Full text of Commercial and Financial Chronicle : April 11, 1957, Vol. 185, No. 5628

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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

Copy

EDITORIAL

Outlook for Plant and

See It
"We
at the

can

have both

shorter work week

and

"VI!

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

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

the

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.

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

is the fact that

news

phisticated

These assumptions will be

Continued
address

with

situations,

Everyone interested in securities knows that the stock

markets

than
the

—

markets
markets

stock market.

result

our

spell

Wall

so¬

two-way

stocks

rather

Whether it be

Street's

program—the

educa¬

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

page

by Mr. Young before the National Industrial
Meeting, San Francisco, March 28, 1957.

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.

page

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,

securities

DEALERS

starting

page

36.

State, Municipal

.11. S. Government,
Stale and

Municipal

•

;

•

telephone:

*'•••*

mp—

STATE

AND

MUNICIPAL

COPIES OF OUR

BONDS

THE

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

OF COMMERCE

CANADIAN

BANK

Municipal Bonds
for California's

Rights
We

offer

which
at

All

buy

expire

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

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

;

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

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

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

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

The Stock market Ahead

H«nit of America
national

Exchange Place, New York S, N. Y.

Teletype NY 1-702-3

WHitehali 4-8161

300

jivwcs

association

Montgomery St., San Francisco. Calif.

The Commercial and Financial Chronicle

(1690)

The

Brokers, Dealers only

For Banks,

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.

intended

are not

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

•••*,'

•

■>

Better and faster

full facilities, long

Our

ex-

provide

wire system

broadest

the

with

you

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

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

West

Bank of Virginia

draws

attention-to

;

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

same

drink

v; a

Coatinfling Intereit in

-;Fischer & Porter Inc.

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

continued.

the

ID 33

Tele. LY 62

write

Canada
year

sales.

/ Yamaiclii

"I ?.

the

rather

;

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

ROBERTSHAW's rapidly growing

First Colony Life Insurance Co.

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.

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

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

■

tling plants in the United States.

m-,
dustry, then jl.

the exclusive right to
distribute "Pepsi" in

•

..irapiive

•

HAiiom- 2-0700

suc^, Pian.ag®r
™ent ™

en--

19 lector %U New York 8fJL Y«

Pu* is sold .to others. The "Pepsi"
management team.■
to
niBn

acquired

Since 1917

see

terorifle

RIGHTS & SCRIP

a n

ease,
and

Member#:American *Stock -Exchange'

owned, although most of the out-

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

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. WINTERS

SIDNEY

trols, is currently undergoing an

New York Hanseatic

V-'"-v

bottle

manufacturer

leading

;

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,

;

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

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

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

public

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.

•

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,

available

only

nine times estimated 1957 earnings

CAPPER & CO.

and

With
ties

appears

good

reasonably

19^6
.

2955—_—
1954___:—

priori

appreciation possibili¬

the longer term. Reyn¬
olds .Metals, one. of the
.world'?
over

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

INDUSTRIAL STOCK INDEX

-v

$1.00

18-Year Performance of
'

35 Industrial Stocks
POLDER ON

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

0.37

0.20

0.55

0.4212

24 %-

1.18

0.95

34%—22;

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

The Stock Market

Company

Page

Ahead—Sidney B. Lurie—

„„Cover

''J.

Private electric utilities

expected to invest

are

Outlook

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————

Husky Corn Products—Ira U. Cobleigfr—:

___

arbitrary subsidies which permit public
than

Citrus Industry's ^Success: A Lesson for Surplus Crops

—Roger W. Babson

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.
-

billion

per

years.

this great development didn't just

have

seen

happen.

revolution

possible

our

stand-

living,

ard

The

growth

largely

tool

new

STREET, NEW YORK

4-6551

BASIC ATOMICS

COMMONWEALTH
OIL

Consumer Instalment Credit and Public Policy—A. L.

DuMONT

Mills, Jr. 14

BROADCASTING

Consumer Credit and Government—Grover W.

factory

new

the fact that:-1
has developed a

built

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

time anyone

any

WALL

Telephone: WHitehall

time

•

this

Many people fail to realize that

•

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

V
6

___

_ _ _

the

From

_____

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

Attributing ready power avail¬
ability vto consistent planning for the future and to dispatch
with

STITCH IN TIME

Cover

___.

Why

29*5 million kilowatts-by 1961.

for Plant and Equipment Expenditures

—Charles E. Young—_____—

Ensley.

Even

the
us

operate

can

electric

youngest of
here

terms

his

the

ence

ference

mad
Donald S.

Kennedy

his

when

„

;

cause

the

investor-owned

company

right

get

can

behind horses in the central busidistrict.

ness
seem

quaint.

come

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-

panies

kilo-

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

C. W. Planje

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

Jessop Steel

it is estimated that 6.7

year

million

capability
ufacturers

kilowatts

As We

See It

(Editorial)———-

—_iCover

Jack & Heintz
Bank and Insurance Stocks.

-1-1

station'?' Businessman's Bookshelf

order with the

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

;___

•

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

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___

to have power

Because of this planning, and be¬

has

life.

available

elec-

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

measure

Ifhe electricity has been there - to >

Air Products

-l_-:__"48

Coming Events in the Investment Field

Pacific Uranium

i___

and

Dealer-Broker;Investment 'RecommendationsEinzig: "Britain and European Free Trade'L__:

Vitro

Corp. & Rights

figures show that in
done

was

how this

1956,

machine.

has

increased

productivity. From 1%

98.5%

Think

American

struction the investor-owned elec-

Mutual

vest.

News About Banks and Bankers.

Let's

this accomplish-

measure

ment in units with

which

^teetric facility requirements.

are

.illcentives

familiar.

Fifty
J
years ago
tile
fo
output of the electric industry was
in

1956

billion kilowatt-hours

was

Kilowatt-hours
crease.

Fifty

over

years ago

investor-owned

companies

was

600

the

utilitv

orde

biUio^i—foda2 it exceeds
hillinn
billion. The St/nf
rate of growth fn

The

in-

vrowth

SOO
in

in-

and

fei\s.atn? we,af."°t t" a
to dictate what interest

A'""™

Wilfred

Governments_.—i._

the

b4usl-

thrifty nation.

May.!———________

Reporter's

Public

that
The

inc.

Exchange Pl.fN.Y.-

5
26

Report—

—______

Securities————

Utility

—

We Believe The
36

—.___—

Offerings.—

Prospective ^Security

Tide Has Turned For

Security
.

State

—

and You—By Wallace Streete

Douglas & Lomason

Common

Best

I
I

The

Corner——

Salesman's

The Market

Philadelphia Chicago Los Angeles Uallas

————————

Securities

Railroad

The
,

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

Securities Now in Registration.—

rate

going

Singer, Bean

—

Our-Reporter

the

t_7_————

HA 2-0270

pay

Funds

6
46

Savings

money *hieh we UBf.ln our

the capital

electric

billion

100-fold

,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—__

•

■

■-

a.
Share

and Industry

of Trade

Now Under $8

1950-56 Price

Washington and You

50-Year

Range $4%-$16%
Old

Company

*An

address

Mr.

Kennedy before
the American Power Conference, Chicago,
March

27,

savings

per

capita
.

1957.

•

here

are

the

page

•,

Continued

Sound

^Column not available this week.

ferred.

Net

earned

last

first
1

Weekly

Published Twice

Drapers'

Gardens,

London,

ter

COMMERCIAL

For many years we

have specialized in

and

PREFERRED STOCKS

Reg. U. S. Patent Office

Reentered

ary

WILLIAM
25

Park

DANA

Spencer Trask &. Co.
25

BROAD

New

York

Stock

ST., NEW YORK 4, N.

TELEPHONE HAnover 24300

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•

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quotation
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Sales

1957 estimated at over'

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Pre¬

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1957

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ciency,
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Possessions,

President

Every Thursday (general news and ad¬
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statistical

post

Dana

per

1956.

9576

SEIBERT,

Thursday, April

1956.

Send for FREE

SEIBERT, Editor Sc Publisher

the

>of

York> N. Y., under the Act of March 8. 1879.',

„

TELETYPE N. Y. 1-5

•

HERBERT

plete

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COMPANY, Publishers

Place, New York 7, N. Y.

REctor

Members

1957 by

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I
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4-11
on

The Commercial arid Firmneial Chronicle

uets

Y//

V. COBLEIGH

IRA

Enterprise Economist

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

gredient

cocktails and
Ira

conversation
but

as we

by the

brewing industry,
of

demand

nual

performer,

CFG

1947/56

decade

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

bulk products, about

jjot only

is Corn

sets

12-31-56

Kre-Mel

Syrup,

puddings,

salad oil.
Kasco dbg food,

vestment

foreign

Still

stands on. the books at $12,700,000.

are

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

—

converted
paltry 4 billion

corn

was

worth

net

about

was

the

for

for
corn

being at least.

There will be pro¬

depth

research

will

the

of the market this sum¬
building also will help keep the '
respectable level. Mills that'produce strut:-

mainstay

looked-for

The

pickup

demand

from

maintain

will

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¬

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

—i
several

-«•—
from

earnings' dips this year,
appears quite definitely

areas

due for

:—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

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."

•

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

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.

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

♦

and

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

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,

"Ward's

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

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

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, ~
.

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

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

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; line with hfiodetn taste

drier,

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

stockholders

pause

recent

equity

and

com-;

which
only a
u i tous

net

By elim¬

year.

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

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

Refining is a popular process m
America. We refine sugar, petrole¬
um

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)

March

new

car

•

pushed the month's daily selling rate of 20,500
February, holding the March buildup in new car
mere

4%.

marked the first time that; more than
sales were recorded since last June; it

units 4.9% Y
inventories
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

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
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last year, for a loss of
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/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

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

•

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

most

ocratic

Moving

ties

sufficiently
Clear.'. The
President is

visions

these

statements.

merely

.lows

pre¬

sent the facts.;
We advo¬

Wilfred

May-

and extravagant
point of sheer folly.
7.7

...

currency

preserved

all

♦

speeches

stated

years

mywithout

kind

in the platform, and
announced. piy unqualj-

f
tion

platform. -

•.._7-";,

"The

try;

businessmen, of the

have

and

the
have

we:

•

what

United

f7 '
.

coun-;

•'

curities,

announced

Moffat

with

the

Gov-:

Federal

has

firm

Agency se4
that; Donald

become

associated,

Vice-President

spending

that

obstructs

the

does

not

stick

States

and

peace?
one

charge- of the Chicago office,231; South; Lay Salle Street; Mr/

thrift

Moffat

conclusion

was

formerly

C. F. Childs & Co.

officer of

ii '•

Sign Documents Covering Offering of
European Coal and Steel Community

("*»

771

-j

'advance-

statement

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

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

—
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

knovvn»4 .7 ;
s

^ that, misrepresent a-.
.

Lanston &

-t

run over a
cannot push

you

deficit

upon

qualification

£ie4,

;

The implications of such con*'
tinuing andbi-partisan contrast

in the long

Enghsh; three times

CHICAGO,

«0ur form of government means

^+hVr.<J
hie1SKii
nstated
+"5 jVthat
Jh
g, has
been

plain

reasonable explanation than
yet had, appears

reckless

"sound

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

hti.cal opponent,, he also very
sibly observed, "It is far too

—

nose

of rubber dol¬

substitute for

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-'

<■

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

dubious

United

the

yes

covenant

these

securities

the

President

States claims

„r

Let

deficits.

was

toll

the

it was/'1
'•

have

worth of service for every tax
dollar. We will reduce the double

em-

courage

are

the

some

unequivocal

explicit

statements

the

anxious

era.
us

citizenry

candidate

keep

n0w

credit

being

his

country's

committed

by him-

will

strong.

few

and

pay,

make

billions

$71

billionl

his

tions, not

any

careful

predelicmaneuvering by his

own

brain-trusting; recruiting

of^

officer

Mo?uy'

many

eluding the lowest,
ten

the

individual

ma<te

the

ooint

this

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

the

April

High

Vice-President of The First Boston Corporation; and Andre
Meyer,

partner of Lazard Freres & Co.

Sale of Motor-Vessel

The ' ITALIA"
i'>-'■

zione,
.

simply by
comfort, or

9 9

•

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-

incentive—

nation

lnternational

many

incentive

rtreat

levels, in-

Americans, but certainly in
instances and

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

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

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,

international

;

/tender, the m/v "LEME,,? gross tonnage ;7.

7-77

8,038.97, net tonnage 4,902.87, in accordance
with

the

terms

ancL conditions

specified i

•

;//•

From;
the

speech by

Academy .of

F. £>. Roosevelt;
Music,.

;

'
/

71'4 P»t)er«on/;N.

"
.

Oct. 16/19521 /

K-^4
2

the invitation to file purchase tender 'dated; 7t

v-r. •

;

April 3, F957C 77/VV^t

* ■-

niBM

.'.'•Jtv/'o

•.

assI

SSj

irr=t=^'

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?

»■;

'V:&£

Primary Market Maintained

7 7 Offers should be

\\
-p.fr.W-'

.the

>"/:/•
t:

PYRAMID
;•

Sets of "CHRONICLES '

VT>I 4-73.30

'-VV

follows:

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

April

should be addressed

Available in New York City—Write

55 William

Applications for copies for the invitation

;

7 v \

nTAkWT

MEADE & COMPANY

A ;Number of Beautiful ./;•

Annual Bound
REPORT AVAILABLE

filed with 7 /

Company within 12 o'clock /./;./ 7 ' v.

Edwin L.. Beck^ 7

;

/c/o Chronicle. 25 Park Pi. X. Y. 7

*■

>.yj'

•

CABLE: ITALMAR—Geooa

•

*7'

;*7'7f

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

University of Pennsylvania

inflation

f I

t i

mil¬

lowed

ities.

fol¬

usually
itary

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¬

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

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

are

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

TRADING MARKETS

FLORIDA

Industrials

Invest in

\Si Florida's

Golden

TRADING

Triangle

DEPARTMENT

TELETYPE

MM51

indus¬

strong

financial

D. LAURENCE
company

INVtSTMWT SKUKITIIS

at is,

201 S.E. 1st Ave. Miami, Fla.

|Phone: Miami, FRanklin 3-7716

in my

cash

excessive

zation

■!

common

example.

Third,

five

".aefaults

every

industry

because

heavy investments in plant and
equipment is potentially liable to
over-expansion.
'
Fourth,
static

over

expansion

declining industries is
almost fatal, to the cre¬

serious,

investment

ation

street

railways, leather, cotton and
textiles, railroad freight

values:

e.g.,

woolen
cars.

pass

favor

the

for

tween

dividend

$1.20

year-end.

and

,110^

d^,C$

intend

steps

wbo

the/British

their

the foot

and

exercise

this

might

before'the

have

there

growth in

been

moving that

and

way

is still the glaring

fact that

sales, earnings, and dividends/ On

has been given $200,000,000 to pass

this

out

.there is

-growth.

decline in the

ratios

Over-expan¬

can

basis,

the

shares,

growing industry.leads available around 22^2, in

sion
a

expansion

the

price-earnings

common

stocks

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

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

■

;

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

Administration

East.

the

But

ACCOUNTS

CAPITAL

Suryl'is

■-

335,628.79
retirement
preferred,

(and

account,

for

.capital)

$3,697,919.79

ACCOUNTS

put on a business-like basis, may-

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

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

knowledge and belief.

BAILEY

" c

Correct—Attest.:

Frank
.

to the best of

is- true

the

-..

"
- 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

Con-

aid, but it means that at

rate of he-

$1.40

Over the

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

essential.

this

standing
Other

our

economic
jas^

disbursed last year.

inclined

have

Sress' appropriation for this year's

should

and

445,967.81
to

liability

Should my earnings forecast come

directors

$189,090.89

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,

pos

opinion,

made'by

this district, pursuan t

Loans and discounts

Customers'

com^e* bade unde^the econom.c^K

The

call

Reserve bank "of

J.' tares

new

easily possible.

close of
published "lii

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

with

the

member

System,

„

March

accordance
oral

Y..

Reserve

baslnes.s e>!

March

appears

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,

Company
of

concentrate

SECURITIES

normal weather.

shaies

Difficulties are
present, and it would

reasonable

CONDITION

na-

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

three-year

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

not

mis¬

now/ confronts

that

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

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.

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

; 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

Security
.

of current

excess

•/■>'?*'

and

his* attitude

but

situation

months

mer

these

under

takes

hark

Carlisle Bargeron

members

mail

—

——

I Like Best

over-expanded,

have

and

been

un-

year,

Industries

simultaneous

the

The

conditions

theless

But

ings.

goods.

Wars

session of Congress.

at this

that, he is neither.

are

opposed

World

resuit

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

taken

r—

program

and

j 1

of his views,

our entering
'II, not with-;
standing lie served in the former
but/we got into the wars never¬

Thus, investment policies and investment., philosophy
must
take

expan¬

sion in plant

allowances

come

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

industries,

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

He'
contemptuously
isolationist and reactionary

because

Secre-

Now

this uncertain world.

rapid

lot of

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

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

terms

These new in¬

of these inflationary factors,

inducing

depression

omy.

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¬

ness

Julius GrodinsKy

the

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

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.

of the News

By CARLISLE BARGERON

over-expanded

Seventh

Professor in discussing effect of t

inflationary problems investors

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.

B"ebe

F. Rinkead

John

Everts

]
/Directors
y~

-J

Volume 185 ...Number 5628

The Commercial and Financial Chronicles

...

(1695)

Lf"

i'-'f'-t

ri."

•-

*
■'

s 7

I"*"

(JACKSONVILLE, FLORIDA)

Expressway Revenue Bonds, Series

1957
X,

Dated
'

January 1, 1957
:-v-vV-/\ x. -*-'XJ

Principal of

t-v'

' V
*-•» •*

*■

-■

and

' Due each July 1,

■;

semi-annual

shown below

•

■

...

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.

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

after

for such

interest

the date fixed for

redemption:

;

Redemption Price %
For

Period

■<

July 1, I960
v_

.;/...

July 1,1964 "

July 1,1967 "

Jwiy 1,1970 ">• M

July 1; 1973

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

103' '

100l/2
1.00

■

........

June 30,1982
;.

1..,;v...-.

'.'•••■

T02l/2
102

100

'iif-

1980

Interest Exempt, in the .opinion of Bond Counsel, from all

•

Bond

Redemption

July 1, 1982 and thereafter'

•■••*.

and including June 30,1964

.■

101-

lOO/""

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

The Barnett National Bank

-.-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

200,000

Coupon Rate X

1961;

$100,000

' ""
X*Amount

•'

Due

...

V""'

/ v; •"
T'

>1--' SCoupon

1963

3%
33/4
33/4
33/4
33/4 '

3.40;

■

;

1968
•

600,000

1970

3.30

M969

500,000

;

3.20%

33/4,

»1967v

400,000

Yield

-3 %%

1966

400,000

1962

1965

;

3oo;ooo=

Price

Rate

;•

way

Price

1971

700,000
:

-1972

800,000

90%

3.90

opinion of Bond Counsel, the Bonds

are a

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

; ioo
4

4 >>-SV

1977

100

;

991/2%

(Accrued interest

all

legal proceedings

behalf of the Authority. It is expected that Bonds in definior about May 1, 1957.

the form will be available for delivery on

be added)

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 /

,
-

power

These Bonds

yield approximately 4.28%

taxing

of any

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%

3.50

and Gasoline Tax Funds

100

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'?

■

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

'V''"'
'

...

*.w.,...

Blyth & Co., Inc.

Smith, Barney & Co.
.»

; i

•

•••-'.•

Pierce, Carrison, Wulbern, Inc.

■.

•.

••

Harriman

The First Boston Corporation •*Halsey, Stuart & Co/Inc.

,
.

Merrill

;

Lynch, Pierce, Fenner & Beane

„

Salomon Bros. & Hutzler

Leedy, Wheeler & Alleman

Phelps, Fenn & Co.

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

•

Hemphill, Noyes & Co.

R. S. Dickson & Company

Incorporated

Weeden & Co.
Incorporated

Equitable Securities Corporation v

Estabrook & Co.

L. F. Rothschild&. Co.F. S, Smithe^s & Co.
April T<), 1957

Reynolds & Co.

...

•:

Lehman Brothers

Kidder, Peabody & Co.

Alex. Brown & Sons

■.

Hornblower & Weeks

Ripley & Co.

Incorporated

■

Drexel & Co.

Dean Witter & Co.
W. H. Morton & Co.
Incorporated

Wood, Struthers & Co.

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

;Atttoic
■>

Review—Survey—Harris, TJpham & Co., 120

Energy

Broadway, New York 5, N. Y.

Atomic Letter

(No. 25)—Comments

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

•

Minerals

and

Oils—Introductory

Via Rights

—

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.,

Ill

Broadway,

—

investment

Current information

Clevite

National

program—E.

—

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

success

advertising

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

America

~ :

•

Analysis — Scherck
Richter Company, 320 North Fourth
Street, St. Louis 2, Mo. '
—

father

buggy

„

Company—Analysis—Kidder. Peabody &

small

very

and

away," to get

corn,

having perfect attendance for the
entire school

for

Those

aunt.

the days
when
no
were

Christmas

was

complete

un¬

less

orange

the

toe

been

hung by the
fireside

For

Investment

and

Yield

fore

bed

m a s

Approx. Yield

rem em

later

Cary Chemical 6/76_

Dunham-Bush 6/77 WW........

8.50%

winters

Roier W. Babsoo

ber
one

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..

York

first

6.75%

has

Tmmkjr -FUct, he* York 6, N. Y.

„

-v

great

giving their products.

luvestment

Field

(Dallas, Tex.)

April 21-23, 1957
Texas

of
Investment
Association—annual

Group

-Bankers

meeting

Hilton

Statler

the

Hotel.

April 26, 1957 (New York City )

Florida

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

minutes

serving. This has caused

/ -

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.

May 8-11, 1957 (White
Springs. Va.) - • .**.

con¬

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-

.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

"whole

This

taste

before

Hew

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

ChristEve.

velopments in the industry.

be¬

going

first

and

use

wake

Uncle
find a

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

entire—State

produced

surplus

year.

1909.the

tinuing

found

Florida

their

the

Henry Ford and the
advertising which
the
humble citrus growers of Florida

his

Salem,

with

dustry." Agriculture needs

driving
orange

national

wheat, cotton and other products.

our

south

crying
shoulders they

leader

same

re¬

crops.

cotton,
and
otheT
Henry Ford once said

' and

products

boy

sick

very

comparison
>.

of farm¬

group

and

"When

me:

great

sis

thing

Sam's

hailed by

accomplish without subsidies

can

surplus

products?

financial analyst Babson to illustrate what cooperative action,
research and

in-'*

corn,", wheat,

citrus

thei/?

citrus

central /west

By ROGER W, BABSON

Florida

which'%

Florida

Why cannot the farmers of

I A Lesson for Snrplns Crops
The

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. ;«
#

to show what

ers

loans

chemicals",
from

however, am not telling this
ty about the citrus industry/
/ just to boom Florida. I am telling

pany,

-i

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¬

—

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.

Tank

Old Line Life Insurance Company of
ford & Company, Russ

Midland, Northern States Power and Petroleum Corporation
America

New

Company, 61 Broadway, New York 6, N. Y.

Priced Stocks—Survey with

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->*-..

;

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,

Marmon Herrington

Hickman, Inc.,

1957—Brochure

Japanese Stocks
Low

^
:.

only market for citrusf/,
jliicesi. Foreign governments are /1

Miles Laboratories,

Monthly bulletin—Ira
York 6, N. Y.
Investors

jWest .Front

Xi'■ in:--;'r,

and citrus..

constantly/ improved

increase.

America—Analysis—Robert H.
& Co., 210 West Seventh Street, Los Angeles 14, Calif.

Huff

stocks.

Investment

iVz

'"/■

Company

this

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

*//,"•/•""

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

production is decreasing. /

Douglas & Lomason—Report—Dept. CH4-11, General Investing

—

Canada's Treasure

valuable

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'- "• •
'/•

result, the housewife,
10 minutes longer!
taking like wild fire.
-

In bed

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. ,:

•/

Florida and the United States,
yet there is competition between "
Florida, Texas, Arizona and espe¬

Gas

•

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.

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

encompasses

cooling alone. Air

conditioning is the cleansing and
is

the

control of

hu¬

ing.
In

the

jority

ma¬

our

markets

air

conditioning is
accepted

a
a

luxury

nor

"frill,"

but

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

are

air

than 50%

hospitals

per¬

the

country

have at least partial air condition¬

lion; heating equipment adaptable
to air conditioning, $638 million
and all other, $575 million.

ing.
I

think

safe

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

square

non-air-conditioned building

operated at

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

hence? All of

time would prefer to

patronize

taurant

theater. Tomorrow your

air-conditioned

conditioned.
to

Class

(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

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

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

prod¬

have

formulated

rule

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

construction

Business

ne¬

cessity. Not
Wampler

the

and

than 1%

of all theaters, 35% of all
motels,
27%. of class A commercial office

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

operate in

replacement.

later.

as an

economic

markets—theaters

tioned. We

air; it is ventilation
and

Cloud

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

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

greater than

was

that spent on room air condition¬

WAMPLER *

everywhere,

two dec¬

the lower reaches

of its growth curve.

conditioning

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

these

markets

influ¬

the others in the sense that

person

who

works

Continued

air

page

in¬

key

gredient for profit. In market af¬
ter market, the question
today is
not

whether

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¬

Prior to World

nomenon.

War

industry had proved its

nomic

worth

establishments

tioning

those

where

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

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.

the

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

illus¬

concrete terms with

sales volume figures. In 1936

industry
of

worth

prices.
the

products

same

sold

1956

basis

$48 million
at consumer

annual sales
had

increased

$3.2 billion—including

1959

2.10

I960

2.15

2.20

the Laws of the United States.

1961

2.20

2.25

1962

2.25

2.30

•

1963

;

2.30

2.35

Housing Administration,

unconditionally

agrees

ment

Federal
not

sufficient to

sums

of principal and interest

of the United States is

contribute, in

forty annual installments,

Housing

solemnly pledged

Administration

United States

under

agency,

more
assure

than
pay¬

these Bonds. The faith

the

Housing Act of 1937,

are

appearance

2.35

2.40

2.45

1966

2.50

2.40

1967

2.45

1968

2.45

1969-70

2.50

.■

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

the

amended.

offered, subject to prior sate before

of this advertisement, for delivery when,

and if issued and received by us

1964

1965

the payment

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¬

pave

2V%%
2.00%

Legal Investment for Commercial Banks, Savings Banks

immeas¬

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

the

Industrial and

use

that

establishments

ginning to
tioning as

amended

being laid

designed

now

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

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

2.95
100 (price)
100 (pri«(
''

approval of legality by recognit^I bond counsel,
Callable ten years from issue date and thereafter, as
stated in the Offering Circular

heating- in¬

stallations allied to air condition¬

ing—a 6,000% increase during: the
two decades.
You

may

interested in

the

types of products included in those
1956 industry retail sales figures.
Here they are:

Apolied

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

•

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

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

trueAugust Ihlefeld'

institu-

ized

don

autual savings bank, which does

?ictivities

<;hould fail to

fore

There

things

two

are

Uank.managements

economy

stable. The only al-

finance it with
bank credit.
But a

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

are

out of savings,

mainly

nanced

fi-

must

investment

New

providing
savings account service, they cannot count upon other activities to
leadership

«ion

l*uard the position of their institutions in our dynamic economy.

sweiiing the money sup-

ply, and because subsequent pres¬

First, they can study economic
financial changes, especially

sure

nnd

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

£ace

J® Less0.ln 1f?,Irfa
L
2lan
Since 1946, such mstitutional savings have increased

like to discuss

economic

eould profoundly

savings
I

some

trends

suggest

140%

that

affect the future
savings

and

shall

wanted

not

hold

expenditures

consumption

down

a"d so lift their savings to a level

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

have

people

fact

inevitable

result

has

acute shortage of savings

Mutual

April

Y.,

Savings

Banks,

Albany,

that could well continue, although
time due. to fluctuations that are
inevitable in

1957.

;

Yet, it

was

evident at

thet ime that the nation's banking

The

this

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

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

aggressively.
But
an acute shortage of loan-

now,

exists

funds

able

Returns
To pay

•

...

50,000 Shares

Low

commercial

adequate rates,"of return

wh*c

high

for

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

savings deposits to a maximum of
3%.

Commercial
the

out

country

the rate paid on

through-

banks

have stepped

savings accounts,

to the new maximum of 3%.

some

1956/ commercial- banks- ac-

counted for

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.,

Many

launching an effort
leading place-for

Some

drive

that the current
savings deposits among

commercial banks will not be sus-

They

reason

that these in-

will become

savings

indifferent

accounts

again-

once

The

•.•

suggest

for

try

Rate

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

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

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

policy.

savings

lending.

to leave

Incorporated

improve earn-

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,-

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

this

trend should cause any

cern.

con

Savings

Bank

realistic

mutual savings
time

must

Dividend

dividend

take

Policy

policy fo

banks at any on
into

account

only the surplus position of thes
institutions but also the competi
tive

situation

which

confront

them.

specialize in plus.

credit. " Finally,

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

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¬

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

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

risk assets.

•

banks- had

well

for

ture of management

bank- capital

ment /-

(SI Par Value)

the
>'
adequacy of

the

result,

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

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

adequate in the period of intensified rivalry for savings- that we

aggressive

stitutions

MEW

among

the, higher

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

larger;

The

that would help mutual

about

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

formulate"

can

programs that will
institutions to con-

and
their

enable

The

policies

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¬

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

banks

for the industry»

Surplus Ratios

was

billion in 1956.

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¬

im¬

very

needs.
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

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

t ion

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

lies ahead.

only

^iconomy

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

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.

the keen

position.

dynamic economy
continuous and

that

turn

surplus

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

savings that are available.
—
The shortage of savings has al-

AUGUST IHLEFELD*

fj;

savings ate n0^ *he largest factor in
f o r tne sumer lending. In the same

shortage

competition

intensifies

sively, with the result that they-,

Savings Banking

chronic

If substantial annual addi-

tions to surplus accounts are to be
made,, .ability to liberalize divi-

payments will
spondingly limited.

dend

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

ration income tax

mutual

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

tive

liberal

set

dividend

whenever

considerations

rates

competi¬

would

make

this desirable.

promote

stitutions

utilize

their

economy gives
competition for
Commercial
banks, in

intense

particular,

con¬

upon

are

now

determined

embarked

effort

at¬

tract more

savings deposits be¬
They believe they can lend
invest such deposits at
substantial profit to themselves.
cause

out

full

and

extent modern methods of adver¬

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

///

Savings banks have the capacity
■

maintain

attractive

At times it

field

thrift

conserved

rates

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

This

is the

LOUIS,

Smith
have

their
new

for

merchandising policies. But
techniques and new media

reaching the public

are

being

The

ward

New

Mo.

rarely

NFW f««TTS

Street,

York

upon very

would

Exchanges.;
conducted

business

Mr.

Smith

his
in

Mclntyre
Reed, Inc.

Marshall,

was

not

are

earnings.

banks

tends

slowly in

yet

with

:u.

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

Whitteniore
&

Ore.
with

■

5V2% Secured Bonds (Seventh Series)

Due April 1, 1973

OFFERING PRICE

100% AND ACCRUED INTEREST

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

accounts in

reserve

Serial Secured Notes (Eighth Series)

sur¬

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

can

liberalized

earnings. So long

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

per annum;

that

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¬

banks

(on

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

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

by a
savings and

competition

ings

deposits

attract

important, experience,
demonstrated, is the conven¬

ience

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.

savings
As

Kuhn, Loeb & Co.
&

Co.i Inc.

The First Boston Corporation

Eastman Dillon, Union Securities & Co.

Glore, Forgan & Co.

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

banks
serve1

they

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

which

now

Smith, Barney & Co.

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

Joins Dean Witter
PORTLAND,

<?•

reflected

Investment

Mclntyre

justifiable

vestments

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

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
'

' 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

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.

available and

venient to the public and to
adapt
to the sale of
savings bank service
aggressive merchandising methods

banks

tribution.

expanding

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

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.
;

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

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

to carry out such a
program.

•

popular¬

izing savings service in
economy/

the

Witter

The Commercial and Financial Chronicle

data

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

B.u-1

by the? American

of Metals Statistics and pop¬

ulation

figures

sumption

consumption in the underdeveloped areas. (1) We can make

projections of recent trends.
We

can

estimates

make

price inflation would need

added to this. Some copper now
can probably be produced
at 12c

low. This

very

will

mean

pressure

metal
sources,

SSI®!

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

in which met-

now

plane of living in these areas and
these estimate metal con¬

from

Great

increases

than 10

same

20 years ago. The

true

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

some¬

cieaver

income.

But

in abso¬

rate

high

it did in. Japan!

from the

late 19th century to the.
1920's and the 1930's. But there is;

considerable

evidence

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

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.

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

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. - •
„

—

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

the

for each

—

(2)

consump-

the

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

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

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

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

reau

Materials Relatively

Raw

statistics

based mainly on

are

published

Nations Yearbook.)

Backward and Developed Areas

(1700)

—

But there

are

differences

Let
dence

metal

ly.

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

increasb 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

data needed

in order to arrive

certain

investigation is largely
successive

feel

There is

Two

with
is

define

great

definitions

comhion—one

history

speculating.

need that

"consumption"
cisioh.

speculations

hesitancy

Successful

answers.

the

pre-

are

most

amount

Japan

Africa

metal' actually

used bfr the final
in things he uses plus
machinery and equip-

consumer

metal

ment used up by industry.
the metal

often

.25

Asia, except Japan 11
Europe
World

I_II

II.II

J)4

1 8:5*"
3.2

But in

industries consumption

thought of

These would need to be modifle? considerably m order to show

the metal
foundries in me-

much

metal

the

cost

labor

cost

secondary is to convince

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

;

Germany. (Allowances for imports

Some Conclusions

A 'number

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

mined—in fact there

about

which

.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

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

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

the

standard

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

from

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

But by

how much?

possible China

can

re¬

sist the demands of its people for
an

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

import and export ideas. But
now more than ever attempts are

made
of

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

(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

done

other countries.

slacken

Cold War

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¬

The

Marshall

successors

Plan

all

were

its

and

aimed

this

direction.
The U. S. International
Cooper¬
ation Administration is
bringing
to the U.

groups

ment,

from

officials

methods

study

and

cerning

instruction
trouble

it had to

Fifty

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

groups

know they were often made
ale# and aggressive people
gave

market

others

liv¬

iron

were

justified.

As
the

and J disappear

closer than

may

first

With

think.

understand

only

trade

metal

pay

or
we

countries

large free

organization for

European

The

car.

are

metal

and

the long

April

K-

.;
v-'c

increase

May, to act

whole progress

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

will be located

the

Principals

Graham

of-the
firm

new

ers

these

half times.
What

very

low

wages-

workers

wage

are

probably benefitted else they
do

would

pay

some

what

other

them
is

true

also, true for
If

sources.

higher

for

owners

someone

wage.

workers

of other
in

be foolish

not

ANA, Calif.—James J.
has formed the Wright

i i

Company with offices

North Boardway to engage
business.;
'u
v.il

securities

•

...v;

Form Inv. Co.

;.J

(Special to The Financial Chronicle)

PASADENA,

Calif. — Investors
Investment Corporation has beep

ff-ci

Marengo

Form Capitol

offices

Avenue

business.

Robert

Underwriting

securities

and B.

North

engage

arb

Officers

Peckham, President,

L. Peckham, Treasurer.

•

Joins Nance Investment

(Special to The Financial Chronicle)

accept them.

DENVER, Colo.

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

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-

contribut¬

across

Edwards,

Investment

bonds of those

the

steel

SANTA

Wright

States. Offices

Bankers Bond

and

,Fojrms Wright hiv Co.

r^-

municipal

even

iron

Shertnan
the group,

14 southern

will

the

and

question

The. meeting. wilL be .held at
the Brooklyn Woman's
Club, 114
Pierrepont Street. 1 Mrs. LeRoy

Thomas Graham, President of

inportant factors

1929

them

for

to international trade is one of the
most

and

•«.

Thomas

Between
Time."

Market

Reflection of the

wholesaler

is be¬

Stock
a

•-

;;of securities of

re-

Lynch,

period will follow.

answer

firm,, will, be
forpied
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

■:.»■

.<■

trend

"The

William

—

Pierce,
Beane, will, address the
meeting of the Urban

Investment As

Bankers Southern Inc.

Merrill

Club

European
consumption.
>

world metal

Th§

•

•:,'■

*,i.

run.

skilled

less

the way. * As they ar¬
consumption will rise

rapidly.

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

Address Urban Club
BROOKLYN, N. Y,

fully the

decided

William Hewitt to

be tempted to sell the metals

may

Economic Cooperation is attempt¬
ing to reduce and eliminate'the

the

coun¬

which it has advantages?
In closing let me point
out, you

Kentucky,

The U. S. is

extensive

each

area.

The

along

will permit

try to produce those products for

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

willingness

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

who

the

this

countries

many

Europe
assume

situation in Europe. If metal from
Ohio plants could be exported to

long way off but' in

actually
each

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

getting it.

..f

country wanting such
usually
had
much

creation,

industrial

our

way

govern¬

labor

other

our

years ago

for

from

industry and

izations

countries

many

coun¬

many

high
import duties to get enough fluor¬

high import duties.

spar

differences

were

plants

free.

imagined

countries

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

The -social

(3;

tries the
t

but

these

The diffusion

countries

some

others it will not.

derwriting
with

offices

Building to
business.

has

Co.

Capitol Un¬

—

been

the

University

engage

Officers

formed

are

securities
Arthur

(Special,to The Financial Chronicle).

LOS

ANGELES,

Bartelme,

Jr.

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—

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
"

, ■

.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

areas

also

likes

some; control

JIT

maintain

•

-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

rest

the

vious—and

population

sometimes

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

;

country

industries—attempts

many

kinds

>' r

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*

make

dependent

sity—have

sult.

industrial

Attempts

few

heavy

Subscription Price $35

governments

the

less

ma¬

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¬

-•

•••

This
an

has not
necessarily led to
increase in the standard of liv¬

ing

even

national

increase

income.

total

Undoubtedly it

•.

has often diverted labor and other
resources from industries in which

the country had

tage
had

into

industries

natural

[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.

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

which

the

case.

fell,

often

un¬

may

not

income

rose

activity

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

cases

use

this

national

this

lead

the

resources

Whether
or

decrease

In those

it results in

employed
be

net

national income.

...

WHITE, WELD & CO.

STONE & WEBSTER SECURITIES CORPORA TION
;;

April 0, If/M. ■ ■'
>'■

•

■

•f

•

t ^

/•
>:

"> i

•

111

■vo

The Commercial and Financial

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

goal

that

but

ment credit

plays

tion. The space

mass

duction

and

filled

tain

units

choose

pro¬

their

This

output

suburbs

must

ket

Mills,

A-

Jr.

processes

re¬

employment but

of living,

way

evolution

was^devel-- ductio£

gap

the markets

betwcen

pro-

.Consumptionand

and

condition general credit controls

of the a

vojunr)e

generates

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

the

im¬

prices that was closely related to -dispose of the fact that actions
the unsatisfied demand for auto-'iforestalf^exeessive^ economic

connected with

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

the

facilitating
to

urban

mass

mort¬

migration

suburban

duction, whose
then be trans-'

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

production depends.

credit

had
that

inflationary

for consumer

major part in

of fiscal

tional debt and
an

instal¬

expanding the markets on which

pro¬

effects

similar

War II, but because

World

little

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

•'

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

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

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

consumers,

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

.to

units

the

consumption.

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

na¬

Economic research

output.

teaches all too well that a lasting
imbalance in

either production or

consumption

seriously

credit,

attributed

benefits

greater

leisure.

If, indeed,

said

the

Board

the

Governors

Reserve

under¬

System

took at the direction of President

Eisenhower

Iowa Electric

stalment

ment credit controls has been

Federal

provide

his¬

torical and factual basis for deter¬

ciated with

asso¬

sive

reason

Com pan y

C'-. S-

national emergency.

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

these

Common Stock

•' 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

purely peacetime measure to "
inflationary
pressures

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

Credit

defined

cash

means

can

grant of the

the

for im¬

mediately acquiring and utilizing
desired

some

whose

goods

acquisition

services

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

debtor

clear possession of whatever

been

con¬

added

his pleasure and convenience from
the time of their acquisition.
are

good

consumer

grounds

the material

venience

and

that
adds

comfort

the

by doing

state
credit

instalment

and

American

There

con¬

tendencies;
a

durable goods; and (e) to restrain
the development
of a consumer
debt structure that
effective
services

contributes to

address

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

increase
of

ume

be found in

can

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

the

light

experience
consumer

World

War

with
controls
instalment credit,

ilar reasoning

reimposition

over

sim¬
properly led to their
the

occasion

the

undesirable
volume
credit

the

fluctuations

consumer

best be

can

peacetime

selective

the

instalment

prevented, and

emergency .use

credit

controls

by following fiscal and monetary
policies that do not foster an un¬

fect

due

Sept.

Act

18,

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-

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'

*
■

-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

-A

•

We have listened to

upon

of study by his organization.jAs

year

'c'"m

Board, ,at

-general

point.

liked.his

While

the

ballot

Fedeial Reserve Credit
Study—
:
No Case fot Selective Conhoh;

box.

jV essentially

credit

consumer

private

the

effect

are

matters,

Federal Government

.lih

By SIDNEY E. ROLFE*

Economist

individual. transactions

[involving,:

the

is interested

changes

the

decided impact upon

•-

;

bility.

; ;

sta-

•

From the standpoint of the
gov-

em-

•

Concludes that

theory, there is

The

exercises

consumer

the

for

System,

derstand,

report

-makes

on con-

sumer/instalrnent

credit.

have, not
time

than

thumb

through

the
pages of these

Grover W. Ensley

though

•,

riodically
study
,

was

the

volumes,
a 1briefed

staff

our

the

pe-

Federal

Reserve
•

address

by Dr. Ensley

Consumer Credit

1957!
and

before

the

Conference

for

not

the

necessarily
Joint

own

the

represent

Economic

Committee

individual members of that Committee,

or
•.

tors

monetarv

last .fall

vYott:-'make

not

king there., No such thing

that the consumer.is

credit

consumer
.

...

exists

and

from

apart

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

the

military,

rnnsumntinn

anri

in-

nicin^

ng consumPt.lon and raisin*

living levels of the people

than

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

out of his

,tne

t acts

determined by
Sidney Rolfe

^he

„

for

'An

V Mr. Mills (p. 10) has noted what

Out of

knowledge

associations,

iarge and dynamic part of the
whole credit structure need, how-

for

servations with

sharing his
today.

ob-

General Monetary Controls

Preferable

;

First, and foremost,

among Gov-

tional

series

address

Consumer

controls

Dr.

Rolfe

Credit

1957,

market."

the

preferable

.«•

engaged in the granting
0f consumer instalment credit
will
£in(j themselves heartily
endorsing
ernor

the

Conference

Na-

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.

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

cause

utmost importance to those in tbi
industry and to the nation gen

credit;;

study.

government,

the

'serve consum-

tegral part of the modern debt
structure.
They can scarcely be

ap-

can

sure

in-

underof

Federal

travel'corporate, and private debt and

.•■

Soviet Russia

m'•

very

opportunity to

are

"f viewed

had

j
..

n-easin?

TheVviews expressedrare hTs
do

views

the

|
'

progress

credit always

propriate. '

had-

discussion of the role of

consumer
•

was,

of the major direc-

one

the

consumer
....

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

the free market and at the ballot

no case

the economy

larger problem.
As the Joint Board
this' fundamental-1 prerogative-in*"Economic Committee over a
year

request of the

for selective-controls, short of a war
emergency"; finds the study confirms the effectives of
general

•

king."V.

,*r
{

V controls, and detects in the
study

the

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

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

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

•

tfc;

thought-Before I take

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-

ual
the

expressed by Gov-

Mills. They substantiate and
with greatest clarity and

express

the highest degree of

for

Denver, Colorado.

SOUlld

eco-

LontinUed

071

page A J

■'

•

7
.

■

•'

.?•••■'

-VT-

outstanding consumer credit con'..-'tain unstabilizing economic influ-

•

••..

.:-V.

V-.

The securities listed below
,

are

•

/•■•:.h

being offered

as a

by the undersigned.

;—;

.V'.

ences

New Issue

notes

elsewhere

times

consumer

credit

•

-V;

v
>

j'.yv".
;

1,200,759 Shares

sion

may

later

productive

;

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).

;

"Consumer

been

a; factor

level

of Canada, Limited

"has oflen

says,

changes

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

credit-cannot only overreach itself
by borrowing from the future,
but may also engender the expan-

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

economic fluctuations.

major

influence

credit

has

booms:

been
has

pvcrm'ating

add

factor

force
The

instalment

less

often

fuel

been

during

Price 102% and accrued interest

reces¬

sions."

"Certainly

VPrice $28,875

per

any

economy,

which

acterized

element

can

the

be thus char¬

"leading and ampli¬
fying force" adding "fuel to booms"
deserves the attention of all, in¬
cluding the Federal Government.

Copies of the- Prospectus may be. obtained from any of the several
underwriters, including the undersigned, only in States in -which

The

such underwriters

and

Federal Government, it will
remembered, is pledged, under
the Employment Act of 1946. to
use

all of its facilities and.

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

\
The First Huston

are

Corporation

.Morgan Stanley & Co.

Dillon, Read & Co. Inc.

preferred.

Kuhri, Foeb & Co,

Given the need for governmental

Corporation

concern,

* BOSTON

PITTSBURGH

CLEVELAND

our

attitude

CHICAGO

will
upon

SAN FRANCISCO

the

precise kind of regulation of
sumer

PHILADELPHIA

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

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

A. K. Auies & Cow
Incorporated

The Commercial and Financial Chronicle

(1704)

is about half

government and

half commercial.

WALLACE

Industrial stocks continued

STREETE

figured out to $1.97

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.

•

the

and

labored

bit

In any event,

Progress in some key areas
was

view."

"conservative

rise

the fall and
hopes forced trading

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

back in favor

distinctly

nation's

the

new

'•••

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

Rails Still Laggard
Rails

still mostly lag¬

were

one

earnings of $15 to

mates of

$20

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

generally

—

of the

names

issues

yield that
For

than the
•:

was

the

big

industry this is

yield of around 1%

Pgjjj»S

chemical
a

4 Vi.

around

THE

"norm."

"/Ay

1957 EDITION OF

and

com¬

any

miracle. The costs of

decline in the per-

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

arranged

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

and

Officers.

Names of Department Heads

Association

Memberships

(including

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

quality issue with

fabrikoid—^12'^

pattern

earnings

Corn

Products which is

there

HERBERT D. SEIBERT & CO., INC.

New

York

7, N. Y.

con¬

stantly adding to the already

long list of products it serves
to many industries. Some of
the

later

could

ones

im¬

portant in such diverse fields
as

brewing and foundry work,
well

pany

new

not

coincide

They

•

■

the

only

nental

line

that

transconti¬
never

went

far

exhaustive
made

has

been

consumer

Its

com¬

market

uneventful

In fact the issue held in¬
a

this

three-point

range

until its recent
upside breakout.
year

possibilities

being

KANSAS CITY, Mo.—John

several

joint ventures, in¬

Burlington & Quincy.

selected

staff

the

driven down
cer

scares,

from

all

the

Corp.,

•

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

school

Ad¬
were

pre¬
or¬

was

ganized in 1914. The three receiv¬
ing the awards were selected from
the many thousands of past grad¬
uates.";.
Mr.

Latshaw

dent

Kansas

life-long resi¬

City and

only present Missouri
receive
reads

John

citation

"Presented

follows:

for

Latshaw

ice in business and

serv¬

public admin¬

citation

This

outstanding

achievement and meritorious

istration.

the

was

resident to
His

award.

the

presented

University of Missouri

by the

indication

alumnus

who

its

pride

exemplifies

the

ideals and leadership so necessary
in the preservation
Society/'

Others

awards

the

Scott, President, The

Bureau

Corporation

wholly owned sub¬
of International Business

York,

sidiary

of American

receiving

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

sev¬

With Walston & Co.
{Special to The Financial Chronicle)

CHICAGO,

Co.,

Inc.,

Street. He

author

accounting, class of

Messick, Jr. is

Reduction

making.

1942

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

despite

filter demand.

dividend

icate

alumnus.

being made at leasF

sales

by various can¬ pany, head of Fred V. Gardner
also in the Associates, a management consult¬

American Tobacco

Air

re¬

distinguished

ant

Certif¬

ceive

are

high-yield bracket, ranging
up
to 1V2%. in Liggett &
Myers and around 6V£% in
progress

the

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

merger with Northern Pacific.
The two already participate

year
*

studies

■

By Univ. of Mo.

the

only.]

Award to Latshaw

has

presented

are

those of the author

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

nudging higher but

with

life

ENTER YOUR ORDER TODAY

Park

than

yield of around 5% and

have been

(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

btates

fer

was a

sive

long antipathy to the
that they now of¬

electronics

market

1,600

cloudy, there

preference in many
quarters for the more defen¬

Northern.

puters—that hasn't been

bit

marked

means

better
*

The

rails

$
❖
Sperry Rand is interesting <%7."
in; another growth group—i
Great Northern

that

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

Thursday, April 11, 1957

expected to be the
period for the year.

low

the top side. The
timber holdings

company's

quality issue.

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

with

—

Rene G.

Overton

Co., 1134 Orange Avenue.

Werner Baer
Werner

Baer

Bache

Co.

passed away April 7 at the age
49.

•

Voliime 185 ^Number 562ff.;. The Commercial and Financial Chronicle

*•

*(17W

-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

costs

prices and unit

indicates

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

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

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

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

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

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

marked extent. If

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

sidewise in light trading.
;m

Sentiment may have been

lm-

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.

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

for

the

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,

19S7.

James Kyle Adds
(Special to The Financial Chronicle)

SAN

DIEGO, Calif.

—

rpdlirf:nns.

arp

James

Kyle

Company,

whole

than for

1955, just

With A. R. Nowell
SAN FRANCISCO,

with

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,

With Stewart,
■

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

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

spending

1957 made public

survey

by the Federal

Reserve Board last month.

point

ume,

con-

These

members
stock

the

Exchange.

vtoosly' with-'

Pacific
He

Coast

was

pre-

Sdwto D. Berl

Goldman, Sachs & Co. IHalsey, Stuart & Co. Inc.

The First Boston Corporation

;

A. G. Becker & Co,

probably

not

spectacular volume, of consumer
purchases over the remainder of

Blyth & Co., Inc.

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

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

"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

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

steel

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

users (including automobile companies)
and that by and large

note

month.

is largely the result

inventory

years.

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

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-

•

Co.,

400
*

The Commercial and Financial Chronicle

Thursday, April 11, 1957

(1706)

SOUTHERN RAILWAY COMPANY
:

*77;777

Sixty-Third Annual Report for the ,Year Ended December 31, 1956

■•V

'■•"'f.'"

'r.r* f.' ■,-V

■'

;■.«

Tax accruals

1957.

March 27,

dollaf

•S

;

Stockholders of

To the

;■

share of Common Stock and thus

the

net

.-•

The

1954

loyal

acknowledged.
The

support

income

Southern

This

Net railway

represents

after

deduction

what
of

our

•■■7

1954.

ended

A. DEBUTTS,

HARRY

rents,

expressed

dollar

revenue,

all

its

Maintenance
Malnenance

bills and other

taxes,

Traffic

per

and equiya-j'7

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

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.

$240,961,999,

1956,

passenger

___

moved___._______

mile__„_

ton

per

——1

miles

____________

passenger

mile

ernment

served

acquiring

225 miles

15 billion

13 billion

1.570 cents

1.568 cents

1.609 cents

were

2,231,324

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.

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

control north of

charges, of

the

lessor company's

installation

Atlanta*

centralized

prop*

traffic

was

also

paid

February 15,^1956, an

share-out of the

$36,891,614, a deT

year.

Common Stock

were

and

after the

Common Stock: dividends

provision

1955

year,

Stocks

was

declared

net earnings of

its

industrial

program

develop¬

in the South.

progress

was

were

these

Atlanta,

made during the
made

the

Georgia,

year.

modernizing

and

accounting

the line running north

Gharges to the .capital account for roac|

1956,

share,

January 22, 1957, out of surplus

1956. This dividend was paid March 15,

1957, to stockholders of record February 15, 1957.

New.Equipment

received

Company

615—70-ton

hopper

and

•

60—53'e"

70-ton flat

15—65'6"

70-ton

hopper

cars

7 }

cars

gondola

cars

•

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

the Common

the

all

quarterly

service^—

•

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

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

serves

modern

substantial

roadway

paid

surplus net earnings of 1955.

dividends per share

Continuing improvements to the Company's plant are

which

1955 after providing for the 5% preferred

There

being made through

two and one-half for

September and December, all out of the surplus net

Total

Railway tax accruals for 1956

paid in March and June and dividends of 500 per
new

about

coal-burning steam

Gov¬

250

were

the *new $20*

Additional

dividend.

increase of 4.33%

•

each share of the

only

properties

cities in the territory

Dividends of $1,-00 per share on the old Common Stock

outlay

Capital Improvements

Payments

meeting in May 1956.

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

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

$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

large

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-,

•

additions

ment

ment in

$275,385,491,

were

Total

industries

new

when

The

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
:

years

7'.r:'■;

materials, textiles, paper, and chemicals.

1956

fixed

for

best

was

70.70%

and

The trend toward greater diversification in manufac¬

5.39

remained

the

warehouses;

existing plants.

70.70<f

1954,

standpoint of major deyeldpments, not only in new

distribution

^ 0^860

65.37d

turing continued with notable gains being made in the

3.58

Revenues

higher by $7,833,923,

2.01d

0.72d

37,993,249

passengers_'__——

as a

Totals

$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"

■■■'

and

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

1954;777777

with 65.37%

The- System gained

Revenues and Expenses

distance

•:

income

compared with

plants, but irr expansions of existing industries as well.

1956.

miles

crease

0.73d

1956,

1°54

16.58d

continues

federal

before

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

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

31.13d

;

Way

Totals

Cdmrnon Stock (computed

were:

♦Figures

Average

out

years:

1953

Ton

operating
compared

;

■—!—

1956—

cents

shown in this table with

are

Transportation

1953————____

Ton*

number

1956

Income

Net

1952

the

68.58%

amounted

Preferred Stock)

revenues

y':y.,77

REVIEW OF 1956

pfter provision of $3,000,000 each year as dividends on

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

The cost of transportation ratio for 1956

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

The ratios for 1956 of the several subdivisions of oper-

Richmond, Virginia, on May 21, 1957.

provided for

Operating

operating

';yy'■

stockholders at the

Net income for each of the past five years

left

was

all

7;'-'7'..;

Incidental Expenses

•■7

equipment and joint facility rents.

■■_

operating income for 1936 was $45,691,368.

This

General

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

Operations

stantial increase

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 %:•*.

gratefully

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

employees

our

...

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

particularly, the owners- of the Company
its future by supporting legislation intended to

^government officials and the public
sive

/>.V

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,

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

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)

SOUTHERN RAILWAY (Continued)
Deliveries

ment

strike.

substantial

In 1957 there have been

equipment estimated to
and

orders

additional

i*With, these

equip-

delayed until 1957 because of the 1956 steel

were

cost

will be delivered

approximately

/«.'*

■

;

(2)

For

payments

;

1050—50-ton 50'6" box

cars

200—70-ton steel hopper

,</;

103—50-ton auto

...v

parts

contained

.>?

cars

(and

cars

■

new

v to

»'

and

of $49,000

cost

pany's

treasury.-

1954.

delivery.

,-r

';;v

its

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.

outstanding

$75,513,255

end

1955

new

and

the

end

the

effect

$75,489,165

$10,011,955.

cash

bonds

approximately $12,443,278.

;

$12,087,400

and

through

advances

$7,706,500 for

'■

held

■■■■'

■

(less charges

subsidiary

the., annual

owned

rate

laid

all-time

31,

end' of

high

1956, "as

1955.-

for

the

approximately

was

tion

than 40%

totals

Company's

$18,000,000

for

five

1956

1954.

171.48

miles, of

33,627 net tons,

''V"'; ■"*

:•'/

■-

•: /

gross revenues,

The Company has ordered 34,160 net tons of

rail for the year

1957.

.■

•

public

debt

such

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

plan

whereunder

reorganization

that

Florida

when

company,

owned

bondholders.

St.- Joe
.

Paper

Debt,

Obligations,

lines,

Equipment

Fund

payments

1956,

end

for

Railroad Company

stock

the

piesent
proved
offer

filed

with the

reorganized
Joe

Florida

provided

approximately

plan

depending

the

$22,700,000,

GENERAL

INTEREST

referred

The

Commerce

East

Coast

event

the

subject

Railway

above.

Commission

Should

this

near

Interstate

railroads

majority of the

the number of shares acquired.

decision is expected in the

leased
Sinking
1957

compared

STOCKHOLDERS

1956

The

Commerce

In -addition

certain

effective

joint

December

intra-territorial
effective

No final

The

future.

maxima,

also

28,

freight

effective

authorized

inter-territorial freight rates,

ap¬

granted

March

increase

th<^

rates

6%,
1D56.

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

ing substantial items during the
cash:

its

current

authorized

were

„;

provided

for

mortgage

maturity

amount

and

the

year

from its treasury

total

Non-Operating

request

wage

disposed

was

100 per hour for Road Firemen and

1, 1956,

Hostler

and

additional in¬

November. 1, 1957, and

hour

per

cost-of-living

agreement providing

effective November

adjustment

six

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¬

wage

November

•

increases

1956/ to

during

the

November

1959.
.

■Benefits obtained by the employees under these settle¬
ments

1956

increased

the

increase

wage

cost -of

demands

approximately

will

$4,500,000

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

increase in the

Consumer Price Index.

the

Train

of the

still pending

year,

requests

were

for Engineers, Conductors, Trainmen,

Dispatchers, Yardmasters and Train Porters.

the

maturity

$32,803,000

bonds.

It provided
of

Tennessee,

Virginia.and

was

15%

held

re¬

been

Interstate
in

railway

January,

announced.

trailers

way

over

thorough

the railroad indus-'

the rail lines.

analysis

the

The Company has made

various

actual operations so far undertaken.

tinues

time,

and

further studies

it has

will

proposals

made

would

operation

over

represent

in Southern territory

Commerce

mail

1957,

Commission

but

The

rates.

pay

the request.

and

lines

this

Georgia

increased

increase
-

The

rates

has

yet

recent

charges,

effective

became

increase of

15%.

certain

March 20,

effective

Railway Express Agency

additional

with

' '

1956.

now

been

steady increase

the number of

for some years and a

area

revealed

that

part-time farmers

real

are

two

out

three :of

located in the South.

significance for the future

our

the»

This

territory;

experience has shown that the part-time farmer makes

exceptions,

December

has

study

nation's
has

and

Post

A hearing

decision

There

small farms in the Southern's

Express Rates

Express

of the

any

economical

Company's

the

con¬

time

from

that

of:

and

While interest

not yet been determined

proposals

profitable

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

of 70 per hour effective

various

increase

effective May 15, 1956/ and an additional 5%,»

Office Department is opposing
It

Car

expenses^

(1)

con¬

other

any

; J)

Dining

;

taxes and fixed
payments, the Company paid the follow¬

•

are

equiv¬

three-year

hour for Yard-Firemen, Hostlers

Movement of

Commission

increase

general

Commission

f
•

the

Department

increase of

crease

Fares

effective February 20, 1957.
Use

Mechanical

Firemen's

per

THE

precludes

the national settlement with the

year.

year

during

requests

wage

and

further

Line

than $12,500,000 and not less than
$8,400,000,.

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

160

for

maturities

$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

interest,

Obligation
be

with

employees

$125,-

$75,513,255

and

compared

at- the

In addition to

„

August, 1956, the Company and Seaboard Air

Commission

basis

East

and

2^20

moratorium

1930.

amounted

1955,

31,

Rates and
,

equivalent

were

;

per

further

contract

compared with $166,995,500

accruals

and

31,
as

December

obligations

amounted

reorganized,

Company

charges

1958, and

with $23,166,778 for the year 1956.

would
other

such

Payments

March, 1956, the Company and Seaboard

Fixed

December

1, 1957, and

1958,

the.Company outstanding in the hands of

increase of 100

dependents

Helpers, effective November

■

tains

for

gross

compared, with 4.26% in

of gross revenue in

926,500 of Funded

Equipment
Florida East Coast

in 1954.

15%

The debt of

the

new

than

negotiation

alent

The

averaged

requests

wage

three-year

175.55

146.12 miles,

new

1956

national

through national negotiation by

$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.

•

Employees'

provided health and welfare coverage at

fixed

1930,

approximately $306,-

Index, beginning May 1, 1957.

wage

Waiters

exclude

net

Price

The

subsidiary.

Train

;

with

compared

These

charges but the reduced amount is payable out of

disposed

general

which

and

cost-of-living adjustment at Six months intervals of

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

Department

hour effective November 1, 1956, an additional increase

the

the Com¬

and

the

000 per annum for the

the

i "

■

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

$19,876,600,

$11,810,000

The

expenses

were

$10,648,000

the ;

exclusive

came

were

1955

directly,

This will be offset

depreciation,

;

subsidiary, expended

were

charges

rapid amortization, chargeable to operating
the amount of

1955

Dispatchers,

increase of 70 per hour effective November
1,

Company

with :

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

compared

$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- *

and

•

pany),

Equipment

During

Foremen,

for

$10,969,205

Equipment Obligations^

$16,629,426;

Com-

Costing about $140,000,000, these

constitute

tern's entire

with .$13,385,600

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

and

'-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

its

capital- improvements to road

equipments Combined, these capital expenditures

equipment)

Company's treasury

maintained

obligation.

equipmentobligation -installments,

equipment trust notes payable in 20 equal semi-annual

from the

for

structures,- the

1955

This

-,?■

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

]

Crop production throughout our territory during thq

year

was

generally good.

The abundant peach crops in

The Corrtrrtercial and Firiancial Chronicle

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_

•

other

and

the number one broiler
considerable increase in sheep
particularly in Mississippi, Alabama, Georgia

Sinking

There was
Carolina.

and South

•

■

And

repealed.

should
imposed during World War II as a

was

supplies

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,

;

■

cowiwwhet .assets of--—t—

destroyed.

lowing*,'./'

/>''

•

Solution to these

Funded

stantial benefit to your

freight,

passenger

.'if?.

the

$735,213,289

total capitalization oi

In 1954

In 1955

4'':

from

—

this

net

from

iiiainecl

;

deducting

tion

there

re-

in-

,vested; in-the; property,

■

industries feel that they would
competition in the

Continental

face

•

reduction
the

end

existing
the

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

329,820,000

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

protective

floodgates for competing imports. So the industrialists
concerned cannot indulge in the dubious comforting

capitaliza-

largely

assets

surplus,

emergence

true,
the maximum
will
only ble
10% by

tariffs

Stock

the

four years

including bonds,

Making

But many other

able

fol¬

Stock

domestic market.

Year

miscel-

ana

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

'$716,023,539 $754,302,296

result

large free trade area are of course enthusiastic about

the idea.
■

using either rail l,the capitaiiz^tipn of the com-

development,

industrial

for

tunity

highways, oppbr-

the private rail

near

assets there remained,

for1 'the" tapTtahzauop of the

If such highways

highways is of critical importance.
are

publiot;:; ^

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

conflict
■

credits

are

whether or not the country con¬
ahead with ambitious indus¬

schemes.

trialization
11.650.588

economic matters

is anxious to press

cerned

not

far

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,

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

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

This does not
likelihood of

of the decision.

Macmillan and his Chancellor of the

the

companies,

not

but

Dei trred

Th^se pro-*

highways.

automotive

time

softie

that there is any

reversal

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

million

$25

would be realized

income
;

but

The diversion is substantial and

estimated

been

79,177,325

| 19,408,5J16

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

Sjecuriti
es

keeping

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

°<i1£r^
/ilr<-ad»
4X.J
others*k»wdd the CoApa;
the) Th^Con^anJ had dh'SaJjKd
other

subjects of:

3.994

$717,092,224 $712,163,057, $68^,872,843

actjop and .represeti(a-t
wjJL-L-

98,104,283

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 ]

the economic 'shock.

---

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

—

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*.

<«.

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

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~

'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

(

tracks, terminal

Height
and passenger cars -BOH;
and/(l
kMZJtfjj&.ty 4»UU
'other
iher

Euiopean

1954

-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

(1708)

thought that "in the long run we are all
Protection Pressures
$311,570,822. $292,672,731

dead."
,

$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-

enue

cost

maintaining

was

sure

rt,*v

"ty.

183,029,631

188.863,555

t f

4. >•*> ?

3 i

3 76,101,346
,

-1

■i

f '*

/•

v>;

t""

f
>» ji.

»'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

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.!

The Company paid

panies
and

for

excess

hire

use

$49,630,322

equipment'

'' *'.

in'*-*'

facilities

Joint

' $54,715,5^8

to other com-

$39,040,668

•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

to be

people and it$

\*h /

;

.•.

.?:•»

4 483,614

income from railway

•

operations

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

debt

$34,557,054

South";

To treat
6,340,419

$51,739,911

5,432,574

$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

number

going;

To pay a

and

possible,

imported materials should not be excluded. On the other

....)

fairly and kindly the men and

women

road

are

would

possible.

the

defensive7 against

the percentage to

The possibility of fixing

different percentages for various

goods cannot be ruled out.
to

rents

railroads

net income

the

6,048,543

and

miscellaneous deductions totaled

Resulting in

$48,430,035

ih-

Industries which hope to be able to penetrate into the

Continental

Other

would- reduce the,.scope;o£ the
low if would mean that non-

too

reciprocity, v

Leaving

If it fixed

participating countries would stand to benefit without
u.

quate railroad transportation in the

high

too

To furbish safe/ economical and .ade-

;

fixed

schemes.
tit

3,938,954

sources-^

-V

opportunities;

of the amount received

by it from those

develop the territory and to foster

faith in the South, its

beyond which the finished product do not equalify for
the benefits of the arrangement.-If the goods are merely

semi-products imported from non-participating

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

hard bargaining

any

be
a

classes of

event there is bound

between the participating

governments on this point.
Industries

which

are

the defensive

are

likely

mobilize all their influence to secure' some-form of pro¬

tection

liable

compensation for the disadvantages they are
suffer

through

Britain's

adherence

to. the

Volume 185.j Number 5628

The Commercial and Financial Chronicle

.,.

(1709);
scheme. There
mands for

employers

such

and

industries.

ject

bound to be de¬

are

employees

Common

lowest cost.

produced

The

Babcock

Wilcox

tal

stock

$35

rights

■?

In.

t))e

v *

subseribe

unless the
unable to com¬

are

one

sale

will

plants, indus-

power

The

the

general funds of the

«vau«uK; iui

capital' expenditures.

orders

(EST)

^group

was

end

1956

totaled

Net income for 1956

$14,080,981,

equal

$2.63

of atomic, energy,;-.The

com-.

The'

declared

company

there

down

would

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

;

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

omelette

object '<>

that

V;7*I'lf'

7;;

order to make?7: ';
simply must break
7 7 1

,.77

•

•«

»•

%7;

•-

Public school behind-the-wheeb

'
•'

now

.......

■

eggs:

courses

teach

driving" dexterity

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

allotted

scheme.

But

the

victims

the

difficulties

devising.-and

operating

scheme;.,

even

the

such

justice

surmountable,
<

appear

Think

;■

of7.

degree
7
be in-?,
7

■

•/.

ling

is another

device

reduction

the

ditions

prevailing

shown

doing these

are

education.

driver

student
have

reductions

in accidents and traffic

or more

driver

involving the trained

young

compared to the non-trained

driver in the
,

such

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,:

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

50%

suggested.
of

many

Studies

The adoption of a flexible ster¬

No doubt

reckless

driver—think twice, won't you?

extent

achieving somev.minimum
of. rough

the

ready
that

project finding
the

acceptance

nation

well see—in

may

our

wages

own

the

device

would
defeat

would

bring
the

Common

the

\^hat

the

basic

relief,
object

Market

teen-age drivers

pioneer in promoting skilled driver

instruction programs
far back

Stack,

of "laisser

effects.

schools

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-

the '30's is Dr. Herbert J.

Director,

"Don't
our

ployment in the inefficient indus-

beneficial

Education,

for any British Government
today to contemplate wholesale
bankruptcy and wholesale unem¬

sired

Spreading

Scheme.

ble

name

Fast

Education

Driver

be politically impossi¬

tries in the sacred

education's

are

barriers if they are re¬
placed by barriers represented by
a progressive depreciation of ster¬
ling?
would

schooled in safe

they

generation of

traditional three "R's."1

customs

lifetime—an entire

driving

eliminating

use

,7.

y-.+r

the .basic

are

causes

accidents.".

our

In the past 10

i;t

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

^ood driver attitudes: In:;

have to be elaborated in the very
;ry-7,%
f uture.

near

;i)

a sense

-7

•

of social

v'"-

►nsibuity. In
responsibiUty.

<6peci«LU)ThzFjnamoiai.CngorriciK)

^
-

;

BEVERLY

James O.

:
HILLS,
Calif.
'
Chaffers, Jr. is now with,

Pacific Coast Securities
9291

Wilshire

adult schools;

15 million

more,

year,

V*<•

than

participated. At least '?

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.
.

•

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

•

important .suppHer of the steel*

and iron used

facturers.

by automobile

Our *

manu¬

' '

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

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

7^, -eli.%°.8C.0?
■participatmg provide both classroom
1®,

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

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

andx The

•

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

'» %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—.

special/cents/ The .stock1 Was split tKr^e-

no-- >

available to eBaWe the/
efficient firm to expand their out-

ergy power plant of Consolidated.with $1 per share and 5% in stock,

rMeivaM&-

pete with their Continental rivals
manpower

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. '•»>.>

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

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

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 °

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

company and will be available for

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

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

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

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*

President, George W. Warnecke

Leading mortgage financier suggests
for

use

entirety. .'//

& Co.

leasing plan

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.

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

the very

Since

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

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

the

which that money
be

chosen

avenues

is put to work.

Quite naturally the
will

our¬

opportunity to be

selective

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

usage

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

most

The

important.

...

how

Now

having

does

one

about

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

financing

requests

them. This

means

stage

which

will

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

cost

Gordon Tuttle With
J. Barfh & Co.
(Special to The Financial .Cii»ontct£)

Tuttle

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

industry gener¬
practical to lease
own
them outright.

than

This, I know, is at variance with
the thinking of old-style industrial
management

that

score.

longer is there

a stigma attached
that is renting its
plants rather than owning them.

company

Industry
there

are

to that

discovered

has

that

number of

advantages
operation. First,
represented by the cost

type of

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

total yearly earn¬
ing basis mueh beyond the 4V2 to
a

sent

year

plant.

which
were

would

Wil-

invested

particularly attrac¬
tive. You may say perhaps that a
good portion of that investment in
the

plant could be borrowed

trust deed

but

there

change in

sheet

the

*An

the

address

Los

when that

Mr.

A long

Warnecke

Chamber

done

the balance

corporation.

Angeles

before

Commerce.

■

for

down

the

side

some

lenes.

plates,

pipe

stainless

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

speaker

meeting of the
Boston Invest¬

time rather than-4

in-size.

monthly

the

being

are

Club

ment

*;•'

Yacht

increased

W h

buyer-

prices have
apparently resulted in a slacken¬

G. B. Tuttle

:.i

•,

•

While only 12%

\ ,.."V

o n

at 5:15 p.m. r
Jane¬

..Mr.

whose

way;

firm

f,v"

Tues., Apr. 16,

upward price move¬
that has prevailed in recent

months.

ered is 20 to 30 years

higher

the

ment

Rowe's

Club,

adequate supply

generally

materials and

resistance

the

be held at
Boston

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

extrusions,
brass,
copper,
lumber, steel scrap and polyethy-

there is little evidence
reduction in plans and
of the downward reports in¬

dicate

num

J. ^

•

side are: Some steel

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

fixed

DENVER,

fairly

cause

ment at

early
firm

can

fairly rapiu rate in the

tentials'with
of accuracy,

the

lease

reasonable

tn the later

with

the

degree

years

rental

reduc¬

tions the industrial firm may be

competitive market and
have good need for a lower

(Special to The Financial Chronicle)

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

been

added

the

staff

McCormick & Company, 3761 Wilshire Boulevard.

the

New

York

for

his

stocks

some

hand,

particularly
not

forts

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."

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

magazine and a special writer for
"Life" and "Fortune," he has also

There is slight evidence

Two With McCormick

Inc.

Christian

■r

Formerly associated with Time,

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

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

/v../.•
the

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

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

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

leases

these

>; This
month's special question
asked purchasing executives for a

acceptable site. Then

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

upward price spiral is being

arrested,

credit

or¬

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

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

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

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

quick write-ofts

the

members..;! Those

month climbed

might also men¬

You

up.

where

tion

condition does

committee

saying employment is better this

comes

itself

banks

commercial

the

"floating plateau" may best
general business condi¬
tions during the first quarter of

a debt
always

established,

debt

which

describe

careful selection of the proposed

landlord

like to point out when the ques¬
tion
of
short
term
bank
loans

management
are

operation.

term

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

"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¬

change.

the

Midwest

Stock

Ex¬

Volume 185|

Number 5628

The Commercial and Financial Chr&nicle

(1711)

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 *

sources

1955, the former peak—
on Common Stock

all

records, including—

record set in 1929—

from $223 million in

:
were

$7.39

share,

;v.:

VV:..

our

cost

*V :S

postwar improve¬

•

the

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

Capital expenditures in 1956 aggregated $62 million, which
cent

11 cents above the

reflecting in important part the benefits derived from

ment program.»■ '.

$254 million,

were

Earnings

month-

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

wage

year,

—

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

$3.75

$3.50

$45.4

$44.3

$27.5

$37.1

$62.0

$16.4

$35.8

27.97

•

18.7

16.2

0.980

'1.038

79,182

77,547

2,129

2,128

72,670
2,134

•

Freight—Bituminous Coal.
Other.

....

........

....

...

.....

Total
Rent

.....

...

....

7..

.....

Other Income—Net

.•v.".'"

,■'{.

,-s; .'7

Railway Operating Revenues
Income—Equipment and Joint Facilities—Net.
....

Totals

;

....

.•

v..

........

...

••

1956

Vrvvi-.V;.;

;vv: v:

Passenger
;
Mail, Express and Miscellaneous..
.

$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

Decrease

Inc.
Inc.
Dec.
Inc.

Cent

$27,778,089
1,778,467
167,796
1,383,048

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
'

EXPENSES AND OTHER CHARGES:

Transportation—Operations..
;.•>

Other Expenses.
Total

;...

...;,

......

7..

,/.1.

.....

...

....

...

Railway Operating Expenses

Taxes Other than Federal Income (See Note)...
/.
.'.
Interest on Funded Debt.;. .....;...... 7...................
.

•

Totals

.:.

.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

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.

6,075,430
7,601,340
10,121,444
2,399,802

138,719,686

Inc.

26,198,016

13,829,953

Inc.

2,171,923

Inc.

1,431,668

18
17

:
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

*41,577,249
420,876

37,721,003
420,876

Inc.

3,856,246

41,156,373

37,300,127

Inc.

3,856,246

*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.

STATEMENT

■"

1955

-V V>

46.5

18.2

$124,766,364
70,738,346
3,706,167
9,680,286

1.050

■

•

$152,544,453
72,516,813
3,538,371
11,063,334

20.60

31,022

.•*

•

$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

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

itself

The

years.

prewar

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

Street,

one

maxim

that

under

valuation

area

rather

And

that

over-valuation
than

Thursday, April 11,057

ket

has

table.

and

facts

(1)

Our analytical
sharpened
•

■

the

•

Idle capital tends to con¬
itself, with result that there

(2)
sume

is keener

competition for

idea

ever

than

before.

the

but

will

appear.

means

have

outside

asset

side

-.-a;. •<<;,

the-stock

market's balance sheet, a

ndmber

considerations5.
....;

can

return

evaluation
World

after

that

War

earning

There

power

Similarly,

(3)

common

are

repeating,

have

norriic

for

—

"economic

become

hypochondriacs"

"eco-

not

psychopaths":

are
>

stock

impact a latent resili¬
You know them—but*they

worth

finance

corpo¬

that

fact

which

ency.

and these

sophisticated markets.
trend

the

prevailed

II.

stability

basic

greater

(a) Excess capacity is a normal
in
our
economy;
It's

condition

the

frightening

yields is

chiefly to the marinefficient producer.

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¬

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

(4) .This
out

(b) This is the first

thing, the

market in bonds is likely ta
continue—and this, in time, will
bull

drawn

(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.

need not be a long
readjustment. Tax re¬

ager

operates

long, rather

,WHAT

MAKES

C H E S S I E'S

started.

the stock market

the

recession

the last bull
.

Business

1951-52 but

rising.

was

contradictory

observa¬

light the fact that

bring to

contradictions have been the key¬

dis-:/j

1957.

note

obvious.

i'ears

can

The

individual

Our complex industrial so¬
that many companies
which

the

not

stimulant

inevi¬

Note

1953-54

plateau

production

interests

ThLC Passes

(2) Fact that the trend of pricetime-earnings ratios is downward

and

■

:'VL

are

direct cor¬

activity.

the

had

These

may

never

1937-38, is

ygasugfter

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

the apologies are
There are supports, but few

few,

—and

classical bear market,

business

market

past

A'//■;; V

doesn't necessarily

(3) There is

ended

have

senses

during

are

uneasy

the

started should them be

relation between the stock market

"something" new prob¬
a number of con¬

ably stems from

30 years.

ended

1929-32

siderations:

been

trend

were

other

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.

business

simple or
one do not
in the stoek
(2) Fact that a bull mar¬
One

always

seldom

answer

obvious.

and

represents

market

bull

full-fledged

new,

rect

for

—

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

will

nor

the

about

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

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.

Above

aluminum,

divi¬

times—and this

all

stocks—at

coming bear mar¬

holders

the

much

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

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

lows at the same time.

Secondly, the more pro¬

in 1957.

frn

(1712)

24-

FRB

index

plateau—but

industry deterioration
The
Administration

inflation, but Wall Street's
mine, too — are acti¬
the daily deflationary

ulcers—and

sustaining
influences
when*
their major lines are undergoing vated by
evidence.
test.
V:
■<(' "

Consequently,

examination ( of

Proof that my
ual

value, is

found

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

and

v-;/-;

The Liability Side

On the

copper stocks at a
when consumption and pro¬

time

debits

is imperative.

can

How else,

the

come

sheet, the follow¬
to mind:

(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

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

time

the1

stock

common

also, however,

balaqce. will be
with

o£

those

more,

earlier

set

market

held

commercial
some

reality

40-odd

black and white sets

now

in use.

Individual Divergence

In
kets
the.

word,

; can

mean

sophisticated

spread
ture

many; things—not

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¬

Flint, Mich., looks

For one thing, the
cheap and vast credit which*

Secondly, ther»*!*ow is less wide¬

located

near

gigantic auto body plant. 98

upward.

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

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

the fact that bonds and preferred
stocks
are
returning
to- their

retail demand

equity money than at

route.

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

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^

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

Even

omy has

than

important,

past;

history.

prominence

now

Con-

the

contribute

and

occurred.

Resi-

corrections

over

the

not

past

around
The

children,

than

suburban

"ex-

faces

us/today,

namely:
outgrown the

economy

cycle
On

the

April

evidence

answered

"no."

brought about an en¬
tirely different consumer: buying
attitude. Pension Plans, the

with

We're

base—and

have

said

available

business

low

best

which

^underlying stability,

.proportionately, spend

most.

f,, >>•..

the

(f) The building industry is
excellent

illustration

an.

the

upturn.

with
.

still

the

stocks,

hit and

run

willingness to

tide

where

well

the

most

ball

move

hand.

But

for

there

basis

situations—and

this

year

private bull and private bear markets. It's a year when the question

year.

financing
will

iron

and

the

'XThoritv
"'ll ^
™
^ '°Lrf
^^ ^

\':r

^T.icc,c

nr,coc

ostrich. .'■>

I?1'
i'J
'

•

fc
Community,
enter-;..
is also
empowered to.r
I*

and

of'

consumption

in the Community. ",

scrap

with

given
to
the5;
installatioris which"

reduce

hand

steel

attention'

tuu, 1% rate.;

aPPjjed but
m-& ?-e JvPle

:an

be^n

high of

'iS^J

Taxable

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

shareowners

West
Germany,
Italy,
Luxembourg and the Netherlands,
was
made on Tuesday
(April 9)
by a group of underwriters headed

■'•

for

; see

themselves

vp!

invited to tour the 5,100 mile
system and make

man

tal

aggregate'i;

$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

$7,860,000 from interest

bank

deposits

which

on,

interest

earnings have also been loaned

the

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

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.

xeiy

guar-;

present

age amount of the individual loans

amount

France,

Chessie

Authority has. granted 93 loans

Belgium,

among

consists

the equivalent of $100.000,000.:m

the

fund

anty

Com-

in 1951

established

aside in

to cover,

public offering in the

European

are a

coke,

production

formal

Ilere

modernization
the

munity,

owners.

and

signifiinecessary

which to enthuse about individual

United

coal,

special

key to success is
not diversification

aVTheedspringboard
at

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?

facilities ' for

important

cant, new, over-all advance is not

One

/ L R OA D

Spring
Inventories are

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

this

bonds

where

game

year-

■«

was

the

residential building.
of residential
In a word, April,. 1957, 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

....

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

groping

the

Secondly,
possibility of a

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

different

business

formerly

was

1957,

Has

11_

•

For

liquidation. We seem
cessfully
completed
the
psychological readjustment

potent force.

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

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

ever

.*•***

^serial secured notes due April lj
4'-' .1960-1962, inclusive. \:

;;

The bonds and

priced
100% and accrued interest,
;

The
~

notes

000

are

High Authority has agreed

cured

subscription v in

will

redeemable

The

the

ser

1979; the equiv->
$12,000,000 of
\

ments

bonds

the/
4

the

37/8 %

notes due

bonds, at par, in 13
substantially equal annual install¬

4-datory redemption payment.

from

through

Export-Import Bank
alent of about

1954

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

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

and

Act

;

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

after

countries

member

Community
coaT"and

Lithe

ceded

sovereign
steel

the

powers

areas

Mrs. Genevieve

...and

owner

Loutsch,a Chicago office manager
o£ 50 shares, hears about-electronic

railrfMiding from John
Grand

Rapids. She

confident
*»«

agent and
of

Chapters, Trainmaster at

says:

"As

investment is

of -fel(*e$e'forwa*d-k)okmg
the

C. Grattan

shareowner, I

secure

owner

I have

manage

Chesapeake and Ohio Railway"*,

convinced that

insurance

ing
in
through

freight train with Engineer Ott
has been

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

coal

and

one

and

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'

metric

and

coal,

about

Within

there

are

customs

the

me TE*#WAt-T0WE*. CUYEUftO
!, OHtfr

frontiers,

Detroit

summer

11,

It will

>the

will

outing
the

Outing
The

hold

the

nancial

industry,

of town

guests.

along

crease.production.

and

in-

The major part

out

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

an-:,

Tuesday,...

Community, the financing of
capital investment programs of
.enterprises designed

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

June

crude'

one-half

States.

market

common

national

Club

metric tons
production of these

'hat of the United

munity

DETROIT,

249,000,000

commodities

Hhe

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

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.

merly with Hooker &

se-,

officfes; at
was

Fay.

for...

The Commercial md Financial Chronicle

(1714)

Beach

facility

News About Banks

open

ond

week

NEW

BRANCHES

NEW

OFFICERS,

Mar. 31,

deposits

due

and

banks.

from

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

Bank

Planters

Co.

Trust

Peoples

been

Company

profits-

ing

bonds

savings

and

securities

ernment

does

office

Street

the

tional

Cashier.

'/••••'•*

sVv

''VV'

not

bonds..

forecast

seem

Also,

competition

the

getting' from

are

corporate

and

that

gov¬

tax-exempt

expansion in the market for

will

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

Refunding Issue

.The government bond market continues to mark time because

1929 he

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.

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.

has

Frank

von

named Assistant Vice-President of

the

Main

1925 to 1929.

Memphis from

James

;

Very

plentiful for the purchase of

There is, nonetheless, a sizable

Treasury bonds until they are put on
-it

ifi

continues

market
as

edly the principal buyers of the most liquid government obliga¬
'

value $25.)

par

Memphis.

Co.

Trust

National
592,861,934

668,973,388

banks—

Govt,

3,054,658,959

2,484,511,333 2,542,690,186

—

and

from

The

of New York, died on

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

COMPANY

YORK

NEW

Deposits

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

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 *

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

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

BANK

YORK

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

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¬

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,

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—
"■

■

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

New

Bank

appoint¬

today

Sieniawski

Michael

Representative

Mr.

Sao

Brazii

Trust

and

will

previously

was

the

Irving

in charge of

Company
in

Latin

op¬

America, Spain

was

previously
the

and

Vice-President inl 1945.

Roderick

Bank

the

Man¬

head
Department,
1930

and

for

Chase

Bank, New York,

Vice-Presi¬

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

2949,

was

Cashier

Hulsey came to the
petroleum engineer in
appointed an Assistant

Assistant

1951

and

advanced

Vice-President

1954.

Mr. Pollock has 30 years' service.
He

was

appointed to the official

in 1951
Assistant
Digitized staff
for FRASER

Seamen's

and

years

78th

ago

pioneered
of

pounded
Mr.

Cash¬

the

City

the

Jay

ifi

open¬

Today, with

serves

depositors. Interest
of deposit, com¬
times
3%

The

year.

addition

cents

paid last

year.

SOCIETY

Shore,

Bank

ifi

the

Reopening of 3V4s of 1983 Rumored

There

opinions around that

are

yield of less than 3V2%, but

Treasury could set the price at a level which would give

the

The reopening of
and

due

19,756,826

18,520,307

82,692.837

90,821,362

discounts-

opinion is that not

favorable yield which they can

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

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

the

If this

293,855,836 297,360,150

and

for this kind

reason

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

a large one and another
half dollars added to it would not make

out. of proportion

sizable and

too

CLEVELAND, OHIO

Total

billion and

maturities of governments."

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

...

I OR SAVINGS

ifi

the

sale

capital

common

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

The

stock

stacle

ington, W. Va.

was

$400,000

$500,000,

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

has

received

surplus

NATIONAL

THE

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

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.

was

Investors,

increased

from

engage

Officers

$750,000

dividend effective March 29.

000

shares, par value $25.) "

stock

(30,*

G. E. T.

—

been

formed

1950 Taft Drive to

securities

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

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

MICHIGAN

resources-

counts

ap¬

that

followers

market.

ifi

BANK

suggestions

favorable influence

$210,000.

Suffolk,

The

also

are

used to pay

The bank has

capital of $350,000 and

Undiv.

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

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

savings bond

Guaranty National Bank of Hunt¬

Finance, is in charge.
State

Jet's get it
seems

adjusting dividend

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
*

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

of 65

will be made

offer

Chinese

anticipated

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.

Treasury to the

and

$485,000,000,

four

when

which the F and G savings bonds

Directors

imminent.

was

time

The

by James M.

Avenue.

announcement<

non-government obligations.

thirty-eight
The Bank for Savings
the savings bank idea

200,000

with

3V4% bond

Street.

hundred

nouncement

Germantown

April 8 of a new
at Lexington Ave¬

office

week's

this

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-

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

announced

Mar. 31,

Bank

trustee

Bank

the

appointed

has been

Trust.

and

branch office at 150

Chelten Avenue

•

Bank

a new

1942.

Co., Inc., New York, has been
Mr. Wingate is a di¬

rector

have

bank

been

of Henry

is paid from day

the

has

announced.

over

joined

director of J. P. Morgan

Joseph C. Broadus, Bob T. H.
Hulsey, and Robert J. Pollock
been

the

Philadelphia,

election

gate as

and

Vice-President

t|:

assets
*

bank

in New York

hattan Company.

dents

ap¬

was

McRae,

Investment

associated,

with the Chemical Corn Exchange
Bank

De¬

pointed

nue

Portugal.

Credit

and

1920,

Alfred S. Mills, President of The

Sieniawski

erations

The main office
Paulo.

Vice-President

bank's

the

The

with offices in Sao Paulo and Rio
de Janeiro.

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

18,419,910

the Grace

44th

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

The

$72,486,799

discounts-

ac¬

His

$74,569,191

—-

holdings
Loans

Vice-

area.

Sept. 26,*56

Deposits
banks

midtown

the

Mar. 14, '57
resources-

Cash

Elliman

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

;

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

for*

flown to New
used through the Eye

eye

was

Restoration * for
another similar operation."
Sight

Chronicle)

PORTLAND, Oregon—Kathleen

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

one-year term as Chairman of the

Board

Governors

York

Exchange.
is

the

New

the

senior

partner

Leeds
*

nated

;

was

from

Los Angeles.
They are:
Earle

&
of

York;

Tucker,

year.

Co.

man¬

Co.,
and

4%%

due

Roebuck

subordinated

May

1977 of
Acceptance Corp.

debentures"

were

priced

Roebuck

4.70%

which

The debentures

and

Co.

similar
Sears

under

has

from

sold

that'

redeemed

are

the

may

option

credit

sales

totaled

Co.

31,

1957.

operates

plants, 717 retail

Sears
mail

territories and possessions.

New S. F. Exch. Member
SAN

ald

Sears,v

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

stores and

throughout the United States, its

under

mentreceivables, "arising

the

Jan.

than 750 catalog sales offices

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

&
j

Co.,

Pacific

general partner

of Samuel L.

with

offices

Shapiro

Bayonne,

N. J.

•r

*!'

jCM

Horrace

Anthony

•

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

Fenner

Hutton

W.* English
Hutton

were

Fred¬

Joseph R. Mayer

ensuing

Sachs

organized

Corp.

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

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

erick J- Roth, Vice-President and

r s

for

meeting

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

Kel-

logg. /
1 Four

A. S. E.

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

i? ■

■i*^.

Day

Boston; and Lloyd C. Young
of Lester,
Ryons & Co. of Los
Angeles.
:
>V
Mr.
been

Kellogg, 41

since

1950.

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

the trad¬

was

soar

Vice-

He started

telephone clerk

old,

years

Governor of the Exchange

FAST- GROWING

years

old.
Mr.

Kellogg is

Commissioner

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

Savings

Sr.

Co"r>rmt+r,°.

the

Citv

and

Kellogg & Sons, President of the
C.

Kellogg Foundation

hnn

or¬

ganisation devoted to medical

re¬

search),
mount

Pav

and

Co.

director

Fe is

Head

fN.

J.)

and

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

Nominating

five

Co.; also

Governors

terms:

Jacob

was

all-time high. New businesses and in¬

and

Abraham Sr Co. (vo~k City);

levels

-J This brought soaring demands for

three-

Plmb+r^u

record

million persons. Per capita income

—

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

cnvd«r

'(*w

York

In 1956, El Paso Natural Gas
set

new

records in

able it to

burgh).

future.
mem

herein

the

Gratuity

death

change
John
K.
&

the

members

were

trustees

Fund,, which

benefits

deceased

John

Rutherfurd

the

Futherfurd
Co.

and

placed in service approxian

additional system

^capacity of 450 million cubic feet

John

bases

Delafield;

Phillip

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.-

Roth,

Roth

and

Stern, F. F ctern
George H. Walker,

addition

includes:

Mr.

McKeeyer,

Nominating

Committee

Austin

Brown

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

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

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

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

served

Preferred Dividends

starkweather of Starkweather

G. H.

can

Net Income

pays

families

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.

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

prosperity. Population increased by almost

Morris

Woodruff.

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

1956

Associetmn

Loan

serving western markets

Federal

the Central Home Trust Com»anv,
President and director
of J.
C.

EL PASO NATURAL 6AS

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

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

The Sleepy
Coun-

Hollow

Club,
Scarborough,

t ry
-

Y...1

Blancke

market

Noyes, Hemp-

Noyes

hill, Noyes &
harmed Field. Day

■

has been

Co.,

this

Chairman

He will be
general chairmen

year.

assisted by four

—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

i 11

a n

Food and Beverage—Richard N.

Rand, Rand & Co.
Golf

Todd,

II,

Kuhn, Loeb & Co.
Horseshoe
art, F. S.

—

Norman W,: Stew¬

It will be readily

realized-what

stock would do

refundable

large bloc holding of duPont
when we learn that

they must be paid.

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—

1»5fi

Aetna

Casualty

Aetna

Insurance

Continental

Insurance

der, Peabody & Co.

Trophy—Frank

________

Phoenix

a n s e

Insurance

Fire

Springfield

11,

___

Continental

___*

____

Casualty

Bankers
•

the

Government

Officer

West

End

-•

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

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.

Teletppe—NY 1-1248-49

Glbbs, Manager Trading Dept./

Specialists in Bank Stocks

added

Company,
Boulevard.

the

solidated

net

revenues

income

with

compared

$45,321,000,

con¬

operating

and

sales

$307,701,000

$41,161,000 in

and net
1955.

Smith, Barney & Co. and Pierce, Carrison,

1,974,000
•

52,797,000
31,507,000

•

—561,000

as a

staff

9500
He

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.

S ;;-•

;-V7'-/,"

Federal

income

will

redeemable

part prior to maturity by op¬
eration of a bond redemption fund
after July

1, 1960 at prices

of¬

in¬

ranging from 103% to 100%. The
bonds also may be redeemed as
a
whole on or after July 1, 1967

scaled

from

ranging/from 104% to
v-'V*/-/1 ;*'/;-

prices

100%;*

the

L. M. Krohn Director

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 &

that

the

bonds.

revenues

available
bonds

for

from
debt

was

estimated

these

service

011

the

thereafter

annual 'increase
$3,130,000- beginning

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¬

ANGELES, Calif.—Eli

and

being

proceeds

The bonds will be

(Special to The Financial Chronicle)
—

the bonds is exempt

present

bonds

The

bonds, $23,700,000 will

in addition will

material probably would

been

applied to retirement of all of

000 to the cost of

1,749,000

Two With J. A.

has

Santa
was

net

years,

taxes.

the

all

from

$60,-

approximately

;yield

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.

to more

tion of

130,000

5,619,000 ir
1,168,000
1,406,000
665,000
8,118,000

in the

times

1.80

Interest

consists

projections,

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

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

67,000

5,375,000
7,908,000

$70,000,000

F laExpressway

revenue

sale of the

709,000

Authority

—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

1956,

$70,000,000 Jacksonville Expressway
Revenue Bonds Offered to Investors

terest,

used

(Special to Thk Financial Chronicle)

Reuben

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

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

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

delivery.

000,000

—2,278,000
4,620,000

4,845,000

____.

Fire_____

Insurance

Northern
>

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

fee

mitment

Co. and Pierce,

$5,676,000
1,253,000
22,876,000

$17,111,000

__________

Fidelity & Deposit
Fidelity Phenix

Cates,

est

state

____

with the company

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

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,

be available for

;

—Investment

Exchange—Brittin

period

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.

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.

years

asset valuations

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,

tal

Co.

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

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-

Volume 185

Number 5628

The Commercial

Financial Chronicle

ana

(1717)

First Boston

Public

Utility Securities

060 in

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

am"

AUUOUUCe OUtlUff
>";

-1

PHILADELPHIA, Pa.—The an*nual outing of the Philadelphia
Securities Association will be held

year since it began

operation in. 1919. In 1956,

7^Q

flllai OBCSa ASS II

■

world.

reported

^T^ay,

gross ;on

19?7'

Kentucky

and
in the soi

areas

_
.

state. Old Dominion

sidiary,
three

supplies /;

Power,

sub-

creased front

and

19.9c

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-

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

typical

what

smaller

scale

already asked for
West Kentucky Gas
allowed

actively
promoting
munity development.
V>

now

com-

industries

new

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

* " 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.

"steady

Electric

revenues

156%

upward
made

somewhat

similar
showing,- increasing from $17 million in 1947
to $37 million last
year, a gain of

118%.

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
•

the

from

nearly

„

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

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

390,000 kw, and there, is also about
80,000 kw purchased power avail¬
able,
When

making
the

c o m

reserve

17%.

1956, dividend payments
u

In-

t-u

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.

...

•

...

(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;-

■;;

Supply Co.

v;';;7|: /•-. ■';v;r

Sets New Hish Records in

Utah-Wyoming Area
2;;i

• •

•;

L^J

■'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

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%.

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.
>

Brief

;*?■

Comparison 1956-1955

;

1956.

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

quarter.

Listed

the Pittsburgh Stock

Copy of A nnual Report

Exchange.

will he

sent on

MOUNTAIN

FUEL

SUPPLY

p a n

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"

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

(special to*THfi financial Chronicle

$266,000:000/

Women of

1949-55.

1921,

$2 per share. The

re-

with

Nickel Company Lim- outstanding security; for

»wmoi wve dicumu-

currently-and
stock nearly
to

Inderal Land; Banks make

to $2.13

increased

in 1954 v(with
dip in 1951),. but in
1955 dropped to $2.05 due to the
-

,
,

^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

^i,iui,>/uu.
xu
hdve totaled $391,707^500.
In
1955

covers sulphur from sour natural
an

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

(soedaitb'tfita;~ f ■

Banks

Cup.

foreign

•

■

Electric, Metal &
Thermit, Bundy Tubing and Dixie

plants

General

from

^ C

J0ins J. A. Overton

; :

recently

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

tial

and

Offer 37/8%4% Bonds

$20 million electric

new

being de--

dends paid through'March 15,1957

Federal Ladd HaRKS

esti¬

Mexico. The company

and
li-

now

$1^00,000. higher.

year*^

auu,,

has

' i
Richard p.
,
■
■

.....

increase.

an
was

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

$
?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

™,

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-

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

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

$2.06
next

cus-

one-third each. This expansion

base. It is expected that, without
rate increase, share earnings for
this year may decline to about

the number of

increase

i„ereaS'e

commercial

should

turners

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
*
—

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

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-

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.

■>

The Commercial and Financial Chronicle

Thursday, April 11, 1957

(1718)

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

the

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

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

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

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

that for itself depends

the rank and file of the
to

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

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/-/

light,

/
;of

therefore,

considerations, reliance on
credit controls for re¬
any
overexpansion of
credit

conditions looms
instrument
one

Consumer Instalment

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

under
as

credit

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

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

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

contraction in

widespread

the

desired

against which general credit con¬
trols must exert their influence.

sales

opposition

credit controls tnat has

consumer

unfavorable

inventories,
retail

schedules,

whose and wholesale and
both inai- might be serious.

debt burden by its users,

voiced

industrial,

com¬

Prior

goods

been

have

groups

into

the

supports the position frequently
taken that the imposition of con¬

tion

mercial,

financial

and

that

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

peace¬

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

are

the

banks

institu-]
commercial
most
important,

credit-granting

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-,

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

reduction

consumer

cretionary

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

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¬

source

in the volume of

crease

pe¬

liquidity has

the

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¬

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

riod of rising public
been

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

credit.

sumer

admitted

usually

sales

habits

with

and

gree

credit

individual

commercial
is not war¬

controls
a

less

general

that

may

de¬

credit,

types

intimates

any excess

credit

other

selective propriate

credit controls represent

interference

spending

that

said

which

regards such objections, it is

consumer
an

also

offer

ap¬

means for restraining
in the use of consumer

selective

controls.

Fundamentally, the total

bse of

that

funds

eventually

are

lodged in consumer credit paper.*
Considering
the
dominant role
played
the

field

their
serve

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

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,

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

credit
the

pressed

degree

liquidity

peak

most

the

essential
their

obligations*' This is

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

missions

acknowledged

that in doing so the free market
process of allocating the available

deposit

supply of credit at

time of

expressed: active demand for credit

not

may

theatres

degree, ad¬

ing effects
ing power.

and

view

sports

arenas.

art whose

credit, it

sumer

the

the end
sumer

premise, therefore, that

use

of many essential

credit

con¬

the

.amount

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

which

commercial

uses,

most

needs,

impact

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

whose

ex¬

abrupt and harsh

the general level of
ex¬

not

was

ute .their loanahle resources,

used

during

paper -

another

was

1956,? which /*>:??{■;
intense de-

year

mand for commercial bank

payments,

«.T„ jtrnnrl^"
* ;•

-'• •

•

/'-v.' 12.9%

Cbi

by general credit controls

on the
commercial banks to allocate their
available supplies of credit
among

debt

years.

■

consumers'

sumer, credit really

good for the

reckoned

with

than

deposit liabilities.-

;

*'-: /::

l^ss positive

;

answer can be

given to the case of the individual

have

along

the

with

consumer*

generation

;

General. Controls' 1956 Success

„

user of consumer credit. It

isesti-/

been

use.

credit

debts

the

those

imponderable

times

marches
of

use

them,
fact

ing

credit

marches

will

everyone

the

potentially unstabilizforce, I " am sure

for

With Francis I. du Pont
(Special to The Financial Chronicle)

LOS

in
H.

with

ANGELES, Calif. Lyndon

Osmundson

Center.

greatest

Logan & Co.

when

good

many."

■

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

future

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

good of

place of honor.

per¬

present

that

greatest

stalment

agree

"the

debt

from

quality

economic

ignores

evolution

on,

being

instal¬

that,

policies,

ment credit again become
suspect

vantage
youthful

whose

behind

are

the

Moreover, even should history
be repeated and consumer instal¬

To criti¬

consumer

from

respect
to
con¬
instalment credit
obliga¬
tions are less likely to arise.
i

obligations,"

good.

sumer

its

have

point

the

debt

booms

through properly conceived fiscal

the

for

liquidity, and

monetary
problems with

em¬

credit

economic

and

the

constant

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,

cize

therefore, al¬

are,

ways

respect

ment

disposable

consistent with the character

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,

and the

of their

have

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

However,

demonstrable

exist¬

■

1956

ment

maturities.

that

income

burden

the

•

consumer

the

themselves

ployment

and

other

free

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

credit

that

consumer

job

the

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

the

ence

;

of credit is

credit controls.

•'

/ *

•

was

7:*.

Joins

Pont &

formerly with J.

'."*

•

with

now

Co., Statler

j'"

^ ' '•

Hemphill, Noyes

'*• '.'

(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

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

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

production of producers' goods.
t

rnn^fim^r

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,

thnco

ustorr

making

their

source

for

consumer credit advances.

The secondary
eral

?sp?clallv
to
in turn look

rswo

to b-mk credit

credit

influence of

controls

gen-

the

sales

finanee companies which: operate
extensively with commercial bank
cr-dit

still
ence

the

case

point. But of
imoortance is the influ-

of general credit controls

marginal

type of bank borthat is the last to be drawn

rower

into

the

extensive

use

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

•

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

Current Assets

heavier.
rience

users

any

43,999,000

Receivables and Other Current Items

26,219,000

con-

obligations

Lacking previous

with

$12,128,000

Inventories

consequent

because
burden of servicing their existincr obligations w a s growing
new

Cash

pro-

sumer instalment credit to take

similar

cfl financial ^Fcbiticn

As of December 31, 1956

reduction in per-

and

serious

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

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-

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

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

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)

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

wnnv

right.

right to save

this

LA
mvest

+v.,;?c
nf
fruits of

•

the

and to

been

one source—
—

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

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

used by power

money

build

facilities

other

issued

by
by
used

insurance
the

are

entrusted

buy these securities
of

50%

About

cost

the

company facilities comes
from the sale of bonds. A bond is
power

the

returned

While

saver.

con¬

government can operate a com-

mercial business economically.
We

have

public

just

through

come

election and some of the

national

group

power

are

saying

the

money

the safest

form

tained

through

ferred

stock.

litical

am no po¬

analyst,

around

voters

few

are

but

have

and

years

conservative

and will never fall for the

heart
social¬

pays

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

prior claim

The

remaining 35% is financed
by
the
common
stockholders
equity.
The common stock is a
pure
ownership certificate, and
-

holders

the

these

Let

the

same

kinds of equipment and

operating methods

has the

shares have
ave

for

Public power utilizes

same

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

that
that

thic

tvnp

if .the
the
if.

investor-owned util-

power

has is its abil-

pxeess

equal

amount

Government
terms

ehar^es

the

from

individual

build

ourselves

for

posterity

and

for

our

greater America.

page

analyses

Study—!!|

...

contentions including New York, California,

the

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

destroy the main theoreti¬

cal argument for

pic- stalment industry.
presents
^he pro-selective control argu-

from other uses,

provided

general
regulation

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

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

dissi-

requirement.

Preference
T

rosy

power

would

■'

past

the

and

>; serves

has

run

some-

contiols

general

this:

tl}e quantity of bank re-

Press on

Clause

the

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.

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

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

"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

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

runs

for

No Case for Selective Controls

(including, of course,
Thus it can be

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.

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

Whenever

little bit of

itv lies under the burden of ob

technical advantage,

of.

care

he'immediately

viously, the apparently

look at public power

moment.

whether they are real.

the assets of the company.
-

to express their views.

weight and

own

Federal taxes).

average

This

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

I do not believe this.

everything in the world

taken

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

vinced, the erroneous notion that

companies,

money

by their policyholders to

them

of the bonds

companies

power

owned

which

these

from

comes

About 60%

sources.

and tagonists who have,

plants

generating

case

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

trouble

development that we have

reached

„

make

millions of indi¬

upon

anybody gets into

It is because

contributions

vidual

fi-

can

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

about 2Y2 % on its investment, or
$25,000 per year for the use of the

...

have

•

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

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

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

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

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

lars

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

ments, credit for which is due to

ment

„pnti

publicse

taxes

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

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

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

their citizens this

Americans

free will

own

his own account:

Returning
paper,

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

one

blade

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

this

period

which

must

tention

the

all

pay

at-

money managers—depends on the

future.

Understanding the Monetary

pre-Accord policies which shack¬
led the Federal Reserve.

Mechanism

;

the

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

that

agree

and

can

part

general monetary

credit

outstanding.

view

that

wisely.

the

himself

consumer

the

quantity

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

ers'

income

will

than
rise.

consum¬

1965,

families may be putting 13 to 14%
of their spendable income into in¬

stalment
in

the

buying,

last

two

against

and

years

11%
in

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

...

Turning

,io the quality of

now

credit, I would diverge somewhat
from Mr. Mills'

notes

the

views, in emphasis
ty

qua

obhgations
the

viewed

(of boom)
the

obligations,

consumer

tlLonLand
the

boom

also

must

deterioration

^.e
have

quality

competi-

excitement
of
a

led

downpayments

with

exten-

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

look

the

understand

sound

only

and

safe level.

This

■■

public duty but, as experi¬
ence teaches, the granter who ig¬
nores the question of
quality"will
a

Continued from

response

will

stable

condi¬

help.

course

Digressing again to the study, Dr.
Moore's
has

contribution

shown

how,

past

Part

sions. those companies which have
permitted
have taken
his

mend

the
j

quality

terrible losses.

you.

in
.

been

remiss

—

any

event,

credit

consumer

Herald

nation,

Utopian dreams of

selective

can

credit

that

But

with

question, apart from timing,
how much reliance we can,

from

response

ment

the

evidence

area

Tribune, 3-20-57,

mentals

into

which

are

activity

without

evidenced by the availof funds to intermediaries

,abUit'y
?and

credit

departments

£ banks is indicated.

Response at

consumer

«retail

™

level -

told

are

eaga ^ foment,

although

tendency for interest charges

some

rjse and tor standards of credit
worthiness
the

stiffen

period

covered

board's study, demand

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

data

and

greater administrative flexi¬
bility in tax and expenditure pol¬
icy might be desirable, the fact is

levels

disposable

and

come

tutional

in¬

by subjective and insti¬

factors
less

personal

involved

than

obscured
in

ality with the will

that the

character

most

vendors

are

pass

rise in

business,

likely to be reluctant
to

costs

Selective

American

the

purchaser

ercise
all

over

consumers'

personal

the

choices.

consumption

ex¬

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.

have

bent for

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

able

its
be
if

that

this

Constitutional

authority,

expected—and

trusted—to

the

need

for

may

sonal

intervention

Stein

much to your

There

that

method of

pective

Stein Invest¬

not

(Special to The Financial Chronicle)

Exchange.

sell

with

be¬

The Security Analysts of San

age,

There

obtaining confidence

eventually acquire
man's investment list

(You

don't

way

business

by
even

SEC, and I
I

was

it.)

craft

and

chemical

industries.

These specifications would include
but

not

limited

elevated

resistance

temperatures

and

abrasion, close size tolerances and
dielectric
that

strengths.

ceramic

alumina,
magnesia

bodies

zirconia,
are

stated

composed

titania

being

and

utilized

the aircraft industry in increasing
amounts
and
that
considerable

experimentation
ducted

the

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

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

Francisco

reputable
back

was

Pforzheim er

April

away

following

the

passed

age

short illness.

Mr.

Pforzheimer, a well-known
bibliophile and civic leader, was
partner of Carl H. Pforz¬

senior

heimer

Co.

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

111.

—

Frederick

become

Yantis

associated

Co.,

Incor¬

porated, members of the Midwest
Stock

Exchange.

prac¬

Merrill

industry

increasingly important

factor in the atomic and electronic

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

customer.

only

but also

Jackson

per¬

individuals
going very
a securities

definite

bring you
prospecting for clients.

the staff of Ervin E.

Company, 1414 Broadway.

Importance of

of the future

that

Ohio—James

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

handling

account,

have the

terviews

(Special to The Financial Chronicle)

ment

service to

there is

With Ervin

investment, anal¬

might also be

you

will

you

act

private decisions be clear.

the other

the

successful

controls

any

they transfer from the market

initiate

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

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

influenced by

your

able you to sell with confidence.

that

visible in

sound foun¬

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.

Relatively Insensitive

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.

out

the

Ceramics Noted

obtain all the in¬

vestor

other

affairs.

sometimes

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¬

but

have

carve

niche

twice

right

don't

trading

representatives—that is to say, the
itself.
'

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

training

progressive

investment

make

proper

you

bet yourself.

necessary in order to establish the

and

sales¬

the

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

independence

your

and

the

business.

"■

learn

teach yourself

you can

then

day ' about

every

advisor

the

desire

regarding the method¬

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

member investment
banking firms
and dealer organizations I would

interferences

when

-guidance

■•>.•'(

•

those fortunate

courses

recognizably objection¬

determine

industrious pursuit of busi¬

ness.

Individualists
For

should

their

the.

practiced by
security salesmen when they

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

an
an

This Is

If selective

noted,

were

from

sim¬

business with the meagre amount

inl'la-

ness

funda¬

part still

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

who

direct

with

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

director in

ques¬
a

deal

bodies;

analysis

and

how

with

ING out in the investment market

system of free

our

monetary controls

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

the

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

You

an offering of an investment
where you boil it down to the in¬

educa¬

published

which

economy, relying gen¬
the market mechanism

erally ion

this

whole

might

of artificial

would

enterprise

'di).ect

material

plify

Investment Bankers' Associa¬

data

,/*..; '

tionable economic effects in

study on "whether
the
of the consumer instal¬

credit

listen.

and

learn

you

when

and you

limited amount

"technique

economic processes. To that

extent

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

and

How!

write

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

most

often

rity salesmanship.

industry—the

in.

the

DUTTON

good book^they can
read that explains the art of secu¬

raising its living standards beyond

Ygtti,'* 't

subject

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

government, control
com¬

Perhaps

build

JOHN

Know

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

work

research
i

dustry

deterioration

"general

(p. 12) that

depres-

mechanism

page

now

which

complex

nature

Consumer Credit and Government

in the long run.

tions,

such

its

Understanding

courses

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-

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

automatically not deteriorate, ^the period.

would

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

managers

Governor Mills is a kindly man.
I know that from personal contact.
I

duties

our

rc'\q

Thus the periods of credit growth
have also been periods of declin-

not

Obviously, the success
Federal Reserve — our

lowering

and

mone-

Some response at the "wholesale

investigation has identified
same periods

,Y'
the

special

and

tw/orV,ngc of monetary policy in

credit

study, some insight on the likely
growth of instalment credit was
grow

general

corporate

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

forces.

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

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

interest

when

There is

granted

reversal

boom,

sure

terest

five

West

for

rose,

a?d ^QUipment l"^t about

the funds they can;

arguments,
evidence

and

'11
*° some reaaon
the two
approaches

what

quate

111

fun(js

some-

1957

and

1.958.

that

the

first

flow

support

flow

an-

internal

are

car¬

normal
in

carried
including

schedule,

produce

to
are

difficult

find

policy to follow in such
Customers

are

clearly

keen

enough competi¬
out the least effi¬

weed

competitive
and

standards

service.

the

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

same

with

earnings

capital expen-

urgently

needed

excesses

when

capacity

in annual accruals for de-

ond

preciation.

preciation

business

1946

charges

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

not

nual

flow

capital

funds

available

expenditures

and

for

other

and

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

good

not
a

for

does

seem

the

tween

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

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.

neces-

pro-

and

the

1956
to

■

in¬

demand

business

for

annual

already

average,

any

summarize

statements

outlook

the

offsetting

the

Summary

Three

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

whole will nrobably

than

higher
whole, and

new

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

■

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

;

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,

will their prices.

A $5 to $6

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

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

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%

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,

through

corpo¬

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

tantamount

the

business purposes, and the growth
continues.

than

Inasmuch,

above

We have been through the

Nonetheless,

economist

pub¬

equipment in

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

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,

under

? 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¬

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-

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

the best possible information,

duced.

combines

This

service.

there

ment,

tren d.

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

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

expendi-

Studies

most

their

downward

cient producers and maintain high

cover

sjc{e

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

de¬

announced

eight

pulp and
through

levelling off or some
the capital expendi-

rates>

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

c]aimants

the

rale

but ,the

less

any

ti;A

tion board and hardboard

continued rise in internal funds may ease the presjure

The main

general.

ried out, they will equal

cap-

also

quarter,

total

direct evi¬
dence is the comparision of capital

are

for the next

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,

become

There

enough, much the same thing happened

What

and shut¬

work

reduced

suffering industry.

Interestingly

business.

funds

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

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

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

proach, however, suggests some¬
thing more than a mere levelling-

in the West, a

Here

1Continued from first page

A1722)

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

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

capacity

steel

for

Steel

and

Institute

the

entire

90.6%

The

of capacity, and

industry's

based

ingot

annual

For the

production

rate

week

month

tons.

year

for

the rate

ago

the

ago

that

the

average

weeks

of Jan.

and

ago.

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

-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

and

Last

24,308

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

' •TT:^y:

Business

Commercial

Failures

and

failures

fell

above the 217

year ago

and the 211 in

1955.

week

Failures

mained

dip

to 27 from

week

but

agq,

above

they

re-

Fewer failures occurred in all
industry and trade groups, with

.from

55.

111

from

141

and

slightly.

week

'•

eggs.

Lower

below

volume

last

week

last

raw

foodstuffs and

the

sum

meats

Mountain —5

bookings in

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

daily

Falling
to another
low

new

wholesale

reflected

some

23,

1957,

March

Rico bonds
of 2%

volume

decline

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.

increase

payable

fur¬

dra¬

were

period

below

period last
increase

York

ended

year

ago,

year.

the

week's

sales

According to the Federal

was

the

bonds

when

due.

States

Housing Act
amended,
solemnly
of

the

United

the

Interest

states,

the bonds is

income

exempt

taxes.

The

legal for savings banks

are

New

the

Federal

bonds
in

York

and

except

that

Puerto

Rico

certain

the

other

bonds

Agency

not
investments for trust fundte

legal

Proceeds

are

used

from

the

bonds

the local

will

agencies to

repay advances made bv the PHA
to retire

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

Reserve Board's index, department

•

(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

has

BEACH, Cal.—Jack

now

engaging in

business

West

from

Joins F. I. du Pont

se¬

offices

(Special to The Financial Chronicle)

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

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¬

'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

the

year

amount

Beane: Eastman Dillon

decrease of 4% was
1957, no change

City

local

un¬

boosted whole¬

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

interest, and thereafter at
decreasing prices.

were

scaled from

are

accrued

30> 1957,

New

inclusive.

dollar price of par. V;
bonds will be callable 10

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

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

from

March

tended

period

is to show the
general trend of food prices at the \Vholesale level.

Wholesale

the

year.

retail

was

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

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,

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

5% to 10% above the comparable period

year ago,

Wholesale Food Price Index Declined
Somewhat But
Was 3.5% Above Year

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

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,

stores.

Increased

failing

retailing toll down

large

South Central —4 to 0 and Pacific Coast —11 to —7%.

the

March

well.

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.

fare

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

The

according to estimates by Dun

22%

were

247

$5,000, there

sales

two

won

1958

local

the

and-Puerto

For the St. Louis bonds the group
bid 100.219 for a 2%%
coupon,

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-';;

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

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.

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

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

estimated

underwriting syndicate which

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

Cotton

according

past week.

occurred

ago

and

are

the high

the

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

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

U. S. Automotive

grain

markets.

trailed

Loadings for

cars,

Heavy hog receipts continued to

there

}

revenue

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

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,

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

such

year

remained firm.

was

actual

for

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

steel

equiv¬

week

(1930-1932 = 100)
earlier and 288.71

The

steel-

1957,
as

(revised)

capacity of 133,459,150 tons

duction 2,401,000

April

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

Investors

with officers

Sunshine

St.

Mo.—Mid
has
1828

Broaddus

principal erf the firm.

been

East

Briggs

Salle

Herbert W.

Pont

April 2 at
Briggs formerly

headed

his

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,

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¬

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

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.

(par

Proceeds—To

reduce

Denver, Colo.
filed

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

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

for

stock.

The

and

conditioned

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 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

Co.

Edison

Brockton

•

subsidiary; to

carry

inven¬

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

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,

(letter

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

named

—

For

the basis of

one

new

for 514

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

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.

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

are

offered

for

subscription

stockholders at the rate of five additional shares for
the

public.

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.

repay

MacCulloch of Vancouver, B.

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

$100

present

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

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

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

Jan.

Acceptance Corp.

—

share of Sea Products com¬
Proceeds—For working capital.
St., Boston, Mass. Underwriter—None.
for each

cent

exchanged.

stock

mon

•

Underwriter

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

both of N. Y,

tion of short term

stock (par $1)
for subscription by common stockholders

April 24
by

(letter of notification) 22,956

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.,

Price—$15.75 per
financing construction work
Underwriters — Lehman Brothers and
For

—

Co., Los Angeles, Calif.

(letter of notification) 100,000

Inc.

expire on April 22.

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¬

(letter of notification)

Feb.

machinery,

and

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

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

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.,

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

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

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,

•

of company.

(Province of)

British Columbia

•

Expected in

—

Cargo Coo| Corp.

Feb. 15 filed

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

basis

the

Bluefield, W. Va.

149,925 shares of common stock (par

offered for subscription

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;

March

Allied Resources

basis

the

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.

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)

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

Co.,"
Cleveland, O.; and Kidder, Peabody &
Co., New York.
Florida Trust, Pom
pa no Beach, Fla.

River electric Light Co.

basis

one

share for each

new

March

the

held

of March

$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

...-V

7 ,V

Florida-Southern Land Co.
11 filed 600.000 shares of

March

stock

(par

April

Fruit

Juices,

(Bide

(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

Trust

(Offering

(The

First

(Ottering

75.000

Inc.)

Church

United. States Leasing

$300,000

April 16

Gas
&

(McDonald

Co.)

Cer/tral

Illinois

Ltd.,
$45,000,000

Inc.;

(Bids

and
.■

/■>

Peabody

Co.)

Lincoln Telephone & Telegraph Co

(Bids

White,

Stevens

Witter

Co.>

G3.75C

Inc.)

Markets, Inc
(R.

Dickson

7'
:

Co.,

Inc.)

Western Nuclear Corp..
(Eosworth,

(Steven

•

April 17

100,000

Co.)

•

(P. W.

about $9,600,000

-*L

Peabody

(White,

Weld

Co.

and

Stone

Corp.)

Weld

Co,

and

Stone

Webster

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)

$6,165,000

(Thursday)

Co.

EDT)

common

debentures

Corp.,

invited)

a.m.

11:30

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

EDT)

—Debentures
$25,000,000

(Tuesday)

Southern Bell Telephone &
Telegraph Co
(Bids to be invited)

July 9
to

(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

Corp

1,000,000 shares

EDT) $15,500,000

11:30

(Bids

>___

Bonds

invited) about $20,000,0"00
I

April 23
Kidde

(Walter)

(Shields &

Midwestern
(C.

(Tuesday)

& Co., Inc.——
Co.)

Unterberg,

Towbin

Debentures

Paso

Paso Electric

$3,000,000

Instruments, Inc.-.

May 15

Co.)

200,000

Electric
''(Bids

Common
shares

(Bids

Co
to

—7—r—,

invited)

EDT)

Preferred

$2,00bOOO

"J1

Co
a.m.

October 1

(Wednesday)

about $r,500.000

(Bids

Bond*

(Bids

bfe

Boncte

invited)

$15,000,000

Light Co
to

'•

(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

255,813

Common

June 11

(Tuesday)

Invited)

(Wis.)

invited) $25,000,000

stockholders—may

Consolidated

Corp

$500,000

(Wednesday)

June

(Bids
and

Debentures
about

Portland Gas & Coke Co.^

(Monday)

426,988 A shares

$15,000,000

Bonds

(Bids 11

Equip. Trust Ctfi.
$3,585,000; "
'
.7

Film Corp

Bonds

$3,000,000

Georgia Power Co

Ctfs.

Debenture

a.m.

invited)

June

$14,500,000

invited)

Trust

(Bids

Bond*

EDT)

$2,550,000

EDT)

to be

Boston Edison

(Offering to stockholders—to be underwritten by Merrill Lynch,
Pierce, Fennor & Eeane and Kidder, Peabody & Co.)

and

June 5

EQUip. Trust Ctfs.
(Bids

Florida

Debentures

$10,000,000 of

(Bids

a.m.

$14,000,000^

invited)

:f;j

$20,000,000

Virginia Electric & Power Co.—

—.Equip, Trust Ctfs.

(Thursday)

June

Securities

;

(Bids to be invited)
$10,000,000

Chicago, Rock Island & Pacific Ry.

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

••;

Morgan

$70,000,000

Reading Co.

;______Bonds

Co., Inc.) $800,000

Swartwout Co.

(Moroney,

General Aniline

Debentures
Blosser

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
;

May 22

■

Ctfs.

--Debenture bonds

Baltimore & Ohio RR

Herold Radio & Electronics Corp

Supercrete.

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

(Bids

(Monday)

Noel

Boston

invited!

—

Hartfield Stores, Inc

(Monday)

EDT) $30,000,000

June 3
be

Wabash RR.
,

Common

Jackson

$8,000,000

Colorado—.

noon

(Bids

Common

First

be dealer-manager)

'/'*7"J*.* 7;

Roxbury Carpet Co

$8,000,000

Bonds
about

Telephone Co...

(Wednesday)

May 8

Securities **'

'•

•

Potomac Edison Co

(Thursday)

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

Bonds
to

(Bids

Inc.)

(Offering

(Bids

....Common

Co.,

Corp.)

125,000

Cincinnati Gas & Electric Co.__

Transcontinental Gas Pipe Line Corp..—Preferred
(White,

May

Securities

$50,000,000

(Frazee, Olifiers & Co.) >$190,000

Bonds

Webster

Transcontinental Gas Pipe Line Corp

Light

United States) $20,000,000

190,000

Bonds

.-.Common

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._

(Bids

Quebec Natural Gas Corp

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

$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)

Public Service Co.

___Equip. Trust Ctfs.
invited)

April 30

.Debentures & Common

Sullivan

Common

^ake Lauzon Mines, Ltd.__

Class A
&

page

(Bids

(Thursday)

April 29

Common

Washington

$3,900,000

Associated Truck Lines, Inc._

'o\

(Offering to stockholders—underwritten by
Dean

Arts, Inc.._

Common

Co.,

(Cruttenden,

300,000

Northern Pacific Ry.;

..Common

Corp.) $30,000,000

(Bids to

Belt

Alabama Great Southern RR

''■

.Equip. Trust Ctfs.

Kidder,

Harbor

Paul Hesse 3-D

226,820 shares

Boston

Wm April

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

For

(Reilly, Hoffman

National Lithium Corp..

77/*

Florida Steel Corp

(F.

stockholders—underwritten

(The

Cincinnati, New Orleans & Texas Pacific
(Bids

outstanding
—

operation;

of which 86,610

(

notification) 240,000 shares

(par 30 cents)

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 .&

$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\'

a. Common

Blauner'&

Cascade Natural

Common
28,611

Nyvatex Oil Corp
(Milton

warrants.

(Bids

Houston Oil Field Material
Co., Inc.

Corp.)

Stanley
Burns

—Common

(Monday)

Boston

Columbia

(Morgan

$250,000 '

Iowa Southern Utilities Co.___
'T

British

-Common

stockholders)

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

received

to 3:45 p.m.

common
—

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

Proceeds

(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.

Minneapolis & St. Louis Ry

Shop Rite Foods, Inc
(Firtft.Southwest

($1

par

1,537,500 shares

;

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

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

—

General Aniline & Film
Corp.r New York (5/13)
Jan. 14 filed 426,988 shares of
common A stock

—

Fall

Office

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.

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

•

The Commercial and Financial

Chronicle

Thursday, April It, 1957

(1726)

rate of one new

Continued jrom page

capital. Office—41 Stukely
Underwriter—Bruns, Nordeman &

for working
I

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

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.

filed

370,000

shares of

Des Moines, Iowa
common

slock

(par

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

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

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.

$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.

this company and

(letter of notification)

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

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

$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)

debentures due

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

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.

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

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)

unit.

Underwriter—None.

underwriter at par and the remaining
Alton Blauner as a finder's fee

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

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

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

stock

Price — To stockholders, $1.25 per
public, $1.50 per share. Proceeds—For re¬
tirement of outstanding bonds and working capital. Of¬

offered

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

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

•

area

Underwriter—Alester

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

(£/!)

(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

(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

Minneapolis)- is President.

Mississippi Power Co.
March

filed

$6,000,000

derwriter—To

(4/11)

determined

.•

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

the Yellowknife properties; and for cost

concentration

plant, mining equipment, etc.
writer—Gearhart & Otis, Inc., New York.

Under-

New

Brunswick

(Province

•

14 filed

tures
ment.

Proceeds—To

wick

Electric

Power

advanced

Commission

The

New

repay

;

•

Gas

Electric

Co.

the

for each

Lynn share.

Jackson

basis

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

bank

loan

($10
of

and
per

7,500

share).

shares of
Proceeds

common
—

To liquidate

$178,635; increase

■■

Montreal,
mission.
Co.

can

due
Proceeds—To repay advances from Ameri¬
Telephone & Telegraph Co., the parent. Underwriter

—To

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:

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

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,

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
'

•

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-

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

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

April

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.

1980.

Dealer-Managers—Paine, Webber,.
F. S
Moseley & Co., both of
Boston, Mass. Postponed temporarily.
Curtis

:• Quebec Natural Gas Corp. (4/17-1S)
March 15 filed $25,000,000 of first

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.

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)

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

common

the

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) /

•

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

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.

•

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.

first mortgage bonds due
Proceeds—For construction program. Un¬

April 1, 1987.

which

$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

$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

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

;

page

■

The Commercial and Financial Chronicle

Continued jrom page
1

.'■.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

—

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.

—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

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

debentures

vertible

April

due

Ave., Silver Spring. Md.
E. Jefferson is President.

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

offered

for

the rate of
of April

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

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

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

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

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

—

retire

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.

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¬

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,

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

the basis of one new share for each

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

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

•

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

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

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.

Co.

announced

Latter owned

West Penn

Metals & Chemicals, Inc.

United Artists

Power

was

vote

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¬

•

ferred stock series A (par $20).

^ .

America

178,646

filed

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

(4/17)
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

* 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-

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.

subscription
share.

warehouses,

Office

Steel

loans

proceeds of

record April 2, 1957
class B share for each seven class A

class

1957.

March 22

class

per

New York.

19, last year,

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

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

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,

Wrigley. Price—S2
velop and operate

poses.

March

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.

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)

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

its

stockholders of record April 8, 1957 the right to subscribe

'Volume 185

Number 5628

The Commercial and Financial Chronicle :

(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 &

for

Boston Edison Co.-

•*-

(6 5*13)

construction

•

^Bridgeiwrt Gas Co.
ApriL R it'

T}'

Nr.. •'

/„•

Brothers and Allen &

its5

during the first half of this

plans

Feb.

•

offering of

announced

was

class

financing.

Dillon,^ Read• & Co., Inc.,

•

pipe line in South ^Carolina

New

York,

plans to construct

Horner

Carolina Telephone & Telegraph Co.

March 11 it

Mason,

Inc.,

Feb.

1 it

;

Hudson

Gas

securities

new

Electric

■

Illinois

Corp.

this

w^as

refund

announced

bank

loans

and

for

13.

total

common

Light Co.

announced company
amount
if
$50,000,000

was

issue

and
•"

bank loans and for construction pro-

Telephone

*
.

*
v

•

■

(

General

Tire &

•

Rubber Co'.

..k-

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

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.

plans, before
to issue approximately $12,000,-

reported

was

repay

General

Proceeds

construction

March 18 it

Jan. 21
suance

-.-r

...

(6/6)^....
the

announced

was

and sale of

'■

' c

/.v.

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.

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

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

$15,000,000 of first mortgage bonds due 1987.' Pro-

ceeds—To

than

announced that the company

the middle of the
year,
(100 of

share$ of
basis; rights to

1-for-lO

'/Florida Power & Light Co.
sell

(S/2S)
r
3 ;
company plans to issue and

company

was

—

Pierce, Fenner & Beaner '
Kidder, Peabody & Co., both of New York.

March

finance

'Connecticut Light & Power Co.
Feb. 18, it was reported

privately.

Central

$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.

$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

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*."-

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¬

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

stockholders /; its 1957 construction
program, which is expected to cost

common

UnderwrHers

Feb; 27 it

Co., both of New York.

*.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

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

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

the

Corp. .arid'Halsey,

Mont

March 20 it
offer

its

announced

stockholders

the

intends to

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

W. F.

was

Power Co.

•ompany plans to issue and

quarter

bonds.

gage

Dec.

1957

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

determined rby competitive bidding.
Probable
Halsey, Stuart & Co/Inc.; Blyth & Co., Inc.
Kidder, Peabody & Co. (jointly); The First Boston

idders:
nd

orp.

and Coffin

Feb.

--*sar- +•■>

one

rust

certificates.

Inc.;

Salomon

Probable

Bros.

'■

dated

Feb.

'Chicago, Rock Island &

1, 1957 and due

expected

Cleveland
ov.

Proceeds

for

each

Paso
26

common

Electric
was

Co.

held

repay

bank

loans

York, acted
stock offering last year.

company

and

plans

issue

for

•

and

Proceeds

construction

(jointly).-Bids—Expected to be received
(EDT)

May 15.

in the Summer of

To^ rdpayrbank ioans -and for
constructiBdorwritor^-Tb be determined
by com-

bidders/ -Halsey,

Stuart

new

program.

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

exceed

6%.

done privately.,.
it

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,

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);

Fall approximately $25,000,000 first mortgage bonds, but

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/

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

new

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

«*....■•*

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)

Electric

Stone

it of $6,000,000 equipment
bidders: Halsey, Stuart &

Hutzler.

Probable

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-

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.
"... '
\ ' "

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

page

The Commercial and Financial Chronicle

(1730)

Continued

from

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. &

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

utilized, during at least parf of 1957. Additional secu¬
rities will need to be sold in 1959 and 1960, amounting
to

approximately

by competi¬

;

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

determined

Peninsular

approving

increase in~the authorized common

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.,

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

•

"a l-for-6 basis.

Proceeds—Together with

(probably privately),: to y

Pennsylvania Electric Co.
1/
12 it was announced company plans to issue and, 7,
$6,000,000 of first mortgage bonds., Underwriter-^ r.
.

sell

determined

bidding..

competitive

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

$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**

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

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

■

mortgage bonds or convertible
before June 30, 1957.
Underwriter—To be

debentures

writer—Morgan Stanley & Co., New York.

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

$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. /
'
/

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

Indianapolis

determined

—

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*"*

■

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

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

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

\
"

•

near

$4j.'
—To

was

Proceeds—For

Eastman

in
-

expansion

and

working/ capital.

Operates shopping centers. Underwriter —
Dillon, Union Securities &. Co., New Ycrk, for

—

two-thirds

Canada.;

issue.

Public Service Co.

Oct. 8 it

was

Balance
:

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,

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

States

Power

reported

determined

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

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

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.

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. * '
«.*.

portion of the funds

necessary to meet the

companies

Co.

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.

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.

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

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.

Volume 185

Number 5628 // The Commercial ami FinaveudChroniebe

(mi) -m
Radiation, Inc.
March

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

registration

expected

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

received

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

the

balance

Edison

Quinton,

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.

total

Co.

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.

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

;

ees

:;i

allowed

were

leave

work

line with

yesterday between 1 and 4:30 p.m.". that

A ir C o n iiHoning

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

conditioned

people

paying for . air..conditioning

And so, as more

-building

home.-

/•*'-"
put this thought in a nut-

shell, those who compete for

man-

power or consumer dollars will
jso.

at -

without
As

increasing disadvantage
conaitioning.

air

matter

fact

strongly

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

per

his

not air conditioned.
on

ords

its

represent. the

kept

plant

were

acutely

aware

the

nomic

motivation

behind

cision

install

conditioning system.

eco-

the decision is not made
primarily
because
an
air
conditioned iini

vironment

pleasant.

executive officer could

expenditure
His

decision

that

must

air;

operate

that

struck
of

.Washington
1953?

chief Federal employees
alone,

predicated

-;.
Operation
What

summer

idea

long

and
of

I-haye

Day

the

after day,

were sent home

pretty good
their, wb'rking
efficiency

before

reliable

does

air

Cost
to

conditioning?

which
save

Reynolds,
showed

seven

time out of

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

This

sell

central

Potential

think

year

•

about

systems

describe the

the industry sold

the

industry

quarter million

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

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

the

becoming
American

well
much

way

on
a

the
part

life

central heating.

Three With Mt. States
rSpeciRl to Tim Financial Chronicle)

DENVER, Colo.—Jerry E. Jump,
Ben

Lofflin

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.

installed.

were

thereby created.

The government has-completed
number of physiological psycho-

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

$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

cost

The

1956

175,000

bers to
and

suming

those

And at

-vate

business.

about

conditioners

will

conditioned

Do you remember the heatwave

justify the early

basis

into-

e
e*

air

that

not

were

lts Drafting and purveying Bureau

de-

central

I know

increaise in work: output

air

that

manpower are in general no dif£erent than those
confronting pri-

about

.°tve^ ^ previous summer after

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

addition to significant decreases

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,

$60 to $70 per

existing homes.
mate

know, there is rather hot bidding

rec-

Shawnee, Okia-

1.n/°rm.e5

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

man

hot

cost

has a recruitment and turnover
situation somewhat different than
the
other agencies.
Technicians

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¬

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/

may

Utah

•

was

of $100 of notes

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"-' ' ^

—

Machine Tool

was

reported

was

Power &

sell about

(jointly).. Offering—Expected in August
September, 1957. ',///////>• ;•■';■'■

Sundstrand

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

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

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)

California

20,' Harold

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)

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

addition to pro¬

this

Corp.
Hutzler; Eastman Dillon, Union Secu¬
Co.; Stone & Webster Securities Corp.; White.

rities &

.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-

for bonds may include:
Halsey, Stuart & Co. Inc.;
Loeb & Co. and American Securities

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

Virginia Electric & Power Co.

posal to*raise

Tampa Electric Co.

v':

(

•

Kuhn,

Co., New York, and Johnson, JLane, Space & Co.,

Savannah, Ga..
Bids

—

March 8 it

•

•*

connected
Securities

Club Build¬
-

;

The Commercial and Financial Chronicle

(17,32)

have elected two new

the

fund's fiscal year on Nov. 30,

reelecting
directors/of the

present

fund. /
-The
two

By ROBERT R. RICH

Harold

Cole,

torneys

Ronon, 1
of

Stradley,

Young, attorneys

National Securities & Research Corp. made
its forecast for business this year, as is its annual custom.
The

at¬
and

forecast then

partner

These

;

Four months ago,

partner of Cole,

Young,

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

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

The consumers'
of 119

FREE INFORMATION

PROSPECTUS TO
DEALER OR

FOLDER AND

and

NATIONAL SECURITIES &

last year.

domestic

The

RESEARCH CORPORATION

auto

This

record,

Corporate securities'

new

were

billion to $12.2 billion.

sion, upward

mutual fond

list

for

selected

National

expects

INCOME in the years

///•■/•.

,/ ,./

are()even

Selected

v
,,/

.•

open-end

\ Incorporated
J Income Fund

for
CURRENT

mutual

A merican

investment

iron

and

adjustments

holdings
1957.

fund whose
first

its

was a

the

first

quarter

the

;

./'/

•

■

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

each

available

from

prospectus

fund
your

Thh

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

securities

aod;|
,

Canadian' corporations,

/■*:•//

West

Penn

from

the

portfolio

dividend

gust

Delaware Income Z

expected

Fund Reveals

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

Initial investments include

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

sales

prior holdings in¬
3,000 Aluminum

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.

stock positions in

com¬

mon

the follow¬

Greyhound, Gulf Mobile & Ohio,
Illinois Central, Kennecott, Lig¬
gett & Myers, Lerner Stores, Mar¬
shall

Field,

National

New

Steel,

hawk,

Dodge,

Phelps

Chicago,

Rock

Island

Simmons,
Southern Railway,
Fruit, Walworth, Western

make

it."

free

Income

Delaware

Fund

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

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

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|.

Products,

investment

were

risk

negligible production of iron

mostly common stocks..// / V. /•/

Electric.

///;/ /////-•••■//..

Newcomers

ondue

second
v

power.

production, Canada has made brilliant

ore

industries

this

v12,500

Gas

Shares,

company

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

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- /

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

1955 rate.

asbestos

with $12 billions last

compares

cast from $11.5

'»

prediction of $22 billion corporate profits for this

It would still be

year.-

Investors

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,

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

for the longer-term

proximately $30 billion

'billion to $62.4 billion.

to 66.3

advances

Canadian Government study which projected the

said

services

■;

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,

■-<*?.

signs' of slackening, Mr. Bul-

/-.///.,/•:/■>

tremendous

is the postwar

economy

upward from

markets

well-informed, active board of directors:.;-'v/

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.

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

directors to

board, in addition to

the

Thursday, April 11,

Net assets of Canadian Fund, Inc., on March 29,

Mutual Funds

Philadelphia

meeting

Bullock Sees Great Canadian Growth

Wellington Fund Dirs.
PHILADELPHIA, Pa. — Stock¬
holders of Wellington Fund at the
annual

;

■=

INCOME

;Sw*,r

•

yield

FUND

**j

"the/ distribution Will
token,

•

Investing for
possible^

full quarter-year's return,

and

size of later

,s"«r

mutual investment fund of diversified

Free

of Pennsylvania

''*

board

not vindicative

Chairman "of

th^f/Vertientes^

and Cuban Sugar

payments."- The Au¬

••

Plantations, Inc.
•*v

•

the; risk// ;//

with

'•// /"•'*• "*•'!,

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

-the

Taxes,

the opinion of counsel.

stocks selected for investment

common

quality and income • possibilities. Mail
this ad for free booklet-prospectus to

PROSPECTUS

REQUEST

;.;//•

' v

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

•

National

Camden 3/N. J.

•

Distributors

/i.t

Delaware

v- J *'

Fund

•''

objectives

Prospectvs

upon,

request

Xokd, Abbett & Co. ./

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

$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.

the

end

report

for

March 31,
the preced¬

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

senting 3.6%

$8,245,222,
of

net

Bonds and preferred

.2%

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

and
cash

Governments

items

sented

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

national Nickel Ltd. for

held;

total of

10,000

shares of American Gas & Electric
for a total of 20,000 shares held.

Portfolio eliminations included:

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

awarded
watch

his

Elliot

the 25th

has

engraved

association

the sixth to

comes

Longines

the

Company. V

Secretary

5,000

French:

Smith

Kline-

Laboratories,

and
4,500
shares of Owens-Illinois Glass Co.

—4% convertible preferred.

Among

;

portfolio

funds.

vestment
Loeb

portfolio;* 4,300 shares

leaving

the

Co.

has

and

56,700

been

elected

Ellis

Anderson

have

office

Edward

were:

tion's

net

asset

value.

The

hext

two

largest investment categories
were public utilities with
$28,607,286

investments

representing

20,000 shares' of Dome

DENVER,
Amole

Colo.

now

Mountain

States

poration,

Denver

was

Company of New York
of

and

after

statistical and

ana¬

Frank

affiliated

with

Securities

Cor¬

Building.

formerly with Colorado is

Management Corp.

your

investment deafer

PHILADELPHIA 3, PA.

This

Co., 231 South La Salle Street.

North Western
the road had

about

poses

1956

report states that as of the end of last
operating loss carry forward for income tax

$16

million

that

will

offset

future

would otherwise be taxable.

INC.

r
1

income

therein

Plate

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.

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

.....

Delaware

Pacific...;

Hudson

Nashville...,

Erie

Louisville
"Soo"
Missouri

Pacific

Reading Company..........
Seaboard Air

amor¬

against the
ac-

Line..;.'....

pf Dcfpr.

—

Tax Deferral

ota I

jfota

Reported Net"

Per Share

The other

source

Lacey,
tional

Tex.

Horth,

tax

Incorporated,

the

as seen ,

Co.

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

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

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

0.94

6.65

•

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

;

R....-..,

$4.79

adjustments^for prior

respective net incomes would

(Cr)

.....

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.......

New

Deferral

741

Reading
-

7>>:-.*

$104,050
12,960
34,854

Paul

$6,454,000

practice

firm

Building, has been changed

to Houston Bond

Forma,

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

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

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:

investing

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

C & E. I.........

factor.

source

applicable.fi TJncier the ICC

Group

excess

Net Inc.*

credits, however.

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
/

mem¬

Federal

Rock

are

further

Reported

St.

income

bers

tabulation showing that, due to

Chi.

rlet

Co., 139 West Main Street,
change.

Tabor

1961, it does Seem to 1
~
■/«',

year

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

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

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

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.

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

He was formerly
Stanley Swiech & Co.

with

of Business where he received
his

With Mountain States
•

CHICAGO,

Chronicle)/

La Salle Street.

&: Research

B.S.

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

members

Insurance.. Company
since 1953, specializing in the an¬
alysis of public utilities securities.

Secretary of Over¬

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

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.

manager of the Public'

Corp. is
sponsor and manager of the Na¬
tional Securities Series of mutual

National

were:

was

western

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

2,275

held; 5,000 shares of Inter¬

20,000

Potash

total

Plourde Appointed By
Nat'l Sees. Research

the portfolio.

Among new additions to the
portfolio during the first quarter
were:
12,000 shares of Metals &
Controls

stocks made

miscellaneous investments the

Chemical

investments representing 10.6%' of
net assets.

to¬

held;

net asset value of

Houston Light & Power for
tal
of
21,200 shares

To $228 Million
A total

Bristol-Myers for a total
held; 5,450 shares

:•*.

* 000

omitted.

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)

The following

Indications of Current

latest week
week

Business Activity
Latest

Week

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

(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.

Apr.
Apr.

;

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

16.000(

15.800c

15800c

14.000c

13.500c

25.000c

24.000c

101.000c

98.375c

100.7 oOc

Apr.
Apr.

Group

—Apr.

93.08

96.85

96.09

96.54

106.39

101.47

109.79

99.52

99.36

99.20

108.16

9b.85

96.85

96.54

106.39

89.92

89.64

101.47

95.32

95.47

105.17

97.16

97.00

107.09

97.94

106.92

3.25

"
"Apr.

—

90.40

101.47

3.96

3.66

3.95
4.42

Raflroad

Group

Utilities

Public

* a }!!.'>

„

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

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

sales

Other

Total sales

initiated off the floor—
——-3

—

Other

sales

Total sales

—

DEALERS

EXCHANGE

Odd-lot

—

sales

Number

SECURITIES

dealers

■

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

—

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

£112.344

£114.534

13.500c

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

•

„

$35,000

$255,000

$35.000,
$267,583

>.5WUC

36.470c

33.000c

33.500c

-.(>9oC

$98,000

$101,038

.$103,000

$1.70000

$1.70000' *

$1.70000

$ • .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

-74 (»00c

64.500c

$2.25

of Feb.

EXCHANGE—As

STOCK

firms

Total

extended
hand

Total

value

customers———,,—r-,W
in banks in U.

value

Member

shares———

listed

3.—

balances..*.

credit

free

listed

$2,763,440
34,672
322,475
'
828,127
207,719,493
101,316,654

balances__u— -4

debit

net
to

and

customers'

Market

margin accounts— ;

carrying

customers'

Cash

(OUO's omitted):

Member

borrowings

bonds.

S. Govt, issues.^
other .collateral—

*$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

FORECLOSURES—

ESTATE

REAL

IN8UI

LOAN

AND

SAVINGS

FEDERAL

ANCE

CORPORATION—Month

RUBBER MANUFACTURERS

Dec..

then farm

and foods—

**Source:

National

Coal

2,403

203,830

197,500

153,910

418,670

501,530

384,130

554,670

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

Apr.
Apr.

2
2

116.9

117.0
89.1

88.5

104.1

103.5

84.7

80.6

76.3

125.3

121.2

Apr.

84.2

Apr.

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

——————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.

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

(per

pound)—

(per

YORK

Tread

products

cent

ingot

16.000c

15.800c
£113.150

ion»

pound);—-i
/"Nickel' ______—l__.___i__i._-1
Magnesium

NONFARM
.

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

(per ounce)—--—1_—

refined

Not Avail.

Not Avail. '

Laredo

Tractor-Implement Tires (Number of)—

Commodity Group—
Farm

•_

pounds).—__

pound), bulk

Production

Total sales

All

•

pound), boxed Laredo—_—

tCadmium,
gCadmiuhi

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

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

(

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

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—-*

996,35 1

Member borrowings 011 U.

Odd-lot purchases by

Round-lot

■

(DEPT. OF COMMERCE):

COMMISSION:
purchases)—t

Dollar yalue

Customers'

Mar.

-■

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'

;-■>

■

February..^-—634,366

47,053

COM-

DEPT.

—

2„_—!

Mar.

spindles

Credit

ODD-LOT ACCOUNT OF ODDSPECIALISTS ON N. Y. STOCK

AND

month

Copper—
Domestic

STOCK TRANSACTIONS FOR
LOT

LINTERS

AND

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

: '

995,110

836,210

Mar. J®

Bales

Short

158,900

the floor—

purchases

•

1,388,740
212,910

1.040.610

Mtt1,
Mar. 16

——

Other transactions

2,000

Platinum,
„

.—.'

102,871
127,967

S. A.

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)_____

(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

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

3.37

3.97

3.66

' 3.79

3.95
4.42

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

•

——

Copper production in U. S. A.—
Ciude (tons of 2,000 pounds)

'■

•<■?...

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

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

of January:

exports

(net

MINES)—

(BUREAU OF

EXPORTS
S.

Consumed

Export

Utilities

122

$44.17

Lead (New York)

Public

,99

export

321,406,000

.To North and

503,000

11,867,000

and

(barrels).—

stocks

all

Month

quotations):

Electrolytic copper—
Domestic refinery at

Railroad

290

231

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)

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

—.

•

254,494,000

output

oil

crude

output

Benzol

COAL

7Vv>(:

construction
and municipal

Public

Ago

riui

•

V:.

gasoline

Natural
'

>V:

(barrels of 42 gal-

17,333,001

'V■v'.'-','V

<,.>>,■

December:

Total domestic production

ENGINEERING

Total

INSTITUE—Month L

PETROLEUM

AMERICAN

Domestic

freight loaded

ENGINEERING CONSTRUCTION
NEWS-RECORD: ■-'"V
U. 3. construction
Private construction

Year

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

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
'

or,

Ye*r

93.8

*90.6

$91.0

Apr, 14

Equivalent to—
Bteel ingots and

Month

that date,

production and other figures for the

cover

Dates shown in first column

month available.

month ended

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

year.

New York expects no
serious downturn this year due to

0£ alb but

reported adequate and steel

now

strong

fiscal

are

stepping

public

h«f

many

longer

persons .expected.;

all

types

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

the

gain, steel out^;

check-

March

year.

:• v

months last year,
to F. W Dodge tabula-

of-according

t",..i ", tions.

■■■'•

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

133 South Seventh Street.

°r

(special to the financial Chronicle)

Roanoke Building.

mh—

aPwa?^dlJi

text

appearedin

Chronicle, March 21.]

'Within

our

conception

With A. C. Allyn
'(Special to The Financial Chronicle)

*oai

hold

n^i,lc.frv.nr,t
,

•

^. prosperity as

temporary periods of;
i, If we define any conp
^
°nary as
Tt

ISv

----

firms

,,.

avoid

look

bee^a

1..

sales*

ji..

.14^'..

major factor in
'

-»vri

or;-merely sLotwirig-the
which inventoties build

rate

mand

for

economy,
including services reduced.
trade rather than industrial-

cufrent

-41

4% ^increase

;

lohg

the scheduled rise
to 1957 had already

1956

:—

run—are not the

same

tus—
thing

Exchange
nixcnange

1Qf\7

Quarter of 1957.

QnV)intrn

so adjusted

our

thinking,

fVimr

deproduction is

already scheduled
annual

rate,

but

$38 billion

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.

need

for precautionary stocks.

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.

with
v

R
REGULAR

j?eaerai

QUARTERLY

42Y2C

DIVIDEND

complete line

storage batteries.
A

w, rresspnen &

of outomotlve and industrial

BOSTON, Mass.—Emily D. Ber-

NOTICE

DIVIDEND
share

per

Common

Stock,

declared

by the

was

Board of Directors

remainder

1957.

highly regarded

survey,

Strength oV Final Demand

another
consum- '

son

"The slippage in industrial output—moderate though it is—is the

y.®ry

„.

been

last

month

last

October

from

plateau

the

to'^ rates. By practicaUy any cnteiiom
mont^.over-all; business inventories at
Feb- Pf^sent are neither oppressively
,.

held

adjusted,

steady

cept in December when it
T„

In March,

ex-

was

147.

leveled

and

off

extent

that

on-

season

individual

to carry

out

adiustment while over-all demand
is high, the possibility of a downspiral

cbances

for

justment'
pact

remote

are

slight

enhanced.

the

and

'rolling

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

production

other

items

prob-

ably will be insufficient to offset
these
,

losses,
.

downturn
is

likely.,,

...

and

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

71st Dividend Declaration
The Board of Directors has declared

terly dividend of 25tf

per

quar¬

the outstand¬

ing Common Stock, payable May 10, 1957,

stockholders of record April 19, 1957.
Since 1936

Schenley has paid

cash dividends

its stockholders

totaling $111,441,589.

a continued high
expenditures by each of

and

Lewis S. Rosenstiel
Chairman of the Board and President

Directors has
dividend of twelve

one-half

cents

(12^c)

per

the Common Stock ($1
Value)
of the
Company,
on

dividend

(25c)

cents

per

twenty-five

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

TECHNICOLOR, he.

in-

when normally both should be inOther
Uther

Industries, Inc.

dangerously unbalanced

nor

«p0

ward

.„

automobile

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

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

(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-

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

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

is still insistent.

and

•

all

■

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—

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

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

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.

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

months

about 5%

ernments

on the rise. Over-

budget outlays;in the

eight

ous

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.

three

are

payable April 30,

stockholders

the

Exchange Instruc¬
May 19, 1953. These

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 &

that

gJ V^\||

million
days

Commercial Procedures

C.—This

As: in

"temporary" program

so-called

aggregate
billion.

and

plus

this

was

foreign

sales

$750 million.

...

"temporary"

higher rate of taxes or any new

porary

five-

of
construc¬
gets on to the

six-year program

one

once

banks

States

United

are

by the

Pete

—

Drucker—Harper & Brothers

New

York,

(Cloth)

—

$2.75.

with

Businessman Looks at the Libera

Arts—Clarence B. Randall—Th.
Fund

not

scheme

circuitous

This

Years

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-

accordance

will be a four- or a

exactly

subsidy.

Importers

Commodity
Credit Corp. The foreign cur¬
rency
purchase
price is de¬
posited to the account of the
United
States Government in

"temporary"

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"

pay

outright

Agriculture:

ing out Title I sales.

"selling"
farm
products
abroad for foreign currencies.

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

them.

pretation from the nation's Capiftat

mittee

enacted, the program

Congress

enjoin

they

"Normal

It was in 1954 that the
ministration conceived,

courts

[This column is intended to re
fleet the "behind the scene" inter¬

to sustain the
resemblance
commercial transaction. In

the

and

over

farce that it bears a

pattern followed

$4.8

paltry

them

not

official*

that antitrust

them

Federal

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

$10

of assets, shall

for not less than 60

look

can

business

or more

Jtbe held

some

requirement

that all corporation mergers re¬

WASHINGTON,

backing,
in

pass

year

certainty,

House

will

this

sulting

A. C/ Cv

Hi/

xJL f

Capital

from the Nation'i

;

White

there

form

Behind-the-Scene InterpreUtion*

almost

view

•

the other hand* it is eon-

sidered

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

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

commodities

rM.

give

They

have

they
and

picked
if

them

and

up
not

years.

tried to
of them for

can

store
what

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¬

billion addition to this

libraries

ful

abroad

make

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,

emnly
and

tinder
;

quoted

"Agricultural

this

Development

which

the

Act"

give-away

fruits
so

of Agriculture

the markets and

any

to buy

commodities,

and

vegetables. It
and

even

reasonable,

indicated.

give away

farm
logical

ISutz
;

and

sol¬

carried out, permits the Depart¬
ment

committee

that

Trade

Assistant

committee,

the

assured

the

tiim,

the

Agriculture,

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

ments

. •

"* *

satellites
hower

$2.9

Treasury

The cost

of shipping

colonies. Mr. Eisen¬

prohibition

this

satellite countries with

ing the

American

free

lost.

little

His

notice

There is

(cost to the Treasury) of

wanted

stricken. Bill Knowland wanted

farm

did

fight

in the

products.
get

newspapers.

little argument about

this in House committee, but not

agree¬

nearly

Labor

NOT

battled.

The

approve

this

the

proposal

bobby
TV
a

soxer

over

Life

and

ox.

how hard.

about the $1.3 billion additional
which
House

scheduled

were

committee

for

approval.

•-

the

million
over

American

million
of

freight,
$1% billion. *

the

plowed

"economic

of the

Life

Insuran

request;

"Life I

economic

but

—On

request;

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

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

little

$61.5 million of

(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

•

selves.

Books"—On

$221

rightT back

—

Fashion Park

into

Wisconsin

.Indian Head Mills

How Spent

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,

amounts

lated

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,

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

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

pany

large trade organization

panting

Industrial

Antoni
N.
Sadlak
(R.,
Conn.), a member of the Ways
and Means Committee, and for
is

Implementing

Rep.

Fif¬

730

Growth and

Wiley

New

Americar

N. W., Washing¬

N. Y.—$7.50.

gimmick.
Another

—

Fourth

to retain the bar against bolster¬

the

into

"sale"

commodities.

the

entered

involving

billion

has

currency

to reduce

vote

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,

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

biggest

foreign

Treasury-made market.
Secretary

Little

and U.

say

"mutual aid" colony.

Agency employees
housing U. S. military

for

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

months

for

held

words,

casting

drive in

for escapist

5, D. C.

Fluctuations,

is
enormous that

tremendous

■

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

there

gets

acquired

problem

proving to be so

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

equally

the

of the
Confederate States of America.

United

the

and

is getting
subsidy

big

this

housing (that is another story),

unsound than war bonds

countries.

This foreign currency

picked up in current
price-supporting operations can
be turned over quickly to for¬
modities

simply

foreign

the first place,
are
probably y no

loans

generally engineering
and mixing in the busi¬

ness

Since

is plow¬

rency

Foreign Currency Uses

become.

this

lot of people on

that purpose.

for

S. Government

add

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

now

inconvertible

the

Mighty Mouse, defender of the
Moslem, Hindu, and other faiths,

then get the
impression of how

did

debate

clear official

and

the

Nowhere

economic

"loans"

tak¬

substantial foreign deposit

ing

payrolls have fun spending
when they go abroad, playing
Santa
Claus, fairy godmother,

away anyway.
*

lion

planned expenditures, consist of

shipping

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

—

out

commodities and to boot

for

rency

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

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

Buster?"

conscience of
undoubtedly

the

salves

only

bureaucracy,

thing-has

the

Furthermore,

V-.

-''j

Telephone
HUhbard 2-1990

Boston 9, Mass

Teletype.
BS 69