect
in
organizing efforts of the CI0;:
What was the alternative? Non¬
than 50%—to the peacetime budg¬
interference, under this construc¬
And I want to
tion, would have meant giving the
CIO a free hand to shut down the
the country.
et of
point
out
$5V2
the
against
that
billion deficit in the current budg¬
Weirton
et, there has been an increase of
$6 billion in the past two years
in nonwar-connected, civilian,
have
domestic spending.
in
That $6 billion,
of course, came
of the American
would also be the
source of
the projected $25 bil¬
lion.
And the thing the Admin¬
istration wants to buy with this
out of the pockets
That
people.
away
from them.
Anyone from Weirton can speak
more than average authority
with,
about
the
attitude of the present
Administration toward individual
freedom and
17
Weirton
der
the
self-government. For
of
the
Steel Co. have been
un¬
years,
the
employees
pressure
to make
policy has been to use
the power
Government wher¬
possible to stamp out inde¬
of the Federal
ever
unions and leave em¬
ployees with the alternative of
having no labor organization at
all or of joining one of the big
pendent
national unions.
In
NRA.
the
the
case
Weirton, under
of
Wagner
Law,
and
the
there
have
teen three lengthy legal proceed¬
Taft-Hartley
ings'-
Each
Law,
was
instituted
by
a
producing
capacity.
It
at
produced critical non-steel mate¬
rials, most of which were made
nowhere else.
It produced 8-inch
shells at a time when they were
urgently needed that they were
across the Atlantic directly
flown
the battlefronts.
consideration
No
Board
was
given by
—
last July.
land
Labor
the
propriety of the CIO attempt¬
these conditions.
that the wishes of the em¬
taking
a
group
war
—
them
sion
CIO
of men away from
jobs — and forming
army for the inva¬
of Weirton.
The fact that the
large
into
an
Independent
Union
was
choice of the
vast
majority of. Weirton
em¬
ployees was ignored.
No impor¬
tance, apparently, was attached to
the fact that labor relations in the
the clear bargaining
Weirton plant
had been so consis¬
that
good
tently
not
a
single
pound of production had been lost
as a result of labor trouble in
17
Think of it.
years.
During a pe¬
when strikes
riod
of
were
rife throughout the
there
at
17
years,
Weirton.
Weirton
case
basis of legal
result
of
the
the
leaders,
labor
on
Labor
Government,
and the
as
it
Denial of this right
of employees vio¬
lates the principles of individual
freedom and self-government.
And in the case of Weirton, the
Labor Board has flagrantly vio¬
lated these principles to enforce
acceptance of the biased and un¬
fair labor policy of the present
employers.
on
to
as
Board's
review
Our
exceptional,
is
Weirton
itics
sharp revision
a
attitude
We
usual.
as
only one of many victims of
cies
only
bureaucracy
through
arm of Federal
Government now reaches into the
sprawling
the
long
of
affairs
communities,
individuals.
This
states,
and
business
hodgepodge of boards, bureaus,
commissions,
and
so
forth, is
really out of control.
It is so com¬
that no one in Washington,
including members of Congress
and the President, has a clear idea
plex
of its powers and ac¬
of the scope
Hoover
The
tivities.
Commission
Report indicated the terrific waste
and
inefficiency for which this
responsible. Yet
with
practically
no
check on
them, these agencies — each ob¬
is
bureaucracy
importance—
continuous effort to ex¬
sessed with its own
make
a
authority. People
pand in size and
social, political and
frequently man¬
dubious
of
economic
ideas
to get into positions of con¬
trolling influence in this bureauc¬
age
How or why, no one seems
know.
Most of these people
racy.
to
public and
unreachable by the public, yet
often they have the power to act
as
lawmakers,
policemen
and
unknown
are
the
to
,
costly
will
More
of
be
Controls
most
a
dangerous
if this bureaucracy should
permitted to take over and use
its own
discretion the huge
thing
be
at
additional
spending and the vast
system of controls which the
country is now asked to undertake
in the matter of national security.
We can
be sure that the result
would be waste and inefficiency
on
a
much larger scale, and be¬
beyond
domestic
that
the
socialist
which—as
from
America
Senator
Byrd
says—there could be no retreat.
It
is
evident that Congress—
particularly, the Senate
this danger in mind in its
and more
—had
deliberation
The
the
Control
Bill.
legislation properly reflected
determination to keep out of
hands of the President a de¬
of power which no one man
United States should ever
gree
in
on
the
this,
have.
re¬
the
much
higher
than
to
up
plainly
calls
present
for
truly
rise
can
political
Unless
dis¬
been
The
leadership that
narrow
of
degree
has
now.
consid¬
country gets
our
future will be, indeed,
very dark. Let us, as individuate,
do
our
part to build an over¬
whelming
public
demand
for
our
statesmanlike
critical
in
conduct
these
times.
defense
should
and
ven¬
inaugurate
Walston, Hoffman
a
genuine economy in
departments of government.
all
has
time
The
Bellingham Branch
of
program
realistic
for
come
a
BELLINGHAM, Wash.
position
relationship to the world at
large. It should be apparent that
appraisal of
our
Tuesday, Sept. 5, in the Belling¬
ham National Bank Building. This
the United States has neither the
every
Nor has it the
nation.
the
to
lift
to
resources
to
other
resources
battles of
the
fight
the
nor
manpower
manpower
every
heights
of
other
pros¬
carried
has
look to
America for everything.
We can
help other nations and, within
other
aging
nations
to
safe1 limits,
shbqld help them.
But we should make it clear that
aside from this limited help
them
to
their
solve
to
it is
own
problems of both peacetime needs
and
this
And
defense.
policy,
I
firmly
believe, would be recog¬
nized by other nations as being
in full accord with the reality of
have
I
firm
confidence in the
Our
entire
history proves that when the peo¬
ple have the facts, in the long
run,
they make the right deci¬
sions. The plain and unfortunate
fact is that our country today is
every
people.
to
Stock Ex¬
offices in
Bellingham and offer its facilities
the
to
open
residents
of
Northwest
Washington.
Managing the Bellingham office'
is John
L.
operating
Walton, who has been
investment business
an
in Bellingham under the name of
J.
Walton
L.
has been
for
in
1942 to
forces.
the
quently
part
he
Fenner
&
the
with
Exchange
Pierce,
Foster
and
&
Walton
Mr.
securities
busi¬
continuously since 1928.
ness
Associated with, him
F.
Subse¬
Lynch,
Seattle.
in
Lt.-CoL
a
Stock
Beane
in
been
has
as
1947.
associated
was
Merrill
of
Walton
having left the
the armed
of
York
New
firms
Mr.
enter
retired
He
latter
the
Co.
years,
many
city
&
resident of Bellingham
a
Marshall
the situation.
American
the first New York
change
our Gov¬
abroad the
bad habit bred at home of encour¬
up
is
Unfortunately,
ernment
Wal¬
—
ston, Hoffman & Goodwin opened
their 31st office in
Bellingham,
in
Webster,
ton
and
versity
a
Washington.
of
associated
been
is Shailer
native of Washing-;
graduate of the Uni¬
a
He
with
has
Walston,
In this pres¬
the people are
far ahead of their leadership, and,
Hoffman & Goodwin in Seattle for
in
Bruce
at the
weakest
opinion, the evidence that
my
this
top.
of crisis,
time
ent
realized
is
in
contained
its
Control
Bill.
member
that
action
But
is
Congress
by
the
even
on
the past
officer in the Merchant Ma¬
an
Needed
to¬
is less dependence on gov¬
ernment, more dependence on the
individual
effort
of
the
people
affirmation
and
for
calls
a
re¬
acceptance
of
responsibility. And this
is the essence of self-government.
Individualism
is the
thing that
individual
America
distinguishes
the
from
Communist
and
Bellingham
is
country
our
the
a
office is com¬
change and other stock and com¬
modity quotations. It has
into .the
a
private wire from Walston,
direct
Hoff¬
& Goodwin's Wall Street of¬
man
fice to Bellingham
that will per¬
mit immediate execution of orders,
quotations and the latest in¬
fast
formation
on
The
6
from
a.m.
Walston,
that
thing
Quinby,
is office sec¬
equipped with a stock
quotation board carrying approxi¬
mately 100 New York Stock Ex¬
coun¬
built
strongest*
most progressive, and most pros¬
perous nation in world history.
Yet, in
our
time, it has been
greatly diluted by transplanting
into the United States the prin¬
It
tries.
newspaper
W.
retary.
news.
Socialist
and
R.
native of Bellingham,
The
This
Mrs.
business.
pletely
Regeneration of Individualism
most
insurance
the
in
leadership.
themselves.
he served
rine and prior to the war had been
strongest
needs
several
for
war
as
basically, America
is
the
strongest country—is in
constant
danger
under
weak
America
Seattle
in
During the
years.
re¬
country—and
,
several months, and prior
had been
with
Conrad,.
thereto
the
must
we
market
and
be
will
open
to 5 p.m.
Hoffman
Goodwin
of-
&
founded in 1930, has three
was
ficek in
New York and
offices
31
world
office
situated
in
are
those
among
which
its
are
Philadelphia,""'Pitts¬
,
ciples and methods of
which
of
so
have
collectivism
the
downfall
in the
history—and particularly,
many
world's
caused
other nations
recent history.
,
i
■
of individu¬
alism can start only among the
people themselves. It must start
The
regeneration
the
homes, the,,villages"and
It also sought to prevent in
exercise of control powers in; towns of America. It must start
the
a
erations.
nothing to
new
yond
ship
above
day
Danger
It
for
What
judges.
pol¬
of
are
the Administration should set
its pro¬
the
one
people,
leader¬
of
the example by stopping
perity.
of many agen¬
that
pursue
such conduct.
Board is typical of the vast,
Board is
the
national
patriotic
With sacrifices in order for every¬
nation
highhanded, dictatorial conduct of
Government
under
the present
Administration.
And the Labor
we,
demand
situation
point where we can afford to
perpetuate mistakes to protect the
reputations or political fortunes
of
the
people who made them.
one,
conclusion,
competence
the
is
but
on
today
in the
situation
country's
Administration's
and
Administration.
In
must
played
for
of
positions of
West Virginia.
program.
calls
Chamber
hold
leadership in communities
throughout this great State of
entire
this
of
this
who
natural
that, I would like to see
Congress set up machinery for the
continuous
of
Commerce
board.
a
And may I urge that
example
members
the final decision
of such
accept its re¬
individuate
Such
can
be given most
effectively by the kind of persons
gathered here this evening—the
Beyond
group
any
this
stature
posals
the
Labor
the
to
example which other*
an
will follow.
beyond
tures which contribute
the
technicalities
such
be
employees should be just as bind¬
country,
a
would
vail—and
single stoppage
The decision in the
was reached on the
not
was
themselves, should pre¬
that this protection to
ployees,
plant under
a
No question was
the
about
raised
jobs
or
shut down
to
ing
If the labor law of the
anything at all, it
means
means
will set
that
they
the reach of
partisan
politics.
Through
its
power of confirmation, the Senate
of
zens
working
entirely of their own making and
entirely under their own control.
They have shown this by over¬
whelming votes in election after
election
98%
in an election
this
of
determined to
of
American
are
rights
and
sponsibilities.
both
program—on
the
citizenship
the mil¬
itary and civilian side—under a
civilian board composed of citi¬
new
the
em¬
the Court to
the
of a continuous: Weirton
them give up
self-government in labor relations
and accept imposition of the Ad¬
ministration's labor policy. That
compaign
steel
regular
to
taken
1944—at the climax of the war.
The Weirton plant was
people to pay this vast amount to
have individual freedom and the
self-government
place?
remember, all this happened
Now
so
of
ruled
the time these events took
huge spending is a Socialist United
States.
It wants
the American
right
Would the Court
that this be done at
plant.
overall administration
the
assert
Congress place
see
opportunity, unlimited funds, and
unlimited support of the Federal
Government in presenting
their
case.
The plain fact is that the
Weirton employees want a union
which
action
to
and
ployees willing to serve as depu¬
ties.
The Sheriff then enlisted a
legislation which the Administra¬
tion was urging Congress to enact readiness to be deputizied if need¬
These men were never actu¬
would add a total of $25 billion ed.
to the annual budget and within ally deputized.
But the company's
like
close
Weirton
years,
founded, who
I would feel safer
were
done.
I
ployees are probably the best inlormed group in the country. The
national
unions have unlimited
The
he
in
would
a
thing
selection
management agreed to provide the
funds and to give time off to em¬
body of about 150 men which
held
under
his
jurisdiction
another
individuals who know their
country's history, who believe in
the principles on which it was
them.
on
exercise
the
tion
for
port,
to
without a large group
of deputies.
He said also that in
view of the war manpower situa¬
the
last March—long
In the letter transmitting
unable
be
would
he
Co.
before the Korean situation arose.
Sheriff
that
The
date
For my part,
if
with
fore¬
putting
by
permanent
powers
and
manner
tendency to make these
in
and
dependent for law
on
the
Sheriff of
the
would
17
of
ence
ing
plant. At that time,
unincorporated and
County.
say
laws, and alter an experi¬
labor
Board
gates
In this day
it would be abso¬
Today em¬
ployees
generally
are
familiar
with
their
rights and the re¬
straints on employers under the
into
told the Weirton management
re¬
This
Departments.
made
was
It is con¬
Senate
of the
report
a
Committee
port
there
retreat."
no
ure
which
from
was
entirely
was
the
block
to
Weirton
Speaking here in White Sulphur
outsiders
of
group
shut down the
Expenditures
night on
operating day and
war
Weirton
Excessive
Weirton plant
when the
war
was
a
,
1944—in the middle of
In
order.
for that
basis
is the
here
Now
Case
Labor
Steel
Wierton
The
pro¬
which
Plan
Brannan
bring
the
with
This, of course, destroyed
Union.
put the government into any busi¬
ness
Company
relations
its
end
the
ordered
Court
the
President to
the
empower
organized, it was domi¬
by the
was
nated and interfered with
ness, and this was followed up by
the Administration attempt to in¬
would
to
the Court also ruled that after the
authority to put the
into
desired
who
employ¬
of employees.
group
labor organization,
own
I
age
stall
Weirton
its
is pure nonsense.
and
large majority of Weir¬
a
the
dominates
Co.
lutely impossible for any employ¬
er
to
dominate or control
any
Independent
employees
ton
econ¬
than Congress
Control
a
Court ruled
the
is
arbitrary
an
terminal
that
claim
The
Steel
ees
Weirton
the
He actually asked for more
omy.
ruling from
a
That
own.
genuine domination.
em¬
ended
case
their
than
wishes
its
follow
employees
rather
the
its
that
Union
formed through the voluntary
Although
just a few, in
1949, President Truman
demanded
with
ton
Steel
Circuit Court.
rec¬
mention
January,
at
Administration
latest
The
month ago
a
of
to make Weir¬
lentless campaign
cn
Weirton
organization
ployees.
socialism, and their observations
abundantly supported by the
of
the
Co. dominated and controlled
not
They believe in
are
facts
that
based
and
Board
charges
Government.
Hartford, San Francisco,
Angeles, Oakland, Portland
burgh,
Los
and
Seattle.
The
Bellingham office will be
with various statistical
periodicals and ^corpo¬
reports which; are prepared
equipped
manuals,
rate
by
staff of
the' company's large
-research
experts
located in New
York. San Francisco and
geles.
Los An¬
' -m
,
26
The Commercial and Financial Chronicle
(918)
Continued from first page
the
It has
tween
that the
about
in which the text of the President's address
have taken the
we
Tuesday
Halt
Kaiser-Frazer
For
Settle
Warned to
Work; Strike Fusion
top-pri¬
ority atomic bomb parts and naval marine engines was at
a standstill
today at the plant of Babcock & Wilcox Co.
as about 3,500 workers struck for
higher wages."
Slows
"Furniture
Work
Workers Get
Manufacturers
—
Aniline
General
Increase—The
Association
of
.
.
Minimum
.
wage
scales
stand at $2
now
an
hour."
"Elgin Gives 7% Rise (to its workers)."
great enough to list the work interrup¬
tions, the wage increases wrung from employers at
inflation is to
creases
will be
no
be
time
a
avoided.
Obviously if wage in¬
are to be substantial and
general at this time, there
no
way under the sun to prevent prices from rising
matter what the President believes
or
desires.
enough for them about
many
matters and in many
ways.
most
difficult
of his first and perhaps
one
tasks
will
be
to
hold
in
of his
one
check the
labor
monopoly he and his predecessor in office for so long and
with so much persistence nurtured and
encouraged. So far
he
seems
to have had
very
A Direct
But
his
responsibility
indifferent
success.
the surface. The President and the others
millions, and hundreds of millions
are
when what is
World
make all the blunders of World War II
financing. It hardly
lies in the mouth of the President to talk much about
pre¬
own
Secretary of the Treasury
War
one.
II
and
thereafter
studies
made in the interest of
were
reviewing
the results of EPT and seeking to
utilize the benefits of our previous
experience in drafting any similar
law in the future without caus¬
ing
unjust
hardships
certain
to
businesses and groups such as the
dustries.
The report of a special
committee
of
ciation
Railroad
of
the
Commissioners is
National
Asso¬
Utilities
and
example. Ap¬
Senate majority or
the
an
near
majority in espousing the
O'Mahoney amendment is willing
to
ignore
proach
the
of
workmanlike
ap¬
organizations
and
groups such as NARUC. \ Further¬
in 1942 it
the Roosevelt
was
during the next two1
or
Secretary
Morgenthau
Assistant
who
Secretary Sullivan,
exercising relentlessi
were
for
pressure
fused
drastic EPT while
a
conservative
more
to
presumably
wishes
the
Congress,
the
to
electorate,
which
radical procedure.
espouses a more
The Line
re¬
Today
It is
attuned
more
the
of
Congress
along.
go
reversed.
are
three years go no
extended rearmament
program,
Even if present and future financial
an
is
a
diffi¬
management
is good, the existing
inflationary potential left from World
War II would? still have to be reckoned with.
and
that,
at any rate they were doing so for a period
of time after the outbreak in Korea. This sort
of
or
thing is
contagious of
then to
It tends to spread first to retailers,
others along the line of
supply. It has raised the
course.
banker
toe
com¬
familiar Mephistophelian
triumvirate, com¬
plete with cloven hoofs, red
tights, carrying tridents and wav¬
prising
the
now
ing arrowed tails.
You need not
go down to East 13th Street in
Manhattan
to search
well-filled
shelves
for them
the
of
on
Work¬
Bookshop
among
offerings
Century Publisners, Inter¬
the
light of
all
these facts,
will
there.
find
origins.
than
work
processes
leaders
must
whose shoulders
on
the
rest
coping with them.
if
so,
Candidates for public of¬
fice usually conduct themselves in
whatever
fashion
they
will
the best
interest of
at
be in
least will
be
vor
majority
lay
at
of
Profits
the
any
and
de¬
attempt
Their desire does not
stem from any
of
now
Tax
probably consider
its enactment an
stalling.
alysis
Just
of Americans fa¬
Exess
an
or
pleasing to their
future constituents.
great
believe
cold statistical
income
corporate
an¬
vilify and discredit the
"profit ' is not new and is
smear,
word
firmly
ciples.
based *
before,
War
Marxist
oir
any
special
group.
They
keenly feel the need of more Fed¬
upon
budgetary income to finance
growing military establishment,
line
of
least
resistance,
politically speaking, is in the di¬
rection of "'doing something" to
profits rather than
of
cutting
down non-defense
appropriations;
Corporate
pear
many
profits, therefore, ap¬
to be more expendible than
superfluous
activities which
are
prin¬
Despite the brilliant
formance
of
American
during
industry
after
and
per¬
World
II, it has been under almost
alleged
shortcomings and sins, chief of
which is an accusation of making
overly
large profits.
From ihe
viewpoint of those who aim to de¬
stroy
enfeeble
or
productive
—and there
ly
the
effort
they
pui poses
American
whatever /'
for
have in
may
mind
several, not
are
mere¬
profits constitute the
jugular vein.
This is good Marx¬
ism, as anyone can recognize who
one
is
—
willing
to
wade
through
the
heavy rhetoric of Chapter VII of
"Das
Kapital"
'"the
labor
duction
since
which
of
the
with
the
pro¬
surplus value."
Ever
Communists
from
deviated
never
that
deals
and
process
Marx,
quickest
have
their
method
place
time
from
15
years.
to time in
Since
v-j
in
heard
we
of Commerce Henry
retary
the
uay
1946 from Sec¬
Wal¬
industry were exorbitant.
concept.
asked
a
The
leading
munist,
and
coupons
the
laps."
"do
your
will
rest
We
ist
was,
wonder
in
how
and
our
many
non-Social¬
Americans, in and out of gov¬
able"
who have aligned them¬
"exoroi-
"unconscion¬
"monopolistic" profits in
or
recent
so-called
have been aware
promulgating or
parroting the official Communist
"party
line."
T3ne
need
only
that
years,
they
read the
were
"Daily Worker" for
firmation
erature
tft^f
of
is
con¬
Communist lit¬
easily^available. Here
example'culled from a pam¬
phlet written |j^ i^47 by a mem¬
is
an
ber
of
the
fore
Worker*^ addressed
in
by
a
mythical
a
shj||
"The
to
Jones:
it
goes
.
.
the
interest,
the
rent
labor and all of
to capitalists who had no
in
part
.
the
You
Presidential
the
steel
making of the shoes.
will agree that Mr.
Jones (the
owner
Mr. Brown
(the
of the factory),
owner
Nathan Report to
of the land
cations with
part
of
the
value you and your fellow work¬
not related to
meant
have created.
This is what is
by exploitation and this is
<
Steel
CIO,
readership running
a
into the millions.
..."
1
Anti-Business
The
anti
of
the
on
Airwaves
the
on
volume
propaganda
business
-
has
radio
at
times reached substantial propor¬
tions
has
and
taken
various
forms, some of them quite subtle/
Nor
in
well
the
triumvirate
our
ai
x
fared
mind t..at
fied
by
a
movies
the
legitimate
stage.
oi
srn.
and
on
in
profit has been personi¬
"profiteer," rent by a
Bear
landlord and interest by a banker
coupon-clipping
or
the
In
bondholder..
cartoons
they are heavyjowled and silk-hatted and their
stereotypes are invariably cruel,'
selfish,
out
ground
it concerned
cf
much
government
by
various
under
bureaus
guises,'
directly
or
with
"profits."
The
whole idea of public ownership of
electrical power facilities is based
indirectly
on
so-called "cheap" power which
is
not
"cheap"
from
the
all.
at
but
Whether
subsidized.
the
FPC,
it
only
issues
Army
Engi¬
the Department of the In¬
terior, the RE A, the TV A or any
other of the scores of public power
protagonists' agencies or auxil¬
iaries, the propaganda invariably,
seeks to gain reader or listener
acceptance wholly or partially on
neers,
it is free from
the basis that
taint of
prevents further exposi¬
extent to which the,
Space
tion
of
the
private profit.
the
fierce and continuous drumfire of
Left
has
concentrated
been
against the word "profit."
While
the Communists own the original
title-deeds to this form of
tic
warfare,
little
it
coast
of
Z.
Foster
seman¬
have
had
Browder
on
a
attacking
hookup
duPont's
or
General
or
coast-to-
the size
Motors'
profits might be novel enter-
by some standards, but
rating would
be
Hooper
pretty low.
nent
in
Earl
themselves.
William
they
yet
in openly promoting,
success
their
not entitled to take
any
the
on
the
UAW and many other labor publi¬
chinery)
themselves
of
subject by
of the
coverage
taihment
for
Fact-
Industry in 1949 followed by wide,
net
ers
Steel
the CIO
Position
Economic
loaned the money to buy the ma¬
governmental
the
was
which the factory stands), and
Mr.
Smith
(the banker who
on
are
in
in
March,
1950.
widely publicized
industry
There
the
pro¬
out of your
came
again
Board
in
July
and
August, 1949, and the Joint Com¬
mittee on price increases in the
..a
factory owned
profit (en the shoes
duced),
and
Finding
editbfjal board of the
"Daily
worker
March
December, 1948, the hearings be¬
been
once
dividend
fall
in
Report
the
of
really
de¬
Com¬
you
answer
investigations
"Your
writer
American
"What
the
There
greedy
and
fishy-eyed.;
They are usually stuffed shirts,
particularly when they are uni-.
versity trustees.
Only recently
has the public become even re-'
motely aware of the tremendous
amount of propaganda
which has
belief
of
stroying capitalism is to smash the
profit
.
hearings on profits
which
have
taken
prices
last
constant attack fof various
ac¬
counts, or balance sheets nor from
any
desire to inflict injustices
the
of
The campaign
"excessive,"
answer.
alone
responsibility
tant,"
contributing factor, but,
this is only a superficial
at
and, ~ unfortunately,
only slowly being recog¬
by business and industrial
elec¬
a
rather
are
are
nized
to
arith¬
here
they
against
tions is
could
and
Emotional
cerebral
selves
November
only
Congressional Record and
were
the
the
you
need
Joint Committee on the Economic
briefly
of
You
from
ernment
nearness
Labor
which
lace that profits in the automobile
than
is hoped, not fail to note the im¬
plications of the situation we have
Perhaps
and
Association
spring from
rather
non-Communists
sketched.
Publishers
Research
bias against "profits"
investors and businessmen will, it
but
**
share¬
landlord
semantic
checks;
In
a
Meanwhile, consumers remembering the trials of ra¬
tioning and price controls during the last war have been
rather foolishly and
probably vainly "stocking up" on this
the
the popular
bond
eral
Consumers and the Unions
Smith
Mr.
the
Jones
Brown
of
causes
want?" and the
of Least Political
Resistance
would
Now let it be
frankly asserted that the problem of
preventing inflation in the event of another war, or even
efforts
full
In the closing years
independent
many
bad law
administer and
to
injustices.
of
needed
^
Mr.
the reports of
eliminated.
root
metic
Con¬
months
a
be
The
Even then it was,
opinion of many,
—difficult
of
four
trifling with
Again, the Administration is primarily responsible
for the means
employed to finance any deficit arising out
of the Korean conflict and our
general rearmament pro¬
gram. His aides have not made a good start. The truth is
that it is difficult if not
impossible to read in what the
Treasury is now doing anything but a determination to
hold interest rates
artificially low in all brackets, and to
our
since
effort
rearmament
well
re¬
The old EPT, as
over
framing it.
in the
and
a
really serious effort to get these outlays
they ought to be, there has been no sign whatever
of it. True it is, of
course, that some show of economy in
connection with
housing was made some weeks ago, but
the fact is that all this
together does not really scratch
cult
devoted
including
un¬
as
further than
times
national emergency was,
House to make
venting inflation when his
is
proceeding in this way.
dozen
a
the
was
been
have stated, was complex and
controversial but in 1942. grave as
roles
if
half
EPT
had
Administration and the Treasury,
is peculiarly direct and
it is callea surplus
Mr.
same;
holder,
read the
"Quickie" EPT
we
a
is billions lobbed off.
quickie
and
first introduced.
more,
Responsibility
in
created
vaiue
of wages
The cast of characters is always
the
alone
the
built"
drafted
equivocal in certain other directions. One of them has to
do with non-defense
expenditures by the Federal Govern¬
ment.
If there is any intention whatever in the White
down,
**
that
"jerry
parently
Apparently,
represent
national
regulated utilities and growth in¬
The President is -regarded as a
special friend of labor
and of the unions. The Lord knows he has
gone to bat
often
floor
to
Of course, if one wished to comb the
daily press for
even a few
days, the space devoted to this discussion would
when
3
page
Demand for
gress
"Walkout Ties Up Wall Paper Mills—40 Out of 43
Plants in 23 Cities Affected When Union Quits."
be¬
value.'1
and
our
"Squibb Gives Living Cost Bonus."
near
from
Marxist Influence Undeilies
and
York
est
excess
er's
Upholstered
New
conflict
the
capital and labor.
Since
the total of profit, rent and inter¬
and
part we suspect that the great rank and file
of
essence
of New
Continued
Jersey
I. O., signed a new
contract yesterday.
The agreement grants a 2% em¬
ployer financed pension fund, 15 cents an hour wage in¬
crease
for 2,500 employees and 25 cents an hour for
be nowhere
substantial part of the
up a very
able to the control of inflation.
Local 76, United Furniture Workers, C.
mechanics.
heard emanated in large
unions themselves
who,
now
however, in the face of
public policies, and grasping unions. What the
President really needs to do is to
provide a climate favor¬
Plant Is Affected by Labor Dispute."
Furniture
items
consumer
adverse
Began in July."
"Atomic Bomb Parts Stalled—Production of
"Walkout
our
of
sorts
of consumers, and most
businessmen, are really ready to
do what they can to resist and to defeat
inflationary ten¬
dencies.
They cannot succeed,
at Harvester Seen."
"425 Strikes
complaint is
families, make
population.
urban
Immediately.'"
"Pickets
which
with their
by 116 G. E. Plants—C. I. O- Union
Tie-up—Westinghouse
morbid demand for all
part from the members of the
following verbatim:
"Shutdown Faced
Sets
printed,
was
Thursday, September 7, 1950
.
cost of
living appreciably within the past month or two.
Supplied the excuse that the unions needed for de¬
manding—and getting—higher wages, despite the tact
As We See It
.
.
the
social
If, however,
"Liberal."
lily
virtue
promi-.
himself
vestments of
a
cloaking
white
would
do
likewise,
Volume 172
Number 4940
.
.
.
The Commercial and Financial Chronicle
(919)
27
■.
he would command respectful at-
tention.
•
The
"liberal"
Continued
profits has been precisely
like that of the Marxists save only
:
in
degree
natural
eral"
of
intensity.
since
the
of
This
American
movement
direction
all
in
the
greater,
not
The State oi Trade and
is
the
the
"Iron
aie
lesser,
The
instead
American
fore
.
of
sense
is
"liberal"
is
.
colossal
-
time.
:
semantic
If you
larceny
.
"reactionary '
stooge,"
yet
of
pages
„
or
being
18th
philosophers
bun ..ant
a
testimony
of
Mill,
19th
and
Just
.
puppets and satellites to assist in
the
as
achieving
Kremlin
various
has
objectives
able
benefit
to
services
Irom
unwittingly
for
them
disintegration
and
has
of
the
recently
about
business
:
his
that
system
•'
also
to
the
the
industrial macnine tick end what
He
must
become
debate
to
economic
of
living.
articulate
the
*
these
lines
process
tions
•
and
crusade.
whether
tion
their
efforts
will
There must be a
complete reorientation of the na¬
tional attitude toward
the
approach
profits, and
be not only
must
1
sophical
well.
as
demand for
shows
philo¬
The
case
of the
Excess Prodi's Tax
an
that
end
tc
and influence in America has
tinued
to
'"k'n"
neither
since
colors
actuates,
t
gain
or
consider
It
perverts
the
themselves
who
who
do
with simplified economics
always swayed
the int^Lctuals and the lat¬
including
many
educators,
by
scientists,
artistsj
mT
enormous
Whether
not
or
quickie EPT
or
have
a
not or whether
an
we
becomes effective
July 1,
lash or CWober 1, or January 1,
1951, is perhaps not so very im¬
portant.
What we feel is im¬
perative
classify
recognize,
'
o
•
soph rat
fecting
of
.
,
on
Americans
to
label
the
cxocs-currents
af¬
or
at
we
desire.
J. Barth to Admit
•Tclm
F.
Oarv°y, member of the
York
New
Stock
admitted
be
Barth
to
& Co.. members of the New
Sept.
on
.his
make
14.
He
headquarters
at
will
the
firm's New York office at 14 .Wall
Street.
from
Co-,
U
i
Mr.
Garvey
is
<i
)<j!<
equivalent to 1,890,100 tons of
rate is
the
for
entire
year ago.
June
30
industry,
compared
to
mated
distributed
by
Corn prices
the
Institute.
kilowatt
Electric
output
latest
the
for
week
broke
through
previous high levels to attain an all-time high peak.
all
It
113,883.000 kwh. higher than the figure reported for
was
the
previous week, 915.473,000 kwh., or 16.5% above the total output
for the week ended Sept. 3, 1949, and 989,847,000 kwh. in excess
of the output
Business
months
the
1950,
according to the Association of American
decrease of 14,281 cars, or 1.7% below the pre¬
a
above
54,922
total represented an increase of 89,533 cars, or
corresponding week in 1949, but a decrease of
cars,
the
6.2% under the comparable period of 1948.
or
Output Up^Due to Unbroken Production at
Auto
Chrysler
tp^"Ward's
Automotive Reports" the past week,
vehicle production in the United States and Canada of
units, compared with the previous week's total of 179,042
According
motor
188 264
following the wage pact an¬
last week, maintained unbroken operations for the first
a
monthi^ Pressure strikes at Ford factories had slight
Ward's
nounced
time
in
effec's
ated at
output,dpie
on
plants,
agency
and
tricks
was
made up of 151,407
built in the United States and a total of
7,147 cars and 2,67? trucks built in Canada.
Bus
Commercial
a
ness
d
Failures Drop
industrial
the pre-wa
recoided
In
North
in the
all
but
Central,
-
c
thrj
an
A decline from 1
were
reported
in
while the Mounta;
Food Price
A
to
a
level, failures were down 38%
responding week of 1939.
to
143
in
the
from the 229
steady dealer
and
remained
in
limited
three
covered
manufacturer
to
four
demand,
developed a somewhat firmer tone at the close.
coffee continued in good volume and spot prices
'
Offerings
well
were
absorbed,
aided
by
steady
milt
price-fixing.
for
outlook
a
distant futures
more
was
prompted by the
situation as the present
tightening in the supply
advances.
season
Other bullish
influences included the favorable
consumption, continued good export demand,
and the expectation of a further rise in the mid-August parity
price.
Ginnings from the 1950 cotton crop prior to Aug. 16, as
by* the Bureau of the Census,
reported
totaled
447,000
bales,
a
drop of 19% from the 555,000 bales ginned to the same date last
Demand for practically all kinds of gray cloth continued
firm
at
prices.
Trade Volume Rises
regions, the New England States, the West
Mountain, failures declined during the week.
in six of the n:ne
9 occurred
Middle
area
Atlantic
and
Central
States
remained unchanged from a year ago.
Indjfex Soars Sharply to New Two-Year High
in
its latest
sharp rise boosted
last
week's
wholesale
food
price
index
two-year high of $6.69, according to Dun & Bradstreet,
The
Aug. 29i figure was
13 cents,
or
2% above the $6.56 of
advent of fall
the
of trade.
summary
Shoppers bought
a
larger number of coats and suits last week
than in the previous week and the comparable week
Promotions
aided
in
the
sales
of
such
a
year ago.
articles
as
velvet
cashmere sweaters, misses' and women's
fur-trimmed coats and wool jersey sportswear.
Fall and winter
worsted men's suits were also featured in widespread promotions.
angora
Consumer
and
buying
food
of
almost
was
unchanged
the
week, with dollar volume slightly under the high level of
a
past
P
year
While unit sales were steady in many items of both fresh
produce, increased price levels of varying magnitudes
brought about rising dollar sales in these items; among them were
legumes, red meats, dairy products and poultry products.
ago.
and canned
Consumer
the week and
interest
was
In
house-furnishings
slightly above the level of
Total retail dollar volume in the
of last week
was
New
varied
from
moderately
rose
a
year
period ended
estimated to be from 5%
Regional estimates
percentages:
last
on
in
ago.
Wednesday
^o 9%
above a year ago.
year's level
by these
+8; East and
Southwest +6 to +10.
England, South, and Pacific Coast +4 to
Northwest +5 to +9; and Midwest and
There
was no
perceptible change
ordering last week, though
in the
a
overall volume of
seasonal amount of fall
to be sought by buyers. Country-wide order
moderately above the level for the similar week a
year ago. The number of buyers attending various markets dipped
slightly from that of the previous week.
goods
continued
volume
the
was
Department store sales on a country-wide basis, as taken from
Board's index for the week ended Aug. 26,
Federal Reserve
1950, rose 16% from the like period of last year.
An increase of
12% was recorded for the previous week from that of a year ago.
For
the four weeks
to
ended Aug. 26,* 195Q,. sftles showed a
from the corresponding period
20%
date registered
an
a
year
rise of
agd ancMor^the year
advance of 4%.
Activity marked the course of retail trade in New York
week, but the increase percentage-wise over a year ago was
last
less
than in recent weeks.
According to the Federal Reserve Board's index,
store
sales in New York
department
City for the weekly .period to Aug. 26,
1950, advanced 9% from the like period of last'year..
In £he pre¬
registered from4h'e similar week
four weeks ended Aug: 26, 1950, an increase of
ceding week a rise of 7% was
of
new
weather and
buying over many parts of the country, consumer spending rose
moderately in the period ended on Wednesday of last week. The
dollar volume of retail sales continued to be moderately above the
level for the similar period in 1949, Dun & Bradstreet, Inc., reports
regions, increases
East
Moderately the Past Week
With the continuance of cool
1
e
the
well
Activity in spot markets decreased quite sharply.
Total reported sales in the ten markets the past week were
189,200 bales, comparing with 337,100 bales the preceding week
and 106,100 bales in the corresponding week a year ago.
Sharply
declined
failures
eek ended Aug. 31 from 176 in the preceding
holiday-shortenpd
week, Dun & Bra street, Inc., reports. Casualties fell below the
comparable 1949 1 vel of 174, but remained above the 94 which
ilar week of 1948.
Continuing considerably
occuired in the si'
below
in
wholesale
output tor the current week
27,038
market
be
to
Domestic i cotton prices moved in a
relatively narrow range
last week with the general trend continuing moderately upward.
reported, while General Motors oper¬
near-peak-^ates.
Total
cars
Chrysler
said
flour
said
remained firm.
cars,
week's
The
12%
domestic
users
Under
market
cocoa
Trading
with
crop
the
ahead.
dresses,
Carloadings Slightly Under Previous Week
838,744
in
ended
season
compared
crop
volume, with most
reported for the corresponding period two years ago.
Loadings of revenue freight for the week ended Aug. 26,
totaled
the
relatively firm, with buying stimulated by
and fear of killing frosts. Prospects for
continued favorable both in the United
were
spring wheat
power
at
products for
302,000,000 bushels,
as
506,000,000 bushels in the preceding crop year.
the electric
industry for the week ended Sept. 2, was esti¬
6,450,386,000 kwh., according to the Edison Electric
and
wheat
and
totaled
season.
amouri't of electrical energy
The
light
Inc.
. ■' i
a
Exports of wheat
active
retiring
partnership in La BTanche &
•
like week
Establishes Ail-Time High Record
Electric Output
Exchange, will
partnership in J.
York and San Francisco Stock Ex¬
changes.
for
average
outlook for domestic
84.2% and 1,552,200 tons.
lives and the conduct
siness affairs in order to
adequately with them in the
fashion
Labor Day and a
based on the smaller capacity then prevailing, it stood
our
b
our
deal
for
is
-
was
(revised) units and 146,039 units a year ago.
of influencing opinion.
power
FPT
sociologists,
have
that Monday
a
was
year ago.
ceding week.
It
ter,
week
week ago. A month ago, based on new capacity,
99.9% and production amounted to 1,926,800 tons;
1,872,800 tons
rate
castings
and
Railroads,
the
are
ingots
are
Leftists.
for the masses
sales
the week aggregated
120,152,000 bushels, or
of about 20,000,000 bushels. The latter compared
with 28,000,000 bushels the previous week and
28,500,000 in the
daily
a
Strength in the
week's operating
This
si eel
not
will not be sufficient to re^ch
masses
this
con¬
1942.
illkms
d,
Marxists and
announced
companies having 94 % of the steel¬
in slightly higher production.
resulting
infiltration
Marxist
Steel Institute
and
national holiday, steel output shutdowns were cut to a minimum,
a
fully succeed.
t
Iron
acute
is
along many
fronts.
organizations, founda¬
groups are joining the
Nevertheless, we ques¬
of
Scores
the
relieve
Notwi hstanding the fact
proceeding
'
of export demand.
Total
rise of 0.9 point.
or a
ago,
the
along
help
beginning Sept. 4, 1950, compared to 97.1% a week
week
the
for
a
Much is being
great educational
were
two months.
was
very slow, largely reflect¬
ing uncertainty surrounding the Far Eastern situation and slow¬
ness
making capacity for (he entire industry will be 98% of capacity
the drop of a hat.
a
to
American
The
and
controversial
and
accomplished
order
tha* the operating rate of steel
political questions
of the day with his adversaries at
and
they
as
planis vital to the aircraft program.
makes
dard
much nickel
month
This will call for real belt-tightening
few months ago.
a
as
Producers this
as
'■
what
cuts in allotments.
in further
to
the
learn
must
and
large
at
learn
-
are
shortage of nickel, the
Federal government will spend $5 million to reactivate the idle
nickel facilities at Nicarox Cuba, the "Iron Age" learned.
An
additional $9 million will be spent to reopen five magnesium
to
<?ia
-
program
Chicago Board of Trade last
over
Trade and speculative interest
with
plate.
armor
top of this, diversion of nickel to the strategic stockpile
In
great
said and
refrigerators. * He
explain to his
able
employees
public
workers to produce
more
within three months.
A
fact
American
and
be
own
hiring
the
on
week fell to the lowest level in
up
resulted
getting
ably and effectually as he has sold
his motor cars, his ciga¬
must
and
expect to receive only about half
his gum,
rettes
Trading in grain futures
States and Canada.
On
diffi¬
a
irregular, with
price changes small.
opennearth alloys jammed; producers could take orders for first
has
pound of 31
per
Movements in principal grain markets continued
net
the
American
been
the
executive
the
"sell"
1939,
the lateness of the
possible
cult task ahead of them.
•
In
and
by
productive economy have
•
notes.
price
strengthening in wholesale commodity markets last
lifted the Dun & Bradstreet
daily wholesale commodity
price index to the highest level since early July 1948. The index
closed at 286.30 on Aug.
29, as compared with 281.34 a week
earlier, and with 239.26 on the same date a year ago.
quarter '51 if they wanted to, this trade paper points out.
enfeeblement
written
authority
of
cost-of-living index.
further
in an increased demand for stainless steels. Demand
for alloy steel is stronger than at any time since the last war,
with fourth quarter order books on both electric furnace and
Businessmen, investors and
anyone
else seeking to prevent
deal
trade
Requirements for the expanded military aircraft
"liberals."
the
war,
showing
multitude
a
slack
no
a
war
facilities
so
performed freely
is the fact that there is
A
up by defense orders, as there was before
fhe half-billion dollar increase in the tank program is already
have the, American Marxists been
of
this
concern
total
sum
It is not
use.
the
was
week
being felt, with some steel companies already starting to rearrange
its
used
pause for
betaken
efforts become stalled by the controls
adds.
constitute
against him.
:
making every
are
the
represents
general
It
Commodity Price Index Reaches Highest Level Since
Early July 1948
orders
the last year
orders really boosted steelmaking, the steel industry
operated at anf,average of 64.5% of rated capacity. But when the
fighting broke out in Korea steelmaking operations were at 100%
of capacity, despite the fact that the steel industry had boosted its
capacity by 20%. And 99% of the steel being shipped was for
peacetime use."* Although consumers have been receiving record
shipments of steel, their own record-breaking manufacturing oper¬
ations have chewed it up as fast it was received, the "Iron Age"
Street
Locke,
other
real
can
last
before
in-
thousands
Milton,
Century
a
of
the
this
will
"Wall
a
the
Spencer and
.
he
The
which
all
indict him with
philosophical crime
stantly
accuse
you
.
Defense
moyip to strengthen their inventories of steel and other
material&before their
they know ar&oming.
by.
of
metalworking weekly.
scarce
capturing the word "liberal" has
perhaps
perpetrated
the
most
.
Age," national
Purchasing Agents cognizant of the situation
there-
ard
index
foods in
increasing^and hitting critical spots in the steel market.
conceivable
that
collectivist.
pseudo-liberal,
a
Industry
"lib¬
in
trends
classic
but
word,
.
Aug. 22 and was well above the $5.78 of a year ago
highest since the $6.70 reported on Sept. 28, 1948.
5
page
The
state control and is not liberal at
•
from
attitude.
toward
-
1949.
For the
15% was noted and for the .year to
from the like
period of last year.
date volume showed.no
chbnge
*
The Commercial and Financial Chronicle
28
Continued from
first page
Price Behavior of Slock
Groups Since 1929
within products group showed the smalla
grouping are more alike than est percentage decline. It wa5*
different.
therefore assigned rank order t>2.
(3) The impact of such external For the rise from July, 1932 to
events
as
war,
changes in the March, 1937 rank orders were aslevel and structure of taxes and signed
on the same basis. The
new
developments
in
science, metal fabricating group showed
Such events and developments do the greatest percentage rise and
not have the same effect on all was therefore given rank order 1.
stock groups. Ihe development of The food chain group showed the
television, of course, booms the smallest percentage rise and was
the capital structures
ings
television stocks but is
bearish influence on the movie
and
radio
a
..
Thursday, September 7, 1950
.
(920)
The
group.
bears
profits
excess
tax
lightly on railroads
heavily on the chemicals.
very
but veiy
Standard and Poor
price indexes were set up
The
(1)
group
Qontpmhor
-fV/xevt
e
turni ngpoints were
Coefficients
between
each
order
rank
were
Thenselected!
1Q3R
Sept., 1929
Lows
July, 1932
Mar.,
1937
Mar., 1938
May.
1946
May, 1947
Highs
It will be noted that 1942 was not
as
point
low
a
the
even
very
were
averages
in that year than
The long period, 1938taken as a bull market
slightly lower
from
1929
September,
July,
to
Results
1932, the metal fabricating and
leverage investment companies
The coefficients or rank order
correlation between the magnitude
of the rise and fall—or fall and
1 and 2. rise for the various cycles is pre-
showed the greatest percentage decline. They were theregroups
fore
On
rank orders
given
other
the
the
hand
tobacco
sented below:
Coefficient of Rank
Order Correlation
1929-32 fall compared with 1932-37
rise
1932-37 rise compared with 1937-38 fall
1937-38 fall compared with 1938-46 rise___
1938-4-3 rise compared with 1946-47 fall
-f
.544
-j-
.434
-f
.665
-j-
.613
1946-47 fall compared
-p
065
It
not
efficients
tion.
with 1947-50 rise
How
ficient
rank
or
high
in
be
conclusion
interpret
to
easy
that
correla-
order
must
order
to
co-
the coefjustify a
high degree of
relationship exists. Much depends,
of course, on
a
Similarly such changes
a
stock
to
group
ently advance
rather
even
in
on
But
in the sample or more or less con-
deviations
sistent
the
In general it
be said that a coefficient of
correlation if .50
ures
It
higher
or
reasonable to conclude,
seems
therefore, that from
there
was
tionship
the
a
upward
of
other
way
1929
1946
to
high degree of rela-
between
phase
the
the
movement
downward
and
cycle.
This
is
an-
of
saying that from
1946, the stock groups that
1929 to
went
meas-
high and probably sigdegree of relationship.
a
nifica it
in
of
of * most
items in the sample.
may
the
up
most,
were
quite
likely to fall the most, in the subsequent decline and vice versa.
This
Why was there such an erratic
behavior
of
is
perhaps
surprising;
not
after all, the faetdfsThat make for
various
the
groups
since
1946?
Why
the
stock
in
downturn
did
the
not
pothesis.
In
stock
it is entirely
place
thing
is
that
the
coef-
ficients did not approach -f-1.00.
But;this is
varioua
expected
relation
a
stock
dyhamic world and
of
be
to remain in the same
feach /other,^Eeoftomic
to
behavior
The
movement.
banks
York
coal
of
pictures and
New
illustrations
are
legislative
attitude toward
But
cannot
a
group
^
v/'4
"liy the Low Correlation Between
on
secular
to
in
between
too
the price and
on
result
may
in
incentive system,
reduced
pro¬
war
duction.
1946
indicate
was sound basis for the belief that
was
a
strang^JsJnd of bull market. The
SfcJck groups that went up mosi
wh^ tllis
ever> ^
w?s so. .It
to
will help, how-
cycle
behavior
showed
a
in the
highly
^'-phases
of
the
cycle.
The
disorganization
group
These
Volatility
Tobacco Products
Fabricating
Metal
shown below:
are
Least
Greatest Volatility
Confectioners
Telephone and Telegraph
been
Miscellaneous Foods
Paper
Shoes
period,
such secular movements might be
Auto Tires and Rubber
Utility Operating Co's.
Cement
reasonable explanation. But the
fact is that there
was
a
rather
Distillers
Soap and Vegetable
Baking and Milling
entire
the
over
21
year
a
until
correlation
high
from
1946
The
1946.
1950
to
investors
hypothesis
during the
lated
and
here
offered
period
war
managed
the
to
the
excess
generally
comes,
the
investors
usual
basis
were
in¬
deprived of
for
continuous
corporate
price
adjustments.
Rela¬
prices in 1946 then were ab¬
normal because of this, long sus¬
group
tive
continuous
the usual process of
informed investor ap¬
praisal. Therefore the 1946 decline
.
$1.00 Chains
Co's.
Leverage Investment
New York Banks
Radio Broadcasting
Containers
Glass
Oil
Worst Performance
Performance
Distillers
Printing and Publishing
Cotton
Rayon and Silk
Motion Pictures
Shipbuilding
Utility Holding Co's.
Paper
Coal
Metal Fabricating
Confectioners
Equipment
Railroad
Co's.
Finance
■"
Utility Operating Co's.
Textiles
:
Corp.
Formed in Chicago
of
the
cific
111.—Announcement
formation
A. Fuller
the
of
The
of
new
not
William
wholesaling
in¬
is
one
west.
Neither
dle
pany
nor
William
A.
was
made
Fuller,
•
for
the
new
Vice-President.
"In
by
President.
Richard S. Harwell, in
sales
today
charge of
corporation, is
'
b-i
i,
recognition of the fact that
mutual fund, shares are becoming
an
increasingly larger part of the
dealers' volume," said
over-the-
leading
the
the
which
Co:,
&
in the mid¬
counter trading houses
vestment trust shares in the Mid¬
West,
operations of
the
Fuller
the
of
Corporation
Fuller
affect
A.
in
securities.",
these
wholesaling
William
Corporation for the spe¬
purpose
' t'
i
specialize
will
which
pany
will
CHICAGO,
.
■
have decided to form a new com¬
Wm, A. Fuller
and
profits tax served
level
Best
regu¬
economy
5c to
Soft Drinks
that
the tax structure made it difficult
Metal Containers
Rayon and Silk
Leverage Investment Co's.
suggests
were
in
two pension .of
fela'tivefy iiffld in 1946
the
Air Transport
general lack of such correlation
and
as
caa identify the stock
wh°se
;194"-50
be
into the period
order
were
to the 1946 decline,
We can only speculate
essential
and invest¬
consumers
Machinery
a
rise
that
the
of
free
been
never
dictation of
the
and
misjudging
there was little or no relationship relative values in 1946 or perhaps
between rank order in the 1946-47 they were misjudging them in
decline and the rank order in the 1950. If we have some confidence
rise of 1947-50. This fact is not generally in the collective judg¬
one that requires involved math- ment of investors at least with
ematics as proof. During the rise reference to relative values of
from the summer of 1949 to June, stock groups—in short, if we are
1950 it was a favorite topic of true liberals—how can we explain
boardroom conversation. Who has the unusual group movements of
not heard the complaint, "the 1946-50?
market may be up, but my stocks
Under
ordinary
circumstances
are down.": All that is demon- stock prices more or less currently
strated by these data is that there reflect the changing world. The
^movement
price-
Woolens
If there had
rise to 1950.
of
lack
that
1949-50
low
very
of the airframe
during the period
order
The
the
the
ratios
the
lack of correlation in the fall and
data
could
movements
explain the
the, 1946-47 Decline and the
1947-50 Rise
above
Witness
earnings
judicial then,
and
serve
decline
periods of general market strength, that fell
for
Even
needs.
and
wants
much management, too
much dictation, too little reliance
here,
those companies.
such
of
gr0ups will be, of course, (1) those
.
civilian
expected to carry over then is that whenever there is an
of peacetime com¬ extended period of planning fol¬
petition. For this prolonged period lowed by something at least re¬
the down side. Chemical and paper
there was lacking the possibility sembling a free market there is
stocks are perhaps illustrations on
ofcontinuously
checking judg¬ likely to be reshuffling of the re¬
the upside.. Stock prices reflect*
ment with reality. Investors were lative
prices
of
various
stock
the changing world and given the
in effect "flying blind." They ap¬ groups. Such a disorganization, as
right circumstances a stock group
pear, for example, to have over¬ in 1946, represents an adjustment
can continue to rise or fall with¬
estimated the peacetime earning to the real wants and desires of
out reference to its previous be¬
potentials of the airlines and un¬ consumers.
havior or the behavior of other
derestimated
earnings potentials
It may be of interest to examine
stock groups.
of the motor manufacturers. Such
the groups that have shown the
Such movements do not neces¬
cumulative
investor
errors
are
best and the worst absolute per¬
sarily mean that previous price
possible because of the impossi¬ formance in the period since 1929
levels were wrong. It means mere¬
bility of adjustment to changing as well as those that have shown
ly that the world has changed. The
realities.
generally the greatest and the least
long decline
of utility
holding
volatility over the same period.
According to this
companies after 1929 reflected the
motion
stocks,
only showing here that from
1929 to 1946 it was generally true
are
n^2ative* relationship oVer the two
force
production is not directed toward
ors.
The
important question is
manufacturersfor a stock group to of
whether production is to be guided
high wartime earnings. It was
persistently
rise or fall difficult or
impossible, however, by the free choices of consumers
without very much regard to in¬
investors or by a group of
to estimate the proportion of earn¬ and
tervening cycles. In other words
ings that were really war derived government "planners."
there is such a thing as secular
The essence of our hypothesis
and the amount of earnings that
correlation
to
may
the
a
Essentially the case against the
make some calculations peacetime managed economy is
that investors are prevented from
which
would
serve
to
estimate
earning power based on an as¬ carrying out their essential role of
sumption of elimination of the ex¬ directing society's funds into in¬
dustries whose products are most
cess profits tax.
But due to differ¬
wanted by consumers. The inevit¬
ences between taxable and report¬
able
consequence
is misdirected
ed earnings, accelerated deprecia¬
possible
of
persistently decline even in
changes
rathei
cannot
groups
basis
adequate
no
of
wants
rather
not necessarily those that or impossible for investors to ap¬
volatility — marginality, capital declined most after 1946. Nor was praise relatively the prospects of
structure, etc.—should be expected it true that the laggards on the various stock groups. In 1946 they
to operate both on the upside and rise were necessarilyMhe groups were
confronted
with
postwar
on the downside.
Perhaps the sur- that showed the greatest resistance reality.
Since war time controls
prising
peacetime
situation in which invest¬
a
had
er.
11
first
the
we
whether the failure to achieve
perfect correlation is due to the
extreme deviation of a few items
are
than
estimate
to be sure,
Why the Erratic Performance
Since 1946
persist-
periods
general market weakness.
that stock groups which fell most
in a decline were likely to rise
most in a subsequent rally and
Much depends, too, vice versa,
a
preceding
"normal
years
represent a
hypotheses,
may cause
the size of the sampie. Here it would appear that 62
groups constitute an entirely adequate sample.
These
needs.
to
judging future prospects of vari¬
ous industrial groups.
They could,
changed
is
civilian
easier
groups that went down most after
production.
Perhaps we should
especially those whose pattern of September 1946 rise the most in tion, etc., such calculations were
talk less about free enterprise and
behavior in one phase of the cycle the subsequent bull market? Here likely to be wide of the mark.
more about the importance of free
Moreover they could make broad
was markedly different than in all we can do is to speculate and
markets.
After all enterprise has
the other phase. The data were perhaps offer a very tentative hy¬ guesses as to ex-war earning pow¬
also examined in order to discover
those groups that displayed at
in 1938.
least a relative secular downward
1946, was
or upward movement. In other
with a 1942 interruption.
words the data were examined
(2) For each of these down- In order to identify the groups
ward or upward movements the 62 that over the entire 21-year pegroups were arranged in rank order riod either distinctly outperformed
on the basis of volatility. For exam- the
market or distinctly lagged
pie, in the downward movement behind the market.
though
four
not
competitive market." The war and
the excess profit tax operated to
ors
Fire Insurance
I949"47 compared with 1947-50
(4) The data were then examin order to determine the
did
create
Soap and Vegetable Oil
4fi
stock groups whose price behavior
in the various cycles and over the
entire period was distinctive and
June, 1950
selected
Chemicals
Office and Business Equipment
193o-4b
with
the
But
1946
Petroleum
ined
lows:
to
Automobiles
J929-32 compared with 1932-37
1937-38 compared
Rise
Vigorous
June 1950
group
with
1946-47 but
Small Declines in
mum
much
high level
ships are kept in reasonable ad¬ economy. If a managed economy
justment by the "bloodless verdict is ever justifiable, it is in time of
war.
Here everyone is aware that
of the market place."
Relatively
Showing
Groups
Relatively
of
may be fooled but not for long.
True, all prices may go above or
below value but group relation¬
Woolens
then computed
movements for
major swing and its subse-
correlation
Picture
Motion
given rank order 62.
points were as fol-
These turning
those
cyclic:.i 1938'46 compared with 1946-47
Certain
l970
1929 to June
rose
(2)
<?uent correction as follows:
Study
of the
Method
to 1950, and, was not only a decline in the gen¬ following 1946 represented a be¬
lated adjustment of the cumula¬
that declined by large eral level of prices, but also a re¬
of
group
prices
to tive uncorrected errors of judg¬
percentages in 1946 and showed adjustment
what was finally determined to be ment of the war period.
If the
very little rallying power in the
hypothesis is sound, it would seem
rise to 1950.
Six groups in each reality.
to follow that to expect the lag¬
classification are shown below:
In short the role of the investorspeculator
is
that
of
bringing gard groups to "catch up" with the
market would be absurd.
Groups that Fell by Large Per¬
prices in line with values, in the
centages in 1946-47 but Failed
language of Mr. Justice Holmes
The Investor in a Managed
to Show Important Recovery
"adjustment to the probable." Un¬
Economy
to June 1950
der
reasonably competitive cir¬
Air Transport
cumstances this process is contin¬
During wartime it is not diffi¬
uous
and
Apparel
changing future pros¬ cult to agree on the general direc¬
Drugs and Cosmetics
pects are quickly reflected in price tion of production. It must be es¬
Floor Covering
changes. In such a normal com¬ sentially directed toward the pro¬
Printing and Publishing
petitive
circumstance,
investors duction of war goods and mini¬
vigorously
but
present
new
com¬
corporation,
Fuller indicated,
will do business
public,
but are limited
with
the
to wholesale
operations with deal¬
ers. pnly.^,,
<
,,,
.•
Ftiller is senior partner of
liam, A.
.
• .T
Wil¬
Fuller '& Co., and; has
been associated with the
Fuller, "we business.since 1922.
f{r
securities
'
.•/
•»
Volume 172
Continued
Number 4940
•
jrom
.
.
.
The Commercial and Financial Chronicle
earnings* since bond-owners have
always been considered the own¬
17
page
of over half the nation's prop¬
ers
Labors Security Package
And the Collapsing Dollar
walk
to
some
they
could
lights
in
darkness
walk
where
with, the
better
on.
When you can pick up the morn¬
ing
paper
and find out how much
your
dollar bought yesterday
gold
in
tree
a
which
market,
way
you
can
you
see
going,
are
and
government can be required
watch her step.
Government
your
to
the
let
cannot
purchasing power
of
its
money,
or
substitute for
money, decline month after month
for years, as our government has
been
doing.
Workers will
not
stand
for
it, and pensioners can¬
is a $100 per month
What
not.
pension if it takes
dime's
a
but
99%,
dollar to buy
goods?
The
a
of
wortn
lost
franc
its
not
9G%
oi
and
we
are
value,
traveling
down the same road.
Mr.
Heimann
$6,400
family.
per
debt is
our
That is
large
a
less
much
own
least
would
handicap to
aggressive nation;
an
it may be helpful.
is
While the debt
being paid off, the nation is at
least assured of
few, but
a
6 million farm operators and
million employees, who are in
the venture, willy-nilly, are in¬
for expansion is a
very
serious handicap; beat our
creditors out of their savings and
we
will be under that handicap
until long after we
our
have changed
ways.
classes.
Nevertheless,
major
in
one
other
both classes
line,
a
50-50
basis,
are
to affect
enough
get
anything like
not important
on
From
evident
all chasing
nearly
the
or
and not in both. Those who do
We
have
separable. If
load, they doubt¬
than half, at
more
the
for
col¬
of the times.
a
To be sure, we have
problems but so does everyone
who accomplishes anything.
We
"well-developed"
have greater
than
sources
world
our
the
all
rest
re¬
the
of
Furthermore,
put together.
operating efficiency has been
that whereas a cen¬
required 30% of our
people to live on the farms, and
increased,
so
tury ago it
work
12
hours
15
to
per
day
to
keep the wolf from the door, now
it is such that 20% of the popula¬
tion living on the farms can raise
than all others
more
eat.
can
ture.
When
Mr.
those
who
the
above
that
neither
attention
the
to
from
sentences
following
Mr.
two
Heimann's
analysis:
"The
our
the
in
tne
value of the dollar
should have been
purchasing
over
Heimann
years
those who
and
ited
from.
up
Now
that
to all of
us
do
we
to watch
Heimann's
Mr.
way
of
collapsing dol¬
people of their
life savings. Such being the case,
let us try to find out who is being
robbed; how it is done; where the
telling
lar is
loot
us
is
our
our
going; and what the ulti¬
impact
upon
our
nation
mate
will
that
robbing
be.;
Our
Let
us
from
of
the
Bond
national
economy
is
sup¬
for all prac¬
tical purposes, by just two types
of investors, which we will call
'
capital,
Class
Investors
are
primarily
Having currency
deposits, they buy bonds, mort¬
lenders.
money
or
I
Buyer
that
look
good to them. If
fc> such direct advances are added,
kind
quires
to Class II
accrues
that
after
taking
Investors; also
of current
care
operations, such Class II Investors
two
cipal
obligations that
If
be
there
taining
the
inclusive
of $250
billion
U. S. Government bonds, is doubt¬
ible wealth.
of the nation's tang¬
It
is
thus
seen
that
borrowed
on
What is left after deduct¬
contribution to Class II Investors,
available for distribution.
But the
collapsing dollar changes this pic¬
this extent: it provides fa¬
cilities whereby the Class II In¬
vestor can pay his debts to Class
ture to
with
dollars
debts
of
less
of
those
than
power
purchasing
in
While the
when
use
long standing
tracted.
were
dollar
con¬
has
say
half its
original purchasing power,
only beats Class I Investors out
of half of what is
the
of the
forces
coming to them,
that
purchasing
half
knocked
power out of
the
fully capable of knock ¬
ing out the other half. Thus the
are
collapsing dollar lays the ground¬
work
for the elimination of Class
funds to build
residence, but he
a
persuaded
was
ernment
held
the
until
they
purchase
to
instead.
bonds
bonds
since
gov¬
has
He
that
time
maturing. He
will get back in payment on the
principal
the exact number of
dollars
a
he
it
bonds;
was
in,
put
costs
to
in
their
just about Vsth
now
when
be
construction
advanced
but
for constructing
power
residence is
what
now
are
that
bought the
costs
just
about
this
line.
having
500%
As
a
of
pro¬
spective house-owner in the above
transaction, this investor has lost
80%
his
of
purchasing
power.
When he bought the bonds, he had
has
money
build—now
to
he
J/5th enough.
erally,
average
mum
although
in this
the
or
little harder to
a
that
Note
the
looks
Congress
and assistance
I
came
through
save
them both.''
Senator says
to
the
advice
for
us
concerning what
done.
want
None
of
us
we
think
of life's problems.
many
We accept conclusions from those
who have traveled the road, before
cerning
That
is especially true con¬
financial and monetary
matters
which
us.
grasped by
if
are
not
readily
It follows that
many.
have followed the
you
reason¬
"The
our
lies;
under the
collapsing dollar, which
persistently loots at all levels and
no
but
if
wreck
more
loss
given
but
time,
persons,
sufficient
industry generally.
we
have
suggested
What
labor
leaders
those
who
have
employers'
of
the
fidence in
our
with
wage
dollar
until
course
currency
to
the
agree¬
collapsing
its natural
runs
for
less
no
do
to
side
If
ments.
applies
con¬
is shaken,
the sponsor for either side of such
agreements
being
hardly
escape
double-cross¬
can
suspected
of
ing.
Mr. Heimann says, regarding
our
economy:
known
tion."
its
of
it is not healthy from
appearance,
any
"Regardless
i
standard
Doubtless
we
of
evalua¬
expect to head off everything that
is at all off
shrinking dol¬
of many
years'
the
standard, but for prac¬
by, can
suspicion concerning
the integrity of those who sponsor
but
arouse
R.
and
the
nation
consider
is
likely
that
we
be.
to
have
Now,
as
freedom
to the ultimate outcome:
promptly
an
to
sell
buy and
market—no
open
would
granted the
savages
enjoy —
that
freedom
from
result
this
managing
experiment
date, since,
as
say,
"Every
gold
minutes.
paradise, he would put in 43 hours
his wife a simple cotton
"These
the
are
raw
facts (those cited above and
the
the two bil¬
earth, then
danger that Communist lies
in
to
Henry Ford used to
there
be
would
no
deceivers."—Oscar R. Ewing,
Fed^al Security Adnl
ministrator.
W
there
true, but
are
ourselves must not
Ewing has to
say
is, of course,
certain other facts which we
lose to sight. Here are some ef
them:
hundred^ of millions of people on
(1) For
we
has always
been the normal way of
no
conception of and
value
so
highly
as
life
World
free nations of the Western
often at least partly
are
state of affairs.
is
life. They have
little interest in what we
freedom*
so-called
The
(2)
responsible, for this
Hence to the better
informed of
or
to hear
preach the value of liberty to
allowed
to
tion,
will
it
•n
we
go
on
to final
break
comes
The
out of
a
bring out
(3) Much
chance
enormous
may
new currency
lost much
liberty they formerly had,
while such problems were being
out,
if
not
more
them.
involved in the
the economic welfare of the
than freedom is
difference in
the reorga¬
rabble-rouser
various
permanently.
peoples of the world.
true that full
,
If
we
realists,
are
It may veby well Be
would for a
/rr
liberation of some of them
time at least bring
of what
worked
us
extinc¬
economy
our
will have to take
what
is
(»
enslaved peoples it must seem strange
threatened
dollar
this
should term slavery or half-slavery,
globe what
hand,
collapsing
^
people into fighting for their Moscow
would mislead
worth what it costs." On the other
if this
a.
are known and understood by
human beings who inhabit this
they
lion
money-
down
experience in
in the con¬
the slave world.
weapons
flict between the free world and
If
hours and 14
...
others like them) which are
harm
great
line like mindless
They accept the fantastic
dress; in America it would take two
answered
it is my judgment that if our peo¬
were
Moscow
We
the first three of these questions.
ple
are
minutes to buy
six
Much of what Mr.
lapsing dollar is robbing; how it
is done; who is getting the loot;
and what the ultimate impact on
war.
as
Ewing
In the worker's
them.
We started to tell who the col¬
that
us
though this were the new
gospel. ...
"As of May of this year, he (the Russian worker)
put in one hour and 48 minutes to pay for one pound
of granulated sugar. An American worker can earn
that much sugar in four minutes and a few seconds.
Our Soviet worker puts in three hours and five
minutes of labor to pay for one pound of dressed
chicken.
An American worker takes 18 minptes.
Oscar
tices that meet "no known stand¬
ards of evaluation" to get
tells
aggressive
outpourings
of
the Moscow
radio, and of its transmitter at
Lake Success, Mr. Jacob Malik,
hardly
can
is not the or may not capture the country.
like the maxi¬ Most European nations that had to
lar, the average being more like
50%. But even the latter figure
a
of
respecter
will,
free¬
yet
slaves.
are
their
that
that
there are people ip
many parts of the world who
believe these lies. They follow
When calamity
insist
us
You and I know that these
cur¬
others, they
any
He
is
self-defense
main¬
over
of
tells
liar
\r
slavery and that slavery
freedom.
is
cap¬
leaders do all they can to get back
to
honest money and out from
is
Realists, Toe
dom is
and
80%
loss from the
collapsing the dollar is not rob¬ represents
in¬
one, you are
other.
struggle to preserve and extend freedom
planet. Our greatest weapon
battle is not the tank, or the heavy bomber
atom bomb; it is the weapon of truth.
who ought to
any
labor leaders.
the
accruing to this class of in¬
lose
the
dominates the entire
have to¬
we
quality
than
rency
our
nization.
excess
are
de¬
are
ing these, constitutes the nation's
but
"The
re¬
further
concerned
more
paned to such money lenders gen¬
less in
sufferers
go
dependable apd helpful
and
vestors,
these
we
Workers1'should
interest
and
capital.
I
We Musk Be
italists and associates.
Furthermore, what happened to
this bond-buyer is what has hap-
total
for
that
life insurance, annuities, pensions,
and social security obligations,
you
lose
and
are
with along this afternoon in hopes that
together we might work and fight
save.
exert what influence
most
wider angle. It is evident
that the gross intake of the nation
preferred stocks, and, in
enough
general, invest in loans of any
gages,
to
homes
dollars
are
a
1914
Class I and Class II.
22, 1950:
correcting
the
monetary
practices that are
robbing our
review the problem
now
purchasing
with
plied
certain
ward
Fate
protested much more vigorously, I Investors; in fact, for the de¬
only by every citizen but by struction of dollar business gen¬
business, and particularly by those erally, until new currency can be
businesses dealing in future prom¬ supplied after the final collapse.
ises to pay.
This decline consti¬
Perhaps we should make this
tutes. of course, an appropriation clearer with
an
illustration, so
of one's life savings, or an indirect here is one.
During World War I,
confiscatory tax."
a
certain party had accumulated
is
on
American
without White House coopera¬
Such
life
not
That
Chicago,
"The Congress, I am sure,
or
the currency in
paid; a proceed¬
ing which, as has been repeatedly
pointed out, loots the portfolios of
talks
losing
are
step.
The
dollar
continuing decline
in
group
do
can
power of
sideration
coming
know, it is
it
Before concluding, we again call
estate
people
American
"Sound
the passage quoted
of
it.
Feb.
sympathy
with ducted from earnings. These are: strikes, their clients are the ones
who get hit first
and- hardest.
pessimistic view first, taxes; second,
maturing prin¬
no
kind
my
about
in addition
except
which debts
the general pic¬
about
have
those who take
ing
analysis, it is reliable, and honest, I would urge ing of this paper to this point and
you
to give your very lives ii have a definite opinion concern¬
a company's
earnings nor its employees' wages necessary to attain it. If you are ing the answer to the problems
cluded in these Class II Investors.
have accrued altogether from its satisfied to let things and dollars taken up, you should pass it along
Many, if not most, investors operations. A substantial part has drift and slide aimlessly as they to friends you think would help
in solving it.
have funds in both of the above resulted from
shrinking the pur¬ have done for years, there is noth¬
60
ply of capital for healthy expan¬
sion
and
increased
efficiency.
Lack of capital
re¬
nation's
our
substantial sup¬
a
recent
sound
being the case, employers
employees, having both prof¬
by the loot resulting from
savings, he refers to Class I In¬ the collapsing
dollar, can hardly
the debt but in the fact that we
vestors; Class II are more likely to do less than refuse to
keep the
are crawling
out of it in lieu of be enjoying the
loot, for which heat on for higher prices and in¬
getting back of it and paying it they should not be blamed, so
long creased wages.
Reasonable con¬
off.
A debt is not necessarily
a as
they did not know where it was
debt, but it is owing by all our
people to our bond-buying group.
The danger is not in the size of
with
Senator Harry P. Cain,
real
$250 billion
debts to carry
war
to their former
of
into
says
of
conclude
being from the
closing words of his address to a
and now, with
erty,
We
marks by
lapsing dollar. They are our rich tion, is ready and willing to play
neighbors, and the suppliers of its part. But I must, and want to,
principal source of liquid capital our
borrowed
capital—a
vital warn you that the high lord of
—the
savers;
also, that unless necessity for effective operation monetary justice and economic
headed off, this collapsing process as modern
industry is conducted. stability will help only those who
will
make
the
dollar what
the We cannot afford
to sell these help themselves. Your Congress is
continental is, a synonym for what friends and co-workers down the an instrument
through which our
is worthless.
river, but they can be saved only American way can be restored and
Class II Investors provide ven¬
by getting rid of our collapsing preserved or dissipated and de¬
ture
or
risk
capital.
Common dollar and
returning to honest stroyed. Your Congress looks to
stocks are, of course, their prime
America for advice and assistance
money.
investment, although millions of
concerning what you want done.
Part of Your Income Is Loot
unincorporated concerns, inclusive
If you want money which is hard,
bing just
29
(921)
to
economic Hardship, not wealth.
win this battle of truth we
musi(bc;
too.
i
30
The Commercial and Financial Chronicle
(922)
search¬
ing for headlines to beat its
opposition; a politician run¬
ning to a mike to sound off—
all these play a part in any
Tomorrow's
Markets
Walter
pretation of it. How to figure
is
something I don't
these
know the
answer
==By WALTER WHYTE=
off
I
about how it looked as if the
the
sounded
do
know, however,
being
market,
In the
past few days the in¬
have managed to
sneak down for a couple of
dustrials
*
*
*
All this in effect
the
a
that
apparent signs of a
stock market break will prob¬
too
points and in doing so broke
ably be washed away in the
through what chart readers next few
days. Instead of a
point to as a line. According break what we'll see is a dull¬
to past performances such a
ness
occasioned
here
and
break
through immediately
there
by
sudden
but
short
indicates storm warnings and
activity.
Jthe trader who knows how to
*
*
*
either
around
clambers down into the near¬
est storm cellar or
puts out a
oils
gradual revi-
a
These two
talization.
*
*
at least two groups
are
that indicate
couple of short lines.
I think
levels
present
there
the
are
the sugars.
and
I'm not
be specific for the
time being. But if you've got
shown it, though not to any
the time and patience, I'm
marked degree. But whether
sure
you can find stocks in
it was marked or not the fact
the groups I mention.
became
apparent that such
traders
Some
done
have
has going to
market
the
and
both
selling, whether short or long,
hasn't started the slide it was
supposed to.
t.
*
*
■■
This brings us right back to
re-reasoning of the facts be¬
hind the facts; or rather the
a
for the
On
ance.
the
rails
up
from
a
Taken
ster this we've
seen
with
They
those
of
the
presented as
the author only.]
those of
are
Culberlson With
Television Shares
side we've had
one
go
previous selling
area.
together this
spells "down." To further bol¬
trials
not
coincide
non-perform¬
and make a
new
high. On the other side
we've seen the industrials shy
away
time
expressed in this
necessarily at any
views
do
Chronicle.
*
reasons
[The
article
CHICAGO, 111.
has
berlson
with
—
Television
ment
John C. Cul¬
associated
become
Shares
Manage¬
South La Salle
Street.
He was formerly head of
Culbertson, Olsen & Co.
Co.,
135
John
McBride
F.
Co., Inc. has
slip through
a resistance been formed with offices at 135
This combination in the Broadway, New York City to en¬
days would lead to only gage in the securities business.
2one.
^ld
one
Officers
conclusion.
*
*
The
single factor that hasn't
included
been
*
little
this
in
are
John
F.
McBride,
President; B. F. Harburger, VicePresident and Treasurer; and R.
D. McBride, Secretary.
Mr. Mc¬
Bride
has
business
Donneybrook
is the
Korean
It hasn't been included
War.
simply c&ftfiot be
according to any
because
it
weighed
known
formula.
how
matter
large
Wars,
or
Mr.
news.
news
is
and
was
with
no
many
UNO
in
a
Equities,
with
D
offices
at
Silberstein,
C.
K.
E.
Stroheim,
terms.
30
which
"Mokan,"
Vice-President
and
34% Oct. 16
Montg. Ward. @ 54% Nov. 3
CeUnese Corp. @37% Nov. 3
Southern Rwy.@ 40% Nov. 3
Pure Oil
@ 41% Nov. 9
Republic Steel @ 37% Nov. 28
....
Schwabacher & Co.
«
Int'l Paper
Exchange
New York Curb Exchange (Associate)
San Francisco Stock Exchange
*
,
Chicago Board o/ Trade
14 Wall Street
^
New York 5, N.
Y.*,
,
COrtlandt 7-4150
$225.00
325.00
200.00
Members Put
&
Calls
Dealers Assn.,
50
proper
particular
these
se¬
The clerks also watch the prices
catch
often
and
such
errors
price
as
typographical
putting a
dealer
a
ciling.
counted
125
of the typists have
Most
doing
if
and
they
which
in
of
then
given to the typists for sten¬
this work for years,
spot any condition
indicate
would
inaccu¬
an
in the market, they will im¬
mediately call it to the attention
of one of the editorial clerks, who
racy
in
would
dealer to
the
stencil
is passed along to
is
;
•
Broadway, N. Y. 4, Tel. BO 9-8470
these
books
most
call
tradings,
under
that
any
is
in
one
ex¬
cover.
the mimeograph
ation.
To these machines we have
added
our own
our
a
clipped into sets, and made ready
for shipment.
each
city, we must have a
closing hour.
In
New
definite
York and Chicago,
be adhered to
have
a
rigidly because we
Train and plane schedules
be
service
in
met
All
Pittsburgh
o'clock
Chicago
Denver
Coast
are
between
following
in
turn
Pacific
the
covering
the
Pa¬
A
sub¬
subscribers.
scriber has
a
matter
example,
of
the
nine o'clock
by
right in Dallas, as a
to
pay
an
that he will get the New York
the
ing,
following
subscribers
as
sets
The
the
morn¬
every
the
of
be
must
next
ship them in bulk by
night. The first
we
freight
500
day.
receive
York sheets the
air
Eastern
sheets
by 5:15* in the
afternoon for special handling, to
ready
make the
more
sheets
special
Portland,
tion
to Penn
Me.
people for final distribu¬
subscribers
the
next day.
Monthly Summaries
In addition to the
publish
Daily
a
Service
the
se¬
in
the
Issue,
period of
a
cases, even
longer.
the
to
current
and
quotations, the Monthly Sum¬
give ranges on some 2,500
maries
for
ten-year period, also
a
Florida—and
or
of
one
the
this
of
investor's
also
trustees in the
One
of
functions
this
of
protect the
most
investor
issues.
inactive
price
is
pretty
well
going to get the
customer
in
practically every case where he
is handling an inactive issue. The
security
a
to
who
his
for
is
the more
dealer
assured that he is
best
on
The
service
this
important
service
of
customer
the
of bonds.
case
the
confined
of
carry
ing conversions, redemptions and
privileges, transfer agen¬
cies in the case of stocks, and
distribution
a
the
callable
important data relative to mergers
solutely essential when
brings in a certificate
for
service
and
reorganizations, which is ab¬
think
valuable
protection.
Summaries
The
we
very
principal
address
of
most
of
the
corporations
listed therein,
the important provisions
cover¬
uses
addition
In
is
features
to
this service is
not
like
dealers
the
Daily Service. Banks through¬
the country use it in their
trust and securities departments
cor¬
out
poration which has gone through
reorganization or is in liquida¬
for
appraisal purposes and to keep
up
with
In
tion,
of this kind
cases
would
mary
certificate
of
a
show
should
be
a
sum¬
where
sent
the
in
liquidation payoff,
current
the
the
securities
or
custodian
Continued
jrom
page
hold
they
and
market
in
on
their
trust accounts.
5
Observations
satisfactory
investor.
or
In
a
unsatisfactory, as the case may be, for the average
table the first column lists the trusts alphabetically,
the second column indicates the type
of securities contained in the
portfolio, and the third column states whether the trust is a "regu¬
lated investment company."
But a fourth column contains the
unique type of specific evaluating conclusions, watchful of faults
as
whether the organization is controlled by another company;
whether there is too much concentration in particular industries;
whether the management is believed to be burdened with conflict¬
ing interests; whether the resources are insufficient (under $1 mil¬
lion); whether individual holdings substantially exceed 5% of the
total portfolio value, or investment in particular industries ex¬
ceeds 10% of the total portfolio value, thus not providing diver¬
sification; whether the portfolio securities are considered unsuit¬
able investments for the average investor; whether there is too
much leverage; an unsatisfactory performance record; whether
the information available is inadequate, and whether certain of the
charter or management agreement provisions are unfair.
That Past Performance Test
As
a
nine trusts are defin¬
conclusion to these tabulated data,
itely recommended.
While the authors are to be commended for
forthrightness in thus "sticking their necks out," the basis
seems to evidence some widely-held confusions,
their
for their choices
well
as the difficulty encountered by the ordinary investor in
making his choices. As the authors explain, in the making of their
as
selections
final
records.
major weight is given to the trusts' performance
But—as the authors
themselves
seem
appreciate—the
to
popularly-employed technique of judging the individual funds by
past performance is subject to great dangers. To this writer, not
only are the abuses in demonstrating performance important, but
principle the current great emphasis on past performance is fal¬
The technique of judgment on the basis of comparative,.,
past performance—a la horse-race-doping—overlooks the funda-,
mental fortuitousness of capital gains (in addition to the specific
abuses as comparing funds committed to differing investment poli¬
cies, choosing-the-periods, improper crediting of dividends, etc,)-
in
lacious.
Management Expense and the Discount
Monthly
and
also
It
covers
/
relative long-term j
annual management expense items and selling "loads" are gener-,
ally being given too little weight vis-a-vis the past capital gains
"achievements."
And in this connection the Institute's authors
is your columnist's conviction that the
.
(
have neglected the opportunity to show
the comparative advan-,
funds. For sev-.
Exchange-listed trusts sell-;
tages of many of the closed-end over the open-end
eral unpromoted and little-understood
a discount of from 15% to 30% thereby give the purchaser
opportunity to enjoy the benefits of expert management at a
cost to him of less than nothing. Thinking constructively in terms
of regular annual income-yield, the investor can be secure in the
knowledge that the proportion of gross income from the portfolio
ing at
the
which is deducted for management
Daily Service,
Summary
Service.
That is this paper vol¬
ume
we
have here, samples of
which are enclosed in your lit¬
erature.
It is a summary of the
issues which have appeared in the
we
for
in some
are
truck and
entire operation
to
it
distant points.
Sta¬
tion and Grand Central, sets to
cover
cities like Pittsburgh and
the
appear
back
goes
five years, or,
delivered to
Pittsburgh
morning,
Coast
east
subscribers
to
and Buffalo before
each morning.
The
sheets
subscribers
cific
their
receive
o'clock the next
New York sheets
delivered
and
the
that
by nine
morning.
nine
order
will
subscribers
of
p.m.,
tight schedule to live
very
to.
are
it is 2:00
This closing must
New York time.
If
he
latest
the
Semi-annual
the
to
attachments which
production up Ho 300
minute, against a normal
speed of 150 sheets a minute.
The
pages
are
then
collated,
bring
sheets
Orleans
approved, it
where we have 22
machines in oper¬
department,
mimeograph
In
refer
event
verify the quotation.
each
As
with
check
turn
If
sheets,
to
Supplement.
not
a
offerings
or
daily
refer
did
in
Supplement, which is cumulative
six
months, he would then
lots
are
express
&
in
that
the
complete rec¬
of reorganizations, and what
we
for
issues
and
to
quo¬
Service.
bids
cuirent
curity
old
337.50
Brokers
Inc.
have
istence
automatically
Daily
no
then
Monthly
that was
The tickets
security
one
on
been
the
would
which
250.00
..
THOMAS, HAAB & BOTTS
San Francisco-—Santa Barbara
the
Before 6:00 p.m.
is completed
and in the hands of the postal and
250.00
Subject to prior sale or price change
Monterey—Oaklan d—Sacramen to
Fresno—Santa Rosa
with
Messengers deliver
Teletype NY i-928
Private Wires to Principal Offices
"Street"
picked up by
delivered to
LaGuardia
Airport for the air
mail
and
air
freight shipment.
@ 54% Nov. 4 275.00
Y'ngst*n Sheet @ 93% Oct. 11 362.50
Halliburton Oil @ 30
Oct 30 187.50
Cities Service @ 78% Oct. 27 200.00
Stand. Oil (NJ) @80% Nov. 2 425.00
Members
Stock
file
to
way
so
the
were
in
and
order
an
would
he
to
there
curities.
These
•
believe
We
we
In other words, as the
receives
refer
"Canpacs" or
Pipeline, called
that our clerks have
familiar
be
to
Pine
Silberstein, Secretary; and
kmtr. Woolen @
Pacific Coast Exchanges
stock,
issues
last published
the
was.
of
call
they
New
President;
Per 100 Shares Plus Tax
York
written in
inactive
and
what
see
ab¬
Missiouri-Kansas
Chicago
engage
Officers
go
get it.
appear
dealer
Quite frequently the brok¬
sheets
SPECIAL CALL OFFERINGS
Orders Executed.on
names
often
are
ever,
to
will send in Canadian Pacifies,
ers
been
Treasurer.
Securities
New
which
securities
experience
different
recognize the
a
;
on
considerable
have
so
has
Inc.
re¬
should
tation
received from
special listing
are
additional air mail service charge
securities business.
L.
are
Pacific Coast
M.
E.
UNO Equities
small,
for
dealer.
Cantor, Fitzgerald
Frequently this Street, New York City to
distorted
doing
been
individual
Co., Inc.
formed
breed
an
Harburger
North Co.
&
recently
as
to
due
what
to
clerk who handles the work must
must
John F. McBride Co., Inc.
and
he
where
and
give
of
active
up
the indus¬
entitled
arranged alphabetically ac¬
cording to the security. The file
listings
subscriber
intended for another.
At
value
investor
then
-
maneuver
approximate
the
was
were
would
the
ceive
thousands of issues that,
their inactivity, rarely, if
many
it
tickets provided for this purpose.
These listings are sorted to sep¬
arate the bonds from the stock,
breviated and
means
insures up-
cash
and
it,
against
in the daily sheets. We diligently check some several
The main purpose of the Monthly hundred
newspapers and financial
Service is to put the subscriber
publications, to pick up all the
in
position to review the past local
changes that
occur—they
market performance of both the
may
be Dallas, Texas, or New
the
that
cold
market was headed down and blooded interpretive medium,
pointed to the action of the disregards the emotional and
two Dow averages to bolster translates the practical into
the plus and minus signs you
my theory.
see daily.
*
*
*
I
week
securities
new
issued
all listings.
on
Thursday, September 7, 1950
.
ord
time and expense and
The
*
if
8
page
Over-the-Counter Securities
-to-date markets
to.
*
*
jrom
Quoting Markets in
so-called inter¬
or a
war news
Whyte
Says—
Last
Continued
A newspaper
reasons.
.
.
the
market
discounts
ruling
on
costs, is
the
more
than covered by
of several
shares
available
well-managed closed-end trusts—leaving him net investment in¬
come
of 6%—7%.
The Switching Evil
r-
It would
and
without
seem
the
also that
our
authors,
as
well
industry, could well devote
as
others within
effort to
curtailing
t
,
Volume 172
Number 4940
..
.The Commercial ai\d Financial Chronicle.
the current activities of salesmen
persuading existing holders to
Alleged favorable performance demonr
strations are used in this process too, somewhat similar to 'the
traditional selling "pressures used in life insurance where salesmen
have been prone to make holders dissatisfied with their existing
policies.
switch from fund to fund.
.
.
Likewise
the
,
,
on
"reform"
Mr. Arthur Stone
Pewing made
a
,
k
the Institute and others
pointing out to the com¬
munity of investors their over-satisfaction with the well-known
blue chip issues, irrespective of value appraisal factors, which to¬
gether with their overemphasis on short-term performance and
could
rent economy.
haps the most .extensive and farpertinent com- reaching specialized knowledge of
ment on this very subject in his any
profession or business."
well-known book, "The Financial
So, there are plenty of reasons'
Policy of Corporations," published why everyone should begin work
by The Ronald Press Company, on his or her estate plan. It is
New York City.
an
ideal time to begin our mo-
.«
phases,
".
man,
the school teacher, clergylawyer, dry goods merchant,
and
shoe
constructive service in
perform
market-timing demands, practically force trust
managers
to
.
.
manufacturer
in¬
kno
about
ized training.
Yet these
same men
stand ready to embark on one of
the most intricate businesses —
Fiduciary Participation
The pamphlet devotes a nominal amount of space to the im¬
that of
investment—requiring
per-
ciples of freedom, on which
our
to incur the fees
the funds
charged by the
main¬
these
13
to
prepared
are
facilities
expand
services
and
as
needed.
They
are
also
ready
special arrangements for
cashing
monthly
government
to make
Bank's Role in Present
But
checks for families of
forces
men
in the
counts whicn exist
pendency allotments.
As in the
past, special identification systems
on
the closed-end trusts to compensate
to the managers.
are
entirely
Straggle With Communism
In taking advantage of such
performing
entirely
an
sonnel
proper
value-selection function.
There
of
is
hard-and-fast conclusive
no
fiduciary-functioning
process,
book
such
under
uniquely
or
to this question
answer
consideration
performing
aware
that
a
did
nothing
constructive
else,
service
it
in
still
from
would
war.
jecting their operations to impartial scrutiny and publicity.
Continued
jrom
Estate
if
us,
sary
Planning—Mobilize Now
fail to take the neces¬
precautionary steps to pre¬
we
vent them.
It
12
page
would
be
so
family to make
the
estate.
times,
And
espe¬
cially, this is a very important
for each factor. Everyone wants to be sure
inventory of that his executor will be available
an
Tne next
to act when called upon to do so.
step would
In
ence
on an
be to have a confer¬
with an Estate Planner, their
Attorney and their Life Insurance
Underwriter. In the event that a
is in doubt as to the Estate
Planner, I might inject a thought
on
that point.
There is one in
most of the larger communities
now
because this is an especial
person
rendered
his
uncertain
easy
its assets and liabilities.
service
of
executor
these
in
by
many
working with the Trust Officer
estate plan, a person under¬
ana
becomes acquainted
stands
with
the Trust
entire
staff
various
Property
counting.
of
fields—Investment, Tax,
Management and Ac¬
he selects
the Trust
trust his executor,
companies and those banks with
trust
departments.
They
have
Company and its
specialists in the
He then knows
he,
collected
as
ineffect, has
a
well-rounded group of trained in¬
during the
$222 billion, such
raised through bor- they
The balance of
forces and civilians during a war.
Operating under the Food for
Freedom program in Worl^ War
H, the banks financed the tremendously increased output of the
nature of the government secur- nation's
farms during the war
ities offered; their terms, matur- years.
In the two-year period
ities and interest rates,
It sug- 1944-45—the peak farm war progested sources of funds to be duction years—4he banks, made
borrowed, with a view to spread- more than 13 million farm proing the debt as widely as possible duction loans, totaling more than
among various types of investors, $7 billion.
The banks are ready,
to minimize its
This
known
ABA
as
inflationary effect.
Committee,
the
Committee
now
on
who
r"
only thing that is needed are wills
Perhaps
these wills will contain provisions
for a trust to accomplish one, of
for the husband and wife.
the
objectives
mentioned
above.
the other hand, a new
trend
planning may be best for
accomplishing the objectives of a
family. This new trend is a com¬
bination of a Living Trust (it
only means a trust which is es¬
tablished during a person's life¬
On
in estate
opportunity
his
to
review
individual ^assets.
carefully
This, tool
is
also important under presents
day uncertainties when continuar
changes, in our economy may have
a
vital effect
upon
many
stocks
and .bunds, as well as other type#
of assets.
Whether we continue
under
a
defense
there
or
a
war
econ¬
be various govern¬
mental controls, such as priorities,
rationing and price controls, to¬
time)' and a Will, with the latter gether with increased taxes, which
relegated to a minor position. The will affect some industries more
Living Trust, in effect, permits a than others — some companies
to see, his will in opera¬
Furthermore, under such an
omy,
person
more
tion.
an
arrangement an estate is not pro¬
bated and thereby subject to the
than
can
others.
And
there
is
equal obligation to a family to
protect investments from day to
day and to insure the best man¬
publicity, high costs and delays agement and supervision for them
all probate courts.. The , Will, that we can find. No one person^
under such a plan, then acts as especially one who is not
devoting
of
"catch-all"
and
transfers
is entire time to the field of in¬
vestment, can hope to accomplish
\ As soon as a person has ex¬ his objective of maintaining
ecuted a will, he has taken advan-r sound
investments, particularly
loose ends to the Living
any
Trust.
-
tage of the privilege
of selecting
under the complexities of our
cur-
and
receive
de¬
will be established for these pay¬
especially for the convenience
those who have no regular
banking connections.
I shall not go into detail con¬
cerning others of the 11 war
services of banking, which I have
ees,
of
already mentioned and publicly
discussed. I know that time iS|
vital to all of you, and that you^
gentlemen are preoccupied with
the details of your own business.
But I know that I speak for all
bankers
throughout
when
voice
I
to do all
we
the
country
determination
our
to aid this nation
can
as we have in
We, like everyone else in
this country, hoped that war could
during
the
war,
peace.
be
avoided.
It
is
still
our
hope
that the war lords of Communism
be brought to reason. Failing
this, there is no choice but to plan
and to do our part in the defense
may
of this country. I know that each
of you men, in your own lines of
business and in your own callings
and professions, are also ready
end willing to do all that you can
to
help defend America and our
of life.
way
able to finance all
and farm pro¬
this war.
necessary
food
duction during
COMING
At the start of the last war,
Borrowing, has con¬
tinued during the past five peace- funds and other assets of enemy
are
1
willing
who
Government
time years to meet periodically
specialists in
with the Secretary of the Treasqualified -trust officers, who be¬ the necessary fields, to administer
ury, at his request, to consult with
cause of their wide experience in an estate. And, further, he knows
him
on postwar management of the
this field, can be very helpful in that his executor will always be
debt.
In view of the new war dethe specialized work of assisting available and qualified to act.
velopments, we are prepared to
the attorney and the life under¬
Of course, it is quite possible continue
this service at the Secwriter on estate plans. And from
that a family may find that its
retary's pleasure, and the banks
my
own
experience, I can say
present plans will still accomplish will cooperate fully in war fithat they place as much emphasis
its objectives and that no changes
nancing.
on the human aspect of this type
are required.
Nevertheless, tney
of work, as on the purely tech¬
Early in World War II, the
have the satisfaction of knowing
nical phase.
banks
throughout
the
country
that they have reviewed
their were mobilized to sell and disThe professional team-work of
plans, which is a periodic "must" tribute War
the Trust Officer, the Attorney
Savings Bonds to the
insofar as all estate plans are con-,
and the Life Insurance Under¬
public. Under the leadership of
cerned. I can say, however, that'
writer
will
afford each
the
Association's Committee on
family
due to the great laxness which
the maximum of security and pro¬
Treasury
Sayings
Bonds,
the
heretofore has prevailed in set-*?
banks have continued to assist in
tection. From the meetings with
ting up good estate plans, this
this group, there will emerge a
placing these securities with the
finding probably will be the ex-?
public during the postwar years,
plan which is tailor-made to fit
ception rather than the rule.
V
the needs of the particular family.
They are ready again now to make
Another
Perhaps the insurance has been
by-product of estate further efforts in support of the
taken care of adequately and. the planning is that a person has the Treasury
Savings Bonds sales,
dividuals,
production borrowers, there is no
question. The banks are able to
provide tremendous amounts of
advisory to him throughout World
War II.
At the Secretary's call,
the committee offered suggestions
regarding the size and placement
of each borrowing operation; the
that if
Company
taxes
ment guaranty of the borrower's
credit.
As to the ability and willingness
of the banks to again finance war
credit. Never before have
or 56%, was
had liquid assets and rerowing from the banks and from serves so readily available to help
private and institutional investors finance
war
producers.
Bank
such
as
individuals,
insurance
lending officers gained an enorcompanies, and trust funds.
The mous amount of experience in
banks underwrote the success of extending
such
loans
during
every Treasury War Loan Drive. World War II. This can prove to
be
of
inestimable
Value
The Secretary of the Treasury
again.
Food and farm products are a
requested the American Bankers
need
of
both the armed
arme
Association to form a committee vital
trust
disinterested group is continuously sub-
a
gov-
$398
billion.
Of
this
amount,
$175 billion, or 44%, was obtained
But if the
making
requirements, and the
ernment's oper a ti ng costs, in
World War II: Federal expenditures during the war amounted to
to other phases of the investment trust
appraisal of individual managements.
as
our
be
managers
a
these
been
armed
opportunities, fiduciaries surely
«
page
instances,
have
this observation again overlooks the opportunity given by the dis¬
for the fees paid
'•
from
managers of investment trusts if
sufficiently large to justify direct investments."
are
Continued
of
banks
,
for corporate trustees
no reason
branch
banks
of the investment company device by fiduciaries,
they "see
number
a
country
was
founded and for tained intact, wherever justified
which it still stands, will be fur- by defense establishments, since
ther strengthened.
the end of World War II.
The
portantly growing question of the Prudent Man principle. In dis¬
the authors conclude that
goods
by. siphoning off lumber, j
cement, metals and other ma-If
terials, and adding to the force of
inflation.
bilization right at home. Every
Creation of tremendous Army
person, whether of small or large and Navy centers, bases, posts and
succeed^ without long and special- eventuality. And the basic prin-
management policies.
use
into the housing market now can
seriously impair the war effort and jeopardize the production of war-
w
means, should mobilize his per- encampments in.wartime requires
their
respective sonal assets immediately—before special
banking
facilities
and
businesses to feel assured that the it's too late!
If this is done, every services for
armed forces per¬
ordinary
uninitiated
could
not family will be prepared for any sonnel and their supply units. In
enough
dulge in competitive window-dressing in lieu of logical portfolio
cussing the
31
(923)
and
individuals
were
present in this country, in large
amounts, sometimes as accounts
maintained by their satellites,
EVENTS
nations
These accounts and other enemy
property were seized for the government by the banks, in accordance with the Alien Property Act,
to help prevent espionage and
other subversive enemy activ-
*ties.
^an^f ar®
|u0pe^pr^r^nPt^
awki
J?
ler
tbev f£e
k
forming these services if they are
requested to do so.
In
Investment Field
Sept. 8, 1950 (New York City)
Security Traders Association ot
York annual outing at the
New York Athletic Club, Travers
New
Island.
•
Sept. 8-9,1950 (Portland,
i
.
•
Ore.)
^
Pacific
Northwest Group of th<
rauiw «wuuww.uiwv
w
Investment Bankers Associatior
annual meeting at Gearhart Hotel
Qearjjart.by»the-Sea, Ore.
- *
-wa,
kept. 14, 1950 (Des Moines, Iowa)
production and
Iowa and> Nebraska Investment
.
Construction of housing projects
in and near war
centers during the last Bankers Association Field Day at
called for substantial outlays the Waj^^da Club,
pf mortgage credit. The banks «
.
racn (New York Citv)
are again ready to make loans to
finance these essential housing
New York Curb Eimhange Mli
projects, under Title VI of the
r^denCttv L I
Well over $50 billion of Savings Federal
Housing Act, on con- Country Club, Garden City, h. I.
Bonds are held, by the
public, struction that the government Sept. 15, 1950 (Philadelphia, P».)
This is approximately one-fifth of may authorize. We have not as
Bond Quk 0f Philadelphia Field
the
total
national
debt.
It
is yet been informed as to what pay at
Manufacturers Counestimated that
the banks have projects may be constructed, but ^ QUb.
sold
or
acted
as
distributing we are ready to fulfill any needs
v
j,
agents for more than $40 billion for such war housing credit.
Sept. 26-30, 1050 (Virginia Beaeh
of the
total of Savings Bonds
At the same time we are hopeVa.)
outstanding.
• ful
that the
extremely liberal
National Security Traders AsAnother important war service mortgage loan terms for civilian sociation Annual
Convention at
of banking is, of course, providing housing that have .been sponsored the Cavalier Hotel,
credit for the producers of war and provided by Federal Bousing
Q
m ..
Te*l
materiel. This consists of lending apd mortgage loan agencies
r
*
n .
to war industries to enable them throughout the
postwar period
Dallas Bond Liuh ,Aq^ai cto
expand
and
operate
their will be promptly and materially; umbus Bay Outing at the North- a
plants, acquire raw materials, and tightened.
On many occasions wood Club,
meet growing payrolls. These in- during the postwar period, and in Nov. 26-Dec. 1, 1950 (Hollywood
dustries may again require great testimony before Committees of
pia.)
V
amounts of credit.
War produc- Congress, the ABA has emphatiinvestment Bankers Associatioi
tion loans showed a steady rise cally pointed out that government annual convention-at the Holly
between 1940 and the end of 1944. real estate credit policies were Wood Beach
Ho^l.
V' -J
The total of Ml these loans made contributing materially to infla%
by the oanks is estimated to have tion and to the high cost of hous- Dec. 8, 1950 (New York City)
$
been well in excess of $20 billion, 'ing, and inducing weakness that
' N$w York Security. Dealers AsMore
than
half, or about $11 could materially harm the whc>le' sociation Silver^Anniversary Dinbillion of these loans, were made economy. Continued flow of gov- per at the Wamorf Astppa^ Hotel s
by the banks without any govern- eminent-sponsored liberal credit
Starlight Roof).
|
defense
war
,
•
_
32
The Commercial and Financial Chronicle
(924)
The following
Indications of Current
latest week
week
Business Activity
IRON
AMERICAN
(percent of capacity)
operations
steel
Indicated
INSTITUTE:
STEEL
AND
or
and
Ingots
Crude
stills
to
runs
average
(bbls.)
(bbls.)
output
Kerosene
dally
—
(bbls.)
output
and
distillate
fuel
Oil
output
oil, and distillate fuel oil (bbls.)
Gas,
fuel
Re-idual
at
at
Previous
Montb
Year
Week
Week
Ago
Ago
Sept. 10
97.1
99.9
84.2
Sept. 10
1.890,100
1,372,000
1,926,800
1,552,200
Aug. 26
5,699,480
5,707,580
5,531,550
4,769,100
Aug. 26
116,197,000
6,099,000
5,370,000
5,215,000
Aug.
Aug.
Aug.
Aug.
20,263,000
21,319,000
19,981,000
18,180,000
26
26
26
26
2,272,000
2,265,000
2,293,000
1,585,000
7,559,000
7,380,000
7,266,000
6,491,000
8,543,000
8,311,000
7,870,000
7,597,000
108,274,000
109,206,000
106,280,000
24,829,000
24,413,000
23,352,000
25,804,000
Aug. 26
65,841,000
65,107,000
61,437,000
74,718,000
Aug. 26
41,697,000
42,008,000
42,253,000
68,394,000
(number
of cars)
Revenue
freight
loaded
Revenue
freight
received from connections
Aug. 26
Aug, 26
(number of cars)
836,744
851,025
844,849
688,557
705,661
635,994
747,211
580,132
Revenue
from
June
of
ultimate
ultimate
PLANTS
U.
IN
number
Number
of
Number
of
Number
of
BUSINESS
Total
construction
8.
U.
construction
Private
construction
Public
-
and
municipal
—
Federal
„
Bituminous
lignite
and
coal
SALES
Ago
Previous
Year
60,400
61,929
54,184
14,500
16,341
43,107
22,694,422
22,394,246
19,905,282
$414,734,400
$407,411,300
$371,461,300
43,923,668
43,684,250
41,794,896
of
3C—
FROM
(AUTOMOBILE
S.
MANU¬
of
vehicles
July:
706,672
*856,618
579,043
595,067
720,688
483^261
motor
trucks——
111,208
135,332
95,348
motor
coaches
397
*598
439
7,225
8,861
6,424
—$32,100
9,500
$31,500
$33,300
9,500
9,000
14,800
*14,400
14,200
$55,400
$56,400
$509,000
$892,100
$491,100
$19,627
$19,077
$16,124
12,063
11,668
9,123
6,950
6,733
4,870
3,761
3,600
2,499
—
(NEW)
INCORPORATIONS
STATES—DUN
$155,191,000
BUSINESS
of
&
IN THE
ERADSTREET,
July
$198,771,000
$209,262,000
222,705,000
106,138,000
116,094,000
119,781,000
92,633,000
93,168,000
96,177,000
Aug. 31
Aug. 3l
97,357,000
87,879,000
72,646,000
55,425,000
Manufacturing
4,754,000
20,522,000
40,752,000
Wholesale
22,424,000
MERCE
59,014,000
DEPT.
INVENTORIES,
$342,486,000
NEW
SERIES
OF
Month
—
(millions of dollars):
COM¬
Aug. 26
Aug. 26
10,900,000
*11,280,000
10,760,000
7,881,000
959,000
961,000
965,000
922,000
Aug. 26
145,300
♦140,500
163,600
9,200
CASH
•
—
„
Aug. 26
291
295
♦281
,,
...
!
j
—
BY
;
_i—\
DIVIDENDS
U.
July
AVERAGE=100
June
of
.
Retail
RESERVE SYS¬
INDEX—FEDERAL
SALES
STORE
TEM—1935-39
Month
Latest
cars—'
PUBLICLY
—
CORPORATIONS
S.
PARTMENT
DEPARTMENT
June
at
Total
(tons)
(tons)
Pennsylvania anthracite
Beehive coke (tons)
customers
passenger
Aug. 31
MINES):
BUREAU OF
<U. S.
OUTPUT
COAL
Month
consumers—
omitted),.
ASSOC.)—Month
of
Aug. 31
Aug. 31
"
State
of that date:
NEWS-
RECORD:
-
of June
customers—month
FACTORY
FACTURERS'
UNITED
ENGINEERING
—
ultimate
to
(000's
VEHICLE
Total
;
end
—
Number
are as
INSTITUTE:
sales
June
INC.—Month
CONSTRUCTION
ENGINEERING
CIVIL
(short tons)
ELECTRIC
of
either for the
MINES)—
tons)—Month of June
Kilowatt-hour
Month
OF
are
primary aluminum it: the U. S.
or
aluminum
of
of quotations,
cases
(BUREAU
short
MOTOR
105,793,000
in
or,
Production
(in
Thursday, September 7, 1950
Dates shown in first column
ALUMINUM
Stock
.
production and other figures for the
cover
that date,
RAILROADS:
AMERICAN
OF
ASSOCIATION
(bbls.)
oil
on
98.0
fuel oil output (bbls.)
(bbls.)
Stocks at refineries, at bulk terminals, In transit and in pipe lines—
Finished and unfinished gasoline (bbls.) at
Aug. 26
Kerosene
(bbls.)
at
Aug. 26
oil,
Residual
Gas.
month ended
(bbls. of 42
gallons each)
Gasoline
month available.
EDISON
average
condensate
and
oil
Crude
INSTITUTE:
output — dally
PETROLEUM
AMERICAN
tons)
(net
castings
or
Latest
Equivalent to—
Steel
statistical tabulations
.
.
U.
—
COMMERCE
OF
.
$56,300
:'
REPORTED
DE¬
S,
of
Month
—
(000's omitted)
252
CONSUMER CREDIT OUTSTANDING—BOARD
OF
INSTITUTE:
ELECTRIC
EDISON
Electric
.Sept.
kwh.)
000
(in
output
2
6,459,381
6,345,503
143
176
6,247,464
5,543,913
GOVERNORS
SERVE
credit
Total
AND
(COMMERCIAL
FAILURES
INDUSTRIAL)—DUN
Aug, 31
168
174
credit
credit
of
as
RE¬
short-term
30:
June
credit
consumer
Sale
FEDERAL
THE
Estimated
—
millions
Instalment
BRAD-
&
INC.
STREET
OF
SYSTEM
in
—
_
_
_
.
.
_
Automobile
Other
Aug. 29
Fini-hed steel (per lb.)
Pig
Aug. 29
Aug. 29
tor)
ton)
(per gross
iron
Scrap steel (per gross
3.837c
3.837c
3.837c
3.705c
$46.61
$46.61
$46.38
$45.91
$40.92
$41.58
$37.33
$23.33
Noninstalment
(E.
PRICES
J. QUOTATIONS):
M.
&
refinery
Export
Straits
Lead.
(New
Lead
(St.
Zinc
S.
at
at
•——?Ug'
••
g" ?;!
AuS- 80
at
*
at
DAILY AVERAGES:
PRICES
pnf'
Government Bonds
corporate
Average
Aaa
™
Louis)
BOND
MOODY'S
U.
York)
Louis)
(East St.
___AUg. jo
^-Aug.
Aug. 30
*
at
York)
(New
tin
_L
22.425c
17.550c
103.000c
95.000c
103.000c
INCOME
12.000c
15,125c
11.800c
14.925c
Cereals
16.500c
15.000c
15.000c
10.000c
Meats
102.10
102.06
All
115.82
114.85
120.63
121.04
products
119.41
119.20
.
115.63
115.63
115.24
114.08
Clothing
gejj^
-Sept.
5
109.24
109.24
108.34
5
112.00
111.81
111.25
109.42
116.80
116.80
116.80
116.02
106.21
Fuel,
electricity
Gas
and
120.02
.Sept.
5
2.35
2.34
2.34
2.22
.Sept,
5
2.84
2.84
2.86
2.91
.Sept.
5
2.61
2.61
2.62
2.60
Aaa
.Sept.
5
2.68
2.67
2.68
2.69
Running
Aa
.Sept.
5
2.87
2.87
2.89
2.95
4ug.
Industrials Group
o
119.61
119.41
.Sept.
5
3.21
3.21
3.26
Baa
5
3.06
3.07
3.10
Railroad
.Sept.
3.20
Group
Utilities
Group
.Sept.
Sept
5
2.81
2.81
2.81
2.85
.Sept.
5
2.65
2.65
2.67
2.68
COTTON
Orders
«
at
(tons)
orders
469.9
459.9
473.5
344.0
Spinning spindles
active
Active spindle
hours
INSURANCE—BENEFIT
248,508
173,080
POLICYHOLDERS
184,605
INSURANCE—Month
96
86
294,327
on
Death
—
——_
July
spindle in place July
per
215,909
524,391
PAYMENTS
INSTITUTE
of
Annuity
REPORTER PRICE INDEX—1926-36
DRUG
AND
PAINT
.Sept.
AVERAGE=100
1
132.2
126.7
131.1
129.1
ACCOUNT OF ODDLOT
DEALERS AND
SPECIALISTS ON THE N. Y. STOCK
EXCHANGE—SECURITIES EXCHANGE COMMISSION:
FOR THE ODD-LOT
STOCK. TRANSACTIONS
Odd-lot sales by dealers
Number of shares—Customers'
Dollar value
*
total sales
i—AuS- 19
*
Customers'
short
Customers'
other
Aug. 19
Aug. 19
40,021
16,043
24,254
30,715
739,100
923,969
1,182,756
470,419
$41,459,142
$49,920,752
$18,312,782
$32,232,118
25,672
27,918
29,716
18,167
138
269
321
147
Aug. 19
25,534
27,649
29,395
18,020
Aug. 19
729,705
801,513
890,064
490,179
Customers'
short
sales
Aug. 19
4,855
9,653
12,116
5,355
Customers'
other
sales
Aug. 19
724,850
791,860
877,948
484,824
Aug. 19
$27,433,501
$31,198,271
$33,474,526
$16,102,928
Dollar
value
Round-lot
.
sales
sales
shares—Customers'
of
total
sales
—
sales by
dealers—
Number of shares—Total sales
Short
sale3
Other
sales
dividends
PURCHASES
INSURANCE
LIFE
(000's
223,030
237,540
209,540
188,550
Aug. 19
223,030
2~37~540
209~540
188,550
Aug. 19
271,430
345,750
—Aug. 19
_
_
Month
Ordinary
I
Industrial
SERIES
485,725
Total
MANUFACTURER'S
(DEPT.
S.
U.
DEPT.
OF
Month
OF
of
INVENTORIES
COMMERCE)
June
NEW
(millions
Nondurable
;
—
Livestock
_i2s>
—^
Meats
All
commodities
Textile
Fuel
and
Metals
other
than
farm and
products
and
♦Revised
figure.
_
IIIIIIIIII
materials—
metal
products
materials
Chemicals
foods—
1
lighting
and
Building
allied
~
''
products
,,
"
Aug. 29
167.2
*166.0
165.3
153.0
Aug. 29
179.5
176.4
179.2
162.0
Aug. 29
Aug. 29
167.7
165.5
169.5
152.9
249.4
245.2
246.4
203.5
AUg 29
176.5
174.4
175.2
161.2
Aug
29
263.8
259.3
257.9
225.7
Aug. 29
155.5
*155.1
153.4
145.1
146.4
138.9
134.0
129.6
29
150.3
*149.2
Aug 29
134.5
*134.4
Aug
Aug'
2g
174.8
174.9
*
2g
216.2
*215.1
IIII Aug!
29
124.0
121.6
A
Jlncludes 480.000 barrels of foreign crude runs.
204.1
210.2
304 4
295.6
208.2
141.3
139.6
141.0
176.0
174.3
184.7
185.0
188.5
124.4
123.9
120.7
138.9
135.6
139.5
176.2
97.0
97.0
96.9
190.9
189.4
183.1
146.6
146.6
139.9
J 86 4
185.2
186.8
156.2
155.3
154,3
559,426
22,977,000
20,221,000
23,500,000
20,525.000
7,284,000
10,435,000
5,637,000
408
452
255
$133,973,000
$137,941,000
48,117,000
41,298,000
$124,888,000
42,636,000
8,583,000
21,568,000
8,440,000
21,466,000
8,347,000
20,868,000
60,244,000
59,356,000
51,571,000
57,664,000
45,138,000
56,118,000
$330,149,000
$313,840,000
$304,428,000
$1,404,000
19,012,000
$1,418,000
$1,122,000
392,000
431,000
356,000
508,000
431,000
179,000
$2,304,000
$2,280,000
$1,657,000
$14,400
•$14,100
$15,700
17,700
•17,400
17,500
$32,100
$31,500
$33,300
21,200
•20,700
18,000
215.8
•214.5
205.9
SERIES—
dollars):
of
Total
of
products
Foods
149.1
217.2
SALES
&
.
_
(DEPARTMENT
LABOR—
AH commodities
.
182.2
164.3
220.8
Inventories:
June
Total
-^GrSins
236.0
177.1
175,520
191)6=100:
Farm
246.7
179.5
July
-
1
PERSONAL INCOME IN THE UNITED
NEW
of
*
Sales
Number of shares
PRICES
169.5
256.0
Aug. 19
•Ouud-lot purchases by dealers—
WHOLESALE
168.5
201.7
169.6
INSTITUTE
—
—
Durable
T__u-x."—-1.
170.2
204.6
171.3
omitted)—
Group
Number
Number
L'.
values
INSURANCE
OF
purchases by dealers (customers' sales)—
of orders—Customers' total sales
Odd-lot
LIFE
Aug. 19
Aug. 19
—
payments
Total
(customers' purchases)—
Number of orders
172.5
210.0
TO
endowments
Surrender
Policy
975
LIFE
OF
Disability payments
OIL,
1,014
June:
benefits
Matured
2,752
1,025
23,007,000
July 29
July 29
place on
in
spindles
spindle hours (000's omitted)
265,558
101
3,274
3,114
COMMERCE):
OF
(DEPT.
229,349
679,065
7,001
3,290
3,140
446,572
SPNNING
228,119
100
7,418
3,399
to
1)
211,075
645,496
prior
linters
of
7,564
COMMERCE):
OF
(DEPT.
(exclusive
bales
—
—
GINNING
Spinning
LIFE
(tons)
Percentage of activity
Unfilled
$
Au£Aug- £6
g"
Aug. 26
(tons)
received
Production
$
ASSOCIATION:
PAPERBOARD
NATIONAL
.Sept.
Sept.
INDEX
COMMODITY
furnishings
COTTON
Active
MOODY'S
—
Miscellaneous
Industrials Group
—
______
T—
Ice
3.38
PubU.c
refrigerators
and
electricity
fuels
Other
House
YIELD DAILY AVERAGES:
BOND
MOODY'S
sweets
—
120.02
Group
!
:
and
Rent
5
Utilities
vegetables
oils '
and
119.61
Sept.
Sept,
PubUc
and
Beverages
Fats
—
•—:
—
119.41
Railroad Group
^
Eggs
2.371
4,253
15:
products
bakery
Dairy
5
^
July
—
and
Fruits
103.93
116.22
foods
3,133
4,935
CITIES
LARGE
IN
of
3,139
5,113
MODERATE
FOR
—
14.000c
13.800c
120.84
INDEX
FAMILIES
14.000c
116.22
_
Items
13.800c
120.84
_
..
1935-1939-== 100—As
All
Sept.
__
^
22.200c
722.425c
99.750c
_
_
PRICE
Sugar
-
Aa
22.300c
22.425c
102.04
-
~ept. o
Sept. a
;
17.325c
22.250c
.
-
_
_
loans
credit
CONSUMER
Electrolytic copper—
Domestic refinery at
credit
accounts
Charge
Single payment
Service
METAL
_
__
credit
Loan
COMPOSITE PRICES:
AGE
IRON
i
173.9
168.2
210.7
187.5
120.5
120.5
COMMERCE)—Month
(in billions):
income
personal
Wage
OF
STATES
and
Total
salary
receipts,
total
.
employer disbursements
Commodity
producing
Distributive
industries
Service
industries
industries
Government
Less
employee
„
contributors
for
income
Proprietors'
and
Personal
Total
Total
interest
transfer
i
rental Income
income
and
payments
nonagricultural
income—
*132.7
131.6
*140.5
133.9
62.3
•60.9
56.4
40.1
*40.1
39.6
18.5
*18.5
20.9
♦21.0
2.9
2.8
17.5
„
20.4
social
insurance
Other labor
138 9
141.8
dividends
2.3
3.4
2.9
42.7
41.5
42.2
17.4
♦17.8
16.8
3.4
13.4
14.1
"12.4
199.1
198.4
187.4
,
Volume 172
Number 4940
.
The Commercial and Financial Chronicle
..
'
r
r',
!
■>,»
<
.
«
(925)
Continued
from
2
page
Continued
from
their
16
page
and
The
business
Security I Like Best
which
few years ago were ex¬
a
purchased
dollars
After
discount
from
tures
price.
hard
to
understand.
fumbling with moving pic¬
oil
trains, playrooms for
children and baby
sitters, it
bought vistadome cars, then found
the
could
cars
most
not
negotiate
time
tables
that
the
portion of cash
is
furnished
and
spent
lavishly
things are
happily ancient history.
hotel.
money
But
Mr.
on
such
to
sound
progressive
ble, if,
a
ward
10%
man¬
Canadian
is possi¬
neighbors
various
traced
continuing
other
to
as
be
can
long
well
as
team spirit that
characterized George Wash¬
agement and other fiscal matters.
outlays
tures
are
trend.
for
but
provements,
in
now
Its
National
im¬
stantial
current
working
or
in
its
earnings
gross
in
from
to
far below pre-
are
World War II and better than the
Average earnings for the
1946-1949 inclusive
share
C
&
which
O's
tax
shelter
profits tax is laid.
War
II
laws
if
50c
common
on
a
dividend
June 20.
This would
the stock
and
on
result
yield
in
basis
tracted
was
has
in
paid
of
great
of
one
the
the United States.
in
a
the
wide
Members, N. Y. and Boston Stock
(Canadian Short and Medium
into
new
during
global
sions
future
uncertainties.
ture
Inadequate
yet
i b 1
of
pos-
in
the
circum¬
stances,
Best"
and
tax
balance,
II.
Since
upward revi¬
Canadian
stiuc-
tax
not be extreme.
to
may
coming months
over
provide for
level
numerous
been
R. B. Williams
recent
cates
I
Like
term
internal
33%
with
40%, and that
of her excise taxes have
or
reduced
during
yields
on
of
of
prices and
some
typical Canadian
Canadian
100%
1.53%
93%
92%
102
1.50
102
2.40
102%
2.50
102%
2.65
102%
2.70
<93 V8
10/1/63759
93%
93
/
NOTE—While
certain
estate
potentially involved, the 1945
Canada
double
Yield
91 %
1/1/59/56^-^
62/p9
:
End
Funds
11/1/51
5/1 /57/54_
3's of
Approximate
embraced
taxation
in
the
estate
tax
Vs.
(or
succession)
convention
intention
settlements.
■
luncheon, 2:00
p.m. sharp.
There
provide entertainment for the
of
between
eliminating
tax
problems
the
United
the
possibility
of
1
sound
intended
banking stand¬
ards.
the
banking
system
as
at
credit by private borrowers takes
on
far more serious aspect
a
than
loans
of $21.7 billion were
by $7.1 billion of capital;
or, put another way, loans were
three
times
capital. Now bank
backed
loans
total
from
capital,
ratio
or a
Bank managers and bank stock¬
holders
well be less con¬
liquidity in 1950 than
in 1930 but they cannot view witk
equanimity the ever broadening
ratio of risk assets to capital and
consequent thinning out of equity
may
Nor
can
bankers afford to
overlook the
heavy responsibility
in their role of ex¬
carry
panding and contracting the money
supply. The role of bank credit in
15
page
$44 billion, compared
to $11 billion of
capital.
the economy is vitally important.
we
have seen, there are times
As
Role of Bank Credit
requiring the vigorous expansion
of
credit
to
meet
the
needs
of
a
growing economy
In Nation's
Economy
and there are
times calling for the exercise of
great restraint in credit granting
to
tional gold found reflection in an
increase
of currency
circulating
by private borrowers in 1945 and
1946 reflected an expanding civil¬
outside of the banks.
The remain¬
ian
ing $14 billion plus
net increase
sion
in bank
a
loans and investments
of
1929
1941
and
went
only
of
sults of
our
two
rapidly expanding
;
n_.
conducted
paign
a
urging
straint
the
be¬
t
in
cross-country cam¬
banks to use re¬
the
loans
than
ties
and
holdings of other
by $24.1 billion,
rose
or
increase of bank credit
$95.8 billion.
some
ings increased
by
a
in
to¬
spring of
1949 these particular types of loans
$2.8
some
the
banks,
bil¬
$5.4 billion
increased capital ac¬
from
came
counts
in
about
the
banks,
leaving
the
remaining $76.8 billion to increase
bank deposits. The increase more
seven
at
a
For
there
short
while
lending 'might
and
rate
first
effects
playing in the
Harris, Upham-Adds
(Special to The Financial Chronicle)
SAN
uel
N.
filiated
FRANCISCO, Calif.—Sam¬
Hinckley has become af¬
with
Harris, Upham &
Co., 232 Montgomery Street.
Joins Kaiser & Co.
i
h'1
'-(Special
to The Financial Chronicle)
Co., Russ Building, members
San Francisco Stock Ex¬
the
of
previously
change.
He
Stone &
Youngberg.
With
was
with
Walston, Hoffman
and
bank¬
SAN FRANCISCO, Calif.—A. B.
generally ended 1949 with the
feeling that neither inflation nor
Upward is with Walston, Hoffman
& Goodwin, 265 Montgomery
spread
nor
be
was
long-lived
ers
deflation
need
be
for
feared
the
(Special to The Financial Chronicle)
Street, members of the New York
San
Francisco
Stock
Ex¬
and
moment.
change.
years
early
of
Real
evidenced
its
con¬
in
late
1948 because
rap¬
one
year—found reflec¬
in
increased
rose
only 4%
rather in
but
prices which went
year,
part they are
nation's economy.
Renewed Inflationary Fears
expansion in the 1940's.
not
the
wide¬
Once
concern
tion
has been evidenced in the p>ast of
order.
more at
inflation had
20% in
freedom
become
in
of
and
If bank¬
not
sentiment
Such
of
1947
felt
economy
to
suggestions from
banking leaders that more aggres¬
began to despair at the shrinkage
was
mid-1949
concern
nation's
the
isolated
in the
cern
in
sufficient
was
cause
Little wonder then that bankers
the
this
of bank credit stands
about
sive
level.
retain
increasingly
aware of the great social respon¬
sibility that is theirs. They must
show a clearer understanding than
must
ser &
a
local
to
TSAN FRANCISCO. Calif.—H. A.
high—some $51 billion B<VyJe is now connected with Kai¬
new
today.
use
Gold hold¬
they
of
of all types
the
wish
ers
interest of combat¬
slowed down and in the
of
Federal Government securi¬
sions at
inflation.
bank credit by government and shrank
in
total.
On
the
other
private borrowers alike. Between hand, the use of bank credit in the
1941 and
1948 bank holdings of form of instalment paper and real
government obligations increased estate mortgages did not cease to
by roughly $71.7 billion, while grow with the result that the total
bank
prevent the money supply front
expanding faster than the produc¬
tion of goods and services. In our
country this vital function is ex¬
ercised
with
great freedom
by
bankers making individual deci¬
By mid-1948, the
expansion in commercial,
industrial and agricultural loans
re¬
use
that
was
Subsequently, • the" American
Association, in early 1948,
periods
demonstrate the
1947
credit
bank
How¬
apparant
Bankers
rate
second
of
end
in
concerned.
ing of private bank debt.
clearly
became
ginning to be reflected largely in
increased
prices and not more
production, the authorities became
ing
The
it
the
reconver¬
production.
war
when
toward
further than offsetting the shrink¬
does
from
increase
little
a
following
economy
ever,
for the
which
States
of formulae
set
a
express
they
or
are
to
of four times.
Dunlap,
idly increasing bank loans in 1947
—irom $35.8 billion to $43 billion,
,
complicated the problem of laying
Keith B. Reed, Hotel Chairman, Dittmar & Co., 845 Wilson
Building, Dallas, Texas.
over
3/1/54/52
3's
of
D.
Continued
available
issues:
bonds,
3's of
3's of 2/1
Oct.
on
$7.00 for golfers; $5.00 for non-golfers.
loaning function during the
1930's
only to
become worried
Funds
s
Buffet
following tabulations indi¬ -1941-1948.
recent
American
1%'s
the Grill.
banks in the course of
Approximate Current Price in
3
in
a.m.
than doubled the deposits held by
years.
capital, yet another large
exist side by side and make quite
For
Day Outing of the Dallas Bond Club
held at the Northwood Club
a
compares
of
rate
repealed
The
Security
of
wartime
a
^consists of Canadian short
medium
re¬
times
coun¬
bank has loans of three times cap¬
ital funds. These wide variations
cerned with
of
cau¬
"The
War
the
be
14
the
try's largest banks has loans of 10
times its
1012 Southwestern Life
larger crops and higher industrial
tion may not be a bad watchword.
Hence,
with
well
of
of
bank
of
renegotiation,
such
outing in
One
10:30
tal
wage rates,
Under
be
CLUB
Columbus
considerable lion. Of this amount
approximately
portion
of
increased
budgetary $16.4 billion went into an increase
requirements. It will be recalled in
currency in circulation outside
that
Canada's present
corporate
e
etc.
will
deposits
funds.
did prospective inflation carry at
the outset of World War II. Then
Rising
national income, predicated upon
rising prices as well as upon
tend
price
controls, high¬
er
World
war ensues,
may
volume,
given to
impending tax
increases, ' the
effect
trade
may
military effort is likely
of limited proportions unless
to be
a
of
many
s
of
States
her direct
ground,
been
The normal im¬
versed again to an export
numerous
"favorites" have pushed
as
$50
of nonferrous metals,
balance
United
as
ably has
of
gold, silver and plati¬
and commodities will be in
port
The stock market currently may
well be close to at least a tem¬
prob¬
These develop¬
retirement
greater demand.
Term Bonds)
weight
have
dramatically reflected
recent
range
num)
Day by day,
"Chronicle"
s
including
Exchanges
face
balances
has
capital
whole the prospect of further in¬
flation and increased demands for
approximately $6 billion accounts
deposit increase of the pe¬
riod.
True
enough,
commercial
that restrictions against import of
bank holdings of government obli¬
numerous United States products
gations rose by $23.3 billion in the
would be considerably relaxed.
period but meanwhile bank loans
The Korean War is likely to re¬
and holdings of securities of others
sult in further strength in Can¬
than government shrank by $17.3
ada's
relative position.
Her oil, billion.
In other words, expand¬
other
minerals
(consisting of a ing government credit between
Kidder, Peabody & Co.
the
Canada
million in bonds payable in Amer¬
ican dollars, and an announcement
of
greatest with
the
and
again returned to the 1946 level of
Manager of Research Dept.,
in
dollar
ments were
R. B. WILLIAMS
high
—
about $l1/4 billion.
6%%
wide recovery in earnings in sight.
porary top.
dollars
investment
America, C & O is destined to be¬
come
from
oil
than
railroads
BOND
lensmen
for posterity the highlights of the
in next week's issue.
a steady improvement
export-import relationship
American
quarterly 50c basis
market price which is
the
record
shown
her
with
to put
pression.
One
American
free beer will
tourist
dividend of
its low since the 1938 de¬
near
good
modities, such as newsprint, pulp,
agricultural products, etc., Canada
seem
better
State"
important
by
all contestants)
as
General Chairman, Binford & Dunlap,
Building, Dallas, Texas.
Dick Clark, Jr., Golf
Chairman, Dallas Union Trust Co.,
502 Dallas National Bank Building,
Dallas, Texas.
Orville G. Allen, Tennis Chairman, Lynch, Allen
& Co.,
1614 First National Bank Building, Dallas, Texas.
and
base
50c
be
crack
appear
Hugh
as
by
and
(as well
Co. of Texas, 610 Kirby Building, Dallas, Texas.
Contact any of the following for other needs:
little
recently by rises in world
prices for her exportable com¬
annual
of
current
still
a
also
are
ment
they usually
necessity for deficit financing.
a
members
send in registrations now with check to
Harry N.
McConnell, Registration Chairman and Cashier, Central Invest¬
years
"Welfare
50
more
payable Sept. 20.
Previous
had
has
Helped
excess
average
Directors declared
traffic
huge
a
Please
likewise
are
be
large center, sizable bank
deposits of 29 times capital
funds, while a neighboring insti¬
down
the
Annual
Cost:
surplus
the
to
handsome, useful gifts, and liniment
day following the affair.
of the
be tennis and indoor games to
entire day.
been
period,
prospects
discoveries
Under World
the
of
has
12, 1950,
Activities scheduled are golf, starting at 8:00 a.m.
All golfers
must tee off by 9:30 a.m.
General gathering will begin around
business—both of which have at¬
as
1936-39.
was
on
an
1949
Comparatively
do
accepted
each
favorable.
years
$3.30 per
were
be
may
A cash
in
to
concepts, involving
for Class 1 railroads.
average
1947
one
tomorrow
promises
Approximately
will
portion of the remaining
1950-1951
relation
or¬
during the
and a sub¬
five ye$trs,
or
shown
was
long history.
charges
has
10%
over
long-term issues.
ter than for a long while and its
physical condition the finest it has
Fixed
will
indebtedness has been funded into
capital position and outlook is bet¬
been
by
past four
downward
a
indebtedness
reduced
expendi¬
attending.
onlookers
to
The
thodox with respect to debt man¬
by
years
capital
such
hand
to
contracted
heavy
of
order
usual,
DALLAS
developments. The Canadian Gov¬
policies have been
the
pictures to
recent
more
STANY's
held
plentiful.
on
factors,
ernment's
recent
be the
As
in
ington's railroad and inaugurated
a new era. Its
working capital was
in
should
north¬
our
be
to
affair
tution
intention
For
confidence
YORK
for
in all events will be awarded
do indeed
economy
growing
a
Dinner,
The
NEW
completed
as
dollar.
our
improved situation of
harmonious
and
Island.
OF
been
scheduled to play golf; 60 will
pitch horse-shoes, 36 will alternate
softball players and an even dozen will
play tennis. Winners
ap¬
that country's fiscal position. The
ern
Outing
Travers
is destined to return to¬
parity with
inspire
Summer
8) at
have
A
our
Upwards of 250 out of STANY's 600 members have indicated
their
be
the
ASSOCIATION
preparations
level.
success.
Certain favorable trends within
formerly
in
charge of
coal
traffic, became
President.
Mr. Tuohy has revised
C & O financial
policies, restored
once
(Sept.
believe, Canadian
as many
currency
now
agement about IV2 years ago and
Walter
J.
Tuohy,
the
Annual
The risk
potential
a
preciation of up to
Young wisely returned the
road
Canadian
reserves.
negligible, and
TRADERS
Final
obligations, which seem particu¬
larly suitable for employment of a
amusement than information
more
9%
a
A yield of 1.50% to 2.70%
is available on those sound credit
important tunnel, introduced
trick
their
SECURITY
with
about
at
problem#
policy decisions
down
at the
strictly local
unique characteristic of
banking system is the wide
variety of individual patterns developed by individual banks. In
NSTA Notes
be
may
American
pensive and
individual
own
the need for
laid
33
increase in the
use
up
t
break
Far
of
become
armed
East.
With
before
a
conflict
that
source
the
in
event
SAN FRANCISCO, Calif.—How¬
the
now
beginning to shape the course of
the economy the government has
again asked for specific powers to
ard
&
banks.
From
now
on
as
commodity
16%. The
all
•
private enterprise, will be re¬
Though this be true, it does not
follow
that
banlts'
wiil
not' 'Bave
is with Dean Witter
45
Montgomery Street,
the
San Francisco
of
Exchange.
Joins F. I. duPont
far ahead
dom of banks, like the freedom of
Ely
Stock
(Special to The Financial Chronicle)
it is advisable to look, the free¬
stricted by the pressure of events.
W.
Co..
members
control the extension of credit by
as
Dean Witter
(Special to The Financial Chronicle)
out¬
production,
during the
of bank credit
With
mid-1950 the fear
even
MIAMI
BEACH, Fla.—Fred W.
Hager is now--with Francis I. du
Pont & Co., 2809 Collins Avenue.
He
Co.
was
previously with Baehe &
34
The Commercial and Financial Chronicle
(926)
•
Securities Now in Registration
Alabama
Power
Birmingham, Ala.
Co.,
28 filed 64,OCO snares ox 4.z0% preferred stock
(par $100) offered in exenange for a like number of out¬
standing 4.20% preferred shares of Birmingham Electric
Co. No underwriter. Offer expires Sept. 22. Statesment
July
effective
Aug.
Allen
29.
Organ Co., Allentown,
Price—At
par.
Underwriter—None.
Pro¬
other
Streets,
ceeds—For expansion of plant and development of
electronic
Office—8th
products.
Manager—W.
by amendment. Underwriter—H. 1VI. Byllesby & Co., jliu.,
Chicago, 111. Proceeds — For drilling and development
Pittston
and
Allentown, Pa.
Holdings Corp.
(letter ot notification)
8
stock. Price—At market
Virgil
of
(approximately $2.75
Underwriter—First California
Proceeds—To
shares
D.
capital
per share).
Corp., San Francisco, Cal.
Dardi,
President,
the
selling
stockholder.
•
American-Canadian
Uranium
(9/21)
-Sept. 1 filed 500,010 shares of common stock" (par 10c).
Price—$3.50 per share. Underwriter—First International
Securities Co., Inc.
Proceeds—To explore and acquire
claims and concessions for uranium
Co., Ltd.
ore
bodies.
Registra¬
tion statement expected to become effective about Sept.
Botany Mills, Inc., Passaic, N. J.
Sept. 1 (letter of notification) 1,200 shares of common
stock
(par $1).
Price—$10 per share. Underwriter—
P. F. Fox & Co. and John
P. White & Co., both of New
Proceeds—To Chas. F. H. Johnson, Jr., VicePresident, the selling stockholder.
York
•
21.
American-Marietta
Co., Chicago, III.
Aug. 25 (letter of notification) 6,0uu shares of common
stock (par $2), to be sold to underwriter at $16 per share.
Price—At market.
Underwriter—H. M. Byllesby & Co.,
Calumet Harbor Terminals,
stock
Proceeds—For
and
Price—At
$1).
(par
woiking
oi
Underwriter—None.
par.
capital.
Office—130th
Street
Ltd.
American
Motorists
Insurance
Co., Chicago
June 28 filed 100,000 shares of capital stock (par $5)
Price—To be filed by amendment.
be-
Ing offered to stockholders of record July 25 at rate of
share for each three
held; rights will expire on
Sept. 25. Price—At par. Proceeds—For general corporate
purposes.
Business—Casualty insurance. Statement ef¬
one
new
fective July 26.
American
Gas
Co., New York
Aug. 4 filed 334,934 shares of common stock fno oar), of
which 304,486 shares are offered to common stockholders
of record Aug. 24 on basis of one new share for each
10 shares held
(with an over-subscription privilege);
rights to expire Sept. 14. Price—$22 per share. Under¬
writer—None.
increase
Proceeds—To
investments
in
stock of Michigan Consolidated Gas Co. and Milwaukee
Gas Light Co.
American
Statement effective Aug. 24.
Oil
Producers, Inc. (9/11)
Aug. 8 (letter of notification) 290,000 shares of common
stock (par one cent).
Price—$1 per share. Underwriter
—S. W. Gordon Co., Brooklyn, N. Y.
Proceeds—For
drilling well, equipment and'working capital.
Office—
5 Beekman Street, New York 7. N. Y.
American
Radio
&
Television, Inc.
June 16 (letter of notification; 301,686 shares of
stock
mon
(par
10
cents).
Price—75
cents
com¬
share.
per
Underwriters—Gearhart, Kinnard & Otis, New York
City. Proceeds—For additional working capital. Office
—Fifth and Cornish
Streets, No. Little Rock, Ark. Letter
withdrawn Aug. 23.
Arkansas
Power
&
Light Co.
May 23 filed 155,000 shares of cumulative preferred stock
(par $100). Proceeds—To be applitd to (a) redemption
on Aug.
1; 1950, at $110 per share plus dividend ac¬
cruals, of all the 47,609 shares of outstanding $7 pre¬
ferred and 45,891 shares of outstanding $6 preferred;
and (b) the carrying forward of the company's construc¬
tion program.
^
Bids—Received
by
company
up
to
noon
(EDT) on June 19, but rejected. Only one bid was made
$100,003 per share, with a $4.95 dividend from Lehman
Brothers, Equitable Securities Corp. and White, Weld &
Co. (jointly).
Statement effective June 12. No further
"Of
Associated
Natural
Gas
natural
gas
transmission
line
Office—105
N.
Boulder, Tulsa, Okla.
Avco
Manufacturing Corp.,, N,tY. City
July 14 filed 1,500,000 shares of common stock (par $3)
offered in exchange for shares of Bendix Home
Appli¬
ances, Inc., at the rate of two Avco shares for each Ben¬
dix share.
Offer expires Sept. 15.
Dealer-Managers—
Emanuel, Deetjen & Co. anu Lenman Brothers. State¬
Aug. 8.
ment effective
Bank
Building & Equipment Corp. of America.
Aug. 28 (letter of notification) 1,000 shares of common
stock (par $3).
Price—To net company $8 per share.
Underwriter—Scherck, Richter Co., St. Louis, Mo. Pro¬
ceeds—For corporate
purposes.
Office—9th and Sidney
Streets, St. Louis 4, Mo.
Inc.
Proceeds—For
Coca-Cola
Bottling Co. of St. Louis.
(letter of notification) 4,000 shares of common
stock (par $1), to be offered to employees.
^
per share.
Proceeds—To benefit employees for services.
stock
(par $100).
Proceeds—To
the selling
Price—$39
Pierce,
Lynch,
Arthur
J.
share.
per
Fenner
&
Underwriter—
Beane,
Rosenthal,
common
New
York,
Aug.
8
New
Enameling & Stamping Co*
Price—$25
York.
Centennial Turf Club Inc., Littleton,
Proceeds—To
lege.
of 454 457 shares of
ceeds—For
Underwriter—None.
unpaid construction costs and to
Pro¬
6%
repay
90-day notes given to directors; the balance for working
capital. Business—Operating horse racing plant. State¬
ment effective Aug. 29.
Central Maine Power Co.
Aug. 23 filed 260,000 shares of
stock
(par $10).
Underwriter—To be determined by competitive bidding.
Probable bidders: Blyth & Co.,
& Co. (jointly); First Boston
Inc.
To
Inc., and Kidder, Peabody
Corp. and Coffin & Burr,
(jointly); Harriman Ripley & Co., Inc.
to New
go
Proceeds—
Service Co., the selling
proceeds to pay its outstanding
England Public
stockholder, who will
use
notes.
Central
Records
Corp.
Aug. 29 (letter of notification) 300 000 shares of onnHal
stock (par 10 cents).
Price—$1 per share. Underwriter—
Cohu & Co., New York.
Proceeds—To purchase equip¬
ment for
system
in corporation's remote
use
and
for
working
Street, New York, N. Y.
capital.
control accounting
Office—50
East
Co., the parent, of record Aug. 11, at the rate of
new
common
share
for
stock
held,
expire
each
Sept.
13
with
20.
shares
of
Central
Electric
overscription privilege;
Price—$10 per share.
If any
an
ment.
Dealer-Managers—Paine, Webber, Jackson & Cur¬
Stone & Webster Securities Corp., New York.
Proceeds—To pay unsecured note held by International
Telephone & Telegraph Co. Statement effective Aug. 22.
tis
and
Chase Candy Co., St. Louis, Mo.
Aug. 28 filed 147,861 shares of common stock
to
be
offered
F. S. Yantis &
two
shares
offered.
first
to
Co., Inc.,
held.
stockholders
common
on
the basis of
Unsubscribed
one
shares
$1)
(par
other
than
share for each
to
share.
per
Refrigeration Corp., N. Y.
(letter of notification) $250,000 of 6%
28
Citizens Credit Corp.,
common
common
dated June
notes
100
and
(letter
Washington,
in
incurred
San Francisco
to
all n£fU»t
Cleveland
—
"
interest.
Underwriter—National
Proceeds—To
commercialization
of
patent.
In¬
expenses
pay
prosecuting infringement actions under
for
and
pa¬
Office—50
Broadway, New York, N. Y.
Copper Canyon Mining Co., N. Y.
500,000 shares of capital
stock (par 10 cents). Price—15 cents per share.
Under¬
Aug. 25 (letter of notification)
Proceeds—To
increase
capacity and for
Otiice—25 Broad
equipment and working capital.
St., New York 4, N. Y.
new
Credit Finance Services, Inc., Akron, O.
Aug. 4 (letter of notification) $300,000 of 2% to 4% cer¬
tificates of investment. Price—$50 and up per unit. Un¬
derwriter—None.
Proceeds—For working capital.
Office
—^316 South Main Street, Akron, O.
May
24
cents).
Mines, Inc., N. Y. City
filed
Price—$1
pany
shares
400,000
Underwriter—Max
of tonnage and
share
Der
of
stock
common
Wolberg,
50
(par
director of
a
com¬
Proofed*—Few
mining and shipment of
Statement
ore.
effective Aug. 22.
Daily Compass Publishing Corp., N. Y. City
21 (letter of notification) 30,000 shares of class C
non-voting common stock. Price—At par ($10 per share).
Underwriter—None. Proceeds—For promotional and de¬
velopmental activities and for working capital.
Office—
16|4 Duane St., New York 13, N. Y.
I Delaware Power & Light Co. (9/26)
Aug. 29 filed $12,000,000 of first mortgage and collateral
tr^st bonds
terminated
notification) 3,000 shares of class A
stock (par $12.50) and 1,000 shares of class B
stock (par 25 cents), to be sold in units of three
one
due Sept. 1. 1980.
Underwrite-—To
de¬
by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co. and Salomon
Bros. & Hutzler (jointly); First Boston Coip : union se¬
curities Corp.; Lehman Brothers; Morgan Stanley & Co.;
White. Weld & Co. and Shields & Co. (jointly); W. C.
Langeley & Co. Proceeds—For construction program of
company
up
and its two subsidiaries. Bids—Will be received
to 11.30
600 Market
(EDT) on Sept. 26 at company's office,
St., Wilmington, Del.
a.m.
Detroit Hardware Manufacturing Co.
(letter of notification) 100,000 shares of common
sbarn
TTnd°rwriW—
Proceeds—To expand
Ai^.
st^k/lfnar $1) Price—$3 Der
CfG^McDonald & Co., Detroit.
fa^hflfes
D. C.
of
and
working
for
capital,
E^io^l'Avenue, Detroit, Mich.
Dpina Stores Corp., New
oince—±8^u
Mi,
York
t4i filed 100,000 shares of common stock (par 50
tsj|*Price—To be filed by amendment. Underwriter
share of class B stock.
Price—$44.50 per unit. Underwriter—Emory S. Warren
& Co., Washington, D. C.
Proceeds—For general funds.
Office—1707 Eye St., N. W.,* Washington, D. C.
seeing- stockholders.
Citizens Telephone Co., Decatur, Ind.
April 27 (letter of notification) 3,000 shares
AuJ.^jJTfiled 150,000 shares of preferred stock (par $50).
a$: Alstyne Noel Corp.,
and
conversion
to
dial
ible preferred
$1)
luesne
New
York.
Proceeds—To
•
Light Co.,
Pittsburgh, Pa.
(9/12)
-
par
($100
Underwriters—To be determined by competitive bidding.
Probable bidders:, Kuhn, Loeb & Co. and Smith, Barney
Proceeds—For
plant
&
Price—At
operations.
of
4M»%
Office—
Decatur, Ind.
City Stores Co.
July 17 filed 149,317 shares of common stock (par $5)
offered in exchange for common stock (par $10) of Oppenheim, Collins & Co., Inc., and for the 4%% convert¬
Private IVires
5-year
1, 1950 in multiples of $1,000.
vestors Service, New York.
publicly
Price—To be filed by amendment. Underwriter
Co., Inc., Chicago, 111., who had in June,
1949, purchased 200,000 shares at $2.50 per share. Pro¬
ceeds—To selling stockholder.
2
offering
an
stock to common stockhold¬
common
Continental
be
—F. S. Yantis &
June
amendment,
an
g.
Telephone Co., Lincoln, Neb.
Aug. 2 filed 94,035 shares of common stock (par $10)
being offered to common stockholders of Central Electric
& Gas
in
58th
Central
one
named
Five months ago
Temporarily postponed.
Cristina
•
240 W. Monroe St.,
Philadelphia
be
by a group headed by Morgan
Price—Expected to be riot le-> *hau ^83.
Proceeds — For construction. Offering —
writer—None.
(9/19)
common
par)
underwritten
was
tent
unit.
(no
Stanley & Co.
stock.
per
selling stockholders.
Power
Underwriter—To
Price—At
Price—$150
'
common
ypffered present holders at the rate of one new
share^oi each 10 held, with an oversubscription privi-,
income
Colo.
f
Underwriter—Cohu & Co.,
be
Aug. 14 filed $320,000 of 6% sinking fund debentures due
1965 and 32,000 shares of common stock (par $5) to-b2
offered in units of $100 debentures and
10 shares of
additions
Chicago
share.
per
Co., Jackson, Mien.
23 filed 499,903 shares of common stock
July
shares of class A stock and
Pittsburgh
notification)
el
.ier
t
stock.
Fla.,
Jacksonville,
stockholder.
*
Office—2930 N. Market St., St. Louis, Mo.
ers
preferred stock, non-convertible.
per
share). Underwriter—None.
^Boston
.
•
Capital Transit Co., Washington, D. C.
(letter of notification) 1,0U0 shares of
.
.
along with offering price.
Aug. 30
(9/19)
determined
Probable
.
New York
be
geological and drilling
operations in Canada. Expected next week.
balance is publicly offered terms will be filed by amend¬
Co., Tulsa, Okla.
March 14 (letter of notification) 2,500 shares of common
stock at $100 per share.
No underwriter. Proceeds to
a
Co.
&
rights
decision reached.
build
Read
Merrill
Natural
(par $1).
Underwriter—Dillon.
Illuminating Co.
July 27
to
June 27 filed 2,150,000 shares of common stock
Statement
company's offices, Room 710, 75 Public Square, Cleve¬
June
(9/11-15)
Dealer-
18.
New York.
Boston
Consumers
Canadian Superior Oil of California,
Sept.
on
Co.,
land, Ohio.
Stony Island Avenue, Chicago, 111.
the selling stockholder.
&
16.
Columbian
common
expires
by competitive
bidders: Halsey, Stuart & Co. Inc.;
Corp.; Blyth & Co., Inc.; White, Weld &
Co.; Glore, Forgan & Co. and W. C. Langley & Co.
(jointly); Dillon, Read & Co. Inc. Proceeds—To repay ;
$8,000,000 bank loans and for construction nro«ram. :
Bids—Expected to be opened at noon (EDT) on Sept. 19
Inc., Chicago, III.
Aug. 31 (letter of notification) 159,165 shares
Proceeds—To Grover Hermann, President
Chicago, 111.
of company,
City.
Offer
Hutton
E.
Underwriter—To
1985.
1
at
•
ADDITIONS
Aug. z2 uled $25,000,000 first mortgage bonds due Sept.
First
15,000
INDICATES
Cleveland Electric
bidding.
Blair
Aug.
Simon.
efiective Aug.
Price—To be filed
expenses.
1,500 shares of 6% pre¬
(par $100) and 750 shares of common stock
$100).
(par
Franklin
Pa.
July 19 (letter of notification;/
ferred stock
•
shares for each $1,000 of debentures).
Thursday, September 7, 1950
.
SINCE PREVIOUS ISSUI
Sept
Big West Oil & Gas Co., Dallas, Tex.
5 filed $1,760,000 of 5% sinking fund debentures
due 1965 (convertible into common stock on basis oi
0)
.
.
stock
(par $50) and common stork (nar
Simon & Co., Inc., at the following
of Franklin
ratios: 1% shares for each Oppenheim, Collins common
share; two shares for each Franklin Simon preferred
share and one share for each two common shares of
Cfo(jointly);
First Boston Corp.; Kidder Peabody &
Cb., Metrill Lynch. Pierce.
& Co.
Weld
finance
Bids—To
be
Fenner fr
program
received
up
at office of the company,
and
.
El Paso
31 filed 230,000
Aug.
to
,
Natural
be
offered
for
repay
0
iik
loans.
-r
-
*1 •
Gas Co.
shares of
common
subscription by
Price—To be filed by amendment
may
to
Whi+e.
Proceeds—To
to 11 a m. (EDT) on Sept. 12
Room 1540, } 5 Broad" St., New
York 5, N. Y.
•
Bean** ">nd
(jointly); Lehman Brothers.
construction
stock
(par
$3)
stockholders.
UnderrPer-—Tf
\
common
be White, Weld & Co. and Stone & Webster Secur-
'
"V|
Volume 172
ities
Corp.
Number 4940
.
.
cSS
The Commercial
.
Proceeds—To retire either
Financial Chronicle
part of the out¬
a
standing 212% bank notes maturing in 1951 and 1952
a
•
or
7
stock,
tiled
to
10,000
corporation and
($100
par
acquire
•
Ernest
Sept.
1
of
4%
of
officers
to
Curtis
share;.
per
To
shares
offered
be
September 8, 1950
Mohawk Business Machines Corp
estate
its
for
Printing Co., Los Angeles, Calif.
of notification) 500 shares of common
(letter
stock to be purchased
L. O'Connor.
($100
General Computing Machines Corp
share). Proceeds
newspaper printing shop.
Office—
800 Standard Oil
Bldg., Los Angeles, Calif.
—For
per
Kerk
acquisition of
Guild,
Tennessee
11:30
Fedders-Quigan Corp.
June 21
filed
103,402 shares of series A cumulative
vertible preferred stock (par $50)
mon
stockholders
each
12
basis
on
shares held.
Co., New
to
complete purchase of
for additional
and
(par 50 cents).
Howard
Inc.,
Wilkes-Barre,
lative
preferred
li:30
Pelham,
N„
Price—At
par
($25
plant, lines and other telephone facilities
•
Florida
Standaid Coil Products
Corp., St. Petersburg,
Lehman
construction
•
Gary Theatre
Aug.
Proceeds—To
shares
be
to
sold.
"J: Tl:30
October
Air Associates, Inc.,
and
General
Utah Power &
the
Ky.
Ohio
July 17 (letter of notification) 101,500 shares of common
stock (par 50 cents). Price—$2.11 per share. Underwriter
—None. Proceeds—For working capital. Office—334 East
Broadway. Louisville, Ky.
General Radiant Heater Co.,
filed
?
170,000
share-
ot
stock
'oar
25c
Proceeds—For plant and warehouse
research, working capital, etc. Temporarily
Amendment may be filed.
General
June
filed
30
stock
a
Gosseiin
Aug.
stock
s'ock
common
(par
$1)
(par $1).
Light Co.,
nock
'par
J.
Corp.
lOO.UUO
share.-
Ltd.,
~anital
working
of
Price—35c
Proceeds—To
None
common
Oklahama
British
Columbia
IJnderwritermachinery
and fo
share.
per
mining
buy
Statement
Graybar Electric Co.,
Aug. 23
per
effective Mav
Inc., New York
Underwriter—None.
ing capital.
•
Greenwich Gas
Co., Greenwich, Conn.
Sept. 1 (letter of notification) 8,000 shares of preferred
stock (no par) and 9,777 shares of common stock (no
par). Price—Of preferred, $25 per share and common,
Underwriter—None.
bank loan and for working capital.
$10 per share.
Hammond
Instrument
Proceeds—To retire
Aug. 24 (letter of notification) 2,500 shares of common
stock (par SI). Price—$24 per share. Underwriter—Paul
H Davis & Co., Chicago, 111. Proceeds—To selling stock¬
holder.
•
Aug.
Hooper,
Uetier of notification)
18
Pr-ce—In
1970
due
Telephone Co.,
$30,000 of 3%%
of
excess
102%.
Wachob Bender Corp., Omaha, Neb.
temporary
Neb.
Common,
Price—At par
Common
ceeds—To pay
Preferred
bonds
Proceeds—To retire
Middle
loans.
House
Aug.
31
Idaho
of
F.
non-cumulat've
shares of
G.
Inc.,
Jamaica,
N.
Y.
preferred
stock
3,500 shares of 70-cent
stock (oar $10)
and 1,500
Price—$10 per share.
Underwriter—None.
Proceeds—For
working
capital.
Office—1 $0-26 Merrick Boulevard, Jamaica 5, N. Y.
eemmon
v*' '• f
•
■
.
(no par).
Utilities,
Inc.
Maryland Mines Corp., San Francisco,
10,000 shares of
common
stock.
Price—At market (about $1.40 per share). Under¬
writer—E. F. Hutton & Co., San Francisco. Proceeds—
To
International
ore
warrants
com¬
stock.
$1 value of warrants) and 600,000 shares
stock
be reserved
to
for conversion of
war¬
Price—$1 per unit. Underwriter—Lawrence Fred¬
erick Gardner,
Merrick, L. I., N. Y. Proceeds—For en¬
gineering and survey work and mining operations. Office
—11 West 42nd
Street, New York, N. Y.
on
Discount Co., Inc., Newark, N. J.
(letter of notification) $55,000 of 8% 20-year
debenture bonds. Price^At 110%. Underwriter—Morti¬
mer
L. Schultz, President of company.
Proceeds—For
working capital. Office—60 Park Place, Newark 2,.!^. J.
29
Guild, Inc., Whitesboro, N. Y. (9/11)
(letter of notification) $125,000 of 10-year 6%
mortgage
sinking fund bonds.
Price—At par in
$500
and
$1 000
each.
Underwriter—Mohawk
Valley Investing Co., Inc., Utica, N. Y. Proceeds—For
working capital and to reduce current accounts payable.
Main
Street, Whitesboro, N. Y.
•
Key West Propane Gas Corp. (Fla.)
Sept. 1 (letter of notification) $125,000 of series A bonds.
pr:ce—At par ($1,000 each).
Philadelphia,
Pa.
Underwriter—Bioren & Co.,
Proceeds—To purchase outstanding
bonds and notes of Key West Gas Co. and stock of Island
City' Gas Co.
.
*'
\
offered
a
—: - - ;
^
of
to
common
Proceeds—To pay notes and for
Co.
Laboratories,
Inc.,
(letter of notification)
23
stock
(par $2). Price—$16 50
Cohu &
additional working
Indefinitely postponed.
Miles
June
Elkhart, Ind.
2,500 shares of common
per
share. Underwriter—
Co., New York City. Proceeds—To two
Offering date indefinite.
selling
stockholders.
Miles
Inc.
Laboratories,
Elkhart,
Indiana
14-(letter of notification) 5,000 shares of common
(par $2).
Underwriter—Albert McGann Securi¬
ties Co., Inc., South Bend. Ind.
Proceeds—To selling
stockholders. Letter withdrawn.
Aug.
stock
Kerk
of
(letter
9
stock
Ke^ma
units
Newark, N. J.
notification) 5,200 shares of common
stockholders at $50 per share
one-for-five basis.
Underwriter—Clark, Dodge &
Middlesex Water Co.,
Feb.
capital.
Kaye-Halbert Corp., Culver City, Calif.
July 28 filed 100,000 shares of class A common stock
(par $1). Price—$5 per share. Underwriter—Sills, Fairman & Harris,
Inc., Chicago, 111. Proceeds—For working
capital.
•
(letter of notification) 410 shares of common
Price—$14 per share. Underwriter—None. Pro¬
ceeds—To Central Telephone Co., the selling stockholder,
23
Aug.
Corp., New York
(convertible into two shares of one-cent par value
par
Mississippi Power
Middle States Telephone Co.
Uranium
Aug. 28 (letter of notification) $300,000 in
stock
and
Equitable
selling stockholder.
a
•
& Light Co. UnderwriterSecurities Corp will serve as "dealer-man¬
ager." (See also listings of Arkansas, Louisiana and
Mississippi companies elsewhere in these columns.)
Co.
(letter of notification)
(no par) to L
preferred stockholders of three subsidiaries
Louisiana Power & Light
—Arkansas Power & Light Co.,
California
Aug. 8
Office—30-40
(letter of notification)
South
be offered to
»!
•
per share). Underwriter—None. Pro¬
promissory notes and for plant improve¬
($4
Office—Renkert Bldg., Canton, O.
ment.
June 1 filed 400,000 shares of common stock
first
Underwriter—
Inc., Canton, Ohio
Metropolitan Brick,
Aug. 29 (letter of notification) 50,820 shares of common
stock to be offered to present common stockholders.
Pfd. & Com.
Co., Inc
notification) 1,250 shares of 5% cumu¬
preferred stock. Price—At par ($100 per share).
Underwriter—Johnson, Lane, Space & Co., Inc. Proceeds
—To Ernest B. Merry, Jr.. Vice-President and General
Manager, the selling stockholder.
Aug. 31
Hooper
(9/18-22)
lative
Common
United States Plywood Corp..
Aug.
Co., Chicago
Industries, Inc.
Merry Brothers Brick & Tile Co., Augusta, Ga.
June 15 (letter of
rants.
Proceeds—For work¬
Office—9700 Oakland Ave.,
Cleveland, O. Proceeds—For working capital. Ex¬
Co.,
Common
Corp
Standard Coil Products
mon
10
filed 72.000 shares of common stock, to be of¬
subscription by employees. Price—At par ($20
share).
Telephone
Southern Co.
non-assessabl«
common
(John)
..JN^ck
Common
Common
of common
fered for
J
General Radiant Heater Co., Inc
27.000 shares of class A
Inc.,
capital.
Aug. 28 filed 150,000 shares of common stock (par $1).
Price—To be filed by amendment. Underwriter—Otis &
a
Edwards,
Mines
.VW
Bonds
Common
•
filed
,(ESlTK-
11, 1950
Co
Creamery Co., Detroit, Mich.
(H. A.)
Detroit, Mich.
Fedders-Quigan Corp.
Canada
i6
(•'eb
Debentures
noon
Newhall, Calif.
Aug. 21 (letter of notification) 14,685 shares of class "B"
stock.
Price—$4 per share.
Underwriter—None. Pro¬
1950
Safeway Stores, Inc....
Proceeds—To exoand chain stores.
Granville
9,
Common
and 220,000 shares of clas<= B
Price—$1.10 per share for both
Underwriter—R.
issues.
Debentures & Com.
Inc., Oklahoma City, Okla.
Co.,
<letter of notification)
15
common
City.
Stores
on
1950
Consumers Power Co
Rochester
share-for-share basisin exchange for outstanding preferred stock of W
L
Lougja& b.ioe Co. No underwriter. Statement effective
July 25.
(par $1) to be offered
4,
Middlesex Water Co
Shoe
Corp., Nashville, Tenn.
maximum of 32,885 shares of
195C
OFFERINGS TEMPORARILY POSTPONED
Price—$3 per share.
advertising
postponed
Chemical of California,
pected week of Sept. 18.
Inc.
common
Edison
followsl-
May 31 (letter of notification) 282,250 shares of capital
stock. Price—At par ($1 per share). Underwriter—Floyd
A. Allen & Co., Inc., Los Angeles, Calif. Proceeds—To
buy land, build a plant and equip it to produce so-called
"impact" plastics. Office—244 S. Pine St., Newhall, Calif.
ceeds—For working
October
October
Louisville,
Plywood Corp.,
3,
Corp. of America
carrying of accounts receivable.
as
Equitable Securities
Inc., and
Co.,
Blyth &
McDonald
October
Vanadium
made
Corp. (jointly), $100.10 with a $4.65 dividend; and W. C.
Langley & Co. and First Boston Corp. (jointly), $100.30
with a $5.80 dividend. Statement effective June 12. No
Light Co. .Notes & Com.
Sierra Pacific Power Co
Machines Corp. (9/11)
Sept. 1 (letter of notification) 50,000 shares of common
stock (par 1 cent). Price—$2.50 per share. Underwriter
—Singer, Bean & Mackie, Inc., New York. Proceeds—
Principally for working capital, including purchase of
were
Bonds
New Bedford Gas & Edison
Tampa, Fla.
bids
Three
Corp., $100.40 per share with a $4.65
Securities
Loven
construction
shares of outstanding $6
further decision reached.
(EDT)
a.m.
ma¬
Light Co.
&
accruals, the 59,422
dividend;
Common
September 27, 1950
to be issued to Ernest S.
Proceeds—For
Office—3418 East Broadway,
completed machines from
Power
rejected.
but
Union
-Delaware Power & Light Co.
aU Computing
Gene
May
Bonds
September 26, 1950
loans and
for
pay
preferred stock, and for construction and other purposes.
Bids—Received by company up to noon (EDT) on June
__.Bonds
September 21, 1950
.
American-Canadian Uranium Co., Ltd
o*
u
y",-y'
are
Common
payment for land and buildings and the remain¬
as
374
of theatre.
•
bank
repay
program.
stock, 376 shares-of which
ing
en
.
vt>
automatic
May 23 filed 90,000 shares ot preferred stock (par $100).
Proceeds—To be used to redeem, at $110 per shart plus
19,
-
of
Proceeds—To
chinery.
Hampshire Electric Co
Fla.
Enterprises, Inc., Tampa, Fla.
(letter of notification) 750 shares of common
30
Abate
Kidder
_
installation
Common
Common
dividend
Cleveland Electric Illuminating Co.
'nNoon (EDT)
Lynch, Pierce, Fenner & Beane (jointly);
Brothers.
for
1
Central Maine Power Co
cumu¬
modern¬
Sept. 1 tiled 40,000 shares of cumulative pr£j.etred stock
(par $100). Underwriter — To be determined by com¬
Probable bidders:
Inc._J
Co., Inc
Ohio
(letter of notification $50,010 of 20-year 3V2%
first
mortgage bonds, series A, due 1969.
Price—At
102.17.
Underwriter—The Ohio Co., Columbus, Ohio.
September 19, 1950
New
Co. and Merrill
Logan Home Telephone Co., Logan,
Aug. 25
September 18, 1950
share)
per
and
ize
petitive bidding.
Preferred
Bonds
Meek (John) Industries,
Y.
Co., Denver, Colo.
(letter of notification) 60,000 shares of capital
stock.
Price—At par
($1 per share).
Underwriter—
None. Proceeds—For general operating expenses. Office
—412 First National Bank Bldg., Denver, Colo.
1
Louisiana
Proceeds—To extend
Power
Lodi Oil & Development
Sept.
(EDT)
a.m.
common
Underwriter—
Telephone Co.
notification) 1,200 shares of 4%
stock.
•
Virginia Electric & Power Co.
(Ala.)
Underwriter—None.
New York.
Common
Pa.
8,965 shares of
Price—At market.
Connor, 302 Cliff Avenue,
Proceeds—To selling stockholder.
June 29 (letter of
(EDT)
(EDT)
a.m.
Blvd., Lawndale, Calif,
Uenver, Colo.
porate purposes. Office—630 Fifth Avenue, New York 20,
Pennsylvania RR., noon (EDT)__Equip. Trust Ctfs.
Offering postponed
O
Florala
Duquesne Light Co., 11
pay
working capital.
(letter of notification)
19
Bonds
Common
September 12, 1950
filed
promissory note
plant at El Monte, Calif,
new
Fleetwood-Airflow,
July
stock
be
An¬
appli¬
Leigh Foods, Inc. (h. v.;
(letter of notification) 300,000 shares of capital
stock (par 10 cents). Price—$1 per share. Underwriter
—None. Proceeds—For working capital and general cor¬
Co.
(EDT)
Utah Power & Light Co., noon
to be offered to com¬
preferred share for
Proceeds—To
a
Transmission
Los
gas
June 30
Bonds
Transvision, Inc.
con¬
by amendment,
Underwriter—Smith, Barney
rate.
&
Gas
F. Hoornaert of
manufacture of
Ernest and Cramner
Common
Inc
a.m.
common
Underwriters—
(par$l). Price—75 cents per share. Underwriter—
Proceeds—To
pay
indebtedness.
Office—500
Bldg., Denver, Colo.
None.
one
Price—To
along with dividend
York.
of
stock
Common
Canadian Superior Oil of California, Ltd._.Common
by Robert M. O'Connor and Millie
Price—At par
snare.
Aug. 30 (letter of notification) 50,000 shares of common
American Oil Producers, Inc
(R. W.)
Proceeds—For
Office—14529 Hawthorne
Leadville Lead Corp.,
•
Common
September 11, 1950
parent.
MacDonald and John
Calif.
ances.
Proceeds—
Price—per
par).
(no
geles,
preferred
employees of this
Candy Co., parent. Price—At
real
stock
Donald
cumulative
and
Underwriter—None.
equipment and
*
NEW ISSUE CALENDAR
Equipment Finance Corp., Chicago, III.
Aug.
Kilbury Manufacturing Co., Lawndale, Calif.
Aug. 28 (letter of notification) 30,000 shares of
portion of tne 3%% convertible debentures due 1963.
35
(927)
Miller
(Walter
R.)
Co.,
Inc.
of notification) 1,000 shares of 6%
cumulative preferred stork at par ($100 per share). Un¬
derwriter—George D. B Bonbright & Co., Binghamton,
N Y.
Proceeds—To assist in acquisition of 1216 shares
March
of
I
6
(letter
company's common stort
Corp., Hawthorne, Calif.
*x
cumulative convertible^
preferred stock. Price—At par ($20 per share). Under¬
writer—Lester & Co., Los Angeles, Calif. Proceeds—To
retire bank loans and install machinery and equipment
Mission Appliance
July 24 filed 50,000 shares of 6%
Continued
4
-
—'
on page
36\
36
The Commercial and Financial Chronicle
(928)
Continued
from
i
in
proposed new plant to be located east of the Rocky
Business—Manufacturer of gas and electric
a
Mountains.
water and space
with
$4.85 div.; W. C. Langley & Co. and First Boston Corp
(jointly), $100.30 with a $4.90 dividend; and Blyth & Co.,
$4.80 dividend; Lehman Brothers, $100.o51
a
a
Shields & Co., White,
Weld & Co. and Kidder, Peabody & Co, (jointly), $100.19
with a $4.90 dividend. Statement effective June 12.
No
Inc.,
Securities Corp.,
Equitable
July 26 (letter of notification) 100,000 shares of common
stock (par $2). Price—$3 per share. Underwriter—None.
Proceeds—For operating purposes.
Office—Parks Met¬
Perlite
Aug.
(letter
10
each)
de¬
(in denominations of $500
1955
30,000 shares of common stock (no par).
certificates, $400 each; for stock, $1 per
Underwriter—Robert D. Bowers & Co., Denver.
and
Price—For
share
.
working capital.
Proceeds—For
23 filed 112,500 shares of common stock (par $4).
Price—To be filed by amendment.
Underwriter—Blunt,
Aug
Ellis
&
Proceeds—To four selling
Chicago.
Simmons,
stockholders, part of which will be used to pay debt of
some of
shaienolders to company. Expected about the
Girardeau, Mo.
Aug. 24 (letter of notification) 1,500 shares of 5% pre¬
ferred stock (par $100). Price—$102 per share.
Under¬
writer—Wachob-Bender Corp., Omaha, Neb. Proceeds—
•
SVIohawk
Proceeds—For
Machines
Office—743 Fifth
working capital.
Avenue, New York, N. Y.
Carmel
Mt.
(III.)
ferred
Petroleum
3,000 shares of 4%
pre¬
stock
•
Powers
and
Proceeds—To
•
Street, New Orleans, La.
share).
National
Barge Co., Pittsburgh, Pa.
$38,000 of 5% preferred
mortgage bonds.
Price—$989.54 per $1,000 unit.
Aug. 30 (letter of notification)
Underwriter—S. K. Cunningham & Co., Inc., Pittsburgh,
Pa. Proceeds—To pay bank loan and for new barge.
New
Hampshire Electric Co. (9/19)
Aug. 2 filed $3,600,000 of first mortgage sinking fund
bonds, series A, due 1975.
Underwriter—To be deter¬
mined by competitive bidding.
Probable bidders: Halsey,
Stuart & Co. Inc.; The First Boston Corp.;
Kidder, Peabody & Co., and White, Weld & Co. (jointly). Proceeds
—To retire (a) $1,880,000 first mortgage bonds, series A
and B, due 1963, and (b) $1,250,000 of bank
loajis due
Dec. 31, 1952; and the balance for construction purposes.
Bids—Expected to be invited around Sept. 7 and opened
Sept.
on
New
19.
Public
Service
Inc.
Aug. 24
(letter of notification) 7,754 shares of common
(no par) to be offered to stockholders (other than
stock
Middle
South
Utilities,
share for each
share
derwriter—None.
Inc.,
held.
parent)
at
Price—$25
of
0.168
share.
Un¬
rate
per
$1,000,000 at $5,000
share. No underwriter. Proceeds to be used to
plore and develop oil and mineral leases.
fective May 22.,
Northern
ex¬
Statement ef¬
Illinois
Coal Corp., Chicago
notification) up to 2,000 shares of
common stock
(no par) to be sold at the market price
(between $20 and $22 per share) by T. Howard Green,
a
Vice-President of the company.
Underwriter—Faroll
& Co., Rogers & Tracy and Shields & Co., Chicago.
May
(letter
10
of
Northwestern
June
filed
9
offered
49,200
Public
to stockholders
held. Underwriter—A.
Price—$10
per
Service
Co.
shares^ of.(tjpmmon stock
(par $3)
a( rate.pi: one share for each 10
C; AUyri arid Co., Inc., New York
share. ProceedS^For construction
expen¬
ditures.
stock
now
held in treasury.
Watt
and
bank
loans.
Schoyer.
To
1,100
shares of
None
•
Price—50 cents
be
per
offered
through Preston,
Proceeds—Toward, repayment of
Proceeds—To modernize plant.
National
Airways,'
Inc.;
Washington,
Aug. 25
(letter of notification) 70.000 shares of class A
preferred stock (par $1) and 170,000 shares of common
stock (oar 10 cents). Price—At
par. Underwater—None.
Proceeds—For
operation of non-certificate air
Ofice—1417 K St., N. W.,
Washington, D. C.
carrier.
by amendment.
.
Amerlc»n dold'Ltd., Toronto, Canada
July 20, 1948 filed, 1^83,295 shares oi^ommon stock
.
Sa4Unp7od^
effective April 10, 1950.
it
iMf
Thurmond,
Fire
New
Office—6'208
for
Orleans, La.
Louis XIV
rato
pro
Oct.
Office—Braniff Bldg., Oklahoma City, Okla.
held
writers—For
tive
(letter of notification) 10,000 shares of capital
stock (par $20) to be offered on a one-for-four basis to
stockholders of record Oct. 20, 1950, with the rights
2
expiring
Dec.
Price—$25
1950.
4,
shares
writer— Unsubscribed
to
share.
Under¬
offered
publicly
per
be
through Burton, Cluett and Dana, 120 Broadway, New
York, N. Y.
Proceeds—For working capital.
Office—
226 Walnut Street,
Rainier
Philadelphia 6, Pa.
Funeral
rights
build
Inc.,
Chapels,
funeral
Exchange
Office—1817
home.
Building, Seattle, Wash.
Rochester
Y.)
(N.
Telephone Corp.
.Proceeds—For general corporate purposes,
struction and repayment of
loan.
a
including con¬
Offering postponed.
Rocky Mountain Textile Mills, Inc.
July 11 (letter of notification) $150,000 of 5% convert¬
ible sinking fund debentures, due 1960, and 15,000 shares
of common stock (par $10), to be sold separately or in
units of one $1,000 debenture and 100 shares of stock.
Price—Separately, at par, and in units, at $2,000 each.
Underwriters—Boettcher & Co. and Peters, Writer &
Christensen, Inc., Denver, Col.
Proceeds—For new ma¬
chinery, equipment and working capital. May be placed
semi-privately.
Roper (George D.) Corp., Rockford, III.
Aug. 3 (letter of notification) 4,500 shares of common
stock (par $5).
Price—$22 per share.
Underwriter—
Pierce,
&
Fenner
Beane,
Royal Television & Electronics,
(pai
Pri^-45 cents pei
development. Statemepi
Chicago, 111.
stockholder.
&
stock
and
one
common
share for
expire
to
be
Oct.
on
19. Under¬
by competi¬
determined
before 11
company
debentures:
Webster Securities Corp.
Productions,
Television
150,000 shares of
Inc.
common
Price—$2 per share.
Underwriter—
Cunther, Newark, N. J. Proceeds—To com¬
plete films in progress and for general corporate pur¬
poses.
Office—321 So. Beverly Drive, Beverly Hills,
Calif.,
(par
$1).
Koellmer &
Smith-Dieterich Corp., New York City
stock
(letter of notification)
(par $2.50)
75,292 shares of
common
to be offered to common stockholders
of record Sept. 8 on a share-for-share
Sept.
on
for
Price—At
28.
ceeds—For
television,
par.
purchase
for
and
basis; rights expire
Underwriter—None. Pro¬
motion picture films
producing
of
purpose
Office—50 Church
of
equipment.
new
Street, New York 7, N. Y.
of
derwriter.
Offer to
Co., Atlanta, Ga.
shares of common stock (par $5).
bidders are: Morgan Stanley & Co., Kidder,
Peabody & Co. and Merrill Lynch, Pierce, Fenner &
Beane (jointly); Blyth & Co., Inc. and Bear, Stearns &
Co. (jointly); Lehman Brothers; Union Securities Corp.
and Equitable Securities Corp. (jointly); Harriman Rip¬
ley & Co., Inc. Temporarily postponed. Bank Loansstock
August to
to
financing proposal
for $12,000,000 of
of
Co., Detroit. Proceeds—To go to
two selling stockholders.
Being sold on New York Curb
Exchange from time to .time.^-/ '
was
bank
provide
provide funds
stock
to acquire $12,000,000 common
necessary
Alabama
amended
in
borrowings
and
Co.
Power
Georgia
Power
Co.
($6,000,000 in each), the bank loans to mature in one
year.
As soon as practicable and feasible, sale of the
1.000,000 common shares will be made, and the proceeds
retire
to
the
June 26
stock
to
bank
loans.
Natural
Southwest
Gas
Co.,
sold
be
by
M. Craigmyle, at market
through Craigmyle, Pinney &
Ronald
share)
Co., New York City.
per
Standard
Coil
Products
Co. Inc.
common
Underwriter—F.
share.
per
(9/18)
stock (par $1).
Co., Inc.
Aug. 11 filed 367,500 shares of
Price—$15.25
Shreveport, La.
13.500 shares of common
(letter of notification)
(about $7.37%
Eberstadt &
Offer¬
Proceeds—To three selling stockholders.
ing—Expected
Sudore
week
Gold
after
Mines
next.
Toronto, Canada
6, 1949, filed 375,000 shares of common stock.
June
Ltd.,
Price
—$1 per share (U. S. funds): Underwriter—None. Pro¬
ceeds—Funds will be applied to the purchase of equip¬
ment,
exploration
construction,
road
and
development.
Sylvan Products, Inc., Centralia, Wash.
Aug. 17 (letter of notification) 6,000 shares of 6%
lative
preferred
Underwriter
mill.
10
filed
due
Price—At
stock.
None. Proceeds
—
Address—Box
writer—None.
&
Statement effec¬
Probable
&
Ryerson & Haynes, Inc., Jackson, Mich.
(letter of notification) 5,000 shares of common
stock
(par
$1). Price — At
market.
Underwriter —
Sept. 22.
Underwriters—To be determined by competitive bidding.
June 22 (letter of notification) 600,000 shares of common
stock (par 10 cents). Price—50 cents per share. Under¬
Aug. 15
on
June 23 filed 1,000,000
Aug.
buy television set compo¬
W.. Washington. D. C.
expire
tive Aug. 29.
bonds
Proceeds—To
(par $5)
exchange for 545,610 shares of common stock
Birmingham Electric Co. on a lV2-for-l basis. No un¬
Tennessee
Office—714 Fifth St.. N.
stock
common
in
offered
Inc.,
Washington, D. C.
nents.
of
Halsey, Stuart & Co. Inc.;
Probable underwriter
for stock: Stone & Webster Securities Corp.
Proceeds—■
To pay bank loans and to finance new construction.
used
125,000 shares of common stock (par $10)
present stockholders at rate of one new
share for each four held.
Price—To be filed by amend¬
ment.
Underwriter—The First Boston Corp., New York.
to be offered to
Lynch,
to
debentures
bidders for
Stone
Common
Seattle, Wash.
Aug. 31
(letter of notification)
15,000 shares of 5%
cumulative preferred stock and 3,000 shares of common
stock.
Price—$10 per share. Underwriter—None. Pro¬
ceeds—To
basis
bidding (bids to be received by
Southern
Quaker City Fire & Marine Insurance Co.
Aug.
on
Southern Co.
50,000 shares of common
stock (par $4). Price—$6 per share. Underwriter—None.
Proceeds—To increase capital to become multiple line
company.
to preferred
3
July 28 filed 818,415 shares of
Co.
Insurance
Aug. 30 (letter of notification)
Gas
—
cumu¬
share).
per
449, Centralia, Wash.
Co.
Transmission
$40,000,000
of
first
(9/11)
pipe
mortgage
Underwriters—To
1970.
($25
par
To establish plywood
determined
be
line
by
bidders—Halsey, Stuart
Co., Inc.; Stone & Webster Securities Corp. and White,
Weld & Co. (jointly). Proceeds—To pay off $35,000,000
of short-term notes and for expansion.
Bids—Will be
received at the office of Messrs. Cahill, Gordon, Zachry
competitive
&
up
bidding.
Probable
Reindel, 26th floor. 63 Wall St., New York 5„ N.,- Y„
to 11:30 a.m. (EDT) on Sept. 11. Statement,effective
Aug. 30.
!
! <
J
Tennessee Gas Transmission Co., Houston, Tex.
.
Safeway Stores, Inc.
June'8 filed 321,000 shares of cumulative
(par $100) and 257,064 shares of
The
Pacific Power & Light Co.
Aug. 30 filed 1,750,000 shares of common stock (no par),
representing all of the outstanding shares of the company
to be sold by a group of 16 stockholders headed
by A. C.
Allyri & Co., Inc. and Bear, Stearns & Co. Underwirters
—To be named
F.
theatre.
build
Prudential
(par
units of one share of preferred
stock. Price—$100 per unit.
in
of common
McDonald-Moore
D. C.
•
•
share
Telephone Co., Orchards, Wash.
16 (letter of
notification) 500 shares of common
Price—At par ($100 per share).
Underwriter—
Overseas
be offered
Underwriter—William
common
Orchards
March
to
Proceeds—For benefit of Grace Y. Roper, a
(letter of notification)
Underwriter—None.
atock.
(no par) and 1,000 shares of preferred stock
two shares
Merrill
Ohio Oil & Gas Co.
May 5
shares
mon
June 29 filed
Norlina Oil Development Co., Washington, D. C.
March 28 filed 600 shares of capital stock (no par.) To
per
(letter of notification) 5,000 shares of common
$100)
Proceeds—To finance plant additions.
Office—317 Baronne Street, New Orleans 9, La.
offer only sufficient shares to raise
offered
1975
1,
each six preferred shares and one share for each 12 com¬
Aug. 31
stock
•
Orleans
be
due Oct.
stock (par $15), the latter
common
stockholders of record
•
Underwriter—None. Proceeds—To re¬
tire short-term notes and expand facilities. Office — 316
Market St., Mt. Carmel, Illinois.
ship
24,716 shares of
to
(10/3)
$2,500,000 of debentures
June 29 (letter of notification)
Theatres, Inc., New Orleans, La.
Aug. 30
per
Toronto Canada
April 25, 1949, filed 1,150,000 shares ($1 par) common
of which 1,000,000 on behalf of company and 150,000 by
New York Co., Ltd.
Price—50 cents per share. Under¬
writers—S. G. Cranwell & Co., New York.
Proceeds—
For
administration expenses and drilling.
Statement
being offered to common stockholders of
record July 31 in ratio of one preferred for each six
common held; rights to expire Aug. 30. Price — At par
($100
Power Co.
Pacific
filed
telephone service.
Ltd.,
effective June 27, 1949.
Public Utility Co.
July 24 (letter of notification)
Proceeds—To expand
Power
Corp. (9/8)
Aug. 30 (letter of notification) 25,000 shares of common
stock (par 10 cents). Price—$1 per share. Underwriter—
None.
1
Simmel-Meservey
improvement of property.
Business
Sierra
able
of 5% cumu¬
lative preferred stock, series B. Price—At par ($100 per
share). Underwriter—M. H. Bishop & Co., Minneapolis,
Aug. 30 (letter of notification) 2,000 shares
Minn.
•
Sept.
(EST) on Oct. 3); for common stock, to be supplied
by amendment, together with subscription price. Prob¬
Telephone Co., Waconia, Minn.
Pioneer
Price—$1.25 per share.
Underwriter—
Valley Securities Co., Rochester, N. Y. Proceedj
capital.
—To acquire properties and for working
a.m.
middle of September.
•
Missouri Utilities Co., Cape
Co., Oklahoma City, Okla.
(par 500).
Genesee
issue
Manufacturing Co., Chicago, III.
Pheoll
stock
and
further decision reached.
For construction and
Temporarily postponed.
Seneca Oil
$150,000 of 5V2%
notification)
of
benture certificates due
Thursday, September 7, 1950
April 27 (letter of notification) 225,782 shares of class A
Co., Denver, Colo.
Mines
.
preferred. Proceeds—To redeem the unexchanged 5%
stock, make cash payments on exchange, and toward the
prepayment of $20,000,000 in bank loans.
Offering—
ropolitan Airport, East St. Louis, 111.
heaters.
Mississippi Power & Light Co.
May 23 filed 85,000 shares of cumulative preferred stock
(par 100). Proceeds—To be used to redeem at $110 per
share plus dividends, the outstanding 44,476 shares of $6
preferred stock and for construction and other corpo¬
rate purposes.
Bids—Received by company up to noon
(EDT) on June 19 but rejected. Four bids were made
as
follows:
Union Securities Corp., $100.10 per share
with
Inc., East St. Louis, III.
Parks Air Lines,
35
page
.
.
at
common
the
Of
the
rate
of
will
one
be
offered
new
share
common
to
for
preferred stock
stock (par $5).
common
each
10
stockholders
shares
held.
preferred
.205,661 shares will be offered in
exchange for 186,965 shares of outstanding 5% preferred
stock, along with an unspecified cash navment. *Tndor_
suiter—Merrill Lynch, Pierce, Fenner & Beane will offer
the unsubscribed common shares as well as 85,114 shares
of preferred not needed for the exchange and 30,225
shares which will be created by converting that many, of
the old 5% shares brought in under the .exchange into
r.ew
preferred stock,
Any old preferred not exchanged
ysiUX be,,redeemed on Oct.'1. Priee,-r~ro be filed by
amendment, along with the dividend rate on the hew
Aug. 28 filed 100,000 shares of common stock (par,$5"J. to
be issued in exchange for 80 000 shares of common stock
of
Sterling Oil & Gas Co., and for 10-year subscription
purchase 133,333 shares of Sterling common
stock. The rate of exchange is to be supplied by amend¬
ment. Exchange Agent—The National Bank of Commerce
of Houston, Tex.
warrants to
Transvision,
Tune
13
Inc.
Price—$2.75
per
share.
baugh & Co., New
ing
(9/11)
filed 300,000 shares of common
capital
and
Syndicate, Inc.
«Took
SI).
Underwriter—Blair F., Clay-
;Yo^kl *Procie0d3-i-To ^hx^ease
renay
loan*
fMrH" RFC
stock
14
to
Chemical Corp.
(letter of notification) 52,097
be
word¬
Croydon
Staterh'eht effective Aujt 21. [
Unexcelled
Aug.
and
offered
to
stockholders
.
,v
c
.
-
fares'; of capital
of
ijecprd Aug. 21
Volume 172
Number 4940
.
.
.
The Commercial and Financial Chronicle
basis of one new for each five shares held; rights to
expire in 30 days. Unsubscribed shares to be offered to
employees and others.
Price—At par ($5 per share).
on
Underwriter—None. Proceeds—For expansion and work¬
Office—350 Fifth Avenue, New York, N. Y.
ing capital.
United States Plywood Corp.
June
19 filed
60,000 shares of series B cumulative con¬
vertible preferred stock (par $100). Underwriter—East¬
man, Dillon & Co., New York.
Price—To be filed by
amendment
along with dividend rate.
Proceeds—To in¬
working capital and for other corporate purposes
including the erection of a new plant at Anderson, Calit
crease
Webster
Securities Corp. (jointly); White, Weld &
Co.,
Peabody & Co. and Shuman-Agnew & Co.
(jointly); Equitable Securities Corp. and Harris, Hall &
Co. (Inc.) (jointly). Proceeds—For construction
program.
Kidder,
•
California Electric Power Co.
Aug. 31 company filed application with FPC for author¬
ity to issue 40,000 shares of 5% cumulative preferred
stock
(par $50). Exemption is sought from competitive
bidding requirements. It is planned to place this issue
with
Aug.
Power
2 filed
&
Light Co.
first
$8,000,000
(10/9)
used to finance
March
bonds due
mortgage
1980.
bidders:
Halsey, Stuart & Co. Inc.; Lehman
Brothers and Bear, Stearns & Co. (jointly); Union Secur¬
ities Corp. and Smith, Barney & Co. (jointly); First Bos¬
ton Corp. and Blyth & Co., Inc.; Harriman Ripley & Co.,
Inc.; Kidder, Peabody & Co.; White, Weld & Co.; Salo¬
Bros.
mon
&
Hutzler.
construction
Proceeds—For
Bids—Expected to be received up to
Statement effective Aug. 30.
gram.
pro¬
(EST)
noon
Oct. 9.
on
Utah
Power
&
Light
Co.
basis of
one
new
on
share for each eight shares held; rights
will expire on Oct. 4.i
Underwriters—To be determined
by competitive bidding.
Probable bidders: Blyth & Co.,
Inc.; Union Securities Corp. and Smith, Barney & Co.
(jointly); Lehman Brothers; W. C. Langley & Co. and
Glore, Forgan & Co. (jointly); Kidder, Peabody & Co.
and Merrill Lynch. Pierce, Fenner & Beane (jointly).
Proceeds—For construction
program.
ceived by the company at Room
York
New
N.
6,
Y.,
effective
Statement
up
to
Bids—Will be
re¬
2033, No. 2 Rector Street,
noon
(EDT)
on
Sept.
11.
Aug. 30.
Vieh
Co./ Columbus, Ohio
May 8 (letter of notification) 19,500 shares of common
stock at $10 per share. Underwriter—The Ohio Co. Pro¬
ceeds—To buy the assets of Brodhead-Garrett Co. and
for working capital.
Virginia Electric & Power Co. (9/12)
9 filed $20,000,000 first and refunding mortgage
bonds, series H, due Sept. 1, 1980. Underwriter—To be de¬
termined by competitive bidding. Probable bidders: Hal¬
sey, Stuart & Co. Inc.; Union Securities Corp.; Kuhn,
Loeb & Co.; White. Weld & Co.; Stone & Webster Secu¬
rities Corp.; Salomon Bros. & Hutzler; First Boston Corp.
Proceeds—To pay $8,000,000 of bank loans and for con¬
struction program.
Bids—Must be received up to 11:30
a.m.
(EDT) on Sept. 12 at the office of J. C. Leighton,
Room 503, 90 Broad Street, New York, N. Y.
Aug.
West
3,000 shares of common
stock (par 50 cents).
Price—At market (about $10 per
share). Underwriter—Coffin & Burr, Inc., New York.
Proceeds—To selling stockholder.
Office—42-16 West
Street, Long Island City, N. Y.
Western Carolina
Telephone Co., Franklin, N. C.
(letter of notification) 1,406 shares of capital
stock to be offered to stockholders at^rate of one share
22
for each two shares held.
Western
Feb.
Price—At
par
($50
per
Cobalt
Uranium
Mines, Ltd.,
Vancouver, B. C., Canada
filed 800,000 shares of common
28
capital
stock
Winn
Sept.
&
Lovett
Grocery
Jacksonville,
Co.,
Fla.
6 filed 210,000 shares of common stock (par $1).
be filed by amendment.
Underwriter—Mer¬
Price—To
rill
Lynch, Pierce, Fenner & Beane, New York.
working capital.
Proceeds
—For
Aetna
June 3 it
Finance
was
later
this
Sachs
&
Co.
reported company may do some financing
year.
Traditional
underwriter:
Goldman,
basis of
—Loewi
buy
it
Power
was
body & Co., and Alex. Brown & Sons, and others.
ceeds—For additional working capital.
Oil Corp.,
a
Pro¬
.
Associated
banking group
t
-
The
issue
of
new
stock
and
headed by
Hemphill Noyes, Graham.
Co., Drexel
Aug. 28 it was reported the company plans to sell in
October $6,000,000 of first mortgage bonds, series G.
Halsey, Stuart & Co. Inc.; Kuhn, Loeb
Bros. & Hutzler (jointly); Lehman
and/Salomon
Brothers; Paine, Webber, Jackson & Curtis and Stone &
Becker
&
Co., Inc..
Utilities Co.
15,973
Probable underwriter:
The First Boston
Mfg. Co., Fort Atkinson, Wis.
expects shortly to sell
was announced company
shares of
common
stock to stockholders on the
share for each 10 shares held. Underwriters
one
&
Co., Shearson, Hammill & Co. and Bell &
Proceeds—For working capital. Business—
Farrell, Inc.
Manufacturers of barn and poultry equipment.
•
Johansen Brothers Shoe Co.
Oct.
25
sell
stockholders will vote
$350,000
on
proposal to issue and
of 4%
sinking fund debentures due 1960.
Proceeds to retire outstanding 3V2% debentures and for
■
Cleveland
Aug. 1 it
shares
Illuminating Co.
issue
an
of
Electric
reported that company this fall may issue
of preferred stock, of which 495,011
was
sell
and
value
presently available, stock¬
April 25 having increased the authorized
amount to 750,000 shares from 500,000 shares. The pro¬
holders
ceeds
no
par
are
on
are
to be used for construction program.
Probable
& Co. Inc. if negotiated sale.
underwriter: Dillon, Read
•
Connecticut
Power
Co.
Aug. 31 company announced stockholders will vote Sept.
18
approving
issue of $10,000,000 new bonds, which
Of the proceeds, $7,200,000 will
be used to redeem three outstanding bond issues and the
balance for plant expansion and construction.
on
an
be placed privately.
may
other corporate purposes.
Nicolaus & Co.
La Crosse
Edison
Co.
of
New
York, Inc.
of
penditures are being financed by short-term loans, of
which $16,000,000 are now outstanding.
It is anticipated
gram
sey,
will be needed for the construction pro¬
the next four years. Probable bidders: Hal¬
Stuart & Co. Inc.; Morgan Stanley & Co.; First
Corp.
Consolidated
Lobster
Co., Inc.
Aug. 11 it was stated that company plans to offer addi¬
tional
capital stock (no par) for subscription by stock¬
At April 30, 1950 there were outstanding 34,393 shares out of 47,000 shares authorized.
holders.
Utilities Associates
Eastern
River Electric Light
Co. and Montaup Electric Co. and
will
$22,000,000
issue
sell
and
of
first
mortgage
and
collateral trust bonds and $8,500,000 of preferred stock.
El
Electric Co.,
Paso
El Paso, Tex.
July 19 it was announced company plans to refund $3,500,000 bank loans (notes approved Aug. 22 by FPC)
with
permanent financing prior to March 31, 1951,
their maturity date.
The last issue of debentures was
placed privately last September with the John Hancock
Mutual Life Insurance Co. Previous financing underwrit¬
ten by White, Weld & Co.
derwriter:
Paine, Webber Jackson & Curtis.
Long Island Lighting Co.
Aug. 29 company asked SEC authority to issue $20,000,000 first mortgage bonds, series
H, due Sept. 1, 1980,
and requested exemption from competitive
bidding, plan¬
ning to place the issue privately. Proceeds would be used
to repay
bank loans and to reimburse treasury for con¬
struction expenditures.
(P.)
Co.
4, Herbert A.
Kent, President, said: "It rosy b©
before Aug. 1, 1951 to
necessary to do some financing"
redeem $6,195,450 of 5% bonds
for
due
that
on
date
amdl
additional
working capital to meet expanded, sale*
volume.
He added that company plans to
pay off, It*
bank loans in full by July, 1950. These loans now
amount
to $12,000,000.
Traditional underwriters: Lehman Bra*
and Smith,
Barney & Co.
Louisville Gas &
Electric Co.
Aug. 29, SEC was notified that Standard Gas & Electric
Co. plans to sell its
holdings of 137,857 shares of com¬
mon stock (no
par) of Louisville Gas & Electric Co., and
use
the proceeds to retire
$2,250,000 of bank notes.
Probable
bidders:
Lehman Brothers and Blyth &
Co.,
(jointly); First Boston Corp.; Glore, Forgan & Co.
W.. C. Langley &> Co.
(jointly); Merrill^Lynch,
Pearse, Fenner & Beane, White, Weld & Co. and Union
Inc.
and
Securities Corp.
(jointly).
Loyal Automobile
Expected before end of 1950.
Insurance
Co.,
Los Angeles
Aug, 14 company applied to California State Insurance
Department for authority to issue a total of 100,000 shares
of capital stock (par $1), of which 50,000 shares are to
be offered to California
less
discount
10%
a
stockholders at $2.50 per share,
rights are exercised within 60
The remaining 50,000 shares are to be offered to
days.
bona fide California residents at $3 per share.
Macy
May 8 it
of
ance
(R. H.)
& Co.
reported that company is considering fara$10,000,000 of new securities, either-debenture*
was
preferred stock. Traditional underwriters
Brothers; Goldman, Sadhs & Co.
or
Market
—
l<ehman.
Basket, Los ;Angelesf Calif.
May 25 company announced it plans sale of 4,452 share*
of authorized but
unissued, preferred stock, series Ct
(par $15) and an additional 30,000 shares of preferred
Co.
stock,
Radio
&
Phonograph Corp.
Abrams, President, announced that
unissued 1,240,390 shares of capital
to acquire additional plant facilities if
29, Benjamin
company
stock
may
(par
needed.
use
$5)
Traditional underwriter: F. Eberstadt & Co.
Empire District Electric Co.
21 it was reported that early registration is ex¬
pected of $7,000,000 bonds and 50,000 shares of com¬
mon
stock.
Underwriter—Probably The First Boston
Aug.
Florida
June
Power &
stockholders
9
Light Co.
approved creation
of 50,000 shares
$4.50 cumulative preferred stock (par $100). These
shares are soon expected to be offered to finance part ©f
construction program which is expected to require ap¬
of
proximately $25,000,000 new capital through 1952.
Aug. 2 filed new application with FPC for authority to
construct a
335-mile pipeline system in Georgia and
Florida to cost about $5,100,000, which would be fi¬
nanced
through
issuance
sale
of
bonds
and
the
cation
was
withdrawn.
of
first
common
mortgage
stock.
pipe-line
Previous appli¬
Holeproof Hosiery Co.
June 22 it was announced
expected
and
not
that^ registration statement is
fo bb Tiled" Shortly 66venn'g not'1^ss than 23%
exceeding 33V3% of the stock held by principal
1
if
May 26 it was reported that between 47,000 and 48,000
shares of this company's common stock may be offered
some
time in the near futuer through F. Eberstadt &
,
4
stock.
Proceeds will be used to repay $1,300,000
bank loans, due in September,
1951, and the remaining
$300,000 will go to Central Telephone Co., parent, to re¬
pay temporary advances for construction. Probable un¬
over
Boston
Telephone Co.
$1,000,006
long-term bonds and not less than $600;000 additional
common
April
May 15, Ralph H. Tapscott, Chairman, said the company
will require approximately $90,000,000 of "new money''
through the sale of securities. No permanent financing is
contemplated before this fall, however, and current ex¬
Traditional underwriter: Stifel,
June 6, company announced that it has advised the Wis¬
consin P. S. Commission that it expects to sell
Lorillard
Consolidated
,
Telephone Co., Ltd.
package price of $2.25 for each
held.
Chenango & Unadilla Telephone Co.
July 17 company applied to New York P. S. Commission
for authority to issue $1,000,000 of mortgage bonds, $357,000 of preferred stock and $300,000 of common stock.
Underwriters—To be determined by competitive bidding.
Probable bidders:
new
Georgia Natural Gas Co., Albany, Ga.
July 31 it was rumored that a registration statement will
be filed covering $10,500,000 of preferred and common
Co.
shares
common
share and $1.75 of
Parsons & Co., Shields & Co., Blair, Rollins &
& Co. and Sterling Grace Co.
Fort Worth, Tex.
stock.
one new common
Corp.
American Investment Co. of Illinois
May 24 announced company is planning to file shortly
a registration statement covering 160,000 shares of prior
preferred stock (par $50). Price—To be filed by amend¬
ment. 1 Underwriters—Glore, Forgan & Co.; Kidder, Pea¬
&
unit of
income debentures for a
May
Co.
announced company
by competitive bidding.
Probable bidders:
Morgan
Stanley & Co.; Blyth & Co., Inc.; Union Securities Corp.
and Equitable Securities Corp.
(jointly); First Boston
Corp.' Proceeds—For construction program.
Anton
a
Emerson
has filed with the
SEC an application covering an issue of $10,000,000 pre¬
ferred stock (par $100). Underwriter—To be determined
1
stock
James
to
Co.
Alabama
Sept.
Sept. 7 it
common
•
except for approximately 4,600,000 shares held by Harri¬
son Williams and associates, would be offered the right
Elliott Co.
Prospective Offerings
for 1950.
bentures for
The
G.
26 company said to plan sale of first mortgage
bonds to finance part of its $3,200,000 construction
pro¬
Corp.
package price of $18.
A.
April
gram
a
—
financing will be necessary, he added.
This may he
done
through additional common or preferred stock
financing.
right
a
May 23 it was announced that under a plan filed with
the SEC a new company will be formed to acquire the
assets of Eastern, and of the Brockton Edison Co., Fall
(par $1). Price—35 cents per share. Underwriter—None
Proceeds—Exploration and development work. State¬
ment effective May 23.
•
reorganization it is proposed to issue to holders of all
buy
Underwriter
Houston Lighting & Power Co.
April 14, S. R. Bertron, President, estimated construction
expenditures for 1950 between $19,000,000 and $20,000,000.
This estimate may be raised to accommodate increased
power demands on the system.
If this is the case, more
unit consisting of eight shares of new common
stock and $14 principal amount of new 4%% income de¬
to
share).
Proceeds—To pay bank loans.
Underwriter—None.
amended plan
.
postponed
indefinitely.
Chicago, 111.
Iowa Southern
an
37
stockholders following proposed 71/£-for-l split
up. Stockholders meeting, scheduled for Aug. 16, was
Corp.
that $257,000,000
Disinfecting Co.
July 25 (letter of notification)
June
Electric
it was announced that under
1
debentures would be underwritten by Darien Corp. and
(9/11)
stockholders of record Sent. 12
common
expansion program.
States
classes of 6% preferred stock for each old share the
five
Aug. 2 filed 166,604 shares of common stock (no par) to
be offered to
of
through Mer¬
Proceeds are to be
Pierce, Fenner & Beane.
Central
Underwriters—To be determined by competitive bidding.
Probable
small group of insurance companies
a
rill Lynch,
Temporarily postponed.
Utah
(929)
(par $15)
to
be
authorized.
Further details not
available.
Michigan Bumper Corp., Grand Rapids, WUiich.
July 20 stockholders voted to increase authorized* com¬
stock
mon
(par $1) from 250,000 shares to 500,000 share*/
outstanding stock to have nc pre¬
emptive rights.
with holders of present
Michigan Consolidated Gas Co. ""
Aug. 7 it was announced company contemplates
per¬
manent
financing will be consummated before maturity
(Feb. 20, 1951) of proposed $25,000,000 bank loans which
will include, during 1950, $20,000,000 of first
mortgage
bonds and $6,000,000 of common stock, and the
sale, in
1951, of about $10,000,000 of preferred stock. Under¬
writers
for Bonds—To be determined
by competitive
bidding. Probable bidders: Halsey, Stuart & Go. Inc.;
White, Weld & Co. and Lehman Brothers (jointly);
Smith, Barney & Co. and Blyth & Co., Inc. (jointly). Pro¬
ceeds—To pay off short-term bank loans and for new
construction costs.
The additional
sold to American Natural Gas
Faii.
*
^
■1
stock will be
common
Co., parent.
Expected thi*
-
■
*
Michigan-Wisconsin Pipe Lipe Co.
July 25 company deceived SEC authority tq .borrow not
more than $20,000,000 from banks.
AJ permanent financ¬
ing program provides for the elimination bf these bank
loans prior to their maturity, July
1,1951,*^cl such
Continued
on
pro-
page
38
-
-
38
The Commercial and Financial Chronicle
(930)
Continued
from
•
37
page
of $12,000,000
additional bonds and $3,000,000 of additional common
stock. Previous debt financing was placed privately.
will include
gram
MidSouth
July
it
31
Gas
and
sale
Co.
that this newly organized
issue and sell publicly $2,800,000 of com¬
place privately with institutional investor*
announced
was
company may
mon
issuance
the
stock and
of 20-year 3%% first mortgage bonds, the
proceeds to be used in connection with the acquisition
of the gas distribution properties of Arkansas Power &
Light Co. Initially it is planned to sell $800,000 stock and
$1,500,000 of bonds. Underwriter for Stock—Equitable
Securities Corp., T. J. Raney & Sons and Womeldorff &
Lindsay.
$6,900,000
Ohio Edison Co.
Pipeline
of
$174,186,602.
requirements
in
for
majoi
of
being
process
writer:
$3,000,000
of
(American
common
Natural
stock
Gas
to
Co.
completed.
ot
increase
an
Co.
stated that following approval
was
500,000 shares,
authorized
the
in
Aug. 25
on
stock
common
Cruttenden
Panama
&
Probable
from
Co.
(Republic of)
bidders for bonds: Halsev. „„.,uart & Co. Inc.;
Aug. 18 it
gan
due 1996 would be issued through Lehman Brothers, the
to take
over
South
of first
ities.
3% bonds
new
approximately $15,000,000
outstand¬
are
expected to be placed with
•
United States to the Republic.
Pennsylvania RR.
(9/12)
Bids will be received by the company up to noon
(EDT)
Sept. 12 for the purchase from it of $10,005,000 addi¬
trust certificates, series Z, to mature
annually April 1, 1951 to April 1, 1965. Probable bidders:
on
tional equipment
of Utah
new
a
Philadelphia
underwritten
Mountain States Power Co.
stock
There
are
(par
by Drexel &
competitive,
negotiated
to increase the author¬
$50) from 75,000 to 150,000
presently
outstanding
72,993
Co.
preferred
and
Bond
stock
financing would
would
be
either
Aug. 9
1968;
(9/27)
issue
in
late
summer
,
has
50,000 shares of preferred stock.
Probable
(1) For bonds—halsey, Stuart & Co., Inc.;
for bonds and preferred: Harriman Ripley & Co.
Inc.; Lehman Brothers; Kidder, Peabody & Co.; First
financing,
for
including
bonds:
short-term
bank
loans.
was
Power Co.
reported that the
market probably this fall with
ers
preferred stock.
an
and
Riter
&
Co.
(jointly);
the
authorized
common
Inc.,
Manchester, Conn.
Barney
issue
was
reported that the company's original plan
between
cost
Public Service Co.
was
offered publicly as preferred and common stock
Dillon, Read & Co. Inc. underwriting. The proceeds
to pay for construction costs.
are
Toronto
(Ont.), Canada
would
go
toward
construction
program.
was announced
stock
sale
subway.
issue
to
The proposal
pro¬
vides for borrowing at an average interest rate of 2.84%.
The new debentures were placed
privately last week
with
institutional
headed
by
investors
Dominion
through a
Securities Corp.
banking
and
group
Harriman
July 25 filed with FPC for authority to build 1,130 miles
of new lines in Texas, Louisiana and Mississippi at a
cost of about $110,000,000, including new facilities.
It is
probable that the bulk of this new capital will be raised
through the public sale of new securities.
Utah
Natural
was
Gas Co.
announced company plans to build a 325-
22-inch
pipe line in Utah to cost approximately
Hearings will be held before the Utah
S. Commission in August or September, after a study
the project.
of
Valley Gas Pipe Line Co., Inc., Houston, Tex.
sought FPC authorization to construct
$144,500,000 pipeline project to carry natural gas from
June 27 company
Gulf
Coast
and
off-shore
fields
the
highest bidder by the Office of Alien
Probable bidders: A. G. Becker & Co. (Inc.),
Union Securities Corp. and
Ladenburg, Thalmann & Co.
(jointly); Merrill Lynch, Pierce, Fenner & Beane; Kidder, Peabody & Co.; F. Eberstadt & Co.; Allen & Co.;
new company to be formed
bY. United States & Inter¬
national Securities Corp.;
Dillon, Read & Co.; F. S. Mose¬
ley & Co.; Riter & Co.
in
Louisiana
and
Texas to markets in Indiana, Ohio and Michigan.
Com¬
pany is now in process of completing negotiations for
its major financing requirements.
Vanadium Corp. of America
21
company
announced
tiations
being carried
(10/4)
plans
$5,000,000 of convertible debentures.
to
offer publicly
Underwriting nego¬
with Kidder, Peabody & Co.
Proceeds will be used for modernization and expansion
of the company's properties.
Expected beginning of
are
on
October.
Warner-Hudnut, Inc.
20
taken
change
&
in
company's
Co., Inc.
was
name
from
approved, but
no
William
action
R.
was
on
proposed recapitalization plan, due to market
conditions. It is planned to file a registration with the
SEC
covering the
sale of approximately 325,000 shares
(par $1) to the pub¬
nation-wide group of underwriters headed
by F. Eberstadt & Co., Inc.
■
;
of the proposed new common stock
lic
through
a
h
Brothers
Property.
& Co.-
to
bidders:
with
Warner
that the company's entire com¬
(440,000 shares) was expected to be
registered with the SEC in the near future and offered
offering of $17,500,000
Smith,
estimated
be
to
Aug.
Diego Gas & Electric Co.
May 4, it
(Minn.)
Proceeds would be used for new construction.
is
Probable
during the fiscal year beginning Sept. 1, 1950. This may
include bonds to be placed privately and the balance
the
increased
Reynolds & Co.
mon
company will be in the
Probable bidders: Lehman Broth¬
which
1950-1951.
certificates,
Sobering Corp.
.
new
trust
near
1,500,000 to 2,500,000 shares. The corporation
intention of issuing any of the additional shares
Traditional underwriters: Lehman Brothers
no
ceeds
reported that the company is to issue and
not exceeding 40,000 shares of common
Northern States
equipment
in
are: Blyth
& Co., Inc.;
and Bear, Stearns & Co.
(jointly);
Corp.;-White, Weld & Co. and Shields &
Co. ^(jointly); Merrill Lynch, Pierce, Fenner &
Beane;
Union Securities Corp.; Salomon Bros. & Hutzler. Pro¬
for
July 29 it,
perma¬
a
announced by Herbert L. Nichols, Chair¬
man, that the company expects to raise between $17,500,000 and $18,000,000 through the sale of securities
Western
First Boston
publicly
stock (par $10).
Probable underwriter: Glore, Forgan
& Co., New York. The proceeds are to be used for car
rebuilding program.
*-
of
may
Reynolds Metals Co.
Lehman
North American Car Corp.
was
issue
an
company
competitive, probable bidders
Halsey, Stuart & Co. Inc.;
Loeb & Co.
sell
on
increased from
program
for
Southwestern
Aug. 1 it
P.
that
late in
Morgan Stanley & Co.; The First Boston Corp.; Kuhn,
Aug. 15 it
$15,000,000
$8,000,000 and $10,000,000 of bonds
September or early October may be changed to
preferred stock, depending upon market conditions. If
negotiated, Blyth & Co., Inc. may handle financing. If
Corp.
Jan. 19 announced that construction program will neces¬
sitate in 1950 not more than $25,000,000 of additional debt
equity
been
$25,000,000.
reported
was
sell
July 31 it
to
Probable bidders
it
31
San
preferred:—W. C. Langley & Co.
Power
Corp.
Halsey,
Stuart & Co. Inc.; Blyth & Co., Inc. and
Kidder, Peabody
&
Co.
(jointly); First Boston Corp.
July
Boston^Corp.; Merrill Lynch, Pierce, Fenner & Beane;
or
and
July 20 company was reported to be negotiating with a
group of underwriters for a public stock offering of
about $150,000 of additional capital stock at
$1 or $2
per share. There are presently outstanding 1,381 shares
of stock, which are
closely held.
$10,000,000
(2)
Mohawk
1970
Corp.
Roosevelt Mills,
and
Niagara
due
stock from
bidders:
for
Petroleum
reported proposed financing
was
construction
mile
and
fall
secur¬
temporary bank borrowings of up to $20,000,000 to mature July 1, 1951, the proceeds to be used
Boston
Aug. 9 stockholders
r
early
applica¬
line in
pipe
SEC approved
at this time.
or
miles
$10,0u0,000 to $24,000,000 first mortgage bonds, although company may
decide to take this in two pieces, viz:
$10,000,000 to $12,000,000 initially and the balance later on. On June 21
a
April 24 it was estimated that about $37,000,000 new
financing will be required to' pay ? construction costi
estimated at $40,000,000 for 1950 to 1952. Present plant
to
bonds
Probable bidders: Halsey, Stuart &
Co., Inc.;
Salomon Bros. & Hutzler;
Harris, Hall & Co. (Inc.).
struction expenditures, while proceeds from sale of notes
will repay a like amount of bank loans.
bonds
3%
series T.
taking any unsubscribed shares. Proceeds from stock sale
will reimburse Plant Replacement Fund Assets for con¬
are
California
basis has
June 5 it
future
stockholders at $67.50 per share,
with New England Gas and Electric Association, parent,
^
an amended
526.9
Southern Natural Gas Co.
Halsey Stuart & Co.
Inc.; Morgan Stanley & Co. and Drexel & Co. (jointly);
Kuhn, Loeb & Co. and Lehman Brothers (jointly); First
July
common
Power Co.
a
Probable bidders:
Reading Co.
Harriman Ripley & Co., Inc.; First Boston Corp.; Whiting,
Weeks & Stubbs. The common stock is to be offered for
New England
$15,000,000
bonds due 1972.
company
subscription by
First
United Gas Pipe Line Co.
April 17 stockholders approved the issuance of $90,000,000 new bonds for the purpose of refunding $50,000000 3y8% bonds due
1965; $10,000,000 3y4% bonds due
shares.
applied to SEC for authority to issue
and sell 10,631 additional shares of common stock (par
$25) and $3,750,000 of 25-year notes, series B, due 1975,
the latter at competitive bidding, with probable bidders
including Halsey, Stuart & Co. Inc.; Coffin & Burr and
F. S. Moseley & Co. (jointly); Kidder, Peabody & Co.;
*'
The
Ripley & Co., Inc.
competitive.
or
Public Service Electric & Gas Co.
Probable underwriter: Merrill Lynch, Pierce, Fenner &
Beane.
New Bedford Gas & Edison Light Co.
Inc.;
mortgage bonds and the issuance of junior
July 31 it
nent
Pacific
RR.
•
f.
it.
July 17 it was reported company plans issuance and sale
of $22,000,000 mortgage bonds. Probable bidders: Hal¬
sey, Stuart & Co. Inc.; Blyth & Co., Inc.; Lehman Bro¬
thers and
Bear, Stearns & Co. (jointly); Union Securities
Corp. and Glore, Forgan & Co. (jointly). Proceeds—To
retire first mortgage 4% bonds and convertible income
4y2% ihonds due 2014, and over $5,000,000 "new money."
Expected
about
middle of November.
Wilcox-Gay-Majestic Corp.
July 14 it
was announced that in connection with acqui¬
Wilcox-Gay Corp. of Garod Radio Corp. and
Majestic Radio & Television, Inc., Wilcox-Gay-Majestic
Corp.; the new company plans public offering of 500,000
sition by
shares
hart
•
-
of
common
Kinnard
&
stock
Otis.
Expected in October.
(par $1).
,
(jointly); Kidder,.
Woodward, President, announced that
stockholders should be given the opportunity of subscrib¬
ing for additional capital stock, the proceeds to be used
to develop the company's Cuyama
Valley holdings. The
offering would be underwritten.
May 17 the stockholders voted
preferred
build
to
for construction of Toronto's
Electric Co.
May 5 it was said that there will be additional financing
later this year, with probably some common stock to be
be
ized
Co.
Corp.
United States of $15,000,000 debentures to provide funds
its exploration and development of natural
and oil operations. It will be financed, in part,
through public sale by the new unit of 1,000,000 shares of
capital stock (par $81. Fin^nHn? plan submitted by First
Boston Corp. Expected this Fall.
gas
shares.
&
Brothers
July 25 the Board of Control authorized the sale in the
Hutzler.
firm
Stuart
Lehman
Union Securities
Probable underwriter: Courts & Co.
Southern
a
of institutional investors, and are to be se¬
the $430,000 annuity annually paid by the
by
Halsey,
and
authority
a
are
$3,000,000
Sept,. 1, Tyler F.
Halsey, Stuart & Co. Inc.; Harriman Ripley & Co., Inc.
and
Lehman
Brothers
(jointly); Salomon
Bros.
&
plans to create
for
which
3% bonds
company i
$3,000,000 of
Georgia Natural Gas Co., Atlanta, Ga.
$32,520,000
Underwriters—To be determined by competitive bidding.
Probable bidders for bonds: Halsey, Stuart & Co. Inc.;
Mountain Fuel Supply Co.
•
the
cured
Blyth & Co., Inc.; Union Securities Corp.; Merrill Lynch,
Pierce, Fenner & Beane; Smith, Barney & Co.; First
Boston Corp.; Lehman Brothers.
Proceeds—For expan¬
sion and extension of gas and electric properties.
bonds:
Corp.
Peabody & Co.;
small group
company
June 6 company announced
Boston
retire
new
the
cumulative preferred stock, par $50), the pro¬
construction program.
Probable bid¬
proceeds,
total of
year
finance
to
tor
for
ing. The
plans to sell in 1950
and
1951 approximately $22,000,000 of new securities,
with $10,000,000 of debentures
expected in October.
reported
was
reported that $10,500,000 of
together with treasury bunds, to be used to
3lk% bonds, series A, due 1994, and 3V2%
bonds, series B, due 1967, and 5% bonds due 1963, of
Montana Power Co.
Aug. 22 it
was
to
4.60%
ders
par
owns
Glore, For& Co., and Lehman Brothers (jointly); Kidder, Peabody & Co.; Harriman Ripiay & Co.; Smith, Barney &
Co., Kuhn, Loeb & Co. ar.d Blyth & Co., Inc. (jointly).
Registration expected mid-September.
Co.
said
bonds (in addition to private placement of
ceeds
,
Packard-Bell
Aug. 2 it
common
now
Gas
Georgia and Florida which, it is estimated, will cost be¬
tween $10,500,000 and $12,080,000 to be financed
by sale
publicly
and
of
Corp.
Negotiations
now
are
S.
17,
expects
new
about Oct. 11.
Northwest
cost
a
financing
97.7% of presently outstanding common stock.)
^
or
$1, to 1,200,000 shares, par 50 cents,
to be followed by a two-for-one split-up, the company
may issue additional common stock for the purpose of
raising additional working capital. Traditional under¬
stockholders.
&
tion
on
Aug.
June 30 company sought FPC authority to build a 2,175
mile pipeline system—from southern Texas to Washing¬
company
Electric
C. McMeekin, President,
issue and sell later this
be received
Pacific
Light Co.
Carolina
Thursday, September 7, 1950
.
Aug. 23 company applied with FPC
applied to SEC for authority to issue
$3,500,000 promissory notes to banks to mature April 27,
1951, the proceeds to be used for construction purposes.
The permanent financing program is expected to be con¬
summated prior to October, 1950 and will involve the re¬
financing of $13,334,000 first mortgage 4%% bonds due
1967, $2,000,000 of 7% preferred stock and bank loans
(about $8,500,000) through the issuance of $27,000,000 of
bonds, and $6,000,000 of preferred stock (to be offered
Aug. 22
„
South
.
Sept. 1 it was announced company plans to issue and sell
396,571 shares of common stock (par $8) for subscription
to common stockholders of record Oct. 11, 1950 on basis
of one share for each 10 shares held, with an oversub¬
scription privilege; rights expiring on Oct. 30, 1950. SEC
approval was sought on Sept. 5. Price—To be later deter¬
mined by company. Underwriters—To be determined by
competitive bidding. Probable bidders may include Tne
First Boston Corp. and associates.
Proceeds—For con¬
struction program and to increase investment in common
stock of Pennsylvania Power Co., a subsidiary. Bids—To
ton—at
Gas
Milwaukee
(10/11)
.
Underwriter—Gear-
Proceeds—For
working
capital.
Volume
Number 4940
172
.
.
The Commercial and Financial Chronicle
.
ferred
..stock
has
and
called
on
Morgan Stanley Offers
bidders to meet with:
today for final brief¬
registration data.
prospective
officials
its
ing
on
(931)
Plantation Pipe Line
Municipals Quiet Down
the
For
moment
least
at
The underwriting industry gives
indication
of
ring with the first real corporate
offering in weeks due on the mar¬
ket
today in the form of Planta¬
tion Pipe Line Co.'s $40,000,000 of
20-year sinking fund debentures.
Aside
from
Government
the
big
dollar
Canadian
issue
bond
brought out recently, which inci¬
dentally
August
found
was
vestment
ready
bankers
this
section
market is
relatively light for next
20-year 2%% sinking fund deben¬
tures due 1970 at 99%% and ac¬
week.
Tnere is
of
assurance
issues, but
really sizable deal ap¬
pears in the list, that a housing
offering.
only
Commonwealth
The
issue of
Sept.
of
Massa¬
consider bids for
will
an
$10,109,000 for housing on
The next largest offer¬
$6,625,000 of Washington
Sanitation
Suburban District
to
forget.
Oliver
in
those
of
utility
public
companies
quite neglected. The
rising
Dec.
be
W. C. Turner Opens
LOS
ANGELES,
Kintberly Is
nal
program
31, 1952 the debentures
redeemed
A
in
whole
by
popularity
been
answer
to the
good rail
of
offices
from
sizable
in
DIVIDEND NOTICES
by maturity.
THE TEXAS COMPANY
192ncL
LOEWS INCORPORATED
MGM
PICTURES
THEATRES
-
MGM
•
Consecutive Dividend
RECORDS
September 6, / >56
The Board of Directors lias declared
quarterly dividend of 37J^c per
share on tl!e outstanding Common
Stock of the Company, payable on
ex-
September 30, 1950, to stockholders of record
the close of
business
September 15,
on
at
1950
AMERICAN
METER
dividend of
A
Vice Pres. b° Treasurer
COMPANY
able
ord
tlement
market
the
the
of
But
had
now
government
mar¬
that the shooting in
it develops that long Treas¬
uries
are
just
little off the levels
a
prevailing before the upset.
Two
The
Current
Plantation
The
**
been
Capital
the Company,
pay¬
L.
September
BLUME,
5,
rec¬
1950.
Secretary.
with
the
difference
an
to
a
Oliver
was
Co.,
which
a
yield
around
to
2.80%.
of
somewhere
will
Proceeds
construction
finance
be
of
a
major pipe line.
Meanwhile,
those
ning Co.
on
This stock is being sold
will receive the proceeds less sell¬
ing commissions.
SAN
JOSE,
and
Wilson,
Calif.
—
Johnson
With Walter C.
Bernard:
cisco.
a
Babbitt, Inc. has declared
many
years
he
of business
with
First Avenue.
He
120
was
notes and for expansion.
Virginia Electric & Power Co. is
due to take up bids the following
day for $20,000,000 of bonds while
on the same
day bankers will be
competing
for
$10,005,000
of
equipment trust certificates being
marketed
by
the, Pennsylvania
INDUSTRIAL LOAN
CORPORATION
f
CITY, Mo.
—
Thomas
CUMULATIVE
for
opening
new
$50
is
closing
its
Association
to
present
bids
for
par pre¬
Bank,
creditors
therefore
hereby
claims
for
payment
at said Bank.
are
P.
<
,
I.
PREFERRED
$.81%
share, for the period July 1,
on
was
de¬
the $3.50 Cumulative First
Electric
Penn
August
18.
1950.
a
1950, to stockholders of
September 30,
record
the
at
tember 15,
of business
close of business on Sep¬
1950.
H. D.
McDowell, Secretary
September 11, 1950.
New
York, N. Y., September 1, 1950
SEBBORRD
F
I
A N C
N
per
CANADA DRY
share
COMPANY
E
COMMON STOCK DIVIDEND
:
DIVIDEND NOTICE
I:
62nd Consecutive Quarterly Payment
The Board of Directors of Can¬
W
per
share and in addition
an
The
Extra
Dividend
$.12'A
per
dividends
are
tember
30,
record
of
share
payable Sep'
September 15, 1950.
1950
'
the
the
475 OFFICES
ROBERTS.
.n u. s.
and canada
dividend of, 45 cents
Stock
$1,0625 per share on the $4.25
holders of record
Preferred
Stock;
share and
an
extra
dividend of
$0.10 per share on the Common
Stock;
all
payable
October
the close of business
on
1,
Septem¬
15, 1950. Transfer books will
be
closed.
Checks
will
be
mailed.
„j,|.
,
regular quarterly
on Common
share
payable October 10,1950 to stock¬
September 21, 1950.
PREFERRED STOCK DIVIDENDS
The directors also declared regular
quarterly dividends of 65 cents a share
on $2.60 Convertible Preferred Stock,
33%
v'f
V. Pres. & Secretary
cents a
share
on
$1.35 Convertible
Preferred Stock, and 33% cents a share
on
$1.35 Convertible Preferred Stock,
Series
Wm. J. Williams,
a
a
a
quarterly dividend of $0.20 per
not
OVER
August 22, 1950 declared the
Finance Co. declared
regular quarterly dividend of
ber
notified
to
meeting thereof held
a
1950 to stockholders of record at
Philip Kapinas
September 1.
on
The Board of Directors of Seaboard
l)ry Ginger Ate, Incorpo¬
rated, at
Cumulative
1950 to stockholders
at
close of business
located
of
ada
Quarterly Dividend of $.37 Vi
B.
All
preferred dividends, are
payable October 10, 1950 to stock¬
holders of"Pecord: September 21, 1950.
Liquidating Agent
Dated
Company has declared
quarterly dividend on the Common Stock
of the Company in the amount of fortyfive cents (45<f) per share, payable on
2,u
Stock, payable October
STOCK
COMMON STOCK
;
NOTICE
National
All
87 x/i
1950, to holders of record at the close
(for quarterly period ending
September 30, 1950)
the State of Connecticut;
affairs.
dividend of
September 30, 1950,
Preferred
r
of
in
clared
a
DIVIDEND
of Directors of The West
$3.25 Dividend Series of 1946
the Midwest Stock Exchange.
Thomaston
today,
declared by
the Board of Directors as follows:
enport Bank Building, members of
The
COMMON
meeting of the Board of Direc¬
held
(
s
on
Dividends have been
With Quail & Co.
(Special to The Financial Chronicle)
at Thomaston.
Company
(INCORPORATED)
Dividend
ERNEST B. GORIN, Treasurer
(Special to The Financial Chronicle)
LIQUIDATION
est
Electric
AMERICA
Firs! Preferred Stock
BENEFICIAL
previously
With Waddell & Reed
undersigned
t
Duquesne Light Co. has set the
OF
The Board
Northeast
Ausdal is with Quail & Co., Dav¬
date
September 20, 1950.
1950 to
Proceeds will be applied to liqui¬
150,000 shares of
on
CORPORATION
September 6, 1950
F.
T
W
RADIO
I
with Reynolds & Co.
KANSAS
a
October 2,1950 to
DIVIDEND NOTICE
dation of $35,000,000 in short-term
..j
on
cents per
Daniel
15,
share, payable September
1950, to shareholders of
LEO W. GEISMAR, Treasurer.
has
DAVENPORT. Iowa—Robert B.
Railroad Co.
payable
Rice Adds
Company,
September
TISHMAN/ President
NORMAN
FIIIMU
THE T"T
At the
affiliated
&
HOW/ADD^
the Common Stock of the Com¬
pany,
Co.
business
1950.
September 15, 1950.
24 Federal Street, Boston
regular
stockholders of record at the close
MIAMI, Fla.—Charles S. Goldy"
Monday
due
a
T.
(Special to The Financial Chronicle)
first mort¬
bonds
25,
B.
of
tors
now
holders of record at the close
of
quarterly dividend of 30c per share
Gorey
1970.
line
Directors
of
Gorey Co. of San Fran¬
For
Daniel
Rice
25,
record at the clo^e of business
Board
The
in Santa Rosa.
is
a
Trustees have declared
de¬
a
dividend of fifteen cents ($.15)
QUARTERLY DIVIDEND
SANTA ROSA, Calif.—William |
Berger has become affiliated with';
Tennessee Gas Transmission Co.
pipe
CONSECUTIVE
87th
;
(Special to The Financial Chronicle)
Walter C.
of
STOCK
Higgins.*"
&
FUND
declared a
twenty-five cents
The Trustees have
EATON &
Baltimore Avenue.
new
BALANCED
share, payable Sep¬
1950, to share¬
of
business September 15, 1950.
24 Federal Street, Boston
variety.
of
EATON & HOWARD
1950.
Secretary.
($.25)
corporate business, R. Legan has become connected
for underwriters, but all four is¬
with Waddell & Reed,
Inc., 1012
sues on tap are of the competitive
on
15,
BARNES,
tember
new
bids
K.
Directors
quarterly dividend
of thirty-five cents (35$) per
share on the Capital Stock
of this corporation, payable
September 25, 1950, to stocks
holders of record at the close
on
,
open
clared
dividend
Co., First National*
Bank Building. He was formerly
with Bacon & Co., Davies & Mejia
Week's. Calendar
for $40,000,000
Septembsr
business
of
close
of
Board
The
September 30,
INC.
NOTICE
DIVIDEND
President.
1950.
Irving Lee &
something
unfdreseen
happens to alter current schedules
next
week promises to develop
is slated to
6,
CONSTRUCTION CO.
LEWISOHN,
declared
1950, payable
October 16, 1950, to stockholders of record at
ending
STUART
Casebolt has joined the staff of H.
Unless
substantial
day
A.
the Capital Stock of
on
the quarter
the
this
TISKMAN REALTY &
will not close.
dividend of Three Dollars ($3.) per
this Company for
quarterly
share
September
has
The
Detin-
for the Continental Can Co. which
Next
company
SAM
Irving Lee Co.
represented Conrad, Bruce &
interested in
Vulcan
the
Casebolt Joins Staff
large secondary offering tomorrow
the shape of 120,000 shares of
of
(50c) cents per
payable Sep¬
tember 28, 1950, to stockholders of
record at the close of business Sep¬
tember 15, 1950. The transfer books
share has been declared,
Exchange, in their trading
department.
in
stock
formerly
Ill
opportunties were slated to
chance to subscribe for a
common
dividend of fifty
A
Stock
a
bring the
would
Kimberly,
York,
of Directors
Board
Broadway, New York
City, members of the New York
The
inclined to look for
tag
buyer
A.
be
raised by way of bank loans.
Street
The
Treasurer
August 4, 1950
September 5, 1950
Cents
has
to stockholders of
business
books
will remain open.
Broadway, New York 6, N. Y.
(Special to The Financial Chronicle)
overall operation to raise $52,000,-
same
1950,
of
Fifty
the
on
(»1
1950.
Co.'s
part^of
is
Kimberly
with J. K. Rice, Jr. & Co., is now
associated with Starkweather &
Offerings
Pipe Line
$40,000,000
A.
of H.
due out today are be¬
ing brought to market via the ne¬
gotiated route and are expected to
encounter a good reception.
gage
close
New
debentures
a
the
31.
of
to
over,
stock
September 15,
at
of
of
share
per
MIAMI COPPER COMPANY
STREET
GUARANTY TRUST COMPANY OF NEW YORK
Oliver
that direction appears pretty well
new
dividend
S.
major groupings.
Treasury-Federal
Reserve
im¬
broglio and the consequent unset-
used
August
($.50)
at prices that
yield favorable by com¬
with those ruling in the
Meanwhile
price
42ND
York.
rather
withstand the effects of the latest
000
EAST
volume and
parison
ket.
60
declared
September
1950. The stock transfer
1,
Robert Fisher
New
A
($1.00)
on
Incorporated
is¬
dollar
one
the Capital Stock of
the Company has been declared
this day, payable on October 2,
1950, to stockholders of record at
share
per
the close of business on
Checks will be mailed.
CHARLES C. MOSKOWITZ
make the
other two
216V2
may
a
DIVIDEND NOTICES
Stock
buyers
at
in part
or
DIVIDEND NOTICES
estimated at approx¬
now
The proposed new line will
Such bonds have been available
prospective
C.
sinking fund starting March
imately $52,000,000.
and
have
Calif.—W.
Turner is engaging in a securities
time to and including Dec.
31, 1951 at 100%%.
tankage and termi¬
facilities, the total cost of
is not hard to find.
sues
get
per
South Hoover Street.
and incidental
obligations
railroad
grade
industrial
,
$100
par
good business going through
while
.
value
com¬
value; stated
share.
no
business
18-inch and 275 miles 14-inch pipe
parallel to the company's present
main pipeline, with pump stations
Dis¬
was
top
to
127,500 shares of
and
stock of
mon
purpose
the latter direction there has
been
notes
tion of its expansion
of the bonds
purposes, the primary
being the construction of
pipeline comprising 432 miles of
Upon completion of this financ¬
ing there will be outstanding, in
addition to the $40,000,000 of de¬
bentures, $12,000,000 of 2%% bank
products will prevent the comple¬
1, 1958 is calculated to redeem all
fairly active and to
trading in the seasoned market.
In
103% and thereafter at prices
decreasing to 100% if redeemed
after Sept. 1, 1967. If the directors
of the company determine that the
effect of any U. S. Government
regulations affecting steel or steel
corporate
tivity has been pretty much lim¬
ited
to
the
municipal
market
which
redeem¬
with other cash funds for
general
a
With Starkweather
the way of new financing and ac¬
are
including Sept. 1, 1954
at any
which is
little in
seen
debentures
new
the proceeds of
$12,000,000 of bank
loans will be added to the general
funds of the company and used
14.
is
ing
The proceeds from the sale and
one
chusetts
to
yield approxi¬
mately 2.766% to maturity.
number of smaller
tial
interest
crued
substan¬
a
60
and
firms are offering to
public today (Sept. 7) $40,000,000 Plantation Pipe Line Co.
.
the
of
Co.
Ue
The
in
Stanley &
investment
out¬
in¬
ready
are
Recent weeks have
steady
weeks.
Morgan
placement, trict, Md.
month that the
a
its
recent
calendar
getting down to the
business of shaking off the grip of
summer dullness.
Things are stir¬
after
of
pouring
The
able to and
at
municipal market for new issues
appears
destined
to
take
a
"breather"
Rouge, Louisiana,
through
Birmingham,
Alabama
and Atlanta, Georgia to Charlotte,
North Carolina.
23/4% Debentures
the
tend from Baton
39
.
August
A. E. WEIDMAN
ri
24f 1950
:
Treasurer-
*■
40
Chronicle
The Commercial and Financial
(932)
.
.
He
BUSINESS BUZZ
Thursday, September 7, 1950
.
actually
$
the
Chairman
the
J.
to
Lawton,
Budget, respecting
to
the
civilian
ex¬
mandate
$550,000,000
President
Com¬
Appropriations
Frederick
to
Director of the
M"U
xllIU
Capital
frm tbo Nation's
latter sent by
Cannon
of
Clarence
House
mittee
|
by the press was
unprecedented
the
A y+fl
ft
ft
noticed
Little
on...
Behind-the-Scene Interpretation*
normal
in
believes
values.
reduce
penditures.
C.~It is
likely that,
D.
WASHINGTON,
here as entirely
seen
enactment of the new
bill, there will be no
sweeping actions affecting the dis¬
tribution or use of the basic in¬
dustrial raw materials, such as
steel, copper, and building ma¬
terials, for perhaps a good many
despite
controls
rule
not
This -does
.
out,
such action in the near
respecting some of
the
-course,
future
The
metals.
tighter
smaller,
much
Then
have
$550,000,000
not
what it
why
industry observers
here do not book for any sweeping
piece, to suit the
with
get
and
another
one
not
some
the logic of
to be
allocations or priorities on basic circumstances and likely
materials for a good many weeks followed by a man of Sawyer's
is simply the fact that the govern¬ temperament—if he has his way.
of what its defense program
idea
in terms of tonnages
amounts to
of
the shadow of an
has only
ment
materials,
raw
be
will
materials
There is
needed.
talk, however, of
some
priorities
giving
to
defense
for
orders
when these
or
accompany
supporting
or
companies
merely to protect steel
in case the latter have
later
to
actual
The
contracts.
private
result
existing
as a
under
renege
diversion of steel, however,
civilian consumption will
from
not be¬
One of the poorest
here
in
that
is
kept secrets
and in
of the civilian parts of the
Administration, there is extreme
irritation at the utterly embryonic
stage of the planning
which went
appropriations to step
•behind the
Old-time
military production.
up
Congress said they
seen a time when
the
in
observers
had
never
military officials knew less what
bil¬
they proposed to spend their
lions for.
It
is
were
public
some
crude
what
of
break-downs
the
in
that
there
hearings
would
be
ammunition, aircraft,
ships, and so on. However, under
questioning by committee mem¬
for
spent
military
simply showed
that they had not
translated their
the
bers
billions into concrete procurement
plans, and then the
hearings would
off the record.
go
work
So the first
job of Charles Saw¬
If
Secretary of Commerce/will
be to try to wheedle the military
Into getting out of their jet-pro¬
pelled, high
altitude states of
mind, and back to down-to-earth
yer,
planning.
,,
It is understood that
Sawyer i,^
through
deflation via the bank¬
ing system whilst the Administra¬
tion is pouring
gasoline on the
fires of inflation, an interesting
time is likely to be had by all.
"Fed" can, of course,
The
raise
to
two
requirements
reserve
points more on demand de¬
four
point on time de¬
posits without asking anybody's
say-so. Best guess is that if they
told Harry Truman about it, the
President just might not like it.
and
a
hand, the Open
Market Committee threat that, if
the
On
other
additional
the
do
not
requirements
trick, additional
reserve
could be got from Con¬
gress, is at this stage considered
to be a little on
the optimistic
powers
side.
will
There
unless
act
session
and
happening
no
is
there
so
so
be
Congress
a
special
things
many
century
a
are
next January
fast,
speak,
to
so
The
the
away.
oft-printed prediction that
current
between the
dispute
Board
Reserve
and
the Treasury
will have to be trotted
to the
over
gets the nod t<j,;op^
White House for settlement soon,
erate the controls on the chief
is
discounted here in informed
metals and
materials, to get a
quarters. The Treasury will have
requirements committee ap¬ to
engage in no- deficit-financing
pointed. This requirements com¬
beyond the weekly bill issues be¬
mittee will attempt to browbeat
fore January. The question of in¬
the military into telling behind
terest
rates need not be raised
closed doors what they want. Then
if he
tends,
the technicians will translate these
procurement goals into tons of
steel, copper,,§t al., and then in
be to try to
work out with the military the
time scheduling of this procure¬
the
turn
will
job
until
ment.
In
the meantime, however, it is
will
to
have
put through
inventory
gun
form
of
The
more
the
a
shot¬
control.
government
talks
shortages and allocations but fails
to
come
the
more
gravated
up
with
orderly
plans,
is the basic situation ag¬
by
industry
trying
to
hedge against the great unknown
of bureaucratic planning.
So
the
first
thing, which
will be
a
may
crude
be fairly
soon,
affair, aimed sim¬
ply at stalling off inventory
ac¬
January
come
up.
its 90-day money.
apparent
the spot.
put Congress
or
If
you
in
a
the
old
idea
of
altogether academic. An
a variation of the
proposal to farm organizations in
attempt to sell
retail
of
sort
a
do, boy, your tail
He
on
the
margin
upward
between
Gov.
in
headlines
the
millions
and
of
the
With
this
have
an
him
applied gainst
asset
the
official
This
the
fellers
to
go
inflated
at
normal
bad
prices
thing. Over
farm
has
"normal
a
20-
to
farms
above
their
a
real
this is
he
30-year earning
value.
little of
for
that
will
from
be
back
making it hard for
their
make
money
the
on
flation,
nothing
Home
with
money
who
farms
on
those
who
make
sion
costs
are
says
going
to
normal,
it
ratio
95
of
to
now
and postwar
look
forward
for
years
Gov. Duggan, farm
out of propor¬
income,
a
fact readily
doorsteps
consider
so
Instead
up
HA. 2-8780
1-1397
For
Large Appreciation Potential
WE SUGGEST
but
-
to
fur¬
a
permis¬
for
values
present
of
ta
100
get
RIVERSIDE CEMENT CO.
CLASS B (Nmima) STOCK
in¬
A
leading producer of cement
in
fast-growing
Analysis of this Company and
a
review of the Cement Indus¬
try available on request.
Selling about
of asking,
bureaucrats,
back
on
the
do 99
as
for
a
1
out
gravy
train,
Duggan sticks by
his
$8.50
LERNER & CO.
chance
Investment
Securities
10 Post Office Square. Boston i
Tel.
Gov.
Southern
California.
he could get his foot
back in the door.
their farms.
Besides,
Teletype N. Y.
the street is
war
can
gressional
their
in the cities and spend
Exchange PI., N. Y. 5
Administra¬
eclipse. The typical bureau¬
crat would be pounding on Con¬
and spend it in the cities to com¬
pete
1919
ESTABLISHED
40
of collateral.
during the
on
prices
guys
M. S. WlEN & Co.
to
ther
are
Scophony-Baird Ltd.
power.
across
loan
a
Employees Insur.
Cinema Television B
day
one
Obviously the FCA, after being
reduced to a minor lending job
power.
He believes that these high
with
Corp. of America
Government
by
long-time
assumes
Farmers
Finishing
Equipment Corp.
a
says,
based
coincide with
views.)
own
pecu¬
a
tion, also limited to normal values,
long period of
estate,
value,"
Video
postwar inflation of
purchasing
100%
re-
Admin¬
Credit
allows
dollar
farm
but
hired-
land only to 60%
or
and
war
the
evaporate
says
U. S.
Television
would
consideration
Duggan is
on
Figuratively
acquire
to
as
won't
He
years,
its
so
that
inflation.
buy
and
lend
formula
1938
city
the
of
will
demands
Presidential
"Chronicle's"
the
they
both real estate and income
worried
deeply
out
values,
something
with
is
tendency
Farm
"normal"
the
any
Trad Television
serious
farming. It
only, farm real estate.
over
when
proposal
this
that Gov.
can
the
kind of capital
one
outside
of
to .be
special capital gains tax
no
This
Lawton
to
and may or may not
prices.
receive
law
letter Mr.
answer
a
its
the White House.
was
as
letter
the
Lawton,
fleet the "behind the scene" inter¬
pretation from the nation's Capital
afford to, even at
can
liar breed of bureaucrat. FCA
day,
Mr.
to
hand, to just play with the books.
istration, it does shed light on the
it. He admitted that in fact it was
a
they
fact
thinking about
were
target
from expanding
or
establishments
think
Although
calling this an
"excess profits tax" was perhaps
just accidental, since at the time
he publicly advocated this scheme,
an
excess profits tax on business
was
profit,
their
inflated
Duggan's
although
written
prohibited from making an
honest
in price
any sales
made in less
than one year, 80% on sales made
in less than two years, and so on.
on
be
to
proposed
will be
crack."
want
1943 fell flat. Farmers don't
farm real estate.
that there be what
he called "an excess profits tax"
price ceiling
pro¬
is
posal
of the Farm
on
(This column is intended to
Duggan's
Gov.
course
101 tricks admin¬
HUbbard 2-1990
Mass.
'
guns.
investors
who are happy over having broken
the
steel
hard
12-month
chain
money,,
of
1*4%
there
on
comes
HAnover
Maybe
mid-winter
by
when
Firm Trading Markets
it
Aerovox Corp.
Teletype—NY 1-971
2-0050
this tip from an informed source:
Allied Electric Products
becomes pluperfectly clear to the
office boy in the bond house that
the
Federal
likely to
go
is
government
more
po¬
litically-precious
the
return
not
State,
on
look
benefits
that
one-year
of
even
1%%
money
might
the
has
been
more
enduring
Issues
Placer
FOREIGN SECURITIES
SPECIALISTS
50 Broad Street
Rauiang
Jack £r Heintz
r*ARL MARKS & po. iNCe
top rate
2*4% under recent Administra¬
tions
AH
high; and although it is
revolutionary, since
of
Baker
FOREIGN SECURITIES
into $25 billion annual
deficits than to cast aside the
cumulation until .the Administra-! thart the Constitution of the U. S.,
Of
"
'
crops.
*
*
Credit Administration refurbished
tion to farm
institutional
those
Welfare
inventory control
and
December
Meanwhile,
of course, the Treasury will have
to accept the fact already regis¬
tered, that it must pay about IMj
To
entirely likely that Sawyer's shop
the
maturities
on
expenses!"
disputed by many, or as to many
be
few buyers.
a
Gov. I. W. Duggan
Board
threat to
its
might
rate
214%
#
Reserve
on
"We demand
cuts
on
the
even
'
*:•
promote
is,
feeling this new efficiency expert is
a
REALLY going to trim
questioned by
durables.
*
Federal
the
follows
and down pay¬
consumer
on
*
to
have
done all the staff
to reach a judg¬
terms
to
as
ments
did
"I
necessary
posits
true
had
handedly
was:.
of the
any
real
fore-
System
and
Board
the
was very
istrators know to make
was
to reinstate
up
Congress
many
of course,
Regula¬
tion W. This is a comparatively
routine, self-operating thing, and
ment
gin until late in the year.
try
Naturally,
all set
was
also
that you achieve these cuts. Don't
doing some¬
The Federal Reserve,
a
language
he in effect said
thing.
appropriations
contracts under old
until
Cannon
year.
Mr. Cannon's
as
show the people it is
or
polite, but in the vernacular, what
it may seem, it is en¬
possible that, .he will not
have his way and that the Ad¬
ministration
will feel impelled,
for election
purposes,
to churn
about with its control powers and
Silly
tirely
by postponing
deferring unavoid¬
succeeding
pointed
out
that
defense
expenditures
were
not
sacred, that Congress
ordered only that the cut be not
applied in such a way as to harm
the war effort. Finally, Mr. Can¬
non
suggested that all the cuts
could not be applied to a limited
range of expenditures.
<•
f
by
dictated
meant
Congress
that
projects
fiscal
is be¬
it
outlook,
the
is
This
lieved,
"minimum"
achieved
payments
objectives and policy.
reason
that the
was
a
said, that this "cut" could
be
able
ground of agreement on
common
was
maximum figure ordered by
a
Congress,
peculiar condi¬
tions of particular industries.
Actually the first step chrono¬
logically, will be the staffing of
the agencies, and the knocking
together of the heads of different
of agencies until they learn to work
weeks.
-
What Cannon said
idea of how
of what
it wants when.
the inventory ordered will
to
be modified,
piece by
tion finally gets some
Development
'UL
,
Thompson & Co., Inc.
Trading Department
New York 4, N. Y.
70 WALL STREET, N.
Tel.
WHiteha-l 4-4540
Y. 5
5
@FedFRASER