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A^ ESTABLISHED ■ ^ i-a*#. S Rm- V. 8. Pat. Office Volume 185 Number 5628 New York 7, N. Y.. Thursday, April 11, 1957 Price 40 Cents a Copy EDITORIAL Outlook for Plant and See It "We at the can have both a shorter work week and "VI! By time enjoy same higher living standards If intelligently and responsibly utilize the tools of abundance, automation, the peaceful harnessing of the atom and the other productive tools that science and our us in the days ahead."*;These are recently uttered by that shrewd labor politician, Walter P. Reuther. The statement is words in keeping with his well attested acumen in at¬ tracting a following among organized labor and among the "liberals" who like to think of them¬ far ahead of their time. It is as because taken of it¬ self out of content; It is probably in keeping with .the. facts. ;.£'•: But expenditures — his next sentence the different light. Here is what follows immediately upon these generalities of the boss of the a automobile Plant week to the magy other gains that we have pioneered not only for ourselves but for Ameri¬ can workers generally. Taken together the two statements seem to say that the union intends, and is able, to wring a shorter work week—with¬ out reduction in pay, indeed with even an in¬ crease in pay—from the industry it serves, and that the,industry can carry.such a load if it makes full use of all thb resources of technology, management and energy available to it—that is to say the investors, the managers, the scientists, Continued * page '''.; , main of the .. productivity. 30 ference Board profitflexible. great are today is dominated by a sophisticated, more intelligent, buyer than ever before in history. This isn't news! The point that is more is the fact that news phisticated j These assumptions will be Continued address with situations, Everyone interested in securities knows that the stock markets than the on — markets markets of stock market. result of our spell Wall more so¬ two-way stocks rather Whether it be Street's program—the educa¬ of growth the indirect investor—via pension funds and open-end trusts — or the part played by the professional security analyst—rthe end result is the same. The upward and downward evalua-. tion of individual stocks, and indi¬ vidual groups, is a continuous proc¬ ess. Not a readjustment likely to be accomplished in Sidney B. Lurie - all-embracing swoop. In turn, this has Jbrought about four corollary or supple¬ mentary considerations—each of which can make head¬ one condition lines. For one thing, a sophisticated market means that outstanding values can attract buyers just as they db in a department store. * Note, for example^ the positive action of the drug stocks during tion of the prospect of record no page by Mr. Young before the National Industrial Meeting, San Francisco, March 28, 1957. a tional ;and in long-term economic projections, about future in¬ in - the past month in reflec¬ high sales and earnings Continued 34 ♦A Con¬ York talk by Mr. Lurie at City, April 4, 1957. on page 24 the New School for Social Research, Nesr ; SECURITIES NOW IN REGISTRATION—Underwriters, dealers and investors in corporate are afforded a complete picture of issues now registered with the SEC and poten¬ tial undertakings in our "Securities in Registration" Section, s securities DEALERS starting on page 36. State, Municipal in .11. S. Government, Stale and Municipal • ; • telephone: *'•••* t. mp— - STATE AND MUNICIPAL COPIES OF OUR : BONDS THE ON LETTER BANK THE FIRST NATIONAL CITY SANK DEPARTMENT Burnham (V30 BROAD ST.,N.Y MEMBERS NEW YORK and ANO Company COIURNMAM of NEW YORK • Dl 4-1400 Bond Dept. Teletype: NY 1-708 Net To T.L. Watson&Co. BANK AND ESTABLISHED Stock Markets Banks Stock Exchange Orders THE CANADIAN BANK Brokers Executed On OF COMMERCE CANADIAN BANK Municipal Bonds for California's Rights We offer which at All to buy expire on the above rights May 17, 1957, the current market. Direct Private Canadian Exchanges At Regular Rates Exchange Chase Manhattan : Maintained and SECURITIES Commission New York Stock Exchange American Active Dealers, THE 34 offices from coast to coast CANADIAN 1832 Members INSURANCE STOCKS Members New York 120 BROADWAY, NEW YORK 5 TeLETYM NY I-IIM I REQUEST Harris, Upham & C9 AMERICAN JT0CK EXCHANGES" 15 BROAD STREET, NEW YORK 5. N. Y. CABLE Expanding Economy Wires to Toronto, Montreal, Winnipeg, Calgary, Vancouver, Victoria and Halifax DEPARTMENT Teletype NY 1-2270 25 BROAD STREET DIRECT NEW YORK 4, N. Y. FIRST WIRES re MONTREAL AND TORONTO GOODBODY COMPANY ; ft BRIDGEPORT • PERTH AMBOZ <■ * CO. US- BROADWAY Vh 1 NORTH LA SALLE ST. NEW YORKl " CHICAGO I MUNICIPAL, BOND DEPARTMENT Dommiox Securities Corporation MEMBERS NEW YORK STOCK EXCHANGE i DEPARTMENT BOND ARE NOW AVAILABLE MONTHLY BOND Bonds and Notes REVIEW" CORN EXCHANGE * Housing Agency "ATOMIC ENERGY view burnham '. Public HAnover 2-3700 CHEMICAL -4 and • Securities * market and creases . - Something new has been added to the market place! And that "something new" has constructive implications which have not been fully appreciated. . - individual making opportunities for those who key to national . about ranted fore¬ ' > ... , factors, maintains this is a year of "private butt and bear markets," with the market action of the issues in many! industry categories having already reflected relevant business developments. While doubting pos¬ sibility of an overall advance, insists enthusiasm is war¬ . equipment i spending is importance, too, to future levels of productivity and living standards. ! Living standards have ; risen with past improvements in productivity, and they can rise in no other Way. To put the matter in its simplest terms, we can consume per capita no more than we produce per .capita. Our ability to produce more Charles E. Young per worker has grown directly with the increased use of power equipr ment per worker and With the development of improve¬ ments in equipment and methods of production. Hence maintaining and expanding private investment in plant and equipment is basic to maintaining -pud improving our national productivity as the years go by. Some rather glib assumptions have been made, both in labor contracts *An on the downs ( ! i live of extreme workers: "Despite the diffi¬ and the many problems that solved, I am confident that union has the resource of wisdom, solidarity militancy to add. in1 i958, the shorter work and business many are and ups economy., ; culties in the way must be faced and our To f Market analyst, listing various constructive and destruc- casters^ <and (certainly to me, changes in .the pace of private investment ' and here's the rub places it in Product. ' Members New York Stock Exchange YOUNG* Every significant change in expenditures for plant and equipment, whether up or down, has been reflected in corresponding changes in total industrial production, employment, and, to a lesser degree, in Gross National shrewd a E. Economist, Weyerhaeuser Timber Company developing technology utterance for such purposes CHARLES : Partner, Josephthal & Co., New York City ? Capital outlay analysis by Weyerhaeuser Timber econo-*, mist depicts: (1) 1957 will probably be higher than 1956—achieving a record high; (2) direction of plantequipment spending will probably turn down; and (3) after a breathing spell—with no cataclysmic drop ahead —of a slower expansion pace, another rise is likely to begin, carrying eventually to new peak levels. will- afford selves By S. B. LURIE* Equipment Expenditures will but we The Stock market Ahead H«nit of America national 40 Exchange Place, New York S, N. Y. ' Teletype NY 1-702-3 WHitehali 4-8161 300 jivwcs association j Montgomery St., San Francisco. Calif. The Commercial and Financial Chronicle (1690) r> The ' Brokers, Dealers only For Banks, * ft Security I Like Best A continuous forum in fin the inrestment and Try "HANSEATIC" MARKETS FOR MORE for favoring reasons (The articles-contained in this forum particular security. a intended are not to be, Alabama & Henry J^Idw, Manager of irasti- .V" nor ; Participants and Louisiana Securities Robertshaw-Fulton Controls Co.— , Thursday, April 11. 1957 , Their'Selections which, each week, a different group of experts advisory field from all sections of the country participate and give their This Week's . •Forum ^ ■ .. . tutional Research Dept., Gude, are they to be regarded, as an offer to sell the securities discussed.) / -■ / Winmill & Co., New York City. -v (Page 2) - / V> -f_y standing. ROBERTSHAWs capi¬ HENRY J. LOW talization consists of 1,469,344 Pew»i-Cola Company — Sidney R. Manager, Institutional Research Dept. shares of common stock preceded : Winters, Partner, Abraham &; Gude, Winmill & Co., New York City by 56,245 shares of $ 1.37 V2 -con¬ Co.-, New York City. (Page 2) Members New York Stock Exchange vertible preferred (convertible New York City : ^ i i ; into 1.25 common) and * 1 , . i. ' <* r » . l" •••*,' ' • 1 . ' " . t kl 1 ' ■> i * t . Better and faster full facilities, long Our ex- provide wire system broadest the with « you v Rnhertshaw-Fttltott"Controls possible market coverage. Ddttipany long-term debt. ; ROBERTSHAW-FULTON CON- ', , TOOLS, aggressive ess ' " Established A';:'; ; Associate Member American : *'V 1920 : Dec. » York 5 Teletype NY 1-40 WOrth 4-2300 BOSTON • PHILADELPHIA • - Private ' SAN FRANCISCO to Principal Cities Wires t in an rtAA h«nry J. Low was ; .. through exchange of stock. On Dee. 31,1956, ROBERTSHAWpur-" chased the Beta Corp.-, manufac- Fielden Members which Exchange tion NEW YORK 5 in the produc¬ design of electronic re¬ and controllers for the cern Trading Markets The leading German a West Bank of Virginia * draws attention-to ; I Securities Co., Ltd. was; problem solved? Before 2950, public * regarded Pepsi as a drink inferior to that; of Pepsi's, •leading Competitor^ and its accept¬ ance was based largely upon the " '• Established i$9t ' \ ; Branches * /Brokers: & investment .Bankers Borne Office Tokyo *—70- 111 •rtttiway.N.Y.BDOrihBHH 74180 fact that there was more of it for the, price, This attitude was emphasized* during the last war, Sidney R. "Winters i same A V drink - v; a , Coatinfling Intereit in -;Fischer & Porter Inc. . r deteriorating relationship with industry has franchised -bottlers, and one steady growth see why the company's sales GrinnellCorp. i./• >' ; can and Iaternatioiial Textbook Co. ' hard-hitting still serVrng. the drink iLwas vbeIhg pOUred in the .kitchen, :then aggressive, an _ Keyet'Fibre Co. •; • i BOENNI NG&CO. . Established 1914 '' 1529-Walnut Street 115 Broadway • Philadelphia 2, Pa. New York O.N. Y. LO 8-0900* CO 7-1200.. •!"' ATT Teletype PH 3p ,,,'V• , sales throughout Europe, Likewise, earnings in that period the drink, for which quality conand Australia which last dropped from $1.18 per share to trols were ^instituted. Then \ the, amounted to 5% of 1956 total only $0,22 per share, and -cash v^rv vital matter of relationships dividends Other activities include new tively conducting research-and deyelopment. work on controls for aircraft and guided missiles. Benefits of costly long-range planning for this part of the company's op¬ erations are beginning ■ to make \ on continued. the a ID 33 Tele. LY 62 write Canada year sales. : or / Yamaiclii "I ?. the rather a ; export ~ Lynchburg, Va. ;. and how repair what was then a rapidly .served in the living room;, deteriorating situation. The comThe new management began a pany's. sales had declined from most extensive alteration with an over $56 million in 1947, to little internal reorganization and a nxore than $40 million in' 1950. changed and improved formula for plant to be constructed in Germany this year. This develonment Scott, Horner & Mason, Inc. ,,j soft r-"f[ -;Call , the to ROBERTSHAW's rapidly growing First Colony Life Insurance Co. r was wrong, new'management team stepped in that eon- recently made for pro- was with Alabama-Tennessee Natural ; ,:"^f praetieaUy ' quinine water,ginger ale andclub What - For enriebt information • ' soda. at stationary levels for three years now appear to be stirring due ^ to improved Japanese economy. < trend for many years. duction of electric range controls Products, Inc. Company after remaining I Pepsi-Cola, profits were famng away. Indeed, petroleum, chemical and textile however, has only demonstrated " is well known tiat even in t e industries. In addition, an arrange- its mettle since 1950. It was then caff of; many ..people Who were ment with a Gas : curities I like yest \ think shown offices CllS" automatic cup vend- Ltd., 'of Qreat Britain,, bottles and distributes throughout the United States the well known Schweppes. ■ on^ of the, se- is engaged and branch our IA PAN ing machines. A sul^idiary, under an agreement with ^cTrvveppes,: ' this description. Division Instrument corders TEL. REctor 2-7815 Air Control Mobile,Ala. Direct wires to demonstrate when Pepsi, used sugar substitutes, that Pepsiare^'being' consolidated wfth the Cola common stock, fits well into for theh scdrcesugar. Add to this- New York Stock Exchange Stock in'Sfin^ain XOUIltSin C3HS xOC US6 1JT1 +Y\s-\ " the following St or y will performance in motors, pumps and power units, Operations of the latest acquisition detection of faulty ffcpONNEII&rp. American that«I prdbably the peters,and have located turer of vibration controls used for 120 BROADWAY, nwrtKnKlir J™a NY14S57 New Orleans, La.-Birminchaiii, Ala. : In addition, a sugar refinery is it, the records prove When ' ■ t tling plants in the United States. m-, dustry, then jl. ' the exclusive right to distribute "Pepsi" in • > ..irapiive • HAiiom- 2-0700 J suc^, Pian.ag®r ™ent ™ en-- 19 lector %U New York 8fJL Y« Pu* is sold .to others. The "Pepsi" management team.■ to niBn J < acquired Since 1917 see terorifle . RIGHTS & SCRIP . d a n ease, and - Member#:American *Stock -Exchange' owned, although most of the out- b MP J compo- nents . ni,„n,r0 tant element 0f a mess successful en- ' ^■HKI \ „ gineered elec- Specialists in -r. * S! p heating controls, - electric trie «rv, As I fished *Dro- specially, each Ex,lian?« StfnS outstanding Co.; switches . Pepsi-Cola Company aucer ducer 01 of name home CHICAGO Members Kew York Stock Exchange * These franchised bottlers have, in ex¬ Manu- facturing . v. , aod 0U,er On. 1956, 14, Aero . Stock Exchango 120 Broadway, Hew ^ " diversification program. v'* > parlner> AbrJlham ,g Co., N. Y. City pansion and Corporation "r R. WINTERS SIDNEY trols, is currently undergoing an New York Hanseatic V-'"-v bottle manufacturer leading a ; of thermostats and automatic con- • STEINEIkROUSE&Co! 9,836,000 , ..t 'J, ' , - perierice and nationwide private Bought—Sold-—Quoted ... - the shares The were progress management provides of a djar^vith franchised bottlers received Standard Pressed Steel Com. the increasing ./attention" from ;top oftrue "ficials; '*pn premise" markets were - . pursued and: developed,. end last but not least, advertising-;arid jfro-motional activities Tegeived n riew ; direction, >beitig pointed towards truly spectacular. Sales have risen the ultimate acceptance of Pepsi modem success story. Not only was the decline in sale? arid eprnings peremptorily halted arid reversed, but the recovery has/ been John B. Stetson Pld. -Pocono Hotels Units ;: ^Hffls Fafls Co, ; Sf ; Guarantee Bank & Trust Co. year- since the man- as a ^quality beverage at least on agerial change, reaching a new a par with any other, similar in sizable earnings contributions peak tof more than $97 million for drink. Perhaps the most impres- > from now on. Completion of en¬ 19^6. Profits reached a new high sive indication of the- tenor oflarged plant facilities of the of $1.60 per share in 1955, and Pepsi's present day advertising" Robertshaw Thermostat Division but for a combination of adverse mood was the recent sponsorship • scheduled for June of this year, circumstances, mentioned later, of the TV spectaculai^Cinderella. and the greatly increased capacity would have exceeded that amount This .presentation received much for the Grayson Controls Division in 1956. Further, dividends are comment, not only for its exceland the Bridgeport Thermostat now being paid at a 25 cent quar- lence. but also for the fact that Roadkig Co. 3%s> 1995 sharply each themselves felt and should result Trading Markets . Botany Mills ' G. M. Giannini Kusan, Inc. Lone Star Steel 1957.. These ireenewGompan^ ESTABLISHED 1930 N. Y. PhUa^Balt. .Stock Exchange Pennsylvania Btdg., Philadelphia Teletype PH 375 ' * ^ 1 N^T/Pbone COrtlandt 7-0814 :■ Division will aid further in sub- terly rate. In the opinion of the the commercials were non-rjarring, stantially higher total earnings for revitalized and enthusiastic man- and attuned to the performance. IMaule Industries 31 Wall St., Members . ; Tel. HAnover 2-4850 are conservatively ^0 esagement, all this is only the beA word now about last year's share ginning. results. As mentioned in the re¬ with 1957 sales projects in ilie Now, just wha; is the Pepsi- cently issued annual report, beneighborhood Of $80 million com¬ Cola Co.? -Fuftdamentally, Pepsi; cause -of -three .-major events, all pared with 1956 sales of $72,640 is the second largest maker of tihe unfor'eseeable: arid- hnavoidable, j a 000 and 1956 net, income of $2182 cola-type soft drink. The company notable sales growth was not simper shUre. * ^ owns and operates 12 plants, lo- ilarly followed by higher earnings. Dividend payments, which have cated in the U. S. A; and abroad, At the peak .of the selling seascm, been made continuously since the in which the. f lavor concentrate there was a ^Strike in the. com- shares were first offered to the used to prepare the widely ad- pany's largest bottling plant, con-i timated at about $3.25 per . . . . VossOil "V % public in 1957, are presently at an vertised beverage "Pepsi-Cola" is centrate plant, and sugar refinery, Philippine Oil San Juan Racing Wyoming Uranium - capital position is strong with .cur- bottlers located all over the. world " ' during I. the important sumreot assets of $29,793.000 on Dcc. ineiuding 76 foreign countries! r* " Continued on page 6 31, 1956 including cash ©f $8,614,-.: Ten-Year Record •' 000, comnared with $8,303,000 cur¬ N. Q. B. . OVER-THE-COUNTER . Inland Resources rent liabilities. • - • . v Net - Year Brown Allen ^Chemical • • • • , 1-Exchange PI., Jersey City,H. J, MEnderson 2-8570—Teletype JCY119 Direct Wire Dlgby 9-3424 Sales The.common, currently selling around 29 on the New York Stock .Exchange, is available at only nine times estimated 1957 earnings CAPPER & CO. r and With ties appears good reasonably 19^6 . 2955—_— 1954___:— priori appreciation possibili¬ the longer term. Reyn¬ olds .Metals, one. of the .world'? over of common stock out- Earned Income Per Share $8,880,000 $1.50 Price Dividend Range 26y4-18V2 9,450,000 1.60 1.00 24%-17% 6,210,000 1.07 0.65 18%V13 % 5,480,000 0.95 0.50 15%-10% 0 £7 '0^5 1951___ 11%- 8% 1950 1947 : 53,280,000 46,760,000 40,180,000 45,630,000 46,630,000 3,880,000 2,630,000 56,450,000 ,.6,770,000 D.46 1 INDUSTRIAL STOCK INDEX -v $1.00 18-Year Performance of ' 35 Industrial Stocks POLDER ON r 1952 .largest aluminum producers, Dwns 1949. 505,000 shares or 34%. of the'total 2948—__— number $97,030,000 88,970,000 74,200,00066,110,000 Net 12%- 8% ' 1,270^000 2,140,000 3,150>000 0.22 - 12 < - 7% 0.37 0.20 12 0.55 0.4212 24 %- 1.18 0.95 34%—22; - 8 7% 48 Eraat Street . , ' New Yerk4,H-Y- Volume 185 Number 5628 „The Commercial and Financial Chronicle .\ (1691) I ND EX Electricity and Progress" DONALD By * \ - * Articles and News ; S. KENNEDY* President, Edison Electric Institute and Gas and Oklahoma , Electric 3 The Stock Market Company Page Ahead—Sidney B. Lurie— „„Cover ''J. Private electric utilities expected to invest are an Outlook of average $4 billion annually for next decade and,. according to Mr. Kennedy, this should permit 6.7 million kilowatts of erating capacity in 1957, new gen¬ which; Electricity and Progress—Donald S. Kennedy———— 3 Husky Corn Products—Ira U. Cobleigfr—: 4 ___ arbitrary subsidies which permit public than Citrus Industry's ^Success: A Lesson for Surplus Crops —Roger W. Babson of time of the first practical incandescent lamp in 1879 only 78 velopment Conditioning Growth Is Just Commencing '; —Cloud Wampler i I &i *•--1 years - .. over next ten have passed—less than three generations. - - . - In a billion per years. this great development didn't just have seen happen. revolution possible our stand- of living, ard The , growth largely A tool new STREET, NEW YORK a - >9 * 4-6551 BASIC ATOMICS 10 COMMONWEALTH OIL 12 Consumer Instalment Credit and Public Policy—A. L. DuMONT Mills, Jr. 14 BROADCASTING Consumer Credit and Government—Grover W. factory new - f the fact that:-1 has developed a built or - Developed Areas—George H. Cleaver made was - Dynamic Program for Mutual Savings Banking ? —August Ihlefeldj---_—jl__~i_—_ _—i_ -_i__________ Outlook for Metal Consumption in Backward and ' . by time anyone any WALL Telephone: WHitehall 8 - time in . • . . this we * $3 Many people fail to realize that - • is now and is expected to. average $4 billion a year over the year Obsolete Securities Dept. Air vestment de- time? junk for to charge less power private firms. Edison's your your V 6 ___ _ _ _ the From > _____ 99 . us the "best prices in town! ^ Investor Policy and Philosophy in Face of Long*Run Inflation —Julius Grodinsky operated firms can act, the Mid-west utility head expressed confidence that an informed electorate "will never fall for the socialistic power programs > ." Cites private waste Bring against 4.5 million in 1956, and as Attributing ready power avail¬ ability vto consistent planning for the future and to dispatch with STITCH IN TIME 4 Cover ___. Why 29*5 million kilowatts-by 1961. r* for Plant and Equipment Expenditures —Charles E. Young—_____— . Ensley. 15 _ *' Even the us operate can electric youngest of here terms of his the ence ference mad Donald S. Kennedy his in In when it „ ; cause the investor-owned an company right get can to behind horses in the central busidistrict. ness seem quaint. come an part of Today, such notions daily liying.; our Power, The future program of construe- • 22. lion to meet prospective is vast. Trust Co. ^Survey" V- *. 1 panies kilo- of most the hard drudgery of living. Consider this: In 1850, 94% of all the by men Members Salt Lake City Stock Exch. Spokane Stock Exchange 22 C. W. Planje 33 Exchange PI., Jersey City DIgby 4-4970 HEnderson 4-8504 Teletype: Serious Downturn in Business Is Unlikely, According to First National City Bank .L__ JCY 215 47 Jessop Steel it is estimated that 6.7 year million capability ufacturers kilowatts of As We See It (Editorial)———- —_iCover . Jack & Heintz Bank and Insurance Stocks. 28 -1-1 station'?' Businessman's Bookshelf order with the on Regular Features V- ■ . man- > by 1961. During the current year, the capital funds xe- animals. In 1900, this percentage quired not only for power station had declined to 62%, and as of capability but also* for transmis1950 only 6% of the work- was sion and distribution will exceed ? done oy men and animals—94% $3.8 billion. was done by machine. The latest To cbtain the funds for this con-done was 17 ;___ 1 • 29.5 from man J.F.Reilly&Co.,Inc. Conditions demands million 4.5 emancipated electric MINES Last year the power com- installed million kilowatts will be installed and that there will be a total of 4 mostly now Business Greater Importance of Ceramics Cited by watts of power station capability, This Reports — Purchasing Agents Optimistic . power, has during the last century work done Practicality of Leasing Plants—George W. Warnecke—__ ' Electricity has beimportant and accepted GETCHELL 17 Are Reassuring , hauled 15 General Economic Conditions: Now and in the Future —Charles T. Broderick——_ Guaranty business without getting approval from the Congress and without ' suffering the delays that unfor- •* Even as late as the early years of tunately plague politically-manthis century in this city of Chicago aged power developments, we overhead trolley wires were pro- have been able to meet public \ hibited in the Loop and elec- demand for our service. / * cars were HAILE MINES —_i—___ power down early days, electricity was widely feared as a dangerous enemy of the public, trically equipped •; ___ wanted, was ; ... —Sidney E. Rolfe___ ,r to have power as v j v - Because of this planning, and be¬ has e life. available elec- so - Federal Reserve Credit Study: No Case for Selective Controls the . for the future dif- tricity is- because by it and has consistently planned experi- o w n This it. industry has recognized its obligation to serve the public the quantities of power demanded in measure ,r Ifhe electricity has been there - to > Air Products -l_-:__"48 Coming Events in the Investment Field Pacific Uranium 8 i___ . and Dealer-Broker;Investment 'RecommendationsEinzig: "Britain and European Free Trade'L__: Vitro 8 .. Corp. & Rights 20 . figures show that in done was how this 1956, by machine. has increased productivity. From 1% 98.5% Think of American struction the investor-owned elec- Mutual vest. News About Banks and Bankers. . v Let's this accomplish- measure ment in units with which we ^teetric facility requirements. are .illcentives r more familiar. Fifty J years ago tile fo output of the electric industry was in 6 1956 billion kilowatt-hours it was Kilowatt-hours crease. of Fifty over years ago investor-owned companies was 600 We the utilitv of orde biUio^i—foda2 it exceeds hillinn billion. The St/nf rate of growth fn Sl The in- vrowth SOO in in- in and fei\s.atn? we,af."°t t" a to dictate what interest A'""™ Wilfred Governments_.—i._ is is the b4usl- thrifty nation. a May.!———________ an Reporter's Public that The inc. Exchange Pl.fN.Y.- 5 26 Report— * —______ Securities———— Utility — 45 We Believe The 36 —.___— Offerings.— Prospective ^Security Tide Has Turned For . Security . . State — and You—By Wallace Streete 33 Douglas & Lomason 16 Common Best Like I I > The , , 40 Corner—— Salesman's The Market to Philadelphia Chicago Los Angeles Uallas 29 ———————— Securities Railroad The , 40 Direct Wires Our Security or return • fact AAackie, Teletype NY 1-1825 & 1-4844 :for fls '° get ior- £atilities Ameriea Observations—A. ■ hls savln^s- Part.'of- tnet reason that we have been able to obtain the caPital with which to Provide our & 26 Securities Now in Registration.— rate going Singer, Bean 44 — Our-Reporter ' the t_7_———— HA 2-0270 .. pay Funds 6 46 i. _ ~ Savings money *hieh we UBf.ln our the capital electric on billion 100-fold a _ - ,xr ■ less than Indications of Current Business Activity trie utilities go to ..the American public, which has savings to in- We are thankful that we of human effort we are now pro- have a free market at which to; ducing 100 man-years' worth of obtain our money requirements, goods. When you consider that a and that the American people nation can consume' only that served by us are, therefore, not: which it produces, you can readily dependent ■ upon' taxation ' and( see how Americans today enjoy Government appropriation and athe highest standard of living of further increase in the Federal-, any nation on earth. debt for toe fulfillment of their man-years From Washington Ahead of the News—Carlisle Bargeron—__ 2 • ■ ■- ' a. Share a .. and Industry of Trade Now Under $8 4 1950-56 Price 48 Washington and You 50-Year Range $4%-$16% Old Company ' *An address by Mr. Kennedy before the American Power Conference, Chicago, March 27, savings per capita . 1957. ' • here are the on page 32 •, Continued Sound ^Column not available this week. 00 ferred. Net earned last first 1 Weekly Published Twice v Drapers' Gardens, London, E. C. ter COMMERCIAL For many years we have specialized in and PREFERRED STOCKS Reg. U. S. Patent Office . Reentered - ary . WILLIAM 25 B. Park DANA Spencer Trask &. Co. 25 BROAD New York Stock ST., NEW YORK 4, N. TELEPHONE HAnover 24300 • Nashville Boston .- • : • Chicago Schenectady • • Glens Falls " 25, 2-9570 to second-class as 1942, at DANA Subscription issue — 11, market corporation rnews, bank and city news, etc.). quotation clearings, Chicago Offices: 3, 111. 135 South (Telephone La In Sales 1957 estimated at over' > of result as Pre¬ share Satisfactory of quar¬ operations increased effi-^ closer cost control and initi¬ product diversification. \ Pebru- at Recommended for New Appreciation Rates United Dominion Other of Canada, Countries, $67.00 Other Salle St., STate 2-0613); States. Bank and Quotation $40.00 per year. • U. 8. Members of year; In -per $63.00 per per Report of siikDAvfnHnna in New Wall St., New York 5 Record Please. — Monthly, the~ fluctuations in remittances, for Adwai^lBanianfa York lunaa. BO 9-1600 CH I Donplas I Name I for- 1 MHal ® «*«n subscriptions and advertisementa must be made 80 year. (Foreign postage extra.) Note_on-aecoiint General Investing Corp. i year. Publications the. rate of exchange, Worcester Other matter Territories and Pan-American Union, $60.00 1957 records, state ciency, ation office Possessions, President Every Thursday (general news and ad¬ vertising issue) and every Monday (com- statistical post Dana No per 1956. 9576 SEIBERT, Thursday, April 1956. Send for FREE SEIBERT, Editor Sc Publisher D. the B. $1 >of York> N. Y., under the Act of March 8. 1879.', „ Y. TELETYPE N. Y. 1-5 • HERBERT plete Albany William Company Subscriptions WILLIAM Exchange COMPANY, Publishers Place, New York 7, N. Y. REctor Members 1957 by Copyright Bonds. of quarter volume, for corresponding of achieved CHRONICLE FINANCIAL No income quarter of twice Eng¬ land) c/o Edwards & Smith. The Finances. send Sc (Please me FREE Report Lomason Common. . print full *r» — name clearly) I | 4-11 on | The Commercial arid Firmneial Chronicle uets Y// V. COBLEIGH IRA By Enterprise Economist Y panoramic bip from the A swift . TTr^rEciaVj April 11, 1957 cornfield, to the home, factory among us. is going to quite cific lions of dollars a we're — going to t a 1 k refining modity is not b li q u in gredient cocktails and Ira conversation but as we U. by the brewing industry, of demand nual an In be performer, CFG 1947/56 decade the the com¬ split in May 1955, ranged 18 and 32. If it is selling today near its historic high, it does so, no doubt, by virtue of $2.36 per share earnings in 1956 between and $1.50 dividend which a bulk products, about jjot only is Corn sets 12-31-56 at Kre-Mel Syrup, puddings, salad oil. Kasco dbg food, vestment in foreign Still stands on. the books at $12,700,000. are of softener and Nu-Soft fabric Bos- This item, however, has a demon¬ chocolate flavoring for milk. cc, a strable Now all this maze of Mazola and mash corn—141 from comes mil¬ lion bushels of it last year to This precise. .to starch a — be converted paltry 4 billion corn was worth net of about was - the for in for corn being at least. There will be pro¬ depth a in research will the of the market this sum¬ building also will help keep the ' respectable level. Mills that'produce strut:- a be mainstay v looked-for The / pickup in demand from maintain will ^ a : Y automotive is still "just around the corner." Detroit is holding to its policy of cut-, i steel inventories. In fact,' some excess automotive steel, ) largely sheets, is being dumped on the market at below-mill ting prices, r ' pro¬ V . Construction in research pure But overall order volume • some ;/./ ' areas Y ■/ ."", ' is getting off to a ).yY v/' /Y'•.:/-• * slow start. This , structural.. The ; road-building program also has bogged down somewhat because of hassles between Federal and state governments over which projects! get priority. But these delays are only temporary. The , structurals market is expected to revert to its extremely tight status within the next few weeks,"The Iron Age" continues. ,:;<Y-, :Y* Th&oil and gas industries are maintaining a lively pace. The possibility of new pipe lines in the Middle East to bypass the Suez Canal has injected a psychological factor into the iparkei, • Scrap prices continue to drop. But there are signs that some dealers feel the. market may be nearing a turning point. Reports ) has • led slight easing in light: and standard a —i several -«•— from earnings' dips this year, appears quite definitely to areas due for an :—a;—^ indicate that This could inventories. yard dealers some represent a belief are rQKn;uin<« rebuilding' that prices are upturn, concludes this trade weekly. ~r ;Y Y ** for Corn Products. United the automotive States-wide industry record daily new topping any average 1956, were reported for March 21-31 by sales, with the 10-day period in; car "Ward's Automotive Re¬ ports." • V Z - will be admitted to general part-. nership and Rudolph Henry Deetjen to limited partnership in publication said March 21-31 period of new car buying averaged to 22,700 daily as compared with 21,570 a> year ago and the entire 1956 high of 22,200 reached during the period May 21-31 last year. Y "Ward's" said the month-end increase was fully 13.5% over Emanuel, Deetjen & Co., 120 Broadway, New York City, mem-; March 11-20, which already bers ning to blossom. Thus, entire On May 1 John R. of the New The McDonnell York Stock Ex¬ recent With American Sees, half-million also ; over (Special to The Financial Chronicle) to a GREELEY, der is , 128,228 shares of Corn Prod;- ties now Colo.—Leo Schnei¬ with American Securi¬ Company, ■ statistical had shown a 7.4% upturn over March expected spring sales upturn is begin-, 1-10, indicating that the change and other Exchanges. Syrups & liquid sugars J time Oil and gas and freight car operating rate at Admit Two Partners Sugars Inc. (outstanding producer technician the April and early May. turals, plate, oil country goods and linepipe higher-than-average production rate, it notes. a by - industry the decline in new order volume appears leveled for Construction mer. Emanuel, Deefjen to position of Corn Products enhanced , suggests that the mills may be in a position to stabilize ingot now , further new advent In the steel In ♦ and in green pounds—of which IV2 billion be- company as dividends from for¬ ipame corn syrup, % billion corn eign subsidiaries in "both hemissugar, 14 billion corn oil and the spheres. This foreign phase of the business is particularly attractive ♦ rest, farm animal feed. This corn ♦ since, with the great economic may not be as high as an ele> jphant's eye but it's certainly as gains recorded in West Europe, business has grown rapidly and thigh as your dining room table. the profit ratio is most satisfac¬ Sixty different industries depend was for 1956-57, bQth total sales and pet. for 1957. While., certain motpr cars,., textiles, fertilizers and ;rails are in For 1956, $5,700,000 ' to the parent acquisition of Refined at i public "the falling'off. some have to the President, Mr. William T4 Brady, is optimistic about the ca¬ pacity of the company to improve transmitted The that production by late May or early June, states "The Iron Age," na¬ tional metalworking weekly this week. ♦ tory. Automotive Reports," $2,664,000 and ahead of the 3,217,830 common shares lies only 239,341 shares of $7 non-callable preferred—an authentic blue chip line $42 million, and will in 1957 develop sales of well over $120,000,000 and should deliver a net profit of over $7% million. With the as¬ million $82.7 product develop¬ ment; and excellent outlook for expanded foreign business. a First quarter; 1957 returns al¬ ready in, show 47c a share, and depreciated /basis, a "Ward's to y6ar ago. Recalls in;rthe5 tobacco industry in ^North Carolina, in the fishing industry iri: California and in the construction industry in New York were the chief contributors to the decline. ' 'Y": 1 * and process and subsidiaries which, newer production steel duction declines in gram Products Co. end Mazola cooking and on week past against current liabilities of only $31j/2 million. Long-term debt is gram by products and 15.%. .in pack|^ big in size./mid diverse in its outaged goodsfOr household use. This/* put, riiit- but hiif 'ir«4 arp spread <;nrp»a/4 its V»r>prnlinn<? operations are ♦latter line is not only the best broadly over the face of the world. known to the public but carries Starting from an early oversea in¬ the highest profit margins — and vestment right after World War it's increasing. You are no doubt I, CFG has developed facilities in familiar with Linit Starch, Karo 18 countries. It now has an in¬ Corn the Balance sheet position has been . 32% In corp.. front of: Spring, unemployment insurance claims/ In the week ended March 23 they de->; clmefd 2%! from both' the week preceding and^the like period a the on consistently good with current \°J tumn 'of ' 1621 ^ and we're sure Ikf volume is in manufactured you'll pardon the corny reference, ... * . the third, /showed present price of 31 creates a yield of 4.84%. *> ' < V. company./ Of this huge total, ~ . Y last is expressing its willingness and ability to purchase -'N , . . trans¬ portation." Some improvement was also/noted in car loadings. which rose 1.3% above the prior week. Crude oil production, on the other hand, slipped fractionally, but refhairied 9%; above the level of last year. The nation's gasoline stocks in the week ended March 29, decreased 1% from the prior week, but were pearly 3% higher than the same period in 1956. /"' /; ' //v; ,, Company in-particular,- topic for olactone, helpful in treatment of today's piec6*if r:V / arthritis. : . /Y'-YY- -i.v selling at 161. / Y . -4 YYYY$!-fe~ yyyy. ; / fBut we need not continue this Certainly Corn Products com¬ an appropriates We have seleptcd an approprta^ .catalog we havecatalog of corn—besides, wehay^ mon is entitled to be considered time dor the citing of this com- n>4 room in this article. We-merelv j: com4;;n!t room jn this article. We merely as a quality equity for the invest pany since, for the first time in wante(j to delineate, as briskly as tor for income. Less appreciated its history, it .crossed (in 1956) possible, the broad applications of are the qualities that may make the $300,000,000 annual sales mark; the first grain which our Pilgrim CFG a growth type enterprise— Quite t a milestone, and quite a forefathers harvested in the aua $32 million plant expansion pro¬ _. Index Failures a according regarded as among the equities on the Board. 3-for-l an¬ Production but recover sufficiently in. the Fall to keep the < year's production around the high levels of the past two// years. Electric output in the latest week eased slightly, white/, automotive production made fairly good progress with evidence, / giving due allowance for a 5% stock dividend in 1951, and a amazing* variety of industrial and domestic appli¬ pounds has been estimated. In other new applications, there cation. When you sip an evening, is Zein, used in making Vicara, a glass of beer, eat a salad, a pud¬ new synthetic fibre, as well as in ding, a bun, or canned pears, feed your dog, launder your shirt or inks, shellacs and varnishes. CFG is also turning out Inositol, a rem¬ chew gum, you are paying tribute to corn in general and most prob-; edy for hardening arteries and a real "toughie" to spell, glucuronably, to Corn Products Refining perceive has an off in mon. billion l*/4 over Auto Business current earnings). overseas market a must product were universally adopted tpoieign shall has been to most stable preferences of the stein savants. Ovier 20 million pounds of Nu Bru will be "sold this year; and if the in¬ American in As in; line with hfiodetn taste drier, 1 Price further decline, but it is reported by "Steel'V^magazine,, 7 that steelmen look for output to slip in the second quarter, Jevel ... showed since 1920. Prac¬ years industrial the On v stockholders to pause recent equity and com-; which only a u i tous net By elim¬ year. in a out between 65% and 70% of (not including undistributed pay required to be purchased, handled stored, at the brewery; time arid labor are saved, and the fin¬ ished brew comes out lighter and about corn—a dividends tice inating the traditional process of grit mashing and cooking, a much lower volume of raw materials is soe- Food and without hopped up corn syrup—which has provided a short cut in making beer that can save brewers mil¬ Trade Commodity Price Index Industry lining Company. cash refining proc¬ be and life of Corn Products Re- porate example,v there's Nu Bru, a • dver, our ref-* erence to the ess ; - Retail State of Trade In all this tibne through wars, depressions and droughts, Corn Products has never ture of some of these industrial; showed a loss, and it has paid demands is indeed interesting. \Y For Today, 'how- ; Production Electric Output i Cat-loadings tinguished and durable enterprise. This is the 51st year of the cor¬ products from Corn Products. Refining Company — and the fur/ refinement is a and corn; and universal cultural goal '** - Sieel The Y-V . on on Refining is a popular process m America. We refine sugar, petrole¬ um is Perhaps it's time to say a word the financial side of this dis¬ . ~ and dividend envelope. Syrups porate addition for CFG. ' *. Refined common. grossing nearly $40 million an¬ nually and is a most logical cor¬ Husky Corn Products > .•; (1692) 4 * March new car • pushed the month's daily selling rate of 20,500 February, holding the March buildup in new car mere 4%. r Y. marked the first time that; more than sales were recorded since last June; it units 4.9% Y inventories Y; \Y unchanging alone supports plans to achieve the scheduled 554,000 car production for the month of April. In April of 1956 output totaled 547,617 cars. . Because, April-June car "building is being revised downward from January-March, adjustments in employment and ,Jhours worked can be expected, the publication said. However, such changes do not cancel out plans to boost April-June manufactur¬ ing over a year ago. ,Y- '^ 'ji"Ward's" said Ford Motor Qo. last week operated,3.2%, and* Chrysler Corp. 58.9% over tllie yearTago^ level, with American Motors showing a 20% increase. Truck output in the United States also gained last week in; keeping with plans to boost April volume over^March., r jj The fact that : 37 1515 Eighth Aye. new car stocks in March held to an days' supply for the second consecutive month _ Complete INVESTM£dT Oilers Investors and Speculators . Great Profit-Making Opportunities I Subscribe / , SERVICE UNDERWRITERS t to r. BROKERS "Steck Market News One Stock of Canada's leading ' Market J. Comment" and DEALERS /*■ Advisory Services , .... , (Established in 1936) Fill in Coupon Issue 10 r&Toci Market I below Trial for , r -I-,,- DISTRIBUTORS Introductory • PRIVATE LEASED WIRE SYSTEM Service—$5.00 ■ J Dean Witter. No. "E" I II accept your Introductory 10 Issue Trial "Offer of "Stock Market News and Com- &Co. i News & Comment Ltd. Securities Advisor g . | 30 Richmond St. W.; Toronto, Canada I ment" foil and enclose payment of herewith $5.00 '•£ same. I '--■■■ (Please Print ' r • ^ thi 1" 0 yt f Jt- .4 *01 + Private leased radiotelegraph circuit SAN FRANCISCO Regular subscription rates— $15 (25 Issues) $30 (50 Issues) , 'i • % • IOS ANGELES • ■ j « Two of the Chicago Board of Trade and other leading commodity exchanges . PORTLAND • HONOLULU • NE,W YORK .# AI^D 6THER to ume Honaluhr ^i CHICAGO ' Although building permits alone were valued at $56,474,685. This last year, for a loss of 36.7%, and with $50,783,539 in January, for an increase of 11.2%. •• ' / Address_ /If Exchange^ Son Froncisco Stock Exchange Honolulu Stock Exchange Plainly) •"" compared with $89,172,555 in February of lot Aligelet Stock Exchange • MidwesttStock Exchange • American Stork Exchange Name J New York Stbck " New York City ——Y Memberi In « — permit valuations in February exceeded those of the previous month, volume fell slightly below the com¬ parable 1956 level. The total volume of permits in 217 cities, including New York during February was $432,407,002, a drop, of 1.2% from $437,782,749 in February 1956, but rose 3.0%/above the January total of $415,994,396. ^ • BOSTON PACIFIC COAST V. . • t'lTIES . was eight regions reported year-to-year declines; vol- the Middle Atlantic States and Mountain region; * fell 28.3% below last year in down 18%.in .the SEATTLE New business incorporations decliiied in February in accordContinued on page 34 * u>/j* ! j /. - '• Volume 185 -Number 5628 . ... ...... ,, ... The Commercial and Financial Chronicle $ dew joining club, "or doingvany-, after" Presidential statements nr^ here, peace is indeed being ex¬ ~n ■ no doubt sensational and ; journal-* ploited as a phony fiscal issue. istically devastating. But insofar A Cow Not So Sacred Then 9 Irt Paterson, N. J., Oct. 16, 1952." * as they are concerned with Inter¬ 10 Headlines, N. Y. Times, April 3, Regarding his national affairs, they take on im-~ 1957. presently un¬ ' touchable budget pet, foreign aid, plications of a more serious na¬ a new , thing else".8 . . , - Mr. By A. WILFRED MAY Eisenhower Knowland) PRESIDENTIAL CONVICTIONS V of the BEFORE AND AFTER the of most ocratic . Moving ties sufficiently Clear.'. The President is visions these statements. merely .lows I pre¬ more sent the facts.; We advo¬ A. Wilfred May- and extravagant point of sheer folly. 7.7 - ... to currency be preserved all at ♦ speeches It stated is years in mywithout kind in the platform, and announced. piy unqualj- f tion , - platform. - •.._7-";, . "The try; businessmen, of the have and . r J v the have we: 7 .. • 7 : what United . f7 ' . coun-; No . . •' curities, announced L. Moffat with the Gov-: Federal has firm Agency se4 that; Donald become associated, Vice-President as in spending is or that obstructs the does not to stick States and it peace? one charge- of the Chicago office,231; South; Lay Salle Street; Mr/ thrift If he Moffat conclusion was formerly an C. F. Childs & Co. i officer of / / 7 / ii '• Sign Documents Covering Offering of European Coal and Steel Community ("*» 771 -j - 'advance- statement of transcends mere journalistic tour deforce, or even the exigencies of political expediency. V /. /Particularly in the fiscal sphere does the display of inconsistency seem to stem from the Executive's undergoing of an over-all change of principle and philosophy during the transition to office. After his nomination at Chicago, Governor Roosevelt 7 secured his brush-up hower months ago States/v it United ernment Motivation., jLv/ going to y do : about the spending mess? In a pin-pointed Program; he would, he promised, establish (1) a sound dollar; ana General within foiir years, thus making going off the-gold standard, way for a substantial tax reducThis/ as has been clearly shown /tion to restore the'incentive to since, was a1 libel on the credit expand production.5 ■ i~ *7/7 the - Eisen- was from of Is v in — Aubrey. G.\ Incorporated;: spew basic principle;.and later perform^ period ance are really not .at all simple deficit or clear- Surely their significance .The Pln-Pointed Program to J maintain some : between their financial solvency and-"integrity,- were told in Des Moines,/(2); reduction of government Iowa, how ..close an escape the spending to about $60 b il l i oa country had had cialists 111. Co. -7 to-4the left that economy . And ,.-7/7 battling *hard o{ knovvn»4 .7 ; s ^ that, misrepresent a-. . Lanston & -t , . v run over a cannot push you deficit upon qualification £ie4, ; ^ The implications of such con*' tinuing andbi-partisan contrast in the long in Enghsh; three times CHICAGO, «0ur form of government means ^+hVr.<J hie1SKii nstated +"5 jVthat Jh g, has been he plain reasonable explanation than yet had, appears reckless ? "sound a trgditionv^^"^ , - ,, * y) V-'* see an expenditure • ,that, an the absence of'a-.'^.-?'; w^Thave any . cate seneasy the-.very best Roosevelt-Harry >-T^;We; program Of Aabray Laasfn hower ,/saw. over-spending as a threat to peace—"I do know this. We can't afford what We're spend-' ^And so on—with the subsequent shaijjly contrasting performance our tion of the Democratic AdministSration to .the fiscal area; as.Jol-; going to char¬ acterize farther and fafther into .business"?, harrowed, his ekcoria- not am hti.cal opponent,, he also very sibly observed, "It is far too — nose of rubber dol¬ I to up substitute for a plaining that "we have gotten into ;° blame it all on Stalin. I know the habit under the leadership of solution to the economic-ills of Washington of;, passing all',-prob-r the .free, world does not lie in one lems to Washington;A:ahd !Wash- nation's ^makingpensioners » of ington in turn stretches.-its long other nations. not been made lars. Re-Run the nineteen fifcandidate Eisenhower (of the Republican party), after comi posi¬ tion in regard, to money has seeing Our Mid-Century must find Donald Moffat V.-P. .7. 7;v.7.yy previously Mr.: Eisen-' . , <■ we Whereas ing and stay strong enough to lead the' purely temporary business of the world toward* peace" 9—now, bolstering free nations through in complete contradiction, he a n n u a 1: hand-outs. ; That gets "Calls High Taxes Price Of Last¬ neither permanent results nor real ing Peace, Links Budget to JTA611^8, Further needling his po- Peace.'no ing and taxing and spending and spending". v commonly voiced misrepresentations by Republican speakers, including the President, has been the - claim that the Dem¬ year, berated his pred¬ /thus: "certainly- I know 7'"7;v-. ture.. . same ecessor that "One' Senator (not at the New " York Herald Tribune Forum on Oct. 21 / re-* And—"under your orders this is oh'monetary and fiscal intricacies from Professor H. Parker Willis, Carter* .Glass- technician in the founding of the Federal Reserve System and the inflexible spokesmen of the nation's hard money -Rene Mayer, President of the High Authority of : the.European and former Prime Minister of France (seated, center) at signing of documents covering the first Coal and Steel Community publi^f; promise, bodied in dubious United the yes covenant these securities the President as States claims „r Let us deficits. was as toll the of it was/'1 '• have worth of service for every tax dollar. We will reduce the double em- to courage On are the of some unequivocal explicit statements the to anxious era. us citizenry candidate - of by keep of n0w credit being his country's committed by him- on tc will so strong. us few a and pay, make It is billions more - $71 billionl his tions, not any careful predelicmaneuvering by his own brain-trusting; recruiting of^ officer Mo?uy' on many eluding the lowest, ten to the individual ma<te the ooint this we that and national rlI^» 01-a .third term, that has great—is with The First Boston Corporation and Lazard Freres & Co. headed ; the underwriting group that offered $35.0(10,000 bonds and botes Seated, left/ are Heinz Potthoff, Authority, and .John M. Schiff, partner' in Kuhn, Loeb -& Co. Standing from left, are: Paul de Louvrier, director of the High Authority's finance division; Hans Skribano-u witz, deputy director of the finance division; Edward Townsend, • of the Community member of the on April 9. High Vice-President of The First Boston Corporation; and Andre Meyer, partner of Lazard Freres & Co. f Sale of Motor-Vessel The ' ITALIA" i'>-'■ J " zione, . simply by comfort, or ^ ^ 9 9 ii y? • Does the explanation lie in the lust for P°wer; m the furnishing oi a{bureaucratic satisfaction; or ! fiiiil . ' , have got- offering of the Conknunity's securities in the United States. The*: signing took place on April 8 at the Offices of Kuhn, Loeb & Co., investment banking firm, 30 Wall Street, New York City, which ^ ievel•. Bland ascription to political demagoguery is insufficient; it Political P^8Pit through the bar- be incentive— nation lnternational many incentive rtreat J levels, in- Americans, but certainly in instances and s does not' for examPle» give proper weight to the comP°nent of sinpre-Election; Nor, as now, to a President s newly-acquired might squeezed out of the tax pockets of the tions with "libel" taxes."8 f the Treasury's cash "take" during the that vear was—slishtlv less than another Presidency * lost no time in taking us off the gold standard; repudiated gold obliga- ancj possible that After Nov. 8, 1932, as some of can remember, the new in- cumbent and heeds/now; offered Defense capacity our of principle in the fiscal and monctary area aggressively submitted Presidential prices * What, then, did cause the subsequent in-office change, m RooseByrd-said: "frugality/efficiency, ve" as in Eisenhower, in philosinformation, knowledge properly from frugality to passion for used can bring us a defense orever_biggcr government with the ganism that will be balanced with accompanying spending, on both Principles in Transition and high the indestructible obstacle to thrift, the candidatc-not Senator stop Stop the deficits." 2 These of lowed deficit for an eight-year uninter* giving up- material The Special Involvement of Peace rupted string of peacetime deficit-: 1 * "• '7 v /-r rJ ; The demonstration of contraeering. -under the franldy ex-" - a At shreveport/La./Oct. is, 1952. ' dictions between the "before-i pounded mis-deal purpose of "tax^ " »^te.rAo?.'. -sy Oot■. ,'i;v\v ,t- ?h A '5 In Peoria, III., Oct.-3, 1952.> 8: In a ^ ^ speech- before the Washington .-t f i<r !; > • ■ j'i../,6In New Orleans, La., Nov. .13, 1952. Conference of the Advertising Council, v per Azioni di Naviga^ V 4 '-/be' is offering for Isale, by international ; , /tender, the m/v "LEME,,? gross tonnage ;7. V - 7-77 - 8,038.97, net tonnage 4,902.87, in accordance with the terms ancL conditions 4 " 7 specified i , ,. • - : ;//• 1 1 From; the in a- speech by Academy .of F. £>. Roosevelt; Music,. ; ' / 71'4 P»t)er«on/;N. " . - » In Oct. 16/19521 / v K-^4 2 the invitation to file purchase tender 'dated; 7t v-r. • ; , April 3, F957C 77/VV^t * ■- 11 niBM 1 V. . SB E .'.'•Jtv/'o •. assI hi SSj irr=t=^' 1 February 6th< 4957 the text of which is avail- . ' ;';.riv ableytov applicants at; it he' Company's flead^tfH' Albany,--N. V, July 30, 1932/ ;// Office, Piazza De Ferrari 1, Genoa. Are Yonr Records Incomplete? »■; 'i : 'V:&£ ' Primary Market Maintained 7 7 Offers should be in \\ -p.fr.W-' f/ .the >"/:/• t: PYRAMID ;• Sets of "CHRONICLES ' of r ' ^ VT>I 4-73.30 '-VV 7r as follows: or S.p.A, 4i *avigaii©ne^Wazza Da Ferrari, 1 "/ TELEPHONE*: Nos. 27.041—23.391—23,771 Phone REctor-2-9570 St., N. Y. 5 30th/1957; Various Dates From 10 to 50 Years > r April should be addressed Available in New York City—Write 55 William : / , : / V Applications for copies for the invitation .. ; 7 v \ nTAkWT MEADE & COMPANY i , A ;Number of Beautiful ./;• Annual Bound REPORT AVAILABLE of A IC filed with 7 / Company within 12 o'clock /./;./ 7 ' v. v - 7 - / Edwin L.. Beck^ 7 ; /c/o Chronicle. 25 Park Pi. X. Y. 7 - < *■ >.yj' y • ' ! CABLE: ITALMAR—Geooa - • » *7' . * ;*7'7f 6 The Commercial and Finaw:ialChTonicle^/T ThursdayrAprii-llr 1957 -v (1694) the course of such industries.- In time, however, continued, expan¬ sion of demand will absorb the Policy and Philosophy In Face of Long Run Inflation Investor Professor of Finance ' School of Finance and Commerce The Wharton 1 University of Pennsylvania - to inflation I: i o u f I a t i i s mil¬ lowed ities. 4 s fol¬ usually itary nn o hostilThe in¬ flations were stopped by deflationary depres¬ Previ¬ sions. inflations ous almost were in character; the price rise was associated with increases in the supply of money. entirely definitely for as long a period as mind dares to predict monetary there in¬ re¬ of and 1941 tween Thereafter 1945. supply of money was not Indeed, the supply in lationship to the demand as flected in national product national price level, tinued to re¬ and declined. The nevertheless, con¬ income rise. The inflationary forces in the last decade reflected primarily increases in the price of Jabor. The inflation has continued under both Democratic and Re¬ publican administrations. The in¬ flation was initiated by Roose¬ ; which which have in are a an condition. unenviable than Over-expansion is likely to oc¬ cur in growth as well as in nonfactor, second only to growth industries.- In the former, the increase in labor costs, is the however, the demand will, in the increasing demands made upon course of time, catch up with the the Federal Government by an in¬ increasing supply. In the latter, creasingly large number of sec¬ in the non-growth industries, the tions of the population. These excessive supply is likely to last groups come from the ranks of the for a long time, and perhaps in* t farmers, businessmen, state and definitely. city governments, schools, vetTo investors and investment of¬ ; erans, unemployed, retired folks, among others. Congressmen and ficers, the inflationary-deflationSenators champion for economy ary-new style-new deal economy a number of unique in general, and even more vigor¬ presents problems. - Growth alone in terms ously for local Federally-financed of potential increase in sales is improvements, including shipping becoming an inadequate base for |and shipbuilding, cane sugar and investment values. Some of these il>eet sugar, builders—both of resi¬ dential structures and rental i'acil- problems are presented herewith. • ■ ' a talk by Dr. Grodinsky before Pennsylvania Bankers Association t'jfrust April Conlerence, Division 5, tiarrisburg, 1957. First* high labor cost industries should be avoided. Second, labor-cost high be TRADING MARKETS FLORIDA Industrials Invest in - * \Si Florida's Golden TRADING Triangle DEPARTMENT TELETYPE MM51 indus¬ strong financial & D. LAURENCE company INVtSTMWT SKUKITIIS I at is, 201 S.E. 1st Ave. Miami, Fla. |Phone: Miami, FRanklin 3-7716 in my cash excessive zation ■! ol n, , wi common .. example. an Third, five , . _ ".aefaults . a every industry because of heavy investments in plant and equipment is potentially liable to over-expansion. ' Fourth, static over - in expansion declining industries is almost fatal, to the cre¬ or serious, investment ation of street railways, leather, cotton and textiles, railroad freight values: e.g., woolen cars. - ' so to pass to favor the to for tween dividend a $1.20 year-end. and ,110^ a d^,C$ intend steps of wbo in to follow the/British their the foot in and exercise - cf this might before'the have there growth in been moving that and way is still the glaring fact that is sales, earnings, and dividends/ On has been given $200,000,000 to pass this out .there is no -growth. in to decline in the ratios a in Over-expan¬ can basis, the shares, growing industry.leads available around 22^2, in sion a expansion the price-earnings common - stocks of ion, acceptance out¬ appear attractive. -~ ~ the recently my speculatively 415,366.28 —.—,— 483,210:33 assets ASSETS $74,569.^1.17 * Demand uals/ —" — LIABILITIES, ij..'.' .' deposits of Individpartnerships, and ' ; - corporations '-X-—'$49,092,154.84 deposits*of individuals; * Time "and" cor¬ —,__J J!' States partnerships, porations Deposits of 3,258,921.84 United '\i "Government-'- J1 uc 1 u d I n g 1 posfal - savings* Deposits .of States litical and po* subdivisions; , 1,025,000.00 12,870,268.96 J- of* banks " Other, deposits (certified and /.officers' checks, etc.)' _i_ total ..'V ' ' >•> 1,374,255.8.5 DEPOSITS $68,016,925.23 - '■/ *' 396,323.79 • Deposits ■ . ' - v ; Acceptances executed oy or for account of this bank 464.878.75 outstanding |—1—__ and liabilities Other TOTAL 389,467.35 —'' $68,871,271.38 LIABILITIES opin-c that most, • Eisenhower in the Middle tire program rest is to of be Administration East. the But ACCOUNTS CAPITAL f Suryl'is ■- 335,628.79 retirement preferred, (and account, for .capital) $3,697,919.79 ACCOUNTS put on a business-like basis, may- r TOTAL LIABILITIES AND $74,569,191.17 CAPITAL ACCOUNTS ■''This stock jr»n 000. capital bank's and notes conFi ts of:-t*apital debentures $1,000,000 and coinwith Wtal par value of $1,500,- - MEMORANDA . . Assets pledged secure other or /. - assigned to liabilities* for and $3,737,366.59 purposes "ChAiles F. Bailty, Vice-President of the above named bank, hereby certify that 1, above statement my knowledge and belief. * . F. BAILEY . " c Correct—Attest.: Frank . to the best of is- true the -.. or " - f. > 162,291.00 CAPITAL TOTAL give-away harnessed, * ' - CHARLES now " J - profits Undivided Reserves ' $2,500,000.00 2,700.000 00 Capital -'' j French leadership used to pass out gold willy-nilly to dissolute leaders of other countries. * Certainly, we longer term, visualize further getting down to are pansion in the growing industries Without on ./ Con- aid, but it means that at we WJ rate of he- $1.40 Over the in reduction much tion to the taxpayers' pocketbook. It would seem to mean, too, that continue shareholders with redu^ed. earth and giving some considera- aver- the board of liberal dividend policy, one fook fantastic probeen dreamed I essential. this standing Other our economic jas^ disbursed last year. inclined be have Sress' appropriation for this year's _ should and 445,967.81 to liability ' Should my earnings forecast come directors , $189,090.89 in until the borrower the and which mean aged about 60% .of earnings, with 67% being 33,733,779.71 $4.157.38-.overdrafts t Banic. premises owned $256,870.92, furniture and. fix- TOTAL professional spenders The projects will being preceded have to have some merit. It is than $3 million doubtful if the new approach will dividends have years, 126,000.00 (includ¬ ing ...n f b the,,5,918,655^ . the. Fted* 1,296,567.24 stock Reserve. Bank Federal bank "apparently Dulles' plan apparently Diu es p « • sbghtly,, position.. Gapitali- sound, is t pos opinion, made'by this district, pursuan t Loans and discounts Customers' com^e* bade unde^the econom.c^K The call a Reserve bank "of J.' tares new easily possible. close of published "lii at 14, *1957, anu last ridicule whether loan, he highs in both sales and earn- contended, we arent going to .get ings in 1957. Although earnings, rJbe money back. Well,-a lot of for the first quarter, ^seasonally Jenders do not; get .their money the least important, are expected back but in such cases the borto be only about in line with last rx>^er doesn t - any .E?°^ year, in my opinion^- a Tigure'' of, Jwoney.^Very likely there will be $2.00 per share for 1957 earnings-^ of money wvhich we won w with the of member a System, „ March accordance oral Y.. N. Reserve baslnes.s e>! March appears OF - industry Fifth, plant and equipment ex¬ ALFRED This^ Ts anticipate more" Add to this a 9% price increase -insti- ~ - Capehart s . opponent • 1,-and a -continued'" Fall's campaign sought,to expansion of bottling facilities, bis plan. Regardless of and one may readily anticipate ^be iponey is a gift or a tuted York, New Federal currency/with which we can buy Jbeir strategic: materials He wants Lhe program^to be c-ariied out in conjunction with the Expo t- - tries, faced with the possibility of rapid sales increase and suscept¬ by only little more ible to mechanization thereby re¬ of long-term obligations^ On this ducing labor costs afford good inbasis I would anticipate liberal vestment opportunities. The .■• • dividend treatment.. Over the past mechanization of the coal is Hank, Insurance Companies, to . Company of J concentrate .. SECURITIES at normal weather. shaies f . Difficulties are present, and it would reasonable uu CONDITION OF na- n, Colonial Trust F^om undevelopedcountries he is .wilhng to take «qft exchange foreseen and v i « ^ a « ic tHose countries which, are able to, . disturbances 4n- that- direction. No similar verv a - three-year a is He us; business, increasing command attention , credit for his long fight to -the money Problems Unique ♦From tSince the /Capehart's attitude has been that to the provisions 6f the Fedeial Reserve Act.: '■ y..'> IVjT he wants to resist Communism assets but he doesn't think we command Ca'>h, balances with other ' any. respect from people to whom banks; including reserve /. balance, and cash Items in we just give money oulright. He process of collection jit,912,353.55 wants the money to be loaned for United States Government obligations, direct .A-—-. 18,429,509.26 worthwhile projects on reasonsble terms. He wants the Toans to | obligations;. of States and 1.726,436.99 be repaid", in' hard Currency- by |.^ppii,.icai .subdivisions ^ labor .goqtract was signed, it may .be anticlpated that 1957 will witness no. .-. hin REPORT * $1.50 in the latest year, .The other the ; with deal fortune out of a not mis¬ now/ confronts that , a put some sense into the give-away program which was supposed to end after the rehabilitation of Western * Europe but which has ' has those salesmanship, Hejs a ver^r will are pretty is to to judgment that in his third term ://'■- " Indiana. Senator de¬ the serves ' Congress back sound.-and able man and it is my well fed up on it. - a v velt; accentuated by Truman and tolerated by Eisenhower. '/ adversely affecting earnings. Finally, circumstances in several foreign countries brought on currency restrictions which/in turn, prevented bottlers there from* receiving normal shipments of concentrate. Thus, while; sales rose from $89 million in 1955 to $97 million in 1956, profits declined fwm «1 fin chsirrr' 1^*19SS tn from $1.60 per share irf 1955 to period of stabler and declin¬ ing prices. The over-expanded industry can no longer reduce wage rates. Its costs are more in¬ flexible than in depression.' : in f ; gone on and on in the guise of temperatures were- developing backward countries so far below those of the/preceding they ; will resist Communism, productive capacity buying power Their fate is more dangerous He made . the- country \■>' receiving 2 Security . of current excess •/■>'?*' ^ to and his* attitude but situation months mer these under takes I hark to Carlisle Bargeron of members mail — —— I Like Best over-expanded, have and been . un- year, Industries in simultaneous the of The ' conditions theless it But ings. goods. Wars session of Congress. at this that, he is neither. are opposed World resuit a is not'a case, however, of enlightenment' having come to the Secretary. It is about the only Continued from page earn¬ creased. particularly in the war years be¬ for out was' , and equipment. This has been financed largely by the use of depreciation reinvested has eg Ag taken r— program and j 1 jt of his views, our entering 'II, not with-; standing lie served in the former but/we got into the wars never¬ lG Thus, investment policies and investment., philosophy must take expan¬ sion in plant allowances u come He folding of inflationary and defla-- way the foreign economic aid he lionary forces.,,,,...: •• program" can be saved. From the . Concurrently with the progress the in an orthodox way with heavy in¬ creases in the supply of money began D industries, st an V/The facts industries. account The percentage of earnings paid in dividends during the post¬ war years has been considerably below previous, experience in times- of prosperity. There has thus developed both a rapid in¬ crease in costs and in the supply inflation current The , t He' contemptuously isolationist and reactionary because Secre- Now , this uncertain world. rapid as lot of a labelled has been || basis ioail influences, growth of thinking in way higher personal incomes are this step in reflected in & growing list of new, t h e r [ g h t expanding and prosperous con- direction will sumer goods and consumer.service probably be / the human a of this last the the Eastern press. abuse from these These cannot be so insidi¬ ously exorcised. Investors must assume that they will remain in¬ has also occurred of terms In These new in¬ of these inflationary factors, inducing depression omy. in be this matter. He has taken ovpr*' the substantial widespread rise in personal incomes* lias aided in retarding the curttulative character of deflationary- insidiously introduced into the national econ¬ busi¬ of ness Julius GrodinsKy the in forces form will d.'sm£f6- a n Other Eighth, been have fluences manufacturing equipment. aid and put on be controlled etary authorities. example, For wars. expanded growing industries can-" " a v e foreign not prevent such price wars. For economic aid example,, television sets and do- s e P a r a t ea from military mestic appliances., * 1 ,Vf inflationary forces by the mon¬ These novel cannot price i'arm What Investors Must Assume Pre- trend. v some automobile should consider. in- f1 atio nary this be Jo Senator Homer Capehart of will get; Indiana. For 10 years he has been ! jjke to see Senator Capehart finally bring the Administration * 1 g h t i n g around to his vent have been' ities, and numerous businessmen operative since 1939. This is the who, adversely affected by'com*' longest period in American his¬ petition, demand tariffs and im¬ port quotas. tory to record a continued unin¬ terrupted persistence this sheer growing industries can j control their selling prices. They can pre-i forces Inflationary For correspondent takes his hat off kind of money the Administration Dr. Grodinsky lists unique investment policies. on of the News By CARLISLE BARGERON over-expanded Seventh Professor in discussing effect of t inflationary problems investors ,f Ahead aiunhnum extrusions. longer, uninterrupted inflationary trend period is attributed labor costs and increasing demands made upon government Our by Wharton School Finance ' -•* ... in growth, industries may be accompanied by heavy declines in selling prices of" goods and services, ana in prof¬ its. Examples are alforded by television sets, rayon staple andSixth, over-expansion GRODINSKY* By JULIUS rj From Washington * productive capacity. E. S. B"ebe F. Rinkead John S. Everts ] /Directors y~ -J Volume 185 ...Number 5628 i The Commercial and Financial Chronicles ... - . (1695) Lf" i'-'f'-t ri." V •- * ■' 1 s 7 I"*" (JACKSONVILLE, FLORIDA) Expressway Revenue Bonds, Series 1957 X, ? ' 4; i- A, , Dated ' January 1, 1957 :-v-vV-/\ x. -*-'XJ 1 Principal of . - t * i t-v' ' V *-•» •* *■ -■ and A ' Due each July 1, J ■; semi-annual 1. - shown below as • * ■ ... ._ . interest (January 1 and July, 1) on coupon bonds payable at the Guaranty Trust Company of New York, New York City, or at The Barnett National Bank of Jacksonville, Jacksonville,-Florida. Principal of ^reg¬ istered bonds payable at the office- of the- Guaranty Trust Company of New York, Trustee, or The Barnett National Bank of Jacksonville, Co-Trustee under the-^ Trust Indenture, Coupon bonds "in-the. denomination of $1,000,-convertible into fully reg¬ istered bonds without coupons in'the denominations ;of $1,000 or multiples thereof. ? Coupon bonds and fully registered bonds, are interchangeable as provided in the Trust Indenture. >:,:■/ 'y-f.' X, /v-r_ v /Vyy; .X'* />>' V'///'/.'/ ... ,1*.: bonds coupon • V 'V. V. These Bonds may inverse order of date be redeemed prior to maturity, on 30 days' published notice, in part (in maturity) by operation of the Bond Redemption Fund on any interest July 1, I960, or as a whole from any moneys that may be made available purpose at any, time on on after July 1, 1967, at the following prices and accrued on after or for such interest to the date fixed for redemption: ; L' . Redemption Price % For Period ■< July 1, I960 v_ * i to .;/... \ y ' July 1,1964 " " July 1,1967 " " " : Jwiy 1,1970 ">• M " July 1; 1973 M July 1,1976 H " July \i 1978 M " , • "• / June 30,1967 ' June 30, 1970 • Fund ..../.. . • .... . .. Otherwise 103 •102 June 30,1973 104 10U/2 . June 30,1976 June 30, 1978 .) ;•// June 30,1980 1031/z * 101 f 103' ' 100l/2 1.00 ■ ........ June 30,1982 ;. 1..,;v...-. '.'•••■ T02l/2 102 100 ri 100 ' ' / 'iif- 1980 Interest Exempt, in the .opinion of Bond Counsel, from all / • Bond Redemption V - July 1, 1982 and thereafter' •■••*. : and including June 30,1964 ' V? ' .■ 101- lOO/"" - v present Federal. Income Thxes. .The Act » provides that the Bonds, their transfer and any income therefrottif (including any1 profit made on the sale thereof) are exempt frqrt}^ taxation, within the State of Florida. ' • / Guaranty Trust Company op-New York, New York City, Trustee v v The Barnett National Bank of . -.-Ad :?■ . Jacksonville, Jacksonville, Florida,- Co-Trustee These ; * AMOUNTS, MATURITIES, COUPON RATES AND PRICES - Bonds are to be issued under-and secured by the terms of a Trust Indenture, dated as of January 1, 1957, and pursuant to Chapter 29,996, Laws of Florida, 1955 for the purpose of refunding certain outstanding bonds issued for the construction of the Jacksonville Express¬ • " ^ Amount 'Due 100,000 C 200,000 Coupon Rate X ^ 1961; $100,000 1 ' "" X*Amount •' Due ... V""' I / v; •" T' >1--' SCoupon /' r > 1963 3% 33/4 33/4 33/4 33/4 ' 3.40; ■ ; 1968 • $ 600,000 * 1970 3 " 3.30 M969 500,000 ; 3.20% 33/4, »1967v 400,000 " Yield or -3 %% 1966 400,000 , 1962 1965 ; 3oo;ooo= Price Rate ;• or - way Price 1971 700,000 : 4 -1972 800,000 90% 3.90 opinion of Bond Counsel, the Bonds are a as presently special obligation of the Jack- 100 \i 900,000' ; 3.60 1,000,000 . 3.70 1973 *4>: / 1974 - 1,100,000 1975 1,200,000 ,1976 . 3.95 - 100 3.90; 3.80 3.90 3.85 1,200,000 > a ; ioo 4 , 4 >>-SV . or ' 4 1977 - 100 .. ; . 991/2% . (Accrued interest all legal proceedings on behalf of the Authority. It is expected that Bonds in definior about May 1, 1957. the form will be available for delivery on V be added) to are offered for delivery when, as and if issued and received by us and subject to the ap» proval of legality by Messrs. Caldwell, Marshall, Trimble & Mitchell, New York City, and Patter¬ son, Freeman,. Richardson and Watson, Jacksonville, Florida, Bond Counsel to the Authority. William //. Rogers, Jacksonville, Florida, General Counsel to the Authority, will approve maturity / to , - power These Bonds V ' yield approximately 4.28% to taxing of any or / . 100 manner provided in the abovepayable thereon will not constitute political subdivision thereof, or a pledge of the credit of the State of Florida or of any political subdivision thereof. debt of the State of Florida .100 / . '* pledged for their payment in the mentioned Trust Indenture. The Bonds and the interest A-3-95% >- v 3.50 and Gasoline Tax Funds 100 V f" ^:$60,000,000 414% Term Bonds Due 1992 / Price System and to provide funds for the extension of said Expressway System constructed. In the Yield ' ; 200,000* .,>1964 300,000 $10,000,000 Serial Bonds'? i ■ , Offering of these Bonds is made only by means of the Official Statement, copies of which may be obtained in any State from only such of the underwriters, including the undersigned, as may legally offer these Bonds in such State. 1 J , ' 'V''"' ' ... *.w.,... Blyth & Co., Inc. v - - J Smith, Barney & Co. .» ; i - • . .. '* •••-'.• - f v. Pierce, Carrison, Wulbern, Inc. ■. •. •• . Harriman The First Boston Corporation •*Halsey, Stuart & Co/Inc. , . Merrill / ; v Lynch, Pierce, Fenner & Beane *: .. „ Salomon Bros. & Hutzler , Leedy, Wheeler & Alleman Phelps, Fenn & Co. v Eastman Dillon, Union Securities & Co. Incorporated . Paine, Webber, Jackson & Curtis^ Glore, Forgan & Co. White, Weld & Co. ' A. C. Allyn and Company Goldman, Sachs & Co. B. J. Van Ingen & Co. Inc. Bear, Stearns & Co. R. W. Pressprich-& Co.- Bacon, Stevenson & Co. ■ Childress and A. G. Becker & Co. ... Company , , Incorporated Shields & Company - _ - * Blair & Co. • Ira Haupt & Co. F. S. Moseley & Co. Stone & Webster Securities Corporation - .. • y Hemphill, Noyes & Co. R. S. Dickson & Company Incorporated Incorporated . .. Weeden & Co. Incorporated Equitable Securities Corporation v ' Estabrook & Co. L. F. Rothschild&. Co.F. S, Smithe^s & Co. April T<), 1957 . . Reynolds & Co. ... •: i Lehman Brothers Kidder, Peabody & Co. Alex. Brown & Sons ■. Hornblower & Weeks Ripley & Co. Incorporated Incorporated r . i ■ . Drexel & Co. j Dean Witter & Co. W. H. Morton & Co. Incorporated a Wood, Struthers & Co. e Financial Chronicle The Commercial and (1696) 40° temperature, so that juice holds its perfect flavor. It is then put- in paper cartons and delivered by the dairy companies along with the morning Carborundum Co.—Memorandum—Green, Ellis & Anderson, 61 Broadway, New York 6, N. Y. milk. Chesapeake & Recommendations & Literature it it »end Ohio Railway—Annual - report, with a 24-page / pictorial report of two "Chessie" stockholders who made a tour of the 5,100 mile system—Chesapeake & Ohio Railway, 3809 Terminal Tower, Cleveland 1, Ohio. //. .; that the understood to interested firms mentioned will he pleased parties the following literaturex f ,7 ;Atttoic ■> . Review—Survey—Harris, TJpham & Co., 120 Energy Broadway, New York 5, N. Y. Atomic Letter (No. 25)—Comments on ., expanded atomic power abroad including Euratom, naval program for six atomic aircraft carriers, official AEC estimates of uranium demand . supply, South African uranium ore reserves, Newport News Shipbuilding & Dry Dock Co, and Foundation Company of Canada—Atomic Development Mutual Fund, Inc., Dept. C, 1033 — 30th Street, N. W., Washington 7, D. C. ' Burnham • of El Minerals and Oils—Introductory Via Rights — In Comment, Ltd., Securities the April issue of *'The Ex¬ Metallurgical./ , <■„/ : Insurance N. Y.—10c per copy; $1 per year.- Also in the April issue are articles on "Shell" and the Suez Canal, and "Appetite" com¬ Advisory Aid Hutton & Letter for Haupt Tax Exempt Co., & on Ill Broadway, — investment Current information Clevite National program—E. F. — Company Pacific Gamble 4 / Corporation, particular reference to ABC Consolidated Foods, Penn-Texas Marine Texas Thomson & ";Vv.f^ Mining Stock Reorganizations—Booklet listing 990 changes in Quotation Bureau Averages, both as to yield and market performance over a 13-year period — National Quotation Bureau, Inc., 46 Front Street, New York 4, N. Y. Co., 120 Broadway, New York 5, N. Y. •/"■■■..../ Secretary, Penn- Com¬ Penobscot Building, Detroit 26, Mich. Gulf Sulphur Company—Analysis—First' Boston Cor¬ poration, 100 Broadway, New York 5, N. Y. ; Western Natural Gas—Analysis—Shearsori' Hammill & Co., 14 Wall Street, New York 5, N. Y. . —: ' . • .— industry's immense is success advertising to price guarantees. Asks why cannot the farmers do the thing with their surplus Allied & Laboratories, When Inc.—Memorandum—Barret, Fitch, North Insurance member horse Co., 1006 Baltimore Avenue, Kansas City 5, Mo. American ... miles Co., 17 Wall Street, New York 5, N. Y. Also available is a of operating results of New York City Bark his Stocks for the first quarter of 1957. Bank Building Corporation of ' America ~ : • Analysis — Scherck Richter Company, 320 North Fourth Street, St. Louis 2, Mo. ' — father my buggy „ Company—Analysis—Kidder. Peabody & small very and away," to get corn, having perfect attendance for the entire school 15 for Those aunt. the days when no were Christmas was complete un¬ less we £ orange the toe we been hung by the fireside For Investment and Yield . . fore . bed on m a s Approx. Yield rem em later Cary Chemical 6/76_ - Dunham-Bush 6/77 WW........ - 8.50% winters I Roier W. Babsoo ber one , v . . given by the ; public school principal as a reward «for orange Fair,-Properties 5I//i/75.___ Trans-Canada _ was 7.00% DEPENDABLE MARKETS * Pipe Lines 5,60/87 5 shares.. x York first 6.75% & has as . as * 74 Tmmkjr -FUct, he* York 6, N. Y. J . „ -v great giving their products. luvestment Field (Dallas, Tex.) April 21-23, 1957 Texas of Investment Association—annual Group - -Bankers meeting " at Hilton Statler the Hotel. April 26, 1957 (New York City ) Florida to came Security Traders Association of New York 21st annual dinner at the Waldorf Astoria. gives Association the orange^ulce is brier Hotel. concentrate must melted some 10 - minutes serving. This has caused .- / - a . Sulphur / ■ // . May breakfast. This means that frozen > Exchange Investment^ Bankers Association Spring meeting at the Green¬ ; well drunK just Stock ing at Jefferson Hotel. the the health of the entire nation. of May 8-11, 1957 (White Springs. Va.) - • .**. con¬ as -, Firms Board, of Governors meet¬ was exactly \ , May 6-7, 1957 (Richmond, Va.) the fresh juice and increased greatly 17, (Baltimore, Md.) 1957 , . Baltimore Security Traders As- be .sociation outing at before Maryland. 22nd annual spring \ the Country Club of-, » . .. grow¬ May. 17-19, 1957 (Los ; Angeles, product Calif.), Z r .V '-J known as "chilled" .orange juice. .'V As. soon as this juice is squeezed Security Traders Association oi / Los Angeles annual spring party r ; fcorrr the orange-it is stored and ing .demand HAt^tr 2*2400 con¬ "mxxect'with wafefran<rtTu?roughIy CO. Security Dealers Association a like In "whole This taste before Hew I sumption of orange juice a- in in¬ juice with and the "frozen concentrate" same the 'Members: food orange little bitter taste. Some 10 years "MosT TROSTER, SINGER given only-, invented. ,7.50% their for materials raw EVENTS fruit" was shipped out of the state and sold. Then, about 25 years ago, the co¬ operatives were.: developed and some orange juice was then canned. This, however, always had ago. Food can market CO MING great improvements and de¬ ! When to ChristEve. as _ velopments in the industry. be¬ going be first and use wake Uncle find a on of heavy advertising, nothing can stop the demand for orange juice. Furthermore, there have of the which their the. farmers quit only tinued stocking Banks, Brokers, Dealers— are 1,000,000 boxes of oranges. In 1923, when I first came to Florida, production was only 10,000,000 boxes. This year it will be 95,000,000 or 100,000,000 boxes. With babies con¬ as in entire—State produced to surplus year. 1909.the tinuing I found an ix In Florida their / the Henry Ford and the advertising which the humble citrus growers of Florida his Salem, with dustry." Agriculture needs driving orange do national wheat, cotton and other products. to our south crying shoulders they leader same re¬ an crops. cotton, and otheT Henry Ford once said ' and products or I boy sick very comparison >. a of farm¬ group and "When me: great ' sis thing Sam's hailed by accomplish without subsidies can a surplus on products? financial analyst Babson to illustrate what cooperative action, research and in-'* corn,", wheat, up citrus thei/? by citrus by central /west By ROGER W, BABSON Florida which'% of close Florida Why cannot the farmers of .. I A Lesson for Snrplns Crops The do can same . most Florida the uniting in .co¬ operatives and getting the help of / research and advertising. The citfus industry has never had sub¬ sidies or price guarantees. It has fought its own battles without any limiting of acreage or government; Citrus Industry's Success— Trading Ranges—Study—Hemp¬ hill, Noyes & Co., 15 Broad Street, New York 5, N. Y. Treasury Series F & G Savings Notes—Bulletin—Park, Ryan, Inc., 70 Pine Street, New York 5, N. Y. ;« # of to show what ers loans on * chemicals", from however, am not telling this ty about the citrus industry/ / just to boom Florida. I am telling pany, -i ? I it s - non-refrigerated ^ form, ^/ Metals—Bulletin—Ross, Lyon & Co., Inc., 487 Broad- — ^ dustry. This gives Florida an ad¬ vantage over all the world. Texas ..Shaping America's Future—Survey of corporations allocating expenditures for research and development—Sutro Bros. & Stock Splits andComments — recognizing their great health- come New York 13, N. Y. way, obtained from records of over 10.000 Canadian mining companies which have been formed to engage either in the search for or development of mineral ore bodies of one type or another—Draper Dobie and Company Limited, 25 Ade¬ laide Street, West, Toronto, Ont., Canada. used in the National report / Standard Tube Company—Analysis—R. C. O'Donnell & names Over-the-Counter Index—Folder showing an up-to-date- com¬ parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks Annual ... also tilizer Co.—Bulletin—De Witt Conklin Or¬ — is the center Corporation, 745 Fifth Avenue, New York 22, N. Y. Reynolds McKinnon, 11 Wall Street, New Corporation America not sources. To get good products, however, these k countries must import phosphate and other fer¬ America—Analysis—San- • ' ' distributing it :v supplement a small supply received from Spain, Italy,. and other Mediterranean; - Analysis — Schneider, Bernet & Southwestern Life Building, Dallas 1, Tex. ganization, 100 Broadway, New York 5, N. Y./tpr - like molasses, and to its babies; to — Robinson quality will continue- toy North But centrated Building, Saiy Francisco 4, Calif. Yamaichi Securities — York 5, N. Y. j Tank Old Line Life Insurance Company of ford & Company, Russ Midland, Northern States Power and Petroleum Corporation America f, - . New Company, 61 Broadway, New York 6, N. Y. Priced Stocks—Survey with of North Inc.—Analysis—R. S. Dickson & Co., Wilder Building, Charlotte, N. C. / "7////,//'///;':: ■ v - Foundations— I-^ *. competition results V ' The, English ^ Government ? is buying the juice in a super-eon-» /'7->*-.. ; more value;. Company—Analysis—Swift, Henke & Co., Salle Street/ Chicago 3, 111. : ^ k South La 135 - Co., Ltd., Ill Broadway, New York 7, N. Y. Vending, U Marmon Herrington Hickman, Inc., 1957—Brochure Japanese Stocks Low V *' ^ :. only market for citrusf/, jliicesi. Foreign governments are /1 Miles Laboratories, Monthly bulletin—Ira York 6, N. Y. Investors jWest .Front Xi'■ in:--;'r, of ~ and citrus.. constantly/ improved increase. : America—Analysis—Robert H. & Co., 210 West Seventh Street, Los Angeles 14, Calif. Huff stocks. Investment iVz '"/■ » Company this of repoct~rEl -Paso. Na*-/;//- lation, /demand Georgia Pacific Corp.—Analysis—Bacbe & Co., 36 Wall Sheet, /. New York 5, N. Y.,l Also available tJ^. bulletin on Pittsburgh change"—Exchange Magazine, 11 Wall Street, New York 5» mon Gas Company—Annual Natural ; * and in keeping the price within v the reach of all families.. Hence, with the constant growth, in popu-., / /V/\ '. /Street,. Plainfield, N, _ Advisor, 80 Richmond St., W., No. "E," Toronto, Ont., Canada. Capital Paso All . in *//,"•/•"" / Federal.jOil Co.—Memorandum—Berry-8c^Co., 240 ment"— $5—Stock Market News & ; • /..JturaLGjis.Company,;E1 Paso, Te^ 10-issue trial subscription to "Stock Market News and Com¬ Equity •; /Corp., 80 Wall Street, New York 5; N/ Y.;> able is current Foreign Letter. House New York 5; N. Y. way, becoming home sites as production is decreasing. / . Douglas & Lomason—Report—Dept. CH4-11, General Investing — Canada's Treasure valuable r Co., 120 Broad- Douglas Aircraft—Analysis—Harris, Upham & View Monthly investment letter — Burnham and Company, il5 Broad Street, New York 5, N. Y. Also avail- < orange groves are Publishing Co.—Analysis—Abraham & Co., 120 Broad- :/ way, New York 5, N. Y. - *- ' V'- "• • '/• on result, the housewife, 10 minutes longer! taking like wild fire. - In bed is cially California. The latters state, however, is growing so fast: that Curtis '• and items and Company—Bulletin—Webber-Simpson & Company, 208 South La Salle Street, Chicago 4, Jll. ,: , •/ a Florida and the United States, yet there is competition between " Florida, Texas, Arizona and espe¬ Gas & 1 • of v Company—Analysis—Herbert E. Stern ////& Co., 52 Wall Sheet, New York 5, N. Y//I-. program * Oil / Although citrus fruits can be safely raised in only a small-part - Vilas & — Corn Products Refining , . Analysis — Hickey, 26 Broadway, New York 4, N. Y. Colorado , Railway Co. As lie can This . Chicago & Northwestern ; Thursday; April 11/1957 . the Inc.. 70 Pine /./ . at about Br? son, Inc.—Analysis—G. A. Saxton & Co., Street, New York 5, N. Y. Also available is a comparative tabulation of Public Utility Common Stocks. Black, Siva lis A Dealer-Broker Investment . for-a .new • Teletypes NY I-376-377,. 2TS ' . !-V DEMPSEMEGEIER ACO, /transported to the large cities of the North fn -refrigerated trucks : : at- the Palm Springs Billinore, Palm "Springs, CaRf. * ;. - .. - "Volume 185 NurrJjer 5623 .. The Commercial and Financial Chronicle . (1697) Air Conditioning Growth Is Inst Commencing By CLOUD volume—this category currently is the largest single segment of the conditioning industry. By way of contrast, the total air spent in 1956 for these applied built-up systems self-contained equipment and ers, Chairman of the Board, Carrier Corporation year-round . only undoubtedly make current records appear small by com¬ parison." After describing the sheer economic necessity of air conditioning for industry and government, and its bright resi¬ dential potential, indicative of its stature as a major industry, the author comments on the twin problems of tight money and inflation. Believes "stop spending" is not the only answer to the tight money situation and the "utter necessity of com¬ batting inflation/' Air conditioning much than more encompasses cooling alone. Air conditioning is the cleansing and is the control of it hu¬ ing. In the jority ma¬ of our markets air conditioning is accepted a a as luxury nor "frill," but a as structures now air were condi¬ estimate that 90% buildings, 15 to 20% of hotel guest and rooms about the centage of retail conditioned. And of thd same stores in are air than 50% more hospitals per¬ the country have at least partial air condition¬ lion; heating equipment adaptable to air conditioning, $638 million and all other, $575 million. v ing. I , think it safe to that say our ditioned structed. space have been con¬ TTie critical level of 18% reached about four years ago. And within the last four years 24 was billion in 1961. If a square non-air-conditioned building operated at In feet. , . and Dallas „• . Houston, for ex¬ competitive dis¬ ample, the cycle has been com¬ advantage today—and it is—what pleted. There, all major existing dimensions will that problem at¬ office buildings have been air tain five years the present a hence? All of at us time would prefer to patronize an taurant theater. Tomorrow your or air-conditioned conditioned. to Class In A (employees will find non-air-con¬ ditioned offices unacceptable. The trend is inevitable. fact, this applies in most large space res¬ metropolitan below areas the Mason-Dixie Line. In has Philadelphia the critical point been reached and conversion to year-round air conditioning in buildings because they have played a vital role in existing buildings has begun. Chi¬ I stress office the postwar expansion of in¬ our dustry. Since 1945, virtually every such major structure erected has included central conditioning. year-round and Cincinnati cago also close are the to break-through level. And other cities are moving up fast. air Competitive Importance And this, by sheer This trend is important—and let necessity, has made air amazing. .The typical industry me emphasize—important to both conditioning a definite grow.th» pattern, require¬ as you may. of us. It has become increasingly ment for existing first class office know,% is something like this: apparent that the more people There is first a long period of buildings, i <"/ . postwar sales trend has been economic , germination during which We prod¬ have formulated a rule of personally experience air condi¬ tioning, the more they want it. Now, each year in increasing are perfected. The curve then this manner: Whenever air con¬ numbers, they are spending a ditioned rises -rapidly office space in a city as market ac¬ larger portion of their time in an systems are used almost uni¬ ceptance accelerates. Finally the reaches a level of from 18 to 20%, air conditioned ' environment— remaining office versally for the complete air line stabilizes at a level dictated the buildings stores, theaters, planes, trains, conditioning of larger buildings, by certain forces—in our case by must also air condition in order buses, hotels and offices—just to new construction and to maintain Class A status. whether this takes place time of construction Business ne¬ cessity. Not Wampler the and than 1% more of all theaters, 35% of all motels, 27%. of class A commercial office or at These why—at facts more ucts/and distribution the Air fold Volume conditioning, despite its 60- volume increase ades, is still will help explain than $1 billion in systems thumb which seems to operate in replacement. later. as an economic markets—theaters tioned. We air; it is ventilation and Cloud of I would like to emphasize the significance of the applied or built-up systems. These are the midity and of installations assembled specifically temperature —job-engineered if you will—to which, of meet the particular air condition¬ course, in¬ ing requirements of the structures cludes heat¬ for which they are designed. Such circulation of two retail stores—where will of undoubtedly make total industry sales at retail, in¬ major existing office buildings cluding heating systems adaptable have installed year-round sys¬ to air conditioning, will reach $5 tems, adding another 10 million is were the ripe markets the future will last year's record appear small by comparison. I would estimate that systems Going back to 1936, there . . residential combined. Despite 60-fold increase in two decades, Carrier Chairman Warn pier opines "air conditioning is still on the lower reaches of its growth curve [and] the ripe markets of the future V or greater than was that spent on room air condition¬ WAMPLER * everywhere, 9 two dec¬ the lower reaches on of its growth curve. conditioning in today Although air to be seems name a few. New York City is a good exam¬ ple of this rule in operation. Since the end of World War II, 71 large multi-story structures with nearly 23 million square feet of air con¬ Each ences a of these markets influ¬ the others in the sense that person who works Continued in on an air 43 page in¬ key gredient for profit. In market af¬ ter market, the question today is not whether to New Issues install air condi¬ $27,4io,ooo tioning but, rather, which is the proper equipment to do the job? To a large extent this broad ac¬ ceptance has been the postwar phe¬ a Prior to World nomenon. War industry had proved its nomic in worth establishments tioning those where II industrial air condi¬ installed to improve or even make possible a produc¬ tion process. And air conditioning for comfort began to appear about that was time same tracting as a means more customers to New Housing Authority Bonds eco¬ of at¬ Secured under the provisions of United States By Act of Congress, these Bonds and Interest thereon . . depart¬ Exempt from all Taxation ment stores and theaters. It < the in was ground-work thirties was being applications. mercial !r~~ ST. Dated for new com¬ were be¬ itself had on military personnel and civilians with air conditioning in structures like the Pentagon and in blackout plants throughout the country helped 1953 and Trust Funds in New York and war many other States and These advances trated in some the can be illus¬ concrete terms with sales volume figures. In 1936 industry of worth prices. the more products By same sold 1956 basis $48 million at consumer annual sales had increased $3.2 billion—including 1959 2.10 2.10 I960 2.15 2.20 the Laws of the United States. 1961 ! 2.20 2.25 1962 j 2.25 2.30 t • 1963 ; 2.30 2.35 i ,, Housing Administration, unconditionally agrees ment Federal not sufficient to sums of principal and interest of the United States is a contribute, in to forty annual installments, on Housing solemnly pledged Administration United States under agency, more assure than pay¬ these Bonds. The faith the Housing Act of 1937, as are appearance 2.35 2.40 2.40 2.45 V 1966 2.50 2.40 1967 2.45 1968 2.45 1969-70 2.50 .■ V 2.50 2.55 2.60 2.65 1971-72 2.55 1973-74 2.60 by the Public 1975-76 2.65 1977-78 2.70 - 1979 2.75 : 1980 2.75 1981-82 2.80 2.85 1983 2.80 2.90 1984-85 2.85 2.90 1986 2.85 authority of the amended. offered, subject to prior sate before or of this advertisement, for delivery when, and if issued and received by us 1964 1965 the payment to of all the annual contributions contracted These Bonds advances. 3% 2.00% Legal Investment for all National Banks organized under proving ground and the way for our post¬ a as pave 2V%% 2.00% Legal Investment for Commercial Banks, Savings Banks immeas¬ an the industry. About 80% of our output during that period consisted either of spe¬ cial military designs or of conven¬ tional air conditioning products used directly in the defense effort. The experience of thousands of served RICO 6/1/56; due 6/1 Exempt from Federal, Impact impact Dated State and Local Taxation The Public war 8/1/56; due 8/1 Interest Exempt from . The $10,035,000 PUERTO MO. Federal Income Taxes a means of increasing employee efficiency and, thereby, profits. • • urable LOUIS, for comfort air condi¬ War's '"P"" $17,375,000 are hereafter or the Industrial and use ! that establishments ginning to tioning as amended being laid designed ' now as imposed by the United States." the postwar expansion of markets. New equipment and new systems were Housing Act of 1937, after as and subject to the - 2.70 ' V 1989 2.95 2.80 2.95 100 (priceIt 1993-96 , 2.85 100 (price V 2.90 2.80 , 1987-88 1990-92 2.75 V 2.95 100 (price) 100 (pri«( '' « 4 approval of legality by recognit^I bond counsel, Callable ten years from issue date and thereafter, as stated in the Offering Circular on to heating- in¬ stallations allied to air condition¬ ing—a 6,000% increase during: the two decades. You may be interested in the types of products included in those 1956 industry retail sales figures. Here they are: Apolied or built-uo systems, $1,048,000,000; room air conditioners, $426 million; selfcontained equipment, $215 mil¬ lion; residential systems, $262 mil¬ by Mr. Wampler before Government-Industry Air-Condition - 'An the address ing Svmposium, Waahiaghoo, D. CApril The First National Merrill Halsey, Stuart & Co. Inc. City Bank of New York Lynch, Pierce^-Fenner & Beane Eastman Dillon, Union Securities & Co i F. S. Smithers & Co, Ira Haupt & Co, National State Bank Newark, N. J. April 11, 1957. ■owmmgrr: Chronicle The Commercial and Financial . . Thursday, April 11; 1957 . t3 *(1698) Effects Dynamic Pregiam for ) Mutual Savings Banking A : • - price paid for the use of savingsrate of interest. Savings to- almost the nation's greatly expanding volume of investment resulting from technological advances, accelerated population growth, and rising living standards. Cites present intensified competition for savings, including efforts by commercial banks, which he regards as permanent. Urges savings banks to include -attractive rate of return, convenience, and merchandising, in program to maintain developing, coincident with now their We live in undergoes that ^ Financial and grow such an f>er in energetic iic adapting their yiolicies, pro¬ grams, and 1 < > par- iicularly of ; private construction, business and agriculture. Gross private domes¬ tic investment, as this figure "is r trueAugust Ihlefeld' institu- ized like don autual savings bank, which does ?ictivities do as <;hould fail to fore a There things two are Uank.managements if economy stable. The only al- is finance it with bank credit. But a . t0 commercial savings rap-ld expansion of bank loans undermines the stability of the econ- do to safe- can our healthy and ternative sustain their role in the economy. keeo tQ are we out of savings, mainly nanced m fi- be must investment New providing savings account service, they cannot count upon other activities to leadership of «ion l*uard the position of their institutions in our dynamic economy. sweiiing the money sup- b om ply, and because subsequent pres¬ First, they can study economic financial changes, especially sure nnd a precipitate for repayment can recession. Savings have lagged far behind vestment, to appraise their probeffects upon savings-bank- the upsurge in pew investment. savings flowing into thrift nble ing. they Secondly, rinue to £ace J® Less0.ln 1f?,Irfa L 2lan Since 1946, such mstitutional savings have increased like to discuss economic eould profoundly savings I of some trends suggest a 140% that affect the future savings and shall # tJ wanted not to hold expenditures consumption down a"d so lift their savings to a level . t adequate- to jncreased , the greatly new invest- finance volume The ment. been conditions that loom ahead. ',. American dynamic eavings banking to cope with the .. the that is have people . , fact of inevitable result has acute shortage of savings an Mutual N. April Y., Savings 3, of Banks, Albany, that could well continue, although time due. to fluctuations that are inevitable in 1957. % v ; ^ ; Yet, it was evident at thet ime that the nation's banking /; The this an a free economy. offer to sell nor a solicitation of,an offer to buy qny of these securities. The offering is made only by the Prospectus. ! ' : ' ISSUE : Banks » - most f; ing—will have to be included in a program that is going to prove v * significant of the aspect has development That experience made it clear do? business- with them, and by that the conventional ratio of cap¬ merchandising their services ag-• ital funds to deposits was an in¬ *"/■'- gressiv/ely. - All, .three- factors-*7*" ; /rate, convenience and merchandise accurate and misleading measure being are ' been entry of commercial banks into the competition to at¬ tract savings. periods when a In aggressively. But an acute shortage of loan- now, exists funds able Returns To pay • 1, ... 50,000 Shares Low commercial . adequate rates,"of return wh*c high for search interest ancl quality assets afford better yields, have That ex- doubtless continue as new commercial banks tunities become available. obtained the authority t6:d^nard*-C economy X can raise the opporIn our why plains interest paid rate on savings deposits to a maximum of 3%. Commercial the out country the rate paid on In 1 through- banks have stepped up savings accounts, to the new maximum of 3%. some 1956/ commercial- banks- ac- counted for As a little less than 25% commercial fore, counted foresee increasing opportunities for the profitable employment of savings as businesses and public bodies, as well as homeowners, call on the capital market to finance their requirements. : . rise. annual banks to are * now regain ae- portant in the persistent quest for the sounfi assets that ^YiU Provide the commercial earnings to permit payment of competitively effective rates of dividends at all times., a Many launching an effort leading place-for ". Some drive 1 that the current savings deposits among commercial banks will not be sus- to They reason that these in- will become savings indifferent accounts again- once The •.• suggest for try Rate of Dividend .. . the _ Mutual thrift institutions of country, still maintain .'an average ratio of surplus and re¬ serves to deposits of very close t 10%. This strong surplus ratio i the gratifying.- At the same time, i must be recognized thatr i through growth and through pay ment of liberal dividend fates, Ih , surplus ra^e dividend'a savings bank;can pay depends upon not 0.n^ Quabty and diversifica^on. p/ 1^:s asset3 but also upon liquidity needs, expenses of operahons, and additions made to sur- tained as surplus managements/ be- yields, savings banks have taken bank convinced that interest rates be obtained in as may any state from suck of the tween sev eral'Underwriters, state. may the be parallel accounts Aprfl 10, 1957 types of consumer finance and companies that extending such attracted by on many were such con- years, content instalment financing and sales loan be- of commercial For banks tain V policy. savings lending. to leave to Incorporated improve earn- a a attitude towards commercial other A.G. Becker & Co. steps to high aver- ings, and thus their ability to pay age level over the years and that-a fully competitive rate on savthe savings shortage is going to be ings deposits. With over 30% of prolonged, the determination to their deposits in cash, short term attract more savings deposits securities, and United States Govcould ^become an established fea- ernment obligations, they maingoing to hold at There lawfully offer the securities in such effective lending consumer the higher rates paid loans, commercial banks decided to enter the field aggres- high degree of liquidity. future competition ; will thus depend mainly upon the third consideration —- maintaining adequate sur- rates can be raised to meet ! year, mutual try ■" - . . the deposits of th savings banks of the coun Last - increased by 6.5% and thei accounts by 4.6%. As result,- a slighf decline occurred i the average ratio, of surplus fund deposit liabilities. But with ratio of surplus to deposits at ris1 of 30%, there is no reason whj to this trend should cause any cern. con - Savings Bank realistic A mutual savings time must Dividend dividend take Policy policy fo banks at any on into account no only the surplus position of thes institutions but also the competi tive . situation which confront them. . specialize in plus. credit. " Finally, a Moreover,., savings banks enjoy ^be lowest unit cost of operation an-V institution offering savings account service, The extent to which dividend fully main not relative capital ratios are con bonds being acquired at attractive Once is this level in the future banks could remain :b> far the strongest group of thrif institutions in the country, so ia com- business recession. sumer may ratio at savings decline. rates alone banks, savings the among cerned/ interest and what it has been towards including the undersigned, 17% at the end of 1956. comparable surplus ratio for mutual savings banks of the country was 30%, and for savings and loan associations 12%. : j >' . include govern¬ we was The P*us accounts. • This is by no means certain "if \ With two-thirds-of deposits now higher interest rates are going ta~ invested in first grade mortgages persist, except for brief periods and with high; grade - corporate banks Copies of the Prospectus now the commercial banks of the coun¬ In the analysis ^nd appraisal of investment opportunities, themselves in providing this service. are Price $23,875 per Share is underwritten ^mortgages, along with United States Govern¬ ment securities and cash, among non-risk assets, the ratio of cap¬ ital funds to "deposits at risk"-of new half over If risk assets. ' • banks- had well for ture of management - bank- capital ment /- - (SI Par Value) the >' adequacy of the result, a commercial year's increase in savings economic research can .play an and other time deposits and/ ac-: important part.: And I, can encounts in banks and savings and Vision the role of investment officers becoming/" increasingly im¬ loan associations. A decade be¬ come Common Stock system. Clearly the quality of assets, not the ratio of capital funds to de¬ the of Company a n banking ; high, are mercial Katz Drug in the 1940's < impregnable ratios capital characterized usually measured by the ratio of savings deposits r ^,e P''oc<;!ls °f gradual enlargebecome much more profitable to1 hient of the legal investment capital funds to that portion of the deposits that is invested in commercial banks and they com- framework for savings banks will- rates whenever * ' failures among commercial banks. to their depositors,^savings banks posit liabilities/': determines relative strength of banks. V when/ must be unremitting ; in their counts as were Tlie Quest for More Adequate surplus of savings exists,"as in the 1930V and 1940's, most commercial banks do not seek savings ac- strength of a bank./ High in the early 1930's accompanied by widespread capital ratios foresee ahead. can the of adequate in the period of intensified rivalry for savings- that we aggressive stitutions MEW .. among the, higher at Competition from Commercial tained. This advertisement is neither ? of goal. On behalf that return offered. Truftles M^in/oKp i'n N."'vSk yawing h* intensity from time to litate them invest can rates of larger; The that would help mutual .. about is investment banking, ... p ogram —T7"~ 52%, whereas gross private some domestic I basic new . ... I would Then -2 and grow in the expected develop- rnents. the institutions, including life nisuractually a PPfP companies, were prosper these of formulate" can programs that will institutions to con- and their enable of The . policies a towards ./ capital ratios both managements/ and regulatory authorities durihg the past two decades. * > : / 3 * in- tense Competition. pete for them actively. they relate to savings and in¬ as has been banking/ there considerable change in attitude the borrowers, they seek' to the year be¬ $17 billion more than in 1954 variety of and nearly two and one-half times commercial banks, as large as it was a decade earlier. wide ^ ?av.*n,ifs. banks maintain then pnsi- *?r offer can "... * In 'commercial : new tive terms available. billion more than in as banks for the industry» Surplus Ratios was billion in 1956. a not carry on commercial investment requirements owners, businesses/. and have serious adverse can consequences At the same time, savings and loan associa- / t ons, obtaining higher yields on /Before World War II, a ratio of capital funds to deposits of 1:10, higher interest rates'in order to their mortgage portfolios, will also that is, a capital ratio of 10%, was obtain the funds they want. ' • continue to be aggressive competiregarded as a desirable minimum. Keener competition for avail- tors for available payings.. / This standard abandoned dur¬ able funds among borrowers/ in Confronted with such intensiing World War II, however, as the turn, leads to intensified competi- -tied competition, savings, banks great expansion of deposits inci¬ tion to attract savings among thrift al'e not going to be complacent, dent to the war was not accom¬ institutions. Thrift institutions They will want to utilize tully the panied by any material expansion are the intermediaries in our capadvantages they possess to main- in capital funds. The ratio of ital market who act both for sav/ tain ^heir growth in the face. of-;, caiptal funds to deposits of the ers and borrowers.; On'behalf of intensified;-rivalry for deposits, commercial banking system the savers, they seek- to invest-• But j.t is -going to take hard thinks; dropped almost to 5% at the end savings on the most attrac-and -hard .work to attain this . of the war. called, reached a peak of over $65 This was almost $5 special¬ a im¬ very , needs. is is attract*-* - Savings • banks, we .know .from system had never been stronger; the "volume of new investment all the savings needed. When savi experience, can continue to attract Holdings of cash and government that is going on in the American ings are in short supply, as is now deposits in,-the face of keener..: economy.,. The Department of the case, thrift institutions ac-";Competition by paying an ade- securities at the end of 1945 were over 80% of the deposits of com¬ Commerce computes each year the tive!y«wmpete with each other-to <Juate rate of return, by making it mercial banks. j.f value of such new investment in attract more savings so that they more convenient for depositors to to; and tions This policies, it , great expansion in have caused a condi¬ jiew ar t o iperatioiis itew bring policies savings thus keener com- public bodies vie with each other in offering to pay substantially industry,-more rapid population growth and rising living standards SK in t ion to of petition a^°ng financial institutions for savings accounts.: Being more numerous and having many more branches than savings banks, borrowers for greatly en¬ among dividend - interest rates reflect competition that has de- veloped Home technological advances in Great effective -and V lies ahead. only ^iconomy by promises funds to finance their larged affecting savings banking today is the acute shortage of savings that has developed, a condition which could prove chronic in the era that change. . institutions can pros- Crastic / • economic trend The most basic accounts. The shortage These high Shortage of Savings Chronic A we in the formulation of savings bank they can realize.. portant that all concerned with profits from such service over the the future of savings banking re¬ l°n§ run, commercial banks may examine current notions critically continue indefinitely as more ag- and objectively. Mistaken surplus quarter of a century. a the keen position. dynamic economy continuous and a that turn surplus of question ratios is bound to play a key role once convinced highest rates of rehave witnessed in day earn the the .Since , conway, gressive competitors; for savings the the acute shortage of savings Mr. Ihlefeld calls attention to substantially the ready forced up City Company, New York President, Savings Bank Trust w savings that are available. — The shortage of savings has al- AUGUST IHLEFELD* By - fj; savings ate n0^ *he largest factor in f o r tne sumer lending. In the same of shortage competition intensifies sively, with the result that they-, Savings Banking on chronic A If substantial annual addi- tions to surplus accounts are to be made,, .ability to liberalize divi- payments will spondingly limited. dend be corre- Fundamentally, the', maximu that a savings bank cai • is determined by - it dividend maintain earnings, after expenses. A sav ings bank will not and should no pay out to depositors more tha its current income. On the othe Volume 185 Number 5623 ,/ The Commercial and Financial Chronicle . (1699) hand be dividend policy based on rigidly should the not population has shifted all around notion the periphery of our cities and is scattered' over large - suburban that all earnings after certain pre¬ conceived additions to surplus and > areas, a savings.has become the chief exploited constantly by those who bottleneck to economic expansion.' sell products and services. ' We This is why savings bankers have must be alert to make sure at all evolved programs for making times that our own merchandising their services more convenient for methods reflect new ideas and depositors, and have urged the methods, adequate for growing proportion of the belong to depositors and people find it difficult and time paid out as earned—a- consuming to do business in sav¬ notion that has been fostered by- ings banks limited, to one or a legislature to make the requisite imposition of the Federal corpo¬ very few offices in congested ur-- changes in the law to enable them reserves should be ration income tax mutual on to be flexible. ban centers. sav¬ ings banks. Dividend policy needs . * The solution problem of keeping savings bank service con¬ surplus This accounts. the was to tive liberal set dividend whenever considerations rates competi¬ would make this desirable. is to be promote stitutions to utilize to their economy gives competition for Commercial banks, in intense particular, con¬ upon a are now determined embarked effort to at¬ tract more savings deposits be¬ They believe they can lend invest such deposits at substantial profit to themselves. cause out full and 1 extent modern methods of adver¬ am ever tising, publicity -and merchandis¬ ing to sell savings service to our tain confidently hopeful how¬ that savings banks will main¬ a savings services service highly" salable a /// ' Savings banks have the capacity ■ to maintain attractive At times it '< field of thrift conserved rates of Savings banks have made great dividend without downgrading advances in the'; past- generation-, asset quality or losing the benefits in streamlining and modernizing of diversification, while main¬ will not only be strengthened fur¬ but ther. - - Through a dynamic program of kind, energetically, forcefully and skillfully " pursued, savings banking should give as good an this account of itself in the future it has in the past. * • \i. •»- ■ ( . •' • . ' payments to ame¬ shortage of savings. Ad¬ ditions to surplus accounts would a then be This is the LOUIS, Smith have their new for merchandising policies. But techniques and new media reaching the public are being an The ward New Mo. rarely NFW f««TTS D. Street, York upon very would be Exchanges.; conducted business Mr. Smith his in Mclntyre Reed, Inc. Marshall, was / r not are earnings. banks tends slowly in yet with :u. a of savings relatively period of higher in¬ to ; • income * rise Dated terest rates because the long-term character of their assets slows re¬ investment. adequate surpluses. Much can and will be done by offer to sell or a solicitation 'of an Whitteniore & is Ore. with , - "S - - ■ 5V2% Secured Bonds (Seventh Series) / / Due April 1, 1973 OFFERING PRICE 100% AND ACCRUED INTEREST By the same token, investment income should decline relatively slowly when interest rates drop. A timely reduction of dividend rates under a flexible *y/"> ■! $10,000,000'• - : dividend policy would thus permit "catching up" plus and riod of - additions to on accounts in reserve Serial Secured Notes (Eighth Series) sur¬ a pe¬ falling interest rates. Dated At the present time, the ratio of surplus funds to deposits at risk becomes a valuable guide in de-; termining how far dividend pay¬ ments tion ratio be can to liberalized in earnings. So long is rela¬ The Serial Notes will be issued in three the of ! April 1, 1957 series, maturing, respectively, on April 1, 1960, 1961 and 1962, in respective principal amounts of $3,300,000, $3,300,000 and $3,400,000, and will bear Interest at the rate 5% per annum; that as The Serial Notes will be sold in substantially proportionate amounts of each maturity. maintained substantially over 20%, failure of surplus to expand as rapidly as deposits need OFFERING PRICE 100% AND ACCRUED INTEREST not cause concern. Convenience , ; Payment of for ■fin lieu of selling all Depositors relatively attrac¬ a banks (on or or any part of the Serial Notes, the High Authority reserves the right to borrow a like amount from before the delivery of any Serial Notps) on comparable terms as to interest rate and maturity dates. tive dividend rate to depositors is one by which savings banks safeguard their place in an way can marked economy shortage fied of by a savings and competition ings deposits to by . attract important, experience, demonstrated, is the conven¬ ience to depositors facilities people enjoy and • service ; that their time When our be obtained in any State only front such of the lawfully offer these securities in such State. of savings As Kuhn, Loeb & Co. & Co.i Inc. - The First Boston Corporation Eastman Dillon, Union Securities & Co. Glore, Forgan & Co. more consumes and Goldman; Sachs & Co. > Harriman Ripley & Co. Hallgarten & Co. much too Incorporated energy. population was cen¬ Kidder, Peabody & Co.J Lehman Brothers Merrill Lynch, Pierce, Fencer & Ceane tered in the hubs and along major routes out of banks serve1 they of transportation the hubs needed the were \ Lazard Freres & Co. serviee. leisure, they become less patient with banking •of may as may sav¬ Equally bank undersigned and others commercial - banks. has Copies of the Prospectus chronic intensi¬ of few coming cities, savings branches communities located. But in which now Smith, Barney & Co. to that April 9, 1957 ' the Stock formerly Mo. Mr. Waddell White, Weld & Co. — Samuel Dean Co., Equitable Building. offer to buy these securities. April 1, 1937 / of & Joins Dean Witter PORTLAND, <?• reflected - Investment H. Mclntyre . justifiable vestments i investment own only when the-causes of inadequate earnings are quite temporary, as when the full benefits of higher yielding in¬ in " Midwest European Coal and Steel Community only temporarily to bank's dividend rate. It a O. members and of the and ' associated with Ed¬ Jones & Co., 300 North circumstances, undivided stabilize Earle - Warren and Fourth taining appropriate liquidity and offering is made only by the Prospectus: commercial bank competition. In any profits would be drawn // become correspondingly reduced. situation today, char¬ acterized by an acute shortage of savings and intensification of ' as ' 1 • ^ (Special to The Financial Chronicle) ST. dividend liorate • . This advertisement is not in¬ savings banks to liber¬ terest for alize period. ' > Two With Edward Jones dis-" prove a .' 1 ' expected, is in the public con¬ . rather, that at certain times addi¬ tions to surplus could appointingly small for their By these measures the relative position of savings banks in the , ings make and the best advertising and pub¬ licity practices of present-day dis¬ leading position - among thrift institutions, for there are a people. Actually, thrift should be number of paths they can take in the easiest of all services to sell.. pursuit of their sound objectives. At a time when our people are. Savings banks can and will con¬ made; security - minded by social tinue to take steps, justified byv security and pension plans, the. the needs of our economy, to en¬ great advantages of a completely large the legal investment frame¬ liquid savings account, available, work so as to open up wider fields on demand and yet paying a sub¬ for the profitable and safe invest¬ stantial rate of return, make sav¬ ment of their depositors' funds. product. to available and venient to the public and to adapt to the sale of savings bank service aggressive merchandising methods - . banks more tribution. expanding to savings. techniques It is the obligation of thrift in¬ .> Savings banks/ are severely savings banks can hope hampered in adapting their serv¬ their competitive posi¬ ices to the convenience of de¬ tion in the savings field only! positors by statutory restrictions through liberalizing dividend pay-., upon branch and other powers.; ments, a larger proportion oi in¬ Needless restrictions that prevent come can justifiably be paid out; savings institutions from pel-form¬ in dividends. Again, preconceived ing their job of stimulating and notions on minimum amounts that encouraging savings are obsolete ought to be added to surplus ac¬ in an era when the shortage ofcounts should not be the control- • ling factor.. It effective being used to rise so aaany new spending and personal bor¬ rowing, savings institutions cannot afford to be passive. : " When - highly are of to preserve society where sumer shopping centers, railway stations its convenience, as well as its safety and the satisfactory rate of return paid on deposit, balances. ; a and and the like. It may also involve during the 1940's, when they the opening of a number of small savings banks of the country branches at low capital cost, in¬ added a billion dollars to surplus stead of one or: two large and accounts- because relatively low, costly ones,-to serve vnewer sub¬ rates paid on savings by commer¬ urban communities. Banking by cial banks lessened competitive mail, periodic pick-up of deposits pressure for savings accounts. from factories and huge -office Thanks to these large additions to buildings and similar procedures, surplus accounts, the • savings may help make * savings bank banks placed themselves in posi- ;, service highly attractive because subsequently In A case tion Our Merchandising and Promotion ; dynamic Conclusion of the When competitive conditions dovenient may well be the opening not require savings banks to pay of - deposit windows in -places out liberal dividends, it is prudent where people congregate, such as tb make substantial additions to a ~ to carry out such a program. - • popular¬ izing savings service in economy/ the 11 S. Witter The Commercial and Financial Chronicle data in Outlook for Metal Consumption • By GEORGE H. CLEAVER* Editor, "Engineering & Market Thursday, April 11; 1957 ... iljx Mining Journal" market editor's world-wide outlook study mining and refining industries Mr. Cleaver offers projections which metai * f K B.u-1 by the? American of Metals Statistics and pop¬ ulation figures 1 sumption consumption in the underdeveloped areas. (1) We can make projections of recent trends. We , can estimates make of price inflation would need al added to this. Some copper now can probably be produced at 12c low. This very will mean pressure mm metal sources, SSI®! on or not 13c a pound—this bottom may rise nearly so much as the* top. reFor the equipment industries the high implications are especially inter- Prices and exac- esting. celerated UmMmm Any to be no in which met- now now plane of living in these areas and these estimate metal con¬ from Great increases in than 10 is same 20 years ago. The or true of other uses—con¬ appliances, communication equipment, building equipment and machinery. Examination of sumer the mining and smelting of metals is becoming a decreasing proportion of national Western world the of t a . some¬ cieaver * income. But in abso¬ at a rate as high as it did in. Japan! from the late 19th century to the. 1920's and the 1930's. But there is; considerable evidence to support! the view it may increase at a rate of the in same Japan. Only general magnitude as .;,V;I ; the most general level all of the under¬ developed areas. Of the factors I shall discuss in no areas will all - can on we group increasing. Con¬ of them apply to the same extent " tinuance of this trend of greater The more backward areas of Eu¬ complexity is uncertain. Greater rope have different problems from emphasis is now put on design Africa and South America. And a model is reasonable in getting simplicity. No direct recognition Asia, Communist and nonrComa first approximation of future of these matters is included in my munist, has some perhaps unique consumption. Africa is more figures. problems. heterogeneous than Asia and Government Factors Encouraging Greater South America and treating it as Notice needs to be taken of the unit might lead to greater errors. a Using this method for the under-developed areas, with some modification, and projections based mainly on the past 25 years for the other areas, and assuming Metal Consumption position of government. The basic economic function of government the is for same developed and underdeveloped areas. It must provide rules of the game, essen¬ tially a set of laws that permit a population increases based oh the person or firm to have confidence past 25 years, I get the following that contracts will be met, that a estiniates for copper consumption firm will not directly interfere in millions of short tons: with the operations of another, 1955. 3.9 and that property will be protect¬ 1965..—-——-— 4.7 ed. It needs to provide a stable 1970_ 5.4 monetary system. Its responsibil¬ 1975. 6.4 ity for education is now:/getting 1980— 7.6 rr more recognition. - • „ r _ — gr|ater the notion metal consumption will, increase in underdeveloped areas terms!,it ;is lute consumption of metals, lower pioration and gra(je 0res and increasing labor development, costs probably mean a manifold The reasonableness of the idea increase in the use of mining that under-developed areas will equipment. Much more equipment narrow the gap in per capita per ton of metal will be required metals consumption or at least unless revolutionary techniques expand consumption rapidly, usu- are discovered. ;v" ally has been left to our imaginarpjie demand for mining and tion discussions in of metal conmetaiiurgjcaL engineers' will be sumption I have explored this even than it is now 1985 9.8 idea and I shall give you the re,hough technicians may be used ; 1990-— —----H.6 suits; Some interesting economic r in number than now. The The 1965 estimate is very close developments m connection with sca°city 0f well-trained engineers metals to used that consumption outside the by Mr. Roy H. may be further aggravafed by the backward areas deserve some Glover, Chairman of the Ana¬ present anti-intellectual trend in conda Co., in a recent speech. comipetit also. secondary schools—a trend that The greater This discussion will, of course, has rate of increase crept into some of our colfrom 1980« to 1990 indicates the be largely speculative—any conleges. ^ i accelerating * development of the sideration relative even to such * \ tentative forecasts as I shall make presently "backward" areas. By Variation in Per Capita Metal 1990 there may be apme let-down involves judgment of matters to Consumption y vy.\.. in this increase.- * •. ; !' * which! only uncertain weights can I shall give you a few statistics H. George pattern past,30 years. metal tion. (3) We can apply change factors derived from areas that were under-developed rela¬ national income data show, as the tive to Europe and the U. £>, and above idea would suggest, .that of those areas is the for each — (2) . consump- the In pointed out the people have even more widely than at present, been pointing out the wide varia- Firms that own high grade ores tion in per capita metal consump- may make proifts before taxes which have moved .forvyard lion in various parts of the wond. several times their cost. Many rapidly. Japan is probably the The implica- people now think of 30c a pound best example of this. (4,): ^ can tion usually is as the "normal" price for copper, make estimates from a cpn?i?inathere will«fcbe A normal price of 50c or a 60c tion of these three methods., For some catching a pound 15 or 20 years from now Asia outside of Japan, and much of South America, using Japan as up on the part would not surprise me, assuming tion in U.S.S.R. the * earlier years. The intricacies of 2,000 pounds of metal transporta¬ tion equipment are much greater , sump many inflation. people -v., con¬ what analogous situation is de-; percentage veloping. The natural and proper: produc¬ attempt of organized labor to get I do not expect to see consump¬ tion metal use increases by less an ever increasing income -may be tion- of copper, lead and zinc than a percentage unit. I have operating to reduce both incohie* reach these levels. But the figures examined this situation in an un¬ .and output. Some writers refer to; do give us a frame of referencepublished paper. The basic reason this as the "laboristic economy."; in thinking about potentials. Data is that the things we use are be¬ In some cases deliberate attempts' for other metals also show a very more complex. The are made to: restrict productivity wide spread in per capita con¬ coming amount of fabricating through in order to raise wages. sumption.- ; /•- " <'^ which a pound of metal goes be¬ ; The above discussion indicates There are a number of devices fore it reaches the final consumer we are not accepting uncritically! we can use in estimating future is now much greater than in . metal , price with T, , regionalism. Surmises underdeveloped countries may increase copper consumption from 3.9 million short tons in 1955 to 9.8 in 1985 and 11.6 in 1990, and expects aluminum consumption will double every 10 or 15 years. ^ general connection f in Less Important One trend should be the United from v .. trade Recently . unit increase in industrial for foresees great growth. show per capita use of; metals in many countries will rise more rapidly than the U.S.A. in recent years, and attributes this to: spread of ideas today, government emphasis on industrialization, social upheavals reducing sharp difference in living standards, and increasing Prominent metal t f reau Materials Relatively Raw statistics based mainly on are published Nations Yearbook.) Backward and Developed Areas ? . (1700) 12 jj — But there are differences Let dence metal ly. us of the evi¬ some the 1 view consumption will rise rapid¬ -?■ v-.v . (1) which supports/ with The ease new (and old) ideas travel and speed has had, and will have an in¬ creasing importance on the stand¬ ard of living and on metal con¬ sumption in all parts of the world. consumption may increase without an increase in the stand¬ ard of living but there is little chance the standard of living will Metal increase — look at that without an increasb in in metal consumption. In sorne cases highly developed areas there are the matters I discuss work toward more people and firms witH initia¬ iricreases in the standard of living tive nearly always watching for arid thus metal consumption. 'Tn economic opportunities. If is the others the Connection is direct. 1. job of government not to restrict The ease with whichjmowledge this. In the less developed areas people are much less prepared to spreads is complex but we can take advantage of economic op¬ point out some interesting aspects. portunity and it is often necessary Knowledge of how other people live—and do not live, the Hollyfor government to take a hand. In lhariy cases government needs to wbotf stuff — has been diffused into many backward and semiThese indicative of the wide variation in figures represent con¬ Work with foreign industry. When backward areas. The effect of are insufficient private metal consumption. These do not sumption mainly of new copper. there American movies on parts of Asia, refer to the final consumer—they In the past few decades the pro¬ funds available to finance a proj¬ Africa, South America and even show, in pounds per person in portion of secondary copper to ect of optimum size, government Europe is an example of this. The copper has not changed financing and perhaps direction 1955, copper used by the fabri- new modern ease of communications greatly; the same is true of zinc. may be in order. This is more eating industries, creates a desire for a higher mate¬ But secondary lead has become likely to exist in underdeveloped Unlted Kingdom.... 24 rial existence by suggesting to an increasing proportion of the areas. The United States also has TTnitpH matpc total. With lower grade ores being been giving some aid in this con¬ people who do not have it that Germany IIIIIZ < 17.5 others do. mined a greater proportion of nection. One of the major prob¬ France ..I'll 10 We must not get the idea that secondary metal may be used. But lems of underdeveloped countries gr6eater # „ be attached. But such speculation is always made—from speculation comes realization of the sort of a data needed in order to arrive certain more investigation is largely successive of feel There is Two in with is - we I so define great definitions comhion—one history speculating. need that no "consumption" cisioh. a speculations hesitancy no at Successful answers. the pre- are most amount , Japan of Africa metal' actually used bfr the final in things he uses plus machinery and equip- consumer metal in ment used up by industry. the metal often is 3 .25 Asia, except Japan 11 Europe World . I_II II.II J)4 1 8:5*" 3.2 But in industries consumption thought of I These would need to be modifle? considerably m order to show the metal foundries in me- as much of metal is the cost labor cost secondary is to convince of in collecting capital that that safely invested. old scrap so secondary costs may rise even more than primary. Also, with rapidly expanding consump¬ tion a lower proportion of metal in at any j| ; Germany. (Allowances for imports Some Conclusions A 'number of provisional con- elusions follow from this investi- gation. metal of ore With great increases in consumption lower grades are likely to be mined and prices are likely to rise. In the long run the price is equal to the highest cost — higher cost mines cannot continue to operate. But some high grade ores will continue to be mined—in fact there about which we .are concerned. an<^ exports are included only in Probably most displacement of Pfft in the above statistics.) Such any metal will be by other metals adjustments would not alter with little change in the total for significantly the conclusion that all metals. Perhaps "displacement" petal 5£!ls^inP i1 varia(* by per- is not the significant question. The baps 100 times from the higher more appropriate question may be to the lower areas. Variations in —what metals and other materials l®a<* an<! z!nc consumption are will be used in the new products. also very large. We might get a In the case of aluminum nearly conception of this situation if we all the world was under-developed were to assume world per capita a few decades ago. I have not used ore bodies now known consumption reached the level of any of these devices for aluminum. probably be producing the U. S. Then copper consump- Many analysts believe aluminum high grade ore for several decades, tion would be about 24-millioh consumption will double every 10 It is quite possible costs and tons instead of about 3.8 million or 15 years—this seems reasonable profits in metal mining will vary tons> Lead would ^ about 15 to me. It will make some inroads in products that can be made of are that large will ♦An address Orleans, La. by Mr. Cleaver before the million tons rather than 2.3 mil— with surplus capital be can other metals — but those other the rest of the world is contempt, of the U. §. material wel¬ a lot of bal¬ written and spoken to this effect but miich of it is sour tuous fare, There has been derdash Restrictions on the standard of living have been characteristic of countries in which industrial de¬ time becomes scrap. When consumption, levels off scrap velopment and metal consumption use by mills and consumed by final conarticj.es they produce—in this con- sumers. They would need to be tends to catch up. I am not entranced cept♦ the metal is one or more modified less to show metal used by such times removed from the final by. consumers plus that used, up as estimates of future consumption. user.ii In some areas the difference Pla^t and equipment m making, But the assumptions on which is great. In the long run it is Products. Doubtless the U.K., a they are based are reasonable. the final consumption definition beavy exporter of manufactured The difficult question is whether that is most significant. products, would show lower per new methods and materials will capita consumption, as would displace metals in the period used! areas Advanced havri to a from a rather high level. primitive grapes. ments In their more,serious mo¬ intelligent people-outside the U. S., in Europe ,and the un¬ derdeveloped regions, admit a This was higher level of material welfare is. their most pressing problem. This is especially true of those the 19th century. It is also true areas, in which occasionally a taste of the U.S.S.R. It will probably of modern living is found. This be less true in India and perhaps does not deny, there are and will China and probably othej* areas. continue to be sharp differences Restrictions on living standards in how people use their worldly permit a larger part of the;nation¬ goods. The differences in .. use al product to be put to Work as within any country, including the productive equipment and plant. U. S., will be greater than -that It encourages more rapid:expan¬ between.countries. But the drive sion of output as long as full to get more material wealth is employment of labor arid other increasing. resources is maintained. Recogni¬ The spread of ideas is not being tion of this fact requires that we left to chance. Even during the modify the use of Japan as a model for estimating increases in period when Greece was the cen¬ true in Japan. The people shared little in its advance from: late in . metal consumption in underdevel¬ oped areas. And is it But by how much? possible China can re¬ sist the demands of its people for an It increasing standard of living? certainly can, compared with India recent and other events countries. suggest the But Com¬ Uon Zinc about 19 metals .will be used for products munist world can no longer get tons instead of 3 million., (These ;which £Ould be made of aluminum. away; with r-the: treatment of its ter of the world efforts were made to import and export ideas. But now more than ever attempts are made of to accelerate the diffusion information encouraging the development of higher* levels of industrial and agricultural pro¬ duction. An example of this stares us in the face. Seventy-five years Japan ?was a greatly. under¬ developed .country as far as in- ago Volume 185: Number 5623 .% The Commercinl and Financial Chronicle . IS (1701) dustrial production consumption Japan became and metal concerned. was of her in- aware dustrial inadequacy and sent groups abroad in order to learn how to remedy it. Today, when it is much easier, this is done by other countries. in slacken Cold War v , of and cultural ideas is furthered by the competitive struggle, between the Western world, and the,U.S^.R. and its satellites. and the U.S.S.R. effort, Both the equipment, people many U.S.A. putting much are U. S. destroying the sharp class distinc¬ and tions has been not living standards. recent¬ U.S.A. is gle. example of this strug¬ an The Marshall successors Plan all were its and aimed in this direction. The U. S. International Cooper¬ ation Administration is bringing to the U. S. of groups ment, from officials to methods study and cerning instruction trouble it had to Fifty In most cases With took the initiative itself and made mistakes many along the way. Often the most useful doors were closed. But now the U.S.A. and to extent some aggressively the U.S.S.R. selling the abroad.;-It is difficult to the effect of who have this but lectured are idea measure those these of us groups know they were often made ale# and aggressive people gave In up is market others it liv¬ iron were justified. As the and J disappear closer than be may first at With think. in or understand only if we trade metal pay or we of is countries large free organization for European - ' The car. a are on metal and the long April K- .; v-'c . increase May, to act as whole progress a ing made. People are beginning to think they should not deny them¬ selves the advantages to be gained from permitting others to work Greater Regional Trade banks in The breakdown of barriers located States the and in will be located in the Principals Graham of-the firm new ers these a half times. What very low - wages- workers wage in are probably benefitted else they do would pay some what other them is true also, true for If sources. a higher for owners someone wage. workers of other in be foolish not to is of ANA, Calif.—James J. has formed the Wright i i - . Company with offices North Boardway to engage business.; 'u v.il securities a v • ...v; ' Form Inv. Co. i ;.J (Special to The Financial Chronicle) f , PASADENA, Calif. — Investors Investment Corporation has beep ff-ci Marengo Form Capitol offices Avenue business. Robert E. Underwriting at to securities and B. 28 North in engage a arb Officers Peckham, President, L. Peckham, Treasurer. • Joins Nance Investment (Special to The Financial Chronicle) accept them. DENVER, Colo. is It The notion is equally ap¬ of labor. Shelby Winstead. with formed re¬ Africa is again the old matter of division and Co., Inc.; W. Howard Hopkin, Charles E. Stoll and A. that work willing to let the French buy re¬ sources cheaply the French may plicable to other resources. Will industry be permitted to develop restrictions government low would And their two for when those low wage work¬ live in another country. And turn Steel Community. Six countries, France, Germany, Italy, Belgium, the Netherlands and Luxemburg joined together to help themselves by reducing the impediments to enlarging their markets. In about four years output of steel in the group rose about a third and trade about in tucky Home Life Building. ing to metal consumption. A good rose at 822 : example is the European Coal and boundaries President will preside. (Special to The Financial Chronicle) Ken- be contribut¬ across Edwards, Investment bonds of those the steel ' , SANTA Wright States. Offices Bankers Bond and and ,Fojrms Wright hiv Co. , r^- municipal even iron Shertnan the group, 14 southern will in the and question The. meeting. wilL be .held at the Brooklyn Woman's Club, 114 Pierrepont Street. 1 Mrs. LeRoy as Thomas Graham, President of inportant factors 1929 A * ' them for to international trade is one of the most and •«. . Thomas Between Time." Market Reflection of the wholesaler a is be¬ Stock a •- ;;of securities of re- Lynch, period will follow. answer firm,, will, be forpied in in government Ky. LOUISVILLE, Ky. — Bankers Southern, Inc., a new investment on free enterprise is mixed. Some countries show signs of mbviiig backwards. But for the world Economy Present strictiohs ■:.»■ .<■ of trend "The on William — Pierce, Beane, will, address the meeting of the Urban Investment As Bankers Southern Inc. , Merrill 16 Club European consumption. > world metal Th§ • •:,'■ *,i. run. ^ skilled less the way. * As they ar¬ consumption will rise rapidly. - of Fenner & European barriers to larger markets. Success will mean the how Hewitt short in the short run, but it might be wise to be long on metals in To Be Formed in f Address Urban Club BROOKLYN, N. Y, fully the more a decided William Hewitt to be tempted to sell the metals may Economic Cooperation is attempt¬ ing to reduce and eliminate'the a the coun¬ which it has advantages? In closing let me point out, you Kentucky, The U. S. is extensive each a area. The r to along will permit try to produce those products for If to lines, natural extensive from Minnesota—then the workers may have cars in a dec¬ ade or less. The refrigerator, elec¬ tric washer and internal plumb¬ (4) had ore problem. Europe. The skilled work¬ some owner ing lines that of , willingness a class of rive along the high, duty were paid by the Iowa buyer we would be 1 approaching- the 4 European change much -else in the mode of living. The automobile is becoming a possibility for the lower middle er Ohio can number with from Illinois Iowa class traditions from of who the this countries many Europe assume a situation in Europe. If metal from Ohio plants could be exported to long way off but' in a actually each in would in the U. S., of a mass away comes con¬ life. its owq funds to pay few exceptions it use it. market. organ¬ matters of getting it. as ..f country wanting such usually had much a creation, industrial our way govern¬ labor other our years ago for from industry and izations countries many coun¬ many to we high import duties to get enough fluor¬ in in if high import duties. spar differences were plants On free. imagined countries S. U. of people move toward masses influencing The aid wide decline might ly offered India for constructing a steel plant by the U.S.S.R. and the entirely standards they the even distinctions break other countries. Much'of this takes the form of attempting to raise which from and money into to trade have been upheavals throughout the world have been ing industrial in The -social (3; tries the t but be these The diffusion countries some others it will not. derwriting with offices Building to business. has Co. in Capitol Un¬ — been the University in engage Officers formed a are securities Arthur P. (Special,to The Financial Chronicle). , LOS ANGELES, Bartelme, Jr. f. Calif.—Leo D. has become asso¬ ciated with Nance Investment Co., 417 South Hill Street. He forr was Warner, President and Charles L. merly with First California Comr Wendt, Secretary-Treasurer,; pany.. V v v „ V— ^ indication of benefit¬ every ing by their stay in America. Dispersion of knowledge on the possibility of a higher standard of Jiving and of better industrial techniques is not due solely to , government This announcement is neither " . J , ■ .i: Private programs. V. I.v. ■ an offer to sell nor a solicitation of an offer to buy any of these Shares* \'',Theoffer is made only by the Prospectus., ' ""v "'/.V':vVs ^ . industry also plays a part. Indus¬ try in the U« S. is constantly look¬ ing for vest. new It in areas also likes some; control of 'M to i JIT maintain 1 • -V V, 535,148 Shares the U. S. industry now moves into an undeveloped area—it was not al¬ ways so—the consumption level of inhabitants working for it* up quickly. The effect on the of rest the vious—and population sometimes is not ($9.00 Par Value) ob¬ appre¬ Rights, evidenced by subscription warrants, to subscribe for these shares have been issued ciated. by the Company to the holders of its Capital Stock, which rights will expire at 3:30 P.M., New York Time, on April 22, 19')7, as more fully set forth in the Prospectus. Government Stress On Industry (2) An effective industrial chine has become important in to the war obviously years. Owing constant and invasion put emphasis have development. threat of ; country industries—attempts to on many kinds o >' r r a to diver¬ The several underwriters may offer shares of • has been the Capital Stock at prices not less than the Suh~ \ scription Price set forth above (less, in the case of sales to dealers, the concession allowed to dealers) and not rnore than either the last sale or current offering price on the New York Stock Exchange, Whichever is greater, plus an amount equal to the applicable New York Stock. "> Exchange commission. " *r r r< usually led to aid to industry. Government aid* of Share make dependent sity—have sult. a industrial on Attempts few heavy Subscription Price $35 i governments the less ma¬ more recent almost "'SV f Capital Stock jumps the : The Babcock & Wilcox Company indicative of this. When are ■' CN*- ■ resulting operations. The great copper de¬ velopments in Chile, Peru and Africa y lai> it 'Hi:' which to in¬ re¬ -• > » v a ••• - This an has not necessarily led to increase in the standard of liv¬ ing or even national increase an income. in total Undoubtedly it * •. has often diverted labor and other resources from industries in which the country had tage had into industries natural a natural a in ' [Copies of the Pros/iectus signed " > advan¬ which be obtained from only such of the unAer- may legally offer these Shares in compliance securities lavs of the respective States. as may the with I \ . '" r{! 1. . it disadvantage. Gen¬ erally, government alteration of industrial activity, whether by the methods of the Soviets or the more subtle methods of the " MORGAN STANLEY & CO. direct West, leads to which the case. fell, often . in of un¬ may not income rose activity to increased output of heavy .equipment and other -metal using been; .This, products. a rise in The the government BLYTH& CO., INC. .use effect has of 'metals. vactivity-^may LAZAIID FRERES & CO. PIERCE, FENNER & BEANE MERRILL L Jncitrpitraled SMITH, BARNEY & CO. GLORE, FORGAN UNION & CO. CO. EASTMAN DILLON, HARRIMAN RIPLEY & CO. . government GOLDMAN, SACHS & CO. THE FIRST BOSTON CORPORATION in cases use this national this lead the resources Whether or decrease In those it results in employed be net a national income. ' ' 7 ... WHITE, WELD & CO. STONE & WEBSTER SECURITIES CORPORA TION ;; I April 0, If/M. ■ ■' >'■ • t. 1 ■ V 1 . . •f j 1 " i A • t ^ /• >: . "> i • 111 £ . ■vo The Commercial and Financial 14 Chronicle . Thursday, April 11, 1957 . . (1702) rapidly System of the Federal Reserve , which 'erupted operation of peacetime consumer credit controls under a ; standby authority would demand infallible judgment on the > heavy durable , trols this a goal that but ment credit plays tion. The space mass duction and is filled by tain units choose of pro¬ their This output suburbs must ket Mills, L. A- Jr. processes re¬ employment but of living, way evolution an was^devel-- ductio£ gap the markets on betwcen pro- .Consumptionand and and condition general credit controls of the a vojunr)e generates a far-reaching mone- thereby unleashed meanSi c.orr?[~ w?f, influence which consumer credit to be the harmful con- hag exerted at times that has of so rapid a gr w l properiy ar0used the concern of °r, inspired demand presumed goods. ..'• 7.*;Af'-'f''sequences . . ypJume^qf<conisu^r^nsta With to the of im¬ prices that was closely related to -dispose of the fact that actions the unsatisfied demand for auto-'iforestalf^exeessive^ economic to connected with a shift from emer- li- gency to normal conditions, but:is mobiles and other consumers', du- quidity probably afford the most aiso related to -"consumer attirable goods. These demands were effective means for avoiding any tudes," as is witnessed by the inr initially asserted through the ap- necessity1 for imposing selective crease in consumer credit that'acplication of the liquid assets ac^ controls over consumer instalment anied more 0ptimistic co„. cumulated during ^the control ,credit m peacetime. period, and were later augmented Where advance such measures sentiment following .the sul1(^er of consumer instalment .have not been, or cannot be, ade- 1953-1954 recession. propensities to qUately taken leaves for solution , As regards the market influence lable sociological and economic spend were contagiously excited of ore Venting a no- of rapid expansion or contraction significance. It is enough to say following the suspension of con- theiDrobiem ine PrODiem or pievenung a po k . ... that instalment credit has been a sumer credit controls on/Nov. l, :tentially excessive use of con- m the volume of consumer major factor in meeting the hous¬ 3 947. In upshot, the inflationary sumer credit from becoming an .Continued on pu(je^30 ing and transportation needs con¬ impact of these unleashed de- / f" ' s. • nected with the present liking for mands caused official alarm and ■ r-:~-^■■: : '■ ■ '1 ■ suburban life. Moreover, to the a special session of Congress was v extent that the physical burdens called which, as of Sept. 20, 1948, of family life have been lightened This advertisement is neither an offer to sell nor a solicitation of offers to buy any of these securities. reimposed consumer credit con¬ The offering is made only by the Prospectus. by the use of household appli¬ trols as a curb on their unsettling ances acquired on consumer in¬ economic influence. stalment credit, new impetus has NEW IS^rB April 11, 1957 This period of control over con* been given to our national pro¬ sumer instalment credit lasted ductive forces by the time thus until June 30, 1949. This was tie freed for fruitful application else¬ first and only time that consumer where and from the psychological credit controls hdve been imposed mense ferred by mar¬ the who movement is the facilitating to urban mass mort¬ migration suburban a duction, whose then be trans-' in of. city dwellers suburbs supply the • vast present first must credit, gage •markets which estate real and consumer the , example of this theme is the of instalment credit, both role consumption inal influence h point out ha<?* its respect to the interwa.r ^<5 - .economists and government- ofperiod, the inflationary reflex to ^Wcremx. ; ^ > ficials. As has also been menthe termination of World War II; The logic of this course of rea- tioned, a marked expansion of was an upward movement % of 'toning is impressive, but does not consumer credit is not necessarily v production depends. An credit had that inflationary for consumer major part in a of fiscal tional debt and an instal¬ expanding the markets on which pro¬ effects similar War II, but because World little is consumer and' consump¬ between period in War Korean continuation production there distribution, and doubt production are bears the economies of mass achievement of living with .haying. overstimulated the in that a psychological economy attitude of confidence ' •' - t0 necessary ' cannot vvork quickly enough an an^ stimulating influence both on tary policies and practices that 7ttla7 therefore, selective crec it producer and consumer markets, relationship to fostered a monetization of'the na- -controls are the most appropriate ^ .g ^.g almost expi0SiVe market it of - . , oped which spread beyond the wbjcb> as has been mentioned, application of present y aval a e are essentiai. to that "greatest public holdings of liquid assets liquidasSetSyto business and p ~ -g00(j 0f the greatestmany."Therer increased again. On this occasion, sonal uses into an economica y fore^ inasmuch as consumer innot so much as the result of the unstabilizing growti m the vol- staiment credit has so great an actual curtailment of access " to AU^oof qonsupae.rinstalment credr._■■■ impact on consumer markets, a consumer goods as occurred Sin H *s then argued that undei sue Ruddcn major expansion iii its rising standard of living. Also, as can be said that a high standard good of the great¬ many" is the goal of an en¬ lightened democratic society. The economic supports to the material est of toe 19o4 reduction in unusually Federal income taxes, are charged into lifted. somewhat , "The greatest Bonds demands for consumers' goods as soon as tne con- were rThe c charged with the responsibility for appraising the need and choosing the time for their imposition. After weighing various pros and cons, concludes that in search for "the greatest good of the greatest many" consumer instalment credit "has its fitting place of honor." part of those ; readily through a species of forced savings. In effect, this added liquid■ity in the hands of the public denoted a., repressed-, nidation effects , Holds economically successful - direct controls. are acquiring consumers' durable came into possession of goods, large holdings of cash and convertible U. S. Savings supervised currently released comprehensive staff study on consumer instalment credit, holds general controls now used to tighten money and credit supply are more consistent with the principles of a free market than for MILLS, JR.* Mills, Reserve Board member who Mr. being in consumers, as deprived of a normal opportunity Credit and Public Policy Member, Board of Governors and rose comes Consumer Instalment By A. L. unstabilizing economic influence, The solution of this problem rep¬ quires a judgment whether the of liquid assets in the hands of peacetime imposition of consumer the public was the result of the credit controls under a standby conscious efforts of monetary pol- authority contains elements that icy makers to increase tha liquid- are self-defeating in effect and, ity of the commercial banking if so, whether the objectives system as a means of stimulating sought after cannot better be ata revival of economic activity, tained through the use of general These efforts met with conspicu- credit controls. ous success but along with the To understand better the prob- individual in- roots in a high degree of economic liquid-assets in liquidity. In this instance, the retile hands of the public increased appearance of substantial holdings trols were in force, and still somewhat incalcu¬ by the credit use consumer as , .to units the As consumption. of , ultimate end of production, the market for con¬ sumer goods outranks in impor¬ tance that for producers' goods, at least in a sociological sense. Put in another way, the consumer is king, but as consumers are also a factor in production, a harmonious relationship between all factors of production and consumption is is the consumption essential to the smooth absorption .'it the level consumer tional the of na¬ Economic research output. teaches all too well that a lasting imbalance in either production or consumption seriously credit, . , . . attributed benefits to greater leisure. as If, indeed, be said in the of Board the of Governors Reserve under¬ System took at the direction of President is Eisenhower Iowa Electric stalment ment credit controls has been Federal to provide an his¬ torical and factual basis for deter¬ ciated with asso¬ sive to reason Com pan y : C'-. S- national emergency. a first • Light and Power of those who some l'avor legislation vesting standby emergencies authority in the hands of a Federal goes back to the threat of war administrative body to- impose when on Aug. 9, 1941, President such selective controls whenever The u of these Common Stock v- •' v' Y':" k'<■ •. • >';* Par A'tilue $5'Per-Jbharft ■ ,A <; « - •' ;••> Roosevelt issued an Executive the growth of consumer instal¬ controlling consumer in¬ ment-credit is judged to be an stalment credit, which had as its unstabilizing economic influence. ~ becomes an unstabilizing economic chief objectives: ,(a) to facilitate To summarize, consumer credit influence which, if not controlled, the transfer of controls are an essential weapon productive re¬ exaggerates market movements in sources to defense industries; (b) in the armory of emergency con¬ ways that can lead to cyclical dis¬ to assist in curbing unwarranted trols, as has been recognized from turbances inimical to "the great¬ price advances which tend to re¬ experience with their use during est good of the greatest many." If sult when the supply of consum¬ World War II and the Korean... the answer is yes, the next ques¬ ers' durable goods is curtailed War. However, equally good reation raised is: To what form of without corresponding curtail¬ sons for their peacetime use are, control should consumer instal¬ ment of demand; (c) to assist in open to question - in the light of < ment credit be subjected? restraining general -inflationary historic analysis which reveals mining whether consumer instal¬ ment credit under some conditions 22.0,000 Shares f: purely peacetime measure to " inflationary pressures a subdue there is so much to which, for that matter, might pos- v favor of consumer in¬ sibly have been overcome by ; credit, what are the means of general credit controls arguments calling for its control? if: their use had not been precluded Purpose of the Reserve Board's Except for the period between by the ruling fiscal and monetary.. Study Sept. 20, 1948 and June 30, 1949, policies of that period. Even so, .<■ The purpose of the study of the imposition of consumer instal¬ this experience may be a persua¬ consumer instalment credit that wants. consumer ... . interferes with the maximum satisfaction of .. Order Price $29 per share . 1 Credit be defined cash means can grant of the the as for im¬ mediately acquiring and utilizing desired some whose goods acquisition services or would other¬ wise have to be deferred until the cost had saving. been accumulated Consumer from instalment credit fits this definition and, fur¬ built-in savings thermore, is a device through which the payment of the credit leaves the sumer goods had in debtor clear possession of whatever been con¬ added to his pleasure and convenience from the time of their acquisition. are good consumer to grounds the material venience and of that adds comfort the by doing state credit to instalment and American so There con¬ tendencies; a durable goods; and (e) to restrain the development of a consumer debt structure that effective services contributes to a address by National Consumer *957, Denver, Col., Mr. Mills Credit March before Conference 26, 1957. the for the for repress goods and post-defense pe¬ that the origin of every in increase of ume be found in can of the alarming vol-- outstanding instalment credit consumer a previous period Co fries - of the Prospectus may be obtained from any of the underwhich such underwriters arc qualified to "act a the Prospectus may tegaily be distributee writers only in Slates in liquidity induced by contemporary fiscal and mone¬ tary policies. It is, therefore, log¬ high public dealers in securities and in which ical to conclude that economically In the light experience consumer World of War with controls instalment credit, ilar reasoning reimposition II over sim¬ properly led to their the on occasion of the undesirable volume credit the fluctuations of consumer best be can peacetime selective the in instalment prevented, and emergency .use credit controls by following fiscal and monetary policies that do not foster an un¬ fect due by Sept. Act 18, of 1950 until Experience of generally which evoked. May 7, with controls periods Congress 1952. consumer during wartime justified from these two emergency the purposes they were specifically However, during the World War II period that the con¬ G. H. Walker & Co. Corporation Merrill Biyth & Co., Inc. Lynch, Pierce, Fenner & Beane* . Smith, Barney & Co. degree of public liquidity. The period of rapid instalment consumer paced the followed 1954 business the growth-in'v credit that revival that recession special comment."exclusively a peacetime phenomenon but, in common with was wartime White, Weld & Co. precursors,: had its .. Quail & Co., Inc. A. C. AH- n and Company Incorporated Alex. Brown & Sons Central Repub'ic Company W. E. F ulton & Co. (Incorporated) of 41953r deserves This its The First Boston of' avoided, Korean War emergency. On this occasion, controls were in ef¬ for *An demand in would riod. credit people to aid in creating (d) postwar backlog for consumers' w r " - , * ■ , tr * -7.7., ,~V_ . -—- F. S. Moseley & Co. Tucker, Anthony & R. L. Day Volume 185 dumber 5628 '.. The Commercial -and Financial Chronicle . (1703): -15— Consumer Credit and Government * - By DR. GROVER W. ENSLEY* ^ . ' Executive Director, Joint Economic Committee United States Congress 'l -A • ' We have listened to - upon a of study by his organization.jAs year 'c'"m s e e r v Board, ,at -general point. liked.his I , While the at ballot Fedeial Reserve Credit Study— : No Case fot Selective Conhoh; box. jV essentially credit consumer private < the effect of are . matters, Federal Government .lih By SIDNEY E. ROLFE* Economist individual. transactions [involving,: the is interested changes in v, the decided impact upon •- ; bility. : ^ ; ; r, sta- : > / • From the standpoint of the gov- ' em- • Concludes that y theory, there is The exercises consumer the for System, derstand, ,, , report -makes on con- sumer/instalrnent credit. have, not time to than I more thumb through the pages of these Grover W. Ensley - though •, riodically study , was the on by volumes, a 1briefed fe staff our the pe- Federal -, Reserve • . An address by Dr. Ensley Consumer Credit 1957! and before the Conference for not of the necessarily Joint own the represent Economic Committee individual members of that Committee, or •. r. - , tors monetarv last .fall vYott:-'make be not king there., No such thing ,. that the consumer.is credit consumer . ... , exists and * . from apart j , the almost universal lief that a comorehenrive and review of monetary as no -credit . policy bp- | The and USS1<> since emphasis is placed on heavy sional industry and leading citizens. The importanCe °f consumer credit, as a and f5 the military, rnnsumntinn anri in- nicin^ ng consumPt.lon and raisin* living levels of the people than more a are committees, .. .residuaLitem in the scarcely be argued. ever, long-term planning of the Krem- lin dictators. The average individ— os '.calls,, the fact that • majoi c7 vA'' "fluctuations in the-' volume of out of out of his ,tne t acts o f as determined by Sidney Rolfe ^he . „ for a 'An . V Mr. Mills (p. 10) has noted what ^ Out of knowledge associations, iarge and dynamic part of the whole credit structure need, how- no for servations with sharing his today. ob- us , \ General Monetary Controls - Preferable ; First, and foremost, . among Gov- tional . series address by Consumer controls Dr. Rolfe Credit 1957, market." is the preferable .«• . . engaged in the granting 0f consumer instalment credit will £in(j themselves heartily endorsing ernor the at Conference Na- r Those . JJr?.'.. 5 the views 0ust "a ? , of observations of tner 1957, March 25, lective his personal path, because it is "more consist-* perspicacity, ent with the principles of a freu | and needed. is all grateful to Gov- are Mills Re- credit, >< studv S?1* ^Phrt^nt con- President has recommended such Sumer lnfumentahty - °"u r Va broad study as have Congresc erally. We ernor f '.his great ex- ernor Mills' observations is whai | perience in I take to be his basic conclusion; | the fields of that reliance on general monetary | banking and controls rather than on direct se~ policy as a whole. 1 point at this time be- this of cause r utmost importance to those in tbi industry and to the nation gen credit;; er study. government, the 'serve consum- p tegral part of the modern debt structure. They can scarcely be ap- can sure in- an underof Federal \ travel'corporate, and private debt and *y .•■ Soviet Russia m'• very opportunity to . are , "f viewed r had j .. n-easin? TheVviews expressedrare hTs do views the > | ' * of progress credit always propriate. ' had- , . discussion of the role of a. consumer • . I was, of the major direc- one the consumer .... f i long-range bullish views for and credit industry.; * / v * '• 1 Governor A. L. Mills, Jr. of the of Governors of the Federal Reserve ago pointed out in connection with request * . - a the free market and at the ballot l' no case the economy larger problem. As the Joint Board this' fundamental-1 prerogative-in*"Economic Committee over a year request of the i U so for selective-controls, short of a war emergency"; finds the study confirms the effectives of general v • king."V. ,*r { V controls, and detects in the study the e with Federal Reserve Governor long as we honor a free market "in-term*-of institutional arrangements and laws, hs well as - oti "the.T.greatest~;good ofv erpments interest in aggregate greatest:.- many." This has spending,; consumer credit, which meant in- the United States, as Mr. is-.the subject of this particular Mills s^ys, that "the. consumer; is ^Conference,-is only one aspect of agrees on safe level. em- -P]jbvrnerlt levels and economic T. Financial Corporation preferableness of general monetary controls, and its ability to control effectively quantity of credit, but looks a little differently on the problem of credit-quality in stating it is the industry's responsibility to keep credit on a sound and . taken; repaid, and outstanding at . Such changes may a Mills „ % .anyone time. ,have C. I. CI. T, head economist total amount of debt being under- •V phasis is well known, the Federal /R ■V: choice either in no or ing levels in the economy are of concern to the Federal Government. -v A.s . up specific points in Mr, Mills' paper, let me make a • tfc; thought-Before I take a market * , . Top Congressional Economist postulates Governmental concern over consumer credit's "leading and amplifying" force in the business cycle, and explains why he prefers general credit controls even though they do not act with the same promptness and dispatch as selective controls.; Should selective controls' become imperative, Dr. Ensley recommends leaving it "to Congress to determine when and how it is to be used, f 7 ful y paper/ by Federal Reserve Governor Ar L.-Mills, Jr., based there has ~(1) ^ Aggregate credit and debt as " they affect aggregate spend- i " ual the expressed by Gov- Mills. They substantiate and with greatest clarity and express the highest degree of for ^ Denver, Colorado. . _ .. SOUlld eco- ' T LontinUed ' 071 page A J ■' • - 7 . r' ■ •' : .?•••■' -VT- outstanding consumer credit con'..-'tain unstabilizing economic influ- • ••.. ^ .:-V. V-. The securities listed below , :: - are - • /•■•:.h \ being offered 1 as a by the undersigned. .. . ;—; .V'. ences ' - ' a New Issue He notes elsewhere at times consumer credit • -V; v > j'.yv". ; 1,200,759 Shares sion of may later productive ; y this Sulphur Company Capital Stock 2 ; solicitation of offers to buy any of these securities, April 10. 195?/ •/ $125,000,000 that had concom¬ oxp^t^tions (Part score 233). 1, ; > "Consumer been a; factor level of of Canada, Limited on "has oflen says, in changes in the 4K% Sinking Fund Debentures Interest ai/<i business -, . Due 1980 Principal payable in United'States Dollars Dated April 1, 1957 Due April 1, 1980 principal factor in consumer leading in ^ Volume activity, but it has not been the principal cause of such changes. ; Although not the Aluminum Company 1, p. instalment' credit," the report 2/; ; nor a ISSUE pleted by the Board of Governors, in a qualified way it apnarently • eintfurr»#»nts // capacity instalment credit iust sumer ' • NEW to be redundant, prove While we have scarcely time to analyze the study of ' offer to sell an " / an credit-cannot only overreach itself by borrowing from the future, but may also engender the expan- . ' 2 This advertisement is neither Thaojjerinii is made, only by the Prospectus. explosive market influ,and (p. 8) that consumer ence" April 9, 1957 Gulf has-been • "almost • Not that instalment ■dig',. .I-.'. - . (p.* 7) secondary distribution ; . credit and any cycle, been both a has amplifying an economic fluctuations. major influence credit has it booms: been has pvcrm'ating add to factor force The , . instalment of less . often fuel to been an during Price 102% and accrued interest reces¬ sions." "Certainly ' VPrice $28,875 per any economy, which acterized as element can in the be thus char¬ "leading and ampli¬ fying force" adding "fuel to booms" deserves the attention of all, in¬ cluding the Federal Government. share a Copies of the- Prospectus may be. obtained from any of the several underwriters, including the undersigned, only in States in -which The such underwriters be and Federal Government, it will remembered, is pledged, under the Employment Act of 1946. to use all of its facilities and. in which' qualified to are the Prospectus act as dealers in securities may legally be- distributed. prestige to Promote economic stability and growth the within free -The First Boston. Investment i : Securities NEW YORK 7 \ The First Huston , are Corporation .Morgan Stanley & Co. to Dillon, Read & Co. Inc. preferred. Kuhri, Foeb & Co, Given the need for governmental Corporation concern, * BOSTON PITTSBURGH CLEVELAND our attitude as CHICAGO will upon SAN FRANCISCO the to precise kind of regulation of sumer PHILADELPHIA ' of enterprise General credit controls be .' framework competitive system. (2) the Blyth & Co., Inc. Eastman Dillon, Union Securities & Co. be most whether appropriate depends consumer Goldman, Sachs & Co. Ilurriman Ripley St Co. Ineorporcttfd spending can- be adequately through the familiar forms general, monetary controls. , hazard Freres St Co. Lehman Brothers Smith, Barney St Co. Stone & Webster Securities Corporation prepared, I be-, lieve, to accept Mr. Mills' obser" Continued on page Merrill Lynch, Pierce, Fenner & Beanc . We would all be ; Kidder, Peabody & Co. debt and reached of Glore, Forgan & Cot. con¬ and instalment credit which 33 , A. K. Auies & Cow Incorporated The Commercial and Financial Chronicle (1704) 26 is about half government and half commercial. WALLACE Industrial stocks continued STREETE figured out to $1.97 a quarter. The actual results for the first to work through the overhead congestion this week after quarter were $3.53 or an an¬ breaking out of a long trading nual rate of $17. The earlier estimate was then described range on the upside the week before. as • * the and labored bit a ' * ' * In any event, Progress in some key areas was view." "conservative a rise the fall and hopes forced trading in generally were high¬ suspensions in the stock both ly selective. But this was in on the selling that followed line with expectations since the "conservative view" and on the a heavy supply of stock was buying when the ac¬ markets known to be available in area the tual results 1957 conservative of such ratios in recently rated at about are Interesting Chemicals . Du Pont which was was back in favor distinctly a nation's the new a '••• tenth of Unlike supply. companies^ without plywood timber reserves, Georgia is in note, the specific reason being position to roll up sizable its upturn in earnings on profits from cutting timber record quarterly sales dis¬ and is closed at the annual meeting. Some of the other chemicals paper that work actively expanding into the Its fields. pulp and in housing line is snagged in a profit modest so the decline in hous¬ last year were also ing starts is not too much of announced. reporting better prospects. a factor. were were Rails Still Laggard Rails * still mostly lag¬ were one .. earnings of $15 to mates of $20 on the present shares this parently, is still in the process with them. However, it ap¬ developing fully the bene¬ pears that most of the oil-rich something of the roads get their production blue chip of the group. Un¬ fits of its vast expansion, is from other lands than the like some of the other com¬ forging ahead in the sales de¬ partment but so far has'mere¬ ones involved in this rightpanies that are almost wholly ly kept earnings steady. The of-way picture. dependent on defense work, issue does have one facet not some favor, including Douglas which common to generally — of the names issues yield that For than the •: was the big industry this is yield of around 1% a Pgjjj»S chemical a 4 Vi. around THE more "norm." "/Ay # 1957 EDITION OF and com¬ any miracle. The costs of share decline in the per- a figure. The company steadily broadening has been its vista, however, and prog¬ seems ress assured tually. cities. Listings cally and alphabetically, and Firm Name under which are are arranged is conducted geographi¬ comprehensively detailed: business and date established Street Addresses, including Post Office District Numbers General (Jwracter of Business & Class of Securities Handled }umes Slock of Partners Exchange or and Officers. Names of Department Heads Association Memberships (including 9 N.A.S.D.) Phone Numbers—Private Phone Connections—Wire Systems Teletype lumbers—Correspondents—Clearance Arrangements An ALPHABETICAL ROSIER of all firms showing city in they are located is another valuable feature. which durable limp solid a quality issue with fabrikoid—^12'^ of pattern a _ earnings Corn Products which is there HERBERT D. SEIBERT & CO., INC. New York 7, N. Y. is con¬ stantly adding to the already long list of products it serves to many industries. Some of the later could ones be im¬ portant in such diverse fields as brewing and foundry work, well as pany as new not coincide They # • ■ '; the only of nental line that transconti¬ never went far exhaustive made of has been an consumer Its com¬ market uneventful In fact the issue held in¬ a this three-point range so until its recent upside breakout. year possibilities a- being in a KANSAS CITY, Mo.—John several in joint ventures, in¬ Burlington & Quincy. selected staff the by « . driven down cer scares, from all the % Corp., a H • e grad- uate. awards The pre¬ recent¬ ly at the Uni¬ versity of Mis¬ Latshaw souri, in Co¬ lumbia, Mo., the Business and School. Public ministration first the such They awards since sented the to school Ad¬ were be pre¬ or¬ was ganized in 1914. The three receiv¬ ing the awards were selected from the many thousands of past grad¬ uates.";. Mr. Latshaw of dent is Kansas life-long resi¬ a City and only present Missouri receive reads John citation "Presented follows: for Latshaw ice in business and serv¬ public admin¬ citation This to outstanding achievement and meritorious istration. the was resident to His award. the as presented University of Missouri by the indication alumnus of who its pride as in exemplifies an the ideals and leadership so necessary in the preservation Society/' Others M. awards the Scott, President, The Bureau Corporation of wholly owned sub¬ of International Business York, sidiary of American receiving O. a Machines, class of 1938, and Fred. V. Gardner, Milwaukee, President Foundry Com¬ of the Smith Steel firm eral 1928. also and books Jjs has been sibilities for better results this broad hints that liberality is in the Estimated of sev¬ * With Walston & Co. {Special to The Financial Chronicle) CHICAGO, Co., Inc., Street. He $ author accounting, class of on Messick, Jr. is Reduction making. as 1942 a sented & progressing slowly marketwise, both because of manage¬ ment optimism over the pos¬ and Merit we re new earnings which was no stranger to for the first quarter are being spirited market action last projected at a slight increase, Georgia- Pacific of is despite filter demand. dividend icate alumnus. ' being made at leasF sales of by various can¬ pany, head of Fred V. Gardner also in the Associates, a management consult¬ American Tobacco Air re¬ a distinguished ant in - Certif¬ ceive are high-yield bracket, ranging up to 1V2%. in Liggett & Myers and around 6V£% in progress the of University Missouri to Award New "Cancerous" Tobaccos the - Asso¬ ciation Service Similarly, the tobaccos which have been repeatedly and Alumni were: High-Yielding Lat¬ shaw, partner of E. F. Hutton and Company, was one of three men an merger with Northern Pacific. The two already participate year * studies *' ■ By Univ. of Mo. : the only.] Award to Latshaw by has presented are those of the author as John being has been concentrating cost-cutting. side REctor 2-9570 expressed in this necessarily at any with those of the views do Great rather enviable distinction that persistance, one. Place in a nudging higher but with life ENTER YOUR ORDER TODAY Park 7% than yield of around 5% and have been on 15 (The article Central and cluding the profitable Chica¬ * products. Internally the Bound in wart like Illinois go, For hook containing 9.200 listings covering all United even¬ • * * Canadian around, up through bankruptcy and in still in the some of the technical meas¬ process of digesting the urements stands out as an Sperry Corp. - Remington above-average road, notably Rand merger of mid-1955 has in bringing a larger percent¬ kept earnings relatively age of gross down to net. The steady although with more glamor in Great Northern is stock outstanding the reports provided b y t h e unusually indicate page . larger yields to 7M>% in a stal¬ the company was SECURITY DEALERS OF NORTH AMERICA and utility shares. Some of have been laggard by normal barometers. Duquesne Light, for instance, has been available recently at well above 5% yield despite the fact that its pioneering nu¬ clear power plant is rapidly getting to the point where test operations will start. Cur¬ rently, this is expected by mid-year. : these of the some expansion plus the fact that tt btates fer was a sive long antipathy to the that they now of¬ 4 electronics of market 1,600 cloudy, there preference in many quarters for the more defen¬ Northern. puters—that hasn't been A bit a marked means better * * The rails $ ❖ Sperry Rand is interesting <%7." in; another growth group—i Great Northern that tt * of is But it turned to some sharp losses a week ago when the company's president said earnings should be "at least equal to if not better" than last year's average which Douglas' two billion backlog year. still "Chronicle.'" of the best acting earnings had to be qualified gard although there was a because one of its important chill thrown over the list Lukens Steel rounded out issues on the year so far. It divisions ran into strike momentarily when its recent gyrations by being the Su¬ tripled in price last year prior trouble. one of the skyrockets. The to preme Court ruled that cer¬ splitting. J ' :;'-V J;: '': * * # tain land grants to carriers issue had been a wonder issue #3$e sjc on strength on unofficial esti¬ Olin Mathieson which, ap¬ did not carry mineral rights Aircrafts were able to show ing it * '■ : With the business situation time to 500 for the indus¬ Through it all the stock that sold below $46 earlier this slightly in doubt wheM proyear worked above $76 mak¬ jections of a 15% increase in trial average. Sensational Lukens ■' squeeze Union Carbide, howeve):, was up Thursday, April 11, 1957 . expected to be the period for the year. low the top side. The timber holdings on company's quality issue. a . but this is when it was busily ac¬ quiring various timber hold¬ year earnings figure out around ings, has also been mundane the $10 figure generally ex¬ recently. It held in a range of pected, the stock is available less than three points so far at around eight-times earn¬ this year and also was promi¬ ings, which is one of the more nent in extending the range THE MARKET... AND YOU By If the . chell 111.— Andrew S. with Walston now 231 South La Salle formerly with Mit¬ was Hutchins & Co. With Overton & Co. (Special to The Financial Chronicle) CORONADO, Calif. Pollard is with J. A. — Rene G. Overton & Co., 1134 Orange Avenue. Werner Baer Werner Baer of Bache & Co. passed away April 7 at the age 49. . • of Voliime 185 ^Number 562ff.;. The Commercial and Financial Chronicle *• *(17W 99 -I Conditions Are ■ overfall* a^omy was slightly ; the Reassuring ■ largerTJast yfeaf thanHhe^yiaMr fore. Thirdly, examination of thd .comparative : behavior ^ of niamt- V i . New York bank finds available business reports, are reassurweaknesses to spread. facturers* * selling labor ing since they do not show significant indications for existing By CHARLES T. BRODERICK* - Chief; Economist, Lehnian Brothers, New York City . 17 costs prices and unit indicates a perfectly parallel behavior on: the part of prices : and costs throughout 1955 - and 1956. This is ; Several ' segments of the econ¬ Key Areas To Be Watched - close attention, ac- ~y "in looking for Signs of a chang-. cording to the April issue of jng pattern of general business Guaranty Trust Company of New over the next several months, York's monthly business and ecothere are several segments of the ; nomic review, in order to antici- which economy would to seem pote changing business direction, warrant especially close attention. The Guaranty Survey points out that, "on the whole, the business First of all, there is the automobile industry. The combined pro- reports which have become avail- duction by all companies able reassuring. They reveal that most this year has been maintained at. sh£htly higher levels than in the' over-all indices comparable period of 1956, but the - during the past month are are still at or near records levels, and they fail to disclose any significant tendency foil existing weaknesses to spread. far so Brothers chief- economist perceives. rising t business. level for rem&Mder of 1957,:corporate profits keeping pace ?nr with rising G. N. P. and labor*paced rising prices creeping A,.' omy "warrant • Lehman ■ '*■ .: While there has been of incomes, had cai!sed 8?5?e concern by falling off more than seasonally in January registered an impressive rise in February. s "Weekly data for the early part of March indicate that this pattern of approximate stability has continued. It is true that steel produc- tion, whose movements are so highly publicized, has lost some additional ground, but there have been offsetting improvements in such areas as paperboard and lumber production. Thus, the indications are that aggregate indices for March, when they become available, ^will once again show only fractional change. "The emergence business situation of has stable a been ac- companied by growing signs that inflationary pressures are abating, There is no longer any marked tendecy for prices to advance'in a general way in primary markets, Instead, the so-called sensitive price indices have moved more or less horizontally over the past tion here adjustments these adjustments are U3\i s a costs rise and prices inexorably massjye econ- follow suit. Since an annua 1 omy^ahd, be- growth in manufacturing producfaus?fei; ,J?° tivity of 3f3^% is probable and larSC,fan^. "1- since most industrial unions are vers^,; adjust- likely to; continue! to ■ win wage merits or re- "This stability of business, and specifically the failure of to spread, seems to more have bolstered sentiment to some likely to be "Third, the trend of general business inventories will be espedaily interesting over the next several months. By January of this year, the rate of inventory accumulation had dropped off sharply from the average rate for 1956, without, affecting as was the production to rate noted above. industrial of marked extent. If a industrial production holds up similarly well over the next severa^ months in the face of a continuing cautious inventory policy, such experience would be very encouraging, since it would testify to the resiliency of the economy, Finally, it will be important to whether the downtrend construction which is now of weaknesses cessions take Charles T. Brodenck effect The with values drifting-more less or sidewise in light trading. ;m Sentiment may have been lm- to bfcame which the for example term durhS available the past month % of longer The eovernment 1released thfSts any total what hapAutomobiles and concession^ of 5% or so a year• it is quite reasonable to anticipate that the difference of 1-2% will be reflected in annual price ap- some tween these rolling adjustments in stride. gross national product will probably rise about 4-5% in 1957 The above 1956. preciation. American corporations as a whole, the case for an increasing squeeze corporate profits falls flat on its face. , if t i'atS ¥ -1/, Henry Wingaie Dir. Of J. P. Morgan Go. Election of Henry S. Wingate as member of the board of direc¬ tors of J. P. Morgan & Co. In¬ a corporated, 23 Wall Street, New City, was announced by Henry C. Alexander, Chairman. York International Nickel Company of Canada, Limited. He is also a di¬ rector of American Radiator and Standard Sanitary and of the Bank of trustee a for the of Corporation Montreal, and Seamen's In the first place, pre-tax cor¬ On the subject of the long-term price outlook, this couritry is faced porate profits were higher in the with perpetual creeping inflation. fourth quarter of last year than in any one of the first three quar¬ *From a talk by Mr. Broderick before ters. Secondly, such profits were the Central States Group, Investment slightly higher, not lower, for 1956 _ Bankers Association of America, Chicago, March 27, as 19S7. a James Kyle Adds (Special to The Financial Chronicle) SAN DIEGO, Calif. — rpdlirf:nns. arp of James Kyle Company, whole than for 1955, just as With A. R. Nowell SAN FRANCISCO, A with A. R. Nowell & Montgomery Street. Acceptance Corp. 4%% Subordinated Debentures due May 1, 1977 Price 99% (and accrued interest from April 1, 1957) , »general business into the indefisurvey of businessmen s capi- °.f fllfnrp will hnvo to ho retal spending plans for 1957, which* ® &¥?» have to be e Upon request, a With Stewart, ■ . ,. _ of a Company Prospectus describing these securities and the may be obtained within any State from any regularly distribute it within such State. The securities are offered only by means of the Prospectus, and this announce¬ ment is neither an offer to sell nor a solicitation of any offer to buy. Underwriter f ing at high rates throughout most of the year. These fmdmgs are a copy business of the who may Eubanks _ „ significant, because there had been considerable expectation that K _A, bU, Calif.— this type of spending might un-* CosteUo is now affiliated dergo a "rather sharp decline in w Stewart, Eubanks, Meyerson the latter months of 1957/ j & -Co., 216 Montgomery Street, _ "Relatively gratifying also wfcfc-e the results sumer of a spending 1957 made public survey of . by the Federal Reserve Board last month. point to ume, a con- These . members stock of the Exchange. vtoosly' with-' Pacific He Coast was pre- Sdwto D. Berl & A' Goldman, Sachs & Co. IHalsey, Stuart & Co. Inc. - The First Boston Corporation ; A. G. Becker & Co, probably not a spectacular volume, of consumer purchases over the remainder of Blyth & Co., Inc. v s>ons* Lehman Brothers / Kuhn, Loeb & Co. Eastman Dillon, Union Securities & Co. Incorporated Glore, Forgan & Co, . Kidder, Peabody & Co. Harriman Ripley & Co. Incorporated Joins Colorado In v. (Special to thf. financial chronicle) while these DENVER, Colo. — Wilson B. Lee Of course, data for both business and and John A. Neill are now afconsumer spending are encour- filiated with Colorado Investment aging as far as they go, it must be r . 509 Seventeenth Street appreciated that trends in these Co., fnc., 509 seventeentft street. areas are subject to change with Lee was formerly with Greenthe passage of time. berg, Strong & Co. Lazard Freres & Co. : Merrill Lynch, Pierce, Fenner & Beane Stone & Webster Securities Corporation ' American Securities Corporation April 10,1957. Smith, Barney & Co. White, Weld & Co, survey • „ continuing large vol¬ thqugh the year. . Calif.— Alfred J. Lacoste is now affiliated $25,000,000 Sears Roebuck ' (Special to The Financial Chronicle) substantial.. If big cuts are made, the complacent assumption that sanding Federal spending will continue as a certain Pr°P f°1' suggest that there is a general inclination to continue such spend- Stanley Wierzbicki has been added to the staff in activity. im- Bank Savings. 1904 Rosecrans Street. two years' some ) Profits Keep Pace the large backlog of spending authority which the Administration has, but it could be of gross na¬ Mr. Wingate is President of The With regard to the current ^ Creeping Prices and its summer ad- now summarize, if the product grows about 4 to 5% from 1956 to 1957, asT expect, corporate profits before taxes should also show a slight gain. Of P "squeeze" on corporate profits, housing, our two biggest consumer ^uch of it is imaginary. This does industries, experienced production n0^. mean that very^ many corpopened last year. duration, will be arrested, "lt will also be interesting to see how far Congress goes be¬ proved also by certain survey data pertaining the Witness economy. which uneasiness on in areas without adverse journment in cutting the Admincharacterized security markets istration's appropriation requests, earlier this year is no longer par- The outcome will not necessarily ticularly in evidence. Instead, se- h»ve much impact on business curity markets have been quiet, activity immediately, in view of degree. m a y place several of steel To tional . completed by May, with the condeclines of 27% and 16% respec- rations and quite a few industries sequence that the steel operating rate will stabilize by that time, tively, yet the gross national prod- aren t being squeezed by rigid uct expanded by almost 6%. We prices and mounting labor costs, If this stabilization should fail to will probably suffer setbacks in Indeed, this is unfortunately so in materialize, the impact on general sentiment would almost certainly several industries this year, but far too many instances. However, it is our belief that we can take if one extends his inquiry into be unsettling. residential Sentiment Has Aided by users (including automobile companies) and that by and large note month. is largely the result inventory years. , t : flow re¬ the price trend is virtually diecourse this is only another way of is in tated by a powerful labor movesaying that corporate profit mar¬ prospect. This ment. / V * V : ;, !' gins ought to remain reasonably js nqt to say The chief determinant of price constant in 1957 as compared with that each and js unit labor costs. Where wage the previous year. . eyerw- indus- increases are granted which extry \y>l|,poom. ceed productivity gains, unit labor , record immediately, flected the upward pressure of la¬ bor costs during the past two year Industrial And employment, which only Another way saying that-the pricing policies of ^manufacturers a balance of the ruary tinued perpetually. tempo- While the erosion of the dollar is rary lull in the economy during a dreadful thing to contemplate, the past few months, a rising level we are powerless to stop it. The of business activity during the reason we are helpless is because failure of sales to run ahead of last year's pace—at least through February -has raised doubts as to whether this favorable relationproduction in Feb- ship can be maintained. The spring showed no change from its period should resolve this uncerJanuary level, according to the tainty, and the outcome, whatever Federal Reserve Board, whereas jt is, Will inevitably have an immany analysts had anticipated portant influence "on general busitnat conservative inventory poliness, j >. cies might occasion some decline. "Secondly, developments in the Similarly, over-all retail trade for gteel industry will be particularly the month.equaled the large Janusignificant. The present consensus ary volume, buttressed by a con- js that the downtrend in produc- • of Co., 400 * The Commercial and Financial Chronicle . Thursday, April 11, 1957 . . (1706) 18 ADVERTISEMENT ADVERTISEMENT advertisement SOUTHERN RAILWAY COMPANY : *77;777 Sixty-Third Annual Report for the ,Year Ended December 31, 1956 . ■•V '■•"'f.'" 'r.r* f.' ■,-V i" ■' ;■.« - ^ Tax accruals 1957. March 27, dollaf •S ; Stockholders of To the ;■ share of Common Stock and thus the net .-• The 1954 loyal acknowledged. The of support income Southern This Net railway represents after deduction what of our •■■7 1954. ended A. DEBUTTS, HARRY rents, expressed dollar of in revenue, all its Maintenance Malnenance bills and other taxes, Traffic ' share per and equiya-j'7 of o'// . * 77; "V.'''! . Equipment and '3; '■ 1.93d Expenses 4.26d 4.04d 14.87d 1.43d 2.2.7(2 83.41d __________ in 1956 were covered 4.08*thnes as com¬ 1954. * 167590 out of each dollar of 1956 operating of 1956 charges, for maturities of revenues, compared with *17.490 in 1955-and 13,870 in 1954. *- .During 1956, dividends of 5% or were other year in amounted the Company's history. to $240,961,999, 1956, as passenger ___ moved___._______ mile__„_ ton per ——1 miles __ ____________ passenger mile an . ernment served ' acquiring 225 miles 15 billion 13 billion 1.570 cents 1.568 cents 1.609 cents were 2,231,324 share 1,953,422 300 miles 267 miles 482 million 523 million 548 million v 2.972 cents 2.831 cents 2.825 cents earnings of were $4,276,573 from the previous There year tax accruals as. a were by the were jon over 1955. Amortization also adjustments of result of the disposition of items in controversy, with the Internal Revenue Service. addition, there were result of substantial retirements of capital improvement in operations—princi¬ pally retirements, reflected in the Company's, accounts increased rental e$ty incident to control north of charges, of the a lessor company's installation Atlanta* - of centralized prop* traffic was also paid February 15,^1956, an share-out of the $36,891,614, a deT year. , Common Stock were and on after the of Common Stock: dividends provision on in 1955 On year, a Stocks was declared net earnings of on its i : industrial j of program develop¬ in the South. 7 progress was were these Atlanta, at is made during the made in the Georgia, on year. modernizing and accounting on the line running north Gharges to the .capital account for roac| '7 1956, share, on a January 22, 1957, out of surplus 1956. This dividend was paid March 15, 1957, to stockholders of record February 15, 1957. New.Equipment 7' received Company 615—70-ton hopper and • 60—53'e" 70-ton flat 15—65'6" 70-ton * f i hopper cars 7 } * I cars gondola cars • i ,R 1—Diesel locomotive the cost of which was $6,085,561 of which $885,446 was paid from the Company's treasury. financed through tion, $1,880,927 to equipment. for into put cars 70—70-ton side-door to the Common - the . all quarterly " service^— • a Yard of capital funds Among Work is also under way on the installation During similar amounted the Preferred Stock, dividend of $4,543,700, or 700 plant 7- : equipment maintenance '* outstanding made for dividends amounting to was . expenditure centralized traffic control $1.60 and in 1954 to $1.40. After power property were $17,510,850, gross," in 1956.7 ; of Common Stock paid in split, amounted to $2.60 during the $3,000,000, or 5% for facilities. expenditures and from Atlanta. . the Inman new procedures. pf $2.00 per §xtra dividend paid out,of surplus net earnings of 1955. basis, total to the the* old Common Stock, the basis of the number of shares on serves modern substantial roadway paid surplus net earnings of 1955. dividends per share of 9% Continuing improvements to the Company's plant are which , 1955 after providing for the 5% preferred There it being made through two and one-half for September and December, all out of the surplus net Total Railway tax accruals for 1956 7 paid in March and June and dividends of 500 per new about coal-burning steam in Gov¬ 250 were the *new $20* on Additional dividend. increase of 4.33% a • each share of the only properties cities in the territory Dividends of $1,-00 per share on the old Common Stock on outlay Capital Improvements Payments meeting in May 1956. in figure whereas the contiguous to the fast-growing towns and the Preferred Stock 245 miles affected desirable and $15,000,000 229 miles 1952 the. Federal Goyernhjeiit accounted is actively furthering Company approved by the stockholders at their regular annual 15 billion » . equip¬ previous years except exclusively by the Southern. and 222 miles building as for .new 58,626,459 year. contributing stock split recommended by the Board of Directors 67,200,420 fbr all double the capacity of a yalue; shares resulting from 69,134.507 fabricated metals, almost entirely private capital with the was one 1954 to the System r.:,. share in March and June value stock. par that of the aggregate par 1956^ larger. 60% share in September and December 1955 be $50 per of about revenue accrue projects.7''7,.;;; fbr created were Gross 179 projects in that for $10,113,945. Taxes were then 62.50 were jobs and 423 ever, per 1956 continued to expenses the on • compared with 1955 and 1,602,854 Payments $710,542,800, the in large to made exceeds continued in the total amount of $3,000,000 for the year. investment 128 and were expenditures passed;, the billion-dollar mark. How-, • on additions ment ment in $275,385,491, were to Total industries new when The in 116 86.13d ■ 5.52 splits frohi year 7 The substantial investment in construction and 1.80d 38,871,606 stock history for particularly good was a production of primary and debt, for capital and corporate needs and for the owners, June '.7 our 13.63c v 82.51d : in years in 7'.r:'■; materials, textiles, paper, and chemicals. 1956 fixed for It best was 70.70% and The trend toward greater diversification in manufac¬ 5.39 remained the warehouses; existing plants. 70.70<f 7 1954, standpoint of major deyeldpments, not only in new distribution ^ 0^860 : 65.37d in turing continued with notable gains being made in the 3.58 Revenues higher by $7,833,923, as 2.01d 0.72d 37,993,249 passengers_'__—— as a Totals of $17,000,000 annually is estimated to 17'.68d 1955 Industrial Development' one from these 1.73d 31.91% ■:'77^;-7'"'.\^777'7 —' - 14-.20d 13.4ffd Facility Rents Joint Fixed charges There upward cliipb of wages and "costs of materials and" In ■■■' and in 31.91 d 3.51d and / 31.15% was operating revenues, 12.57d Dividends Average revenue per assets was expenses to 30.26d pared with 3.84 times in 1955 and 2;95 times in ' prior 68.58d* 1955 approximately 26,218 workers. 26,262,681 —[lL deductions 7 1954;777777 with 65.37% The- System gained Revenues and Expenses distance of •: in income compared with as plants, but irr expansions of existing industries as well. 1956. miles crease 0.73d , 1956, 1°54 16.58d to continues federal before in 1955 4.65 freight moved Operating the corre¬ 33.190,325 ' journey ;; 777'v - Grand 1954, was: Passenger ';7 7 • each $3.82 to $14,337,404, mail revenue to Average 17.18d income 23.51% 7--7 industrial growth. $27,834,916 adjusted., for June Business handled in of 7 13.33d Expenses Equipment Earnings Per Share of Common Stock After 7 Preferred Stock Dividends* Charges any number . Taxes Net Income. After Takes and revenues revenue 1954.' .1956 ;'7'7'7/:'' ' •$1,527,923 less than in 1955, but exceeding the operating Average V 31.13d ; Way oi Totals Cdmrnon Stock (computed of were: ♦Figures Average of out years: - 1953 Ton operating compared ; ■—!— 1956— of cents shown in this table with are Transportation 1953————____ Ton* of number 1956 Income Net 1952 < the to 68.58% amounted Preferred Stock) revenues y':y.,77 REVIEW OF 1956 pfter provision of $3,000,000 each year as dividends on in and It was $34,557,054 in Ratios Company The Company's operating ratio for 1956, which is the ,f .>•' >7^73?^ * - operating compared with 30.26% ratio of In 1955, net railway $48,430,035; was the the leaders of the railroad industry. 77 proportion of gross revenues carried through to railway revenues taxes, increase in no The cost of transportation ratio for 1956 as expenses, was rates, the recognized indices that 26.13% in 1955 and 2tJQ9%■ in ; - operating sponding ratios for the two preceding President. earnings Freight ... ; -7 .: 7 ... ating expenses, taxes, and equipment and joint facility £ Sincerely, $38,871,606. revenues f; The ratios for 1956 of the several subdivisions of oper- Richmond, Virginia, on May 21, 1957. provided for Operating of operating ';yy'■ stockholders at the Net income for each of the past five years V / left was all 7;'-'7'..; Incidental Expenses . •■7 equipment and joint facility rents. of i 7; ■■_ operating income for 1936 was $45,691,368. This General i .7 in, wage show taxes amounted equivalent to about 810 per share 7 The net While there in 1956 to assist in providing for a sub-... performance . conducted with continuing economy were efficiency in 1956. rank well among reduction in Such taxes of a Operations stantial increase Zy in computing federal <*.■ Railway Operating Income charges in 1956 and ended the year with a net income lent >7 7- . capital ' investments certain effected was Net • Bdard by our approved presentation to annual meeting in and operating income 1956, has been 31, '.7 ' ' ''""S %:•*. . 7 gratefully is report on the following pages, for the year December »• defense, while hot. chargeable of national taxes $5,227,771. ' <o£ Directors for aid of Common Stock. lowest the at employees our on ' ... V• mission regulations was allowable ;oossible cost. " amortization generally should be obtainable system transportation a.|r ' adequate, comprehen¬ country to have the most Operations and gross revenue regular depreciation under Interstate Commerce Com- ;7 to particularly, the owners- of the Company its future by supporting legislation intended to ^government officials and the public sive ** />.V in made rjrant railroads greater freedom to compete for business •on a more equitable basis. We believe the aim of our £or the preferred dividends. - Rapid year, help •' • were" greater 7 earnings of $5.52 per share after charges, of increasing wages and costs of all kinds, demonstrates the improved earning capacity of r^our Company. Your management believes that satis¬ factory results will continue to be produced during 1957. . per than railway, despite This - . T -v' ; 1956 amounted to Taxes, for revenue. $5.68 taxes and good one for the year 1956 was another The fact that y0ur gross out of each 13.400 .. COMPANY.7 SOUTHERN RAILWAY of equivalent to were equipment The remainder was conditional sales agreements. was "spent Thus gross were In addi¬ additions and betterments charges to the capital account on $7,966,488 in 1956. . Volume 185 Number 5628 .The Commercial and Financial Chronicle (1707) ADVERTISEMENT ADVERTISEMENT 19 ADVERTISEMENT SOUTHERN RAILWAY (Continued) Deliveries , ment strike. substantial on In 1957 there have been equipment estimated to and orders of additional i*With, these equip- delayed until 1957 because of the 1956 steel were cost will be delivered or approximately /«.'* ■ / ; (2) - For payments ; 1050—50-ton 50'6" box cars 200—70-ton steel hopper ,</; , 103—50-ton auto ...v V; / parts contained .>? : cars : . (and cars ■ new v to »' and at of $49,000 cost a pany's treasury.- 1954. delivery. ,-r ';;v its to real freight will have been cars tipnal equipment has also been received by. the approximately 50% ownership of freight cars. the obligations amounted year $86,482,460 at the end of V.i',; 1954. to outstanding $75,513,255 end of 1955 new y at in and the end the to as effect to $75,489,165 $10,011,955. cash on by bonds in at of approximately $12,443,278. ; as $12,087,400 in and through or advances $7,706,500 for '■ ' held ■■■■' ■ at by (less charges subsidiary a the., annual - to owned rate of laid as all-time 31, end' of high 1956, "as 1955.- for the approximately was tion of than 40% more totals Company's $18,000,000 V' M for to five 1956 1954. 171.48 or miles, of 33,627 net tons, ''V"'; ■"* :•'/ ■- •: / gross revenues, The Company has ordered 34,160 net tons of rail for the year 1957. - .■ • in ' public V * of debt such In .v of Railroad Air Line , Company joined with St. Joe Paper Company. and other bondholders of Florida East Coast Railway in promulgating and filing with the Interstate Commerce Commission Coast a plan whereunder of reorganization that of Florida when company, be owned by bondholders. St.- Joe . Paper Debt, Obligations, lines, Equipment Fund payments 1956, In end for Railroad Company stock in a the piesent proved offer filed with the reorganized Joe Florida provided approximately plan depending on the $22,700,000, OF GENERAL INTEREST TO referred The Commerce East Coast event to the subject Railway above. Commission Should this near Interstate railroads majority of the a the number of shares acquired. decision is expected in the leased Sinking 1957 compared STOCKHOLDERS in 1956 of The Commerce In -addition to certain to effective joint December intra-territorial effective No final The future. in maxima, also 28, freight effective authorized inter-territorial freight rates, ap¬ granted March 7, increase an th<^ of rates of 6%, 1D56. 5% in* subject to certain maxima, 1956, and the same increase in freight rates subject again to maxima, February 23, 1957. railroads fares 5% the Company's Financial Resources meeting all of ing substantial items during the cash: its current authorized were „; - provided at - for mortgage maturity amount of and the In L year from its treasury - * to a total Non-Operating request wage disposed was 100 per hour for Road Firemen and of 70 1, 1956, Hostler and additional in¬ an November. 1, 1957, and hour per cost-of-living a of agreement providing an a effective November adjustment six at 1, months intervals of 10 per hour for each half point increase in Consumer Price Index, beginning May 1, 1957. the The . three-year contract contains, cluding general other any period moratorium clause pre¬ a wage November 1, • increases 1956/ to during the November 1, 1959. . ■Benefits obtained by the employees under these settle¬ ments 1956 cf increased the increase wage cost -of demands approximately will $4,500,000 in result per annum Company for the first year, approximately $2,additional 500,000 increase in the of any for same the second additional and year, amount for the third year, exclusive benefits obtained result of as , increase in the an Consumer Price Index. the Train close of the still pending year, requests were for Engineers, Conductors, Trainmen, Dispatchers, Yardmasters and Train Porters. the maturity of $32,803,000 bonds. It provided of Tennessee, Virginia.and was of 15% held in re¬ been Interstate in railway January, announced. trailers way over thorough a the railroad indus-' the rail lines. analysis the of The Company has made various actual operations so far undertaken. tinues time, and further studies it has will be proposals made would operation over represent an in Southern territory Commerce mail 1957, Commission but no The rates. pay the request. an and lines this Georgia increased increase - The rates has yet recent of 4% 7% charges, effective became - increase of 15%. certain March 20, effective Railway Express Agency additional with is w . > ' ' ' " . - I 1956. now been a in steady increase the number of for some years and a area a revealed that part-time farmers real are two out of three :of located in the South. significance for the future of our the» This territory; experience has shown that the part-time farmer makes exceptions, December has study nation's has and at Post A hearing decision There small farms in the Southern's Express Rates Express to of the any economical Company's the con¬ time from that of: and While interest not yet been determined proposals profitable an 1940 amounted (Piggy Back) Agricultural and Livestock Development - payment Company's ob¬ of $124,103,000. Much interest has been shown by principal were the these two issues which in outstanding liability for $7,463,000 Highway Trailers by Rail try in various arrangements for the movement of high¬ Railway Mail Fay railroads .operating the from increase ' - the 1956 sought bonds... These payments completed ligations under and and were time. , cancellation East increase passenger \ general 1956 Cooks Foremen ' . , maining principal amount of the Company's development and period the property on the same on of 70 per hour effective various increase to effective May 15, 1956/ and an additional 5%,» Office Department is opposing It Car *f expenses^ < (1) con¬ other any ; J) Dining of ; taxes and fixed payments, the Company paid the follow¬ • are equiv¬ three-year hour for Yard-Firemen, Hostlers Movement of Commission increase general a Commission f • the Department - - . increase of crease Fares effective February 20, 1957. Use Mechanical Firemen's - per At THE precludes the national settlement with the as year. year as during requests wage and further Line than $12,500,000 and not less than $8,400,000,. more in which cost 1,1956, to November 1, 1959. 1956 the finally be accepted, the cost to the Company would be not for and This three-year clause increases wage an 160 for previous maturities of $86,482,460 rent hour. per for wage increases Paper Company and the other bondholders, in the the Interstate joint offer to acquire Company from St. the of interest, Obligation be with employees $125,- $75,513,255 and compared at- the to to In addition to of „ August, 1956, the Company and Seaboard Air Commission basis East and 2^20 moratorium 1930. amounted 1955, 31, Rates and , equivalent were ; per further a contract compared with $166,995,500 as accruals and to 31, as December obligations amounted reorganized, Company charges J a 1958, and a with $23,166,778 for the year 1956. - would other such Payments March, 1956, the Company and Seaboard Fixed December at 1, 1957, and to 1958, the.Company outstanding in the hands of at increase of 100 an dependents Helpers, effective November v- ■ by tains for ' gross compared, with 4.26% in as of gross revenue in 926,500 of Funded Equipment Florida East Coast in 1954. 15% The debt of the new - than more negotiation alent The averaged -. . requests wage a three-year 175.55 or 146.12 miles, or to new 1956 national through national negotiation by be $118,868,608. has years increases, the Employees. ; of the through disposed of in negotiation < from the alb-time high of fixed the :last $269,643,070. of ' • Employees' provided health and welfare coverage at fixed 1930, - approximately $306,- Index, beginning May 1, 1957. wage Waiters exclude net in Price The subsidiary. a Train ; with compared These charges but the reduced amount is payable out of in disposed general . which and cost-of-living adjustment at Six months intervals of er by the Com¬ the Company's bonds held by revenue compared with 40,766 net tons, miles, in 1955 and Waiters, Company. Non-Operating November approximately charges December from Yard- 10 per.hour- for each half point increase in the Consum¬ • income on on of Department hour effective November 1, 1956, an additional increase a the the Com¬ on and at the 000 per annum for the the i " p. 4- ■ of its Leasehold Estates 1955 and 4.93% were and three-year contract providing for industrial facilities v new serviced out of gross revenue at that time of i^p. During ,1956, 39,840 net tons, Cooks of 70 per hour effective November The current figure of $10,648,000 not only shows a reduc- New Rail ; Car Mechanical disposed of through national negotiation. were The The current net fixed charges^are equivalent to 3.87% rail Dining requests wage meats resulted in increased cost of in $19,876,600, $11,810,000 The * of expenses were $10,648,000 the ; exclusive came , were 1955 directly, This will be offset depreciation, to ; subsidiary, expended were charges rapid amortization, chargeable to operating the amount of 1955 Dispatchers, increase of 70 per hour effective November 1, Company with : 0 will amount betterments ' securities 1957, installments of equipment debt payments due in 1957 the year Benefits obtained by these employees under these settle- for Net Funded Debt and Fixed Charges pany's v' - compared as $2,934,609 with. $22,556,208 1956 state Commerce Commission .With the sale of the additional equipment trust notes V »■. the Train Of '* Porters The Company's fixed charges, as defined by the Inter¬ of the Sys- * >v and • ' pany), Equipment During Foremen, for $10,969,205 f Equipment Obligations^ - $16,629,426; 1 Com- Costing about $140,000,000, these constitute tern's entire in with .$13,385,600 4 receipt of this equipment in 1957, while substantial addi- cars payments estate h... pany's affiliates. - masters, produce income to the Company. '■' put-into service since the end of World War II with the freight / acquisition and construction of new Labor Relations * of and 4 '-v- (4) The which will be paid from the Com- ■Approximately 26,000 spent additions and $21,321,996 in 1954. (3) Dividend will be delivered in 1957 cars - $30,533,240* in, 1956,? compared installments with 20% of the cost of the equipment paid A compared ;In addition, 5 gondola Company $13,903,814, V consisting equipment .. equipment is being financed through the sale of on its capital- improvements to road equipments Combined, these capital expenditures - equipment) Company's treasury maintained obligation. an equipmentobligation -installments, equipment trust notes payable in 20 equal semi-annual from the for structures,- the 1955 This on -,?■ equipment, . having defaulted new $13,850,000 and consisting of: payments,'the Company record of never, - A further excellent industrial worker and both agriculture stand to benefit from the small farm population. - * . industry and steadily growing t 27,. 1956. applying for an ] Crop production throughout our territory during thq year was generally good. The abundant peach crops in The Corrtrrtercial and Firiancial Chronicle 20 - Year .Tlunancial Position at the End of the (Concluded), SOUTHERN RAILWAY to substantial led Carolina South and Georgia new 1955 iacilities, locomotives,/ shops, 1956 for plantings of .tree the best year of record was before--being so utilized farms, more acreage than ever alike. by commercial and smaller land owners There • . otld rreatltc' ori<4 ^ amortization// / / Depreciation, donations and By PAUL EINZIG ,S'' 'tio_ ^ ' • • In other and the number one broiler considerable increase in sheep particularly in Mississippi, Alabama, Georgia Sinking There was Carolina. and South I. % ' , , , . ^ V. • & ■ * 3 And ^ \A i. J* repealed. It should imposed during World War II as a was supplies in Jl,114,595 that tax be accrued the ment Exchequer, 10,907,200 8836,310 11,288,211 6,428.091 5.212,436 4,193,152 totaled $811,799.58^ 5856,148,885 $821^il0 Dr. -Paul : . /- items due. other — due $36,008,601 $33,452,688 $29,607,557 37,785.989 46.029,477 40.092.566 5,088,397 4.580,172 3,846,058 ernments Com¬ but 12.600,528 7,707,729 these $95,776,046 $101,846,589 $85,896,735 reserves was located too highway, or ; ■ .. cowiwwhet .assets of--—t— destroyed. lowing*,'./' />'' : • Solution to these Funded stantial benefit to your freight, passenger .'if?. , the $735,213,289 total capitalization oi is In 1954 In 1955 - 4'': from — this net from iiiainecl i7 ; deducting tion a there re- in- ,vested; in-the; property, ■ t to industries feel that they would competition in the Continental face ' • reduction the end of existing the of first and 20% by the end of the second four years. Not until the end of 12 years—which period is liable to be extended to 17 years—will the scheme begin to pro¬ duce its full effect, for better or for worse. But in the case of some industries the margin of advantage over 60,000,000 60,000,000 60.000.000 329,820,000 129,820,000 129,820,000 that even a reduc¬ tariff by 10% would open the Continental competition is so narrow $404,452,717 $461,629,565 $466,868,270 the of protective floodgates for competing imports. So the industrialists concerned cannot indulge in the dubious comforting capitaliza- largely assets surplus, of emergence 1 true, the maximum will only ble 10% by tariffs Stock a the four years including bonds, Making But many other able be It fol¬ Stock of ^ domestic market. Year miscel- ana of Common Alter received Company -i tion lii 1956 The .HJtl'J' - Results for the Financial ■. .. Debt, Preferred would be of very sub¬ Company, 'i- «'< \:'i not equipment obligations, etc.— $214,632,717 $271,809,565 $277,048,270 problems, for which your interest and support are earnestly solicited, consisted pany both, is effectively and permanently or . '$716,023,539 $754,302,296 result a large free trade area are of course enthusiastic about a the idea. ■ using either rail l,the capitaiiz^tipn of the com- development, industrial for tunity highways, oppbr- the private rail near to assets there remained, for1 'the" tapTtahzauop of the If such highways highways is of critical importance. are publiot;:; ^ As Nor has the government an easy task on the domestic front. The industries which stand to benefit by access Alter deducting these items from additional con¬ interests, the British attitude is now in the melting pot. liabilities, , and of conflict ■ credits are whether or not the country con¬ ahead with ambitious indus¬ to schemes. trialization 11.650.588 economic matters as is anxious to press cerned not far as far from being subservient tools of the The answers received vary very Office in London. according widely / 4,642,825 5,183,724 including others, to which, are Colonial 5,242,471 lengthy engage in with the Commoawealth Governments but also with all the Colonial Gov¬ and involved consultations, not only cerned — liabilities, for the British Government to sary due adjusted yet *•: ■ of the necessary The location Einzig major headaches caused by the scheme is the last-minute decision of the Messina Powers to include overseas ter¬ ritories in the scheme. That decision has made it neces¬ road and equip- from are principle to the announcement of the definite formula, and when it will be announced it is likely to be sur¬ rounded by many "ifs" and Vbuts." The most important of all t the 024 and i Thorneycroft, Mr. committed to it. But it is a long v/ay from the acceptance of the posals are being actively sponsored before Congress. (3) Both Mr. firmly and-reiits yet , of .' This does not likelihood of of the decision. Macmillan and his Chancellor of the the to companies, not but Dei trred Th^se pro-* highways. automotive time softie that there is any reversal a heavy-duty rail highways tt> the already overcrowded,/ publicly-financed increasingly evident. mean owed for materials,- leased panies limited-access, privately-owned, partially-used, | fs,216,778 J * ' ■ Depreciation: of artificial, uneconomic diversions of traffic from nate available yet Operating Rc-serves effectively termi¬ transportation charges. It would also unadjusted Taxes accrued but not This would save the public money in -transportation. equipment and railroad other competition from other modes of > reduce rates to meet 71,859,779 for and 'Interest, 'dividends that would enable the railroads to mended legislation fuel, examination for by the government and by industrial organizations.,*;! the difficulties < that will have to be faced are becoming supplies, wages and balances to Cabinet Committee has recom¬ President's The (2) detailed . '//A/. /A /// not The Company by the System should this repealed. road The Assets of the Company additional -,gross of million $25 would be realized income ; but The diversion is substantial and estimated been 79,177,325 | 19,408,5J16 A. necessary assets Company carriers to priit has by diverting traffic from the common 1 vate carriage. $31,679,261 debits, including items owed to is not now producing net tax government. This tax is easily avoided to the ^$32,174, 14^ and order good Deferred temporary expedient and revenues $f6,848,559 ' in Sjecuriti es keeping be LONDON, Eng.—When the British Government com¬ itself to the principle of a limited participation' Comfnon Market scheme, very few peo^ pie realized the highly complicated nature of the problems that the decisioh would raise: Now that the subject has been under in the European ' tax on transportation federal excise The (1) 151,500 rails, ties, bridge material and , , 151,313 j °<i1£r^ /ilr<-ad» 4X.J others*k»wdd the CoApa; the) Th^Con^anJ had dh'SaJjKd other subjects of: 3.994 V $717,092,224 $712,163,057, $68^,872,843 actjop and .represeti(a-t wjJL-L- 98,104,283 id investments temporary marketable session of the 85th Congress on the present 111,683.408 mitted ■ deposits"lamJanTirig to.lj ? -• industry are the^admmistrdtlorfc ana important made before tions are being 107,122,499 formula to cushion1 / /.; : : •" li ] a the economic 'shock. V --- Other problems require governmental '' provide sufficient time to/evolve _/ Company ttac^ ^xial x'ial deposits lafht Solutions ipr somp of these receiving constant attention. ^r' • , ,» railroad entire the / of — e ' A affecting Problems nor satisfaic- ~ offsetting safeguards be readily erected. Writer ;believes the liberal 12 to 17 year interim period should ;, dismissed, according to Economist Einzig, carried redemption for Total investments i*. <«. P 1 Looking Ahead fund bonds .. •' •'* , tory . companies investments Georgia again led all states as population, *'■*#' 122,578,014 .129.900,420 139.373.431 " bonds and , affiliated of notes producer. 'P.J- Problems deyolring from Britain'* limited entrance into!the European Common Market plan can not be easily the. Company had in¬ addition vestments in stocks, beef cattle and hogs. in the production of own r 4~ 't 'V' ,7 .'"j '-r •• held its ' * $(J09,9o5,731* $000,328,276 $585,557,060 livestock production. The South of our section in ance . *://-/;/p //•;«'.' ' • and uc- grants, Quieition adjustments further emphasizing the import¬ and other forage crops, -* of—$749^9,1 C2 $739,228,696 $7«f. 135,074 fixed- property plantings of grain marked increase in the was a L-ess: r; Free Trade ' . i i ( . tracks, terminal Height and passenger cars -BOH; and/(l kMZJtfjj&.ty 4»UU 'other iher Euiopean 1954 iM -r, Company bac investments in,/ land, truiiTona . * in 1957. orchard purposes Tii'f have been allotted for -plantings. and additional acreages Britain and -Or. December 31lifW ; '/Thursday,- April II-f 1957 . ADVERTISEMENT ADVERTISEMENT i . (1708) thought that "in the long run we are all Protection Pressures $311,570,822. $292,672,731 of dead." , r i , $268,345,019 government is likely to be subject to strong pres¬ in favor of safeguards. One of the spheres in which The laneous operations a • The -i- ,:•!/./■/ total rev- of enue of cost maintaining was sure rt,*v "ty. t" / 183,029,631 188.863,555 - < .. if « . t f * . '' 4. >•*> ? 3 i / ' t . k' 3 76,101,346 , -1 ■i ' ' f '* I. /• v>; t"" f >» ji. t ' »'v -.J OUR * the determination of what kinds of goods are to . by the scheme. All domestic products—apart from agri¬ cultural products as far as Britain is concerned—come under it. But if their production necessitates raw mate- ■ i/t.il-T;- e-y.f i ' rials * Leaving balance from railroad a Federal, ; ' operations of and state local required—— taxes /-'i „ $95,883,783 v, * —.36,891,614 ' ' ' •* $86,523,936 CORPORATE CREED $72,978,555 *'i i .vt'h *.>i Leaving balance of.! a The Company paid panies and for excess hire of use $49,630,322 of equipment' *' '' *'. in'*-*' facilities Joint ' $54,715,5^8 ' to other com- : $39,040,668 1 •v» v! . 6,285,563 : processed in-a member country and the processing mere¬ ly adds a small percentage to its value they will have excluded. ; u ,M : But what maximum percentage should be fixed? If it V, to be people and it$ is \*h / ' . . ; .•. ;. .* .?:•» 4 483,614 income from railway an / • operations of income vestments in and $45,691,368 — from derived // territory where the "Southern Serves : Stocks and bonds miscellaneous items was__ Making a Interest total on income funded equipment obligations, paid for leased of debt a $34,557,054 South"; To treat 6,340,419 $51,739,911 5,432,574 1 $54,770,454 $39,989,628 •. - •/ • • ! whose work of___' , 12,868,305 $38,871,606 ' * 16,777,205 «; $37,993,249 "t- 13^526^947.' $26,262,68^ the Continental fixed keeps the rail¬ fair return to the owners of ' property. markets want so the percentage fixed as low that their goods produced with the aid of hand, ; industries which imports high as number going; To pay a and possible, imported materials should not be excluded. On the other ....) fairly and kindly the men and women road ^! « as are . be on would possible. like the defensive7 against the percentage to The possibility of fixing different percentages for various of goods cannot be ruled out. to rents railroads net income the 1 6,048,543 as and miscellaneous deductions totaled Resulting in , $48,430,035 ih- Industries which hope to be able to penetrate into the Continental j ' Other would- reduce the,.scope;o£ the low if would mean that non- too reciprocity, v 1 Leaving it If it fixed participating countries would stand to benefit without u. quate railroad transportation in the I high too , To furbish safe/ economical and .ade- ; fixed schemes. tit ' v, . 3,938,954 sources-^ -V ;V opportunities; of the amount received by it from those . develop the territory and to foster faith in the South, its ! ' . J ' beyond which the finished product do not equalify for the benefits of the arrangement.-If the goods are merely ' *v To semi-products imported from non-participating or countries then it is necessary to fix the percentage limit , --v 33,937,887 41,168,187 is likely to manifest itself is in respect of benefit such pressure the property and pf pp^rating the railroad . $276,913,414 $249,079,701 $275,385,491 some In hard bargaining any be a classes of event there is bound between the participating governments on this point. Industries which are on the defensive are likely to mobilize all their influence to secure' some-form of pro¬ tection liable or to compensation for the disadvantages they are suffer through Britain's adherence to. the Volume 185.j Number 5628 The Commercial and Financial Chronicle .,. 2k (1709); scheme. There mands for by employers such and industries. ject bound to be de¬ are of employees in Common be lowest cost. produced The Babcock Wilcox & tal stock $35 a rights share ■? . ^ In. t))e v * » u. t. ^ to subseribe unless the unable to com¬ are one sale will be plants, indus- power The of the general funds of the «vau«uK; iui capital' expenditures. orders (EST) at ^group A of was end of 1956 totaled Net income for 1956 $14,080,981, equal to $2.63 of atomic, energy,;-.The com-. The' declared company close there down would be exnenditurc* " > ' ^^Edisbn Company of New York, in 1955// On. April 1, 1957,, .the} ^w y The company is one of the larg- .; 'lndJ; The company also produces est Suppliers in the United States insulating of ^ steam refractory materials. generating equipment for firebrick and; company paid dividend a of . ; - 7 7.v; in ;Ae* 1956. for-one ^ ^ -xn - -;, .77 v*:-. <•' To bolster up /inefficient firms against the natural effect (j scheme 7would -'..'defeat-5',the tiwvio argue an omelette object '<> that . V;7*I'lf' 7;; order to make?7: '; simply must break 7 7 1 in we '* & J ,.77 " • •« * * »• * %7; •- v :, : Public school behind-the-wheeb ' •' now ....... - ■ eggs: courses teach driving" dexterity 7 true, vague suggestions of setting up some compensation fund into, - which the firms benefiting by the ^Next time you scheme would have to pay a levy, the proceeds of which would New York, N.Y.- at growl 'Teen-ager!" and be allotted scheme. to But the victims the difficulties devising.-and operating scheme;., to even the such justice i: surmountable, < to appear a Think ;■ of7. degree 7 be in-?, 7 ■ •/. . 1 ling is another device reduction a the ditions prevailing in B r shown so doing these are education. driver student have of reductions in accidents and traffic or more driver involving the trained young compared to the non-trained driver in the , such 7 over would soon batch up with. depreciation of. sterling, and the "shot in the arm" of deprecia-tion would have to be repeated in too frequent intervals. In anycase, to the extent to which the same age group. Here, provably, is > i n,: a in magnificent job schools . con¬ i t days the our violations ex-7 value of sterling would help to bolster up the inefficient industries, and it would also in¬ crease the driving force of the ef¬ change ficient industries. But amidst of 50% suggested. of of many Studies ~ The adoption of a flexible ster¬ No doubt reckless a driver—think twice, won't you? of extent achieving somev.minimum of. rough the of ready that a project finding the acceptance we nation well see—in may our wages own the device would defeat would bring the Common the \^hat the is basic relief, object Market teen-age drivers it A pioneer in promoting skilled driver instruction programs far back Stack, ' of "laisser effects. of schools as Center Safety for University. York New the automobile blame accident rate," for Dr. Stack. says regulations, bad driving practices ' r-excessive speed and improper pass- ing—these . 770-80% of The fact that its application - will be spread our "Faulty driving behavior, violations ; - faire." So something will have to \ be done to mitigate the feffect of < the Common Market scheme, even 77 if it means a reduction of its de- in the '30's is Dr. Herbert J. Director, "Don't our ployment in the inefficient indus- beneficial as Education, for any British Government today to contemplate wholesale bankruptcy and wholesale unem¬ sired Spreading Scheme. ble name Fast Education Driver of be politically impossi¬ tries in the sacred education's in are t barriers if they are re¬ placed by barriers represented by a progressive depreciation of ster¬ ling? would schooled in safe as they as generation of traditional three "R's."1 customs It lifetime—an entire driving eliminating of use ,7. y-.+r the .basic are causes accidents.". our In the past 10 7 i;t of ;- years some six mil- - ' " and businesses of various kinds have Virginia, further Corporation at Buffalo, New York—- helped to boost the program. ^ A crusade? Driver education is fast a ^ood driver attitudes: In:; . have to be elaborated in the very ;ry-7,% f uture. near ;i) . , y . a sense 7' -7 • of social v'"- ►nsibuity. In responsibiUty. <6peci«LU)ThzFjnamoiai.CngorriciK) ' 7 ^ - ; BEVERLY James O. : HILLS, Calif. ' Chaffers, Jr. is now with, Pacific Coast Securities 9291 Wilshire - adult schools; 15 million - . , v more, year, 7 V*<• than a '; participated. At least '? more will be sotrained With Wilsoh,-" John»oh- ' (Special to The Financiae Chr^jxicip) SAN FRANCISCO, instruction and Calif.— Bernard Feshbach is with Wilson, Johnson & Higgins, 300 Mont¬ gomery Street. . • : \ * 4 ^ * dealers at almost (Special to The FiXANcriu. Chro.xt'x.eV BABBARA, Calif. Also, provided 9,253 cars (valued $21,000,000) for high school programs in 1955-56. seven states now financial aid to schools to \.j • > 7 • an important .suppHer of the steel* and iron used facturers. by automobile .7 ' Our * : manu¬ ' ' ij ^ t-'li.'l ..p£VH ' constant * Our 'constant goal—through re+y re♦: search and cooperation with the auto- 7' ;•;••• . vv: , .. v - - National's strength Knit' We at National Steel take and a profound and economy in the trucks of today and cars ;.s«l tomorrow. interest in the vital contributions of school driver instruction projects, be- ./ni of our contributions of the automobile to the heaJth ^ prosper;ty of our ^ and our SEVEN GREAT DIVISIONS 8pecial pride in the great nation. For WELDED INTO ONE COMPLETE -l: . National Steel, through three of its major divisionsGreat Lakes Steel at Detroit, Michi¬ gan, STEEL-MAKING STRUCTURE Great Steel Lake* Steel Corporation Company • • Weirton St ran-Steel < Corporation • . flanna Iron Ore Company • National Steel Product* Company • Corporation • The ILanua Furnace National Mine* Corporation Weirton Steel at Weirton, West provide help defray f education costs. Insurance rates are reduced' for the •— Andrew Dal Pozzo has been added/ ; to the staff of John M. Flynn and- 7 Company, 9 La Arcada Courts/ 7 - practice driving. New ! - John ML Flynn Adds SANTA car training . r 7^, -eli.%°.8C.0? ■participatmg provide both classroom 1®, i Furnace Ceaselessly striving to make driv- ^ • mobile industry—is to make better Ing ever easier, safer. 7 :■{ 7 7, ' and better steel for still greater safety^ rau8e e 'V'"- Hanna are f' million youngsters, and some 78,000 in public - Company, Boulevard.. ; wheel.' 7 *V"-J:"*. ~7Last . mobiles, the manufacturers of which ' concon¬ sideration for others when behind the Pacific Coast Sees: Adds .v andx The • is period, of between. 12 aridtW/ Hon teen-agers haye^ received official- ^^ becoinhig one! Where jt eouhts most,-..J, 17 years should T*iveJample time courses in instruction as part of their too—with the brand-new drivers of and* opportunity;.; to ' cushioning; 7 7 the shocki'hut much depends on- 7? % 7; - high' high' scnooi school education, education, parxicuiariy particularly :^ : ^ • today's superlatively engmeered engineered auto- " ,theinitialv formula which willinstruction in over 1' . s;\.r'3*>u ><*£. .%• ... the prospective "eggs"' cannot be expected to appreciate" the argument. There are, it is some j '» %7: of'the scheme.' Yet it is of nb?;Use7'v»v to r' . - iqgSio 'flie'TontinentV •„ KaIo^AW '■ . put sufficiently to take advantage 7 of'the new possibilities of expcfet-./.yr-y—. Ta 25 special/cents/ The .stock1 Was split tKr^e- no-- > available to eBaWe the/ efficient firm to expand their out- ai $T ergy power plant of Consolidated.with $1 per share and 5% in stock, e rMeivaM&- pete with their Continental rivals manpower a 19f°\ *he c°mpany has partici- share, compared with $13,486,717 pated. in the development ot the or $2.52 a share in'1955 ' >w. '•»>.> of oanital vab rece accountsi period.'1957-1958 April 22, 1957. firms investment the $427,228,000. Since compared 1955. Unfilled ^00*00r dXintf 1the"?tvvo-year [ erntion on 1956 PaW, is Presently acting as the pi.inae ;contractor for the atomi(. share in cash dividends and a *%' P°wer poition of the atomic en-!stock dividend in, 1956r compared aadaccounte l°"es the close at steels. for with $233,291,460 in largest producers of stainless and carbon reported sales of company $281,485 168 -"specialty" tubing made of alloy, .use, ^es ° at . 3.3^ scareity of manpower, fiyips >whiph the Wl" anticipated /0f business ton April 5, 1957; * The case of Britain in paramidst -; the -prevailing tidiifaiV 1 - of company and will be available for is co for 535il48 benefit could, be derived from the. shares held of record scheme. public utility trial power and process plants and for marine service. The company is « - added to the shares ol additional capital ..stock, at the rata df^ne ' share for each 10 Unless high-cost probe eliminated no real- dueers-can any issulng to the holders of its capi_ the at company shares. ■* participating countries, sdi that everything within;the'Free Trade Area should be produced wherecan the ' Proceeds Wilcox Stock Offering precisely the elimina¬ tion of inelffcient* industries in all it from unsubscribed Market schemd .is ever purchase Underwrite Babcock & Yet the basic ob¬ the headed by Morgan Stanley & Co. will underwrite the offering and Morgan Stanley Group "feather-bedding" both courses.. students .. passing Grants from, manufacturers CORPORATION NATIONAL STEEL GRANT BLTLDIN£ ,W ? PITTSBURGH, PA. ;..Yi.i)n*'»yj The Commercial and Financial Chronicle 22 . .. Thursday, April 11, 1957 . (1710) responsi¬ of the . real estate taxes, insurance premiums, and the upkeep of the plant in its that the tenant is means ble Practicality of Leasing Plants GEORGE W. WARNECKE* By President, George W. Warnecke Leading mortgage financier suggests for of use entirety. .'// & Co. leasing plan a plant construction and expansion as the answer to tight money's deterrence to industrial expansion. A leased new is free for company The subject of industrial plant "financing is of paramount import¬ in ance trial rapidly expanding indus¬ All of the planning, v detailed pro - areas. " V graming and blueprints ; o f the architects, engineers and greatest value; how¬ ever, they can¬ not be put in effect without the needed fi¬ F i nancing. - nancing of in¬ dustrial plant expansion, therefore, goes George W. Warnecke to the very Since J heart of the economy.. understand many also directly concerned with panding municipal services let add undoubtedly you have heard of the so-called tight money situation. At the very start I think should have we self-evident some restated. First, the total amount of money available today is the same as, arid even slighlly greater than, that " which was available in 1956. Second, money seeks the highest yield consistent with the upmost safety. What has happened is that the demand for money has increased, consequently the lender-investors selves have the such in the which that money be chosen in avenues is put to work. Quite naturally the will our¬ as opportunity to be selective more that avenues those are which hold the greatest safety consistent with the same as if it were owned; however, there are certain advantages. For one, the rental is a complete offset against earned income. Two, there are no long the highest money invested. yield the on usage to in reflected debts term sheet. ance bal¬ the equity the Three, that would have been in¬ in the plant is free cash be used in the operation of the itself, i; company is most The important. ... how Now having does one about go The inception of the planning and the initial architec¬ tural design are the same as if the plant were being built by the con¬ itself. cern that At financing requests them. This means stage which will be those that not presented your own the only fully meet the requirements of the investor as to but enjoy top grade loca¬ are attractive from every volume available. are the basis of these plans and on cost Gordon Tuttle With J. Barfh & Co. (Special to The Financial .Cii»ontct£) Tuttle B. J. has Barth become associated & 3323 Co., vestment which has increasingly found favor is in leasing plants to industry. Industry today has ac¬ cepted the fact that for a consid¬ section erable ally it is plants of industry gener¬ practical to lease own them outright. more than This, I know, is at variance with the thinking of old-style industrial management that on No score. longer is there a stigma attached that is renting its plants rather than owning them. to a company Industry there are to that a discovered has that number of advantages operation. First, represented by the cost type of an the money of the plant becomes free working capital which can be put to work in the activities of the concern it¬ self and times turned over many more total yearly earn¬ ing basis mueh beyond the 4V2 to a or sent year 6% if plant. it at a which were it would Wil- invested in of particularly attrac¬ tive. You may say perhaps that a good portion of that investment in the plant could be borrowed trust deed but there is a change in sheet of the *An the address Los when that by Mr. a A long Warnecke Chamber on done the balance corporation. Angeles is of before Commerce. v ■ for us On down the side some lenes. plates, pipe stainless of these leases conditions,, Forty Boston Inv. Club to Hear Eliot Janeway BOSTON, Mass.—Eliot Jane- President of Janeway Pub¬ lishing and Research Corp., will way, the be speaker meeting of the Boston Invest¬ time rather than-4 in-size. monthly the at being are Club ment *;•' Yacht increased W h buyer- prices have apparently resulted in a slacken¬ G. B. Tuttle : :.i •, u - • ,; ' - While only 12% \ ,.."V - o n at 5:15 p.m. r Jane¬ ..Mr. whose way; firm " '* - f,v" r a Tues., Apr. 16, - upward price move¬ that has prevailed in recent months. ered is 20 to 30 years higher the of ment to Rowe's Club, adequate supply generally materials and resistance to the be held at Boston of and steel. Commodity Prices vary usually the initial period cov¬ with renewal periods in steps of five years each for a total of 40 to 50 years as the tenant requires. The rental for the Nickel, steel structural and their stretched out in The : Alumi¬ are: In short supply are: that' programs reduced i extrusions, brass, copper, lumber, steel scrap and polyethy- there is little evidence reduction in plans and of the downward reports in¬ dicate / num J. ^ of • side are: Some steel up items, pig iron, titanium dioxide, cellophane, coal, oil and paints. be expected any most site publishes "Janewa Trend report over-all y's Analy- " sis"and"Janelower, this is a greaterway's .Appli¬ reporting reduced prices cations Serv¬ Eliot Janeway formerly in the trading depart¬ than at any time since May, 1954.1 plant is based on interest on the ment of Gross, Rogers & Co. Prior However, with ice," is widely the rise in steel money invested and the complete thereto he was anofficer of prices (due to the change in ex¬ known as a speaker and writer amortization of the cost of the Edgerton, Wykoff & Co. tras), large steel buyers, of course, on economic affairs with special plant over the initial term of the continue to report an upward emphasis on the role played by lease. Rental rates are either on Defense and the international movement.: Carroll Adds to Staff r a constant payment pattern or on situation in determining the (Special to The Financial Chronicle) f Over-all, however, there are a high-low basis. In this latter in¬ prices shire Boulevard. Mr.-Tuttle was are number . . . the rental Colo. — George J. high figure for the early Holz has been added to the staff of Carroll & years of the lease and at a lower Co., Denver Club rate thereafter. This is done be¬ Building. stance is fixed at a DENVER, fairly cause we ment at early firm can fairly rapiu rate in the a tentials'with of accuracy, the lease reasonable tn the later with the degree years rental of reduc¬ tions the industrial firm may be in competitive market and have good need for a lower (Special to The Financial Chronicle) is now Service Bank Building. Co., may overhead Interest Cost The yearly rent, of course, will vary up with the interest which is set to cover the use of the money involved. That interest runs First National to 6% depending the type of business, reputa¬ tion of the management, historical earnings record, overall credit standing and probably future of upon the tenant leases company. are on a All of these net, net basis which 1957, has arrived on 4 been added to the staff of McCormick & Company, 3761 Wilshire Boulevard. the New York for his stocks of on some hand, particularly not forts to where come increase inventories views "The Monitor" "Times." and Noted unorthodox somewhat economic unblushing and bullishness, Mr. Janeway's talk is entitled "1957's Buying Opportu¬ nity." as With protection against possible higher Joseph Mellen (Special to The Financial Chronicle) prices. Employment Joins Dean Witter Review," levels. reduce "Time" extensively for the "Har¬ Business vard Science sales volume up to expectations. (Special to The Financial Chronicle) Generally, however, there is little LOS ANGELES, Calif.—Rupert change from last month and there M. Adams and Victor G. Scheer are practically no instances of ef¬ have business editor of as magazine and a special writer for "Life" and "Fortune," he has also There is slight evidence Two With McCormick Inc. Christian to ■r Formerly associated with Time, i be effort any¬ where from 4V> for items. States Business trend. United especially alert to the need for maintaining proper inventory to has cost. com¬ written connected with Invest¬ ment the Purchasing executives! continue . DENVER, Colo.—John W. Brennan that Inventories more a ecutives With Investment Service when a indications clear petitive price situation, which had been predicted by purchasing ex¬ many the industrial project its earnings po¬ years can amortize the invest¬ the In the present tight money short as /v../.• the On general, but repre¬ market this is production cent reported that they now expect their company's expendi¬ tures will be greater than in 1956, 26% the same and 34% less. In subject terms Changes Items in short also much more lim¬ are ited. per ing The on MRO items is about can signed. We ready to begin construc¬ and, . Commodity months. many supply and still assure uninterrupted production sched¬ ules. Material availability is good, with the few. notable exceptions as tion of business LOS ANGELES, Calif.—Gordon with in and company's 1957 planned capital expenditures, in light of their present evalua-. to your own architect's continuing inspection, complete that construction and give you what is known as "A Key Coping With Tight Money purchases. Specific drawn and are now are tion and time Lead reappraisal rental is agreed upon, final a leases these on >; This month's special question asked purchasing executives for a acceptable site. Then an months. time. Where required we arrange for an option on remains high For that type of invest¬ opportunity I can assure you that funds in a very considerable/ that have been with ment plans. final has somewhat shortened lead time reality. as buyers stiffen their resistance to higher costs. Inven¬ Employment vye are in agreement our staff architects and engineers work out with a upward price spiral is being arrested, to credit or¬ an ganization, such as our own, is approached to determine if we would be prepared to cooperate with management in making such a plant available. Assuming that prices, are becoming The that-those plants, purchasing executives expect it to financed will be rise slightly during the next three angle. plant made available on a lease basis. and Although not much price activ¬ ping the supply. The consequence tory paring remains in evidence; is extreme competition for thev as slightly lower stocks of un- ity vis reported either Way this materials are investment dollar with lender-in¬ worked reported month, their is more downward activity than has been reported vestors unable to cover all of the again this month. Job." Now to apply this to our own particular problems in the indus¬ trial plant financing field. One of those acceptable avenues of in¬ dropped from 17% to 16%'. comprise the N.A.P.A. Business .; v •, Buying Policy . Survey Committee, whose Chair¬ money investment by the investor^ man is Chester F. Ogden, Manager. Buyers o£. production materials is not the only factor to i>e/eonr of Purchases, The Detroit Edison. show some evidence of/a will¬ sidered. • Company, Detroit, Mich." Both ingness to lengthen lead time Some 44% are now in production and new orders have slightly. Obviously, if the industrial firm varied little in these first three: the 60-day range, with a -cor¬ should go to long term lenders it responding drop from 30% in would lack the background and months, each having been pushed up or' down by .only * a few per- • February to 24% this month in knowledge of which of these pools in the 30-day of money would be interested and centage points from the position those; reporting range. Expectantly, many look on the best terms. Also, their; loan they held on Jan. 1. Purchasing , for a spring upturn in business, would represent but a one-shot executives, lit their April report, status quo look with more optimism toward - as contrasted to the consideration on the part of the situation that has prevailed since the spring quarter, as more favor¬ lender; whereas we * are continu¬ able weather stimulates industrial"; the first of the year. No change ally feeding the lender a volume of any significance is noted in of business. From all of this and home construction and other lead time on MRO outdoor work. purchases you can see that financing only Earlier predictions, that 1957 while better availability of cap¬ covers a part of the overall pic¬ ital items and ih-shop schedules will be a test year for inventories ture and you can judge for your¬ tion and Going About It a of truths its vested the like. 1%, to 18%t" Those employment ai down showing 1957, according to the composite opinion of purchasing agents who As a counterpart to an owned self as to the importance of hav-. plant we have the leased plant on ing the right landlord relationship.' a net, net basis where the concern This is a tight money market has lull control of the plant and with a demand for funds outstrip-! money me but where that exist it is of not decreasing importance. are following remarks will apply equally as well to mu¬ nicipal plant expansions such as court houses, welfare buildings, schools, city halls, fire houses, and All offsetting depreciation factor This, of course, is import¬ where there are allowable is lost. ant ex¬ the that the piant is not owned a quick write-ofts the members..;! Those month climbed . might also men¬ You up. where tion condition does f committee saying employment is better this , comes itself o banks commercial the "floating plateau" may best general business condi¬ tions during the first quarter of 4 a debt always established, is debt which A describe careful selection of the proposed landlord like to point out when the ques¬ tion of short term bank loans management are a operation. term V point let me suggest that At this net, net basis, on a leased opera¬ run from coast to coast. Mr. Warnecke explains, allows full control of the plant and its usages exactly as though it were owned by the firm; rental becomes a complete offset against earned income; long term debt is not reflected in the balance sheet; and firm's equity money that would have been invested plant 1957 first quarter a "floating plateau," is locked forward to by purchasing execu¬ tives in their April report. anywhere from $500,000 on up to $20,000,000. The area covered, as I stated previously, is tions activity, following Resurgent business / size of these The Purchasing Agents Optimistic payment the for reflected another (Special to The Financial Chronicle) month with practically no change MODESTO, Calif. — Linus W. in the employment situation. Since Long is now with Dean Witter & the first of the year, there has Co. He was previously with the been less than a 5% change either local office of Walston & Co., Inc. up or down in the reports from February CLEVELAND, R. Johnson is Joseph, Union bers Ohio now Mellen — Harrison connected with & Miller, Inc., Commerce Building, mem¬ of change. the Midwest Stock Ex¬ 1 V Volume 185| Number 5628 . The Commercial and Financial Chr&nicle (1711) 23 Annual Report for 1956 General Offices "/ Roanoke, Virginia • During 1956, business activity continued to expand and/ despite .- long strike in the steel industry and the impact of substantial , Norfolk and. Western set "i * f 3 sources 1955, the former peak— on Common Stock . all records, including— s record set in 1929— from $223 million in up : were $7.39 share, a more ;v.: VV:.. . our cost *V :S postwar improve¬ V. • the 70 was ""'I per amount spent for such improvements in any prior year. acquired 4,823 freight cars — more than any other rail¬ at a cost of $37.5 million, and 42 Diesel-electric locomotive units at a of $7.6 million. .' '■ 1 During the road than , r Capital expenditures in 1956 aggregated $62 million, which cent : 11 cents above the reflecting in important part the benefits derived from ment program.»■ '. ' " r $254 million, were Earnings : month- a increases, Volume of freight business handled, measured by revenue ton miles, rose 8 per cent over "1948, the previous record year— - : ~ Receipts from all K number of important new a wage year, we — t Beginning in December, the quarterly dividend rate on Common Stock was a share, thus placing it on an annual basis 90 cents, increased from 75 cents of $3.60 instead of $3.00. ..' Earnings share of Common Stock. Taxes per share of Common Stock.. .>. r. ..' Dividends paid per share: V' Adjustment Preferred Stock. per .. Common Stock. .'. . . . , . . .. ... Taxes (millions).'. V;. .v .;. Expenditures for Property and Equipment >-: acquisitions and improvements (millions) .^. Debt Outstanding (millions). V Times Fixed Interest Charges Earned : Number of Share Owners. .»i j. Bituminous Coal Tonnage (million tons) Other Tonnage (million tons).*•/. .'•>■. .•>/. ; Average Revenue per ton carried one mile (cents). Gross ton miles per freight train hour.. Miles of road operated... J.... ;\ . . . . - . . . . . . . .•. . ... . . ..... . .,. . 1955 1954 1953 $6.70 $4.52 $4.83 $5.05 $8.07 $7.88 $4.89 $6.59. $7.03 $1.00 $1.00 $1.00 $1.00 $3.75 $3.75 $3.50 $3.50 $45.4 $44.3 $27.5 $37.1 $62.0 $16.4 $35.8 $35.8 . . 27.97 • 7 r 18.7 16.2 0.980 '1.038 79,182 77,547 2,129 2,128 72,670 2,134 • Freight—Bituminous Coal. Other. . . .... . .... . , . .v . V. ........ .... ... ..... Total Rent ..... .. . . . ... .... 7.. ..... Other Income—Net .•v.".'" ,■'{. . . . . ,-s; .'7 Railway Operating Revenues Income—Equipment and Joint Facilities—Net. .... Totals . . . . . . . .. 7 . . ; .... * .• . v.. 7. . ........ ... . •• 1956 Vrvvi-.V;.; ;vv: v: .. Passenger ; Mail, Express and Miscellaneous.. . i , . . . . . . $28.8 $35.8 19.2 CONDENSED REVENUES AND OTHER INCOME: $32.4 1.006 ■ 20.25 29,500 45.5 , , 17.7 1.025 71,991 2,135 INCOME ' . 68,820 2,135 ■ Increase ■' :vv Per or Decrease Inc. Inc. Dec. Inc. Cent $27,778,089 1,778,467 167,796 1,383,048 22 15 239,662,971 11,947,152 2,602,980 208,891,163 11,999,718 2,221,037 Inc. 30,771,808 52,566 381,943 254,213,103 223,111,918 Inc. 31,101,185 Inc. Dec. 3 5 14 17 14 ' EXPENSES AND OTHER CHARGES: J . Transportation—Operations.. ;.•> Other Expenses. Total . . . 7. . . . ;... . . . ...;, ...... 7.. . ,/.1. . . . ..... . ... . . . . .... ... . . Railway Operating Expenses Taxes Other than Federal Income (See Note)... /. .'. Interest on Funded Debt.;. .....;...... 7................... . • Totals .:. .7 . . . . . .7 .% . ..... .... . EARNINGS BEFORE FEDERAL INCOME TAXES....::.....:.;... Federal Income Taxes (See Note) ". NET INCOME .... 7.. .7 .................... DIVIDENDS ON ADJUSTMENT PREFERRED STOCK.. SINKING AND OTHER .......... RESERVE FUNDS—APPROPRIATIONS.... BALANCE r 1 i Way and Structures—Repairs and Maintenance.:....... Equipment—Repairs and Maintenance. vv .'........ Inc. 31,347,510 49,379,984 70,430,515 13,759,693 25,272,080 41,778,644 60,309,071 11,359,891 164,917,702 16,001,876 1,431,668 182,351,246 153,981,307 Inc. L 24 Inc. 6,075,430 7,601,340 10,121,444 2,399,802 21 138,719,686 Inc. 26,198,016 19 13,829,953 Inc. 2,171,923 Inc. Inc. 1,431,668 18 17 16 : 18 28,369,939 " 71,861,857 69,130,611 Inc. 29,375,000 30,500,000 Dec. 2,731,246s 1,125,000 42,486,857 909,608 38,630,611 909,608 Inc. 3,856,246 10 *41,577,249 420,876 37,721,003 420,876 Inc. 3,856,246 10 41,156,373 37,300,127 Inc. 3,856,246 10 * *Equivalent to $7.39 NOTE: Total taxes per # 4 4 share of Common Stock, compared with $6.70 in 1955. of $45,377,000 were equivalent to $8.07 Common Stock, compared with $7.88 in 1955. . ,i STATEMENT ■" 1955 -V V> 46.5 18.2 $124,766,364 70,738,346 3,706,167 9,680,286 - V, 1.050 ■ • • $152,544,453 72,516,813 3,538,371 11,063,334 20.60 31,022 a .•* • $39.6 $35.8 40.1 , $1.00 $3.50 " $17.7 31,818.. 51.7 1952 - $35.8 19.24 V 32,372 58.0 . . :7 1956 31,312 . 'V.'V BRIEFS $7.39 l.' 30.68 . . N & W - " . .. i 7 per share of ■ \ ;; • : The Commercial and Financial Chronicle liquidity has lessened. barrier to a long- financial Continued from first page All represent-a sustained advance. (5) At best, the business trend The Stock Muket Ahead psychosis fear ket as itself as in as The years. prewar ed ket airline, paper or textile stocks. They've already had it! Secondly, an era where generaliza¬ tions can be misleading. The of things. about Thirdly, our new eco¬ - how has brought individual corrections which have nomic know ing ihis is most stocks in realities—depress¬ kept tune with their our —that of attraction based on resid¬ ual hand of companies stocks suspicion. / univac there There business. intuitive Wall in be Street, is one maxim that under valuation - area rather And that over-valuation than Thursday, April 11,057 . ket has a table. and facts (1) Our analytical sharpened • ■ (V the • Idle capital tends to con¬ itself, with result that there (2) sume is keener competition for idea ever than before. the but it will appear. means have outside asset side of -.-a;. •<<;, the-stock market's balance sheet, a ndmber considerations5. ....; can return a evaluation World after that War to earning There power to Similarly, (3) of common are repeating, have norriic for — we in "economic become hypochondriacs" if "eco- not psychopaths": ' , ' are > stock impact a latent resili¬ You know them—but*they worth finance corpo¬ that fact which ency. is and these sophisticated markets. trend the prevailed II. stability basic greater (a) Excess capacity is a normal in our economy; It's y condition the frightening yields is chiefly to the marinefficient producer. r upward does not mean a return to the levels which prevailed in ginal in his- ; earlier years. tory of carefully planned and ag¬ gressive research to develop new products which create new-mar¬ y' For one have kets. constructive impact on equity prices. Secondly, a new concept of common stock evalua¬ tion is slowly developing — and that concept places emphasis on the capital appreciation potential rather than immediate return, v z a (4) .This out or (b) This is the first thing, the market in bonds is likely ta continue—and this, in time, will bull drawn v (5) Above all, there are many"plusses" peculiar to the present era lower yardsticks of common stock rate mean ? gaining era Net result is that our tech¬ nological progress is at a faster than ever before. Scientific " , pace progress now is measured in terms of years rather than centuries. -- , (c) This also is the first era in ' history of scientific business man¬ agement. The professional man¬ need not be a long readjustment. Tax re¬ ager operates on a; long, rather s ,WHAT MAKES C H E S S I E'S started. the stock market the recession the last bull . . . Business 1951-52 but in rising. was contradictory observa¬ light the fact that bring to contradictions have been the key¬ dis-:/j 1957. of note is obvious. i'ears can The is individual Our complex industrial so¬ that many companies which the t not stimulant inevi¬ Note 1953-54 plateau a production interests On ThLC Passes y. (2) Fact that the trend of pricetime-earnings ratios is downward and ■ :'VL : > . a are direct cor¬ no activity. the had on These be may never 1937-38, is or ygasugfter a tions \ (4) ciety that - times world, at many. painful but not © industries new momentum. Contradictions, the Keynote (3) The second oldest profession quiescent was good a the apologies are There are supports, but few few, —and classical bear market, a business market past A'//■;; V : doesn't necessarily (3) There is ended have senses during are uneasy the started should them be a relation between the stock market "something" new prob¬ a number of con¬ ably stems from 30 years. ended 1929-32 la siderations: been trend were on other In * is two that mean words, they shattering. emphasize, level. duction may be front page news iri 1958—the road building boom which has been slow in getting plus make market. precise point. a business simple or one do not in the stoek (2) Fact that a bull mar¬ One always an seldom answer obvious. and represents market bull full-fledged new, rect for — is there that Beneath cussion is three-fold (1) The cor¬ prices are made as much by psychology as by statistics. But something new has been added to the analysts' ever • . stability. surface, the bias is downward—for really bright spots is no will nor the about an V security analysis is . - Perhaps the best that can said has started. Far from it! The case ofdefensive for caution today is quite persua-. be found:r sive. Rather, the point of this dis¬ TJnivac No At best, MM a • (6) All this not meant to infer that in industries whose outlook is un¬ der considerable declines—and, I relatively high much Grande. & Bio Denver pauses bull market. - namics in that operate (1) does . rather than positive And the proof is at via the recent advances in values, dynamics. Each of the previous post¬ for refreshment were completed without cataclysmic , war is the fuel required for a classical • new-found knowledge may have resulted in a new concept of Security analysis all, 1957. • building industry outlook is un¬ stimulants. satisfactory — but Flintkote is (7) In a word, the 1953-56 bull ran out of time and forecasting higher sales and earn¬ market ings in 1957. The aluminum stocks money. And it will take time and are paying the price of last year's money to bring about a new solid over-popularity—yet, Aluminium, base. A year was required to cor¬ Ltd. is flirting with its record rect both the 1953-54 and 1948-49 high. The^ case, for. the rails is business recessions. feeble—but there are positive dy¬ .'"J'-.M ' ' -k ' ■■ i "" •' they may be. as Above aluminum, of divi¬ times—and this all stocks—at be coming bear mar¬ holders the to much a It's ridiculous by the averages. to talk about a part in the scheme much smaller all suggest¬ firmer foundation than is at times * irrational, speculator plays a mercurial, short-term price level the composite not feed on aggre¬ The environment is not bullish on means whole need a that means gate corporate earnings and dends will not improve in spe¬ that a cifically, the process of individual issue self-correction tends to give regards the mar¬ approach fessional flat—which is More lows at the same time. Secondly, the more pro¬ in 1957. frn .. (1712) 24- FRB index of plateau—but a on industry deterioration The Administration inflation, but Wall Street's mine, too — are acti¬ the daily deflationary ulcers—and be sustaining influences when* their major lines are undergoing vated by evidence. test. V: ■<(' " Consequently, . examination ( of Proof that my ual value, is found on concept of resid¬ credits practical many for example, strength in the fronts; can • justify one addition to many outside of its freight Here Shop. Siif»erin- tendeiit J. G. Rayburn shows Mrs Irs. Lqutsch; ithe final stenciling*st-epv - '■'+ *7 In Railroad YMCA at Russell, Ky., Shareowner Price (right) purchases, C&O builds cars. ?. talks with tj employee-shareovvners, Freight Conductor Arnold M. Smith (left) i| Transportation Clerk Bert W. Harris; Mariy C&G mien and \tomen part I pafe^in efiifjlb^e'^Rfck pxmrime plarr. '; ' liability side of the stock market balance ing factors duction are declining—when 1957 In and v-;/-; The Liability Side On the copper stocks at a when consumption and pro¬ time < close a debits is imperative. be can How else, the come sheet, the follow¬ to mind: MM (1) Throughout these Fabulous earnings will be well below last Fifties, the common - stock idea year's record - breaking results? achieved greater, popularity, .and, The answer, as I see it, is quite Result iis, tliaF simple: Even on the basis of this respectability. price - times - earnings ratios rose year's possible earnings, most of, the leading copper; stocks had dis¬ along with earnings. Now, how¬ ever, the concept that everyone counted rthe industry recession and were selling on a basis where should own common stocks is be¬ their going concern values were ing tested and digested. Past gains are being consolidated. V. In the interesting. All that was required was a "spark" which would sup¬ process, some popularity^.'will be „ lost port the hope that the 300 copper level' could be maintained. - That spark came To take; how can - recently. another the TV stocks at a strength time when set saturated—and will first half earnings poor? Here, too, the an¬ relatively simple: The TV manufacturers "got religion"—cut back production at a time the1 stock common also, however, balaqce. will be with o£ those more, earlier in is set market held commercial some * reality 40-odd by black and white sets now in use. Individual Divergence In kets the. a . word, ; can mean sophisticated spread ture many; things—not to low assurance yields- is. ■ - will.mot: record, their new industries ! C&O in 1956, over 1,000 in the last ten years. SKO * At Newport News, Va., C&O's Atlantic port, Mr. Price inspij coal export pier, just completed. Almost half of overd export coal is handled here. He also, saw the new $8 million jj designed to unload 60 tons of import ore per minute. the new i '-t-K % -%wvSVw..y fu¬ another — (4) Confidence has deteriorated, industry as well as financial circles. And confidence helps in are stock many—a in the Free prices. The reasons lack /of 'leadership World, uneasiness least,'of which, .is the fact that garding the domestic all jsfocks over over. of sustained earnings growth make mar¬ new past incentive to accept low yields. and -million . rise gave those who remain in business. (2) At some point, color TV will be¬ i on Flint, Mich., looks For one thing, the cheap and vast credit which* of Secondly, ther»*!*ow is less wide¬ a located near gigantic auto body plant. 98 upward. share come to serve keeping era obsolete tracks years. steady withdrawal of mar¬ ginal producers- is increasing the of the Shareowner Loutsch, reflects (3) In line with the foregoing, the trend of common stock yields an The * via It clination to place an entire port¬ folio in common stocks. The issue when ultimate sales poten¬ tial in light of the facts that: (1) , years. was Furthermore, few businesses have bright recent rightful and larger share 'of the portfolio dollar. There is less in¬ high—and pre¬ viously burdensome set inven¬ tories have been largely corrected. as competition more the fact that bonds and preferred stocks are returning to- their is retail demand is equity money than at route. be swer -price-times-earhings ' • ;V There capital declining — inven¬ high — the market is are and any time In part, this re¬ flects industry's demands for new in in production is tories <2) for illustration, justify one -— ratios will decline. price At The . . : nation's In the Cleveland headquarters they At the end of their trip they talk over SeC Hie/new electronic: compuJEer v^f|^^^tb ^Ch^peake.^Cyw^ard Chain Cyrus Eaton (second, from left) and Presk| West Virginia^ re- business out¬ look, ;tbe Tact: that the Greenbrier, Chesapeake and Qjiio\^agnifice^,^eSprt'hotel in MrsrT?rice. (eehtt/) »■ which, among other things; makes ! joins her husband and Mj$. Ldutsch. '' 'out theirs and*90,000 other/quar-; * 'i.-r.ti,^ ] >terly{dividei^cbe^Jirli^ a day/.- "Walter Tuohy.^ . ': - : their ob -v.-—. - • % - /' Volume 185 Number 5628 .. The Commercial and Financial Chronicle - 25'" (1713) than short term, basis — and this »<-»! soften the business cycle. rri xt' ' may i Even more omy has than important, ^ past; history. prominence now Con- of the contribute to and occurred. Resi- J corrections over the of not past more around The of children, more: than suburban "ex- faces us/today, namely: outgrown the economy cycle On if as the April evidence answered "no." 20 brought about an en¬ tirely different consumer: buying attitude. Pension Plans, the be with We're base—and have said available business low be best which at ^underlying stability, .proportionately, spend most. .. y . f,, >>•.. ^ the v; i (f) The building industry is excellent illustration of an. the upturn. with . so still the the a stocks, as hit and run willingness to tide where . well as is the most ball move hand. But for there basis a situations—and this is on of year a private bull and private bear markets. It's a year when the question year. financing will iron and of the 'XThoritv "'ll ^ ™ ^ '°Lrf ^^ ^ \':r ^T.icc,c nr,coc ostrich. .'■> , I?1' i'J ' • *4 fc Community, enter-;.. is also empowered to.r I* and *. be of' consumption in the Community. ", scrap Py . to with given to the5; installatioris which" reduce ^ hand steel of attention' tuu, 1% rate.; aPPjjed but m-& ?-e JvPle « :an be^n + to high of P ^ , 'iS^J ® Taxable is of a series telling wheit Chesapeake and Ohio doing to make this a bigger, better railroad. * portion of the levy has been set a guaranty fund in order if necessary, interest and principal payments on the High European Goal & Steel Community Securities Offered Publicly The first States of securities of Coal Steel and Authority's obligations. The treaty As As 73 shareowners West Germany, Italy, Luxembourg and the Netherlands, was made on Tuesday (April 9) by a group of underwriters headed ■'• for ; see themselves r vp! invited to tour the 5,100 mile system and make a man tal v of in ' to aggregate'i; an $136,920,000, the loans granted, made were aver- , from Of the to¬ $129,060,000 funds borrowed' earned • -v its offering comprises (a) $25, Authority of $7,860,000 from interest bank deposits which on, interest earnings have also been loaned the . to agenient>ei^;; railroad'saffairs;recently •' report to Chessie's 90,000 share- 1975 000,000. • few highlights of their trips: enterprises , the High & Co. fifko.nnn to G&O 1956 by the High Authority. In addi-: tion, ; rthe High Authority has; The typical/Chesapeake and Ohio shareowners, link nowii of Kuhn, Loeb & Co., The First Boston Corp. and Lazard Freres ".St cept through letters expressing interest in "their" J-teCv.31; Dec.; 31, being about $1,470,000. by xeiy guar-; present age amount of the individual loans ' - of amount France, Chessie at Authority has. granted 93 loans a Belgium, among consists the equivalent of $100.000,000.:m the by fund anty Com- in 1951 established *, aside in to cover, public offering in the European are a coke, of production a formal Ilere modernization the " munity, owners. and signifiinecessary a is which to enthuse about individual United ^ coal, special key to success is not diversification aVTheedspringboard at J, ,r struction . V?c rtW--, Two ■* Rather^.it's a of choice is narrower, when the 0.45%. Hyue at., will be cast. This also may be time when flexibility and unor- problems are greater. But it's a **■« when the market as a whole will thodox policy will be most re¬ year when there are opportunities i take its next maior clue 'warding. For example, although for those who are flexible. Thevp jpu ,■!;<; 8 " us next major ciiie. , ,.ash. plaCe in every. !port- stock market is no different than The interest and principal, pay- > Trading Range May Hold folio, .this doesn't mean 'Iran for liffe itsef: It does not offer secu- ments of the enterprises on loans • Meanwhile, it's quite possible the hills/'1 'Rather^ it mdrely re- rity—but it does offer opportu-. made to them by the High Authat the first quarter trading range fleets the fact that the short term nity: "There is none so blind as. thority are fixed to cover the High, they that won't see "; ^ ' vi Authority's 'debt/ service on its own obligations. However, a large i R O IV? P _' _ facilities ' for important cant, new, over-all advance is not One / L R OA D .. a Spring Inventories are of . concentration, belated time of the proceeds from the securities; offered will be used to make loans' to such enterprises for the con- , ;.Vywhere generalities have to be a this bonds where game year- is ■« . a was the residential building. of residential In a word, April,. 1957, is is by the Fall; this is when the die Further, our income has been redistributed into the hands of those who at there ■» . "What do you think of the Mar- * ?T < C J ket?"-'may be on its way to be5%!? time, coming as passe as hoopskirts. This: six months of. 1953 for both a little Prudence .and is where that question belongsPatience. It's not a time to at¬ for people buy stocks not the mar- : tempt to be a hero—mor is :it wise ket. It's a year-when the field £ i/iP' J:' might preventing abuses which • could bity, have plagued us. In other words, pons distributed annually in Social/the adjustment is orderly. A more securityv the new concept of.guar*v definite answer will be . anteed annual wage increases, all mean greater than ■* . This has become first to < nities in Plywood orders, for example, .are increasing despite the slower pace .... xi in pick-up "yes" or for a new is that the current lull -» great many lines—cop¬ per, aluminum, steel, rayon. And a number of .^businesses seasonally flat a groping the Secondly, possibility of a in can't pattern anticipated end. the trader temporarily has a .greater advantage than the long-term buyer—that tnere are opportu- * thing, one widespread to have suc- encourage widely knoWn? the question to different business formerly was 1957, Has 11_ • For more liquidation. We seem cessfully completed the psychological readjustment potent force. a a. months. positive evidence really rapid, over-all deteriora¬ tion This reassuring recitation points up the" $64,000 Question which the apple cart. In the the economy was So changes • summer it will take marrying are before. plosion" is still our need People having in the averages will hold into the t_ i.J *i undoubtedly moving ever much smaller, individual industry readjustments had an exaggerated impact on the over-all trend. (e>): The vast social and eco¬ years has *-«4- ....«^-,^5 w ^ construction younger, economic health, that in¬ when nomic 4-««-* 1 cataclysmic. industries topple v» *-» dential wider and broader base our econ¬ aluminum, drug, natural. gas or plastic businesses with their minor importance 10 years ago. So many dividual that *-1 before in trast/today's over-all change will decline further this year. But the drop probably will not be a ever .*•*** . ^serial secured notes due April lj 4'-' .1960-1962, inclusive. \: ;; The bonds and priced 100% and accrued interest, ; at The ~ notes 000 U. are , High Authority has agreed cured subscription v in will redeemable be The at the ser 1979; the equiv-> $12,000,000 of \ ments bonds the/ 4 the 37/8 % on notes due bonds, at par, in 13 substantially equal annual install¬ 4-datory redemption payment. from through Export-Import Bank alent of about - 1954 in S." Government to redeem the beginning in 1963. The ""Authority also has the right, at its option, to redeem annually begin¬ ning in 1963, an additional prin¬ cipal amount of the bonds not exceeding the amount of the mari< These comprise $100,000, borrowed secured July, notes 1956, rowed offered $17,000,000 secured on public'!, for Switzerland and in * bor¬ notes from banks in Belgium, Germany, Luxembourg and the Saar. All of theHigh Authority's * borrowings are made ^pursuant secured by and to Act an ; , equally of Pledge en-;4/ election of the High Authority oil tered into by the High Authority '/' April 1, 1967 at prices with the Bank for:International 4 ranging from 104% to 100%.-* Settlements in Basic, Switzerland, By the Treaty of 1951 the six-which holds, as depositary, the .,' and v / after countries member Community coaT"and Lithe ceded sovereign steel to the powers of areas in Mrs. Genevieve ...and owner Loutsch,a Chicago office manager o£ 50 shares, hears about-electronic railrfMiding from John Grand Rapids. She confident *»« my agent and of Chapters, Trainmaster at says: "As investment is of -fel(*e$e'forwa*d-k)okmg the C. Grattan a shareowner, I secure owner I have manage Chesapeake and Ohio Railway"*, convinced that insurance ing in through freight train with Engineer Ott has been an brightest years the are industrial economies the The A 24 page went holders saw two has been mailed along with the onnuol report for II y°y would likea copy *>f shareholders to all shore- 1956 —again both, write coal — major is coal and one and of steel producing areas. In 1956 enter¬ prises in the Community produced steel pictorial report of where these and what they basic to all modern Community world's 57,000,000 ' member countries creation of a com¬ ties which steel. lie ahead". the market for the two commodi¬ mon seen a 'Chessie's' v of metric and coal, - of about of Within there are customs no the me TE*#WAt-T0WE*. CUYEUftO !, OHtfr frontiers, Detroit summer 11, It will >the will outing the at Outing The hold of the nancial industry, of town guests. along crease.production. and in- The major part out 1 i Joins Walston & Co. (Special to The Financial Chronicxk) '•LONG L. BEACH, has Brown & Street. He Calif. —Stuart joined the staff of Co.,, Inc., 210 East was 1st Hogle & Co. and Morgan & Co.. ' Raymond Hornby Opens (Special to The Financial Chkonicle) SAN • formerly with J. A. RAFAEL, ' : ' " 4 Cal.—Raymond curities productivity fi-* and with coal and steel improve Lake by close to 200 banking Hornby, Jr., is engaging in to an-:, Tuesday,... on Community, the financing of capital investment programs of .enterprises designed v? Bond its Orchard be attended members Walston or railroad fron¬ tiers for coal, coke, iron, ore, scrap or steel. — / Country Club .in suburban Detroit. any cur¬ The High Authority is also responsible for facilitating, within : Mich. Com¬ longer rency frontiers Railway nual of June crude' one-half States. market common national Club metric tons production of these a 'hat of the United munity DETROIT, 249,000,000 or commodities Hhe of tons to: and Ohio Summer provement of the standard of liv¬ an magnificent property, superb¬ ly maintained, and efficiently operated. I am absolutely eye-opener. Detroit Bond Club Lv expansion of the economy, the in4 crease of employment and the im¬ of 1(X) shares, rides in locomotive cab fast merchandise Foster. Shareowner Price writes: "Mv trip am in the hands specialists who Price, Jr. of Harrisonburg, Va., . their ^economies. The purpose of the / Community is to contribute to the . loans made by the High Authority /V .V., to the enterprises., business; front 975 Grand Avenue. He merly with Hooker & a se-, officfes; at was Fay. for... ** The Commercial md Financial Chronicle (1714) 26 Beach facility is is News About Banks open ond week NEW BRANCHES NEW OFFICERS, Mar. 31, deposits V. due and banks. from S. Govt, Undiv. 462,379,450 417,719,257 1,447,130,909 1,482,564,788 31,025,851 33,497,510 discts. & profits— ♦ * Mar. Dec. 31, '57 31, '56 due Bank capital stock of Bank' and common se¬ Union with served He Bank Planters of Co. Trust & Trust Peoples been of Company profits- ing F bonds savings G and securities ernment does office Street the of tional Cashier. '/••••'•* sVv ''VV' not bonds.. forecast to seem Also, competition the getting' from are corporate and that gov¬ tax-exempt expansion in the market for an will more a attractive yield basis issues move up in price. A refunding again be confronting the Treasury, with the - soon May 15 1 % % the next one to be taken care of. A short-term obli¬ gation will most likely be used again this time. > • ' . Market Awaits Terms of "F" and "G" in; Announcement \ non-government operation it Refunding Issue .The government bond market continues to mark time because , 1929 he In oV'-V'V,' ■*' Treasury market is not active, very thin and still in a narrow trading range, because it is waiting tor news on bond which will eventually be offered to owners of the matur¬ . Essex and Hackensack. V The long-term Bergen County, Hackensack, N; J, with duties as Manager of the joined the First Na¬ Frank's appointment was City Bank as an Assistant von He was appointed a made by Cesar J; Bertheau, Presi¬ * * dent of Peoples Trust Company. Vice-President in 1945. BANKERS TRUST COMPANY^ NEW YORK Mr. von Frank takes charge of # & * Mar. 31,'57 Dec. 31. *56 the local otfice in place of Cyril Four I division heads of The J. Total resources. 2,687,729,689 2,820,864,484 Mason, who retired recently Bank of New York have been ap¬ Deposits 2,363,906,001 2,484,079,904 after 45 years of service witn the (pnch atiH flnp pointed to the newly established institution. ■ from banks— 641,959,999 805,071,721 rank of Executive Vice-President, Prior to joining Peoples Trust U. S. Govt, se¬ it- was announced bv Albert C. curity holdgs. 460,315,450 421,619,195 this year, Mr. von Frank served Simmonds, Jr., President. Loans & discts. 1,462,394,216 1,469,234,944 as Assistant Secretary in the 510 Undiv. profits Charles M. Bliss, head 55,220,545 52,519,334 of the Fifth Avenue office of the Manu¬ * * * i Trust Department for the past facturers Trust Company of New THE HANOVER BANK, NEW YORK eight years, was appointed a Vicediscts. & Undiv. 688,044,650 580,522,949 1,526,533,434 1,573,333,375 107,269,602 90,015,193 holdgs. curity Loans tions. or has Frank von , named Assistant Vice-President of the Main 1925 to 1929. Memphis from H. James ; " ' Very be to plentiful for the purchase of There is, nonetheless, a sizable Treasury bonds until they are put on -it 4 ifi continues market as edly the principal buyers of the most liquid government obliga¬ ' value $25.) par Memphis. of Co. Trust & National 592,861,934 668,973,388 banks— Govt, S. 3,054,658,959 2,484,511,333 2,542,690,186 — and from U. The of New York, died on :1 $ 2,935,550,025 resources- Cash George J. April 5 at the age of 59. Mr. Matson began his banking career in 1920 with Guaranty OF COMPANY YORK NEW Deposits j . Bossert, government though money is not even demand around for them, especially Treasury bills. Corporations, private pension funds and certain deposit institutions are report-" Gansel, Harold D. Hammar, Jos¬ The First National Trust Company of Paulsboro, N. J. eph J. O'Brien, and John A. Pell. ifi ifi ifi ///v..'/? was increased from $150,000 to' Robert Hayden Matson, Vice- $250,000 by a stock dividend el-* President of The First National fective March 27., (10,000 shares, City Bank * TRUST GUARANTY Total C. Albert active these securities.as,it was recently. , se¬ holdgs. curity loans 748,721,867 790,789,422 . (2,750 shares, par value $100.) 1953. * * ' ' /YV, ://' Vice-Presidents ;Y■:U-h 'V * in Assistant New are 29. short-term' The > \ capital stock from $50,000 to $200,000 by a stock dividend and from $200,000 to $275,000 by the sale of new stock, effective March Assistant to promoted Vice-President $ 3,013,186,784 3,069,835,285 2,693,727,839 2,759,771,057 Total resources- and. ier Dec. 31. *56 '57 $ Cash OF BANK YORK of Bank Netcong, N. J. increased its com¬ mon EXCHANGE NEW National Citizens The Bankers and ' ; CORN By JOHN T. CHIPPENDALE, JR. ■ ETC. Governments * * " * CAPITALIZATIONS CHEMICAL Our Reporter on about the first or sec¬ in May.- CONSOLIDATIONS REVISED that the office anticipated will State sixth the Thursday, April 11, 1957 . . Suffolk County. Bank office in It . is waiting for the terms of .the security which.it expect<f\vill to tne holders of the F and G savings bonds that are be offered The belief that maturing in 1957. long-term marketable govern¬ a ment bond will be made available to holders of the aforementioned " Mar. 31, Dec. 31, '56 '57 $ Total 1,611,063,452 1,653,975,284 Deposits Cash due and 475,482,817 516,514,858 holdgs. 316,032,106 315,625,158 discts. 904,109,926 911,313,367 profits— 23,117,434 -22,617,196 banks— from "W. Govt, S. curity & Loans Undiv. 1,859,364,034 1,818,215,534 resources- $ Dec. 31, '56 $ 100,440,301 102,595,509 91,421,431 93,585,040 16,039,977 17,134,059 Mar. Total '' ••'. ■'{*••' . resources— Deposits - and Cash 31, '57 — Loans discounts- <fc Undivided 27,615,532 27,625,016 44,269,456 46,511,687 802,445 874,813 profits— "■ ■ - it * yYY/. # ■ COLONIAL TRUST COMPANY, NEW YORK Total and due U. S. Govt, Undivided ment 16,472,206 32,611,552 335,629 636,868 « National in be New of Bank appoint¬ today Sieniawski Michael Representative Mr. Sao in as Brazii Trust and will previously was the of Irving in charge of Company in Latin op¬ America, Spain was previously the and Vice-President inl 1945. a Roderick Bank of the Man¬ head Department, 1930 & # of and for Chase Bank, New York, Vice-Presi¬ of * . Bank for New George Cham¬ Presidents, Mr. Broadus and Mr. Hulsey are in the petroleum de¬ partment and Mr. Pollock is in the personnel administration division. Broadus, 1934, who was joined the appointed an Assistant Cashier in 1946 and pro¬ moted to Assistant Vice-President in ing as 2949, was Cashier Hulsey came to the petroleum engineer in appointed an Assistant a in Assistant 1951 and advanced Vice-President in to 1954. Mr. Pollock has 30 years' service. He was appointed to the official in 1951 Assistant Digitized staff for FRASER as Seamen's and years 78th ago pioneered of pounded Mr. an Cash¬ in the City the Jay ifi :& of of open¬ Today, with it serves depositors. Interest of deposit, com¬ times 3% a a The year. in addition cents paid last year. SOCIETY Shore, Bank N. > t ifi if Y. the Reopening of 3V4s of 1983 Rumored . There opinions around that are yield of less than 3V2%, but a Treasury could set the price at a level which would give the it The reopening of and due 19,756,826 18,520,307 82,692.837 90,821,362 discounts- & an opinion is that not favorable yield which they can more a obtain at this government securities. 185,540,797 185,557,268 in Excess of 3 V2 % Seen Necessary Rate is true, considerably in ' and there is evidence to that effect, then the The corporate and tax-exempt market give yields so much of 3Vz%. excess bonds which are now available in the S. Govt, security holdings Loans of savings bonds appear to be too much inter¬ Treasury is not going to be able to make an exchange offer which will be attractive to them unless they put out a bond with a coupon 327,381.784 329,029,086 from banks U. the If this 293,855,836 297,360,150 and in for this kind reason OF $ resources Cash The cash. off in few holders of these - |i Deposits if, with, those that did not make the exchange being paid leave Dec. 31, *56 "57 the 3J/4S, according to other money market on a somewhat les? than a "best efforts" basis, of the maturing F and G bonds could take it or the owners ested CITY THE with the other more distant ? ; ; ' followers, might be time outside of IN a; a large one and another half dollars added to it would not make a out. of proportion sizable and too CLEVELAND, OHIO Total billion and maturities of governments." r T VVVVVV there/might even be a new reopening; of the 3V4S due 1978/83. as the way in, could be taken care of; Present or a quotations for the 2xk% bond show and the better, :;f;y way and. the sooner attitude of the financial district. settled and out of the be to ... it I OR SAVINGS ifi the sale of capital common in bonds, that owners of the F and G savings of government excess bonds in instances continue to swop the Treasuries for thei many * new stock, the of The stock stacle ington, W. Va. was $400,000 $500,000, to March 27. This appears to be the one big ob¬ successful offer by the Treasury to the Charleston, County, charter ifi meet Convertible 12-Month Issue Suggested par * ifi 'for the Va., March Indo- * was issued a 26. The Presi¬ ier Paul N. Downs. a of of has received surplus $ NATIONAL THE OF Deposits Cash ana from U. S. ment 1,752,136,620 1,854,252,502 438,779,828 417,375,487 Govern¬ security and Ronald L. Voss, Cumberland of 611,035,747 638,873,563 719,678,251 722,285,918 17,733.061 16,134,476 dis¬ profits the _ ifi common LAKEWOOD, Colo. Corpo¬ capital stock of the ville, Tenn. to was Investors, increased from engage Officers $750,000 by a dividend effective March 29. J. 000 shares, par value $25.) " stock (30,* in G. E. T. — been formed 1950 Taft Drive to securities a are has George business. E. Tollefson, organizers in 1931, with T. H. Jr., President; G. E. Tollefson, and Carry Payne, of Vice-President; and Clvde E. Rich¬ Mitchell mond, Jr., Secretary-Treasurer. Cumberland Securities. Voss, a one donation the of his eyes was of Mr. used in With Field & Co. corneal transplant for a woman (Special to The Financial /who had been blind for 26 years. The other Island, Long Island, accord¬ ing to an announcement by Albert Inc. with offices at * Broadway National Bank of Nash¬ $500,000 Securities ration, Nashville, Tennessee, died at the age of 58 following a heart attack. An authority in the field of municipal bonds, he was one of Through The G. E. T, Investors (Special to The Financial Chronicle) Vice-President due banks— proval from the Superintendent of The Ocean J Ronald L. Voss Dec. 31. '56 2,008,624.029 holdings Loans '57 1,944,640.693 Banks of New York State to open a Summer office at Ocean Beach, Gowan, President. off F and G's and the l%s of May 15 as they mature.. of this idea believe such an issue would have, a on both the short- and long-term government DETROIT, Bay Fire a MICHIGAN resources- counts ap¬ that followers market. ifi BANK suggestions favorable influence $210,000. * Suffolk, a The also are used to pay The bank has capital of $350,000 and Undiv. * of Kanawha dent is D. C. Shonk and the Cash¬ Total new Bank Charleston, l-.* convertible obligation be used by the Treasury in taking care of the maturing F and G bonds. It is reported that this idea embodies the offering of a oneyear certificate, with the privilege of conversion into a 20 year3%% or 3Vi% bond during the life of the 12-months obligations/ It was pointed out that if such an offer were to be made, for cash, in the amount of $5 billion to $6 billipn, the proceeds would be There * National W. on a holders. That is, unless the government wants to this competition and indications are that this will not be done. effective shares, (10,000 City path of increased from value $50.) The the in savings bond Guaranty National Bank of Hunt¬ * Finance, is in charge. State Jet's get it seems adjusting dividend an of 10 cents a share, both payable April 25, to stockholders, of rec¬ ord April 15. / V.Y The adjusting dividend repre¬ sents a pro rata apportionment to May 1, 1957, of the extra dividend Assistant Republic, opened an of¬ fice at 67 Wall Street, New York. Sui Kien Thanh, a former em¬ ployee of the Viet Nam Ministry * share a by the probably to coincide with the refunding announcement. It will be a good thing for the money market when the Treasury makes the offer so it can adjust to the new conditions. In other words, quarterly regular a of 65 will be made offer 4 Chinese of anticipated a declared - of the F and G savings bonds seems to 3.50%'. The 1978/83 bond is not Mar. 31, bank Trust 'treasury down to about the early part of next month, billion to year. Pease, The National Bank of Viet Nam, central narrowed ret,urn of office. if have been the owners Company of Philadelphia on April Vice-President, is Manager of the new :.Y;Y * . Provident ifi State. H. Treasury to the and $485,000,000, four when which the F and G savings bonds Directors by imminent. was time The by James M. Avenue. announcement< a non-government obligations. thirty-eight The Bank for Savings the savings bank idea 200,000 with 3V4% bond By Street. hundred nouncement a Germantown * April 8 of a new at Lexington Ave¬ office week's this on bond maturity probably longer than 12 years will be offered to them sometime next month. The Treasury definitely stated that there would be no offer made this month to holders of these bonds, thus putting to rest rumors that an an¬ President. ifi announces Monday, Ohe Mr. 1951. bank the * Savings York, branch Manhattan pion, President, announced on April 8. Formerly Assistant Vice- in Montreal, based The bank, re¬ places Tradesmen's office at 5614 Large, Savings. latest dividend Mr. S. Win- Pa., is that officials April 8, it on announced Mar. 31, of Bank trustee a Bank the * appointed has been Trust. and branch office at 150 Chelten Avenue W. • _ Bank a new 1942. Co., Inc., New York, has been Mr. Wingate is a di¬ rector have bank been in of Henry is paid from day the has announced. over of joined director of J. P. Morgan a Joseph C. Broadus, Bob T. H. Hulsey, and Robert J. Pollock been the of * Philadelphia, if * election gate as and Vice-President a t|: assets * in bank in New York hattan Company. dents ap¬ was McRae, Investment associated, with the Chemical Corn Exchange Bank De¬ pointed nue Portugal. He Credit and 1920, Alfred S. Mills, President of The Sieniawski erations - The main office Paulo. Vice-President a bank's the in The with offices in Sao Paulo and Rio de Janeiro. in career partment * announced of Banking became 18,429,509 33,733,780 opened dividend head of the Department, began his the profits.;. Special ' v H. O. Eversmann, continuously engaged in economic studies and securities analysis. He * York, '?• . 45th to 18,419,910 - the Grace ' 44th at 66,110,185 security — Avenue 17,912,354 Ralph S. Stillman, President of % Fifth 68,016,925 from Tradesmen's Company, quarters in the almost completed Bank of New York Building on V in The $72,486,799 discounts- & ac¬ His $74,569,191 —- holdings Loans Vice- area. Sept. 26,*56 Deposits banks is midtown the in Mar. 14, '57 resources- Cash Elliman M. President in charge of branch security Govt, holdings ; Counsel Department. Streets. from due banks U. S. ously in charge of the Investment tivities York. previ¬ was Office, which will soon return to its historic corner with enlarged TRUST AND NEW YORK ' ; he office is at the Fifth Avenue Bank * * BANK COMPANY, A specialist in 1942. work, Donald FEDERATION •/, investment se- .-Y'Y * Y'/. President in securities York Bank to be for* flown to New used through the Eye eye was Restoration * for another similar operation." Sight n - Chronicle) PORTLAND, Oregon—Kathleen M. Evans Field ing. & has joined the staff of Co., Inc. Cascade Build-; | Volume 185 Number 5C28 ; The Commercial and Financial Chronicle ... (1715) George M. L. LaBranche Jr., La& Wood; John R. Mc¬ NYSE Board of Govs. Nominees Announced James Crane Kellogg, renominated to serve 3rd, was second a one-year term as Chairman of the Board Governors of York Exchange. is of the New the He At senior partner Leeds * & ' - nated ; 3- was J. from Los Angeles. They are: Earle & of York; Tucker, & E. year. Co. of man¬ & Co., and 4%% due Roebuck subordinated May 1977 of Acceptance Corp. debentures" were priced R. Roebuck 4.70% which The debentures , J - S* - as H. and Co. similar Sears under to has from sold that' redeemed are at the may option of be credit sales totaled Co. 31, 1957. operates plants, 717 retail Sears mail territories and possessions. New S. F. Exch. Member SAN ald Sears,v E. FRANCISCO, Calif.—Ron¬ Kaehler, President, an¬ nounced the election of Samuel L. Shapiro to membership in the San Francisco Division1 of receivables* Coast Stock Exchanged Mr. \ Shapiro is in the-firm ' from $1,039,128,814 11 stores and throughout the United States, its under mentreceivables, "arising the Jan. & than 750 catalog sales offices more not date,*1 they ended order arrange¬ those sales were $3.5 billion during the fiscal year' Roebuck purchase customer in¬ receivables redeem¬ to banks since 1937. On Jan. 31, prior to May 1; 1967. On and *1957-, ^Sears'^outstanding- install- after .•) Co., both from W. Frost of & stallment ments to maturity. November Proceeds from the offering will be used to at & j Co., a Pacific general partner of Samuel L. with offices in Shapiro Bayonne, N. J. •r *!' jCM . . Horrace Anthony • 1, 99% and accrued interest to yield able * > last wholly-owned' subsidiary of Sears, Roebuck and Co., the world's largest general retail merchandising organization. In March, 1957, Sears increased its equity investment in the Accept¬ ance Corp. from $35,000,000 to $50,000,000.v - • .V a Inc. 8,857,764 accounts. Total Sears, Roebuck and Co. over of Fenner Hutton E. W.* English Hutton W. were Fred¬ Joseph R. Mayer ensuing Sachs & organized Corp. HI William and New C. Kellogg, Lynch, Pierce, Beane elected President^ Sears appointed Assistant Treasurer for the one Boston Merrill 000,000 The Officers Page, tary-Treasurer. City, one Stock one U. syndicate Goldman, Stuart debentures year. was Lehman Brothers yesterday (April 10) placed on the market $25,- the -Christopher Hengeveld, Jr., Secre¬ two from New and American of erick J- Roth, Vice-President and j r s for of meeting by Halsey, David U. Page and James R. Dyer were elected directors to serve for David terms, year annual nation-wide aged Officers Exchange Realty Associates, Inc., nomi-f 'were the new Go.verno ; York -from Realty Assoc. stockholders in Kel- logg. / 1 Four x A. S. E. A in of Sears Roebuck Acceptance 4%% Debentures - at their face amount and accrued interest. Roebuck Acceptance Stafford & Co. Elected the. specialist firm of Spear, - Laughlin, Neuberger & Berman; Joseph. G. Osborne, Hayden, Stone & Co.; and William F. Stafford, Stock company Bankers Offer Sears Branche L. i? ■ i ■i*^. f. Day of Boston; and Lloyd C. Young of Lester, Ryons & Co. of Los Angeles. : >V Mr. been Kellogg, 41 since 1950. He named was Chairman in 1954 and Chairman in 1956. in career as ing needs has the elected was brokerage ihis business' floor and was admitt°d Fxchange membership Stock July, 1936, when he IN the trad¬ on 21 was soar Vice- He started telephone clerk a old, years Governor of the Exchange a :> FAST- GROWING to in years old. Mr. Kellogg is Commissioner a of The Port of New York A lit* El Paso sets or- new records in ity and Vice-Chair^an of the Au¬ thority's is Finaneo director of a Savings Sr. Co"r>rmt+r,°. the Citv and In Kellogg & Sons, President of the C. J. Kellogg Foundation hnn or¬ ganisation devoted to medical re¬ search), mount Pav and Co. director a Fe is Head fN. J.) and of Chanel now and its Kellogg lbres with hie wife James Crane.. Pe+er ,hou^e. Pfchard Irwin F*He^- and The Committee, hr>3ripd hv H. Van Brunt Moreover of GooJbodv & nated one at Nominating five Co.; also Governors terms: Jacob of was all-time high. New businesses and in¬ and of Abraham Sr Co. (vo~k City); levels -J This brought soaring demands for three- Plmb+r^u record million persons. Per capita income an — y**ar Paso foreshadowed ments in the future. far greater energy require¬ pJoch (New Vork Citv): Robert p. Povat York Wagner, Stott ft Co;./New Citv); Romoe G. Iriga11« of In?alls fr cnvd«r '(*w York In 1956, El Paso Natural Gas set new More records in able it to burgh). future. mem herein of the Gratuity death change John K. & be to the members were trustees Fund,, which benefits deceased to John Rutherfurd & the Futherfurd Co. and placed in service approxian additional system ^capacity of 450 million cubic feet of John bases Delafield; Phillip W. Brown, Smith, Barney & Co.: Edwin H. Crandell. Blair S. Williams & Co.; George R. Kantzter, E. F. Hutton & Co.; John J. Phelan. Nash & Co.; Emil Co.- Fdwin Co.- J. Roth, E. J. Roth & H. and Stern, F. F ctern George H. Walker, addition includes: to Mr. McKeeyer, Nominating Committee Austin Brown of per . ... ... Shares Outstanding. day, authorized by the Federal Power Commis- . . 1956 1955 $221,515,546 $179,451,092 $ 26,736,242* $ 19,031,211* $ $ . Stock Earnings per 4,039,940 $ 22,696,302 3,858,271 $ 15,172,940 . 10,770,170 9,935,720** Common Stock Share " .$ 2.11 $ 1.53** •After provision for possible rate refund. * •fA Contracted to * deliver an additional 435 million cubic feet of natural gas per day ; to Western customers. Upon completion of "Giving effect to two-for-one stock split of December, 1956. For copies of El ^expansion programs required under these The Western market served Paso's 1956 Annual Report to Stockholders, write El Paso Natural Gas Company, El Paso, Texas by El Paso Natural Gas Company and its subsidiaries includes California, W$st Texas, Arizona, Idaho, Nevada, New Mexico. Oregon, Utah and Washington. Dean Co.; James F. Burns Jr., Upham & Co.; Harry C. Clifford, Kidder, Peabody & Co.; Benjamin Einhorn, Astor & Ross; established in petrochemical Number of Common Stock Witter & Harris. participation Operating Revenues. Walker & Co. 1957 for HIGH LIGHTS' sion in late 1955. Edward F. Becker. McDonnell & Arthur C. Briggs. Delaficld In Consolidated its position in oil production, refining and marketing, and en¬ growing market in the ^mately two-thirds of to the proven — of natural gas that economically delivered to markets Balance for Common of Co.: sources by the entire system. • J Constructed and acquisition production. Ex¬ The 1957 No*r>i"ating Commit¬ tee also proposed the following to on the 1958 Committee: the be served Preferred Dividends starkweather of Starkweather G. H. can Net Income pays families of of Pipeline Corporation potential Looking to the future, El Paso— serve & west and meeting Western needs. this access—through 4W a day. (completed in early 1957) of Pacific North¬ (After Income Taxes) Co. Sz Obtained Poe"d is 33. Elections will be held May 13. Renominated serve excess Company important, it took positive steps to Citv): and Joseph M Scribn'^r of cinrfor. Deane & Scribner (Pitts¬ Tote I delivery capacity somewhat in of three billion cubic feet of gas per * Flmer M. Bloch of CaM'l lan preliminary agreements, El Paso will have a dustries sprang into existence. renomi¬ for El prosperity. Population increased by almost Morris Woodruff. by subsidiary companies reached Betty at <*2 Aberdeen Ro">d. Eli^-" beth, N. J. They have foim chil¬ dren: served states Natural Gas Company and the Westminster Pr®sb*rteri*>n Church. Mr. 1956, the nine Western Southwestern of -Mav- tr,,c-t°e a 1956 He Associetmn Loan * serving western markets Federal the Central Home Trust Com»anv, President and director of J. C. EL PASO NATURAL 6AS 27 The Commercial and Financial 28 Thursday, April 11, 193*7 . . . Bank and Insurance Stocks To Be Held June 7 Day of The Club of New York will be annual-Field The* Bond it by Robert J. Lewis, of Esta brook & Co., announced was === Friday, June 7, this year on held club. This first, the gains or losses realized on assets that were sold during a outing Bond the Club and will take place at The Sleepy Coun- Hollow * Club, Scarborough, t ry - N. Y...1 Blancke market or Noyes, Hemp- Noyes hill, Noyes & harmed Field. Day I ■ has been Co., this Chairman He will be general chairmen year. assisted by four H. —Harold Sherburne, ' Bacon, Whipple & Co.; John W. Callaghan, Goldman, Sachs & Co.; Orland K. Zeugner, Stone & Web¬ ster Securities Corporation and William Boston R. Caldwell, Corporation. First The committees have Tliirteen been appointed to supervise the sports, entertainment and other activities at the outing. Heading these com¬ mittees are the following chair¬ » .» of Aluminum construction Attendance—Gustave A. Alexis- Marache Granbery, O. Rut- Arrangements—Joseph Rutter & Co. Bawl Street Journal—Robert L. Haiter, First The Corpo¬ Boston ration. Circulation Wells — Laud- Brown, Bankers Trust Company. Entertainment—M a i 11 a n d T. Food and Beverage—Richard N. Rand, Rand & Co. Golf H. Todd, II, Kuhn, Loeb & Co. Horseshoe art, F. S. — Norman W,: Stew¬ It will be readily realized-what stock would do refundable a large bloc holding of duPont when we learn that 1 they must be paid. ' A somewhat with have interfered new investing by lire companies. companies benefit from these swings in portfolio valuations. Insurance companies invest mainly in the better grade equities where the corporation mortality rate is low. Hence, each new major high in equities is higher than the of insurance course, preceding high, ana, usually, the lows are successively higher. In any case, there could never be any concerted jettisoning of large bloc holdings as the markets could not absorb them, so the insur¬ ance companies are left with large holdings on which valuation shrinkage can be of serious proportions. accompanying table gives Gains Losses— or 1»5fi Aetna Casualty Aetna Insurance Continental Insurance der, Peabody & Co. Trophy—Frank _ ________ Phoenix M a n s e Insurance Fire Springfield 11, ___ Continental ___* ____ of Casualty Bankers • to the Government Officer West End ' 26 -• Bishopsgate, ^ *v London, E. C. 2. - *■ (London) Burma, Aden. Kenya, Tanganyika,.. Uganda; Zanzibar, and Somaliland Paid-Up £2,851,562. Reserve The Bank Fund: banking and exchange business. also „ Shippers. _/ ___^ _' ' _ , of No. America- Maryland Casualty Massachusetts Bonding U. S. The use of result but little New Bulletin _ Fidelity -& Guaranty ♦Consolidated Securities Co. _ Washington United States Fire Christiana _ _: _ Members New York Stock Exchange Members American Stock BROADWAY, NEW YORK 5, N. Telephone: BArclay 7-3560 <" Bell (L. A Teletppe—NY 1-1248-49 Glbbs, Manager Trading Dept./ Specialists in Bank Stocks added Company, Boulevard. the solidated net revenues of income of with compared $45,321,000, by con¬ operating and sales $307,701,000 $41,161,000 in and net 1955. - , Smith, Barney & Co. and Pierce, Carrison, 1,974,000 • 1 - 52,797,000 31,507,000 • < —561,000 as a staff 9500 He of x Calif. 175,000 LOS Baker Hogle Martin C. Fabian & Monica previously Guley have with Mutual Fund Associates, Inc. joined the staff of J. A. Hogle & Co., 507 Baker Arnold West was & Sixth Street. Mr. previously with Lloyd Co. I S ;;-• ;-V7'-/," Federal income will be redeemable part prior to maturity by op¬ eration of a bond redemption fund after July 1, 1960 at prices of¬ on in¬ ranging from 103% to 100%. The bonds also may be redeemed as a whole on or after July 1, 1967 scaled at from or ranging/from 104% to v-'V*/-/1 ;*'/;- prices 100%;* the L. M. Krohn Director r C Lewis p r e s s w a 'M. " ; "Krohn, ^ manager, Corporate' Underwriting Depart¬ ment, Ira* Haupt-&. Co?;- New York Department is con¬ total of over $17,000,- Road. a Lehman Brothers. state Forest B;/Wetzel With operate and main¬ Prin¬ bridge tax funds. m% ST. LOUIS, Mo. — Forest B. Wetzel has become associated payable from receipts and gasoline Earnings available for I. M. Simon & on that the bonds. revenues available bonds for It from debt is was estimated these service 011 the thereafter to annual 'increase $3,130,000- beginning an formerly an officer of Bankers with which he had .been associated for many just offered will amount to with York Stock Exchanges. He Bond & Securities Co. sources $4,570,000 ill the fiscal year 19601961/ and Midwest than sufficient to pay inter¬ with Co.; 315 North 4th Street, members of the New debt service in the past year were est . I. M. Simon & Co.. ■ Highways. toll ^ ; construction and, cipal Expressway routes are parts of the Federal System of Inter¬ more ANGELES, Calif.—Eli and . being proceeds The bonds will be (Special to The Financial Chronicle) — 7. the bonds is exempt present bonds The bonds, $23,700,000 will in addition will material probably would been on in applied to retirement of all of 000 to the cost of 1,749,000 Two With J. A. has Santa was net years, taxes. a the all from $60,- approximately ;yield to later accrued are and 99 V2 % tributing all of the companies under it. HILLS, bonds term State 243,000 —1,072,000 5,784,000 the bonds. of of at to more tion of 130,000 5,619,000 ir 1,168,000 1,406,000 665,000 8,118,000 of in the times in times 1.80 Interest consists projections, to 1.50 tensions, which include construc¬ Corporation, Thomson, jGa., manu¬ a third toll bridge, will be facturers ;of prefabricated homes largely completed and placed in and house trailers. Before joining operation , by July 1, .1959; and Ira Haupt & Co. six years ago, the entire project is scheduled for completion by July 1,-1960. The Mr. ■ Krohn was associated with ; 2,627,000 5,060,000 19,259,000 64,819,000 earned construction of extensions to the City, * has- been ? elected» to. the present Expressway, first opened to traffic in 1953, The primary ex-, Board of -/Directors of the - Knox 1,518,000 . according averaging 1.70 times over the life Carrison, Wulbern, offering 1979-80. Debt fiscal year be than y's outstanding revenue bonds, and the balance of the funds will be oised to- finance 150,000 —6,598,000 the service will 1960-61 fiscal year and up April 9 by, a underwriting group of 157 mem¬ bers headed by Smith, Barney & the E 664,000 13,328,000^ bonds was nationwide made be 67,000 \ . 5,375,000 7,908,000 in $70,000,000 of F laExpressway revenue sale of the 709,000 > Authority Of —65,000 ' offering Jacksonville, yield of 3.20% to approxi¬ mately 4%. " 1,309,000 1,745,000 330,000 1,068,000 , 922,000 / Wulbern, Inc. Head Underwriting Group Public from affect the fleet management usually adheres to the same Greenspoon to 1956, $70,000,000 Jacksonville Expressway Revenue Bonds Offered to Investors terest, Y. * used ^ (Special to Thk Financial Chronicle) Reuben be tain the entire Expressway. consolidated investment policy for BEVERLY Exchange will retire outstanding bank borrowings, aggregating $63,000,000 in U. S. funds, and the 4.28%. The serial bonds are Available Laird, Bissell & Meeds sale of the proceeds from debentures The data. Fabian Adds 1 tb _ Fire Pacific undertaken _ Insurance Providence Our _ Fire Insurance Co. Trusteeships and Executorships a com¬ of such consolidated net sales and operating revenues of the company amounted, to $355,553,000 and net income, of During .v the company to fered 228,000 4,082,000 369,000 . Federal Insurance Home £3,104,687 condncts every description of 3,269,000 12,530,000 Haven Surety Insurance Hartford £4,562,500 _ Firemen's, Newark Protectorate.., Authorized Capital Capital New & 2,932,000 1,831,000 8.447,000 _ Accident Boston 13,112,000 5,883,000 12,260,000 8,102,000 4,474,000- . . Security, Bankers Branchi 13, St. James's Square, S. W. 1. In India, Pakistan, Ceylon, ' "Branches ____: Standard American date ' ping line.:/ 4V4% term bonds due July 1, 1992 and $10,000,000 of 3%%, 3.90% and 4% serial bonds due July 1, 1961-1977, inclusive. 201,000 427,000 ; 11,367,000 . National Fire in Kenya Colony and Uganda Head 3,125,000 ___ ,;:Glens Falls INDIA, LIMITED 3,142,000: . Insurance Seattle General BANK 19,400.000 . _ Fireman's Fund NATIONAL Net the The 26,085,000 . . ____________ American Insurance Blyth & Co., Inc. paying the to delivery. 000,000 —2,278,000 4,620,000 4,845,000 . j ____. Fire_____ Insurance Northern > L. aluminum ingot. producer -of production capacity in 1960; Inc. 325,000 3,066,000 46,165,000 . _______ Union National 47,548,000 , Great American Insurance Kid¬ 8,490,000 . Association Fire C. fee mitment Co. and Pierce, $5,676,000 1,253,000 22,876,000 $17,111,000 __________ Fidelity & Deposit Fidelity Phenix > Cates, est state ____ F. with the company so the that the investment gain or loss for J 955 and 1956. The data greqldt consolidated, and besides the annual mark-up or mark-down of assets on the books at the yearend, it includes realized profits and losses on assets sold. Day. Tennis—Dudley 10 a portion of the debentures will delayed delivery, serious were conditions after the '1929 market supervisory authorities permitted insurance for their assets. These were fictitious, and set high enough to keep some companies solvent that otherwise would have gone under. Indeed, crash Company. Eustis, Spencer Trask & Co, of be available for ; —Investment Exchange—Brittin period a deemed little truth in Special Feature s—Ernest W. Stock for: ranging from 107V2% for those re¬ this is said facetiously, nevertheless there is more than a it, for the losses have been at an all-time high, and course, Borkland, Jr., Tucker, Anthony & R, L. is prior to April I, 1958; 4o; ^ Alcan. owns in; Canada exten¬ duPont sold at aiv all-time high of a fraction* Tinder ?50, and it is/ 100% for those redeemed: on or-., sive/alumina producing; facilities, now selling at about 180/:. There are plenty of instances in Which / after April 1, 1979; and at sinking five^ largb^ hydroelectric / power the shrinkage in asset values from 1955 to 1956 was 75% or even fund redemption prices ranging* stations, five primary aluminum and four fabricating more. Nor is this^tonfined to equity holdings alone, for a number from* 101.90% on April 1, 1960 smelters of units that utilize fixed income media to a large degree also and at decreasing prices there-. plant?. .Through its wholly-owned turned in quite unfavorable reports in thfe > after to 100% for those retired ^qjbs|j|iaHcS( itfydperates bauxite on This facet of insurance company results, along with the "con¬ April 1, 1979. One hundred mines and a plant for the treat¬ percent of the issue will be re¬ ment of bauxite ore 4 in British tinuing high fire and other losses, makes it hard for this writer tired through the sinking fund by Guiana, dock and trans-shipment to find justification for the better prices that we have seen for facilities in Trinidad, and a fluor¬ maturity. ' a number of the fire stocks in recent weeks. Efforts to interest insurance investment officers in adding to their portfolios often Application is being made for spar mine, shipping terminals and the listing of the debentures on railway, storage and construction are met with the reply, "We aren't buying a thing as we have no the New York Stock Exchange. facilities in Canada, and a ship¬ money; it's all being used to pay underwriting losses." While, of Smithers & Co. & at years asset valuations to Publicity—William H. Long, Jr., Doremus , fund lower, interest cost to On the basis- of, its announced ex¬ inflate the values of insurance- company; equity hold*'- >. the company. They are redeem-/ pansion plans ; and- those of com¬ ings, a downturn: will be reflected in lower asset, figures, and. this able at theoption- of; the com - petitors; it- expects to have the is what resulted: in. the full year 1956; world's- largest aluminum ingot pany at general redemption prices The William — which program debentures,- expected to cost about $350,000,000 during the period 1957 to i960. due 1980, at 102% to yield 4.36%. Interest and principal will be A lean,-the principal-subsidiary of Aluminium Liraited, curr3en^Iy payable in U. S. dollars.-' . u ranks as the world's second larg¬ The debentures will be non¬ companies to employ "convention values" Ijams, W. C. Langley & Co, Co. of Canada, Ltd. requirements and expenditures companyrs in connection with the market will Long-term, & Co. offered 4M»%:Z sinking- Indeed, underwriting losses have been of such size that they son, w tal Co. & v previously discussed the tremendous gains reported vin 1955 and the first half of 1956, these gains having been the result of the bull market in those periods/ But just as a bull men: ter, . including working capi¬ purposes, publicly yesterday (April 10) $125,000,000 Stanley This space common Blancke Boston secondly, the mark-up or mark-down to either convention values of the assets on the books at a given date. group, balance will be added to gepfer^l, funds to be used for corporate; banking jointly by The,*. First Corporation and Morgan managed period; given investment An Insurance Stocks — Apart from income from investments that, in a great majprr will be the for - This Week _ ,'s+i Of Canada Debentures === year's event 33rd ; By ARTHUR B. WALLACE $125,000,000 Aluminum Company ity of cases, is the source of fire and casualty insurance company cash dividends to stockholders,' Jfhese companies also report gains and losses in their investments/ There are two components hgre: presi dent of the Boston-Morgan Stanley Group Offers First Bond Club Field Day 4 Chronicle (1718) years. Prior thereto he conducted ' his own - investment " business- ia Volume 185 Number 5628 The Commercial . .. Financial Chronicle ana (1717) First Boston Public Utility Securities 060 in the the Bin gases ; sulphur and sulphur-bearing ores in New Brunswick, Alaska and in Tincf/in fnm various Qt!' nnH The other parts of the has company profitJn e?ch war— smaller, less efficient plants wilUflrv alji and shielter and is actively exploring for •- - TTircf since built processes to reclaim sul- phur from refinery Sulphur Secondary plants vestigate * Offers Texas Gulf By OWEN ELY -Kentucky Utilities provides electricity to a population of 566- Group m am" AUUOUUCe OUtlUff >"; ' ' , ® -1 PHILADELPHIA, Pa.—The an*nual outing of the Philadelphia Securities Association will be held a year since it began operation in. 1919. In 1956, 7^Q flllai OBCSa ASS II ■ world. reported 29 . ^T^ay, gross ;on 19?7' Kentucky and in the soi areas , _ . A< state. Old Dominion sidiary, three supplies /; Power, sub- a creased front to and 19.9c in eleetrkity. /in;,fuel cokt ,'per^ kwh has. dropped -in^ southwestern from counties 22.2c Virginia. The mining of bitumicoal and agriculture {corn, kwh have industrial revenues,sother commercial business which $39 million would be and 11%, Lexington with mated present esti- a and :C^xas £u\F*alnLr toS metropolitan population of is the largest city served company. About two years 122.000 by the industry time five that nee industries have new -President Watt'has indicated that the company may decide to ask for- a rate increase in ;a few iqqo rate of return is that estimated these six new ward about 4.75% will employ some 11,000 people with payrolls approximating $45 million annually. The present Lexington load of 40,- 50% by 1960, and residential and by in typical on a of what is smaller scale in already asked for West Kentucky Gas allowed actively promoting munity development. V> now com- industries new II moving in and created expansion mated 13,950 new _ 800,000'in annual cluded Machines' jobs and $55,payrolls. It in¬ International Business research laboratory, under construction Other new in I * " The ' 12 now Federal Landv banks' fiscal agent, John T. Knox, Kentucky recently are - pleted Utilities their own plants., Excluding kwh factor sales have increased sinee 1947 trend. in "steady a Electric revenues 156% upward made a somewhat similar showing,- increasing from $17 million in 1947 to $37 million last year, a gain of 118%. Share from $1.01 earnings ■ • interim loss of the EEI-OVEC business, regaining the $2.13 level in 1956. Dividends have increased 80c-in 1948 to $1.28 the priqe tripled — during • of the from 10 from nearly 30 „ . . ' long-term loans to farmers through J.1 national farm loan associatlon!rt on th* security of first ^ortga&es. These J°cal associa!10"s' own^d entirely by farmers °^iIt 3 L ?e •SS'1 ?arnlorJ m the ^out $102 million invested banks, which have accumu- s,Kfi nnftdf"> . Tq Hear G. Slattery CHICAGO, 111.—The Investment Chicago will meet at a 7 ago with last November's peak of 390,000 kw, and there, is also about 80,000 kw purchased power avail¬ able, When making the a c o m reserve of 17%. 1956, dividend payments u shares In- t-u of j/S!; 8n? Prevention speaker will be topic of guest Gerald Slattery, Fire was Co. : and Gaston F. Baime _ Carroll with Sterlin & Co. Aronson He . & Securities Co. were With Cradock Sees. v . . .5 ... . • ... " i (Special to The Financial Chronicle) its only LOS ANGELES, many Calif.—Harvey has become associated F. Banna JvCj with Cradock Securities Limited. : — For 27th Consecutive Year Mountain Fuel •>i;- ■;; vi Supply Co. v;';;7|: /•-. ■';v;r Sets New Hish Records in Utah-Wyoming Area 2;;i • • fj •; L^J ^y ■'if* i. Operations of Mountain Fuel Supply Co. in 1956 reached highs, with marked improvement over 1955. new Number of customers increased from in 135.665 increased 1956 to or 7.6%. For the 1955. 1955 to period gas sales compared with 59.218 65.925 billion cubic feet billion cubic feet sold in 126.081 in same 11.3%. or Volume of gas run through the Company's system in 1956 was more than double the volume of six years ago and more than three times the volume of ten years ago. > i Brief - ;*?■ Comparison 1956-1955 ; ; 1956. K, 1955 ; Total'assets, (depreciated basis) (. Total .. . . revenues..,.. Net.income. .... o'Net income per $69,032,138 3.631.295 3,293.656 ..,... share., . («n <*'■ .$73,913,112 24.335,808 ••• 22.502,983 - 1,66 2.188.891.4 shares) 1.59 (on 2.076.584.4 shares) Dividends.,..................,1.20 Number of stockholder^..;..... 1.10 12,449 - 1,498 : The Company owns and operates 94 miles of ■' gathering lines, 470 miles of transmission lines, 2,112 miles of distribution mains and 702 miles' of customer service lines. per System capacity is 291 million cubic feet day. Dividends have been paid continuously by the Company since 1935. Present dividend rate is $.30 per share a quarter. Listed on the Pittsburgh Stock Copy of A nnual Report Exchange. will he sent on MOUNTAIN FUEL SUPPLY p a n - H. formerly Chief. y's newest Gaston F. Balme passed away generating station goes into com- .April 8 at": the age^ of 69. Mr. mercial operation about May 1, Balme, prior to his retirement virtually all of the company's was associated with G. E. Barrett, generation will come from power a New York investment firm. : , capital stock;' — with nected company s capi- y««* 11 has had no debt- —i —— diVi- tal structure consists of 10,020,000 i,ed t0 °Perate Pilot Plants to in" 'v The company about a decade had 10 small plants and had to buy power; now they have 420.000 kw panaritv mmnrrpri 420,000 kw capacity compared and ' Chicago Invest. .Women T (special to*THfi financial Chronicle $266,000:000/ Women of 1949-55. 1921, $2 per share. The re- with in ?I f , Nickel Company Lim- outstanding security; for »wmoi wve dicumu- currently-and stock nearly to . Inderal Land; Banks make to $2.13 - T increased in 1954 v(with dip in 1951),. but in 1955 dropped to $2.05 due to the - an , , rr ^ORON^O^CalJ.—D^vid H. has bec^e^a^iat^ ™lth J- A-'Overtoil& :Cd;/:1134 Wallace w^itu c«o agreement sales huge power this abnormal r ^i,iui,>/uu. xu hdve totaled $391,707^500. In 1955 covers sulphur from sour natural an V; l , payment nave mi. Willmm St., New York City, have increased from 764 million w^h the assistance of a nationin 1947 to 2,148,000,060 in 1954. wide dealer and banker group a gain of 181%, but receded to Proceeds from the financing will 1,957,000,000 in 1956 due to loss uied t0 redeem $170,000,000 of of the power sales to EEI and .'^1^ r",81"^ May 1, OVEC after these companies 1957- to rOpay borrowings from (which service the AEC) comcommercial banks, and for lending Kentucky sales v (soedaitb'tfita;~ f ■ Banks Cup. in foreign • • ■ I Electric, Metal & Thermit, Bundy Tubing and Dixie plants General from ^ C J0ins J. A. Overton ; : recently Bl J profits :%v:- - • : 6V2%, Both issues, being offered at 100%, are noncallable. These new consolidated bonds will be dated May 1, 1957. Offering was made through the Lexington. industries announcing * yesterday (April 10) offered publicly $78,000,000 of 3%% bonds due May 1, 1958, and $125,000,000 of 4% bonds due May 1, 1962. typewriter plant, and Square D's $4,500,000 manufacturing plant and I tial and Offer 37/8%4% Bonds $20 million electric new » being de-- dends paid through'March 15,1957 , Federal Ladd HaRKS esti¬ an . Mexico. The company and li- now $1^00,000. higher. year*^ auu,, has ' i Richard p. , ■ ■ ..... increase. an was of of l.& gas, — , resulting from lower volume and QraPge Avenue. ,the Feduc1d export prices which /:,> /. Jbd th^t- {jfcame effective midway: through r -.7'/!jWith H. Carroll j10h*^e^as^Gulfb^s/discovered; o*io^ A domes penses—over ^sulphur ^ower 1Q57-Thrpp yield existing industries expanding. This return a $ ?t " / *®5J;\lhn% JhwSh pays $1.28 to 4.9%. Dividend payout of is somewhat on the low side, and the stock sells at 12.2 times earnings compared with an industry average of 14.3. past 10 years 217 industries have located in the company's territory and 105 existing industries expanded their operations. The greatest industrial expansion occurred in 1956, with 32 j» Feh^trarv , new veloped and mined. .In addition, 195$ results were affected by sharP^ higher exploration: ex- <,Tinh,ir* !hap •1P55i- -ter taxe£?—ahd by . 1 ™, ? Counter Market and During -the new $2.13, » rllu nrnd,ire« Gulf-;produces _.CARMEL, Calif. A , l0V*er p5?£l!S-PW8 in :*ecent £ftlll?ted Wltb ^ r€flft both larger capital georgeV. Yates & Co., Jorgenson outlays and higher operating costs P^g. : y- S If th* *11^ ,[qqqv<iq4q JP ,J it is understood, due to emergency conditions. Kentucky Utilities is currently selling around 26 in the Over-the- Kentucky communities by the company, who are served year's probable i n g would dilute share earnings. ' V. :,;;y \ ■ Louisville Gas & Electric has of scores last vs. year4 f11^ amc . (Special to The FiN*teiAC Chronicle) amortization /*'•"' end Rb!ffg fair value' rate n a n c about Lexington happening is $2.06 next cus- one-third each. This expansion a base. It is expected that, without rate increase, share earnings for this year may decline to about the number of increase on a i„ereaS'e commercial should turners to vw costs in- dustries $00'kw iSeXexpec?ed showing a down-* trend due to higher fuel etc, and currently is only ^ respec-. Rising depreciation provisions and * — in Dro* Co*, with ^ the T® £ -Texas , 45-year history but the indicated se- leeted Lexington, and one e a a IdeaIU(.nlion nearby In the county. It is net of the new stock in 1958. common fh in 1955. tPe receive rtff. • -at ™ It expects to complete its mercial 23%, residential-rural 1957 program with $4 million in 38% and sales to other utilities temporary bank loans but expects 36%. >w"',<;/■-to sell about $177million iri bonds* / m f money. com- h ^ decreased *r6m nous 22,406 to 12,403. V- — livestock and .tobacco); areMhei, The company expects to spend principal activities in the territory. $72 million for-new construction Mines account for about 12% of in the four years 1957-60,Vof per $93,589,000 and $32,356,000 -.... ^ • 4.97 mills to 2.46 mills.:Btu request. CO. _ • " Senhny 73 Communities in the Salt Lake City • Ogden \ area of Utah and southwestern Wyoming." - Provo . General Office: 36 South State Street #f- " ' Salt Lake City 10. Utah 4. Jb ■> The Commercial and Financial Chronicle . . Thursday, April 11, 1957 . (1718) SO havior expansion be¬ politics./ It must, of course, be admitted that such will bear. Continued from first page this is not without precedent in world as the It See We engineers and all the rest (except the wage earner of Furthermore, subsequent sudden and unions, but more important is the effect such business has to do statement can in Of the from industry without taking any effective and responsible part.in promoting produc¬ tion. Notwithstanding the magic of science and technology, of management and diligence, further real advance by labor may require an altered attitude and policy on the part of the unions and of the men toward their part in full form—assuming there are such cases—extensive con¬ trols and This have not dence regulation the common practice. are determination sown in other to reap what and where they unfortunately in evi¬ and will not sow is spheres today in a degree not generally perhaps. One of the most glaring examples of it is found today—if we may speak with complete candor— in the case of Britain. The authorities in that country realized say that the nation can not bear the cost armament and to live of conventional at the same time live as it at home. is determined It will therefore reduce its ordinary de¬ more than he really earns stimulates helps all of us, but we may pass that one Continued Reuther and permitted to bear the expense, or much Britain seems to regard herself as being in geographical position where this country dare not fail to defend her—and she intends to cash in on that cir¬ contemplated. a cumstance. Of course, whether or not Britain can or can largely on how hard people of that country are willing try. It is naturally much easier to let George do it. not do this or that for itself depends the rank and file of the to * i And, Egypt Too Perhaps much the same could be said of the present policy and program of the Egyptians with respect to the Suez Canal. That waterway was but in part supplied by nature. Most of it, and all of it as a feasible route, is man Egypt had nothing to do with its construction and nothing to its operations. It lies in Egyp¬ tian territory, though, and its rulers—with the encouragfor FRASER ment of the Kremlin intend to take all the traffic made. has contributed Digitized — the credit, the amount of credit forced the of credit sector consumer sector of credit. into some other The consequences could conceivably become as eco¬ nomically disturbing as those that were believed to have justified imposing controls credit. the these consumer over /;/ / •■>,/" &:*'./.■/; -V/-/ In light, / ;of therefore, , considerations, reliance on credit controls for re¬ any overexpansion of credit conditions looms instrument one as Consumer Instalment an . normal alternative control and with the consistent free market than selective controls. / ;//'-. \ a . Effectiveness of General jCoiitrels It is controls pose consumer credit would of itself serve as argued that a market overstimulated by the use of consumer is it under as credit of more principles of Credit and Public Policy granted that general credit controls cannot act with the same a mod¬ promptness and dispatch in re¬ prevent the straining the growth of consumer as can selective credit by borrowing from the future, but overexpansion of consumer credit, credit either concern in that regard controls. On the other hand, there may also engender the expansion unnecessarily deter con¬ is presumptive evidence that over of a productive capacity that may might later prove to be redundant. .In structive industrial and commer¬ a period of time they are effec¬ cial programs or else, if consumer tive. A juncture in the state of such an event, consumer credit credit cannot only overreach itself erating influence to economic credit controls were summarily the consumer mind when mass effects ;• imposed after annual program¬ enthusiasm leads to a vast up¬ ming had been embarked upon, surge in the desire to apply con¬ are aggravated by the obvious fact that the extension of consumer*: the disruptive effects on manu¬ sumer credit to the purchase of becomes unsettling an whose influence credit involves adverse facturing the assumption of service the advent The difficulties collective and upon involve may vidual been economic conditions. example, if it were possible trace the onset of a business For to recession to a contraction in widespread the desired against which general credit con¬ trols must exert their influence. sales opposition to credit controls tnat has consumer unfavorable of inventories, retail schedules, whose and wholesale and both inai- might be serious. debt burden by its users, a voiced by industrial, com¬ Prior goods been have groups into the supports the position frequently taken that the imposition of con¬ tion of mercial, financial and that to time, credit-granting new background is the drawn market existing and units will, magnetically ' satisfac¬ for the desires. such Not only credit, but all kinds of consumer sumer credit controls, except in, credit, expand in this type of eco¬ volume of consumer credit, it times of crisis, could so upset nomic setting and in the process,4 might be revealed that the nar¬ "the normal processes of produc¬ tne pressure of an increasing de- \ rowing markets incident to a re¬ tion/distribution, and consump¬ mand is exerted on the available duced use of consumer credit had tion as to take from rather than supply of credit. in turn brought about lower in¬ add to "the greatest good of the Then, because the effect of dustrial production schedules and greatest many." employment. At the same But to set out this contractive process reduced time, difficulties credit controls is to re¬ expansion of credit, influence be-; general the problems and attendant to peace¬ a be further aggravated by time imposition of consumer spirit of caution which would credit controls cannot hide the deter prospective users of con¬ fact that major fluctuations in sumer credit from incurring debt the volume of outstanding con¬ while others would apply treir sumer credit contain unstabilizefforts to liquidating their out¬ ing economic influences that must standing obligations. be restrained. How appropriate However, generally favorable restraint can be exercised sug¬ strict the their restraining would a greater as: credit expands progressively comes the total volume of with especial weight on commercial banks which are most dynamic force in the, and bears the tne tions. What is are the banks institu-] commercial most important, credit-granting of area more, experience with the use of con¬ gests that it is not consumer, single factor in the extension of sumer credit, plus a demonstrated di¬ credit alone, but the entire scheme consumer credit, accounting capacity for general credit controls of credit, that requires scrutiny. rectly and indirectly for more to influence movements in its vol¬ than one-half of the total volume Consumer credit as construe-, a indicates that the econom¬ tive and dynamic factor in main¬ ically depressing elements poten¬ taining and raising our standard tially inherent in wide fluctuations of living has already been ad¬ in the volumdTof consumer credit verted to, as has been the strength may not be a matter of serious of )ts influence in broadening our concern. Therefore, searching markets and reaping the benefits thought and examination should of mass production. But what has be given to 'the objections some¬ been said of the good and bad times raised by granting any qualities of consumer credit can ume, administrative Federal body dis¬ authority standby impose selective credit controls. it, of the sort of pushbutton preparedness that is now in reduction consumer cretionary of summarily simultaneous, total supply of a general from page 14 most America will be consumer were without - might then rush higher and ever higher wages for, of the old fallacy that to pay fense organization and depend in the future upon.the expensive of all types of defense, and thus be able to release men to private industry to supply the con¬ sumer. The answer is, of course, that the United States of controls imposed are tical a in¬ rapid straining What Is Fair About It? producing. Where such competition does not exist and cannot in the nature of the case exist in any very prac¬ of source in the volume of crease pe¬ liquidity has the be to credit, it follows that if consumer out use by now that it has grown so timeworn. Mr. the others would do well to think again. , It ought to be, but may well not be, a work of supererogation to ask once again what the basis is in reason, logic or ordinary fairness for an apportionment of all gains in output to the wage earner who in no way concerns himself with production advances. Of course, the unions and many others, some of whom ought to know better, have a good deal to say about "productivity"— by which is meant merely output per hour per worker-^* and to cite somewhat doubtful statistics to prove that it is on the increase. This, so they say, lays a basis for higher wages. It should be clear to a wayfaring man that this reasoning carries a complete non sequitur. Karely does the average wage earner have anything at all to do with higher output per hour of work. More often it is the other way round, management being under the necessity of finding ways and means of moving ahead despite impedi¬ ments placed in his path by the wage earner. The unvarnished truth of the matter is that the unions are determined to wring from the traffic the last farthing that it will bear, and are over-optimistic as to what that is. What makes that fact ominous is the cir¬ cumstance that wage earners have been encouraged to organize themselves into a tight monopoly and to demand many privileges not ordinarily permitted to any other element in the population. Doubtless business generally is operated on the principle of charging what the traffic will bear, but it must face a competition which definitely relates what the traffic will bear to some reasonable rela¬ tion to costs—that is to the level of efficiency attained in held ; credit earner wage business and ly obtained all that they can / advocates of course less work make They may well obtained or very near¬ improving production rates. overreach- monopoly simply take what by rights belongs to ether elements in the population. It is still worse to have its efforts to take it kill the goose that lays, the golden egg. point of fact provide all this if the "we" of the second simply demands it without turning a hand to help pro¬ vide it. The unions have been pressing their luck a good deal in recent years. con¬ previous a overplayed and valuable assets became largely worthless. / /Such a thing could also happen to our own labor * ing must have upon us all whether we are involved in / the controversy or not. It is bad enough to have the labor the second. large question in this whole with whether the "we" of the first as riod of rising public been of < their power to provide all this for the wage earner, and will be required to do so. The "we" of the first statement is quite evidently not the "we" of course) have it within One form some things have often happened in international rela¬ tions-—and cases could easily be cited where hands were Such As of credit. sumer As admitted usually sales habits with and gree credit individual commercial is not war¬ controls a as of more less general that may de¬ credit, of types intimates any excess credit in other of selective propriate credit controls represent interference spending that said be which regards such objections, it is consumer an to also offer as ap¬ means for restraining in the use of consumer do selective controls. Fundamentally, the total bse of of that funds eventually . are lodged in consumer credit paper.* Considering the dominant role played the by field their serve of commercial banks in* credit and consumer companion responsibility to simultaneously a myriad of credit, it becomes other needs for apparent that the impact of gen¬ eral credit controls on the credit- granting activities of is far-reaching commercial banks and espe¬ cially so at a- time when they are being employed vigorously. This is because the effectiveness of general creases volume credit controls in¬ the sought to with the expansion in of credit it is that credit depends on the supply exceptional cir¬ available in the hands of credit- restrain, but with a pervasive¬ Also, it is known granting institutions and how it ness throughout the general struc¬ ture of credit that does not from experience that the enforce¬ will then be allocated among its forcibly interrupt whatever ex¬ ment of consumer credit controls claimants. Many considerations poses difficult administrative enter into the process of credit pansion of credit is appropriate to the healthy growth of a dy¬ problems except under emergency allocation, but all revolve around namic economy. conditions when the populace is the principle that by and large Besides their leading role in willing to accept the discipline a free market is a better vehicle of controls from patriotic reasons. the field of consumer credit, com¬ for its allocation than a controlled mercial banks, as has been men¬ Furthermore, the economically market. However, the working of market is bound to be tioned, have diverse responsibili¬ successful operation of peacetime a free controls over consumer credit un¬ affected by the temper of the ties for the extension of .credit that also run parallel to an even der a standby authority would times, and thus it is that when demand infallible judgment consumer on propensities to spend superior responsibility to be pre¬ the part of those charged with the are attracted to any particular pared to meet the withdrawal reouirements of their depositors. responsibility for appraising the field of personal expenditure, it need and choosing the-time for is a sequel that the use of con¬ These responsibilities, in combi¬ their imposition. Although it is sumer credit will also expand in nation, demand that bank man¬ practices ranted except in cumstances. claimed the . that public awareness existence of authority of that field and to im¬ plier process, may, by a multi¬ result in an over- agements arrange the distribution of their resources at their disposal Volume 185 Number 5628 .. The Commercial and Financial Chronicle . (1719) so best to meet the claims for as credit the pressed of degree liquidity peak of most the essential their of obligations*' This is an perfection trols eventually exert timely re- while the ownership of television over the growth of con-, sets replaces, in some * at -straint and to- maintain fulfillment the them upon time same to is missions acknowledged that in doing so the free market process of allocating the available deposit supply of credit at time of a expressed: active demand for credit an not may to theatres degree, ad¬ ing effects ing power. and view sports arenas. , , art whose is credit, it sumer -- - On the the end sumer premise, therefore, that use of many essential credit con¬ in the .amount of all types of member consciously determined distribu- : bank loans during this past year, tion of banking resources that-which came to $7,310,000,000, and pected to have general credit controls reach essential consumer household maximum of efficiency. ■v' their; analysis of its Iv, .:;"' illustration of the manner, in In which commercial - uses, most needs, an impact on both small and large, have been penditures met, case- though delays have even oc- distrib- "chirred, and where difficulties were banks sonal incomes should as not be whose ex¬ in abrupt and harsh to the general level of ex¬ not was ute .their loanahle resources, used of during paper - another was 1956,? which /*>:??{■; intense de- of year mand for commercial bank * - payments, «.T„ jtrnnrl^" * ;• -'• • • /'-v.' 12.9% on Cbi by general credit controls on the commercial banks to allocate their available supplies of credit among debt of years. a ■ consumers' sumer, credit really good for the to be reckoned with than it of deposit liabilities.- v. ; ; , A. *'-: /:: l^ss positive ; v. answer can be given to the case of the individual - - of have along the with consumer* generation is ; General. Controls' 1956 Success . „ user of consumer credit. It isesti-/ ,' been use. credit of debts of the those imponderable times marches of use them, fact more ing credit marches will everyone the potentially unstabilizforce, I " am sure a for With Francis I. du Pont (Special to The Financial Chronicle) as LOS in H. with ANGELES, Calif. Lyndon Osmundson Center. greatest Logan & Co. when good many." f ■ 5, what enough to look at be termed these might global aspects of ment consumer instal¬ credit. individual Francis I. greatest ; But it is not tion's economic activities will also the of future a The quality of the obligations must also be of the rolling Where instances in adjustment type be viewed. that redirects many primary fac-: the rapid growth in the outstand¬ tors of production and consump¬ ing volume of consumer instal¬ our greatest many" consumer in¬ credit has its fitting that it is folly to attempt to pre¬ dict will or will not serve "the into in good of place of honor. per¬ present that greatest stalment it a agree "the debt from quality economic search ignores evolution on, being as to instal¬ that, policies, ment credit again become suspect vantage youthful whose behind are the it Moreover, even should history be repeated and consumer instal¬ by To criti¬ consumer from if respect to con¬ instalment credit obliga¬ tions are less likely to arise. i obligations," good. a sumer its have point the debt is booms through properly conceived fiscal is the the for it liquidity, and monetary problems with em¬ credit economic and the constant if that origins in earlier pe¬ notable for a high degree can be conceded that the prob¬ lems incident to excessive public liquidity can be prevented tended from fact their riods the helpful in easing the living habits, seems denied by payment records, be cize therefore, al¬ are, ways respect ment disposable . consistent with the character v of younger path to most , that say which greatest many.^ Collectively, the discussing the possible results of deserving claimants,;; aPswer. ^fs /has already been a downward movement of per¬ necessity at a time of fall- Slven» in the contention that the sonal incomes. 1 ing liquidity to accomplish what- J*se P* consumer credit has been Even so, recent experience gives ever arrangement of resources was beneficial to our high standard of hope that future shifts in the na¬ most , hand, of and the of their have of harmful, in making it callous instalment debt took Lastly, in,, our thesis of "the incomes. The claims for greatest .good-of- the greatest seryice^over other uses of binny" comes the question:. Is con- sonal incomes credit, * reflects both the pressure exerted their in However, demonstrable exist¬ ■ 1956 ment maturities. that income burden the • consumer to the themselves ployment as and other free To their encountered existing specialized extensively. i > *■'* * /- V ;■ instalment credit-granting institutions have* Granted that it is reassuring paper^ increased by $1,081,000,000 'given assistance. Whether the use to feel that consumer instalment for the year ended Dec. 31, 1956, *ih-1955 and 1958 of the cruder credit contains qualities that tend as compared to an increase of $1,instrument of selective credit con- to oifset some of the potentially 805,000,000 for the year ended Dec:- trols to restrain the growth of * depressing economic effects of a 31, 1955: Taking full account of consumer .credit would have been.; reduction in the level of per¬ a major slowdown in the rate of more beneficial to an economy op- sonal incomes, economic vulner¬ increase in holdings of automobile erating under forced - draft than -, ability from that direction cannot paper, the slower over-all growth the use of general credit controls* be dismissed out of hand for the in holdings' of consumer instal- cannot be answered.* hard fact .remains that in holdings purchas¬ instalment elements passage as credit that consumer job the on might have been the years / gone by when consumer fact society security, and consequently their debtrpaying ability, is better assured than may be of the older elements who, expenditures has been pro¬ serve the credit needs of all claim- vided for previously through the being vigorously sub-*ants; Judging, however, from the application of consumer instal¬ jected to the influence of general continued growth in the total ment credit,*/a reduction in per¬ it. is consumer Encouraging is * concentrated younger capably when the expansion And on the of ence ; of credit is credit controls. is 31 •' / * • v* du He was ' 7:*. * Joins is Pont & ' formerly with J. '."* • with now Co., Statler ^ j'" v ^ ' '• Hemphill, Noyes f. '*• '.' v (Special to The Financial Chronicle) LO£> ANGELES, M. Maxwell is now Calif.—George connected with Hemphill, Noyes & Co., 628 West Sixth Street. that about 30 million housetion without materially altering ment credit have been associated ?r three-fifths of all house- the total level of economic ac¬ with periods of economic Goodbody Adds to Staff were boomSj compatible with the objec- holds in the United States, owe tivity. In that event, the high investigation has identified these (Special to The Financial Chronicle) v. tives sought after, as seen through s0;^ie f°rm of consumer debt.: An rate of turnover in consumer in¬ same periods with a deteriora¬ the credit activities of the com- estimated BOSTON, Mass.—John J. Ber13.; million households credit should stalment serve tion in to the quality of consumer mercial banks, which witnessed a owe^debt for more than one purgin has become affiliated with counteract the possibility that the obligations, as competition and slowing down in the growth of Pose- Mortgage ..debt is the most the weight of instalment hectic excitement of the boom Goodbody & Co., 140 Federal St. payments their holdings of consumer* instal- common obligation but nearly against reduced personal incomes have led to a lowering of down He was previously with Schirmer, ment paper at the same time, that ^"^7 ? of all households are in will exert cumulatively depress¬ payments and an extension of Atherton & Co. credit extended in other directions debt for autos, household equip/ contributed to enlargement of the mePt, or other nonmortgage purnation's productive capacitv and ^oses. Acquisition and possession thereby to the potential relief of ^he ?_,7slf.a assets for which the heavy demands made on the these obligations were assumed supply of essential commodities "ave#:^s has been stated previ-j Broadly speaking, the effects ofgeneral: credit controls in: 1956 ■ and materials. In tion short, the unfettered allocaof banking vital part in a of played resources achieving the sort rolling adjustment in our na- tional " economic activity that is looked upon more and more as the prereouisite of stable a economy onerating at a high level of activity, and which in 1955 and 1956 shifted concentration on the produrbon of consumers' durable goods into concentration the on production of producers' goods. t u u 1 ^ rnn^fim^r It 7 hanks m the scheme rdlt expansion and reL^nderirne?es1art0thatSas necessary thar as the fhf vninm!Fnf ffindc t? funds fwfmi that finds its mta consumer +^3Ve a decislve oii« way credit, commercial through the mechanism of *o^4c.COmnvfr4i! v,n+u' lheif ef" reach through the banks to 4V, e s thnco ustorr making as their source for consumer credit advances. The secondary eral ?sp?clallv to in turn look rswo to b-mk credit credit influence of controls on gen- the sales finanee companies which: operate extensively with commercial bank cr-dit still ence the is more case in point. But of imoortance is the influ- of general credit controls on marginal type of bank borthat is the last to be drawn rower into a the extensive use of bank credit at a time of high economic activitv and the first to be forced out as the effectiveness of the con- trols strengthens. The pressure exerted by general credit controls on these marginal operators to a considerable degree measures their restraining influence on the total expansion of consumer instalment credit. r In t • it brief, - , although , . experience Indicates that general credit con- )■ American people. Ih. so doing, consumer instalment ?recht is recognized to be a leadin^ fnd amplifying force in eco- . rjoas n And ™a* connection, the growth consumer instalment credit „ £ ^o'nnnnnn* n in 1945 to $31,552,000,- ^ I? ihe end of 1956 gives cause to pon(5er what might be the reversG effects on the economy if an unfavorabie chan£,e in b*sinPSS influence economic consumer instalment credit Portionately to S01iai incomes a a Current Assets heavier. rience of users any 43,999,000 Receivables and Other Current Items 26,219,000 con- on obligations Lacking previous with $12,128,000 Inventories consequent because burden of servicing their existincr obligations w a s growing new Cash of pro- sumer instalment credit to take similar cfl financial ^Fcbiticn As of December 31, 1956 reduction in per- and serious V Wholly-Owned Subsidiary Companies ^cnbo/idatecl Statement condlti?ns should curtail the expansiVe ' l" CORPORATION .fluctuations and to have contributed to and intensified mf,atjonary pressures in boom penor"19 v01ce in the lowered ability for mlZ Ti* ®LC?nSUS?Cfr CrGdlt' JrJinildif g<7^~ -operate di- . however, 000 i nfrnlr!irP*!fSb- that the place nf ously, added to the convenience, comfort and efficiency of the 82,346,000 Less Current Liabilities expe- Loans, notes, mortgages payable 22,314,000 Accounts payable and accruals 16,247,000 Provision for taxes develon- on income 6,382,000 ment of this kind, it is impossible this question categori- However, as in the opinion of answer cally. 44,943,003 . „ . „ . , ^ competent observers,consumer mmen^. cre4 s,k®en a less aggravating factor, during reces?on.s th?n an Utflafaonaw- factor NET WORKING CAPITAL Securities held '*Jurln®, b00"1 Periods, there are £;ourK's 1° believe that the effects a situation might not be ?s direful as sometimes supposed support of this view, it is cited «iat the use of consumer mstalment credit does not represent exPenditures separate and apart 'rom the run-of-the-mill type of 37,403,000 investment (at cost) 12,941,000 Property, Plant and Equipment — Net 22,982,000 , as Other Assets 7,260,000 80,586,000 , Less ' Long-term indebtedness 4,282,000 Other liabilities and 3,425,000 7,707,000 heboid expenditures, but in rev substitutes for many such expenditures For example morttfa§e and related payments on domes may be regarded as an altentative to rent; outlays for a washing machine and dryer take ^be piace, to some extent, of payments to a laundry establishment; reserves NET ASSETS \ A detailed report Write 72,879,000 ** of Penn-Texas activities in 1956 •/.*_' can be found in the Annual Report. Secretary Penn-Texas Corporation, 745 Fifth Avenue, New York 22, N. Y. The Commercial and Financial Chronicle ':; who receive their from-such sources. As long as the law of the land provides vantages enjoyed by government for operation.in this manner, they power is a benefit to the economy should not be subject to criticism of the nation. They are simply for taking advantage of their of his merits made ; Thursday, April 11, 1957 . (1720) 32 Continued from page 3 ' Neither of these tremendous ad- Electricity has enjoyed very favorable consideration from the public. Its rapid expansion has been rightly whpr ncnnle in going into a muinterpreted as a healthy growth l hii<sinP« which is in effect carrying with it earnings which What nerson does when he buys support the additional investment, of cornorate stock Not The prospects for further expanronntries in the world offer sion of business at rates fair to %mternrise himself for gives son which svstem to go into citizen the right Kiitinc** join to or wnnv right. right to save this is It LA mvest +v.,;?c nf fruits of • the and to been one source— — - in greatly depend your on , ^ -f; Acting Together of millions Each individual Corn- property the tional - has a bank account protected against possible misuse of our advantage of serving areas has saved through these various as a sole supplier, means later shows up as a new Federal public power is essentool or of Much of the money he the plan, saver. or a part of a machine some- tially a minority issue—by that I America. That mean that it is espoused by a small can then start to group—well organized, it must be where in industrial tool machine or used by power money build to facilities other issued by by used insurance the are entrusted buy these securities of 50% About cost the of the company facilities comes from the sale of bonds. A bond is power the at returned be a While saver. con¬ government can operate a com- a mercial business economically. We have public just through come a election and some of the national group power are saying the is money the safest form tained through ferred stock. I litical am no po¬ analyst, around voters few a are but have I and years conservative at and will never fall for the heart social¬ pays a sale the stock of pre¬ usually lower rate of return than stock, but it is a rela¬ common tively safer investment than com¬ shares because it carries with mon it such advantages as a prior right dividends to or a prior claim on The remaining 35% is financed by the common stockholders equity. The common stock is a pure ownership certificate, and - holders the - of these Let us the same kinds of equipment and operating methods has the shares have ave for Public power utilizes same as do we. return seen that the benefits and vidual should fail, they would take the greatest loss. On the other hand, advantage ownershin ownership are are nf that that thic tvnp if .the the if. an ., . investor-owned util- power has is its abil- of pxeess equal amount Government terms ehar^es the . from individual build in ourselves for posterity a and for our greater America. 15 page . ,. . .. analyses Study—!!| ... , __ contentions including New York, California, the of at an revenues ratio of 4% to 1, this per- becomes approximately If, therefore, an investor- centage 39%. owned company were erate without The report by Mr. George Bailey," ulation by all states is a fair prosPart "I the consumer credit pect. Evaluated assumes. gross able to taxes op- study, showed the overwhelming sentiment of the industry in favor this view Its support by a Governor of the System, one most familiar with this area, is indeed with and effectively for many years. Further, the adoption of rate reg- inS less the that for gratification, reason These two factors—the evidence of passing of interest which caps the charges to the consumer—seem to to me destroy the main theoreti¬ cal argument for pic- stalment industry. presents ^he pro-selective control argu- from other uses, provided general regulation of effectiveness the controls, and state rate at the governIf I may be permitted to digress ment rate, it could reduce its rates for a moment from Governor 39%. Conversely, a public power Mills' observations to the body of project, if it were required to the study itself, there are some inmoney direct instalment credit controls. It could also be argued that in the measure up to the costs incurred teresting observations on the ques- goal of production is consumption. by the investor - owned utility, tion of the effectiveness of gen- If consumers are willing to have would have costs 64% higher. Ob- eral monetary controls on the infunds drawn into instalment credit ture which to public people some pated by such a . u . . . dissi- be requirement. Preference T rosy power would . .. , A. like ■' past the and >; serves has run some- contiols general this: tl}e quantity of bank re- Press on Clause , the in ment thing foreclosure ot participation of the are agencies are agencies agencies which pay no ways . . . don't , ^ price ises Federal care of money. its about price to the consumer. on . TT a free, , , ,, However, in the body of the study is soarle very interesting evidence which questions this, ^hat part of the studyed*^ed£y peace-time "greatest number" this icy; should trols. our good effectiveronrlusion , A nan^r that satisfies the for the greatest criterion for social pol¬ policy argue criterion against But it has not alone direct con¬ yet satisfied persistent critics, who seem to a free market only in its absence. Therefore, I am pointing thai in terms of institutional - as arrangments and laws, as well in theory, there is no case for se¬ lective controls, short of a war emergency. The Quantity and Quality of Credit iVfr- wiot awan 01 tne aan rran- g^erel1on£ofs "me economy, honor price out lw th "which SSSrf wnicn not taxes are accorded preference in purchase of a governmentturn to the savers will also in¬ open to free enterprise. Generally tbe the Federal projects are financed supported product. It is as if a crease. manufacturer were to say, "We by direct appropriations from Con¬ This statement of methods of will not trade with those who sungress, representing taxpayers' obtaining new money in our busi¬ port us but only with those who money. Many of the Federal proj¬ ness do not support us." may seem elementary to Someday I ects, when they do calculate an most of you and I have mentioned interest return on the cost, use a hope Congress will revise this ilit here to emphasize that with • • rate as low as 2V2%—a rate that logical clause. regard to all the different kinds does not In my discussion and comparicarry a return to the of securities which we have we Federal Government equal to that son of public power with our initself , which our industry has been mak- Ohio and most of the larger states, annual an of its canital investment in to 9% gunmen? whicV takef'the preference ^°vernmeni, wnicn xaKes ine preference finance ." . tatalng — ity to . live each and every one of us, to use - . and . . is the tremendous tax advantage, customers of an investor-owned Th° from receiving any part T.he Federal Power agencies pay company of the subsidies accorded public either little or no taxes. The inpower because their distributing vestor-owned utility industry pays taxes in the neighborhood of 24% ^ ,v agent is prevented from buying which public who national rededi- ,, First, there some¬ nomlc I wish to ,, to runs for No Case for Selective Controls (including, of course, Thus it can be nf also increase; if the com¬ pany's earnings increase, the re¬ W.e Federal Reseive Credit ^alue .value will adds to the taxes point out that the PrefHowever, instalment sales comN°w let us look at the advantages it has that we do not possess and erence Clause is tantamount to a panies wm always get money; , asks and thing to be done about it. It adds to the cost of government and that position we more. a initiative Continued largest share, but also to the state make no contribution to the Fedand local governments including eral Treasury. You can re-phrase the public schools. the Preference Clause without disof the company's assets should in¬ The second seeming advantage tortion bv stating that onlv those crease, the value of the shares the na¬ our Washington responsibility which has made our the assume sub¬ our American ingenuity today as cation to the philosophy of indi-^ we have used it in the past, to This requires of gross earnings; or, if we relate governlnent power on a permarisks of owning the company. If taxes to invested capital, then our nent basis. The Preference Clause the comDanv has a loss thev are taxes represent 5%% per year of any way you analyze it, seems the first to suffer. If the business Plan.t investment These tax pay- contrary to the American sense of all a Whenever little bit of a itv lies under the burden of ob It technical advantage, of. care he'immediately or viously, the apparently look at public power moment. a whether they are real. the assets of the company. - to express their views. weight and own Federal taxes). average of This no pansion of plans for public power. It is istic power programs if they be¬ security, since come acquainted with the sad rec¬ it is secured by a mortgage on the ord of government in business, and property. then are given a real opportunity About 15% of the money is ob¬ used, interest is paid on it. and in I do not believe this. everything in the world taken In investment. the government and more—keep Federal Govern¬ eral Government assumes for taxes ,that its results vindicated the ex- been have talked to many people and I be¬ lieve that the great majority of later date to simply an agreement to borrow a specific sum of money which is to are we vinced, the erroneous notion that companies, money by their policyholders to them to of the bonds companies power owned which these from comes About 60% sources. and tagonists who have, plants generating on of case to enviable the in, work withT hold today. Each of us must con- and support this economy—and by tinue to do all he can; each must that I mean every citizen of see to it that nothing he does im- .America—are the only ones who poses an extra burden on his can redirect the course we are brother. Each should carry his following. It is therefore up to us„ public power, there is no tax component worth mentioning and the interest component on the use of the tax¬ payers' money is about 2V2%. This 2V2% represents all that the Fed¬ enjoy. The admitted. This group consists of companies a hard core of public power pro- produce goods for us to 11.5% the more to trouble development that we have reached „ ., make millions of indi¬ upon so anybody gets into It is because contributions vidual fi- is can be The public, vari- of the public—and it is groups getting turning to taxpayers' million dollars. when "Congress enacts laws that start with the public. ment for way stantial contribution. lector Treasury Humphrey to say: dreamed of. long a about 2Y2 % on its investment, or $25,000 per year for the use of the ... a have We • j In our service areas and among nanced by investors, jn oider to see what the cornis in short supply. The the customer groups we serve, the power business is being strangled people are generally satisfied with bined advantages of public power our service. Our rates and our are we should note that if we take by lack of capital with which to expand and meet the need for service are supervised and regu- the tax requirements of the inveslated by the various state regula- tor-owned utility at the national power. ;; In America, practically every¬ tory bodies and wholesale rates average of 5.5% on investment one saves. Every person who buys jn interstate commerce by the °A an insurance policy, participates Federal Power Commission. Un- 6% on investment, we obtain a in a union trust fund or a retire- der their supervision, the public is requirement of taxes and return is America keep hands. ous power ment all in the past, but our future promises even greater things than our predecessors had pare Satisfied, Supervised Service we for work come this with the $55,000 per year, which goes directly to the tax col- conHnued efforts. find for example England today, electric- Thus that fu^ure of vestment year. instead of asking our government to carry our load. • ' ' / ' Our nation was born under that ' There is plenty ' strong and great. paying facility, same to together work dol¬ of, let's say, 2y2% per The Federal Government then, will figure on charging itself who are presprospects for the Qur jjere en^. development because it is going to cost the citizens money which they would rather use for something else. t^many and accomplish- technical the efforts of many u.c cuuiiawiiimij , lndustiiai against often the to the year million to no taxes, it may make a bookexpanding ' use keeping entry as to cost of its in¬ of electricity and continuing in lars a the nation what it is to day. It requires that We take every oppdr- : tunity to do things for ourselves discriminated against as against We have been turning from that customers served by public power, path, and our trend is toward a Public power customers, in all form of government under which fairness,, should assume the same our every problem is solved for burdens in their electric sched- us by the government. This is not ules as our customers assume. -as it was in the beginning, nor is Regardless of differences over it as it should be. Our present dipolicy, there is an over-riding section is measured by the size of consideration which impels us all the recently proposed budget. to put those differences aside and which prompted Secretary of the large measure a ments, credit for which is due to - .. . . ,, . is ment „pnti publicse taxes in due continuously the ^enjTh.In,S,0tw ESSrtSS where the capita development must co power . If the Federal Gov¬ invests ernment the lowest 6f historical record living that high standard of $55,000 tax collector. public only slightly more than has the of revenue Tbe spectacular growth of the ininto an an ^ rateg fQr service tQ enterprise that has enabled Amer¬ ica to develop the machines, tools and factories which have resulted in this - stands on its own feet. , Here's an interesting comment in this connection. Let us assume that free enterprise is investing a million dollars in a new utility caving into saving i facility, on which it will pay in taxes the average for the nation of 24% on annual gross revenue, both consumer and investor seem or 5V2%j>er year on plant investclear as far as we can see now. ment. This means an increase in a their citizens this Americans free will own his own account: on y Returning paper, to Governor Mills' the second point to which paper, the second pent to wmcn I would like to allude deals with 5° no clear conclusion, a pap^r iwuuiu hkc by Mr. Don Jacobs, tn Part II of his wmments onjtoe qua y and the study concludes, however, that quality of instalment credit. ■ general controls did affect the Governor Mills concludes that source of funds for finance com, use of general monetary and fiscal panies, in some cases altering the policies is the only correct way of source of funds, in other cases preserving economic stability and limiting the amount, or both ef- counteracting inflationary and defects. But - • this is one blade of flationary excesses. the of credit has in the shears; if money must be obtained elsewhere (e.g. in the long market if it is obtained at all) because of general controls, is it still not true The growth past been as- sociated not only with normal economic growth, but, as Mr. Mills notes, the spurts of credit have been associated with monetary and that the additional costs of bor- fiscal policies which created exrowing may be passed on? The cess economic liquidity. The credit following the recession of present a favorable lnvestpaid on governmental savings ^omnanies. I do not answer is in a crescendoing nega- rise following the recession 01 for our lenders since bonds and is nowhere near comimply any criticism of the people tive. Let us remember that instal- 1953-54 "had its roots in a high whether or. not they invest is parable to the return which the who run America's public power ment credit rate regulation is now degree of economic liquidity," Under the citizen would wholly their choice.. expect from invest- bodies < nor of the 20% of the established in some* 15 or 18 states, which was the result of deliberate must , . Volume 185 Number 5628 .. The Commercial and Financial Chronicle . (1721) policy. At other times, particularly 1948-50, it was less cieliberthe ate, result in this period which must we tention in the all pay at- more money managers—depends on the future. of Understanding the Monetary pre-Accord policies which shack¬ led the Federal Reserve. Mechanism I ; the of monetary nism is the income and fiscal best way of but controlling instalment credit, also of assuring that any growth factor credit, productivity, or population — will be a national — and asset not become tragedy. We the instalment credit be national a > \ that agree and can part general monetary credit outstanding. , view that wisely. the himself consumer the quantity of In the press story of the noted: "Consumer by 5-6% credit may slowly a year, more than in the recent past, but prob- ably rapidly more ers' income will than rise. consum¬ By 1965, families may be putting 13 to 14% of their spendable income into in¬ stalment in the buying, last two against as and years 11% in 7% J940."1 While for the these views industry, they are bullish are happily also good news for the economy as a whole. ■ ■: Divergence Quality Views on ... , Turning , ,io the quality of now credit, I would diverge somewhat from Mr. Mills' notes the views, in emphasis ty qua obhgations the be viewed (of boom) the in obligations, consumer tlLonLand the boom of d l also must deterioration a o ^.e have quality as of competi- excitement of a led downpayments with to exten- an of maturities. sion ing quality. Governor Mills plies that if the government imcon- trols booms via monetary and fiscal controls, the quality of credit will if look the at understand sound only and safe level. is This ■■ public duty but, as experi¬ ence teaches, the granter who ig¬ nores the question of quality"will a Continued from to response will stable of condi¬ help. course Digressing again to the study, Dr. Moore's has contribution shown how, in in past Part sions. those companies which have permitted have taken his mend the j quality terrible losses. i In you. , in . been remiss — 1 any event, it is a credit consumer Herald nation, Utopian dreams of > as selective can credit that But with us question, apart from timing, how much reliance we can, in of from response ment the evidence of >. . area as Tribune, 3-20-57, p. s. in mentals is of into which are of activity without evidenced by the availof funds to intermediaries ,abUit'y ?and credit departments £ banks is indicated. Response at consumer th «retail ™ level - we told are eaga ^ foment, is although tendency for interest charges some rjse and tor standards of credit worthiness the to stiffen /. period covered board's study, demand by the forces, the report concludes, were apparently strong how it is to be .■ are now formation ology . credit involve a very real and serious intervention in private sumer dation of data and greater administrative flexi¬ bility in tax and expenditure pol¬ icy might be desirable, the fact is levels of disposable and come tutional in¬ by subjective and insti¬ factors less or personal involved than it is obscured in ality with the will that the character in most vendors are to on pass rise in business, likely to be reluctant to costs Selective American the purchaser on ercise all of over consumers' personal the choices. consumption to ex¬ If were broadly based income tax. e?tent, however, that of are affected while others To the some types significantly are not, di- personal re¬ intimate most own investment is not at the moment necessary judgment. in have bent for a It would be desir¬ less you authority be left with the Congress, to be delegated only when, as, and if the need seriously arises. Congress, under message my able its be if that this Constitutional authority, expected—and trusted—to the need for may sonal intervention in Stein much to your There that method of a on pective Stein Invest¬ not (Special to The Financial Chronicle) Exchange. sell with be¬ The Security Analysts of San age, There is obtaining confidence a a a so eventually acquire man's investment list (You don't by way business by even SEC, and I I was it.) craft and chemical industries. These specifications would include but not be limited elevated to resistance temperatures and abrasion, close size tolerances and dielectric that strengths. ceramic alumina, magnesia bodies He zirconia, are stated composed titania being of and utilized by the aircraft industry in increasing amounts and that considerable experimentation ducted the on had been con¬ of ceramic use sur¬ faces in missile and aircraft struc¬ ture. Ceramics and "cermets," shapes formed by sintering pow¬ dered metals providing a increasing and with ceramics, are means by which the temperature, abrasion shock requirements thermal can be met. Carl H. Pforzheimer H. Carl obtaining in¬ picking up a telephone and making a "hot pitch" concerning some specula¬ tive good thing, that kind of selling never was a part of the in¬ firms Lynch, Pierce, Fenner & Beane, Superior Avenue, Northeast. 216 is Francisco in as reputable back in it was Pforzheim er April away following a 4 the at passed of age 78 short illness. Mr. Pforzheimer, a well-known bibliophile and civic leader, was partner of Carl H. Pforz¬ senior heimer & Co. of New York. investment the can '20s pre- back it up because there and saw it and F. S. Yantis Adds I (Special to The Financial Chronicle) CHICAGO, Seidell with has F. S. 111. — Frederick become Yantis & M. associated Co., Incor¬ porated, members of the Midwest Stock Exchange. prac¬ N. Merrill industry increasingly important an factor in the atomic and electronic a this ticed (Special to The Financial Chf.i mcle) ceramics Likewise can you vestment With Merrill Lynch now success favorable basis at plans for the future. CLEVELAND, Ohio — Ronald Dimengo has joined the staff of Saunders, Stiver & Co., Terminal Tower Building, members of the ceramics procedure knowledge of his fam¬ ily obligations, his business needs, his likes and dislikes, and his Joins Saunders, Stiver is a customer. only but also Jackson a per¬ individuals going very a securities definite a bring you prospecting for clients. the staff of Ervin E. Company, 1414 Broadway. Importance of of the future is that Ohio—James as will method of CLEVELAND, liking and time that is suitable to your pros¬ SACRAMENTO, Calif.—Gerald- Stock the un¬ salesman. ine L, Epperson has been added to Midwest many not find your but to carry urge helpfulness of more handling account, have the terviews (Special to The Financial Chronicle) ment in service to there is With Ervin investment, anal¬ might also be you will you act private decisions be clear. the other J" the on successful controls any they transfer from the market initiate to than of fnoney. controls, person¬ and the invoke financing ing is, moreover, the vital driving force strong power ysis and by the Since sell¬ The to The delegation of standby author¬ ity to an administrative agency to credit you alpha¬ . atomic, electronic, aircraft and coming which adjusting taxes to further the objectives of the Employment Act. instalment cases chemical industries is predicted by Gladding, McBean & Co. Pres. in¬ level, all this in¬ formation will help you only to the most modest degree. You may deciding to buy rather than later. material Unless you are a as influenced by your able you to sell with confidence. that visible in more in sound foun¬ a eventually be able to with assurance, will en¬ and confidential ables is rather their them. should analyze argued Congress is quite capable selling- The ABC's most Increased importance of knowledge. to Relatively Insensitive to relationship with lationships statistics covering that available clients than y.ou has demonstrated its capacity act in such important matters in¬ had you about career. in out the Ceramics Noted obtain all the in¬ vestor other affairs. sometimes in then were told by C. W. techniques, underwriting Planje, President of Gladding, procedure, money and credit, the McBean & Co., the West's largest underlying factors which create' ceramics firm. Mr. Planje pointed the changes in the volume of out that ceramic products are be¬ business in our economy, valua¬ ing manufactured and developed tion of securities, timing of pur¬ to meet the more exacting re¬ chases and sales, and all the host quirements of the electronic, air¬ of Direct government controls upon the terms and conditions of con¬ is a but have carve niche twice as right don't trading representatives—that is to say, the itself. ' it think Greater The power that will come to you when you understand investment analysis, undertaken, it should be done only upon the authority of the people's While to training progressive investment make proper you bet yourself. necessary in order to establish the and if as sales¬ the in will have to work out the men nothing more helpful in obtaining the confidence which is con¬ counsellor are world there proficient and little own invest¬ you But vestment are young more more independence your is and the business. "■ learn teach yourself you can then to day ' about every advisor the desire a regarding the method¬ of courses There used. Congress ' better taking with the counsel them to intervention in pri¬ personal affairs is to be and have you man, Business for as to dominate actual developments and consequently little of the response is so credit a member investment banking firms and dealer organizations I would interferences when If -guidance ■•>.•'( • more as those fortunate courses recognizably objection¬ determine industrious pursuit of busi¬ ness. Individualists For to should by their the. practiced by security salesmen when they a how had.-Yet they make up for their lack of skill in many instances experienced sales individual firm, or error wonder people who have real training in investment salesmanship many of them have securities may new of an an This Is If selective noted, were from to sim¬ business with the meagre amount ' inl'la- as ness funda¬ part still to into the Mutual Fund busi¬ have been able to do so much gone enter this business. trols is desirable, the Congress , vate ]evel," free If authority for selective the sometimes an who direct with I of the itself, most able. (3) longs. some how to become by trial and general be delayed and diffused, we are better off to stay with the uncertainties than to rush and You when meat of the proposition give it straight, concisely emphasis where it be¬ ments, and politically it credit consumer also investment.: But of director in ques¬ a deal bodies; analysis and how with ING out in the investment market system of free our monetary controls to tion " very security by doing. talk learn prospecting, of building customer confidence, of servicing accounts, and of SELL¬ either distortion This being the case, and in spite the evidence that the response of the on securities." are for the most matter of obtaining some individual choices. toward tevels contrary to selling teresting ways and means of stability but have to allocate resources; changes in credit conditions and, in particular, to general monetary restraint, is sufficient either in de¬ gree or in timing to facilitate a national economic policy directed sustained high and rising in You an offering of an investment where you boil it down to the in¬ educa¬ published of which economy, relying gen¬ the market mechanism erally ion this whole a might of artificial would enterprise 'di).ect to material to plify Investment Bankers' Associa¬ data ,/*..; ' tionable economic effects in study on "whether the of the consumer instal¬ credit it listen. and of learn you when and you limited amount a "technique economic processes. To that extent or dare, put in general controls for reaching the specific field at all. Unfortunately, but perhaps understandably, the consumer credit study just completed apparently leaves this most important ques¬ tion largely unanswered. No ex¬ act general conclusion, we are told (Part I, Volume I, p. 285), can be drawn our learn Unfortunately, governing /.. ' ., cost Then inquire if some abide by the rules and regulations of the affect economic the at the and How! write or only tional • ... regulation cases leaves column me, tion offers material that deals with the acquisition of knowledge that is needed if a salesman is to • . this ask I do not know of any recent work on this subject and there has been The ear¬ lier dreamers. credit controls, consumption y. most to often rity salesmanship. industry—the an . . in. the DUTTON good book^they can read that explains the art of secu¬ raising its living standards beyond Ygtti,'* 't in subject in there is credit rect-controls are rather more like controls cannot be expected to act a highly selective and discrimina¬ with the same promptness and dis- tory System of excises. It is pos¬ patch in restraining the growth of sible, therefore, that consumer this accurately for the industry, People instalment credit industry—which v. government, control com¬ Perhaps build to JOHN Know 15 in- equally affected by any given shift .in consumer credit terms, one not mjght regard the e£fec(s Qf sound terms-— control as similar to that of a workers have defining quality more to work research i dustry deterioration By is "general (p. 12) that II depres- mechanism / + page f now which complex a nature Consumer Credit and Government in the long run. tions, such its Understanding courses more matic appreciate workings. nqcc costs Keeping sound terms is a mat¬ of will, more than an auto¬ Securities Salesman's Corner - inevitably suffer penalizing losses ter ef¬ S- of not na¬ cannot has changed the face of the the Consumer credit is so intimately quality a little differently. If the related to consumer demand,-and government keeps its part of the over the years has proven so genbargain and manages the quantity erally profitable to lenders, that it of..credit relatively insensitive forces, it becomes the industry's To tightened monetary and credit responsibility to see that the qua!- conditions. After all, consumer de¬ ity of credit is continued on a rnand for new and popular dur¬ problem and its eration we automatically not deteriorate, ^the period. would We their the impossible either, especially by people who deal in money daily, and who have been astute enough in the space of one gen¬ citizens as managers J , Governor Mills is a kindly man. I know that from personal contact. I duties our rc'\q jn Thus the periods of credit growth have also been periods of declin- of by not Obviously, the success Federal Reserve — our ~ lowering and of mone- Some response at the "wholesale investigation has identified same periods . . 4 ,Y' the of special . and tw/orV,ngc of monetary policy in credit study, some insight on the likely growth of instalment credit was grow general corporate as vation If I may again digress to tjie study, several papers in it, notably Mr. Tobin's in Part II and others, have substantiated our regulates be remiss in and scheme. •credit structure, we have little to fear from the actual size of instal- businesses. stand tary controls, the type we prefer, an(* other facets of our problems, ft seems to me that we as an industry, or as companies, would should as We do not know, as Mr. Mills implies, just how high instalment credit can rise, but so long as it \is in harmony with our whole ment between did not strive to quantity of effectively controlled, of the relation mecha- not only problems portant part of his commentary, not easy, or to be gained over¬ He has shown us very clearly the night. But at the same time it is wholeheartedly through agree control appreciation and fectively support the Federal Pteserve System unless we under¬ The final point I would like to short, credit fluctuation is in large measure a result of, and-r?*se ^es» strictly speaking, outnot a cause of, changes in income s*de the scope of Mr. Mills' paper, stemming from more powerful But I think it is the most imthat intelligent views tion's In forces. 33 lived Hooper-Kimball Adds (Special to The Financial Chronicle) BOSTON, Mass.—Howard W. Lotz is now with Hooper-Kimball, Inc., 59 Congress Street. The Commercial and Financial Chronicle 34 classic and in¬ vestment timing - has been - the softwood plywood industry. From the end of 1954, when new hous¬ ing starts were running at an an¬ nual rate of 1,400,000 units, to the akurtMthem st ississs: of the 1954 Revenue Act. sr.; Thursday, April 11,. 1.957 , a considerable population, but the capacity and efficiency of United has Bloc edge on us in States industry nomic edge. hold that edge. gives us a big ecoIt behooves us to I It is fashionable, and sometimes useful, to speak of plant and equipment expenditures in terms of national totals, but in fact these totals are made up of a great many tained earnings and new security issues are coming to play a reduced part in financing total expenditures for plant and equipment, granted that both are still important. There is considerable informed opinion that expects retained earnings in 1957 to be less than in 1956. The continuing rise in depreciation accruals, howeyer, is likely to neutralize this decline, so that the total flow of internal funds in 1957 is likely to remain at least at the 1956 level, and product new recent these separate where else. Each of expenditures is based on a reasonable expectation of achieving profit. Take away the expectaprofit and most of the ex- tion of boom in plant and expenditures in 1955 1956, the expectation of profwas apparently very good, the During equipment and its judged both in terms of the willingness of companies to invest funds and of stock market behavior in the cent been period. same In re- months, however, there has growing concern over nar- rowing profit margins in a number of industries, and a number of straws in the wind indicate that the resulted is topping out. this from have on interest when There is granted a reversal in boom, sure on terest five West for rose, It a?d ^QUipment l"^t about the funds they can; arguments, evidence and '11 *° some reaaon the two approaches what quate 111 be fun(js some- 1957 and 1.958. that to the the first flow support of flow of an- internal are a car¬ normal in carried including schedule, on produce to are difficult to find policy to follow in such Customers are a clearly keen enough competi¬ out the least effi¬ weed competitive and standards service. At the of quality time, blind, uninformed expansion that results in profitless production and a disorderly mar ket is of last¬ ing advantage to no one., A course that is tempered with judgment and is same with earnings capital expen- urgently needed of excesses when capacity in annual accruals for de- to ond preciation. preciation In business 1946 charges in the National Product accounts over ran $10 billion; in 1956 they about $30 billion. de- Gross just dicates that production when or new total for spurt. Later grams are expansion as not nual flow capital of of funds available expenditures and for other . and be an equipment the talking about should excess ca- pacity; he is supposed to believe that human wants are insatiable, are generally, and the necessity to market demand costs of plant and equipment that particular has sarily insatiable at all at made depreciation accruals inadequate to replace original investments as they wear out has ^resulted in much larger accruals on the great volume of new plant able price. product A is good not a for a does to seem the tween be optimistic and the gloomier need-for-expansion approach. The funds of capital a a never great investment in 1956. but sideways movement for year or two wouH be enough bring investment back in line to example, with are finding their markets quite satiable during the cur- was broad ducers of lumber and plywood, for and equipment installed at the rent slump in residential buildhigher price levels of recent years, ing. The proper timing of investThis has been helped along by the ment in plant and equipment is rapid amortization certificates of still most important. of neces- pro- and the 1956 to ■ V in¬ demand business for for annual bv already average, any summarize statements outlook the a offsetting the of Summary Three A the starting rate, or to a decline spending years. 1957 1956. was equipment prewar fur¬ plant and equipment. First, plant and equipment expenditures for 1957 as whole will nrobably a be than higher whole, and new a for 1956 as a all-time record. Second, the direction of plant and equipment spending will probably turn down, so that 1957 will end early in 1957. its below quarterly highest rate. Quar¬ . Continued from page 4 - ■ 1 The State of Trade and prospects for depreciation earnings. Such a sideways move would nrobably be enough to take the pressure off and retained financial markets. '" The need-for-expansion ap¬ with the usual seasonal pattern, Dun ance Industry & Bradstreet, Inc., re¬ ports. The number of new charters issued last month amounted to 12,075, a decline of 17% from January's all-time peak of 14,632. Compared with a year ago, there were about 3% fewer new incorporations this February. • • ... 1 . : •1 r - ; number of new in¬ corporations for the first two months of the year reached 26,707, a record level, surpassing the year-ago high of 25,866 by 3%. This year's two-month total was 13% higher than the 23,560 in¬ corporations recorded in the first two months of postwar 1946. Notwithstanding , Steel February's decline, the Output Set to Yield 91.0% of Capacity This Week Prices of metalworking industrial products will edge upward 4% to 5% in the second half, "Steel" magazine reported on Mon¬ ,r The metalworking weekly said that boosts will severe and more sporadic than they were in day of this week. be common 1956. but less ... ... ^ '• . ' " ■ , pointed out that component and equipment manufacturers pretty much dependent upon what steel aoes. When Sveel goes It / are up, so will their prices. A $5 to $6 a ton rise in the base price of steel is expected around midyear.- Scheduled to the • wage-increases add price upsurge, it stated. ■ " price hike will be makers of components, such as castings, stampings, gears, fasteners and electrical equipment .•/ ""•• t; 1". " ■ \ ^ -; Metalworking equipment prices will fluctuate less than those of components during the remainder of 1957.'Makers have large inventories of steel and can absorb costs better. Look for delayed pressure for a First to feel the steel • • equipment price rises in early 1958, • The publication declared that labor expenses which along with soaring costs of coal, coke and pig iron are causing the steel affect most firms' pricing outlook for the rest of the year. flow-of- L funds approach profit- many products and new processes, plus expenditures for replacement alone that will exceed total plant spend the as a Finally, after one to two years of terly survey estimates by the SEC, a slower pace of expansion an¬ apri t*w Department of Commerce other rise is likely to begin, carrv^indicate a continuation of the rise v« ntually to new peak levels. inconsistency developing be¬ enough to support the boom levels the also 6.5% a even period of some decline in production and income, j A larger - population, higher living standards and larger markets do lie ahead of us. as do opportunities in new regional markets, new Commerce- indicates ther increase some total, in through corpo¬ to in of beginning of 1957 later increase "ef¬ still rise the tim¬ plans is getting equipment expenditures sec¬ capital* expenditures at about re¬ flow same of expansion careful look.' For another, com¬ panies which plan to borrow to fi¬ this is levelling-out of capital expenditures through 1957 and But regardless of human wants in The of tantamount the business purposes, and the growth continues. than Inasmuch, above We have been through the Nonetheless, economist a pub¬ equipment in more survey rate that planning Department crease. long plunge. The base of replace¬ ment spending for worn and ob¬ I roper riming- Probably ing indicates in the showed were 11%» later pro¬ completed and between production require new plant and equipment spending. . ; 10 years, an increase of $20 billion in the anspan circumstances „ and decline peak a plant and about orders rise past ficiency as an offset to steadilyrising wage rates will continue to were thing, managements in a num¬ industries are beginning to, that capaicty is expanding faster than markets, and quarter of"1956. rations about 85% of capacity, new orders for plant and equipment generally pricing practices, y the short such feel Third, McGraw-Hill's post-elec¬ survey of intended capital industrial carries with it the threat of de¬ organized markets and cut-throat This represents, in under of ? ber of tion Breathing Spell Ahead? capacity widens, orders for plant pacity Board thaC this and expenditures Returning to the general' out¬ look, past statistical evidence in¬ a - evidence cataclysmic drop ahead. There higher was "Newsweek" occurred from - crease peak in busi¬ serious threaten spread greatly, and supply of inis likely to continue. the other story if excess capacity develops and operations fall below capital of busi- a little develop. desirable rate of capacity. For solete plant and eouinment is far consumption allowances one thing, it is common for profit higher than in past- slumps. New ness (primarily depreciation). The margins to fall with the operating products resulting from " accele¬ outstanding feature of this in- rate, so that further investment rated research and development ternal flow of funds in the past J°ses some of its attractiveness will require new plants for their 10 years, since the end of World with the prospect of lower earnproduction. Growing geographic War II, has been the rapid in- ings. For another, additional ca- areas present new opportunities, retained one is the best possible information, duced. combines This service. there ment, tren d. by tions, SEC a that this rise in argument, funds Ahead demand for plant and equip¬ ness capital' goods orders peak in mid-1956, since followed a mild Conference lished While it is reasonable to expect first situation in the past year or is the controlling factor, there has business managements to reinvest two, and we may well he coming been a striking parallel for more internal funds in new plant and to the breathing spell that char¬ than a quarter of a century be- equipment when capacity in their acteristically follows. tween expenditures for construe- industries is inadequate to meet This does not necessarily mean tion and equipment and the in- market demands, it is quite anat all that we are in for a: head¬ internal Drop around we are than that the supply of available funds ternal flow of business funds. This economic peak late in 1956 that The ^itures has increased ternal funds Regarding tight logical a Nonetheless, they are adeto demonstrate the main points: think that may inconsistent aiysis There both. permit Show Meanwhile, production of capital goods ^in¬ creased sharply to an "apparent exactly the same Gf businesses, nor do they quite the right activities on ejther the income or expenditure to weeks growti projects most to expendi- on Studies most their downward cient producers and maintain high cover sjc{e is tion group statistical some supporting and cover years' paperboard entitled to probably funds tures don't the that the backlog 'of uncommitted For example; funds to support future orders has expansions declined, at, least for,the 1,000 three years in insula¬ largest manufacturing. corpora¬ Coast proper slightly lower rates. jnternal the other that businesses buy plant and equipment only if they need it, and the buying slacks off when temporary excess capacity develops. There is some merit in both -I Although the evidence indicates that have and And if all the announced situation. , says plant and equipment. Leading leading growth in West Coast markets. Approaches _ V;.. •;j,; / AA Cataclysmic are some reasons for expecting greater caution and hesitancy. For projects, they will con¬ siderably exceed the most opti¬ mistic projections of near-term plenty of waiting although than second goods (i.e., producers' equipment) orders and production from. a Canadian financial markets and kiare No de¬ announced eight pulp and through levelling off or some the capital expendi- rates> to markets. li is both easy and dapgerous to press this broad statistical cornThere are two approaches to apparison too far. For one thing, all praising the demand of business 0f us know of companies that diffor plant and equipment that have fer from the general trend, either proved useful m the past, and it g0jng heavily into debt or by may be well to see what they accumulating cash. Hence we imply for 1957. Oversimplifying know that the total statistics reboth of them enough to get at the fiect offsetting errors that may central idea, one says that busi110f aiwayS sfay offsetting. For nesses generally will invest in another, the available statistics on Two all i the a c]aimants the in rale but ,the less any ti;A tion board and hardboard continued rise in internal funds may ease the presjure is The main general. ried out, they will equal cap- also quarter, total direct evi¬ dence is the comparision of capital are for the next of the internal rates the products industries, if for speculation that, room subsiding of Probably other, examples of '.'too much too soon" in the forest smaller scale in 1953, a become There enough, much the same thing happened What ? and shut¬ work reduced or suffering industry. Interestingly business. of funds of excess jtaj expenditures over 1957 projected that As you can disappeared, second nance expansions may well find incoming dMersb?This sug-^ prudence in delay if they suspect that an easing of tight gests that production and ship¬ money and lays of hope are the fact that ply¬ ments of capital goods will prob¬ high interest rates is in the offing. wood is still a growth industry in ably decline from their late-1956 Basically, however, the funds terms of increasing usage, and the- peak to whatever level the com¬ available from depreciation ac¬ prospect of an eventual upturn in bination of backlogs' and incoming cruals and retained earnings will residential building, which will ofders will support. '' continue to increase, providing a bring long-wanted relief to -the Next, information compiled by rising base for future plant and downs heavy pressure for investment funds and for bank loans in 1956 capital goods boom of the past two years considerable portion A faster. mand lor imagine, the profits of many operators tures, the booming investment of jate 1955 and 1956 rose even penditures will disappear, too, as "the 1930's well demonstrated. levelling-off in production, some shows expendi- equipment quarter., A ' the expected with capacity stilFincreasing, sug¬ gests reached years and the recent sult, ternal business funds available for plant off at the boom levels of 1956. The away, well this great increase in in the flow of in- .Despite some- 910,000, thousand square feet. Rising Internal Funds plant there, process or of unfilled order files melted and the price of the mpstquoted plywood dropped from a peak of $87 to a low of $67 per probably higher, bits and pieces—a new ma- chine tool here, a new both re¬ in depreciation accruals, which both production capacity and productivity are of great long-range importance is the relative economic strength of the United States and the Communist Bloc. The Communist capacity to pro¬ duce Douglas Fir plywood has been increased by more than 40%, and actual production has been mcreased by 25%. As a direct re¬ rate As a result of this marked rise ' substance. f Still another area in into of poor present, with housing starts down more than ohe-third to an annual give will that equipment example unfortunate Equipment Outlook Plant and a . proach, however, suggests some¬ thing more than a mere levelling- in the West, a Here 1Continued from first page a . A1722) j year year - hike, beat the midsteel price increase, demand for steel the remainder of the should be about in line with supply. The reasons are that It said that except for a little flurry of buying to consumers see no need to build large inventories dustry has expanded its capacity. The - - • •• - and the steel in— : publication said that most consumers are enjoying quick Products that have continued in tight supply, deliveries of steel. heavy plates and stiuctural shapes, show signs need considerable lead time for delivery. The second quarter pace this The of easing but still began with the steel industry at its slowest but it still was above 90% of capacity. easing in steel production continues to push year, down the price of steel scrap. In the week ended April 3, "Steel's" price composite on steelmaking scrap was $45 a gross ton, a decline of $2.67 from that of the preceding week. A year ago, the com- Volume 185 Number 5628 The Commercial and Financial Chronicle (1723) posite $54.17. was The publication's composite sieel remained at $139.71 a net ton. ; The American operating making rate Iron of capacity steel for Steel and Institute the entire 90.6% The is of capacity, and industry's based on ingot annual For the like production rate week month a tons. A year for the rate ago the ago an 8, that the the average weeks as of Jan. of and ago. in 1957 1, 1957. • 93.8% and proweekly production some The placed at 2,483,000 tons or 100.9%. The operating rate is not comparable because capacity is higher than capacity in 1956. The percentage figures for 1956 are based on an annual capacity of 128,363,090 tons as of Jan. 1, 1956. 1 to 4 ' - t -J , American Railroads reports. Output Showed Improvement in « Automotive output for the latest week ended April 5, 1957, to "Ward's Automotive Reports," moved forward the Last week compared the with the and an increase of 3,982 units output, states "Ward's." , week. 132,532 The oast that of and Last 24,308 a week's year 24.308 and assembled. were ■1 was placed at 8,835 oars and 1,791 previous week Dominion plants built' 9,484 cars and trucks, and for the comparable 1956 week, 11,114 cars and 2,222 trucks. I ■' •: r:V-'*v V ' •TT:^y: Business Commercial Failures and failures to fell above the 217 . a year ago and the 211 in 1955. week Failures mained dip to 27 from 43 a week but agq, above they re- V Fewer failures occurred in all industry and trade groups, with .from 55. 111 from 141 and _ . slightly. week a '• - . of a eggs. Lower in of below volume last of week last raw foodstuffs and the sum in meats . Mountain —5 bookings in 8% total of the price psr pound of use and iU chief function general Commodity Price Index New Low for The sag. in commodity the Dun & Bradstreet - prices to daily Falling to another low new wholesale reflected ~ in . some 2% like 23, 1957, an March of Rico bonds of 2% volume in a decline in , The bonds of each issue will be secured by a first pledge of annual contributions unconditionally pay¬ under an Annual Contribu¬ tions Contract between the Public Administration and public agency issuing bonds. to increase payable fur¬ dra¬ were period below period last increase a York a ended year ago, a In year. the week's sales According to the Federal was a the in to bonds when due. States Housing Act amended, solemnly of the United the Interest states, /V the bonds is income exempt taxes. The legal for savings banks are New the on Federal bonds in York and except that Puerto Rico certain the other bonds Agency of not investments for trust fundte legal Proceeds are used from by the bonds the local will agencies to repay advances made bv the PHA to retire or temporary loans from others than the PHA] and the re¬ will be used to meet the costs of the housing projects.* mainder The offering Merrill includes ptoud Lynch. Pierce, Fenner — & Union Se¬ curities & Co.: F. Smithers & Co.; Ira Haunt fr Co.; National State Bank, Newark. With Kostman, Inc. (Special to The Financial, Chronicle) LOS ANGELES, Calif.—Berni Singer is now with Kostman, Inc., 215 West Seventh Street. past ago. week rose Easter lines wear volume, and Joins Marache Co. acces- according to Reserve Board's index, department • v- f (Special to The Financial Chronicle) LOS ANGELES, Webb is now with f'emyre Calif. — G. B. Marache. Dof- & Co., 634 South Spring Street. Merr;ll Lynch Adds (Special to The Financial Chronicle) above that of the corresponding LOS 1956. G. ANGELES, Calif.—Milton Borcherding has become affili¬ with ated Form Cortlandt Iny. Adams Cortlandt Investing Corporation been formed with offices at ( 135 Adams curities Melvin Cantor is 3201 principal in the & Merrill Beane, Lynch, 523 Pierce, West Sixth Street. Special to The Financial Chronicle) NEWPORT Broadway, New York City to engage in a securities business. a Fenner Opens Office I has is BEACH, Cal.—Jack now engaging in business West from Joins F. I. du Pont se¬ a offices (Special to The Financial Chronicle) at CHICAGO, 111.—Charles H. Ful¬ Coast Highway. firm. ler has joined the staff of Francis Herbert W. formed the nayment of the an¬ contributions bv the Public from pre¬ City for the weekly period ended March rise of 3% the on United nual For the four weeks ending March 30, 1957 a loss of 1% For the period of Jan. 1, 1957 to March 30, 1957 recorded to¬ of 'Housing Administration. registered. index which funds public agency will be suf¬ ficient to pay the principal and reported. 30, 1957 declined 6% below that of the like period of last year. In the preceding week, March 23, 1957, an increase of 15% was re¬ ported. other I. the year amount an Beane: Eastman Dillon decrease of 4% was 1957, no change City in local un¬ boosted whole¬ 1% of the the contributions will be with States observers. New York The in New York State. sets the millinery, men's, women's and children's America in from their date at 104% and 1937, as pledges the faith ac¬ yield a interest, and thereafter at decreasing prices. of were of scaled from are a accrued be 2% to 30> 1957, New inclusive. dollar price of par. V; bonds will be callable 10 to years The For the period Jan. 1, 1957 to March 30, above that of 1956. trade 1992, at prices to yield from 2.95%, while the Puerto to interest television Western markets the SPRINGFIELD, -V, V commodity -price index. far, the index reached for the year so trading kinds —1; East South Central and West Mid America In v. Formed Scores Fresh 1957 was other pick-up in sales trade 6% from March tended period is to show the general trend of food prices at the \Vholesale level. Wholesale the year. retail was to was 100.9299 for a 3% coupon. The St. Louis bonds are being - higher wer^ wheat, rye, beef, lard, cocoa price were milk, flour, corn, oats, barley, The index represents , moderate a four weeks ended store sales in was bams, butter, cottonseed oil, tea, steers, hogs and lambs. 31 weeks, Spring weather year ago. * • recent upholstered merchandise sold well in was — bid •• trade the Commodities quoted and some major appliances and dollar week, as sories The wholesale food price index, compiled byv Dun & Bradstreet, Inc., fell slightly to $6.17 on April 3 from the 1957 high of $6.22 of the preceding week. This was 3.5% higher'than the $5.96 . and Retail such - Five regions had more casualties than in the similar while four regions had tolls below the 1956 level. Ago in 5% to 10% above the comparable period year ago, Wholesale Food Price Index Declined Somewhat But Was 3.5% Above Year . in as indicated was V- Seven of the nine major geographic regions reported declines the week. The toll in the Pacific States 'dropped to 52 from 81, in the Middle Atlantic to 79 from 100 and in the East North Central to 29 from 4ft. Milder decreases occurred in four other areas, while New England and East South Central failures rose total recorded. during * of 1957, decreased For the dips prevailed in wholesale trade, construction and commercial service. However, retail and service casualties continued above the similar 1956 level and wholesaling held even. Only manufacturing and construction failures dipped below a year ago. and issues reoffered gether sluggishness promotions There Wednesday ceding manufacturing to 37 Milder were sale volume in woolens the past week and prices were firm. Department store sales on a country-wide basis as taken from the Federal Reserve Board's index for the week ended March 30, j to stores. Increased failing retailing toll down large as 26 South Central —4 to 0 and Pacific Coast —11 to —7%. . the March well. so Atlantic the comparable 1956 total of 25. Twenty-three of businesses had liabilities in excess of $100,000, as against 27 last week. \ the through season & Bradstreet, Inc. Regional esti¬ mates varied from the comparable 1956 levels by the following percentages: New England —9 to —5; Middie Atlantic and West North Central —7 to —3; East North Central —6 to —2; South ^" .V. a fare on involving liabilities of $5,000 or more declined to in the previous week, but exceeded slightly the 192 of this size last year. Among small failures with liabilities under was I The according to estimates by Dun 22% were 247 $5,000, there sales two won 1958 1, local the and-Puerto For the St. Louis bonds the group bid 100.219 for a 2%% coupon, i companied by an upsurge last week in. consumer spending. With the 1957 Easter still three weeks ahead of us total retail volume The Casualties 204 from - for changed, still running well less numerous than in the comparable week of pre-war 1939 when 295 occurred. • Easter Purchases preceding week, Dun & Bradstreet, IntL, reported. Declining for the second consecutive week, the toll was the lowest since the first week in January, but it remained • \ v-';; v peries, floor coverings and linens. 23^1 in the ended April 4 from 290 in the ; June. print cloths increased. But volume in cloths remained slow. Both outdoor and Decline to last •%< /; exports states and for the Puerto Rico bonds the depress hog since gray niture " ■V':':v.-: v":"; Continue industrial • group June upward movement in slackened considerably, only moderately below that of last year, the 1956 p re-Easter week. Women shoppers were interested in Spring coats, suits and dresses, but fashion accessories and men's clothing did npt In the : levels at 10 agencies Aug. 1, 1958 to 1996, inclusive, and $10,035,000 of Puerto Rico Hous¬ ing Authority Bonds, maturing- was ' 1,955 ' cotton . Canadian output last week trucks. a 5 J Trade Volume Spurred in Latest Week by Easter Promotions and Spring Weather ago. The Housing car trucks lowest sold April were $17,375,000 of St. Louis, Missouri, Housing Authority Bonds, due the trading in five located wheat flours, but flour A noticeable advance in cocoa prices ' cotton which bidding on local public six able in output rose above that of the previous week by 2,299 cars, while truck output advanced by 1,683 vehicles dur¬ ing the week. In the corresponding week last year 133,223 cars Bonds Rico. change in prices. year ago. cotton in the United week ity by for soft sugar Contrasting with the 156,694 units, or preceding week's the with was bidder for $27,410,000 of $36,135,000 New Housing Author¬ exports last week were estimated at 248,000 bales, compared with 203,000 bales in the previous week and 74,000 bales trucks amounted to above contrasting at 5,516,000 bales, about five times corresponding period of last year. cars, week's Last week the agency reported there were 24,162 trucks made States. This compared with 22,479 in the previous , , r estimated an previous underwriting syndicate which a industry assembled in wheat, largely from While along at the Total cars orders slow. was resulted little was estimated 130,233 scattered were week .Sv'' production total of in Cotton according past week. occurred ago and are the high the on Cotton futures prices gained slightly the past week. Active futures contracts on the New York Cotton Exchange closed from 5 cents to $1.80 a bale higher than last week, with the best gains registered for the more distant months, reflecting the expectation that the 1957 loan rate may be above the previously announced guaranteed minimum for the coming season. responding week in 1955. .. week a City Bank of Halsey, Stuart & joint managers of an York Inc. competitive futures year ago. the' week ended March 30, 1957, totaled 694,922 decline of 30,046 cars, or 4.1% under the* eorresnonding 1956 week, but an increase of 40,161 cars, or 6.1% above the cor¬ The Latest Week Co, coming week helped to prices, which Trading in steers and lambs was generally slow, with prices off slightly. While lard futures prices advanced slightly, buying was restricted by weakness in vegetable oils. Lard stocks at the end of February were at 112,000,000 pounds, compared with 210,000,000 pounds a a U. S. Automotive grain markets. trailed Loadings for cars, in Heavy hog receipts continued to ! * there } revenue of past foreign • freight for the week ended March 30, 1957, advanced by 9,089 cars or 1.3% above the preceding week, Association The First National New prices, although cash prices buying generally the - the with There Car Loadings Rose 1.3% Above Prior Week But Were -4.1% Below Like 1956 Period v Loadings of City and Halsey, Stuart Group Offer New Housing Bds. that Yugoslavia will be in the market for 11,090,000 bushels of red wheat in the slight gain in purchases of soybeans. 1,000,000 kwh. below that 847,000,000 kwh. or 7.8% above 2,060,000,000 kwh. over the week ' Firs) National as news 15,000,000 pared The past week's output decreased 1955. commodities Chicago Board of Trade dropped off noticeably last week. Average daily purchases of grain and soybean futures fell to 37,000,000 bushels, compared with 50,000,000 a week earlier and about 56,000,000 bushels in the fourday week a year ago. The largest decline in trading volume com¬ of the previous week; it increased the comparable 1956 week and April 9, a grains and textiles. Volume Electric Output Eased Further the Past Week ended diverse strengthen red wheat prices. The amount of electric energy distributed by the electric light and power industry for the week ended Saturday, April 6, 1957, was estimated at 11,693,000,000 kwh., according to the Edison Elec¬ tric Institute, This represented a slight decline Below the preced¬ ing week. , with 289.10 compares ago. While grain prices moved somewhat erratically, they averaged higher than a week ago. Tne improvement in the Winter wheat crop prospects, due to continued moisture in the drier areas, re¬ sulted in a decline in wheat futures was y such year remained firm. was actual for a flour, potatoes, scrap, leather and rubber dropped below the prior week's levels, contrasting with the upswing in the prices for cocoa, tin compared the prices April 1; this on steel equiv¬ week a (1930-1932 = 100) earlier and 288.71 The steel- 1957, as (revised) capacity of 133,459,150 tons * duction 2,401,000 April of 287.67 week . announced castings, 2,319,000 tons prices of | . having 96.1% industry will be the week beginning to 2,328,000 tons of ingot and steel for with " companies, 91.0% of capacity for alent base on 35 Investors with officers Sunshine St. E. S. at Mo.—Mid has 1828 Broaddus principal erf the firm. been East is a I. Briggs du Salle Herbert W. Pont April 2 at Briggs formerly headed his a public sultant. utilities finance con¬ Co., 208 South La - John Gardner own investment firm and later became & Street. Briggs passed away the age of 75. Mr. John Gardner, partner in Schirmer, Atherton & Co., passed away on April 1. The Connmercial and Financial Chronicle 36 . Thursday,* April 11, 1357 . . (1724) ir INDICATES Adams-Phillips, Inc. , 20 (letter of notification) 5,000 shares of common Feb. stock $20) (par officers, be offered to stockholders, to period of 10 days, the un¬ sold portion to be offered publicly. Price—$21 per share. Proceeds For purchase of additional autos and for working capital. Office 10 S. Craig Ave., Pasadena, Calif. Underwriter—Pasadena Corp., Pasadena, Calif. directors and employees for a holders Addison Airport, Inc. (letter of notification) $300,000 of 6%% con¬ 20 vertible 1972 (convertible into common share). Price—At face amount (in units of $100 and multiples thereof). Pro¬ ceeds—For the purchase of equipment and hangar space and working capital. Office — 302 Texas Bank Bldg., Dallas, Tex. Underwriter—Creson, Sledge & Co., Dailas, stock due debentures the at of rate $1.50 per Tex. Agricultural Equipment Corp. 1 (letter of notification) 500,000 shares of com¬ March stock cents). Price—50 cents per share. obligation, purchase tools and for working capital. Address—P. O. Box 322, La Junta, Colo. Underwriter—Mountain States Securities Corp., mon. 10 (par Proceeds—To reduce Denver, Colo. filed 14 400,000 shares of common Amalgamated Nov. 23 Minerals, . Bluefield Supply Co., Ltd. Price—10 cents per share. Proceeds—For mining expenses and development of oil properties. Office — 901 Sherman St., Denver, Colo. Underwriter—Lackner & Co., Denver, Colo. ; (par five cents). Amcrete (letter of notification) 300,000 shares of com¬ mon stock (par 10 cents). Price—$1 per share. Proceeds —For expansion and equipment. Business —* Prefabri¬ concrete Island Fox sections wall Road, Office— buttresses. and Chester, Port Underwriter— N. Y. New Britain, Conn. April 8 filed 118,000 shares of common to be offered in common common stock (par $12.50) stock and class B Kwikset Locks, Inc., at the rate of one exchange for stock of share of American Hardware for each two Kwikset shares mon shares for stock. The and conditioned is offer not less than 85% common American Hardware shares of Kwikset class B 55,500 150,000 American upon com¬ common common its acceptance of of the issued and outstanding Kwikset and class B ' April. ' Tex. Underwriter—Peoples Securities Co., J. D. Grey, Orleans, John S. Tanner, of Dallas, and C. L. Edmonds, of Houston, three of the 22 directors, are Chairman, Vice-Chairman and President, respectively. New $20,000,000 of sjnking debentures due 1982 of Pacific Great Eastern Ry. To be supplied by amendment. Proceeds — To — bank loans and for capital 12 Co. Edison Brockton • subsidiary; to carry inven¬ an Inc., another subsidiary, Minneapolis, Minn. Automation Development Mutual Fund, Inc. Aug. 24 filed 300,000 shares of common stock. Price—At market. Proceeds—For ton, D. C. investment. • Babcock March 15 & Wilcox D. C. 535,148 shares of capital stock (par $9) being offered for subscription by stockholders of record April 5, 1957, on the basis of one new share for each 10 shares per held; rights will expire on April 22. Price—$35 Proceeds — For capital expenditures and to share. finance increased inventories and accounts mon stock (par $10). Price—$12 Mines, 28 (letter of notification) 240,000 shares of com¬ mon stock (par $1). Price—$1.25 per share. Proceeds— For partial payment for plant site; partial payment of obligation to Memorial Inc. and for working capital. Office—4718 W. Benjamin • 18th St., Houston, Tex. & Co., Houston, Tex. Underwriter C & D be named — For on the basis of one new share for 514 shares held (with an oversubscription privilege); rights expire On April 29, 1957. Price — $14.50 per share. Proceeds—To retire an outstanding debt. Office—20 Elm St, Pittsfield, Mass. Underwriter—None. to Blackstone March stock 21 purposes. later. Valley Gas & Electric Co.° (letter of notification) 90 shares of (par $50) Jpeing offered;tp minority common common stock¬ of common stock (par 10<£), Glick follows: Co., Inc., underwriters of original offering, 140,000 shares; and by three individuals 110,000 shares. Price— Shares to be offered at market. Warrants are exercisable at 10 cents per warrant. to sellers of warrants. Colt Golf, Proceeds—From sale of shares Underwriter—None. Inc. equipment, Under¬ writer—None. shares of common cents). Price—$3 per share. Proceeds—To open and acquire additional truck terminal branches; for increased inventories; and for working capital. Busi¬ ness Transport refrigeration equipment. Office—947 Communipaw Ave., Jersey City, N. J. Underwriter—• Fred Kaufman Co., 120 Elm St., Orange, N. J. — Inc., Mines, Kings Mountain, N. C. shares of common stock, of which to are be offered for subscription stockholders at the rate of five additional shares for the shares public. by each held; and the remainder will be offered to Price—At par ($1 per share). Proceeds— loans, for exploration and development work, construction and working capital. Underwriter None. To A. repay MacCulloch of Vancouver, B. S. dent and stock of . amendment. & (4/16) South ,.v Creek Oil Co. ot notification) 75,000 shares of common ($1 per share). Proceeds—Fox oil Priee—At par stock. drilling Office—1848 South Elena Ave., Re- expenses. Underwriter—Samuel B. Franklin Calif. Beach, it Commerce & Industry, Inc., Boston, Mass. 27 (letter of notification) 7,000 shares of March Proceeds American • Corp. on the basis of 20 shares each Sea Products preferred 7% non-cumulative partici¬ pating senior common stock to be issued in exchange for an equal amount of Sea Products common stock on a share-for-share basis. Holders of Sea Products common stock consenting to the exchange will be giv^n the right to purchase two shares of junior common stock at its par (par $100) of Sea Products of Commerce & Industry for share; also 25,710 shares of value of one Office—31 State Commonwealth Investment Corp. (par $1). Proceeds—For working capital to expand company's business and operations. Office— Sioux Falls, S. D. Underwriter—None. Price—$4 per share. Price—To be Conticca March — (par $1). Century Controls Corp., Farmingdale, N. Y. Price— amount. Proceeds—For research and development; expansion; equipment; and other cor¬ porate purposes. Underwriter — None. " of principal new Miss. • Industry Developers, , •. Co., San Marino, Calif. Rosin .Corp.,-Laurel, h ' • ■' ;.«• notification) 11,400 shares of capital (par $5) and $125,000 of 20-year 5% subordinate debentures dated March 31, 1957 to be offered in denom¬ stock inations of $100 present to officers and stockholders, employees of the corporation at rate of 3/10ths of a share of new stock for each share held and $300 debentures for each 100 shares of None. Inc. ' March 12 (letter of At par ($3,000 per share). Proceeds—For acquisition of site, construction of a mill building, purchase installation of machinery and equipment, and as Turpentine Continental and plant — 17, N. Y.; and Shaw & York Plywood, Inc;, Rainier, Ore. Sept. 4 filed 200 shares of common capital stock. Price— Chinook Price—$5 per share. Proceeds — To discharge payable, including bank loans, and long approximately $1,030,000; equipment; and for working .capital. Under¬ Allen Shaw & Co., 405 Lexington Ave., New debt in the total sum of term shares of common stock (par 10 Price—Expected to be $1 per share. Proceeds III. shares of class A common stock notes current for International Corp., Chicago, filed 558,100 13 writers working capital and other general corporate pur¬ poses. Office—Jersey City, N. J. Underwriter—Charles Plohn & Co., New York. 499,400 shares of common stock filed 14 Jan. Acceptance Corp. — share of Sea Products com¬ Proceeds—For working capital. St., Boston, Mass. Underwriter—None. for each cent exchanged. stock mon • Underwriter 7% nojn-cumulative participating preferred stock (par $5) to be offered in exchange for 350 shares of preferred stock —For 90% Proceeds—For working capital and for reduc¬ loans. Office—Board of Trade Bldg., Jackson Blvd., Chicago 4, 111. Underwriter—None. share. Comanche March 22 filed 425,000 cents). new one March 14 (letter To reduce 4Vi% notes by $1,000,000, to repay about $695,000 of bank loans and for construction program. Underwriter — White, Weld & Co., New York. ; : . . Central shares of common to be offered to stockholders on a basis share for each three shares held. Price—$13 (par $10) 141 W. the basis of one new share for each on both of N. Y, tion of short term stock (par $1) for subscription by common stockholders April 24 by (letter of notification) 22,956 13 Feb. » Seattle,Wash. (4/24) 21/i> shares held; rights to expire on May 8. supplied Dillon, Union Securities & Co., Columbia Malting Co. March 29 filed 226,820 shares of corhmon offered subsidiaries. C., Canada, is Presi¬ principal stockholder. Cascade Natural Gas Corp., be Price—$15.75 per financing construction work Underwriters — Lehman Brothers and For — Co., Los Angeles, Calif. (letter of notification) 100,000 shares Inc. expire on April 22. to Proceeds dondo stock (par 10 283,676 rights Eastman per Inc., Topeka, Kan, .... March 25 filed $1,000,000 of five-year 4% first mortgage bonds, series six, and $3,000,000 of 10-year 5% first mortgage bonds, series seven. Price—At par. Proceeds— To redeem outstanding bonds and for improvement of System, Gas 1,675,415 shares of common stock (no par) being offered for subscription by common stockholders of record April 3, 1957, on the basis of one new share for each 13 shares held (with an oversubscription privi¬ share. Capper Publications, Underwriter—Landau Co., New York. N. Y. March 8 filed lege); ■ Cherry Sts., presenTTacilities and other corporate purposes. (par :: inventories and working capital. Office — Washington and Conshohocken, Pa. Underwriter—None. Carolina stock Under¬ _V - (letter of notification) 25 Feb. of machinery, and 1 Sanford, Me. exercise of warrants to purchase the upon Columbia (letter of notification) 14,000 shares of com¬ mon stock (par $10) to be offered for subscription by stockholders and employees. Price—$12.50 per share. operating capital. notification) 18,700 shares of common being offered to common stockholders be issued & Canada Batteries, Inc. March 8 (letter of April Price— March 28 stock of record corporate general other and writer—To a Berkshire Gas Co. (par $10) Ltd., Toronto, Aug. 27 filed $600,000 of 10-year 6% debentures. Beautilite Co. Dec. April 12, 1957. July 26 filed 600,000 shares of capital stock, of which 500,000 shares are to be offered publicly, and 100,000 shares to promoters. Price—At par ($1 per share). Pro¬ ceeds — For equipment, exploration, drilling, working : share. Proceeds— For expansion program. Underwriters —Quinn & Co., Albuquerque, N. M.; and Wm, H. Tegtmeyei & Co Chicago, 111. Colonial Aircraft Corp., March 29 filed 250,000 shares New York, Shore Burma receivable. per share). per None. 21; rights will expire March of Underwriter—Morgan Stanley & Co., New York. • Barber's Super Markets, Inc., Albuquerque, N. M. March 25 (letter of notification) 16,000 shares of com¬ — At market (estimated at about Proceeds—To Emory T, Clark, President Office—8530 W. National Ave., West Allis, Underwriter—Loewi & Co., Inc., Milwaukee, Wis. (par $1). Price stock $20 $62 per share. Proceeds—To orepay bank loans. Office —36 Main Street, Brockton 67, Mass. Underwriter — of record filed it Clark Oil & Refining Corp. (letter of notification) 5,000 shares of common 50,000 shares of common five cents). Price—S3 per share. Proceeds —For promotion and advertising; working capital; and for development of new products. Business—Manufac¬ ture and sale of golf balls. Office — 161 East 37th St., to ' Co. Tentatively March 22 478 shares of capital being offered to minority stockholders on the basis of one new share for each 13 shares held as Office—Washing¬ Distributor—Automation Development Secu¬ rities Co., Inc., Washington. }■ notification) (letter of four a expenditures. Under¬ & Partners, Ltd., writers—Morgan Stanley & Co., Harfis Inc. and Burns Bros. & Denton, Inc..,,, in stock Co., — fund repay , . following number of shares and held as March 29 filed 679,469 of APAF (jointly).''Bids Brothers Lehman and scheduled for May 7. Columbia Power Commission and Price ISSUE Underwriter—To be determined by competitive Probable bidders: Halsey, Stuart & Co, Inc.; Eastman Dillon, Union Securities & Co., and White, Weld & Co. (jointly); Blyth & Co., Inc., and The First Boston Corp. (jointly); Morgan Stanley & Co. and W. E. Hutton & Co. (jointly); Merrill Lynch, Pierce, Fenner & Beane to Apache Oil Corp., Minneapolis, Minn. March 25 filed 50,000 shares of common stock (par $2.50). Price—$6 per share. Proceeds—For investment tory of leases for present and future drilling programs; and for general corporate purposes. Underwriter—APA, REVISED bidding. Wis. (4/24)\ issues, viz.: $25,sinking fund debentures due 1987 of British 000,000 of ITEMS gram. April 3 filed $45,000,000 of debenture Jan. 31 Provident Investors Corp. 50,000,000 shares of common stock (par one cent),; Price—$2 per share. Proceeds*— For working capital and general corporate purposes. Office—Dallas, • PREVIOUS of company. (Province of) British Columbia • Expected in — Cargo Coo| Corp. Feb. 15 filed of Underwriter—None. Offering purposes; shares. common new Price—$17 per share. Proceeds—for advances to wholly-owned subsidiaries and for general corporate . ^ American Hardware Corp.. $4) by common stockholders shares for each ten shares held. Proceeds None. three of basis the on Bluefield, W. Va. 149,925 shares of common stock (par offered for subscription be to capital Corp. March 29 cated 12 filed March (letter of notification) 3,000,000 shares of com¬ stock mon rights to stock (par $25) Fund, Inc. stock (par one cent). Price—At market. Proceeds — For investment. Underwriter—Fund Corp., 523 Marquette Ave., Minne¬ apolis, Minn. Dec. share for each six shares of one March 25; of as March Allied Resources basis the on expire April 12, 1957. Price—$105 per share. Proceeds—For working capital. Office—55 High Street, Pawtycket, R. I. Underwriter—• None. ' held — March Registration Now in Securities ADDITIONS SINCE held. debentures at struction purposes Price—Of stock, $15 per share; face amount. in Shamrock, ... Proceeds—For con¬ Fla. Underwriter—' . Development Corp. March 15 (letter of notification) 560,000 shares of com¬ mon stock (par one cent). Price — 50 cents per share. Proceeds For diamond drilling on company's lands, prospecting expenses, working capital and other corpor¬ ate purposes. Office—83 Campfield St., Irvington, N. J. Underwriter—Roth & Co., Maplewood, N. J. Cougar Mine — • Chrysler Corp. " ; i to be offered for (par $25) subscription under the company's Stock Option Plan Salaried April 4 filed 391,560 shares of common stock for Officers and Key Employees. ir Cincinnati Gas & Electric Co. (5/7) April 4 filed $25,000,000 of first mortgage bonds due 1987. Proceeds—To repay bank loans and for construction pro- Telephone Co., Dixon(; lll. . filed 14,692 shares of common stock represented bv.voting trust certificates. Voting Trustees—Richard 3. Durkes (a.director of company) and six others. • it Dixon Home April 8 . Volume 185 Number 5628 . . The Commercial and Financial Chronicle . (1725) Electric Auto-Lite Co. cents). April 4 filed 75,000 shares of offered for subscription stock common under company's Option Plan for officers and key employees, r Esk ■ Feb. Manufacturing, Inc. (letter of notification) 8 stock (par $1). Price 150,000 shares of tion of buildings and improvements; furniture and equipment;* and working capital and other corporate purposes. Of¬ $2 per share. Proceeds — For manufacture and sale of molded plastic items. Office— 100 West 10th St., Wilmington 99, Del. Underwriter— Florida Steel — — " working capital. March stock 12 (letter of notification) 291 shares of capital (par $25) being offered to minority stockholders the on Co.," Cleveland, O.; and Kidder, Peabody & Co., New York. Florida Trust, Pom pa no Beach, Fla. River electric Light Co. basis of one share for each new 16 shares March the held of March as $52 21; rights to expire on April 12. Price— share. Proceeds To prepay notes to banks. per 850 River, Mass. Underwriter— Underwriter—None. Flexible Tubing Corp., Guilford, Conn. (4/17) Ford -• supplied by amendment. Proceeds—Together with pro¬ ceeds from new bank loans, to repay present bank loans expansion and working capital. Underwriter—P. W. Brooks & Co., New York. •i'' and for O - ...-V 7 ,V Florida-Southern Land Co. 11 filed 600.000 shares of March stock (par April 11 Fruit 10 Juices, (Bide 11 (letter of stock. Price—At EST) April 12 Co. ceeds—To the ton (Bids (Friday) Minor, Mee & .(W.nslow, Cohu & Stetson) Wrigley Properties, Inc.__ / Berks April County 15 Trust (Offering , V (The , . First (Ottering 75.000 shares Inc.) F, Church United. States Leasing & : . $300,000 April 16 to Gas & !_ (McDonald & Co.) Cer/tral Illinois Ltd., $45,000,000 Inc.; (Bids and .■ ^ /■> Peabody & Co.) & Lincoln Telephone & Telegraph Co by (Bids White, Stevens Witter Sc Co.> G3.75C Inc.) 25 Markets, Inc (R. S. Dickson / - 7: 7' : Co., Inc.) Western Nuclear Corp.. (Eosworth, (Steven • April 17 & 100,000 Co.) • (P. W. shares about $9,600,000 -*L Peabody & (White, Weld & Co. and Stone Corp.) 7; Weld & Co, and Stone Webster 18 New York (Paine, Webber, Curtis) & April 22 175,000 ; ' (Bids .« (Van Alstyne, Lemon . (Bids Co. and Co.) Treat & (Straus, & McDowell) & Co.) Bei sner & Co.) 50,000 Artists Corp & Co.) 50,000 common 3:45 p.m. noon EDT) be 11 $6,165,000 (Thursday) Co. EDT) shares of common debentures & Corp., invited) a.m. 11:30 be V , EDT) (Monday) Power (Offering to (Tuesday) to be 1,537,500 B sharet stock (Bids noon EDT) (Monday) Common be negotiated) 225,976 shares (Tuesday) Gas a.m. June 18 Co EDT) —Debentures $25,000,000 (Tuesday) Southern Bell Telephone & Telegraph Co (Bids to be invited) July 9 to be (Tuesday) Debentures invited) July 30 (Bids $25,300,000 to be $30,000,000 (Tuesday) West Penn Power Co __Bonds Deh*. $70,000,000 Wisconsin Telephone Co shares Corp 1,000,000 shares EDT) $15,500,000 10 11:30 (Bids >___ Bonds A invited) about $20,000,0"00 I April 23 Kidde (Walter) (Shields & Midwestern (C. E. (Tuesday) & Co., Inc.—— Co.) Unterberg, Towbin Debentures El Paso El Paso Electric $3,000,000 Instruments, Inc.-. May 15 Co.) 200,000 Electric ''(Bids Common shares - (Bids 11 Co to be —7—r—, invited) EDT) Preferred $2,00bOOO "J1 Co a.m. October 1 (Wednesday) about $r,500.000 ^ (Bids Bond* (Bids to bfe Boncte invited) $15,000,000 Light Co to be '• (Tuesday) Utah Power & Light Co Utah Power & " " Bond* Natural $3,000 000 New York State Electric & Gas 350,000 Bonds - Cornmoi (Thursday) a.m. Common Common 255,813 Common 6 June 11 (Tuesday) Invited) (Wis.) invited) $25,000,000 stockholders—may Consolidated Corp $500,000 (Wednesday) be June (Bids and Debentures about Portland Gas & Coke Co.^ (Monday) 426,988 A shares $15,000,000 Bonds to (Bids 11 « Equip. Trust Ctfi. $3,585,000; " ' .7 Film Corp Bonds $3,000,000 Georgia Power Co - Ctfs. Debenture a.m. invited) June x $14,500,000 invited) 13 Trust Co (Bids Bond* EDT) j $2,550,000 EDT) 4 to be Boston Edison (Offering to stockholders—to be underwritten by Merrill Lynch, Pierce, Fennor & Eeane and Kidder, Peabody & Co.) shares and 11 June 5 EQUip. Trust Ctfs. (Bids Florida shares Debentures $10,000,000 of (Bids 7 + a.m. to & . ' $14,000,000^ invited) :f;j 77 $20,000,000 Virginia Electric & Power Co.— —.Equip, Trust Ctfs. - (Thursday) be June Securities ; ^ . (Bids to be invited) $10,000,000 Chicago, Rock Island & Pacific Ry. shares preferred EDT) Equip. to Bonds May 14 Preferred & Common and Eberstadt (Bids $1,000,000 30,000 (Wednesday), a.m. Government Employees Corp (Johnston, Lemon & Co.) 119,522 shares Common (McDonnell Tex-Tube, Inc. United Webster & :7 ••; Morgan $70,000,000 Reading Co. ;______Bonds Co., Inc.) $800,000 Swartwout Co. (Moroney, General Aniline Debentures Blosser 11 May 23 , (Bids $25,000,000 " Commoa by .Bonds invited) Northern States Power Co. (Wednesday) ' Preferred Ltd. (Bids Common May i (Amos invited) * Johnston, 200,000 'shares ; be May 22 ■ Ctfs. --Debenture bonds Baltimore & Ohio RR Herold Radio & Electronics Corp Supercrete. be May 9 Alabama Power (Bids & $10,000,000 Bonis •/■• ]■' .Interstate Powqr.,Co.+_—__JBomds (Bids invited) (Tuesday) National Fuel Gas Co. RR. (Tuesday) Common & Bonds May 28 (Tuesday) Community Public Service Co Corp.) 250,000 shs. $6,000,000 7 to (Bids (Monday) Noel Boston invited! — - shares Hartfield Stores, Inc (Monday) EDT) $30,000,000 June 3 be to Wabash RR. , Common Jackson $8,000,000 Colorado—. noon to (Bids Common First be dealer-manager) '/'*7"J*.* 7; Roxbury Carpet Co $8,000,000 Bonds about Telephone Co... (Wednesday) May 8 Securities **' . '7 '• "" • Potomac Edison Co ' (Thursday) of to Co stockholders—to be underwritten Stanley & Co.) about $20(^000,000 (Tuesday) (Offering to stockholders—Stone , , April $300,000 El Paso Electric Co may $10,000,000 $6,000,000 invited) Corp to shares Bonds to (Bids /' & Inc.) (Offering (Bids ....Common Co., ' Corp.) 125,000 Cincinnati Gas & Electric Co.__ Transcontinental Gas Pipe Line Corp..—Preferred (White, & be May Securities $50,000,000 ' (Frazee, Olifiers & Co.) >$190,000 Bonds Webster & 7 . shares Transcontinental Gas Pipe Line Corp Light " United States) $20,000,000 190,000 . Bonds .-.Common Co.) Co.) Mid-State Commercial Corp ■X.;.';, $600,000 Pressed Steel Co.. (Kidder, $3,000,000 ____Equip. Trust Ctfs. Gas to be Equip. Trust Ctfs. about Florida Power & Light Co 7 7 ; (Bids to be invited) $15,000,000 International Business Machines ' common Equip. Trust Quebec Natural Gas Corp..-Debentures & Common Standard (Thursday) May 21 /.'• Class A Laclede Gas Co._ : in 1 to (Bids Quebec Natural Gas Corp &1 The and (Bids (Lehman Brothers and Allen & Co. in United States) $25,000,000 (Lehman Brothers and Allen & Co. Randall May $404,400 Inc.) .Common A $30,000,000 Chicago, Milwaukee, St. Paul & Pacific Bonds Co. $8,125,000 Sweeney, Inc.) $300,000 invited) (Bids (Monday) Podesta (Smith, Barney & Co. (Wednesday) Brooks & & May 20 __Debentures KLM Royal Dutch Airlines common Flexible Tubing Corp.. Bonds invited) invited) Public Service Co. ___Equip. Trust Ctfs. invited) April 30 shares .Debentures & Common Sullivan be Common ^ake Lauzon Mines, Ltd.__ r . Class A & 38 page RR be be (Bids (Thursday) April 29 Common shares to Washington $3,900,000 Associated Truck Lines, Inc._ 'o\ (Offering to stockholders—underwritten by Dean on Arts, Inc.._ to Common Co., be (Cruttenden, 300,000 to Northern Pacific Ry.; ..Common Corp.) $30,000,000 RR (Bids to ^ Belt Alabama Great Southern RR ''■ .Equip. Trust Ctfs. Kidder, Harbor Paul Hesse 3-D 226,820 shares Boston Wm April shares EST)' $4,200,000 are being Price—$1.25 per Continued May 16 Corp.____ & Otis. Inc.) Gas Co.— Natural "UBlyth '• Common Co,- and /'; '.7;. Indiana .Debentures Partners '7 <Gearhart Northern (Tuesday) noon warrants. additional discount department to increase the number of stores; and Debentures First of common shares For (Reilly, Hoffman National Lithium Corp.. 7' 77/* Florida Steel Corp (F. & stockholders—underwritten (The Cincinnati, New Orleans & Texas Pacific (Bids outstanding — operation; 7 of which 86,610 ' = ( notification) 240,000 shares (par 30 cents) - r : stock For - Ry. Jan. 21 (letter of expan¬ named. through selected dealers. Shops of America, Inc, $30,000,000 Denton, Inc.) - ;v!V Gob made . CentrqlnSc South American Acceptance Corp.. r. ■'**/ " «''' T. 'u 'r 7: >' '■■■'■ ~Common 7 V 'V"/'■(Charles Plohn &' Cd/j'425.000 share's / ' '/'•A *>V' Harris & Weld Common Co:) .800,000 debentures and 40 Price—$500 per unit. Proceeds—For working captal. Underwriter —None (Wednesday) Lone Star Gas Co —Common Co.t Corp.L^.. (Sehwabacher .& t K $225,0^0 Pepsi-Cola Mokan Bottlers. Iiic <G. and Offering to be (Shearson, Hammill & Co, and Underwood, Neuhaus & Co.) ■■■ : 200,000 shares ••• ..-L^Common Co., sion Debentures (Province of)_, Co.; Bros. :i\' shares a. Common Blauner'& D. & Cascade Natural 7 Common 28,611 Nyvatex Oil Corp (Milton warrants. (Bids Houston Oil Field Material Co., Inc. Co Corp.) Stanley Burns —Common (Monday) Boston Columbia (Morgan $250,000 ' Iowa Southern Utilities Co.___ 'T British -Common t stockholders) to General Credit, Inc., Washington, D. C. Aug. 17 filed $2,000,000 of 6% subordinated sinking fund debentures, due Sept. 1, 1971, with detachable warrants to purchase 160,000 shares of participating preference stock, to be offered in units of $500 of $2,700,000 EST) a.m. (EDT) on May 13 at Room 654, 101 In¬ Ave., N. W., Washington 25, D. C. Co.)'$172,500 security holders ef ACF-Wrigley Stores, Inc. by Allen & Co.) 2,069,150 shares to 11 received to 3:45 p.m. up common — of Corp. (jointly); Kuhn, Loeb & Co., Lehman Brothers Glore, Forgan & Co. (jointly). Bids—To be diana Equip. Trust Ctfi. CST) April 24 —underwritten ; noon Attorney Geenral CALENDAR Northwestern Bell Telephone Co Shurnway Uranium Mining Corp (Offering (Bids $6,000,000 and store of Proceeds A (no par) (par $1). Pro¬ the United States. of common B stock Underwriter—To be determined by competitive bidding. Probable bidders: Blyth & Co., Inc., and The First Bos¬ sold pursuant to share. Proceeds share). per ISSUE -Common and of real property. 7 Minneapolis & St. Louis Ry . Shop Rite Foods, Inc (Firtft.Southwest ($1 par 1,537,500 shares in ; notification) 300,000 shares Bonds a.m. interest Inc. 7 Dec. 3 (Thursday) Mississippi Power Co every character * UhderWriter—None. NEW ; beneficial Gum & Machine machines. >" common of Co., Inc. Dec. 18 (letter of notification) $250,000 of 6% first mort¬ gage bonds due 1962 to 1967, inclusive. Price—100% of principal amount.. Proceeds—For machinery and work¬ ing capital. Office—Hoag and Newton Sts., Akron, N. Y. Business—Manufacturing chewing gum and self-service March 26 filed $600,000 of first mortgage bonds due 1972 <with common stock purchase warrants attached) and 32,000 shares of common stock (par $1). Price—To be ' certificates Price—$1,000 per certificate. Proceeds—To purchase, lease or otherwise, and to hold, subdivide, lease, mortgage, exchange, bargain, sell by own, and convey lands and None. • filed Trust. acquire — Office—85 N. Main St., Fall 4 — General Aniline & Film Corp.r New York (5/13) Jan. 14 filed 426,988 shares of common A stock — Fall Office 37 1115 South Washington St. Marion, Ind. Underwriter—Sterling Securities Co., Loi Angeles, Calif. " and Corp., Tampa, Fla. (4/16) March 22 filed 300,000 shares of common stock (par $1), of which 30,000 shares will be offered to employees. Price To be supplied by amendment. Proceeds To selling stockholders. Underwriters McDonald & Co., Metairie, La. and Salt Lake City, Utah. a fice—Tom's Harbor, Monroe County, Fla. Underwriter —Keystope Securities Co., Inc., Philadelphia, Pa. capital — Ackerson Hackett Investment per share. Proceeds—For construc¬ 50-unit hotel-motel and various other related to be Stock ($5) the Price—$5 invited) Common 400,000 shares - - - • The Commercial and Financial Chronicle ,. Thursday, April It, 1957 . (1726) 38 rate of one new 37 Continued jrom page * capital. Office—41 Stukely Underwriter—Bruns, Nordeman & for working I R N. Y. Gold Mountain Lodge, (par $1), 295,000 stock (par $1), gtock ing capital, etc. St., Providence, Co., New York, /¥v:v; Dallas, Texas. (III.) March 29 filed 20,000 shares of common stock to be of¬ fered for subscription by common stockholders of record April 1, 1957, on the basis of two new shares for each five shares held; rights expire on June 10. Price — $21 common Inc., Durango, Colo. of class A voting common shares of class B non-voting and $700,000 of 4% debentures Proceeds — To acquii'e real property and for working capital. Office—315 Angelus, Memphis 12, Tenn. per ★ Hicks-C. Q. S. March Investors Variable Minneapolis, Minn., which will also act as Proceeds—For Ltd. Feb. 13 filed Price Israel 50-cent convertible pre¬ employees; and 13,975 shares now company's treasury as a deferred rewards fund for certain officers (to be sold from time to time officers and other key stock, series A (par $5) and 2,476,116 shares of common stock (par 60 cents), of which all of the pre¬ ferred and 763,011.3 shares of common stock are to be offered in exchange for Mount Vernon Co. preferred and common stock on the basis of one Holly series A share for each of the 406,638 shares of Mount Vernon to are Jan. and Land Holy stock. Import Corp., Houston, Texas & Houston Underwriter—Grande & Co., Inc., Seattle, & Co., Inc., Belleville, N. J. (Walter) . ;¥•/,¥' . / general corporate purposes. sale of aircraft accessories, Lighting & Power Co. fire equipment, protection shares will be madie Sitock Exchange. available for sale on the Price—To be supplied by Amsterdam Proceeds—For flight equipment and ground amendment. Under¬ writers Smith, Barney & Co. and The First Boston Corp. in the United States; and Heldring & Pierson, Pierson & Co. and the Netherlands Trading Society, in facilities and other general corporate purposes. — the program. St. Louis, Mo. (5/1) April 4 filed $10,000,000 of first mortgage bonds due May Underwriter—None. Houston Oil Field Material Co., inc. (4/24) shares of common stock (par $1), March 15 filed 305,000 200,000 shares are to be offered publicly and of which pursuant to company's restricted stock option plan for certain offices and key employees. Price —To be supplied by amendment. Proceeds — To retire shares 105,000 $1,400,000 ments and bank loans, short-term working capital. for Office capital require¬ Houston, — ¥ex. Underwriters—Shearson, Hammill & Co., New York; and Underwood, Neuhaus & Co., Houston, Texas. International Bank of Washington, D. C. Co., Washington, D, C. International Capital Corp., Nov. 29 filed 370,000 shares of Des Moines, Iowa common slock (par 10 cents), of which 185,000 shares are to be offeird by The Equity Corp. on a share-for-share basis in exchange for Equity Corp. common stock, and the remaining 135,000 shares by Financial General Corp. on a basis of 1% shares of International common stock in exchange for share of Financial common stock. Equity and Finan¬ cial are to receive the 185,000 shares each of Interna¬ tional common stock in exchange for all the outstand¬ one ing shares of common stock of Investors Financial Corp. and Group Equities, Inc. International has been that 142,000 shares of Equity common owned informed by Fre¬ mont Corp. will be tendered in acceptance of the Equity exchange offer. Underwriter—None. International Duplex Corp., San Francisco, Calif. (par one cent). Price—$1 per share. Proceeds—To equip and establish five super launderettes and for working capitaL Underwriters—Names to be supplied by amend¬ Dec. 21 filed 500,000 shares of common stock ment. International Fidelity Insurance Co., Dallas, Tex. March 28 filed 100,000 shares of common stock (no par) to be offered for subscription by program. Underwriter—To be determined by com¬ petitive bidding. Probable bidders: Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; Stone & Webster Securities Corp.; Lehman Brothers, Merrill Lynch, Pierce, Fenner & Beane and Reinholdt & Gardner (jointly); The First • Corp. Bids—Planned to be received Lake Lauzon Mines March 18 filed 750,000 stockholders at the cents per on May 1. Ltd., Toronto, Can. (4/29-30) shares of common stock (par $1). Proceeds—For drilling ex¬ share. equipment, working capital and other corporate Underwriter—Steven Randall & Co., Inc., New penses, Underwriter—Johnston, Lemon & / < tion Boston Growth also Fund; purposes. York. of $3,000,000 (4/24)ijr¥-¥:;. Co. Star Gas Lone • .,;>¥ April 3 filed $30,000,000 of sinking fund debentures due 1982. Price—To be supplied by amendment. Proceeds— To finance 1957 construction program of company and' its subsidiary, Lone additional Boston working Star Producing Co., and to provide capital. Underwriter — The First Corp., New York. Loyal American Life Insurance Co., Inc. (par $1) Sept. 28 filed 230,000 shares of common stock being offered for subscription by common stockholders 18, 1957 at the rate of one new share for each three shares held (with an oversubscription privi¬ of record March lege); rights to expire on April 15. Price—$5 per share. Proceeds—To increase capital and surplus. Underwriters Goddard & Co., Inc., Boston, Mass., —J. H. and Thorn¬ ton, Mohr & Farish, Montgomery, Ala. ' Finance Corp., Marion Ardmore, Pa. March 28 filed $250,000 of 6% renewable subordinated debentures, due upon demand May 1, 1967, without de¬ Price—At par (in units of $100 and Proceeds—For working capital. Office—17 W. Lancaster Ave., Ardmore, Pa. Underwriters—Walnut Securities Corp., Philadelphia, Pa.; B. Ray Robbins Co., New York; and Berry & Co., Plainfield, N. J. ¥ mand May 1, 1972. $500 each). Mortgage Fund, Inc., Washington, D. C. Mason Feb. 8 Lied $1,000,000 of 8% note certificates. Price—At (in denominations of $250 each). Proceeds—For in¬ Underwriter — None. Offering to be made par vestment. officers employees and McCormick Armstrong Co., mon For Investment Corp. Inc. . 31,940 shares of com¬ (par $5). Price—$6.50 per share. Proceeds— working capital. Office—1501 East Douglas, Wichita stock Small-Milburn Co., Inc.; MidInc.; First Securities Co. of Inc.; Hanson & Co., Inc., and Brooks & Co., all Underwriters Kan. 7, this company and of (letter of notification) 21 March Kansas, Securities — Co., : Tungsten Corp., Boise, Idaho ' - ¥ Nov. 30 (letter of notification) 100,000 shares of common stock (par one cent) and 100,000 stock purchase war¬ rants (each two warrants to entitle holder thereof to McRae purchase one share of convertible Idaho Rare Minerals Corp. 6% sinking fund preferred stock, $10, and one share of Idaho Rare common stock, par cent at $11 per unit).',Price—$3 per unit, consisting McRae share and one warrant. Proceeds — For par one of one Robert J.¥McRae, 1704 Underwriter—Von Gemmingen Co., Inc., 320 North Fourth St., St. Louis, Mo. 7 mining expenses. Office—c/o Gourley St., Boise, Ida. & of Calif. $11,400 of 12-year 5%% subordinate capital debentures. Price—100% of principal amount. Proceeds — For working capital. Office—833 Mercantile Acceptance Corp. 27 Feb. (letter of notification) Montgomery St., San Francisco, Calif. Underwriter— Guardian Securities Corp., San Francisco, Calif. Gas Co., 1, 1982. Proceeds—To repay bank loans and for construc¬ Price—40 Sept. 28 filed $1,000,000 of time certificates, series B, C and D. Price—At 100% of principal amount. Proceeds— For working capital. Netherlands. • Laclede *? shares. cumulative it KLM Royal Dutch Airlines (4/30) April 8 filed 400,630 shares of common stock (par 100 Dutch Guilders—$26.32 each), of which 250,000 ' shares are to be offered publicly in the American market and 150,630 (with an oversubscription privilege); rights to expire on April 15. The remaining 53,500 shares are being offered subscription by employees. Price — $43 per share. Proceeds—To reduce bank loans and for construction Business—Manufacture and for • Industrial Star Lone of Wichita, Kan. Underwriter—Shields & Co., New York. etc. !'¥' systematic investment plan certificates of All States: Management Co., investment adviser and distributor for Lone Star Fund, the proceeds of the sale of which will be invested in the Lone Star Industrial Growth Fund — each). (4/23) filed 665,760 shares 25 $295,000 of 6% 15-year At face amount (in de¬ Proceeds —For additions Office—139 W. Second Street, Ju¬ Price Reeves & • Lone Star Fund, Inc., Dallas, Texas April 9 filed 125,000 shares each of Lone Star Balanced Income Fund, Lone Star Insurance Growth Fund/,and through April 3 filed $3,000,000 of convertible subordinated de¬ bentures due April 15, 1972. Price—To be supplied by amendment. Proceeds—To reduce bank/loans and for of common stock (no par), of which 612,260 shares are being offered for subscrip¬ tion by common stockholders of record March 25, 1957 at the rate of one new share for each 10 shares held Feb. Alaska. • Kidde Proceeds—For in¬ Underwriter—Benjamin working capital, etc. Co., Houston, Tex. Blvd., Torrance, Calif. Underwriter—Daniel Go., Beverly Hills, Calif. Continent Price—At par ($3 per share). ventory, — of its affiliate. Mason Mortgage & Wash. (letter of notification) 100,000 shares of common Feb. 27 improvements. neau, property; Dorn 1972. of $1,000 nominations the Logren Aircraft Co., Inc., Torrance, Calif. v 5 (letter of notification) 194.180 shares of com¬ mon stock (par $1). Price—$1.37% per share. Proceeds For working capital. Office — 2475A So. Crenshaw . March (letter of notification) 24 debentures due be v Douglas Telephone Co. Juneau & Holly common stock Mount Vernon com¬ fpture date in exchange, for 64,696 shares of Yan Iron Works common stock. Underwriter—None^ the retirement of such officers), upon 1,016,595 shares will be reserved against conversion of preferred stock; and the remain¬ ing 388,176 are to be reserved for possible issuance at a of dors the in held remainder, 210,000 Holly common offered to certain holders of 35,000 shares of Van Dorn Iron Works Co. common stock on a six-for-one basis; 38,333 Holly common shares will be offered to certain finders, 60,000 shares to certain ven¬ Of stock. shares pounds • Jones & Laughlin Steel Corp. ^ April 8 filed 125,447 shares of common stock to be offered under company's Stock Option Plan to certain ferred mon Proceeds—To be converted into of par. 110% — extend the medium and long-term capital. Office—1054-31st Street, Washington, D. C. Underwriter—None. preferred stock and 2¥2 shares of for each of the 305,204.52 shares of $2,500,000 of perpetual 6% debenture stock. and will be used as working capital to credits to enterprises in Israel. Office—Tel Aviv, Israel. Underwriter—Israel securities Corp., New York. 900 shares of cumula¬ film, and lor working W., Utilities Co. Southern Iowa Under¬ preferred stock (no par). Price —$50 per share. Proceeds—For developing and processing photographic Holly Corp., New York Jan. 25 filed 406,638 shares of distributor. (4/15-16) March 27 filed 75,000 shares of common stock (par $15). Price—To be supplied by amendment. Proceeds—To reduce bank loans. Underwriter — The First Boston Corp., New York. Israel American Industrial Development Bank, • tive N. Payment Fund, Inc. shares of common stock. Price—At market. Proceeds—For investment. Sponsor and Invest¬ ment Manager — Investors Diversified Services, Inc., March 25 filed 10,000 Photo Service, Inc. (letter of notification) 13 unit. Underwriter—None. underwriter at par and the remaining Alton Blauner as a finder's fee Y. 100 and 12,500 shares issued to Price—Of preferred, $5 per share. notification) approximately 129 units, 100 shares of class A common stock shares of class B common stock. Price—$1,501 each consisting of preferred stock (par $5) and 25,000 shares of common stock (par. 25 cents). Of the latter issue, 12,500 shares working capital. Office—Mount Vernon, N. writer—Amos Treat & Co. Inc., New York. Holding Corp. Interstate • (4/22-26) to be sold to working capital. Underwriter March 8 (letter of Johnston, Lemon & Co., Washington, D. C. Herold Radio & Electronics Corp. (4/22) Feb. 27 filed 160,000 shares of 6% cumulative convertible at par. Co. —None. April 4 filed 200,000 shares of common stock (par $1). Price—$9 per share. Proceeds—To selling stockholders. Underwriters—Van Alstyne, Noel & Co., New York; and are share. Proceeds—For per sale in the States shares of class A stock, 2,950 shares of class B stock and one $7,000 debenture. Price—$10,000 per unit.. Proceeds—For pur¬ chase of property, remodeling of present main building,, for new construction and working capital. Business— Operates year-round resort hotel. Underwriter—None * Hartfield Stores, Inc., Los Angeles, 31, 1075, to be offered for of Texas and Colorado in units of 50 due Dec. Calif. Interstate Fire & Casualty • filed 5,000 shares 23 Aug shares held. Price Proceeds—For work¬ Underwriter—Franklin Securities Co., share for each seven supplied by amendment. —To be Michigan Wisconsin Pipe Line Co. July 2, 1956 filed $25,000,000 of first mortgage pipe line bonds due 1976. Proceeds—To pay off short term bank loans and for Underwriter—To be construction program. competitive bidding. * Probable bidders: Halsey, Stuart & Co. Inc.; The First Boston Corp.; Blyth & Co., Inc.1 Bids—Three bids were received on Aug. 1, all for 43/4S, but were turned down. Reoffering is expected sometime during the first six months of 1957. determined by Midland Telephone Co. / (letter of notification) 170,154 shares of com¬ (par $1) of which 151,487 shares to be offered stockholders through rights and 18,667 shares to be March mon to 13 stock Price — To stockholders, $1.25 per public, $1.50 per share. Proceeds—For re¬ tirement of outstanding bonds and working capital. Of¬ offered to public. share and to it Lang Co., Inc., Salt Lake City* Utah ~ April 9 filed 73,199 shares of common stock (par $5). Price—To be supplied by amendment. Proceeds—To re¬ duce bank loans and for working capital. Underwriters —Lee • Laura 28 stock. Exploration Co., Price—At mining expenses. par Inc. ($100 per Leslie 14 3,000 shares of common share): Proceeds—For Address—P. O. Box 63, Arnett, Okla. Productions, ice (par $1). Price—$2 per share. Proceeds—For spe¬ cial building, equipment and for working capital* Office C. • - 29 area Underwriter—Alester G. Furman Co., Inc., Greenville, S. C. Lincoln Telephone & Telegraph Co. (4/16) stock (par $25) to be offered for subscription by common stockholders of record April 10, 1957 on the basis of one new share for each three shares held; rights to expire on May 1. Price—To be supplied by amendment. Proceeds—To re¬ duce bank loans. Underwriter—Dean Witter & Co., San March 28 filed 68,750 shares of common Francisco, Calif., will underwrite 53,114 of the shares. and working capital. dletown, N. Y. Underwriter Office—2 King St., Mid— Frazee, Olifiers & Co., New York. • Inc. stock S. (£/!) (letter of notification) $190,000 of 7% regis¬ May 1, 1967/ Price—At 100% and accrued interest. Proceeds—For expansion of serv¬ Midwestern Instruments, Inc., Tulsa, Okla. (4/23) (letter of notification), 30,000 shares of common —Columbia, Colo. tered debenture bonds due Underwriter—None. Jan. Mid-State Commercial Corp. March (letter of notification) St., (Box 988), Grand Junction, Underwriter—None. Higginson Corp., New York; and J. A. Hogle & Co., Salt Lake City, Utah. Feb. fice—126 N. Fifth stock (par $1). Proceeds — For working capital and general cor¬ porate purposes. Underwriter—C. E. Uriterberg, Towbin & Co., New York. March 29 filed 200,000 shares of common Price — Expected to be $5 per share. capital expenditures, Minneapolis Area Development Corp. Feb. stock of 4% sinking fund income de¬ 1, 1972, and 25,000 shares of common 19 filed $1,000,000 bentures due March (par $1) _to be offered in units of $40 of deben¬ one share of stock.- Price—$50 per unit. Pro¬ . tures and acquisition of lands and for development of the lands as sites for industrial purposes; for payment ceeds—For Volume 185 Number 5623 . .. The Commercial and Financial Chronicle 39 (1727) of bank loans; and for working capital and other cor-. porate purpose. Office—Minneapolis, Minn, Underwriter —None. Pnilip B. Harris (Vice-President of Northwest¬ National Bank ern of Minneapolis)- is President. Mississippi Power Co. March filed 15 $6,000,000 " . . derwriter—To be : (4/11) of determined by .• competitive bidding. & Co. Inc.; ? Merrill Lynch, Pierce, Fermer & Beane; Kidder, Peabody & Co.; Blair & Co. Incorporated; Eastman Dillon, Union Secu¬ rities & Co. and Equitable Securities Corp. (jointly). Bids—To be received up to 11 a.m. (EST) on April 11, at office of Southern Services, Inc., Room 1600, 250 Park Avenue, New York 17, N. Y. * Probable • bidders:; Halsey,-Stuart / agents. own Michael Tzo- pany and 40,000 shares for To be supplied selling stockholders. Price— by amendment. Proceeds To reduce outstanding obligations and for working capital. Under¬ writer—Straus, Blosser & McDowell, Chicago, 111. Offer¬ ing—Expected today (April 11). w and share. * corporate ? notification) 300,000 shares of common Pittsburgh Rys. Co., Pittsburgh, Pa. ($1 per share). Proceeds — For Feb; 13 filed 547,678 shares of common stock capital expenditures, including construction of motel, (no par), of which 540,651.75 shares are to be offered for roadside restaurant and gas station. Business—Has been subscrip¬ tion by Standard Gas & Electric Co. common stockhold¬ processing and selling of gravel. Office—203 Broadway, ers on the basis of one Pittsburgh Rys. share for each Monticello, N. Y. Underwriter—Walnut Securities Corp., / four Standard Gas shares held as of April 2, 1957. The Philadelphia, Pa.v. ,T V/;Y<,, subscription period will expire on April 24. Price—$6 Mutual Investment Trust for Profit* Sharing;- // per share. Proceeds—To Standard Gas & Electric Co. ^ ; Retirement Plans, Inc., Richmond, Underwriter Va.c ^.4;,". , None. Standard Shares, Inc., owner of March 19 filed 50,000 shares of capital stock/(par.-$1)* 45.59% of Standard Gas common stock, will purchase to be offered trustees of profit sharing retirement plans. all shares of Pittsburgh Rys. to which it is entitled to Price—At market. Proceeds—For investment. President subscribe, plus any unsubscribed share and the remain—T. Coleman Andrews. Office 5001 West Broad St.,ing 7,026.25 shares not offered directly to Standard Gas Richmond, Va. V' /://;., stockholders. Statement Louis, Mo. St. Regis Paper Co. April 1 filed 850,000 shares of to be offered in & - • bonds to (4/.24) 3,120,000 shares of common stock (par one Price—$1.25 per share. Proceeds—For acquisi¬ tion of properties; for ore testing program; for assess¬ 19 filed of the Yellowknife properties; and for cost on concentration a plant, mining equipment, etc. writer—Gearhart & Otis, Inc., New York. Under- to . New Brunswick (Province • 14 filed tures ment. Proceeds—To wick Electric be Power advanced Commission The to to New repay ; • Gas & Electric Co. the on for each Lynn share. Jackson & basis of two (par $1) Lynn shares • and Nic-L-Si'ver Battery Co., Santa Ana, Calif. 75,000 shares of 5% cumulative participat¬ . Dec. 27 filed ing preferred stock Price—At par a J bank loan ($10 of and per 7,500 share). shares of Proceeds common — To liquidate $178,635; increase . v v ■■ Montreal, mission. Co. can due Proceeds—To repay advances from Ameri¬ Telephone & Telegraph Co., the parent. Underwriter —To be determined by competitive bidding. Probable Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; The First Boston Corp.; Eastman Dillon, Union Se¬ curities & Co. Bids—Expected to be received up to 11 a.m. (EST) on April 23. bidders: in Canada, from Underwriters the Quebec — Hydro-Electric Com¬ Lehman Brothers and Allen & United States; and Nesbitt Thomson & Co., Ltd.; Wood, Gundy & Co., Ltd. and Osier, Hammond & Nanton, Ltd. in Canada. , • Quebec Natural Gas Corp. (4/17-18) March 15 filed $20,000,000 of subordinated debentures due 1985 and 800,0C0 shares of common stock (par $1) • Nyvatex Oil Corp. 225,000 shares of common stock (par one cent). Price—$1 per share. Proceeds—For payment of note; and drilling and development of prop¬ erties. Office — Esperson Bldg., Houston, Tex. Under¬ Co., Inc., New York, N. Y. writer—Milton D. Blauner & Ohio Power Co. Sept. 20 filed 60,000 shares of cumulative preferred stock (par $100). Proceeds—For construction program. Underwriter—To be determined by competitive bidding. Prob¬ able bidders: The First Boston Corp.: Blyth & Co., Inc.; Kuhn Loeb & Co.; Eastman Dillon, Union Securities & Co. and Salomon Bros. & Hutzler (jointly); Harriman Ripley Co., Inc. and Stone & Webster Securities Corp. (joint¬ ly); Lehman Brothers. Bids—The two received up to 11 & (EST) Orefiefd on Oct. 30 were rejected. Mining Corp., Montreal, Canada supplied by amendment. Proceeds Offering—Postponed indefinitely, -Raytone Screen Corp. 15 (letter of notification) 50,000 shares of common stock (par 10 cents). Price—$3.25 per share. Proceeds Feb. — reduce debt, for purchase of inventory and I for working capital. Office—165 Clermont Ave., Brooklyn, N. Y. Underwriter—J. P. Emanuel & Co., Inc., Jersey City, N. J. Resource Fund, Inc., New York March 29 filed 100,000 shares of common stock (par $1). Price—At market. Proceeds—For investment. Under¬ writer—None. D. John Heyman of New York is Presi¬ dent. ■ Reynolds Metals Co. March 12 filed 914,078 shares of common stock (par $1) being offered for subscription by common stockholders of record April 2, 1957 on the basis of one new share for each 11 shares held; rights to expire on April 16, 1957. Price—$42 per share. Proceeds—For expansion program. For exploration Co., Inc., both of New York for 450,866 shares. • non¬ Shop Rite Foods, Inc. (4/12) (letter of notification) 15,000 shares of com¬ stock (par $5). Price—$11.50 per share. Proceeds— mon For fixtures and inventory. Office — 617 Truman St., E., Albuquerque, N. M. Underwriters—First South¬ west Co., Dallas, Tex.; and Minor, Mee & Co., Albuquer¬ que, N. M. >.f 1 ' N. . • Shumway Uranium Mining Co. (4/12) March 26 (letter1 of notification) 200,000 shares t Roberts Co., Sanford, N. C. Feb. 28 filed 190,000 shares of common stock (par $1), of which 150,000 shares are to be sold for account of com- of com- Price—$1.25 per share. Proceeds—-For genf J corporate purposes/Office 65 E. 4th South St., Salt Lake City, Utah. Underwriter Wmslow, Cohu & StbtYork, N. Y. Offering Expected to be done ★ Socony Mobil Oil Co., Inc. April 10 filed $19,440,000 of interests in the company's Employees' Savings Plan, together with 360,000 shares of capital stock (par $15) which may be acquired pur¬ suant to said plan. • Southeastern March 15 Public Service Co. filed 92,500 shares of common stock (par 10 cents), being offered for subscription by common stock¬ . holders of record April 3, 1957, on the basis of share for each 10 shares held (with privilege); rights to expire per share. Proceeds — For Co., New York and an April on one new oversubscription 23. investments and other corporate purposes. Price—$11.2& in Underwriter subsidiaries — Bioren & Philadelphia, Pa. Southwest March 26 Acceptance Co., San Antonio, Texas (letter of notification) $300,000 of 6% deben¬ tures 1967. due additional Price—At face working capital. Co. of Lincoln amount. Proceeds—For Underwriter — First Trust (Neb.), and Beecroft, Cole & Co., Topeka, Kansas. Sperti Products, Inc., Hoboken, N. J. 29 filed $745,300 of 6% debentures due March 1, 1972 and 14,906 shares of common stock (par $1) being Jan. offered in units of stock, shares the Underwriters—Dillon, Read & Co. Inc. and Reynolds & Oct. 15 filed 900,000 shares of capital stock (par $1>, of which 200,000 shares are now outstanding. Price—To be Raymond Oil Co., Inc., Wichita, Kansas 29 filed 200,000 shares of common stock (par 25 cents). Price—To be supplied by amendment. Proceeds —For exploration, development and operation of oil and gas properties. Underwriter—Perkins & Co., Inc., Dallas, Jan. *—To (4/15-16) Feb. 26 (letter of notification) ajn. supplied by amendment. Proceeds —To acquire properties from Quebec Hydro-Electric Commission. Underwriters—Lehman Brothers and Allen & Co., in the United States; and Nesbitt Thomson & Co., Ltd.; Wood, Gundy & Co., Ltd. and Osier, Hammond & Tex. - mortgage bonds due Price—To be supplied by amendment. Proceeds— To acquire gas distribution and other related facilities in Nanton, Ltd. in Canada. May 1, 1989. • so"' well Inc.; of stock. Price—To be Underwriter—Blyth & Co., San Francisco and New 60,000 shares of • / to be offered in units of $100 of debentures and 4 shares (4/24) ; ; April 3 filed $30,000,000 of sinking fund debentures due Nov. 1, 1976. Price — To be supplied by amendment. Proceeds—To repay bank loans and for new construc¬ Northwestern Bell Telephone Co. (4/23) March 29 filed $30,000,000 of 32-year debentures • :• ^ Northern Naturai Gas Co. York. _ May 8. inventories; and for working capital and general corporate nurposes. Under¬ writer—None. Statement effective April 1. tion. - ■ stock., (letter of notification) March 28 privately. as 1980. Dealer-Managers—Paine, Webber,. F. S Moseley & Co., both of Boston, Mass. Postponed temporarily. Curtis on :• Quebec Natural Gas Corp. (4/17-1S) March 15 filed $25,000,000 of first of 21 tures York, NEES (par $5) of St. Paul 56% Security Savings Life Insurance Co. Proceeds—To retire tions, Now England Electric System Dec. 3 filed 819,000 shares of common stock to be offered in exchange for capital/stock (EDT) $125,000 of outstanding 15%'debenas a $173480 debt to Trans-Union Produc¬ and for working capital. Business—Tele¬ vision releases. Underwriter—E. L. Aaron & Co., .New loans. of up noon 200,000 shares are to be offered to public and 20,000 shares issued to underwriter. Price—$5 per share. Underwriter—Halsey, Stuart & Co. Inc., New York and Chicago. Offering—Indefinitely postponed. • — of which Bruns¬ bank Proceeds program. determined Pyramid Productions, Inc., New York Sept 27.filed 220,000 shares of common stock (par $1), Y ; / / $12,000,000 of 25-year sinking fund deben¬ dqe Jan. 1, 1982. Price—To be supplied by amend¬ Dec. of) be basis — (5/8) To repay bank loans Underwriter—For any by competitive bidding. Prob¬ able bidders: Halsey, Stuart & Co. Inc.; White, Weld & Co.; Equitable Securities Corp.; Kuhn, Loeb & Co. and Blyth & Co., Inc. (jointly); Lehman Brothers; Kidder,' Peabody & Co.; W. C. Langley & Co. and The First Bos¬ ton Corp. (jointly). Bids—Expected to be received 1 -! cent). ment work Co. trust bonds due 1987, and for construction '/National Lithium Corp., New York Feb. Edison stock stock common the on common stock (par $1) being offered to stock¬ holders of record April 5 on the basis of one new share for each two shares held (with an oversubscription pri¬ vilege; rights to expire about April 20. Price $5 per share. Proceeds—To capital and paid-in surplus. Office —Old South Life Bldg. (P. O. Box 376), Montgomery, Ala. Underwriter—None. April 1 filed $14,000,000 of first mortgage and collateral Dillon, Union Securities & Co.; White, Weld & Co;; Harriman Ripley & Co. Inc. Bids—Tentatively scheduled to May 28. Potomac Co. assessable — sion program of subsidiaries. Underwriter:—To be deter¬ mined by competitive bidding. Probable bidders: Halsey, Stuart & Co. Inc.; The First Boston Corp.; Eastman exchange for Lumber common shares of St. Regis stock for each share of Lumber company stock. The offer will be declared effective if 95% of the latter stock is deposited for exchange (and may be declared effective at option of St. Regis, if not less than 80% of the stock is deposited). March Plymouth Fund, Inc., Miami, Fla. Feb. 5 filed 500,000 shares of capital stock (par $1). Price—At market.-Proceeds—For investment. Under¬ writer Plymouth Bond & Share Corp., Miami, Fla. Joseph A. Ray vis, also of Miami, is President. April 4 filed $15,000,000 of sinking fund debentures due 1982. Proceeds—Together with bank loans, to be used to repay bank loans of certain subsidiaries and for expan¬ Tacoma • effective March 27. (5/28) / on • Roxbury Carpet Co. (4/18) March 27 filed 198,274 shares of common stock (par $1), of which 175,000 shares are to be offered 1,250 shares of class C cumulative pre¬ (par $57). Price—$97 per share. Proceeds —To R. M. Realty Co., who is the selling stockholder. Underwriter—Yates, Heitner & Woods, St. • (EDT) Underwriter—None. March 27 filed — a.m. machinery; for utilities; working capital; and other ferred stock stock. "Price—At par be received up to 11:30 equipment and publicly (50,* 000 shares on behalf of company and 125,000 for selling Underwriter—Market Securities, stockholders) and 23,274 shares are to be Inc., Salt Lake City, Utah.* offered in ex¬ change for the minority holdings of • Paul Hesse commop stock in 3-D Arts, Inc. (5 5) r Roxbury Southern Mills, Inc., a subsidiary. Price—To March 28 (letter of notification) 300,000 shares of com- ' be supplied by amendment. Proceeds—For moderniza¬ mon stock (par 10 cents). Price—$1 per share. Proceeds tion program. Underwriter—Paine, Webber, Jackson & —For machinery, equipment and working capital. Office Curtis, Boston and New York. — \ — v • r* —1250 Brookline Blvd., Pittsburgh, Pa. Underwriter— St. Louis Insurance Corp., St. Louis, Mo. Reilly, Hoffman & Sweeney, Inc., New York. general oil and gas properties. Feb. 18 (letter of ic National Fuel'Gas-Co. filed 75,000 shares of common stock. Price— ($100 per share). Proceeds—For site improve¬ and buildings in Israel; for process corporate purposes. Proceeds—For drilling test wells purposes. Business—To develop f 1 ments Corp., Salt Lake City, Utah 1,000,000 shares of common stock (par $1). per — Rogosin Industries, Ltd., New York March At .par Production Price—$1.25 ^ Monticello Associates, Inc. later. Overnite Transportation Co. March 19 filed 126,000 shares of common stock (par 50 cents), of which 25,000 shares are to be offered first to officers and employees for a seven-day period. Price— To public $13.30 per share; and to employees, $12.25 per share. Proceeds—To selling stockholders. Office—Rich¬ Paradox Underwriter—None, offering to through company's named • Feb. 4 filed Price—$3 per share.> Proceeds—For completion of plant, provide for general creditors and for working capital. • be Underwriter—Scott, Horner & Mason, Inc., Lynchburg, Va. Offering—Expected today (April 11). Dec. 26 filed 1,600,000 shares of capital stock (no par), of which 708,511 shares are subject to an offer of rescission. be made Underwriter—To mond, Va. Mississippi Valley Portland Cement Co. Office—Jackson, Miss. costs. panakis, of Miami, Fla., and Denis Cohvas, of Montreal, Canada, are large stockholders. v. first mortgage bonds due Proceeds—For construction program. Un¬ April 1, 1987. - of which of $100 debenture and two shares of and 10,906 being offered first in exchange for outstanding shares of 5% cumulative con¬ stock 54,530 vertible a $545,300 of the debentures are preferred stock (par $10) at the rate of one of preferred stock held. This April 22. The remaining $200,000 of debentures and 4,000 shares of common stock were pub¬ licly offered. Price—$100 per unit. Proceeds—For gen¬ eral corporate purposes, including working capital and for redemption of any unexchanged preferred stock. unit offer for each expires 10 shares on Underwriter—Smart, Clowes & Oswald, Inc., Louisville, Ky. Statement effective March 20. Standard Pressed Steel Co. (4/17) March 21 filed 200,000 shares of common stock (par $1), of which 190,000 shares are to be publicly offered and 10,000 shares offered to employees of company. Price— To be supplied by amendment. Proceeds—For working capital and plant expansion. Office — Jenkintown, Pa. Underwriter—Kidder, Peabody & Co., New Stevens York. Markets, Inc., Miami, Fla. (4/16-17) March 25 filed 100,000 shares of class A common stock' (par $1). Price—To be supplied by amendment. Proceeds —To equip a third super market and for working capital and other corporate purposes. Underwriter—R. S. Dick¬ & Co., Inc., Charlotte, N. C. ■ son , . _ Continued on . - ; page ■ 40 The Commercial and Financial Chronicle Continued jrom page 1 30 .'■.v. '• i-'k-.f i': \ (Hugo) Corp., New York shares of common Stinnes March 29 filed 530,712 v-:--: _ . stock (par $o), outstanding 988,890 common shares. Proceeds To the Attorney General of the United States. Underwriter—To be determined by competitive presentlv the of — Inc. of notification) 40,000 shares of common .stock (par $1). Price—$6.75 per share. Proceeds—For 'working capital. Office—-121 W. 20th St., Kansas City, Mo. Underwriter-—White & Co., St. Louis, Mo. Stuart Hall Co., March 5 (letter . Thursday, April 11, 1957 States Air Conditioning granted options to acquire the $550,000 bank loans, and for increased facili¬ ties and working capital. Office — St. Boniface, Canada. Underwriter—Straus, Blosser & McDowell, Chicago, 111. B. —To repay (4/22) March 29 filed 30,000 shares of common stock (par $1). Price—To be supplied by amendment. Proceeds—To re¬ duce short-term borrowings and for expansion program. Ohio Swartwout Co., Cleveland, Underwriter—McDonnell & Co., New York. 91,540 shares of capital stock March 29 filed (par $1), exercise of outstanding class B and class C warrants which are exercisable at $5.25 per share. Proceeds—For general corporate purposes. Un¬ derwriter—None. • Inc., Houston, Texas (4/22-26) shares of 6% convertible preferred Tex-Tube, March 29 filed 50,000 (par $10) and 50,000 shares of common stock (par Price—To be supplied by amendment. Proceeds— For capital expenditures and working capital. Under¬ writer—Moroney, Beissner & Co., Houston, Tex. the basis of one on Corp. -^Thompson Products, Inc. April 8 filed 125,000 shares of common stock (par $5) to be offered for subscription under the company's 1951 Stock 1956 and Option Plans for officers and key em¬ ployees of the company and its subsidiaries. Ores Corp. Titanium $250,000 of 6% con¬ (convertible on and after Oct. 1, 1958, into 100 shares of common stock for each $100 of debentures). Price—At face amount (in denominations of $100 and multiples thereof). Proceeds—For mining expenses. Office—9525 Georgia March notification) (letter of 18 debentures vertible April due Ave., Silver Spring. Md. E. Jefferson is President. 1, 1967 Underwriter—None. Jfe supplied by amendment. Proceeds — Bids For Under-j Alfred D. Laurence & Co.), Vitro Corp. of March 50 Jan. Miami, Fla. being cents) shares held as shares offered for the rate of of April of common stock (par subscription one new by common share for each five 2; rights to expire on April 16. Proceeds—To be used initially to borrowings. Underwriter—Blyth & Co., Inc., reduce bank New York. Feb. filed 19 of which Power Co. common are common (no par) stock stockholders (other than the parent, West Penn Electric Co.) of record March 21, 1957 on the one new share for each 14 shares held; rights to basis of on Price—$49.50 per share. Pro¬ — to be used for construction Underwriter—None. West Penn Electric Co., parent, owner of 3.346,367 shares, or approximately program. the 95%, of the outstanding West Penn Power Co. common stock, has agreed to purchase all of the shares not sub¬ scribed for by public stockholders. • Western Nuclear March one 27 filed Corp., Rawlins, Wyo. (4/16) of 5%% subordinated deben¬ $400,000 cent) to be offered in units of $1,000 of debentures and 1,100 shares of stock. Price—$1,011 per unit. Pro¬ ceeds—For capital expenditures and operating purposes. Feb. 27 common . Underwriter—Bosworth, Sullivan & Co., Denver, Colo, Western Uranium Corp. March 16 (letter of notification) 1,000,000 shares of com¬ stock (par fiye cents) to be offered as follows: 200,000 shares to present stockholders on a basis of one new share for each share held and 800,000 shares to mon the public. Price — To stockholders, seven cents per share; to public, 10 cents per share. Proceeds—For min¬ ing expenses. Office—139 N. Virginia St., Reno, Nev. nated debentures due 1960. Price To be supplied by $925,000 note and $2,500,000 of bank loans and for working capital. Under¬ writer—F. Eberstadt & Co., New York. « • Proceeds — To — retire a United Artists Corp., New York (4/22-25) March 29 filed 350,000 shares of common stock (par $1), of which 250,000 shares are to be offered for account of company Price — and 100,000 working capital, York. shares for selling To be supplied by amendment. stockholders. Proceeds — For Underwriter—F, Eberstadt & Co., New bentures first mortgage bonds, to repay bank loans and for ex¬ pansion program. Business—Meat packing firm. Un¬ derwriters—Smith, Barney & Co.; Glore Forgan & Co. and Hallgarten & Co., all of New York City, Offering— Indefinitely postponed. <• ■ Wrigley Properties, Inc. 12 it announced stockholders will vote was * / Scurities Co. * American European April increasing the authorized capitalization from 600,000 shares (consisting of 500,000 common shares and 100,000 preferred shares) to 1,000,000 common ,shares, without par value. It is probable that additional com¬ 24 on mon stock will be offered to common stockholders dur¬ ing the current year. Underwriters—Dominick & DornSwitzerland. inick in United States; and Pictet & Cie, in of record, but not beneficially, on American Trust Co., March 8 it was New York announced bank is offering to its stock¬ holders the right to of March outstand¬ '■ ing. capital stock subscribe for 50,000 additional shares on the basis of one new share for each as of Jan. 21; rights expire on April 30. five shares held Price—At par ($10 per share), Proceeds—For expansion program. Underwriter—None. Harvey L. Schwamm and' his associates, who acquired control in 1950, Will pur¬ chase unsubscribed shares. any Associated it Truck March 13 class A common Lines, inc. announced was sale stock (par $3) (4/29-5/3) of 125,000 shares of is planned the latter part May. Of the total 50.000 shares will 75,000 shares by selling stock¬ — For general corporate purposes. Business—A short haul motor com¬ mon carrier operating over 3,000 miles or routes in Illi¬ nois, Indiana, Michigan and Ohio. Office—Grand Rapids, Mich. • Underwriter—Cruttenden, Podesta & Co., Chi¬ cago, 111. | of April or early in be sold by company and holders. Price • — Atlantic City $10 per share. Proceeds Electric Co. April 9, Bayard L. England, President, announced that later this year the company will probably issue about $5,000,000 of convertible debentures. Proceeds—For con¬ struction program. Underwriter—May be determined by competitive bidding. Probable bidders: Halsey, Stuart & Inc.; Kuhn, Loeb & Co., American Securities Corpi. (jointly); White, Weld & Co. . (4/12) (jointly); The First Boston Corp. and (jointly); Eastman Dillon, Union Securi¬ ties & Co. and Smith, Barney & Co. (jointly); Lee Higginson Corp.; Blyth & Co.„ Inc. Drexel • 8c Co. Baltimore & Bids are Ohio RR. (5/9) expected to be received by the company on or about May 9-for the purchase from it of $3,585,000 equipment trust certificates to be due annually in 1-to15 years. Probable bidders: Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler. t Berks County Trust Co.. Reading, Pa. ACF-Wrigley Stores, Inc. April on April 6 Co., both of Milwaukee, Wis. March 6 filed 2,069,159 shares of common stock (par $1) to be offered for subscription by security holders of 909 shares on and Shields & Co. filed $20,000,000 of 20-year sinking fund de¬ due 1976. Price—To be supplied by amend¬ Proceeds — To redeem presently outstanding Aug. 28 ment. Stockholders and Wood, Struthers & Co. Wilson & Co., Inc. amendment. and The Marshall Co. Underwriter—None. None. Corp., New York (4/22-25) $10,000,000 of 6% convertible subordi¬ \ plans to issue andt company approving an authorized issue of 30,000 shares of preferred stock. Underwriters—Emch & Co* being offered for subscription tures, series B, and 440,000 shares of common stock (par filed (5/9) 1, 1957, 380,532 of the 459,379 common shares shares of 251.606 12,579 shares by minority drawn. 29 Co. announced on Latter owned West Penn Metals & Chemicals, Inc. United Artists Power was vote to are March Price—$16 per share. 22 filed 1,615,500 shares of common stock and 1,126,500 common stock purchase warrants, of which 250,000 shares of stock and 250,000 warrants are to be offered publicly in units of one common share and one warrant. Price—$2.01 per unit. Proceeds—For construe-, tion of plant and other facilities; for equipment; and working capital. Office—Wallkill, N. Y. Underwriter— M. S. Gerber, Inc., New York. Statement to be with¬ • it 21 ferred stock series A (par $20). ^ . America 178,646 filed 13 stockholders at Jan. March Stuart & Co. Inc.; Salomon Bros. & Hutzler, Alabama of America*^ N. Y.) Jan. 29 filed 150,000 shares of common stock (par 50 cents). Price—At market, but not less than $3 per share. Proceeds—For mining operations. Underwriter—None. April 16, 1957, ceeds—About $12,000,000 Underwriter— May 16 for the purchase from it of about $3,000,equipment trust certificates. Probable bidders: Hal¬ pany on Venezuelan Sulphur Corp. Pipe Line Corp. outstanding preferred stock. (5/16) RR. tentatively expected to be received by the com* per expire and are 4 (4/17) March 27 filed $50,000,000 of first mortgage pipe line bonds due 1977 and 100,000 shares of cumulative pre¬ ferred stock (no par) stated value $100 per share. Price —To be supplied by amendment. Proceeds — For con¬ struction program and to repay bank loans. Underwriters —White, Weld & Co., and Stone & Webster Securities Corp., both of New York. issued Mortgage Corp., Chicago, III. reported this company (to be surviving merger of First Mortgage Corp. Jacobs & Co. of Chicago) plans a public was share for each two shares held. new ($10 Proceeds—For capital expenditures and expendi¬ tures for exploration activities; also for other general corporate purposes. Underwriter—None. Paradise, Inc., Phoenix, Ariz. shares of common stock (par $10) to be ■ sell $14,500,000 first mortgage bonds. Proceeds—To re¬ Price—At par pay bank loans and for new construction. Underwriter share). Proceeds—For expenses for operating a public utility (telephone and telegraph). Underwriter v" —To be determined by competitive bidding. Probable —Daugherty, Butchart & Cole, Inc., Portland, Ore. ' bidders: Halsey, Stuart & Co. Inc.; Eastman Dillon, Union Securities & Co., Equitable Securities Corp. and Vanderbilt Mutual Fund, Inc., Los Angeles, Calif. Drexel & Co. (jointly); Lehman Brothers; Harriman Dec. 31 filed 50,000 shares of common stock (par $1). Ripley & Co. Inc. and Goldman, Sachs & Co. (jointly); Price—At market. Proceeds — For investment. Under¬ Blyth & Co., Inc. and Kidder, Peabody & Co. (jointly); writer—Vanderbilt Mutual Fund Management Corp., 458 Morgan Stanley & Co. Bids—Expected to be received So. Spring St., Los Angeles 13, Calif. up to 11 a.m. (EDT) on May 9. Registration—Planned Venezuela Diamond Mines, Inc., Miami, Fla. for April 12. V Aug. 31 filed 1,500,000 shares of common stock. Price— Aluminum Specialty Co. At par (20 cents per share). Proceeds—For exploration March 18 it was announced company plans to issue and and mining operations in Venezuela. Underwriter—Co¬ sell 15,000 shares of $1.20 cumulative convertible pre¬ lumbia Securities Co., Inc., of Florida (name changed to one dian). Jan. 11 filed 50,000 it 4 a * Alabama Great Southern (par $1). filed 800,000 shares of capital stock To be — held; sey, Charles first offered for subscription by common and preferred stockholders. Price—$15 per share. Proceeds—To retire new per Valley Telephone Co., Silverton, Ore. 12 (letter of notification) 12,811 shares of com¬ mon stock to be offered to stockholders on the basis of March 28, 1957 at the rate of one new share for each six shares held: Price—$2.50 per share (Cana¬ Turf announced that it plans to retire corporation following March - Tripac Engineering Corp. (letter of notification) 100,000 shares of class A stock (par 10 cents). Price—$1.50 per share. Proceeds—For working capital; machine tools; equip¬ ment and proprietary development. Office —4932 St. Elmo Ave., Bethesda 14, Md. Underwriter—Whitney & Co., Inc., Washington, D. C. Co. ($15,000,000 Advance Dec. 000 of record • Transition common writer—Schiwabacher & Co., San Francisco, Calif. ^ Trans Empire Oils Ltd., Calgary, Alberta, Canada Gas shopping centers and Detroit, Mich. Underwriter- — at Dec. 31, 1956) out of the long-term financing in 1957. On Sept. public offering of 400,000 shares of common stock was made through Blyth & Co., Inc. and Mer¬ rill Lynch, Pierce, Fenner & Beane and associates. subscription by class A working capital and general corporate purposes. April 9 filed 436,291 shares of coimmon stock (par $1.25) to be offered for subscirption by common stockholders Transcontinental ACF- of warrants Proceeds—To acquire, de- rights to expire on April and Irwin share. Proceeds—For retire¬ if offering of $1,000,000 class A 6% participating convertment of 7% cumulative preferred stock and for subscrip¬ V ible stock (par $1). Underwriter—Baker, Simonds & Co., tion to proposed new stock offering td be made by Rey¬ Detroit, Mich. Offering—Expected in April. nolds Metals Co., in which latter company United States Air Products, Inc., Emmaus, Pa. Foil Co. and Reynolds Corp. owns a 50.7% stock interest. mr Underwriters—Dillon, Read & Co. Inc. and Reynolds & ,rFeb. 26 it was reported company may offer to its com* mon stockholders some additional common shares. UaCo., Inc., both of New York for 701,074 shares. ^ dtrwriter—Reynolds & Co., New York. • United States Leasing Corp. (4/15-19) Price—$28 Price (letter of notification) 380,000 shares of com¬ mon stock (par 10 cents). Price — 75 cents per share. Proceeds—For inventory, working capital, etc. Businesi —Electrical heating. Office—26 Avenue B, Newark, N. J. Underwriter—Eaton & Co., Inc., New York. B subscription share. warehouses, Office Steel loans proceeds of record April 2, 1957 class B share for each seven class A shares B class 1957. March 22 29 class of per New York. 19, last year, shares of April 10, 1957 120,000 shares on held; stock: and 75,000 shares to hold¬ stock March 22 the company bank Co. 746,270 filed as 1957), Prospective Offerings * Acme and class B common stockholders of stock Thermoray Allen & Co., remaining 500.000 shares (par $1) being offered for stock $1). June Foil States 12 common common locations. store indefinite. 16, which are issuable upon Corp. Office—Philadelphia, Pa. Underwriter—Mortimer Burnside & Co., Inc., New York, Offering—Date United April 25, on Wrigley. Price—S2 velop and operate poses. March of ers Price—At market prices. Pro¬ ceeds—For working capital and general corporate pur¬ and/or National Petroleum Co. Texas ACF-Wrigley Sept. 27 filed 600,000 shares of common stock (par 10 cents), of which 50,000 shares are to be offered to em¬ ployees, distributors and dealers; 50,000 shares, plus any of the unsold portion of the first 50,000 shares, are to be offered to the public; and the underwriter will be for reoffer to the public. stock held common 57,250 shares to be offered holders of options to purchase • Supercrete, Ltd. (4/22-26) April 1 filed $1,000,000 of convertible subordinated de¬ bentures. Price—To be supplied by amendment. Proceeds • • . the basis of 30 shares for each $1,000 of debentures Underwriter—None. construction program. and loans ACF-Wrigley (rights to expire March 22 filed 311.557 shares of common United bidding. of Haven, Conn. stock (no par) to be offered for si»ibscription by common stockholders of record April 10, 1957 on the basis of one new share for each eight shares held; rights to expire dn May 2. Price—$22 per share. Proceeds—For payment of bank Illuminating Co., New United ' . (1728) 40 the following basis: 1,816,the basis of one share for each two shares on 2 it was announced Bank plans to (4/15) offer to its stockholders of record April 8, 1957 the right to subscribe 'Volume 185 Number 5628 The Commercial and Financial Chronicle : . .. c* (1729') ' 41 or before May 15, 1957 for 28.611 additional shares capital stock (par $5) on the basis of: one new share each 20 shares held.;. Price—$24.50 per share. Proreeds—To'increase capital and surplus. ' ■ " • on ' Co. Inc.; The First Boston Corp.; Blyth & Co., Inc.; DilIon, Read & Co. Inc.; Blair & Co. Inc., and Baxter, Williams & Co. (jointly); Glore, Forgan & of for Boston Edison Co.- •*- (6 5*13) construction • > . ^Bridgeiwrt Gas Co. ApriL R it' T}' Nr.. •' /„• A Brothers and Allen & its5 to during the first half of this plans an Feb. • offering of announced was a class of financing. Dillon,^ Read• & Co., Inc., • pipe line in South ^Carolina New York, plans to construct Horner & / , . Carolina Telephone & Telegraph Co. s March 11 it / a Mason, , Inc., ' Feb. 1 it ; Hudson Gas securities new Electric ■ Illinois Corp. h this it . w^as refund announced bank loans and for jj 13. total a / common - . Light Co. announced company amount if $50,000,000 was was issue and •" bank loans and for construction pro- « Telephone 3 : * . * v • ■ - ( General Tire & • Rubber Co'. ..k- ;3 Dec; 4, M. G. program.:; O'Neil, Executive Assistant to the Presldent, said the management was working on a plan te revamp the capital structure and that the company would like to * issue of preferred stock. $18,000j000 will be put into capital investments during the fiscal, year to end Nov. 30, come with . up one He added that close to 1957. plans tp sell not less Consolidated Natural Gas Co. ''j' plans to Paine, Webber, Jackson & Curtis, and Stone & Webster Securities Corp., both of New York; and Mitchum, Jones ; & .Templeton of Los Angeles,. CMif. ^ : '5 ./ ■ ' Georgia Power Co. , $20,000,000 of first mortgage bonds, possibly this Fall, depending upon market conditions, Proceeds—For Feb. 11 it (S/2i) : company was announced company plans to issue and : sell, probably in June, first to common stockholders. $45,000,000 of convertible debentures.^ Underwriters Underwriter—To be determined by competitive bidding. Probable bidders: Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler; Blair & Co. Incorporated. Bids—Expected to be received up to 11 a.m. (EDT) on May 28.. Registration—Planned for April 25. X plans, before to issue approximately $12,000,- reported was repay General Proceeds construction it 4 March 18 it ~ Jan. 21 suance it -.-r ... (6/6)^.... the announced was and sale of '■ . ' c /.v. - / ,1 is planning is- company . $15,500,000 first mortgage b°nds- Pro¬ ceeds — To repay bank loans and for new construction. Underwriter—To be determined by competitive bidding. Probable bidders: Halsey, Stuart & Co. Inc.; Morgan. , Stanley & Co.; Blyth & Co., Inc., Kidder, Peabody & and Shields & Co. (jointly); Equitable Securities Corp. and Eastman Dillon, Union Securities & Co. (jointly); Harriman Ripley & Co. Inc. Bids—Tentatively (6/11) plans to issue and sell 25-year debentures » Co. this year, viz.: $25,000,000 in June and $25,000,000 in the Fall. Underwriter —To be determined by competitive expected to be received up to 11 bidding. Probable bidders: Halsey, Stuart & Co. Inc.; White, Weld & Co. and Paine, Webber, Jackson and Curtis (jointly); Morgan, Stanley & Co. and the First Boston Corp. (jointly).. Bids—To be received up to 11:30 a.m. (EDT) on June 11. (EDT) a.m. on Government Employees Corp. (6/3) March 12 it was announced company plans stockholders about June 3 the common 4 / reported company plans to issue and between $18,000,000 to $20,000,000 first Detroit Edison Co. 3 3 mortgage bonds. Proceeds—To repay bank loans and for March 18 it was announced company plans to sell in new construction. Underwriters—To be determined .1957 about $60,000,000 of hew securities. Proceeds—For by competitive bidding.; .Probable bidders: Halsey, Stuart ; construction program (estimated to cost about $89,000^000 & Co. Inc.; Morgan this year). Stanley & Co,;: Kuhn, Loeb & Co.; Underwriter—For bonds, to be determined Eastman Dillon, Union Securities & 3 Co.; The First Bos¬ by competitive bidding. " Probable bidders: The First March. 18 sell May on Underwriter—To. be determined by competitive bidding. Probable bidders: Hhlsey, Stuart & Co. Iiic.^ White;; Weld & Co.; Merrill Lynch, Pierce, Fenner & Beane and Kidder, Peabody & Co.: (jointly); The First Boston Corp.; Blyth & Co., Inc. and Lehman Brother* (jointly). Bids—Expected to be received on May 21.' construction stock). Proceeds—For construction program. Underwriter—For any debt secu-. rities, Kidder, Peabody & Co.; for common stock, Kidder, Peabody & Co. and Estabrook & Co., both of New York. Central announced gram. program. Underwriter — Putnam & Co., Hartford, Conn.; Chas. W. Scranton & Co.j New Haven, Conn.; and Estabrook & Co., Boston, Mass. ^ (two-thirds in debt securities and the balance from sale of be $15,000,000 of first mortgage bonds due 1987.' Pro- ceeds—To than announced that the company the middle of the year, (100 of & a ^ share$ of basis; rights to 1-for-lO on To '/Florida Power & Light Co. sell (S/2S) r 3 ; company plans to issue and company was was — Pierce, Fenner & Beaner ' Kidder, Peabody & Co., both of New York. March finance 'Connecticut Light & Power Co. Feb. 18, it was reported privately. Central to $8;000,000 first mortgage bonds dUe 1987. —To announced company plans to issue and sell some debentures in an amount which would permit Fubtetantial reduction of its bank loans (which approxi¬ mate $12,200,000). Previous debenture financing was done order stock to March 28 it sell - at an. estimated cost of about $8,700,000. Underwriter—Scott, Lynchburg, Va. debentures in Community Public Service Co. ; t .-Carolina' Pipe- Line Co. March 11 it was reported company additional Columbus & Southern Ohio Electric Co. /Feb. 21 it Was reported that company;plans to issue and -sell in the Fall $8,000,000 of cumulative preferred stock. (Underwriter—Dillon, Read & Co. Inc., New York. / . handled previous preferred stock financing, while Kid¬ der, Peabody & Co. underwrote General Tire & Rubber Co. of /; $15,000,CtOO, in connections -with its proposed recapitalization plan"; There are* no specific objectives involved.^ Control —Acquired by General Tire & Rubber Ctt'/ih- 51956. Underwriter^-/ Price 'c Underwriters—Merrill Lynch, and - stockholders^ (see above). UnderwTiter— To be determined by competitive bidding. Probable bidders: Halsey, »Stuart & Co. Inc.; Morgan Stanley & Co.;. Merrill Lynch, Pierce, Fenner & Beane and White, Weld Go;^jointly). -A/y'-'v*."- t stockholders new sale mon on May 7 will 100,000 shares of cumulative preference, stock (par $100) and on increas¬ ing the authorized outstanding indebtedness to authorizing (S/fl41 h' - stock common expire June 3. approximately $87,000,-000, which will also be financed, in part, through the offering of 1,675,415 shares of com¬ -* on 1- additibnal 18, company announced that it plans the issuance and Proceeds—To pay. off $700,000 at ; Dec. 31,-1956). (amounting to Smith,- Ramsay-& Co. Inc.; Bridgeport, Conn.; and Chas. W. Scranton & Co;, New Haven, Conn. vote A1 r stockholders /; its 1957 construction program, which is expected to cost common UnderwrHers Feb; 27 it Co., both of New York. fi *.r h March 29 it was announced that company plans to offer to its stockholders about May 14, next, 255,813 ih Florida Power Corp. ■ ;/•'/ Columbia Gas'System,'Inc. r year. loans / -... . ,. ; stock common •/. ..•<♦•••• reported company was additional hank i Brothers; Harriman Ripley & Co.. Inc.; White, Co.;Bids—Expected in first or second week, of Weld & White, .. 'f of $1 program. Underwriter—To by competitive bidding. Probable bideterssHhlsey, Stuart & Co. Inc.; The First Boston Corp.; June:. ■■, plans to offer publicly $7,800,000 of interim notes and 678,900 jshares par stock in units. (Common stock not sold in units would be purchased by Delhi-Taylor Oil Corp., or its stockholders at an average price of $10 per share.) ; Pro- ' ceeds—Together with funds from private sale of $40,000,000, for construction program. Underwriters—Lehman . determined Lehman ,/ J • March financing. tee > « 14, D. C. McKee, President, announced company plans to issue and sell some additional bonds this yeaur. : Proceeds—To retire bank loans ($2,200,000 at Dee: 31, « 3956) and for construction program. Underwriters—Previous bond financing was done privately. Coastal Transmission Corp. 6 it was reported the company March 19 it was announced that company may issue and sail $25,000,000 of first mortgage bonds. Stockholders to vote'{April 30 on approving proposed new Proceeds*—For Co.; Weld & Co. Empire District Electric Co. March . „ June §1 to offer to right to subscribe -*'• for approximately $500,000 of convertible capital deben¬ 1967.- Underwriters—Johnston, Lemon & Co., Washington, D. C.-r'..-y :A :V / :!i tures due Fall . - Gulf States ' March 4 it was reported company plans to issue and $16,000,000 first mortgage bonds late in June. Profepay bank loans and for construction pro- • gram. Underwriter—To be determined by competitive : bidding. Probable bidders: Halsey, Stuart & Co. Ine.; sell • ton Corp.; Harriman Ripley & Co. Inc.; Merrill Lynch, Pierce, Fenner & Beane and Stone & Webster Securities Corp; (jointly). 3. V 3 Boston • Central Louisiana Electric Co., Inc. the Underwriter—In year. benture offering, 1954, convertible a Stuart & Co. Inc. (jointly); v.':.,-; March 15, Frank H. Coughlin, President, announced that new money requirements for 1957 are estimated at 10,000,000 and that the company contemplates the sale of an issue of convertible debentures early in 1957 and issue of first mortgage bonds during the latter months Du the f Corp. .arid'Halsey, Mont March 20 it offer its announced stockholders the to intends to subscribe for common stock on the basis of one new share fo reach three shares held. Proceeds—To help pay for cost of acquisition of radio station WNEW. Under¬ de¬ underwritten by Kidder, Peabody writers—Kuhn, Loeb & Co. and Carl M. Loeb, Rhoades placed privately through Kid- ." & Co., both of New York. * 'er, Peabody & Co. and White, Weld & Co. A Eastern Gas & Fuel Associates * Central was Co. Last bond issue Maine irch 30 W. F. was Power Co. •ompany plans to issue and of quarter bonds. gage Dec. t 1957 To April 3 it was announced company may need additional capital of between $25,000,000 and $35,000,000 during the next two years. Underwriter—For any bonds to be de¬ , Wyman, President, announced that the sell sometime in $18,000,000 of first the second and general mort¬ Proceeds—To repay bank loans ($10,500,000 31,-1956) and for new termined be determined rby competitive bidding. Probable Halsey, Stuart & Co/Inc.; Blyth & Co., Inc. Kidder, Peabody & Co. (jointly); The First Boston El idders: nd orp. and Coffin Feb. nd w --*sar- +•■> one rust certificates. Inc.; o. - Salomon Probable Bros. & '■ . dated Feb. 'Chicago, Rock Island & 1, 1957 and due o. expected Cleveland ov. to an Proceeds for each 15 Paso 26 it common Electric was Co. shares held repay bank loans York, acted stock offering last year. J company and plans issue to for • and Proceeds construction (jointly).-Bids—Expected to be received (EDT) on May 15. '* in the Summer of To^ rdpayrbank ioans -and for constructiBdorwritor^-Tb be determined by com- bidders/ -Halsey, Stuart & new program. up to 11 a.m. ' Utilities Co. was proximately reported company plans to raise ap$7,000,000 through the sale of additional stock. Proceeds—To repay bank loans and for construction. Underwriter—To be determined by April 8 it : was reported (5/1SK Corp.; Carl M. Loeb, Rhoades Offering—Expected in June. : Co. & company plans the sale of 20,000 (no par). Proceeds $2,000,000, to be used for construction program. Underwriter—To be determined by competitive bidding. Probable bidders: Stone &r Webster Securities Corp.; Merrill Lyrfch, Pierce, Fenner & Beane; Eastman Dillon* -'.Union Securities & Go.; Kidder, Peabody'& Co.; White, ■i Weld & Co., and Shields & Go? ( jbintly ). Bids—Expected \to-be.received up to 11 a.m. (EDT) 00 May 15.* - . . Hilo Electric Light sell was Co., Ltd. (Hawaii) announced company plans to issue and $2,000,000 of first mortgage bonds, series F, at ari interest rate not was 13 to exceed 6%. done privately.,. it Previous bond financ¬ „ . Lighting & Power Co. was reported company may offer late this exaqjt amount, timing, etc. has not yet been determined. Securities Union - • Underwriter—To be determined by competitive bidding. bidders: Halsey, Stuart & Co. Inc.; Equitable Probable Corp.; Lehman Securities Co. & Brothers, Houston Texas Gas & Eastman Salomon and (jointly); Lazard Freres & Co. and (jointly); Kidder, Peabody & Co. Oil Bros. Blyth Dillon, Hutzler & & ^ Corp. Co., • Inc. v: March 6 it was reported that company plans to offer publicly $22,405,556 of 5Vz% interim notes (convertible into preferred stock) and $18,241,944 of common stock in units. ent Part of stockholders common, at struction program. $10 stock will be offered to pres¬ share. per Proceeds—For ; ii 1i :l! ! t con¬ Underwriter—Blyth & Co., Inc., San Francisco and New York. ' -■ ' . * Illinois Central RR. (4/25) Bids may be received by this company on April 25 for equipment trust certificates. additional shares of preferred stock —About - Stone & Webster Securities Ihe purchase from it of about $9,600,000 * El Paso Electric Co. - .competitive bidding. Probable bidders: Merrill Lynch, Pierce, Fenner & Beane and Lehman Brothers (jointly); 3 . it Fall approximately $25,000,000 first mortgage bonds, but as Lynch, Pierce, Fenner & Beane; Stone & Webster Se¬ curities Corp.: Equitable Securities Corp.; Kidder, Pea¬ body & Co., Shields & Co. and White, Weld &-Co. " States 4 common Feb. (probably with; (5/15) reported Gulf March Houston plans to offer to its about record Underwriter—To be determined by competitive bidding. bidders: Halsey, Stuart & "JCo. * Inc.; -Merrill reported company plans to issue and sell ^ogram. "tive 'bidding. company be received ~,006j000- bf Tirst mortgage bonds 957/ of Co. and A. C. Allyn & Co. Inc. (jointly); Stone Securities Corp.; Lee Higginson Corp. ' Probable - Electric-1 nominating Co. 12 it was —To .. Pacific Ry. (5/14) by this company on 14 for the purchase from it of $3,000,000 equipment > certificates. -r Probable • bidders: Halsey, Stuart & Inc.;. Salomon Bros. Hutzler. / [ are reported & Webster ing (5/7) &eH''2fotmtr$6?90e#00 cf first mortgage bonds. ' mi-annually from Aug. 1, 1957 to and including Feb. i 1967.- Probable bidders: Halsey, Stuart & Co. Inc.; alomon Bros. & Hutzler; Baxter & Co. ' ids share new El Feb. ids will be received by the company up to noon (EST) n April 16 for the purchase from it of $4,200,000 of uipment trust certificates was stockholders dealer-manager for «*....■•* 3" it Co. & . Co. March 9 it bidders: oversubscription privilege). Proceeds — To reduce bank loans and for new; construction Dealer-Manager— & Webster Securities Corp., New Cincinnati, New Orleans & Texas Pacific Ry. (4/16) 26 Electric Stone it of $6,000,000 equipment bidders: Halsey, Stuart & Hutzler. Probable an Chicago, Milwaukee, St. Paul & Pacific RR. (5/1) are Expected to be received by this company on 1 for the purchase from competitive--bidding. May 7, 1957 the right to suoscribe on or before May 21 for 119,522 addi¬ tional shares of common stock (par $5) on the basis of ids ay Paso common & Burr, Inc. (jointly); Harriman, Rip& Co. Inc.; Merrill Lynch, Pierce, Fenner & Beane White, Weld & Co. (jointly); Salomon Bros. & Hutz- ey by Halsey, Stuart & Co. Inc.f Blyth & Co., Inc.; White, Weld & Co., and Kidder, Peabody & Co, (jointly). construction. Underwriter Pierce, Fenner and Beane and White, .(jointly); Salomon Bros. & Hutzler ahd Eastman Dillon, Union Securities & Co. (jointly); Kuhn, about 300,000 shares of Lynch, & Loeb that corporation right Merrill Weld - Broadcasting Corp. was ~ cceds—To Coffin & Burr, Inc., and Spencer Trask & Co. (jointly). Bids — Now expected to be received in latter part of June. "... ' \ ' " r Utilities Co. Probable bidders: Halsey, Stuart & Co. Inc.; (Salomon Bros. & Hutzler. / ^ » Illinois Power Co. Feb. the directors approved, subject to'stockholder approval, an increase in the apthorized serial preferred stock (par $50) from 1,000,000 shares to 1,600,000 shares. 7, Underwriters—Merrill ana The First Boston Lynch, Pierce, Fenner & Beane Corp., both of New York. ti. 1 * ;» Continued on page 42 > 42 x The Commercial and Financial Chronicle (1730) Continued from 41 page ■ 1987. .//Y • it Indiana Harbor Belt RR. (5/15) are tentatively expected /to be received Bids by this May 15 for the purchase from it of $8; 125,000 first mortgage bonds due 1982. Underwriter—To be de¬ termined by competitive bidding. Probable bidders: Hal- Stuart & Co. Inc.; Salomon Bros. & v Hutzler. Match Power & Light Co. H. T. Prichard, President, announced that pres¬ ent plans contemplate an issue of $6,000,000 of preferred stock some time in 1957 if market conditions make it issue of $8,000,000 in bonds in 1958. Tem¬ bank loans are available and probably will be porary an utilized, during at least parf of 1957. Additional secu¬ rities will need to be sold in 1959 and 1960, amounting to approximately by competi¬ it ; 4 reported was determined - Pacific - company competitive /bidding., Probable bid¬ & Co. Inc.; Smitn, Barney & Co. and Blyth & Co.; Inc. (jointly); White, Weld & Co. and vLehman Brothers -(-jointly)•v:' ->-• YY-*"Y/. ; y YYders. Halsey, and ____ for ' construction. sell by determined Peninsular approving increase in~the authorized common an 2,500,000 to 4,000,000 shares*(par $5). derwriter— Butcher & Sherrerd, < Philadelphia, handled last equity financing. stock from March 4 it announced company plans to was Un¬ March Pa., to sell about new . Pierce, Fenner & Beane and Kidder, Pea(jointly); White, Weld & Co. and R. W. Pressprich & Co. (jointly); Salomon Bros. & Hutzler; & Co. • Iowa Gas Electric Co. & reported company now expects to issue was and sell in the second quarter bonds. mortgage for of 1957 $11,000,000 of first retire bank loans and Proceeds—To construction. new Underwriter—To be • "a l-for-6 basis. on Proceeds—Together with (probably privately),: to y f" Pennsylvania Electric Co. 1/ 12 it was announced company plans to issue and, 7, $6,000,000 of first mortgage bonds., Underwriter-^ r. . sell be To determined bidding.. competitive by Probable , bidders: Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce,, % Fenner & Beane, Eastman Dillon, Union Securities & j Co. and White, Weld & Co. (jointly); Equitable SecuriCorp.; The First bos ion uorp.; Harriman Kipiey & Inc.; Kuhn Loeb & Co. t] Y. V,, ties up $8,000,000 convertible notes or debentures in the near Proceeds—For reduction 4 of short-term debt, * Pennsylvania RR. ' ■ .■r-V] XY/Y. are tentatively expected to be received by the com- bids /: / X « V pany some time in May for the purchase ironi it of $ir- J 740,000 equipment trust certificates. Probable bidders: Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler. New England Electric System ? Pepsi-Cola Mokan Bottlers, Inc. (4/15) > announced company plans to merge March 20 it was announced company plans to issue and : Its subsidiaries, Essex County Electric Cof, Lowell Elec¬ sell 60,000 shares of common stock (par 50 cents). Price . tric Light Corp., Lawrence Electric Co., Haverhill Electric $5 per share. Proceeds—To acquire and operate select*-** Co. and'Amesbury Electric Light Co., into one company. edr Pepsi-Cola plants in the Midwest. Office — CoffeyThis would be foUowed by a $21V000,000 tost mortgage 1:! vin Kansas. Underwriter — G. F; Church & Co.,' St. bond issue by the resultant company, to be known as Louis, Mo,. Offering—Expected between now and April ... Marrimack-Essex Electric Co. Underwriter—May be determined by competitive bidding. Probable bidders: Philadelphia Electric Co. * < Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Company: Feb. 14 it was announced company plans to offer about Salomon Bros. & Hutzler, Eastman Dillon, Union 600,000 shares of common stock to its stockholders auout / Securities & Co. and Wood, Struthers & Co. (jointly); the middle of tne year on a basis of one new share for » Lehman Brothers; The First Boston Corp.; Equitable each 20 shares held. Proceeds — For construction proSecurities Corp.; Merrill Lynch, Pierce, Fenner & Beane, gram. • Dealer-Managers -r~ Drexel & Co., Philadelphia, r Kidder, Peabody & Co. and White, Weld & Go. (jointly). Pa., and Morgan Stanley- & Co., New York, N; Y. - : in half of 1957. " Pi** m Smith, Barney & Co. For stock: Kidder, Peabody & Co. Bids—Expected to be received up to 11 a.m. (EDT) on May 22 for bonds. April 1 it ■ Sept. Co. plans to issue >?■'* ley & Co., and Coggeshall & Hicks, both, of New York. ■/ City. YY"Y;: \ ,,:j' > Inc. company - Jan. 3, 1956, it was Merrill Lynch, body announced was ,-.<•* finance Hew .construction Underwriters —Morgan Stan- working capital and other corporate purposes. Under¬ writer—May be Charles Plohn & Co., New York. securities ($20,000,000 of first mort¬ gage bonds and about $9,000,000 of common stock). Underwriters—To be determined by competitive bidding. Probable bidders: For bonds: Halsey, Stuart & Co. Inc.; $29,000,000 of it 4 Associates, stock mon Probable bidders: future. (5/22); Interstate Power Co. Telefilm National Telephone Co. funds from proposed bond sale Halsey, Stuart & Co. Inc.; Blyth & Co., Inc., Merrill Lynch, Pierce, Fenner & Beane and Kidder, Peabody & Co. (jointly); Blair & Co., Incorporated. ■//yY'. it International Utilities Corp. March 15 it was announced stockholders will vote April on competitive bidding. by debt borrowings and stock issues. j" March 28 it was announced company plans to offer to its ; common stockholders 189,844 additional shares of com¬ of first by - -/ ■ mortgage bonds or convertible before June 30, 1957. Underwriter—To be debentures writer—Morgan Stanley & Co., New York. 17 company by American Tele- / phone & Telegraph Co. Underwriter—For any bonds,, to,. ) .be determined by competitive bidding. Probable bidders: ;■ HaJsey, Stuart & Co. Inc.; Morgan Stanley ■& Co. x; Stuart 810,000,000 , 14, that About 90% of Pacific's stock is owned . $200,000,000 of additional capital stock, following pro¬ posed split up of the present outstanding shares on a 2-for-l basis. Proceeds—For working capital. Under¬ Telephone & Telegraph Co. James S. Cantlen,: Vice-President, announced plans to spent $159,000,000 in 1957 and Jan. be financed in part, Minneapolis & St. Louis Ry." (4/23) Bids will be received by the company up to noon (CST) $14,000,000^ Proceeds—Jo repay bank* new _ r $157,000,000 in 1958 for expansion and improvement 'to ; Underwriter-r-May be April 23.for thepurchase from JL. of $2,7W,000 e<luipLehman Brothers, Goldman, Sachs & Co. and The First 4 ment .trust' certificates, series A dated May 10, 1957, to mature annually in l-to-15 years. Probable bidders: Boston Corp., who underwrote last equity financing. ~ Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.f' International Business Machines Corp. -(5/21) ; Montana-Dakota Utilities Co. YY Feb* 26 it was announced company plans* to offer its stockholders of record May 21, 1957, approximately March 14 it was reported company plans to issue and loans Thursday, April 11, 1957 . Beane; Lehman Brothers and Riter & Co. (jointly);,t,i Blyth & Co^ inc.; Tne First Boston Corp.; Kidder, Pea- y body & Co. and White, Weld & Co,((jointly). Bids—.y Expected to be received on June 4. / ' / : - be . & Probable plans to issue and sell between $25,000,000 and $30,000,000 of; first mort¬ gage bonds before Summer. Proceeds—To repay bank loans and for construction program. Underwriter—To Nov. 21, feasible, and bidding. Michigan Consolidated Gas T Indianapolis determined be To — bidders: Halsey, Stuart & Co. Inc.; White, Weld & Co.; Blyth & Co., Inc.; Kidder, Peabody & Co. and Drexel & Co. (jointly); The First Boston Corp. Bids—Not expected to be received until sometime in April or May, 1957. ; * / > •; ; ; company on sey, Underwriter tive . determined rk/v »tr»vii+ Offering—Expected Probable bidders: Halsey, Stu¬ Inc.; Kuhn, Loeb & Co.; Glore, Forgan & Co.; The First Boston Corp.; Harriman Ripley Conine.; Eastman Dillon, Union Securities & Co., .and. White, Weld & Co. (jointly); Dean .Witter & Co.? Lehman Brothers; Equitable Securities Corp.; Blyth & Co., Inc. by competitive bidding. 4-/"* AAmrtnvnr K/i IrMAtir*"* T ■ '' . .. first Philadelphia Electric Co. : ~ v Power &'Light CoY ' Feb. 14 it was also announced company plans to issue Sept* 12 it was announced company plans to issue and -and sell in the second half of 1957 additional first mort-* *? sell'$5,000,000 of first mortgage bonds. " Underwriter— gage bonds. Proceeds—For expansion program. UnderTo be determined by competitive bidding. ' Probablewriter—To be determined by competitive bidding. Prob- X bidders: Halsey, Stuart & Co.; Kuhn, Loeb & Co., Leh¬ able bidders: Halsey, Stuart & Co. Inc.; White, Weld & man Brothers and Salomon Bros. & Hutzler (jointly); /Co.; The First Boston Corp.; Morgan Stanley & Co; and Eastman Dillon, Union Securities & Co. and White, Weld Drexel & Co. (jointly). • : /: " & Co*, (jointly); Equitable Securities Corp.; The First Boston Corp.; Merrill Lynch. Pierce. Fenner & Beane. Portland Gas & Coke Co. (6/10) Z*'-*i '* " art & Co. •New Jersey > ' Iowa Power & March 8 it 10 was Light Co. announced stockholders will vote April a, new issue "of 50,000 (par'$100)./Underwriter Smith, Barney & Co.,: New York. approving the creation of on shares of preferred stock New York State it Iowa Southern Utilities Co. X' ' ,, April 2 it was announced company plans to issue and sell $5,000,000 of first mortgage*bonus later tnis year. Proceeds To repay bank loans and • for construction program. Underwriter—To be determined by competi¬ Oct. 24 it — tive bidding. Probable bidders: Inc.; Kuhn, Loeb & Co.;. White, Halsey, Stuart & Co.Weld & Co.; Lehman Brothers, and Bear; Stearns & Co.-(jointly) Equitable Securities Corp. and Salomon Bros. & Hutzler (jointly); The First Boston Corp.; Dean Witter & Co. •' Jefferson Lake Sulphur Coy Dec. 27, Eugene H. Walte, Jr., announced company plans in the tures. near future to sell Proceeds—For an New issue of convertible deben¬ expansion Jersey Central Power & Light Co. 12, it was announced company plans to issue and sell $8,000,000 of first mortgage bonds due 1987 '(later March 1 it Corp.; White, Weld & Co.; Eastman Dillon, Union Secu¬ rities & Co., Salomon Bros. & Hutzler and Merrill Lynch, Pierce, Fenner & Beane (jointly). Bids — Expected in June or July, 1957. some owned by \ " • near $4j.' —To was of , Proceeds—For Eastman in - expansion and working/ capital. Operates shopping centers. Underwriter — Dillon, Union Securities &. Co., New Ycrk, for — two-thirds Canada.; of issue. - /. Public Service Co. Oct. 8 it was Balance : to be underwritten ; • of Colorado (5/20) reported company plans the issue and sale - it Northern Pacific RyY (5/16) Bids- are tentatively expected to be received by this company on May 16 for the purchase from it of between $6,000,000 and ,;$8,000,000 equipment trust certificates. Probable bidders: Halsey, 4 it Stuart ' " • & Co. was Public Service Co. of Indiana, , Inc.; Salomon Feb. (Minn.) company - during 1957. Proceeds — To repay bank loans (amounting to $25,000,000 at Dec. 31, 1956) and for new .construction. - March 1 4 it States Power reported be determined by com¬ Feb. Co. (Wis.) (6/4) - - plans to issue and sell $10,000,000 of first mortgage bonds due 1987. Pro¬ ceeds—For construction program;- Underwriter—To be determined by competitive bidding. Probable bidders: Halsey, IStirart & Co/Inc.; Merrill Lynch, Pierce, Fenner was Underwriter—To petitive bidding. Probable bidders: Halsey, Stuart & Co. Inc.; Blyth & Co.,-Inc.; The First Boston Corp.; Harri¬ man Ripley & Co. Inc.; Glore, Forgan & Co.; Kuhn, Loeb ' & Co;, Salomon Bros.1 & Hutzler and Eastman Dillon, Union Securities & Co. (jointly). Puget Sound Power & Light Co.v 6, Frank McLaughlin, President, announced that later on. in 1957 the company plans to sell an issue of Ripley & Co. Inc. Northern Halsey, Y-; was pany, , 1957 . Harriman Inc. announced that it is expected that a new; (about $30,000,000 initially scheduled for 1956) wiH be issued and sold by the com¬ 11; it series of first mortgage bonds r. Power Co. reported Co.; Ine. and Smith, Barney & Co. (jointly); Brothers;-Harriman Ripley & CoLfnc: Bids— Expected to be received up to noon. (EDT)' on May 20. Blyth & Lehman (jointly); Equitable Securities Corp.; Kuhn, Loeb & Co.; reported that company is now considering $19,000,000.. first mortgage bonds due stock. .Business about Beane, Kiddeiy Peabody & Co. and White, Weld & (jointly); Lehman Brothers and Riter & Co. (joint¬ ly); The First Boston Corp. and Blyth & Co., Inc. Metropolitan Edison Co. sale pected of an issue of $15,000,000 of subordinated deben¬ due 1932 and 1,500,000 shares common stock to be sold in units of $50 of-debentures and five shares of , Co. are expected to be received by the company some time in the Fall for the purchase from it of $14,400,000 the j and Louisville & Nashville RR. Jan.-29 it May. tures Co., Ltd. plans to issue and $15,000,000 first mortgage bonds. Proceeds-—For construction program. Underwriter—To be determined by competitive bidding. Probable bidders: Halsey, Stuart & Co. Inc.^ Merrill Lynch, Pierce, Fenner Bids Probable bidders: Stuart & Co. Inc.; Salomon Bros. & Hutzler. or Stearns .& Bear, Northern States — equipment trust certificates. in April stock _ reported company plans to issue and sell stock in units.. Proceeds—About sell in the Fall of selling stockholders. Underwriters The First Boston Corp., New York; Dean Witter & Co., San Francisco Calif.; and Carl M. Loeb, Rhoades & Co., New York. '' and IMarch Kaiser Industries Corp. March 13 it was reported registration is expected in future of 750,000 shares of common stock (par Price—To be supplied by amendment. Proceeds common Principal Retail Plazas of Canada, Ltd. (Canada) Feb. 28 it was reported that early registration is ex¬ common Bros. & Hutzler. the Henry J/ Kaiser Co., or of certain other assets.. Underwriters—The First Boston Corp., New York. * ' «.*. of _ portion of the funds necessary to meet the companies Co. 1 Trefethen, Jr., Executive Vice-President, securities- of - the 300,000 shares of $30,000,000 first mortgage bonds. Proceeds—To repay bank loans and for new construction. Underwriter—To Co., both of Ne\y York,/ ; be-determined by competitive biddings Probable bidders: to head group in United States. Offering—Expected in TT~"4Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co. and ' April. • . White, Weld & Co. (jointly); The First Boston Corp;;. Industries Corp. a was notes and '' " " , . plans to issue and May 21. • announced company, plans to issue and was $10,500,000, together with private financing, to be used for new construction/ Underwriters — Hemphill, Noyes & $25,000,000 installment due April 1,1957 on its 4%% term loan may have to be provided by the creation of debt by, or the sale of equity securi¬ ties, of this corporation or Henry J. Kaiser Co.r or * through the public or private sale of a portion of. the. on Northern Ontario Natural Gas 13 it on a Underwriter—Blyth & Co., Inc., San Francisco and New -York'. " •- ': ; • • ..' ^ competitive bidding. —Scheduled to be received Underwriting—To be Electric Co. General Portland March sell Probable bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley & Co. Bids by reported company plans offering to comof 225,976 shares of additional;? com¬ (par $9.50) about June 10 on a l-for-5 basis; rights to expire about July 1. negotiated basis. i / - —To retire short-term borrowings. determined changed to $15,000,000). Underwriter—To be determined by competitive bidding. Probable bidders: Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co.; The First Boston Kaiser announced company stock mon (5/21); Telephone Co. was was stockholders J mon company $70,000,000 of refunding mortgage bonds. Proceeds Underwriter—To be • stated that it is anticipated that announced " Sept. Nov. 28, E. E. York March 18 it program. sell * March 26 it (5/14) Electric & Gas Corp. plans to sell in 1957 $25,000,000 of first mortgage bonds, and an additional $20,000,906* in 1958. / Proceeds^—To finance construction program. Underwriter—To be determined by competi¬ tive bidding. Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.; Blyth & Co. Inc. and Smith, Barney & Co. (jointly); The1 First Boston Corp. and Glore, Forgan & Co. (jointly); Harriman Ripley & Co. Inc.; Kidder, Peabody & Co. and Salomon} Bros. Hutzler (jointly). Bids—Expected to be received up to noon (EDT) on May 14. was first mortgage company bonds (company is authorized $25,000,000 additional principal amount). retire bank loans. ~ Underwriter—May be determined by Probable bidders: &/ Co: Inc.; The First Boston Corp. competitive to issue Proceeds—To bidding. Halsey, Stuart. I Volume 185 Number 5628 // The Commercial ami FinaveudChroniebe (mi) -m Radiation, Inc. March 20 it derwriter—To be determined by * competitive bidding. * Probable bidders: Halsey, Stuart & Co. Inc.; Goldman, Sachs & Co.; Stone & Webster Securities Corp.; Kuhn, Loeb & Co. and A. C. Allyn & Co. Inc. (jointly); Mer"rill Lynch, Pierce, Fenner & Beane. Bids—Expected to be received some time in July. / ": * reported was v- registration is expected in about ,ai month of about 213,000 shares of common stock, of which approximately 183,000 shares are to be offered by the company late in May to its stockholders on a l-for-3 basis and about 30,000 shares are to be sold for of certain account Loeb & stockholders. Underwriters Reading Co. are March - 1957 be to received by this company on May 23 for the purchase from it of $2,550,000 equipment trust certificates, due semi-annually, from July 1, 1957, to- Jan.* 1,' 1972, inclusive. Probable bidders: Halsey, & Hutzler. Halsey Stuart & Co. Inc.; Salomon Bros. & Hutzler. Southern Bell Telephone & Telegraph Co. 25 directors authorized the issue and sale Feb. 000,000 of 29-year debentures due June 1, 1986. —For construction program. Underwriter—To ^ 18. (6/18) debentures for, each, nine March $70,- v Proceeds Tool for for the balance Edison Quinton, of Co. - Fob. • tention is to issue additional bonds and probably ferred stock. He added that the company will require more than $180,000,000 of new money in 1S57 arid .£958, in addition to the $37,500,000 bond issue of ^pre¬ 1957. (A total of Co. . 21 it Gas Co. If it reported Co. comoany . *ome v/'* repay Light Co. bank loans and for new — * (10/1) ..•> additional Fenner & senior (7/30) plans to issue company securities, probably about some $20,000,000 of first mortgage bonds due 1987. Proceeds — To repay' bank loans and for new construction. Underwriter — To be determined by competitive bidding. Probable bidders: Halsey, Stuart & Co. inc.; Eastman Dillon, Union Secu¬ rities & Co.; Kidder; Peabody & Co. and White, Weld & Co. (jointly); Lehman Brothers; The First Boston Corp.; W. C. Langley &'Co.; Harriman Ripley & Co. Ittc. Bids—Tentatively scheduled for July 30. - also was (jointly) j West Penn Power Co. Dec. 27 it was announced Oct. 1. on Lehman Brothers (jointly); Blyth & Co., Inc.;. Smith, Barney & Co., and White, Weld & Co. (jointly); W. C. Langley & Co. and The First Boston Corp. . Beane White (S. S.) Dental Manufacturing Co. March 11 it was reported company is considering some long-term financing. Underwriter—Drexel & Co., Phila¬ delphia, Pa. Bids—Tenta-- - Feb. 15 it was issue;-and Proceeds (6/4) ^ r/ ; reported company plans to issue and sell ' • - was (7/9) announced company plans to issue and sell $30,000,000 of 35-year debentures due For 1992. Proceeds-— construction program. Underwriter—To be deter¬ mined by competitive bidding. Probable bidders: Halsey, Stuart & Co.; Morgan Stanley & Co.; The First Boston 'Corp. Bids—Expected to be received at 195 Broadway, 'New York, N. Y., on Corp.; Merrill Lynch, Pierce, Fenner & Beane.Bids—Tentatively expected on ■ W : 7 L June 4. if Wisconsin Telephone Co. April 3 it 1,000,000 shares< of 'common stock ' (par- $8). Proceeds— About $22,000,000 for new construction. Underwriters— To be determined by competitive bidding. Probable bid¬ ders :v-Stone & Webster Securities ' construction." Un¬ & Power Co. , July 9. Continued from page 9 ; V - ees :;i allowed were to leave work line with yesterday between 1 and 4:30 p.m.". that A ir C o n iiHoning i And the next, day: *'More than 13,000 had been excused before 2:30 Growth and p.m. the movement in progress "»To some story is repeated Believe conditioned- office will naturally You have, first, the enormous tafck me, still was air an > conditioned people paying for . air..conditioning And so, as more -building . of ' . , home.- a /•*'-" put this thought in a nut- To shell, those who compete for man- power or consumer dollars will jso. at - an without As a do increasing disadvantage conaitioning. air matter of fact I > strongly * As a tioning returns direct re£uii a per of air condi- structure, the economic come in the form of lower labor turnover, less expe nsive recruitment, fewer^ employee errors, less time lost ahd of ^output;5 Thete of per his not air conditioned. on ords its in represent. the in kept in plant were acutely of aware the nomic motivation behind cision to a install conditioning system. eco- the decision is not made primarily because an air conditioned iini vironment is pleasant. executive officer could expenditure His decision on that must be No air; operate that struck of .Washington 1953? chief Federal employees alone, predicated -;. Operation What summer idea long and of - I-haye Day in the after day, were sent home pretty good their, wb'rking efficiency before er reliable as does air it Cost to conditioning? an which save - Reynolds, showed seven time out of if dollars-and-cents payoff, The problems faced by the Federal Government in this respect a „ With as you the aircraft, is required ordinary airman in the enlisted that makes turrt plenty expensive, logical clinical studies show- and military personnel. These invariably pointed to the upon have a study; superior performance of employees quartered in air-conditioned effective roundings. sur- obviously related to residential air conditioning, an important factor in the recent growth of our industry.v Let 4n me This sell central Potential think I year • about systems describe the the industry sold the industry quarter million a for homes. As¬ one million housing starts annually, this means that air con^ ditioning will be installed in about out of every one ings eight new dwell¬ constructed, plus another 125,000 in existing homes. By 1961, central air conditioning will be going into one out of every three new residences. And in ten years—one out of two. These are national figures and the propor¬ tion will be higher in the warmer states. 43% Currently, of all and over homes are air the in South costing $30,000 conditioned. ^ about 15.000 central systems for* new and ; It is self-evident, I submit, that built today without air conditioning will suffer a price disadvantage upon resale 10 years hence. And it is equally clear that house air conditioning road to the of is becoming American , as well much of way on a the part life as central heating. Three With Mt. States rSpeciRl to Tim Financial Chronicle) DENVER, Colo.—Jerry E. Jump, Ben Lofflin F. with Mountain States Corporation, Denver ing. " Thomas and -become Walsh ' have * 1952 mem¬ men This is - of four ^average esti¬ central a family, about 700,000 new enthusiastic salesmen' were Home . ' trend. we installed. were thereby created. a The government has-completed number of physiological psycho- of total of 480 minutes and to train ing the effect of comfortably cool working and living conditions About they were released, in a workday/ the employer can no .intent^to ^ sadistic— .break even on air * conditioning, really—I examined some clippings Incidentally/ seven minutes is from our files. Gn the second of about two trips to the . water are no different than those faced .August the "Washington Star" re- cooler." y private industry and commerce, ported, "More tl&n 25,000 employ¬ Mr. Reynolds' estimates are in on of $15;000 made that minutes a undoubtedly fr0m $80,000 to half a mil(j0nars> depending upon the over five W.-• E. De-i ranks. Obviously, and years ago, the former Commissioner of Public Buildings, Mr. Defense expensive to train and, jion • own however, compiexity a cost The an 1956 175,000 bers to and suming those as And at -vate business. In about conditioners will y conditioned Do you remember the heatwave justify the early basis into- e e* air that not were lts Drafting and purveying Bureau de- a central I know increaise in work: output a air that manpower are in general no dif£erent than those confronting pri- about - .°tve^ ^ previous summer after in ranges air Having spent a considerable part life In the financial world, would j understandf for instance, that the cost of training a single pilot us addition to significant decreases in of my I am this , era of clerical pay-off. absente^ism^and labor turnover, the productivity /Jgain in summer conditioning right As far back as 1938, to take one per employee was 7% following Washington is attracting example, Paul- 6-* Heidman, then installation of air conditioning. employees from non-air-condi- Superintendentof Buildingsforthe Another industrial concern claims tioned buildings. Detroit Edison Company, reported a 16% increase, but its records here offset for their services, .suspect that in this shortages, To $60 to $70 per existing homes. mate know, there is rather hot bidding rec- Shawnee, Okia- 1.n/°rm.e5 of j pointed out that the problems -government with respect to are And Sylvania the basis of runs from partment, from the effect year weather if Electric, Inc., higher level a man hot cost has a recruitment and turnover situation somewhat different than the other agencies. Technicians , of annual very small increase employee efficiency—1 to 2%. are even own.*We have found average employee. require a after year, year many our the owning and operating an air conditioning system in : an office degree this Jio^teL pf recruiting and Jhxntgh they.don t themselves have training manplaces become air power. / Then/ vrith a heavy in* .■ V Turning now to private indusconditioned, .-^qevitahly a greater vestment in a trained labor force, number of people will experience-you can't afford to lose it. And tryyl recall a survey of 75 manur its» benefits and act accordingly— finally,- you ha^e a budget, and factunng plants by a New Jersey whether it involves a job location, costs are rising, and taxpayers are industrial designer which showed a that a.typical-employer lost shopping area or the selection pleading for-relief. 4 $108 V prefer \ it Washington Water Power Co. April 1, K. M. Robinson, President, stated that the com¬ pany will probably market an issue of first mortgage bonds by June 30, Proceeds To carry out 1957 ex¬ pansion program. Underwriter—To be determined by competitive bidding. Probable bidders: Halsey, Stuart & Co. Inc.; Eastman, Dillon, Union Eecurities & Co.; ;and offer (10/1) Power & Light Co. Virginia Electric .. was sale of first mortgage bonds in the Spring of 1957. Proceeds—To repay bank loans and for construction pro¬ gram/ Underwriter—To be determined by competitive bidding. Probable bidders: Halsey,-Stuart & Co. Inc.; Blair & Co. Incorporated and Baxter & Co. (jointly); Merrill Lynch, Pierce, Fenner & Beane and Stone Si Webster Securities Corp; (jointly); • ^uity . reported company plans to sell about $18,000,008 of first mortgage bonds. -To plans to ly);. Lehman Brothers; Blyth & Co., Inc. tively scheduled to be received on Oct. 1. . Tampa Electric Co.'-"./it Fund (jointly); Eastman " Dillon, Union Securities & Co. and Smith, Barney & Co. (joint¬ jt 18 this the Pierce, - March that announced company plans to offer public 400,000 shares of common stock. Under¬ writer—To be determined by competitive bidding. Probable bidders: Kidder, Peabody & Co. and Merrill Lynch/ ^ do may Utah to • . or was > * of $100 of notes of announced company plans to issue and $15,000,000 of first mortgage bonds due 1987. March 12 it • financing in April (first to stockholders). Underwriters— Merrill Lynch, Pierce, Fenner 6c Beane and Dean Witter & Co. / . u"-' ' ^ t ' — Machine Tool was reported was Power & sell about . (jointly).. Offering—Expected in August September, 1957. ',///////>• ;•■';■'■ Sundstrand it scheduled to be received, Securities & Co. March '/ the securities new Dillon, Smith, Barney & Co. (joint¬ ly); Lehman Brothers and Bear, Stearns & Co. (jointly); White, Weld & Co. and Stone & Webster Securities Corp. (jointly); Kidder, Peabody & Co. Bids Tentatively 6ell about or Washington Gas Light Co. (5/16) 12,LEverett J. Boothby, President, announced that the: company expects to raise about $8,000,000 through Dec. April 25 will Union Securities & Co. and announced company plans to issue and $35,000,000 of first mortgage bonds/ Proceeds —Torrepay bank .loans.and for new construction/ Un¬ derwriter—To be determined by competitive bidding, Probable bidders: Halsey, Stuart & Co. Inc.; Blyth & Co., Inc. and Merrill Lynch, Pierce,. Fenner & Beane (jointly); White, Weld & Co. and Eastman Dillon, Union Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler, program. any California was are tentatively scheduled to be received by the May 7 for the purchase from it of $6,165,000* equipment trust certificates.v Probable bidders: To repay bank loans and for construction Underwriter—To be determined by competi¬ tive bidding, Probable bidders: Halsey, Stuart & Co. Inc.; .The First Boston Corp. and Blyth. &, Co., Inc. (jointly); Salomon Bros. & Hutzler; Eastman $70,000,000 . Southern 25 Proceeds (2) For any preferred stock:.; May be The First Bos¬ Corp. and Dean Witter & Co. (jointly). >•; -.i;/' Jan. owner of Utah may be raised itVrl&57.) bonds, to be determined by competitive bidding. Probable bidders may include: Halsey, Stuart & Co. Inc.; Blyth & Co. Inc.; The First Boston Corp. and Dean Witter & Co. (jointly); Kuhn, Loeb & ton Co., March 12 it February, Underwriters—(1) For ; company on $15,000,000 of capital stock. Underwriter—Kidder, Peabody & Co., New York. Offering — Expected in early Spring. ;/ /: ■/:- •• President, announce^ that the company's presqift in¬ this year . (5/7) ~ \v California 20,' Harold shares The Co. stock held; Hughes 74.2% of the TWA outstanding com¬ mon stock will purchase any securities not subscribed for by minority stockholders.- Proceeds—To pay in part / Kidder, Peabody St the conditional sales contract Co.; Equitable Securities Corp.; Eastman Dillon, Union covering 33 Lockheed air- " Securities & craft. Co.; The First Boston Corp. Underwriter—None. Bids—Ex¬ pected to be received on May 16. U. S. A. Fund, Ltd. (Canada) of , Southern Bids V; on ; Kuhiv (jointly);, it Wabash RR. Hutzler, New York. tures convertible into common stock. will probably be offered at the rate ,- Registration—Planned Weld & / on approving an offering to stockholdersVo£ approximately $37,000,000 subordinated notes or »deben- Bids—Expected- June on & addition to pro¬ this Corp. Hutzler; Eastman Dillon, Union Secu¬ Co.; Stone & Webster Securities Corp.; White. rities & v .vote be deter¬ mined by competitive bidding.: Probable bidders: Halsey,-, Stuart & Co. Inc.; Morgan Stanley & Co. received „ ★ Trans World Airlines, Inc.. iiprii 2 it was announced stockholders was reported company may issue some addi¬ tional equipment trust certificates, the proceeds of which arevto cover part of the cost of about $19,203,000 -of new equipment which it now has on order. Probable bidders: part of May. Inc. Adviser—Salomon Bros. April 8 it to be Ferry, Co., New York. late additional Salomon Bros. & March;,20 it was reported corporation is considering public financing of about $4,000,000 convertible deben¬ tures through Ira Haupt & Co., New York. Financial Seaboard Air Line RR. latter TMT Trailer . . Stuart & Co. Inc.; Salomon Bros. was reported company plans to issue and 217,000 additional shares of common stock in (probably first to common stockholders).- Dealer- & of for bonds may include: Halsey, Stuart & Co. Inc.; Loeb & Co. and American Securities it Manager—Goldman, Sachs ~ announced company, in was Spring $22,000,000 through the^ common stock, plans also to sell in the Fall $20,000,000 of debt securities. Probable bidders sale sell about (5/23) expected 18 Virginia Electric & Power Co. posal to*raise Tampa Electric Co. v': ( • Kuhn, Co., New York, and Johnson, JLane, Space & Co., Savannah, Ga.. Bids — v March 8 it • •* - P. connected Securities Club Build¬ - ; The Commercial and Financial Chronicle (17,32) 44 have elected two new the 11 fund's fiscal year on Nov. 30, reelecting directors/of the present fund. / -The two By ROBERT R. RICH Harold Cole, M. torneys Ronon, 1 of Stradley, Young, attorneys a National Securities & Research Corp. made its forecast for business this year, as is its annual custom. The at¬ and forecast then of partner These ' ; Four months ago, partner of Cole, Young, B. Andrew Upward are Friedman & Dcitz, of New York City, Grimes, '57 Forecast Revises predicted this would be upward. sharply important Among / the $430 // they changes, now believe billion instead the Gross National Product this year will be $435 MUTUAL A INVESTMENT Estimates of manufacturers' sales were revised FUND Notwithstanding the Quoting economic -Bullock ? Business inventories were cut downward from $91.5 billion to manufacturers' unfilled orders, from $63.5 were as i The consumers' of 119 FREE INFORMATION PROSPECTUS TO DEALER OR FOLDER AND and NATIONAL SECURITIES & last year. domestic The RESEARCH CORPORATION auto * This record, a Corporate securities' i new he | were billion to $12.2 billion. sion, upward a is mutual fond in a of list for selected National expects INCOME in the years ///•■/•. ' ,/ ,./ are()even Selected v ,,/ .• .• open-end \ Incorporated J Income Fund for CURRENT a mutual A merican investment iron and adjustments holdings 1957. fund whose first its in was a the in first to quarter the J . ; ./'/ • ■ of portfolio Bethlehem 5,000 shares of 10,000 Combustion Engi¬ neering, 4,000 Dresser Industries, 10,000 National Dairy, 6,200 Rem¬ ington Arms. Increases in prior stock holdings A on each available from prospectus fund your Thh is included 1,000 investment dealer. Parker Corporation 200 1,000 Aluminium Amerada, Natural Gas, 1,850 Broadcasting, 4,200 Credit, Ford 13,000 Ltd., Commercial Motor, 3,000 .9,900 Gulf Oil, 12,900 International Telephone & / Telegraph, 5,000 Kroger, 7,000 Merck, 2,960 Na¬ tional Lead, 5,000 Northern In¬ diana Public Service, 9,000 Public Boston, Mass. : : and corporations which are \ zinc, aluminum, ,//././/';/ ^ progress, 22 million tons in 1956, whereas 10 over ; years in that country// ore in the securities b believed to be able to'^ Except for temporary reserves in Canadian time are invested in securities aod;| , Canadian' corporations, of '* /■*:•// West Penn from the portfolio dividend gust Delaware Income Z more is expected Fund Reveals be heard- some questions raised," hj£ said, "as to whether Delaware5 Income Fund, because of its namerand announced policy "I've .First Portfolio The new . Delaware Income Fund has begun investing proceeds from the sale shares first offered of // Initial investments include of to be emphasizing high income, is to a so-called 'balanced fund,' or is to confine its investments to com¬ , stocks, or to any other class of security. The answer in each Line, 2,400 ing, companies: .Allied Stores, Al¬ case is 'no.' It will be a fully,Bendix Aviation, 20,000 Boeing lied Mills, Allis Chalmers, Ameri¬ managed fund," he went on, "with Airplane, 6,000 Borg-Warner, 12,- can Tobacco, American Viscose, a management free to vary the 500 Douglas Aircraft, 10,200 East¬ Anaconda, Best Foods, E. W. Bliss, proportions of any class of secu¬ ern Airlines, 2,000 Firestone, 18,- Budd Company, Canada Dry, rity as seems most promising900 General Motors, 3,000 Kansas Chesapeake & Ohio, Colgate- just like Delaware Fund. At the City Southern Railroad, 2,870 Na¬ Palmolive, California Water & present time," he concluded, "we tional Gypsum, 5,000 Sinclair Oil, Telephone, Eastern Utilities Asso¬ have only a small proportion in 10,000 United Air Lines, and 7,700 ciates, Gimbel Brothers, Great prior securities, but when we U. S. Rubber. Northern Railway, Green (H. L.), think a larger investment in bonds 5,000 American Airlines, 3/ Reductions in Co. mon Coast of sales prior holdings in¬ 3,000 Aluminum of America, 2,700 Crown Zellerbach, 5,000 Grand Union, 6,713 International Paper, 6,850 Mead Corp., 5,200 Monsanto, 9,800 Phil¬ lips Petroleum, 6,000 Radio Corp. of America, 5,000 Standard Oil of Indiana/4.600 United Aircraft, and 7,000 U. S. Gypsum. - - / 1 stock positions in com¬ mon the follow¬ Greyhound, Gulf Mobile & Ohio, Illinois Central, Kennecott, Lig¬ gett & Myers, Lerner Stores, Mar¬ shall Field, National or to New Steel, hawk, Dodge, Phelps Chicago, Rock Island Simmons, Southern Railway, Fruit, Walworth, Western make it." free ! Income Delaware Fund is na¬ Delaware Distributors, Inc., national distri¬ butors of the $47 million Delaware distributed tionally Pullman, & Pacific, United preferred stocks is to the share¬ holders' best interests, we are England T. & T., New York, Chi¬ cago & St. Louis, Niagara Mo¬ Auto, and Wrigley. J. I. Case and Byer (A. M.) preferred were also by Fund. Paul Manheim Pirector J j j Paul E. Manheim, a partner in Lehman .rBrothers and a - Vicepurchased for the portfolio. / President and-director - of The According to a statement by Lehman i Corporation,* the finvestchairman D. Moreau: Barringer, ment company, ; was elected to the Fund will pay its first divi¬ Western Uliimu s board of directors dend next month. However, he kt the annual meeting of the telepointed out, since newly acquired §rapfi company. *■■ / " * ; '■{ holdings .cannot be expected to , NEW THE to substantial, Mr. Barringer then clarified; the new Fund's investment policy, the public last month. Atlantic cluded Columbia General American Transportation, Berkeley Street 7,000 and Eliminated were American 3,700 Indiana, Transmission, 2,000 Thompson 000 Steel, T of W,fhou* Pr'ncipa|. of Products, investment were risk : negligible production of iron mostly common stocks..// / V. /•/ Electric. ///;/ /////-•••■//.. . Newcomers ondue in second v power. production, Canada has made brilliant ore industries this v12,500 Gas Shares, company as INCOME? it is }. small population, is X U/S. Government securities, all of the assets of the company at 1,600 Skelly Socony-Mobil, 5,000 Standard Oil of New Jersey, 3,000 Sunbeam Corp., 5,000 Tennessee Oil, with total net assets of $62,715,629 of March 31, made important NVESTING J" j ; startling,> he said, when more newsprint and hydro-electric .the shareholders. increased in the fore¬ ' Service Reports Portfolio Changes ahead. * ap¬ participate profitably in this Canadian growth, Mr. Bullock told reduction in the national debt of $1.-7 bil- / a level of $276 billion. Selected and present level of Canadian Fund proposes to invest its money of change in bond and note offerings from $8.3 to invested GROWTH of CAPITAL its billion. lion from last year's securities possible the*?' per year to $76.1 billion in 1980—roughly Eilablifh»d 1925 A that was Canada, the value of all goods and Canada/) despite its relatively and there year Responsible for this •revi¬ , that stated, producing ago i,//■/ -J:--';, •.// offerings of 1955 rate. asbestos In with $12 billions last compares cast from $11.5 $9 I '» prediction of $22 billion corporate profits for this It would still be year.- Investors 1 Product startling projections produced, would increase from /uranium million, compared with 5.85 million sales, 6.1 $12.7 billion to $12.5 billion. Incorporated nickel, For 1956, it amounted to 116.2. • the among ■ already first among the nations of the world in the production of * not changed, but dividends paid out were revised down from was New York 5, N. Y. " National realized Auto production this year is expected to total 6.3 million units, ■ Established 1930 "" ■; that /j// These figures price level is expected to reach 119.2 instead (1947-'49=100). YOUR INVESTMENT 120 Broadway, ' f T"I development of the country for the next 25 years, Mr. three times the million," aiid- stepped up their prediction of unemployment from 2.6 million to 2.9 million. WRITE FOR .////.//.:, /•/ /'• ■. " Economists cut their forecast of employment from 67.1 million S/ooi Gross Canadian,.:} the in for the longer-term , proximately $30 billion 'billion to $62.4 billion. to 66.3 advances Canadian Government study which projected the a said services . 7 ■; outlook expansion appears to be most favorable. $340 billion to $346 billion, and' manufacturers new orders, from $341 billion to $346 billion. .' $90.6 billion, the years, j ■-<*?. signs' of slackening, Mr. Bul- no /-.///.,/•:/■> tremendous is the postwar economy upward from / markets well-informed, active board of directors:.;-'v/ a The growth of Canada shows billion originally forecast. tional Product, sum of all goods and services securities Canadian securities selection, competent management and, the ad- lock told the shareholders. Last year, the Gross Na¬ produced, was $412 billion. National now predicts personal income will amount to $343 billion instead of the originally forecast $337 billion, and that disposable incomes-personal income after taxes—will be $301 billion instead of the predicted $297 billion. of record year-end / was a primarily, Mr. Bullock said, investor interest in the continued vantage of Now, the group's economists have revised their 1957 forecast Stevens & Philadelphia. * rputuaL '•* gains reflect two factors and good record year. a 1956, which - figure, Hugh Bullock, President, told shareholders at the annual meeting this week. National directors new "195T 1957 amounted $42,834,254 compared with $38,359,078 at the end of the to directors to board, in addition to the Thursday, April 11, . Net assets of Canadian Fund, Inc., on March 29, Mutual Funds Philadelphia in meeting . Bullock Sees Great Canadian Growth Wellington Fund Dirs. PHILADELPHIA, Pa. — Stock¬ holders of Wellington Fund at the annual . ; , - * ■= INCOME i ;Sw*,r • V yield FUND *m t, **j a "the/ distribution Will token, • ./ Investing for possible^ as / as full quarter-year's return, and size of later ,s"«r be ia a mutual investment fund of diversified Free of Pennsylvania ''* board not vindicative Chairman "of th^f/Vertientes^ of and Cuban Sugar payments."- The Au¬ •• - Plantations, Inc. •*v v • the; risk// ;// with -> k a '•// /"•'*• "*•'!, involved/-. Personal Property ;\of a 'Cdmaguey Sugar Company, and a the director of General Sugar Estates, high CURRENT INCOME commensurate '* "V.' •/ " "only -t ■ Mr/ Manheim is 4 -the . 1 Taxes, in the opinion of counsel. stocks selected for investment common / , quality and income • possibilities. Mail this ad for free booklet-prospectus to PROSPECTUS ON REQUEST ;.;//• « ' v A Common Siock Investment Fund . at this Fund are possible Ions-term --capital and income growth for its, shareholders. ; Investment CALVIN BULLOCK, LTD. . JEstablished 1894 . Nationally distributed byv ONE WALE STREET, NEW YORK b DELAWARE DISTRIBUTORS, Inc. 300 Broadway Name . * • / . Address • v National * Camden 3/N. J. • • e Distributors of j : 1 /i.t Delaware v- J *' Fund •'' , objectives Prospectvs upon, request Xokd, Abbett & Co. ./ y New York / — ."-Chicago > - — Atlanta —•?.= Loo A>n*eW - Volume 185 Number 5628 .; .The Commercial and Financial Chronicle 45^ (17331 Lehman Assets Exploration (W.) Ltd. for a total 16.8% of net asset value, and met¬ of 60,000 shares held; 5,000 shares' als and mining with $24,208,073 of DipInPeriod 25.000 shares of $228,- 273,514, equivalent to $24.67 per share, was announced jointly by Robert Lehman, President, and Monroe C. Gutman, Chairman of the Executive Committee, in The Lehman Corporation's its first quarter ended 1957. At the end report for March 31, the preced¬ of ing quarter, the net asset value of the portfolio amounted to $233,789,214,-.equivalent to $25.26 per share. /./ . J / ' "...1/ . Common stocks comprised 95.1% of the corporation's net asset value at the end of the quarter, with U; S. cash Government bbnds and items of senting 3.6% $8,245,222, of net Bonds and preferred .2% up of net asset net repre¬ value. asset value,' and re¬ maining 1.1%. At the end of the preceding quarter, Dec. 31, 1956, common stock comprised 95.5% of the corporation's net asset value U. and cash S. Governments items sented of and $7,013,256 net repre¬ 3.0%. * Corporation, and 3,400 Minneapolis-Honeywell. shares of Purchases which increased portr folio holdings 8,300 shares of Florida Power Corp. for a to¬ tal of 10,100 shares held in the portfolio; American for of national Nickel Ltd. for shares held; a total of 10,000 shares of American Gas & Electric for a total of 20,000 shares held. Portfolio eliminations included: i. 10,000 shares >of Phelps - \ ■ Dodge Corp.; 6,700 shares of Johnson Johnson; 15,000 shares of South¬ Public Service; 12,000 shares of Capital Airlines; 20,000 shares of Visking Corporation; 6,000 shares of Geco Mines, Ltd.; 5,000 shares of Sutherland Paper; Celebrates 25 Years < James H. awarded watch his Elliot an the 25th on has engraved association the sixth to comes Longines the Company. V Secretary 5,000 shares French: of Smith Kline- - Laboratories, and 4,500 shares of Owens-Illinois Glass Co. —4% convertible preferred. Among ; portfolio funds. of * vestment Loeb portfolio;* 4,300 shares leaving the of Co. has and of 56,700 shares been elected a Ellis & Anderson have office at in Edward B. were: tion's net asset value. The hext two largest investment categories were public utilities with $28,607,286 of investments representing 20,000 shares' of Dome DENVER, Amole Colo. is now Mountain States poration, Denver He was In Company of New York of and after statistical and ana¬ Frank affiliated with Securities Cor¬ Building. formerly with Colorado is Management Corp. *i > ' i; . . your investment deafer PHILADELPHIA 3, PA. or This Co., 231 South La Salle Street. North Western the road had about of poses 1956 report states that as of the end of last operating loss carry forward for income tax an $16 million that will offset future would otherwise be taxable. shares - INC. r 1 income or therein Plate a described in the foregoing are only cases Atchison sizable one result of normal depreciation.. Elsewhere in 4hdustry tization is charged off as such in full pro-rata ampunt income of the year to which it is °F Securities, inc. able to any year over the normal depreciation. Amort, in; Excess Atl. in bonds, common preferred and stocks, with the proportions "balanced" in accordance with man¬ agement's judgment. A Chi. Distributors Group, Incorporated 63 Wall Street, New York 5, N. Y. Line ..... R. Delaware I. & Pacific...; & Hudson & Nashville..., Erie Louisville "Soo" Missouri Pacific Reading Company.......... Seaboard Air & of amor¬ against the ac- Line..;.'.... pf Dcfpr. — Tax Deferral ^' * ota I jfota * Reported Net" Per Share Per Share The other source 0 of Lacey, tional Tex. Horth, tax Incorporated, is the as seen , Co. J P. ' V..!.;! Pac. % of Net & W. Va...... I....:.. Seaboard ........ So. 16.7 Sou. 3,596,000 1.23 5.38 23.2 Union 1,306,000 2,316,000 6,090,000 434,000 5,200,000 3,254,000 4*362,000 0.85 30.6 §West 10.70 24 4 West 0.60 4.09 14.7 Wise. 2.77 10.22 27.0 35.0 Federal Cr523 2,355 Cr51 3,692 5,130 Cr2,456 8,827 778 14,193 Reported Net Income Net Per Total* Per Sh. Sh/56 32.5% 7.9 13.8 $54,106 6,739 18,124 $49,844 6,221 16,730 $1.79 $2.64 5.6 36.6 (Cr) 40.8 (Cr) 19.0 36.2 (Cr) 41.3 • Theoretical 52% Rate* 8.7 30.4 33.2 42.5 (Cr) 38.2 38.4 36.4 17.8 3.0 46.5 262 193 455 42.5 42,487 20,983 29,375 4,983 ,7,246 71,862 25,876 48,791 1,658 18,055 13,237 26,845 52,358 57,911 118,569 26,664 12,231 4,689 1,869 41.0 18.8 14.9 42.7 33.0 36.6 25.0 11.3 32.3 „ 176 1,818 54,704 1,130 3,008 4,386 10,095 7,382 1,319 11,132 4,653 24,106 3,988 21,276 of ma King in the current yearns income, ac¬ count rather thah to carry such adjustments directly to the su -plus account. Last December a study group sponsored. by> the American Institute of Accountants, and reportedly at the instigation of the , 162 ' 2.52 5.62 4.79 10.85 112.24 111.13 1,678 2.45 7.26 50,496 6.30 ■ -8.23 1,044 2.16 6.15 2,750 5.08 6.88 .; 4,049 0.69 2.78 9,319 3.20 5.58 6,814 4.22 5.60 1,217 0.72 5.01 10,275 4.68 5.79 4,296 1.50 5X8 22,251 3.67 5.52 3,781 2.58 4.01 ' A 19,639 6.32 7.66 > / '.2;139 1,974 1.31 2.80 'r' V 21,049 19,430 8.30 10.70 1,499 v 1,383 1.81 2.52 2,397 W. 2,213 s 3.08 4X9 V 12,397 Ml,443 45.98 $10.22 20,952. 19,341 •* 2.96^16.02 '15,871^ 14,651 3.5*}, J 5.98 237 vj 218 12.04 Vs 12.01 37,368 ?4,494i|'v-6.14 7.59 13,455 12*42tT A51 4.23 25,371 23,420 "U.78 5.16 .. . , . „ . • 949 Pacific ' 78,569 .... 14,280 7,781 3,639 1,825 Md Pacific • . .... Cent....... 709 5,942 4,703 6,700 5,896 19,039 40,000 12,384 4,450 1,050 44 860 9,389 6,883 13,959 27,226 30,114 61,656 13,865 34.0 46.5 36.6 22.4 2.4 6,350 2,438 973 798 2.62 3.11 8,666 4.19 2.07 2.70 +2.77 3.82 2.38 8.90 6.65 3.72 4.23 +5.14 6,354 12,886 25,132 27,797 56,913 12,799 5,881 2,251 896 8.50 5.53 3.56 10.08 11.00 3.90 4.30 6.29 8.78 + On class A stock. + Transportation § Pro * of inflation of ret income that is peculiar to roads, variety of a Tax at Full 3,496 105,200 2,174 5,758 8,435 <19,414 14,196 2,536 21,407 8,949 46,357 7,669 40,915 4,113 40,479 2,882 4,610 23,840 40,293 30,522 12,113 8,534 20,145 46,462 38,872 Virginian 15.2 3.08 2 61 21.5 ''/ Effective 196 ' Ry 0.94 6.65 • a Tax Rate " 38,500 2,697 3,403 8,486 15,722 41,545, Pac 28.3 4.23 ' Pre-Tax 3,300 '16,329 ..... "Frisco" 8.28 0.91 7'/"/ Net Inc.* 66,700 ; W R....-.., $4.79 adjustments^for prior Share & respective net incomes would (Cr) ..... R. Penn. 1.38 all & Na¬ ^ & North. $1.36 2.32 the 338 Haven Norf. $51356, 000 5.60 Island 1956* & H.... 11,000,000 of some, but not Texas accrual rate had applied in each case. Cr403 W....... G. New Deferral as " 741 Ga Reading - 7>>:-.* $104,050 12,960 34,854 Paul $6,454,000 practice firm Building, has been changed to Houston Bond Forma, or System only-Viz., not consolidated. giving effect to exchange terms eliminating the 7% -first preferred. 1 Deficit. Cr Credit »- " item. ■ . raiis The — La 'Master . the Ex¬ & Share $33,837 1,125 4,816 & 0....V 21,000,000 6,920,000 2,510,000 4,454,000 11,710,000 834,000 10,000,000 6,250,000 8,386,000 Stock -J.V":."' /' Now Houston Bond $70,213 11,835 30,038 M Nickel PL This produces the • Accrued 14,118 2,576 III. Cent .s...... T23,579 17,336 Lehigh Vy. ..V-.i. 4,213 CrlOO L &• N *... .»»v 25,027 15,452 M & St. L. 1,775 1,107 "S00". 2,940 1,670 ,vM0P"".V..19,593 ! 4,247 N. Y. Cent../,*,.•»* 39,104,.v, 1,189 T PROSPECTUS ON REQUEST from your investment dealer Coast Chesapeake & Ohio....;., L— Midwest placed before the ICC and show what 9,066 D. L. & W 5,082 D & R. G. W.... 12,580 Erie 8,171 Gt. North 32,239 G. M. & 0 * 5,093 * iast, special tax deferral item that tends to distort rail earnings in such cases as the following: z investing B D counting procedure, however, thk railroads £educt frpm jnpome only the normal depreciation allowance, but nevertheless reduce their tax bills by 52% of the excesb of the fast amortizationi^brft- Incorporated 1933 A mutual fund & L C & E. I......... factor. source applicable.fi TJncier the ICC Group C. B C of excess to Net Inc.* credits, however. a the 'V'.; Inc. Tax that Two other sources are peculiar to the rails account-procedure prescribed by the ICC. Most^ , familiar is the tax deferral that hrises from fast amortization in / as of & mem¬ Federal Rock are further Reported St. income bers tabulation showing that, due to a j Chi. rlet Co., 139 West Main Street, change. E. Tabor 1961, it does Seem to 1 ~ ■/«', year . to with paid the full 52% Federal tax rate in 1956, and that the approach to this was made by the Virginian and the Nickel a 46.5% accrual in both cases. The calculations are pur¬ concerns which can well employ the tax offsets that they All of this is thoroughly according to the law and prescribed accounting.- It is only impor^arit'that it be understood to be boosts * were have been if the full 52% tax such Winston — with carried offer. where anything nearest by other case 111. now among which is the retirement of non-depreciable prop¬ not a single one of the group of representative rails listed erty, Cent. The ADMINISTERED FUND now. and, here and there, we find cases, of concerns with large tax credits which are eagerly sought for merger or consolidation tax 7 or Atl. the THE FULLY vanish in 1960 to do Tax credits arising from such sources, of courseware not pecu¬ liar to the railroads. The industrial field is full of similar occur¬ 135 S. La Salle 8t., Chicago 3, HI. These proposals ^ Following is . Selected Investments Co. DECATUR, reasons, rences Prospectus from pour dealer ' Bullington. is reply was given by that body later in the month, but only in connection with the fast amortization practice. The upshot was that the ICC refused to consider any change in this connection for two reasons. One was that to make a change in this practice that has been in force since 1951 would be "disruptive." The other was that the fast amortiza¬ tion privilege expired with the 1951 year-end for this most part. Since its effect on rail earnings will be / equivalent to almost 20% of that year's reported net and also accrued only a small 1956 tax bill. More notably, the Chicago & american - j / having reduced the preceding year's tax bill to a minimal figure by the absorption of much of the loss from the August 1955 flood in that year, and the Erie, suffering to a far less degree from the same flood conditions, took a 1955 tax credit Selected With Tabor & Co. (Special fco The Financial Chronicle) ' . Exchange, proposed several changes to bring rail¬ surplus, ■(1/4 V ;v\y1: Reports and Tax Credits after was 39 road accounting into line with practices in other fields. One of the proposals was to eliminate the allegedly fictitious benefit to net income from the previously described tax deferral item. Another was to have tax adjustments for prior years applied directly to Only close students of .the Rails have any idea to what extent the income reports reflect actual earnings and earning capacity. The "man in the street" would not know, for instance, that almost half of Jhe reported $3.01 per share income of the Delaware, Lack¬ awanna & Western for 1956 was represented by a net tax credit. That is to say, the Lackawanna not only paid no Federal tax on ^S^income/ but also * received a credit amounting to $1.46 per share against a succeeding year's tax bill, and this credit, accord¬ ing to prescribed accounting, was taken into 1956 income to in¬ crease it by that amount. Pr&spectut from with Company, South La Salle Street.- name affiliated with Hallgarten now Alex¬ connected Securities HOUSTON, CHICAGO, 111.—Philip L. Stone & By GERALD D. McKEEVER nconr" is'-now Channer Hallgarten Co, Adds (Special to The Financial Chronicle) Club CHICAGO, 111.—Verne B. ander and assistant to the head of the Public Utilities Research Division. E. M. with Joins Channer Staff lytical work in the industrial field, he became a security analyst New York Stock = 1949, he be¬ member of the Investment Department of Guaranty Trust Chronicle) — Caslmir — associated (Special to The Financial Chronicle) graduate work finance at New University Graduate School years 111. now did and came a Mulligan, III. (Special to The Financial later is He was formerly Stanley Swiech & Co. with of Business where he received his With Mountain States • CHICAGO, . Chronicle)/ La Salle Street. &: Research B.S. a Master's Degree. South two Oil and gas continued to be the < Wojcicki . banking York opened 135 (Special to The Financial , Barclay Investment Co., 208 South Securities Life Plourde Frazier Street under the direction of Now With Barclay Inv. degree in Busi¬ ness Administration from Lehigh University Class of 1949, Mr. COLLEGE, Pa.—Green 'branch of the New York Stock Exchange.. :*:\v. « : Holder of Green, Ellis Branch a members Insurance.. Company since 1953, specializing in the an¬ alysis of public utilities securities. Secretary of Over¬ in corporation's largest single cate¬ gory of investment with the $69,841,940 invested in the industry representing 30.5% of the corpora¬ "; York Equipment Corporation, leasing company. ' : STATE C. Corp. early this year, and prior thereto he had been with the In¬ vestment Department of New in¬ reductions Ohio Edison i leaving 5,700 shares; 5,900 sharespf Pennsylvania Pow¬ er & Light leaving 41,800 shares; and 9,300 shares of West Penn Electric & Air aircraft 4,800 shares of British Pe¬ troleum Ltd.1 leaving 20,200 shares the Petschek banking firm of Kuhn, Director seas Joseph Mr.- Plourde joined the staff of Fetschek Director Charles "I. of manager of the Public' Corp. is sponsor and manager of the Na¬ tional Securities Series of mutual National were: in as was western 'I to The Financial Chronicle) ATLANTA, Ga. — Joseph M. Ferguson, Jr. is now with Courts & Co., 11. Marietta Street, N. announced: by- Henry J. Simonson, Jr., President. National Securities & Research,: Distributors qualify for this Assistant | (Special Utilities Division of National Se¬ curities & Research Corporation been Group, Inc., 63 Wall Street, New York, N. Y. Mr. Elliot, who be¬ award,'is appointment Plourde Anniversary of- with / Courts Adds to Staff > \ The & 10,000 and V 2,275 held; 5,000 shares of Inter¬ 20,000 . ' - Potash total a Plourde Appointed By Nat'l Sees. Research j the portfolio. Among new additions to the portfolio during the first quarter were: 12,000 shares of Metals & Controls shares stocks made miscellaneous investments the of Chemical investments representing 10.6%' of net assets. to¬ a held; shares net asset value of of of x Houston Light & Power for tal of 21,200 shares To $228 Million A total Bristol-Myers for a total held; 5,450 shares :•*. U' * 000 omitted. t , It should years , • .*• • > perhaps be mentioned that in the case of B & O, B & M, Central of Georgia and others subject to indenture provisions governing available earnings, the earnings shown are the full earnings and are not "after funds." - Financial Chronicle .The Commercial and - Thursday, April 11, 1957' (1734) 46 The following Indications of Current latest week week Business Activity Latest Week Ago * Ago 7,149,19( 7,819,000 7,976,000 7,518,500 8,076,000 7,694,006 25,060,000 2,265,000 26,723,000 25,444,00(< 2,506,000 2,238,001 12,855,000 14,175,000 12,033,00< 8,385,000 8,572,000 8,205,001 203,489,000 205,521,000 20,168,000 203,749,000 21,469,000 198,209,001 19,978,000 75,855,000 77,603,000 85,698,000 62,583,001 37,098,000 36,886,000 37,064,000 33,896,001 694,922 ,685,833 703,984 724,968 642,210 646,840 645,420 673,758 $281,484,000 $358,987,000 $320,433,000 $276,501,000 133,498,000 157,930,000 156,049,000 Apr, 127,546,000 153,938,000 225,489,000 162,503,000 120,452,000 Apr. 124,688,000 141,245,000 147,716,000 108,750,000 29,050,000 84,244,000 14,787,000 11,702,000 7,786,300 * 1!8,0&9,000 26,007,000 V -2,170,000 12,296,000 8,778,000 V ' > (number of cars) ; Mar. 30 freight received-from connections (no. of cars)—Mar. 30 — Ions eacli) . Apr. __Apr. ; State BIJREAu"of (u. s. Bituminous coal and lignite COAL output (tons) (tons) anthracite Pennsylvania Mar. 30 '•"■10,565,000 10,260,000 9,660,000 Mar. 30 386,000 407,000 418,000 store sales index—federal reserve system—1947-49 average = 100 Mar. 30 department bdison electric institute: Electric output (in 000 kwh.)_ Refined inc brad street, dun — 11,693,000 a Apr. — (per lb,)___—____—— . prices metal (e. m, j. & ,_ — Apr. 2 Apr. Apr. 2 ; : 5.670c $64.56 — _ Apr. — daily averages: U. S. Government Bonds >— Average corporate 5.670c $64.00 $60.2 $53.67 31.425c 31.550c 45.825c 30.175c 29.100c 29.800c 47.775c 16.000c 16.000c 16.000c 16.000( 15.800c 15.800c 15.800c 15800c 14.000c 14.000c 14.000c 14.000c 13.500c 25.000c 25.000c 24.000c 101.000c 98.375c 100.7 oOc Apr. Apr. Group —Apr. x_ 93.08 96.85 96.09 96.54 106.39 101.47 101.47 109.79 99.52 99.36 99.20 108.16 9b.85 96.85 96.54 106.39 89.92 89.92 89.64 101.47 95.32 95.47 95.47 105.17 97.16 97.00 97.00 107.09 97.94 97.94 97.94 106.92 \ 3.25 .. " "Apr. — 90.40 101.47 3.96 3.66 3.66 * 3.95 4.42 * Raflroad Group Utilities Public * a }!!.'> „ 1 Group Industrials NATIONAL PAPERBO^RD ASSOCIATION: (tons) of activity Production Percentage 3.66 4.U4 'j 3.^*4 3.94 3.y4 J.3»i 3.88 3.91 3.34 407.9 408.7 4H.7 420.5 257,167 350,780 291.219 __ 274,516 288,866 266,246 290.965 92 95 92 101 408,271 408,010 454,345 546,9.>4 TRANSACTIONS FOR ACCOUNT. OF MEM¬ ODD-LOT DEALERS AND SPECIALISTS: Transactions of specialists in stocks in which registered purchases Total METAL 108.00 110.97 Total sales Total initiated purchases sales Short Other — — — Other transactions Total M"rMar, 16 Mar. 16 i sales Other Total sales initiated off the floor— ——-3 — Other sales Total sales — , DEALERS EXCHANGE Odd-lot — sales Number SECURITIES dealers by ■ Short Other —Mar..16 ..Mar.16 Mar.,16 Mar. 16 —Mar. 16 of shares—Total sales Mar. 16 Mar..16 sales sales ROUND-LOT STOCK ACCOUNT FOR SALES Antimony, (per Antimony, (per refined (per = — U. 8. DEPT. 163,000 359,850 35,200 29,900 46,400 19,900 406,980 213,930 426,880 " 496,296 94,950 714,080 297,654 104,330 84,550 492,390 376,445 , * IO8.O0O 801.550 * 640,370 596,720 460,995 903,610 1,702,521 1,872,036 1,420,914 3,052.110 289,050 347,140 328,310 465,830 1,599,180 1,780,610 1,419,595 2,839,950 1,888,230 2,127,750 1,747,905 3,305,780 Bismuth NEW 1,003,696 $46,511,275 1,177,300 933,017 1,G24,939 $55,432,432 $42,531,243 $85,358,730 814,542 857,273 676,863 1,450,202 10,757 8,728 6,769 6,807 803,785 848,545 670,094 1,413,395 $37,037,054 $40,190,410 $31,762,434 $74,191,937 203,880 197,500 153,910 380,650 28 £112.344 £114.534 13.500c 13.500c 14.000c 14.000c £99.444 £103.256 £96.850 £98.682 , ■ 15.800c • £119.375 £115.423 13.500c '• 14.000c , £100.405f :• £96.375 90.901c 91.375c 78.5G5d 79.3P8d 80.290d $2.79806 $2.78570 SU.BOoto ) 101.303c 100.745c 100.506c v • „ $35,000 $35,000 $255,000 $255,000 $35.000, $267,583 >.5WUC 36.470c 33.000c 33.000c 33.000c 33.500c 33.500c 33.500c -.(>9oC .< $98,000 $101,038 .$103,000 $1.70000 $1.70000 $1.70000' * $1.70000 $1.70000 0 $ • .78000 $1.70000 $2.00000 $2.35000 $2.60000 25.000c 35.250c 35.250c ' -U ■<", $2.25 24.400c 37.100c 25.000c '»t $1.70000 - . - Not Avail. 32.500c v -74 (»00c 64.500c $2.25 $2.25 of Feb. EXCHANGE—As STOCK firms Total extended hand on Total value customers———,,—r-,W in banks in U. value Member shares——— listed of I 3.— balances..*. credit free listed of $2,763,440 34,672 322,475 ' 828,127 207,719,493 101,316,654 balances__u— -4 debit net to and customers' of Market '' ' margin accounts— ; carrying customers' Cash , : (OUO's omitted): Member borrowings bonds. S. Govt, issues.^ other .collateral— on *$2,789,211 28,560 *342,019 *865,837 211.997,259 75,050 2,158,264 100,950.985 83,931 2 091,882 2,569 2,737 _ 1 . $2,774:420 34,499 340,905 913,175 209,558,874 105.443.575 83,103 2,355,166 t FORECLOSURES— ESTATE REAL IN8UI LOAN AND SAVINGS FEDERAL ANCE CORPORATION—Month RUBBER MANUFACTURERS of t Dec.. then farm and foods— **Source: National Coal 2,403 i 203,830 197,500 153,910 418,670 501,530 384,130 554,670 t Shipments 7.812,185 —-. * x_r— — Inventory 380,650 • ASSOCIATION, (Number oi)— Passenger Tires and 412 400 481,960 436,750 576,590 - Tires Bus 8,330,760 9.486,490 7,057,470 15,927,910 8.803,160 9,968,450 7,494,220 16:504,500 ' Production * —— — - Inventory Tubes 2 Apr. Apr. 2 2 116.9 117.0 89.1 88.5 104.1 103.5 84.7 80.6 76.3 125.3 125.3 121.2 Apr. 2 84.2 Apr. 2 125.3 Association. 113.5 116.8 89.1 103.9 88.4 . .100.8 of 133,459,150 tons as since introduction of East St. Louis exceeds 8.296.362 7,425,137 16,977,616 16,493,563 ^ 7.661,209 , . 16,546.337 1,207,524 1,130,382 1,138.505 1.317.606 3,o12,(JJ4 3,3(7,991 2,970,623 285.361 1,065,754 960,678 4 : - ——————1—— 214,134 330.575; 285.825 246.236 331.957 780,080 772,072 821,931 3,828,811 2,837,451 3,607,661 3.J64.259 5,788,703 2.569,575 6,109.425 2,917,472 ' 6,293,390 35.417,000 37,518,000 28,977,000 37,641,000 27,495.000 37,656,000 28,363,000 26,524,000 26,875,000 Motorcycle, Truck and Bus Inner (Number of)— Shipments — — (Camelback)— Shipments (pounds) Production (.pounds) ■ ! * (pounds) Inventory 'Revised figure. producers' and ^Domestic five age cf daily Exchange. —— — Rubber from East St. I - Inventory Apr. 7,064,300 6,587,164 (Number of)— Shipments Passenger, { of January: INC.—Month Truck lilncludes 792.000 barrels of foreign crude runs. SBased on new annual capacity 1957, as against Jan. 1, 1956 basis of 128.363.090 tons. -(Number of orders not reported 'Monthly Investment Plan. tPrime Western Zinc sold on delivered basis at centers where ireight from pound. 15.800c £116.256 —— — Production 1, a (per pound)— (per YORK Tread products cent ingot 16.000c 16.000c r 15.800c £113.150 ion» pound);—-i /"Nickel' ______—l__.___i__i._-1 Magnesium NONFARM . OF Revised ligure. one-half — 237,000 109): commodities All commodities other * pound) (per pound)*.,—'. 97',<> grade — —— •Shipments Mar. 16 Mar. 16 —Mar. 16 —: Meats Jan. pound)———_ (per Inventory Processed foods of ' (per ounce)—--—1_— refined Not Avail. Not Avail. ' . Laredo Tractor-Implement Tires (Number of)— Commodity Group— Farm •_ pounds).—__ 76 pound), bulk Production Total sales All • pound), boxed Laredo—_— tCadmium, gCadmiuhi 4 York boxer,__''__: ,' -1!Antimony/- New JCadmiuin (SHARES): MEMBERS WHOLESALE PRICES, NEW SERIES < flask 01 (per £.00,8 8 £264.716 "91.375c ounceV .^_ -—_Jb—w ounce)—!—*— (per (per Sterling Exchange (check) Tin, New York Straits__— Gold (per ounce, U. S. price) 337,870 TRANSACTIONS , LABOR—(1947-49 London ■c 45.822c 4a,ooii 16.000c ( v 44.588c * £244.100 f r London . ... 33.337c 30.553c (per pound) (per long ton)——— (per long ton) —Lead— 'r'4' Common, New York (per pound).—: Common, East St. Louis (per pound)—_ iJPrompt,' London (per long ton)—_ ttThree months, London (per long ton)x.^— Zinc (per pound)—East St. Louis: §§Zinc, Prime Western, delivered (per pound) ttZinc, London, prompt (per long ton )_t—_ ttZinc, London, three months (per long ton) Silver and Sterling Exchange— ". Silver, ; 35.526c 32.576c — prompt months, 1,978,180 ON THE N. Y. STOCK Short sales sales (per pound)___ Export.refinery ttThree 19,110,000 19,428,000 9,633,000' " 481.7 ' M. J. QUOTATIONS)— & :; 960,260 Total round-lot sales— Other (E. refinery t+London, ■' Mar. 16 1 ROUND-LOT STOCK OF PRICES Production by dealers— EXCHANGE AND 21,564,000 18,725,000 10,790,000 431.6 153,221 1,499,163;' " 19,428,000 .» other sales—.. Round-lot purchases by dealers— Number of shares TOTAL 21,537,000 18,639,000 February: 197,360 260,330 990,906 18,275,000 " 8,749,000 437.5 2.70,470 545,420 ..... ... Dollar value Number „ spindle hours per spindle in place Feb. Member Mar..16 Mar.. 16 dealers (customers' sales)— Number of orders—Customers' total sales Customers' shqrt sales sales 2—„— Mar. place on Aluminum, 99'/r grade ingot weighted aver-r. age (per pound)—_—— Aluminum, 99S^ grade primary pig—-* r 996,35 1 Member borrowings 011 U. Odd-lot purchases by Round-lot ■ (DEPT. OF COMMERCE): in , COMMISSION: purchases)—t Dollar yalue Customers' Mar. of as -■ 760,017 1,751,343 16,527,246 13,639,000 — active Cobalt, 301,400 ' 840,567 1.640,031 15,217,293 ?; 128,446 x,' 1,701,103 14,051,133 112,984 EXCHANGE (customers' shares of ;-■> ■ February..^-—634,366 of 47,053 COM- OF DEPT. — 2„_—! Mar. spindles Credit ODD-LOT ACCOUNT OF ODDSPECIALISTS ON N. Y. STOCK AND month Copper— Domestic STOCK TRANSACTIONS FOR LOT LINTERS AND v 1,969,290 391,441 Mar. 16 —Mar. 16 -—viar. 16 —Mar. 16 _ —_—_— 139,433 118,564 of period 1,631,420 - transactions for account of members— sales Short 119,925 :___ (tons (tons.of 2,000 pounds) ' purchases Total 101,565 pounds136,330 829,220 331,300 - .. ' 1,026,580 . . _ 986,820 , 217,550 —.—VIar. 16 ——Mar. 16 Mar. 16 — -— — .__ , 1— 1,199,730 252,750 Mar. 16 sales Total sales _ • -r<—_—__— _____— Total round-lot v . : ' 995,110 836,210 Mar. J® Bales Short 158,900 the floor— on purchases • 1,388,740 212,910 1.040.610 Mtt1, Mar. 16 —— Other transactions 2,000 Platinum, „ .—.' 102,871 127,967 S. A. U. Active . ^ar^ai; J® ;■_*.* sales Other sales Short —_— 120 r-£—— * 109,556 139,150 Spinning spindles ROUND-LOT BERS, EXCEPT 150.954 2.843 101,032 134,119 Quicksilver 110.72 110.87 236,126 2,801 • 2,000 pounds)_____ of (tons Silver, New York Apr. 5 average —100 ,389,923 175,958 479,392, 2.723 Spinning spindles active on Mar. 2———— Active spindle hours (000's omitted) Mar. 2 3.37 4.44 275,692 INDEX— - DRUG REPORTER PRICE OIL, PAINT AND 6F8.151 167,111 299,488 ' — — COTTON SPINNING 3.04 .Mar. 30 ju -J'- ' jviar. ju — at ena oi period Unfilled orders (tons) 1949 ' (tons)- Orders received v 3.88 ._Apr. COMMODITY INDEX- MOODY'S 3.r3 a r. Group- ,, INSTITUTE—For Month of February; Stocks 3.27 3.97 . . 490.443 :— —. tons)— (net America South Cotton 3.18 ■ 3.80 4.04 . ^ 297,106,000.327.362.000 34,251,000 consuming establishment as of Mar. 2— In public storage as of Mar. 2___—' Linters—Consumed niontn of February * • 4.06 - - . l<,«^^,c00 In 3.37 3.97 3.66 . ' 3.79 V 3.95 4.42 7 3.30 3.22 3.95 3.78 - Asia COTTON •• averages: Government Bonds 91.44 91.06 - 13.5UO- 13.500c 25.000c 99.000c 13.500c Apr. Vpr. Apr. Apr. Group corporate 5.179c 5.670c $64.56 31.550c "*Apr Industrials Group Average (net tons) (net tons)__^— Refined of • - • —— Copper production in U. S. A.— Ciude (tons of 2,000 pounds) In '■ •<■?... 2x,^xo,uu0 Central America (net tons) Refined cooper stocks at end $50.50 moody's bond prices yield daily tons) Europe COPPER 217 327 " anthracite Pennsylvania ol Undesignated 10,846,000 $45.83 Apr. (delivered) at_— Zinc (East St. Louis) at Aluminum (primary pig. 99% ) at Straits tin (New York) at tZinc U. S. w'VovV • — MERCE—RUNNING BALES: refinery .at—___———______— Apr. at——__—_—_—___________—_—,— Apr. Lead (St. Louis) at Apr. moody's bond To " , of January: exports (net To / MINES)— (BUREAU OF EXPORTS S. Consumed Export Utilities 122 ;! $44.17 : 2 Lead (New York) Public ,99 export 321,406,000 .To North and 503,000 11,867,000 and (barrels).— stocks all Month U. quotations): Electrolytic copper— Domestic refinery at Railroad 290 231 4 "" Pig iron (per gross ton)-. Scrap steel (per gross ton) 11,694,000 imports domestic consumption Deliveries to fabricators— iron age composite prices: Finisned steel ■' 112 ^barrels )^_——-^l—_ products Decrease 10,311,000 ' 25,781,000 29,000 2-7,071,000 (barrels)—18,526,000 ^ (barrels) ' 6 Apr. — (commercial and industrial) failures - ... -r\ . . — 233.438,000 246,548,000 214.134,000%" 221,804.000 *■ .24,221,000 , 24,703.000 ' ' 43,000 41.000 - 26,124,000 * 27,419.000 14,722,000 .19,144,000 228,684,000 •. < barrels)„ imports oil Crude •To mines): (barrels)— (barrels)-, i output V —. : • 254,494,000 output oil crude output Benzol COAL 7Vv>(: construction and municipal Public Ago riui • . V:. : i - gasoline Natural ' >V: (barrels of 42 gal- ' 17,333,001 'V■v'.'-','V <,.>>,■ December: oi Total domestic production ENGINEERING , Total INSTITUE—Month L PETROLEUM AMERICAN Domestic freight loaded ENGINEERING CONSTRUCTION NEWS-RECORD: ■-'"V U. 3. construction Private construction Year V Month - •- v>.• •':• Total gas sales (M therms)——— ' 8.812,700 7.501.000 . ' 8 392 500 Natural gas sales (M therms— 8,497,100 _ 7,243,800 = 7,934.000 Manufactured gas sales (M therms)26,860 26.000 ; . 44,400 Mixed gas sales (M therms)——___ ;/ 288,800 v 231,200 '!>: 414,100 Indicated association of american railroads: CIVIL 'Month . 2,483,000 2,401,000 »2,319,000 §2,328,000 Apr, 14 castings (net tons)— ReSldual fuel oil output (bbls.— __—_Mar. 29 Stocks at refineries, bulk terminals. In transit, in pipe lines— Finished and unfinished gasoline (bbls.) at Mar. 29 Kerosene (bbls.) at__! ——i i .Mar. 29 Distillate fuel oil (bbls.) at ____.—___— . ,__Mar. 29 Residual fuel oil (bbls.) at Mar. 29 Revenue Previous month of AMERICAN GAS ASSOCIATION—For 100.9 of that date: are as January: institute: Crude oil and condensate output—dally average (bbls. of 42 gallons each) ______——Mar, 29 Crude runs to stills—daily average (bbls.)__—_— Mar.-29 Gasoline output (bbls.) — , __Mar. 29 Kerosene output (bbls.)— — „ Mar. 29 Distillate luel oil output (bbls.)—.—_—.—+ Mar. 29 Revenue of quotations, cases either for the are Latest AMERICAN petroleum ' in or, Ye*r , 93.8 *90.6 $91.0 Apr, 14 Equivalent to— Bteel ingots and Month that date, on production and other figures for the cover Dates shown in first column month available. or month ended or Previous Week steel institute? Indicated steel operations (percent of capacity) and IKON AMERICAN statistical tabulations +Based on the producers's quotation. gAverage of quotation on special shares to plater. but less than carload lot boxed. ?5Delivered where *sF.o.b. Fort Colburne, U. S. duty included. **Aver- platers' quotations, tons or more IBased on the average of the Louis exceeds 0.5c. mean ■ and biu ana • ask quotation , freightj at morning session of London Metal - Volume 185 Number 5628 ... The Commercial an^Financial Chronicle (1725) the Serious Downturn in Business Is major, sectors of the expansion is continuing, and, what economy. - Consumers appear' to is more important to us, replacehave carried into. March the rec- -merit of obsolete equipment now ord volume of spending at retail on plant .floors is becoming more stores rung up in the preceding imperative than ever before.' v three months. Government Unlikely, According to First National City Bank Despite prospect of temporary ad3 ustment period, the April :y.' Output ... spending is also all are up year. New York expects no serious downturn this year due to 0£ alb but ' reported adequate and steel now strong of fiscal are stepping public up h«f many longer persons .expected.; all types of soft capacity L,+ n.i«te points picture out, ''the . continues; to and business and February .:#o public Outlays ,.week, month, construe- ..; -The strong spots.: Industpial nanlv production in March has not made the usual, seasonal production to .- the gain, steel out^; check- March year. / :; - ^ :• v months last year, to F. W Dodge tabula- of-according t",..i ", tions. t ■■■'• - - firmly/ sustained, -in consumer ; goods industries have been getting much publicity, but employers in 99% of the nation's leading industrial centers reported to the U. S. Department March ^of that te late Labor , capital goods industries at 133 South Seventh Street. : 1 °r w (special to the financial Chronicle) . Roanoke Building. mh— aPwa?^dlJi text appearedin - - Chronicle, March 21.] 'Within our conception of With A. C. Allyn '(Special to The Financial Chronicle) - *oai hold r . n^i,lc.frv.nr,t , t • ^. prosperity as temporary periods of; i, If we define any conp ^ °nary as Tt J ~ o- ISv , ---- firms - « VJ ,,. I avoid look . - bee^a 1.. ^- sales* ji.. : .14^'.. major factor in ' i -»vri or;-merely sLotwirig-the which inventoties build rate , mand for economy, including services reduced. trade rather than industrial- cufrent -41 " 4% ^increase a ; - in lohg r" as the scheduled rise to 1957 had already 1956 :— run—are not the same tus— thing Exchange nixcnange nf 1Qf\7 Quarter of 1957. Tn QnV)intrn so adjusted our thinking, fVimr n at deproduction is . - . . ./ already scheduled annual rate, but at $38 billion a membershin memoersmp With E. F. Hutton SAN FRANCISCO, Calif.—Wil¬ liam K. McDonald, Jr. is with E. F. Hutton & Company, 160 Montstreet „omerv * these DIVIDEND NOTICES > . , .. , , , , . imminent recession, securitv and commodity the and. an need for precautionary stocks. In Warner & Swasey Company, rresspriCn ob- Edition, trimming inventories has served recently: markety have behaved better-than; been a means of conserving work" 'The fact is that most of the they did earlier in the year Con- ing capital in a period of tight-programs canceled or postponed fidebce , bolstered was during the money--and reduced corporate by official reports that liquidity. For,., these reasons, it businessmen were planning to. has become increasingly popular maintain expenditures for / new to. 'let the suppliers carry the plant and equipment at about the inventory.' present record rate during the, ir;„oi month long-range and in some cases overly ambitious nroiects. Normal were Manufacturers of (Special to the financial chronicle) become affiliated uo., Street. /o with v R REGULAR , j?eaerai QUARTERLY 1 of 42Y2C on DIVIDEND complete line storage batteries. A w, rresspnen & a of outomotlve and industrial BOSTON, Mass.—Emily D. Ber- NOTICE DIVIDEND share per Common Stock, declared by the was Board of Directors _ on ,, remainder of 1957. highly regarded In survey, Strength oV Final Demand another consum- ' son "The slippage in industrial output—moderate though it is—is the y.®ry „. been last month Tn last October from on plateau a the to'^ rates. By practicaUy any cnteiiom mont^.over-all; business inventories at Feb- Pf^sent are neither oppressively ,. held adjusted, steady at cept in December when it T„ , In March, , . ex- was 147. , leveled and off a extent that on- season individual to carry out an adiustment while over-all demand is high, the possibility of a downspiral cbances for justment' pact is remote is are slight enhanced. the and 'rolling more read- The im- long as final demand remains strong. Thus, the creasing creasing real issue in aPPralsinS the out" industries industries also adj usted production schedules, The upswing petroleum and in production other items of prob- ably will be insufficient to offset these , losses, . downturn is likely.,, ... in and a so lpok { nQt the sQft spots which reflect <inventory adjustment or shifts in demand from one purchase tb another. The *S s^ren^b . - .j-~J.iNklX'HElB During March, reports indicated level of a 71st Dividend Declaration The Board of Directors has declared terly dividend of 25tf per share on a quar¬ the outstand¬ ing Common Stock, payable May 10, 1957, to stockholders of record April 19, 1957. Since 1936 Schenley has paid cash dividends to its stockholders totaling $111,441,589. ot a continued high expenditures by each of and Lewis S. Rosenstiel Chairman of the Board and President "' of Directors has dividend of twelve a one-half share cents (12^c) per the Common Stock ($1 Value) of the Company, on dividend a (25c) cents per of twenty-five share on the Common Stock not (no Par Value) exchanged under the yet Company's tions dated dividends 1957 at March 27,1957 Board declared and Par lmoor- succession DAGGETT * The ^ype of moderate _ the production; index H. TECHNICOLOR, he. in- when normally both should be inOther Uther Industries, Inc. dangerously unbalanced nor «p0 ward .„ automobile at high 4947-. dustries are-able 146, however, steel mill erations declined output , rec¬ April 22, 1957. PRESIDENT ^ prior five ^ ruary, the Federal Reserve index (seasonally A. at a comes 1957,, payable May 1,1957, through ^ 49—100) namely, it 11, !o stockholders of ord demand -from; the overallconsumers,ybusiness, and govern-production m^nt « being maintained at peak princinal soft spot in situation. Industrial had February "There is at least one good rea^or thinking that the shift in inventory policy may not carry reaffirmed their optimism and willingness to buy. ' ers I (Special to The Financial Chronicle) tering one of these 'temporary pe- 6 early ex- riods of adjustment,' reflecting production alone, is 1 considered. Inventory andb Purchasing Shifts pectations may not be fully real- shifts in inv^htory policy and There is no evidence that the rise* • "Although inventories are still ized» as has been the case in each production scheduling. Neverthein Gross National Product has rising the mdrket for manufac- of the last f0"^ Quarter- Estimates less, the basic strength of conhalted; certainly, it has not turned tured ' goods 'has been " reduced of expenditure patterns in the sec- sumer, government, and business down; ;' \. •• i:. ; nearly half .at billion dollars a ond half of 1957 are still verv demand, discussed above, provides "Business sentiment has seemed/ month through^'the shift in inven-: llf n!a^ve' best. guess is no basis for anticipating a serious if anything, a little better than it tory. policy.. Iter the most part,' ^bat they will be close to the first-downturn .this year. There... is, was -in /February. / This-1---'does not'purchasing agbhts ihave been pro-' Qu^er r9^e; :'. v^ nothing -ui .the present picture imply that people have suddenly, ceedirrg cautiously. ; Despite; a ' Several shifts in capital spend-, inconsistent with the idea of a become bullish again, or that buy- fairly/steady vrise in wholesale mg.P'ans ^ave, already been an-, long, flat crest to the'prolonged •ers have- started speculating or-prices, ho; rush to ..beat" furtiier- nounced. However, a leading ma- advance.. ;; covering ahead once more. How- - price boosts lias developed. * As jbine tool-, manufacturer, -Mr.:> ever, less talk is heard about the shortages disappear, so does the /Walter. Bailey> President of Joins K. W. . . to xo confi- Cflll investment goal^^ for the full year, come a more dependable and vigbusinessmen need to increase °rous force for good times and for fbeir spending less than 2% fur- growth. ther- Second quarter outlays are "The economy may now be en- up elected eiecrea the Exchange Willis J. Meehan, maximum prosperity ospenty and.^^ m growth in the short run. Having beei\ accomplished by the first "^ejn future is made it canmore bpTo achieve their uUTflDlG.-^AQd durable, the and ^thGrfibv thereby it be ritidbf/ar1 11 recent production trends. Whether a firm is cutting down its stock weakness.They are producing a generally sideways trend.. This is particularly true when the over- for "Most- of from burdensome inventories which has "i/ifnvo On. balance, the strong sectors business offset theareas of dangers of ' - _ to is still insistent. and - • . . all ■ o high 'levels, andeven where rate. ; v. orders have slowed, the nres-' 'The recent Scnerience of steel sure for more output and quicker and auto finns^voifies the desire shipment—as m structural steel— in .. With Bache & Co. outlays running ^retail rfeles since early/ are- earmarked fbr expansion of (Special to The Financial Chronicle) n -'rWe assam~ ho mtviAri Ac rocuit in>the r»ar>af»itv Thoco nani+oi nvrton/ii_ that all ..areas .of.the model y|ar.:;As a result, capacity./These capital expendimust ™«;?!iaJieal^ trf economy ?c.°5°™y must' - BEVERLY HILLS, Calif.-John d e ale r s accumulated new car ture-.programs are based not only "R ' capac- Mug is now with Bache & ;stocks totaling^ Co., ^0,000 by the end on y long-run r expectations that y . +uVe- re9bire sellers ,445 North Roxbury Drive. He was of February andf added still more'such investment Will prove prof- +4.ro ^ol1^oinvanafc>./0biec~'/previously with Sutro & Co. during sales of new liable, but on an optimistic an™ * r resign ourcars cars have have been been jteady ^leady during the Pjaisal praisal of of 19.57 1957 business business prospects. Vv/ w-aJ iniAall0n as a national. * first quarter; 'bm so far show no. Manufacturers expect their sales to Mi'rlwPiti Fyrk °x me, , Motpl^oy spring upsurged Equally ;"disap-; rise 8%'this year over 1956, pub-1 teust adjust our thinking CHICAGO 111 The Executive lice utilities, anticipate ^pointing is - th© .realization, that V1-• ^ retailzation that optimum —' ' a gain of- in the Committee of the Midwest Stock sales are falliftgjshort of the 1956 9% and wholesale and retail trade Prosperity and growth — in the new . . Company / up our iT7r* tV"" 77T F^l [Ed'Note- MarcKilSetail .in they anticipate- mod* erate; increases in; employment through mid-May.>-^Backlogs in the . a a - ui layoffs ■ (Special to the financial chhonicu) * aid ev€I7 or group experi- ^ - order to avoid | excessive inven r,and equipment during 1957, an in some tories. wwca.. I Passenger aoactigra car Lett of 6%%'. assemblies increase rtSOCHlWilCO x..v.. fi fr, UVCi LUC ICCU1Uoyer the recordOn the ether: hand, employ^totaled* about: 1-.8 million in the- breaking 1956 outlays. In manument, buying fpdvver, and con- first quarter, and have been out- facturingy oyer half of the are;, « dohll Kinnard Adds ' : fnrtif hvSr^a'li were aptly set. MINNEAPOLIS, Minn.—-Milton a+?^ne-V ?lT?-e' v^P€C M. Malone has become associated fn in Else*h™erK> with R. J. • Steichen & Company, speech to the Economic Club 1 ' re- lines. Scattered ■ inventory accumulation'-continue sumption industry " ^Automobile;'manufacturers quarter. dangers of pumping frlmlhe ^ same of the peak months one new peak in -the first months of 1957 up 7% in January ««,"vvaraea anuary 93% in and -February were 9% - larger is ordi-i than in the oqoi. a or new SJS profecte^awarded in January about March,;,althouA show- both M. Stein- connected with S. R. ; MINNEAPOLIS, Minn. — Bar.bara R. Mark has joined the staff record each : of John G. Kinnard & . it does not set basic demand on part ;of miU customers i^e reducing their fourth -quarter rate and 1 "* l" ■ consumers,, business and Govern*• * r^ie ana commitments accordingly. Opera-. greater than a year earlier ment for goods and services. ContionS have ;.be<f'n reduced from tracts for future public construe-" The Monthly "Letter" of the over 97% of Bank ' kick, although they still strong sustaining factors. are than . . ' Manufacturing investment and number of other expansive factors in the economy have lost much of their a the ;previ- over The Need For Adjustment , 1957 .State and local gov-; . now Livingstone, Crouse & Co., Penob¬ scot Building, members of the Detroit Stock Exchange, S?^Pr^Kml-eVvfn though the .-One-heed not take a pessimistic frl being I delayed program , View of the economy just because and ie#fypes of steel are! a a months about 5% ernments ' on the rise. Over- budget outlays;in the eight ous on of , Federal first 'Letter'' of the First National City Bank DETROIT, Mich.—Sol hart is • , are Adjustment - of ^Inventories Livingstone, Crouse (Special to The Financial Chronicle) - Prognosis of "no basis for anticipating a serious downturn this year" is made by First National City Bank iifter assessing soft and strong spots in the economy^ Bank "Letter" finds a generally sideway trend resulting from strong fetors of off¬ setting areas of weakness, and believes we may|now be enter¬ ing a temporary period of adjustment reflecting inventory ;" policy and production scheduling shifts. 4Y three are payable April 30, stockholders to the Exchange Instruc¬ May 19, 1953. These close of record of -business April 16, 1957. DAVID S. SHATTUCK Treasurer April 8, 1957. The Commercial and Financial 48 Chronicle . . Thursday, April 11, 195f . (1738) = - year,, BUSINESS BUZZ it passed the House by & On that A gJ V^\|| in million days v Commercial Procedures C.—This As: in "temporary" program so-called to aggregate billion. and plus this was foreign sales $750 million. ... . to up "temporary" higher rate of taxes or any new porary f five- of construc¬ gets on to the six-year program a one once banks States United are by the Pete — Drucker—Harper & Brothers F. New N, York, Y. (Cloth) — $2.75. > - . with Businessman Looks at the Libera Arts—Clarence B. Randall—Th. Fund not scheme circuitous This Years 20 America's Next porting country." Federal aid for school tion. dollar arrangements. established credit arrangements made between Governments of the United States and the im¬ tem- as of accordance will be a four- or a as or exactly is It subsidy. .> Importers Commodity Credit Corp. The foreign cur¬ rency purchase price is de¬ posited to the account of the United States Government in "temporary" a as have letter reimbursed has become as and the program banks The . . thing has mushroomed all over the place the then Since . views.] proce¬ paid in dollars by United States banks with which the foreign commodities for currency commercial coincide wit own for commodities in local cur¬ rencies through their local banks. United States suppliers are foreign relief. The initial authorization was for one year of - the "Chronicle's" y pay outright an Agriculture: on ing out Title I sales. "selling" farm products abroad for foreign currencies. It and may or may not Senate Com¬ of the words dures, based largely on letters of credit, are followed in carry¬ Ad¬ for grant of such do them. pretation from the nation's Capiftat a mittee enacted, the program Congress enjoin they to "Normal It was in 1954 that the ministration conceived, % if courts [This column is intended to re fleet the "behind the scene" inter¬ to sustain the resemblance commercial transaction. In the 1 the and over farce that it bears a pattern followed $4.8 paltry a them like not official* that antitrust in them Federal of there is a delicious extravagance, giving American farm prodnets away to foreign countries is being given an insignificant additional infusion of $1.3 billion of funds, bringing the for ;, much so $10 of of assets, shall for not less than 60 up so look can business a or more Jtbe held D. some requirement a that all corporation mergers re¬ yK WASHINGTON, backing, in pass year in certainty, House will this sulting A. C/ Cv Hi/ xJL f Capital from the Nation'i ' " ; a White there form Behind-the-Scene InterpreUtion* almost of view • # # • the other hand* it is eon- sidered on to 3. vote of 393 Adult for Education fWhite Plains, N. Y.^-(Paper) On request., • '•/••• - ' - assets?—Ever try opening your eyes, have other "Do I ■ ■ books. statute proliferated irt other ways. This Correspondent read carefully the debate in 1954 when the . argument The House. V ' farm under supporting price of worked tool would develops that even com¬ eign mouths and mills for sub¬ stantially no return to the tax¬ of the United States. other cutting a commodities rM. give They have they and picked if them is on and up not years. tried to of them for can store what of .. , dive Anything Away , , , personnel. They can finance a foreigner coining to the U. S. to study, or vice versa, or for reporting out its latest $1.3 beauti¬ In billion addition to this libraries ful abroad on make to the Senate Com¬ Agriculture wanted sure that the» voting program, mittee whether or not they are growing surplus and/or price-supported commodities, can also get a share of this farmers, Earl Butz, L. emnly and tinder ; in so quoted "Agricultural this Development which the Act" give-away fruits so of Agriculture the markets and any is to buy commodities, and vegetables. It and even Is reasonable, indicated. If up give away farm logical ISutz ; and sol¬ carried out, permits the Depart¬ ment . committee that Trade Assistant committee, the assured the tiim, the Agriculture, of the all Mr. and knodities support give it away the$e com- is, not obligated to and hoard, -those there farmers why then would just ; t>fc In demanding price supports -anyway. • ' * , * Senate with the the ments . . • "* * satellites hower $2.9 Treasury The cost of shipping to colonies. Mr. Eisen¬ prohibition this satellite countries with ing the American free He lost. little His notice There is 87 (cost to the Treasury) of or wanted stricken. Bill Knowland wanted a farm did fight in the products. get a newspapers. little argument about this in House committee, but not agree¬ nearly Labor be NOT battled. The approve this the proposal bobby TV a as soxer over a Life and ox. of how hard. , about the $1.3 billion additional which House scheduled were committee for 1 approval. •- the million over American million of freight, $1% billion. * the or a is plowed "economic of the Life Insuran request; "Life I economic but —On request; is There now considerable manufacturers from cutting prices in good faith to meet the prices of com¬ petitors, may be stopped in the Senate Judiciary Committee. Without business fighting it last bill to Life tion hope that the Patman-Kefauver prevent •. Insurance" — request: "Partnership Life Ir surance"—On request; "Heal Insurance and the America Public" by E. J. Faulkner (r< print), TRADING MARKETS Botany Mills Campbell Co. Com. United States Envelope. Morgan Engineering National Co. . ' \ - Riverside Cement Flagg Utica FOREIGN SECURITIES.SPECIALISTS ' 20 BROAD STREET • LERNEfl « CO NEW YORK 5, N. Y. TEL: HANOVER 2-0050 - • ' TELETYPE NY 1-971 , development" grants Interef print)—On request; "Sole Pre prietorship Life Insurance"—O request; "Business Life InsuJ ance" On request: "Corpora Carl Marks •& Co Inc. development "In the 103,000.000 Americans*'.- (r of little $61.5 million of co (free to libraries); "You an Your Family's Life Insurance Competition - , Investment Securities 10 Post Office Sqoare, "buying" countries them¬ All Public"—25c per surance — Price is • selves. O Books"—On $221 rightT back — Fashion Park - into Wisconsin .Indian Head Mills How Spent share and Worthwhile these Of this $1% billion, the lion's Col Illinois, Iowi North Caroline "Life Insurance Bu ing" (free to libraries); "List c these dollars minus 1940-1955 request; be gored when '' foreign currencies to arbitrarily trans¬ into $1,984 Y.—"Growt California, for York, in amounts lated of N. New A. S. "value" avail Avenue Madison 22, Florida, Oklahoma prac¬ $221 million. What Parl< Booklets Insurance rado, abroad will aggregate more than "sales" — 488 York Life available of whose pressure is to Menlo Institute of Life In from surance, of five-year inconvenient the tical question group Insurance able %, and individual surtaxes 91% to 42%. This, again, avoids Institute, Calif.—(Paper)—$1, ally would be reduced from 52% from Com Long-Range Planning — Papers of th« Economics Confer search period corporation taxes gradu¬ to 42 Sons. Inc., 441 New York I" ;•.;••* search Institute feverishly as a before the latest statute that & Avenue, Sponsored by Stanford Re — Stanford Re ence Sadlak would have crooner. Fore Sherman J. Maisel r pany large trade organization panting , Industrial Antoni N. Sadlak (R., Conn.), a member of the Ways and Means Committee, and for is / , Implementing Rep. a Fif¬ 730 Growth and Wiley New is Americar N. W., Washing¬ N. Y.—$7.50. « gimmick. Another — Fourth to retain the bar against bolster¬ the into "sale" commodities. S. the entered involving billion U. has currency to reduce vote a appropriation, ex¬ cept for one thing. The exist¬ ing law forbids the government from using tricks to give away farm products to- the Russian first authorized in 1954, S. U. of no more newspaper Department propaganda kinds. Their beginning the passed billion shall will which "around $2 millions in the however, is to "finance foreign economic de¬ velopment." Since $1.3 attention than use, program Debate This Depart- tnent of Agriculture did not buy tip other of biggest foreign Treasury-made market. Secretary Little S. and U. say "mutual aid" colony. Agency employees housing U. S. military for or States. but the committee does whether that is pro¬ military estab¬ lishment of the U. S. of the House not Information for money in the United passes farmers curement for the for the support abroad Department and U. S. pay $241 million of the foreign cur¬ John 'v-ak by the Senate of a proposed "Joint Budget Committee" to align ex¬ penditures with revenue through the simple mechanism of creat¬ ing a committee to do so, without, however, figuring out whether pressure groups like One of these is the passage rency, are, State mechanisms. military procurement will utilize base construction overseas. They before away even dispose not losses of months for held it words, more casting drive in for escapist 5, D. C. Fluctuations, is enormous that tremendous a ■ th< S. 1451, — Bankers^ Association, ton for one Bill" teenth; Street, economy and out of Congress back a mere $7.2 million strategic materials, some of which it might or might not need for the Strategic Stockpile, the committee in¬ dicated -being used to finance fancy foreign agricultural fairs to. allegedly promote markets for U. S. farm products. They may be used for U. S. military They is there gets acquired of problem proving to be so in States may be used for almost anything but reducing the burden of govern¬ ment upon the U. S. taxpayer. large these total, the U. S. this large Of equally an the of the Confederate States of America. United the and is getting subsidy big this to housing (that is another story), unsound than war bonds countries. This foreign currency by picked up in current price-supporting operations can be turned over quickly to for¬ modities simply foreign of the first place, are probably y no loans generally engineering and mixing in the busi¬ ness Since is plow¬ in rency Foreign Currency Uses become. this In lot of people on a that purpose. for S. Government U. add to j- of Summary "Robertson ; While the Congress set ing the money back into these countries in part because it cannot convert the foreign cur¬ cur¬ one useful payers which foreign around original It now inconvertible the Mighty Mouse, defender of the Moslem, Hindu, and other faiths, then get the impression of how did debate clear official ~ of and the in Nowhere a economic of "loans" tak¬ substantial foreign deposit ing payrolls have fun spending when they go abroad, playing Santa Claus, fairy godmother, 1 away anyway. * - lion planned expenditures, consist of shipping of Escapism mil¬ development of the total of $1,176.4 U. S. ^ off commercially, therefore why I" not "sell" (i.e., in fact give) it ; cost the A — out commodities and to boot for rency up opera- it could tions. a supply so vast only in lesser part be employ¬ United States . " ^ In fact the them to the foreign buyer, owned Corp., Credit enoromus to ment. pays was storehouse commodities picked this Financial Institutions Act of 195 considerable leads of the reiterated at the time that Com¬ modity but merely writes off the total value by the nostrum was first passed V Buster?" conscience of undoubtedly the salves only bureaucracy, thing-has the Furthermore, V-. . ms -''j Telephone HUhbard 2-1990 Boston 9, Mass Teletype. BS 69