Full text of Commercial and Financial Chronicle : April 17, 1958, Vol. 187, No. 5734

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OVER-THE-COUNTER MARKET FEATURED IN THIS ISSUE

l. K
i Y
OF MICHIGAN

U' "»v

•

APR

18'iS:3

BUSINESS ADMINISTRATION
LIBRARY

Reg. XT. a. Pat. Office

Volume 187;

Number 5734

EDITORIAL

„

New York 7, N.

One

of the

oddest arguments now
being em¬
ployed-in support of a massive program of pump
priming, tax cutting, credit tinkering and the

School of Business
Administration,
University of California, Los Angeles, Calif.

Former Economic Council advisor
hower criticizes dilatory

reasoning
costs

see

runs.

risks

in forth rightly

expenditure

business

soon

sense

risk

soning. One of them is that

our

told.

we are

such

when

evidence whatever to lead

to sup¬

one

either that the dictatorship in Russia is go¬
ing to collapse or that the leopard will presently
change his spots—or cease his propaganda efforts,
pose

troubled

history

parts of the world. Neither does
careful reasoning give any assurance
Continued

dealers

act

period

recession

full

serves

invento¬

Unwise

Labor

productivity

expan¬

rises

and bonds.
two
or

;

ship of state gets refitted

and sets
for another journey into the
unknown seas of economic expan¬
course

securities have
can

the Over-the-Counter

in turn, only
be dealt in, the listed,

Market.

Both

of those

are

Dominant Factor in Nation's Economic Life

on,

it would be a mistake for
Government to step in

Because, however, the sales on security ex¬
changes are published in all the major news¬
papers, and because our language is full of such
phrases as "Wall ? Street closings," "Dow Jones
Averages," and "heavy trading on the Big Board,"
we
are
inclined to forget that the Over-the-

Neil H. Jacob*

Federal

with strong

economic stimulation. If government pre¬
maturely seeks to end a recession, it will merely per¬
petuate the maladjustments of the boom. This is the

These

can

While these readjustments are

going
the

everything

designed to do two things: (1) to
provide a meeting place of buyers and sellers
where securities can be traded at
prices fair to
both, and (2) to provide orderly markets sensitive
to day to day economic variation.

the price level is halted, or at least
brought to a slow creep. The whole

sion.

market economy.

places where they

markets

jobs once more become harder to
get and worth holding. Inflation of

There is a price
be bought or sold
—from a grain of radium to the
Empire State
Building—from a penny stock to millions of acres
of land. Every day
literally billions in assets
change hands, and a good part of all this vast ex¬
change is in marketable securities, such as stocks

employment and
an inflationary boom,
1956, and the first half of 1957,

Excessive

liquidated.

We live in

at which almost

in the future.

sion programs are trimmed. Business
management becomes more efficient
in a period of narrower profit mar¬

gins.

dend payment records ranging from five to 174
years.

page

business
purpose.

are

•An

Federal tax-

resolutely against inflation should

growth terminating
the years 1955,

useful

ries

the

implicit as¬
sumption that the nostrums being,
suggested
really would prevent the development of a deeper
and more prolonged recession —
regardless of
what the long-term effect would be. Of
course,

Cobleigh
illuminating analysis of some
of the more than
approximately 19,000 securities quoted
or traded each business
day. Study includes a long list
of common stocks, available to the investor
only in the
Over-the-Counter Market, with umnierrupted cash divi¬
provides the reader with

prolonged

general

struggle against

come for decisive,
Jacoby presents a

ahead of inflation and

recovery

economic

adverse effect of New Deal nostrums arrive to
furnish the Kremlin with better ammunition than
it now has. Another error lies in an

there is

placing

reappear

the Kremlin type of state
capitalism and aggres¬
sive imperialism is a
strictly temporary affair,
which would no

longer be with

being able to

Two basic fallacies underlie this
type of rea¬

now

111 terming the Over-the-Counter Market the most domi¬
nant factor in the nation's economic
life. Dr.

program

urgency to
its former

resumes

exaggerated rate of activity,

Enterprise Economist

Eisen¬

after pointing out: (1) dangers in
timing governmental intervention; (2) seriousness of
this downturn
compared with those of 1953-54 and
1948-49; and (3) desirability of taking a calculated

After

rather

By DR. IRA U. COBLEIGH

present recession

four-fold easier credit and "unorthodox"

world, so the
We must, therefore, at whatever
with

Dr.

action.

President

judging the time has

anti-recession

prompt

countries of the

move

that

response

Copy

—Vast, Vitial, and Voluminous

By DR. NEIL H. JACOBY*

propaganda
machine. One of the
leading charges the Kremlin
is
constantly bringing against capitalism, so say
our economic
interventionists, is that it breeds
devastating depressions- If now we enter into a
prolonged period of high unemployment and gen¬
eral economic
distress, that fact will be used with
damaging effect among the under-developed and

The Over-tllie-Counter Market

Dean, Graduate

Lord knows what else is the
plea that we must at
all costs avoid
feeding the; Russian

so-called neutral

Price 50 Cents

Program to Speed the
Return of Prosperity

As FFe: iSee;v

Y., Thursday, April 17, 1958

by Dr. Jacoby
League, Beverly Hills,

Loan

Continued

address

on page

before the United States
Calif., April 11, 1958.

Savings

Continued

page

SECURITIES NOW IN REGISTRATION—Underwriters, dealers and investors in corporate
are afforded a
complete picture of issues now registered with the SEC and poten-

securities
•

tial undertakings in

our

"Securities in Registration"

starting

Section,

State, Municipal

70.

page

and

U. S. Government,
State and

Municipal

Securities
telephone:

IBs

UNDERWRITERS
and

DISTRIBUTORS'

Public

COPIES OF OUR

Bonds and Notes

IIAnover 2-3700

Housing Agency

"atomic energy
INVESTMENT

CHEMICAL

review"

SECURITIES

CORN EXCHANGE

BANK
BOND

DEPARTMENT

30 BROAD ST., N.Y.

THE FIRST RATIONAL CITY BANK

Burnham
MEMBCRS NEW

and

YO«K ANO

15 BROAD STREET, NEW

Company

•

014-1400

Bond

TBLETYPt NY \-22tl

Net

Distributor

Members

120

T. L.Watson &Co.
ESTABLISHED

Dept. Teletype: NY 1-708

Active

Dealers,

Markets

Banks

New York Stock

1832

Stock

Exchange

Canadian Exchanges

CANADIAN

Exchange

STREET

NEW YORK 4, N. Y.

MONTREAL AND TORONTO

Goodbody & Co.
MEMBERS NEW YORK STOCK EXCHANGE

•

PERTH AMBOY

115 BROADWAY
NEW YORK

1 NORTH LA SALLE ST.
•

■

coast

coast to

CHICAGO

,$250,000

the

3%%
Due

BANK

•

Province

Municipal Bonds

Quebec

for California's

Debentures

September 15,

1966

Expanding

(

PayableTn United States Dollars
Price 96Vz

Teletype NY 1-2270

DIRECT WIRES TO

Capital

DEPARTMENT

25 BROAD

BRIDGEPORT

Chase Manhattan

Exchange

Stock

City of Quebec

SECURITIES

offices front

Brokers

Commission Orders Executed On AH

DALLAS

York

Maintained

and

CANADIAN

Members

<SouMlW€4t COMPANY

New

BROADWAY, NEW YORK S

•

FIRST

THE

Harris, Upham

OF NEW YORK

Dealer

American

REQUEST

DEPARTMENT

AMERICAN STOCK EXCHANOCS

YORK 5, N.Y.

CABLE: COWUWNHAM

Underwriter

BOND

ARE NOW AVAILABLE

to yield 4

Economy

% %
MUNICIPAL BOND

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40

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Teletype NY 1-702-3

WHitehall 4-8161

DEPARTMENT

Brntk of America
NATIONAL

TVVVno s ASSOCIATION

The Commercial and Financial Chronicle
2

Thursday, April 17, 1958

(1702)

For Banks,

The

Brokers, Dealers only

Security I Like Best

This

week, a different group of experts
field from all sections of the country

A continuous forum in which, each

Try "HANSEATIC"
We take

in the investment and advisory

participate and give their reasons for favoring a particular security.

pride in the abil¬

contacts.

lems.

■

Texas

San Antonio

B\'

Tex.*

(pajgd~2)T^

•:/

'' '

agement's abilities and . money-

Frigikar Corp.

kept close control over its costs:-

Bought-—Sold—-Quoted"

=e==i

Texas'

young

Members New. York Stock Exchange »'

economizing whenever 4it could.
Remco,< for example, now makes a habit of making; its own. future,
corporation which many parts formerly bought from The stock is traded in the Over-'

American Stock Exchange

Members

security I like best is the
common
stock
of a small and
The

,:y »

Hopkins, President First SouthColumbus, Ga.;

making policies. The management t , eastern
has continuously and ^carefullypage 2).^>-.

Louisiana Securities

An-

derson, -r Vice-President,
Muir,
Investment CorpSan 'Antonio,

man-'HomerInsurance-£o.—W. Cabell

jfostered by, "luck," but by

D.F.ANDERSON

to take ad¬
vantage of our nation-wide
private wire service and'
prompt
service in your
Over-the-Counter
p r o b- ;

nor

they to be regarded, as an offer to sell the securities discussed.)

Vice-President, Muir Investment Corp,

be,

(The articles contained in this forum are not intended to
are

Alabama &v Z

:„i-

Their Selections

Frigikart Corporation—D,
•

ity
of
our
large and
experienced
trading de¬
partment
to cover an
extremely broad range of

It will pay you

Week's

Participants and

Forum

19 Rector St., New York 6,

7'? •

N. Y.f

NY 1-1557'

HAnover 241700 V

New Orleans, La.» Birmingham, Ala.

;

Mobile, AI«.

■:

Direct wires to:our branch- offices

New York Hanseatic

Corporation
Established

American

1920

Member

Associate

Exchange

Stock

Broadway, New York 5

120

Teletype NY 1-40

WOrth 4-2300
BOSTON

Private

CHICAGO

•

PHILADELPHIA

SAN FRANCISCO

•

to Principal Cities

Wires

anc* of this saving 10%vis being £;V president,* First Southeastern Corp.
passed on to customers^through : v".1 v , : Columbus Ga.; *.
the direction of a new manage- unit price reductions.
,
Members New York Stock
ment, Frigikar Corporation beThe products the company ^
insurance Comoanv
came the
successor to a partnermakes are competitive in price Home insurance Company . . >
ship business created in 1949. At an<* quality, and are needed and: . j have selected Home. Insurance
that time the company produced wanted by many people, with a Company as the security I
like
a
few parts for, and completely vast market'remaining
to be best because it combines' the adassembled and distributed, several served.
Current orders by the vantages of a good quality income
stock
different
models
of
under-dash way, are substantially ahead of- :
. *>•■
<fYvrk with the
with thn
possibility of
and
trunk-installed
refrigerated those on the books at this time
subs t.antial
air conditioning units for automo- last year.
......
capital' gains.'
biles and trucks. *
The aggressive policy of product ■
Tliis company
The
business
was
profitable diversification through research,
is
105
years
from the start and the company merger, and acquisition of excluold and has an
quickly established itself as
a sive manufacturing rights is opennbro k e n
leader in its field. Each succeeding mg UP still other huge and un- .
r dividend
rec¬
year
the current year's newly tapped markets,
ord going back
engineered, r e s t y 1 ed, and imAs an example, the company
85
years.
At
proved models have produced has iust signed an exclusive conits present
greater sales and larger per share tract to manufacture, on a very
price
of
ap¬
profits than those of the year favorable "cost-plus basis, a new
proximately
before.
'
tamper-proof fuel meter device
\ 41, the stock
About midyear 1956, through an which
trucking and leased car
yields 5% and
exchange of common stock, the concerns can install on vehicle?
is- selling at
company acquired as a wholly- to
prevent overcharges through ;-fW. a e
op ins
only 50% of
owned subsidiary, Reliance Engi- bill "padding' .in connection with ... ,
neering and Manufacturing Co., a gasoline purchases by drivers or its liquidating value. It appears
San
Antoniocorporation better lessees. While the marketing of to fit particularly well into the
known as REMCO, which is the this meter is still being pioneered, present1 market situation
as the
of course.

manner,

Incorporated in 1954, and under

JAPANESE
STOCKS
For

Call

-■

SCRIP

Since 1917

„

^fCpONNELL&fO.
Members

York

New

Exchange
Exchange

Stock
Stock

American

BROADWAY, NEW YORK S

120

TEL. REctor 2-7815

leading

stainless

steel

This

in the Southwest.

American Furniture

Life Insurance Co. of Va.
Commonwealth Natural Gas

servation of developments.^ From
a profit standpoint, this device
could become the tail-that-wagsment, milk tank trucks and other the-dog.
stainless
steel
products, usually
Plant expansions and further
under contract for a major com- merger possibilities on the horizon
pany.
offer promise: of- even greater
The merger was a good one for product diversification and profit
both companies. It enabled Frigi- progress.
Remco, if expanded,
kar to gain independence in part could
take on a great deal of
from seasonal product disadvan- business it now must defer or turn
tages
and
to
add stability to away, Enlargement of its plant
earnings. To Remco, which oper- is being- compelled by popular
ates on a
"completed contract" demand for the company's servbasis, it gave ample cash resources ices-

LYNCHBURG, VA.
LD 39

TWX LY 77

-—5-2527—

Private

Wire

New

York City

Opportunities Unlimited
IN JAPAN
Write

for

our

Monthly Stock

Digest, and our other reports
that give you a pretty clear

picture of the Japanese
economy as a

whole.

Nomura Securities Co., Ltd.
61

Broadway, N^w York 6, N. Y.

•Telephone: BOwling Green 9-0187
This

not

offer

solicitation lor

orders for any particaar securities

current bills while finish-

pay

ing long-term projects.

1957.

Plow-baek

df ""earnings
Nevertheless,

crease

stockholder benefits on a
basis as the company

per

demonstrates ability to make more

kept

STREET

and more money,-—:

liberal

■larger

steadily

relation

climbing

the

market

New

The

—

stock

for

sae™^S'

™

Inc.

Yamaichi Securities Co.,

Ltd.

Tokyo, Japan
&

Brokers

111 Broadway,

Investment

Bankers

N. Y. 6 COrtlandt 7-5680

Burns Bros. & Denton
INC.

.....

Street, New York 5, N. Y.;

37 Wall

■

•

'm.
*

Underwriters—Distributors:
Dealers
Investment Securities

Canadian and Domestic

MONROE AUTO

EQUIPMENT

BOUGHT —SOLD

Late Information

♦

M0RELAND & GO.
Members

Midwest Xitock
Detroit

1651

Stock

Exchange
Exchange

Penobscot Building

DETROIT 26. MICH.
WOodward 2-3855
Branch

Office—Bay

DE5T6

City, Mich.
-I?

ASJ

000^00^

nnri

what

can

ex-

ings, has tended to move upward

against the trend of a generally
declining stock market.
In

sum

this ;stock

for

The fire and casualty insurance
underwriting business tends to be
cyclic since rates are adjusted pe-

Over-the-Counter

ti,

Quotation Services
for 44 Years

"odlcally
refle^ the profit-or
l"33 exPefience oI thf ;ndutstry-

why I call Frigikar Cor- speculative stock buyers vvho are
poration
"thp wnritv T
yeis
^ At present we appear to be at the
Uk™won common the security I wllhng t0 look forward 12i to .24 botfom of the c£cle since losses
months, because I believe that, on ,n the past five years, particularly
Vwi uViaV,
has.,had the company's merits and if prof- in the past tw0 are about the
li •*
1ts
"J,
appears hkely, the heavjest Gn record. It would seem
S"'^ a" adYer.se business stock should continue to gain 1 in that an
rd revision of rates
S long enough price. My confidence rests chiefly t0 reflect thi immediate past exattest rS
reliably that the
evidence that this interesting
*
AithnnoV.

National Quotation Bureaa

that

nationwide

reasons

Liquid

Exports—Im ports—Futures

DIgby 4-2727

;

•

common

Refined

has

-stock

a o7i

■

pected to do—not for what it has
done. And thfit brings me to the

SUGAR

York,

Affiliate

.These reserves are of course inyested in marketable securities,
earnings from which accrue to the
stockholders. Thus marketable

Dl!tnbU"Tv. haXf been dealer following. It's market price, n^Jed to capita? and '^rolus ^f
year than
the year supported by earnings and in an- «?
and-surplus of
I
ticipation of even greater earn- »2W.37l.00°->

But, all this is history. One buys
a

—

.During

each

More.

NEW YORK 5, N. Y.

Raw

affected by general business conditions. t.;
„ ,

peatedly shown awareness that into a gain gives interest to this !
the business is run for the profit, situation.
ai^ benefit of everyone connected
On the basis of premium volof $1 par value.
In 1954 there with it — including that ofttimes ume, Home is the largest fire inwere issued and outstanding 173,last considered group—the stock- surance company in the country:"
000 shares of which 60,000 had holders.
As the company has During 1957 premiums were rebeen sold to the public at $5 a thieved repeatedly higher profit ceiysd-as follows:
share. In 1956—before the Remco -goals, the shareholders'-rights to'^ Fire___:___„_„
39.117*
merger—the common stock, then participate 1ftgains as well as in
Automobile
is.84
•.
quoted around $10 a,idia»,~wa»'risks have been acknowledged by ,
CaVuiuJ"
split -"tWO-for-one.
Thereafter payment of larger and "extra'f
inland Marine'
7.59
!
Ocean Marine
4.37
-114,000 shares were transferred to cash dividends and also by intelAll Other
8.59
the private owners of Remco for Ugent
reinvestment of retained
The company is required to set
its properties and business. There earnings in plants and equipment
are
today 460,000 capital share3 to broaden the base of future up a "reserve for unearned preissued and outstanding, of which years' earnings and to hold the miums" as they are written and
approximately 40% are held by company's competitive advantages, to show earnings only v as-they
persons in the management.
Per
Present stockholders owe J,he* accrue. As of Dec. 31, 1957, this
share earnings have climbed frdm "paper profts"
on
the Frigikar? reserve amounted to $210,000,000,
seven cents
per share in 1954 to
shares they hold to the "manage- almost exactly equal to the capa
conservatively figured 93 cents ment's cojuseious efforts to in- ital and surplus-OF the company,

stock's

WALL

dividends at all times have been

Yamaichi

Frigikar Corporation was initially capitalized with an authorized capital stock of 250,000 shares

has been substantial.

LAMB0RN & CO., Inc.

„

1957 the; Home Insurance Company (Fire Insurance)
an(j fhe Home Indemnity Cornpany (Casualty Insurance) showed
a combined underwriting loss of
$15,389,000 compared with a loss
of $17,731,000 in "1956... Income
from invekments reached a new
high of $3.68 per share on ; the
4>000,000 shares outstanding. This
was Up from $3.54 a year earlier ,
and continued a growth in invest .
ment income shown over many
And, most important to the in- years. The possibility that the lqss •
vestor, the management has. re-. in underwriting can be turned
.

STRADER and COMPANY, Inc.

„

there has been enough customer company sells a product, (insur-J
subsidiary interest to encourage a close ob- ance) that is essential and little ;

photolab cabinets and appliances, restaurant and milk storage equip-

Bassett Furniture Industries

fabricator

manufactures hospital and

Trading Interest In

write

Securities Company

RIGHTS

Specialists in

information

current

nnrW

,pany's progress has

Established 1913

com-

not been

and

well-run

little

company

has

Continued on page lo

46 Front Street
CHICAGO

NewYor1i4,N. Y.
SAN FRANOIBOO

Volume

187

Number 5734

The Commercial and Financial Chronicle

(1703)

Outlook for Our
In

Argus

Research

INDEX

DORSEY*:

By HAROLD B.

President,

Economy

Corporation,

picturing the economic forces that

New

York

City

"THE

making up the]
blend of cause and effect sequence of
today, Argus Research j
head finds downward business and
employment trend is still
in effect and,
though the speed of deterioration is slowing
down, there's little evidence to substantiate a prediction for
recovery, Results of current labor negotiations in auto indus¬
try is expected to "influence; business-prospects and credit
;

/ARTICLE starting on the cover page,"The Over-tlie-Counter Market:
Vast, Vital and Voluminous," discusses the investment

and

stimulating effects of easier credit but

whether

will automatically spring back
excessively high levels of a year ago. ■
recovery

it, investment policies
analysis
of
individual

are influenced to a
very
considerable degree at this juncture by these

questions:.^/

rv(I) vW.h at;

bounce"

forces

are

ing to

pattern

A Program to Speed the Return of

the
of

Dollar

bank5 of

the

i/•

reces¬
•

(2) When is
that right

believed

bank going to
become
visi-;
ble?
'
-■*>

had

irtg
Harold

(3)'What is
likely to be
of the

Dorsey

this

recover

these

depressed.

who/

'.**

have

matic

questions

registered

of the

causes

reces-

evidence

thorough

understanding of the maladjustthat

tne

current

recession

is in the process of
correcting.
•'
For example, public attention

last

August.

The

•

„

Ior,
last

bubble-

;•

Reserve Board index of industrial

1 :

•'

ma^c brake
T

production - ranged between 141
'
^
and 147, with the single
exception'kank

•*

;

■

,•

•

■

;

Sabre-Pinon
44

—

•

as an

xi_

Eastern Industries

Proposals Made by Elliott.V. Bell and N. Y. "Times" Hit
by
E. Spahr
J

correot

See It

recession

HA 2-9000 40

(Editorial)

—Cover

Bank and Insurance Stocks

Rising in- phasizing my view that you cangiving clear not possibly analyze the current
warning that the economy's loss business situation and its outlook
of financial
liquidity was reach- unless you have a very clear uning serious proportions.
derstanding of the quality of the
Whether
wnetner

these

not
not

one" recognized m°tivating forces that
one recognized

maladjustments when they

made up
the Jeft bank of the current reces_
sion. It is against that background

that'

see\e excesses

wereIn

see tne excesses-mat .were an
that

*An address

New

Mutual

were

York

)>y Mr. Dorsey before

the

sequence

causls

and

effects becomes rneaningful in

our

earnings

inm

the

diagnosis
the

Society of Security Analysts,

0f
the
prospects
determinants
and

for

Continued

page

have

79
74

Reg
B.

26 Park

Dofo„f

Patent

Company

Offw

Office

DANA COMPANY,

Publishers

Spencer Trask & Co*

crew™*™™,

HERBERT D. SEIBEBT, Editor &

„

Publisher

HAnover

24300

TELETYPE

Dominion

Thursday, April 17, 1958
NY

1-5

Every

Thursday

vertising
Albany
;

Nashville

Boston

plete

Chicago

Schenectady

Glens Falls
Worcester

issue)

(general

and

statistical

news

United

States,

Territories
and
pan-American Union
$65.00
of

Canada,

per

and

Other

ad-

every Monday (com— market
quotation

Chicago 3,

news,r bank

city news, etc.).

Offices:

111.

135

South

clearings

Bank
$40,00

and

per

Note—On
the rate

„

(Telephone STate

8
ol

year
per

•

request

;
!

W? V. FRAHKEL & CO
INCORPORATED

year

39 BROADWAY, NEW YORK I

year

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Weekly

COMMERCIAL and
FINANCIAL CHRONICLE

Aspa-King Production*

You—By Wallace Streete

Washington and You

WILLIAM

Appell Petroleum

The Security I Like Best
The State of Trade and Industry

■

Quinta Corp.

Prospective Security Offerings
Securities Salesman's Corner—

Twice

76
76

Securities Now in Registration—4

PDETrQQrn CTOPKC
rULrLllllLU OIUUlVO

specialized in

Railroad Securities 1

The Market... and

Sabre-Pinon

Our Reporter's Report
Public Utility Securities

Published

Observations—A. Wilfred May
Our Reporter on Governments.

Funds

For many years we

Dallas

—

New York City, April 14, 1958.

Los Angeles

Chicago

—

Philadelphia

News About Banks and Bankers—

;

Exchange PI., N. V
Teletype NY 1-1825 & 1-4844
Direct Wires

being nourished.

Business Man's Bookshelf

—

rates

Regular Features
As We

Common—Preferred

Singer, Bean
Mackie, INC.

^Merrill Lynch Reports Record Gross Revenue—

auto-

Brewing

Pacific Uranium

-/Walter
.

Pabst
.

Bankers Trust Co. Study Sees
Financing Needs Near Peak

July 1956. .^lle£ wuas really higher than it
/Coming Events in the Investment Field
Throughout that some period the sfe
?ve \
everL^ f/£ Dealer-Broker
labor force was occupied at a very allowing for long term, growth
Investment Recominendations
high rate. / Physical and human trends oF population and in the : Einzig: "Exposing
Short-Sighted and Selfish Ends"
capacities of the- economy were stanaara or living...
:
From Washington Ahead of the
News—Carlisle Bargeron—_
being utilized so completely that
I know that it is boring to be
Indications of Current Business
Activity
^n. inflationary wage-price spiral repetitious, but I insist on emterest

•

•:

of the strike month of

was

Aquafilter

state of deterio-

brief then, the left - hand
°*

Equity Oil

■f Politicians and Realities (Boxed)

the excesses.

McGraw-Hill Survey Shows Capital
Spending Down But
v Research
Outlays Increasing-x.

collided;

Teletype: SU 155

Aircraft Without Fuel Envisioned
by Chemical EngineerGrowth of Petrochemical Markets
Depicted by Northern
A-Trust Co. .J.
J——

;

included.

with the fact that the economy s
!?ss,,0^ financial liquidity -had

ration that functioned

Exchange PL, Salt Lake City

DAvis 8-8786

Shaping the Chemical Industry

finally reached

September the it ^ ^
Federal

with

HEnderson 4-8504

Teletype: JCY 1160

About the Chemical Industry

;—William Copulsky

comprehension of the reasons why
demand has gone into a slump.'.

Nine Important Trends

made up of excessive expan-'
sion of the facilities for produc-

distribution.

Exchange PL, Jersey City

DIgby 4-4970

Is Chemical Research
Ignoring Thorium and the Rare Earths?
—S. B. Treat—
i
:

was

lion and

•..A

rate of demand for goods and
probably is focused most sharply services that could only be acon
unemployment, but unemploy- complished by a rate of spending
ment is the result of
slackening that was substantially in excess
demand for goods and services, of the economy's current earning
We cannot liope to evolve a satis- power. The bubble was both the,
factory solution.'for unemploy- oause and the effect of excessive,
ment
unless
we
have
a
clear demands for credit which
.

ending

■

"Gadgets and Gimmicks"

Chemicals Across the Board—Ira U.
Cobleigh

ments

Members Salt Lake City Stock Exch»
Spokane Stock Exchange

///';

analysts can be found almost sion—causes that were created in
every day on the front-pages of the preceding period of boom.
the
metropolitan newspapers.
In retrospect, it
is not at all
However, such
discussions
are
difficult to realize that there was.
really not worth very much unless a bubble on the
two-year boom
is

Curing Depressions by
—Roger W. Babson

J.F.Reilly&Co.,Inc.

Property

of- '

ftess

there

of Securities and Other

thinking could not have reckoned-

by amateur and professional busi- with the basic

Ownership Implications

auto-r

That * kind

recovery.

Steers, Jr

Foreign Trade Program's Relation to Private
Foreign
Investment—Andrew N. Overby—

be-*',

time

should

-.;'•/—Leroy A.rShattuck, Jr._

fautomatic'

example,

—Sidney E. Rolfe.

Joint

;

For

HYDROCARBON
CHEMICAL

Uranium: Fact and Fancy—Newton I.

activity
was

RESOURCES

Money and the Stock Market Outlook—Nicholas
E. Crane—

automobile-sales, steelV
production,
carloadings,
etc.,

right bank in the

intermediate future?'
Discussions

" business /

reaction to the fact that it

the size

that

METALLURGICAL
12

Industry—-Stephen W. Becker
Short-Term Uncertainties and' Long-Term Growth
Needs

U. S. Businessmen

—David Norr

;

INDUSTRIES

Outlook for the Drug

- /.

OIL

ADVANCE

Significance of Oil Imports for
Today and Tomorrow

surprising amount of dis-A
iltusionment. among
those

•

/A—C. Douglas Dillon
•

LITHIUM CORP.

;

O'Leary—

___

an-

STREET, NEW YORK

EQUITY

(S) Design—M. S. Szymczak

WALL

Telephone: WHitehall 4-6551

Today

Impact of Foreign Aid

• Within
very* recent weeks,, es¬
pecially;- in Washington, ; I- have

found

•

..Cover

General Skepticism About Oils and
Relative Values in the
,-Offing—Leslie E. Fourton
1

•

Prosperity

—j—-—i-

Business Demand for Funds in 1958—James
J.

V; V.•'

""Recovery

right

sion valley?

•'

^//-.Questions Automaticity

formation V

the

current

alysis.'

■

Special Report A vailable

Page

Outlook for Our Economy—Harold B.
Dorsey
Many Issues of Primary Concern to the Businessman

business

v/—Neil H. Jacoby

c.aus e I

go-.

f.,

Articles and News

economic

■

tegral part of the peak rate of ac- /
tivity a year or so ago. An under-standing of those excesses must
necessarily be a prerequisite for
appraising the current situation.
Failure to adopt ;'that viewpoint
led to the erroneous "automatic

securities

■

—Philip M. Talbott

see

the

MINES, INC.

only in the Over-the-Counter Market
exemplified in the tabulations showing the names-of banks and
companies which have paid consecutive cash dividends for 10 to 174
years (Table I, page 35) as. well as those in the 5 to
10-year category
A (Table II, page 54).
' /
'
as

dubious

CHIVOR EMERALD

opportunities

inherent in securities available

level of the recession's low point.
Mr Dorsey anticipates
that m due time the negative
non-monetary forces will sue-/
cumb to

OVER-THE-COUNTER MARKET: VAST, VITAL
AND VOLUMINOUS"
;
~

are

policies/' and uncertainty about outcome is found to be one/
of the reasons
why it is difficult to determine the time and

account

exchange

the

fluctuations

remittances

for

.-/-fisements

be made in New York fundi.

formuat

3-3960

Teletype NY 1-4040 & 4041
Direct

PHILADELPHIA

Wires

SALT LAKE CITY

The Commercial and Financial Chronicle
4

Thursday, April 17, 1958

(1704)
■:)
the gamut from the hard moneyites of "the right" to the political

fireballers

Observations

charge

even
_

Mr.

Truman

efforts

its

who

Steel

The

toward

with violating the Full

soundness

opening the current Savings
campaign a
member of
Treasury
Secretary
Anderson's
top - level
committee, mW/WFL

compose

eon

tion of our

Bond

who

happens
to be engaged
in

the

sumer

the

Tax

self-

hope that the
public" would
not
go : along
the

their

Others

over

t/M/ri

sav¬

pocket

is generally presumed

to be dangerously

also,

although traditionally advocates of

inflationary.

other hand, it is

On the

spend it. If
should prevail

long-term, the effect on

the

1he budget

A. Wilfred May

than

remission

tax

the

drive.

ings

main¬

revelation

this

soundness,

advo¬

now

are

tained

voluble

cating that

Also

inconsistency

manifesting

the thrift exhortation

with

is the

nationwide "Confidence in a Grow¬

not

and

rowing
size

the

merely Government bor¬

galvanize
of

launched

the credo that

"recession be¬

in the minds of
men," this top-flight group of in¬
dustrial leaders is setting in mo¬
tion a four-month advertising and
gins

and

ends

increased

the

will

production

entail

deflation;
and,
empirically, that previous budget
deficits
have
been
accompanied
public relations program to loosen by price stability. (Adding to the
consumers' pocketbooks.
confusion, of course, is the unprec¬
but continuing rise of
The followers of such "sunshine" edented,
prices in the face of recession.)
philosophy, who hold the premise
that

normal

economic

counterbalancing

than March

Even the

suggested lifting of the
can
be eliminated by persuasion auto excise tax as a temporary
techniques, are somewhat short on economic stimulus is revealing its
the relevant facts. While the psy¬ drawbacks. Already the suggestion
processes

slump

ward in
showed

substantial drop.

the slow market for steel, the odds favor another
prices this year, "The Iron Age," national metal-

steel

working magazine, declared on Wednesday of this week.
It

that higher

adds

into effect on July
steel

prices.

would

steel wages, which are scheduled

1957

lowest since

the deficits, it pointed out, noting that the
Steelworkers union calls for wage

hikes of 20 cents an hour by industry reckoning. This
a probable cost-of-living pay boost of at least

include

two cents an hour.

for each 1,000 popu¬

the

not

does

"The Iron

1933.

Age," added that both sides would like to do some¬

thing about the wage-price situation, but are unable to. The con¬
tract with steel labor was negotiated after a five-week strike in

recession and to the fact that fewer

1956.

It is

three-year agreement that

"There is little or no chance

of the lower birth
rate of the depression 30's."—An
Associated
Press
despatch from
St. Louis, April 11/1958.
because

steel union, will forego

modify what is coming to him under

Iron Age," stated. As a realistic labor leader,
Besides, he has his own troubles, and still
remembers his close shave in last year's union election, when a

Chairman
along with the certificates in the tious
Martin,
it
is dent and Director of The First
individual's
hands, providing a castigated alike by critics running Boston Corporation, is financial
unit
chairman
in
the publiclyowned corporations division of the

cannot

afford to.

him," this trade weekly observed.
said also that steel firms know from experience
the line on prices in the face of rising costs weakens
but sells no more steel.

The magazine
that holding

their financial structure,
"The

companies cannot forget the

steel

for still further

When the smoke cleared, the steel

price slashes.

themselves," "The Iron

companies realized they had only hurt
Age" further commented.
,

Although it's not much to cheer about, more and more steel
are beginning to believe that their market has at last touched
bottom. They feel that nothing much more can happen to them,
that from here on out a slow, painful pickup is in the cards.

men

The mills base their appraisal on
weather will bring a
and

inventories

steel

touched bottom.

the outlook on the fact that

industry cannot get any worse; good

pickup in highway and other construction;
of many of their customers have about
~
;
;
.

"The Iron Age," that there will be
an overnight upturn in demand.
Some high-placed steel men are
convinced that the second quarter will be no better than the
This does not mean, says

sell

first, which was one of the worst in recent years. They do not
look for much either in third quarter, but they do feel that the
worst may

be over.

large

their own from
Qontinued on page 66

That they will at least hold

j ESTABLISHED 1894 C

STATE AND MUNICIPAL BONDS

block?

Jas.

1958
•

1930s, when price

cutting failed to increase demand for steel. Instead, one price cut
fed on another.
Steel users bought in dribs and drabs, waiting

demand from the automotive

substantial vote against

virtually unknown steelworker piled up a

For N. Y. Fund Drive

•

will not expire until 1959.

that Dave McDonald, head of the

his contract, "The

Named Unit Chairman

CORPORATE BONDS

Coggeshall, Jr.

Greater

New

York

Fund

LOCAL STOCKS

•

compaign. Mr. Coggeshall also is
a

surance

Lynch, Pierce, Fenner

70 PINE STREEl

IBS

director

Smith

NEW YORK 5, IN. Y.

Co.

Commercial

The

Robinson-Humphrey Company,Inc

With Rockwell-Gould
ELMIRA, N. Y.—Robert D. Er-

has

way,

Offices in 112 Cities

the

Credit Co. and the U. S. Life In¬

Marketing Department

Merrill

Some mills already are operating in the red due to
Higher wages without higher prices

add to

only

and fringe

marriage

chological aspects are of course is deterring would-be and mightThis
indication
of
population
important, surely it is the consum¬ be car buyers; and over the long- decline leaves
open the question
er's usable car or (car-s) and other term the effect on the industry
whether the generally assumed
durable goods in his back yard might be merely
palliative when bullish
interpretation of popula¬
and
kitchen, rather
than fear, it needs thorough overhauling of tion increase is justified (some of
that keep him from rushing out to its pricing and distribution poli¬
the negative elements were item¬
cies.
buy more.
ized in our column of Aug. 8, last).
And
the
pro-spenders' worry
Money and Credit Confusions
over bond savings is largely un¬
But the prime example of the
justified. The consumer's cash go¬
ing into the Government's Bonds troubles ensuing from planning is
actually is not sterilized but is found in the administration of
directed into the spending stream, Federal Reserve policy. Under the
James
via Federal expenditures — these, statesmanlike aegis of conscien¬
Coggeshall, Jr., Presi¬

to go

1, probably will force a compensating hike

mills' contracts with the United

people are reaching marriageable
age

March, the Federal Reserve Board declared, but minerals
a

Despite
boost

attributed the decrease to the

The

drop in February.

index declined to 130 from 133 in'-February.
industries' production continued to edge down¬

adjusted

the low level of steel demand.

nation's

was

points, compared with a five-point

two

Philip M. Hauser, Chair¬
Department of Sociol¬
at the University of Chicago,

rate of 8.9%

the March decline, the board noted that the drop
goods industries, where the current recession has;

durable

overall

of the

lation

;

mainly centered, was at a slower rate than in other recent months.
The seasonally-adjusted index for durable goods industries fell

"Dr.

the

:;-i

seasonally-adjusted production

year ago.

Despite

ended."

said

Board's

economic "Golden

have

ogy

Reserve

Non-durable goods

war

man

Federal

in March to a level of 128% of the 1947This is a drop of about 13% since the index started
falling from its December, 1956, high of 147. It is 12% lower

citing the
factor, says
are indications that the post¬
marriage and baby booms

there

its decline in March to the

49 average.

"A Chicago educator,
economic

which

will

stimulated

our

production extended
November, 1954.

index fell by two points

Recession-

that Sixties," the following item elicits
some concern on our part.

inflation;

the

that good weather

: "

The

of the general reliance

view

bring

Industrial

population growth as chief as¬

surance

tax cut is insig¬
comparison
to
the

any

campaign
being nificant in
Advertising economy's slack in demand; that
Council (which organization, as it the
mainspring of inflation is
happens, has patriotically fur¬ not consumption but wage spiralin g and administered prices; that
thered past Savings Bond Drives).
America"

ing

This
that demand from

pickup is in the cards.

lowest level since

CERTAIN?
on

slow and painful

bottom.

Depression is demonstrating ever
more vividly in all sections of the

venturesome re¬

pickup in highway and other construction and that
steel inventories of many of their customers have about touched
will

by
some,
including the
British-Australian econo¬

support their<non- if not antiporter caught him in-the-middle inflationary interpretations of a
between
the
"Buy
Now" and tax cut on the grounds that actual
loans from
the
banking system
"Save Now" cheer-leading.

last week when

out

appraisal of the outlook is based on the fact
the automotive industry cannot get any worse,

economy, it is the "do-something"
approach rather than the details,
the Treasury's slogan
that is the root of the frustrations.
be temporarily changed to ''Spend mist Colin Clark in a talk here
Now; Buy Bonds Later." This con¬ this week, that because of its im¬
flict was reflected
in President pact toward cost reduction, a tax
IS THAT PROP SO
Others
Eisenhower's press conference of cut will be de-flationary.

fiscal

quarters of government, busmeso and in¬

Reporting this week on the steel industry, "The Iron Age,"
states that more steel men are beginning
believe that their market has at last touched bottom and that

from here

considera¬

the impossibility of
monetary manage¬
ment for the forces of a reasonably

some

steel trade publication,

market?

unfavorable trade barometers.

substituting
free

Industry

dustry hold that the recession is showing signs of leveling off,
notwithstanding statistics on unemployment during March which
continued to reflect a rise in the number of jobless and other

term, the recipients may feel more ministrations, does not the valid
inclined to retain the "bonus" in net conclusion lie in the concrete

interested

with

plethora

Sentiment

•

essentially, and quite
rightly in the opinion of this
writer, whether credit policy can
cure
the maladjustments through
over-expansion
which
have
brought about our present troubles
—at
least
without
bringing on
even
greater ones.
" '1
the

Index

Business Failures

iL.

question

Price

Auto Production

and

of high eco¬ tions and controversies surround¬
nomic policy rather than as a rev¬ ing our central banking policy, as
demonstrated in the most favor¬
enue producer. If a cut is expected
to be in effect for only a short- able possible light under two Ad¬

the
,

discussion

Trade

Commodity Price Index
Food

tion as an instrument

to this

frankly

controversial

The

—in this instance of

expressed pri¬
writer

Imponderables

high economic results of planning
judging taxa¬

economy,

vately

goodly propor¬

surrounding proposed tax reduc¬
tion similarly highlights the dif¬
ficulties involved in gauging the

ff*

con¬

area

present cash spenders.

Car loadings
Retail

State of Trade

MAY

Bonds

Employment
Act.
The
former
complain that it acted too timidly
By A. WILFRED
and late in applying its restrictive
measures. To
the others, it is of
ouble-barreled spending mecha¬
course
THE PLANNERS AGAIN nism. This
being
blamed
for
first
process is enhanced by
having tightened credit and then
the present experience indicating
OFF-THE-BEAM
for unduly delaying its reversal
that long-term past buyers of the
At the Waldorf-Astoria lunch¬
toward
reflation.
Still
others

Production

Electric Output
*-

Sr.,

with

Rockwell

affiliated

become
-

Gould

159-167 Lake Street.

Co.,
.

Inc.,
..

RHODES-HAVERTY BLDG.
WALNUT 0316

ATLANTA

1, GEORGIA

LONG DISTANCE 421

Volume 187

Number 5734%

The Commercial and Financial Chronicle

(1705)
sizable

Chemicals Across the Board

have

about

notes

favorably placed
Writing
difficult
bow.

f f

chemicals

describing

rain¬
chem¬

are

viewpoints

many

e r

the

So many elements

ical,
o

about

lines

above

All

this

will

outlined,

create

and
some

traditional

of seeing
apparently are

instead

ana

1958.

This

occurring

not because of any
investor eagerness or bullish¬

new

respecting

ness

chemical

shares,

"grow t h"

but simply because of share
prices

stocks that

in the

past year, have not receded,
relatively, as far as have net earn¬
ings.
So * while
price/ earnings

hesitate to

launch,

di¬

late upon, our
own

ratios have, in some

meek

board

room,,

appraisal of
lab leaders.

Cobleigb

However, for
what

4% yield basis.

Having presented these gener¬
alizations about chemical
equities,

able

timistic bias, we reach the fourth
point on our proposed outline,

earnings trends and profit
margins; (3) price/earnings ratios;
and (4) shares
appearing to offer
some

prospect of market gain.

the

first

penditures,

point, capital

capital

outlay

1958

against

1957.

This is

jarring or startling reversal but
recognition that capacity, in
many lines, has "caught up." There
is nothing remarkable about this.
no

some

characteristic

economy

and

(2)

of enterprise
(1) shortages occur
high profit possibilities

that

appear and

plants

lure

capital,

financed

are

and

(3)

come

stream

expanding capacity and re¬
ducing both the shortages and in¬
ordinately high profitability. The
standard

trend

result

downward

plant investment, and a
flattening out or dipping in both
price structures and profitability.
All

which describes with

siderable

the

accuracy

con¬

chemical

industry today.
-

Let's

generality

what

holds

extent

water.

that

Allied

Chemical earned (per share) $4.74
in

1956, $4.37 in 1957, and is

pected

stantially
dend

this year
Union
Carbide

ex¬

something

sub¬

than the $3

divi¬

earn

—

possibly

$4.10.
$4.86 in

earned

1956; $4.45 in 1957 and is expect¬
ed to earn $4.00 or thereabouts for
1958. Dow earned $5.93 in
(fiscal)
1957 against a fair
projection of
$5.25
this
year;
while
DuPont
showed $8.48

$7.90

1957

versus

about

prospect

Now

for this year.
dips are not drastic;
place existing divi¬

these

they

not

dends in jeopardy; and they have
been reasonably discounted in the

market
shares.

values

But,

benefit

any

op¬

some reference to chem¬
ical shares that can do
something

than

tread

water,

speak,

this year.
chemicals should

Which
be

the

considered

not
merely because they have,
perhaps, declined sufficiently to
be in a
buying range, but because
of particularly impressive earn¬

ings potentials?

Using

that criterion, our gaze
falls
upon
American Cyanamid
which, alone among major chem¬
icals, increased its dividend in

t!he

respective

analysis they spot¬

light

should

advance

expect

perhaps 60c
and possibly a

(to $3.00)

stock

which

fan¬

or
ethical
drug
Parke Davis, reviewed
column on Feb. 27, con¬

expected for 1958 and

it would not
for

seem

the stock

All

this

from

$2.42.

fine

man¬

agement, balanced product mix,
and $316 million invested in
cap¬
ital

improvements

years

ended

the

12/31/57.

Cyanamid is a big general chem¬
ical company with
(1956) organic
chemicals delivering 16% of sales;

chemicals, 11%; in¬
chemicals, 14%; plastics
and
resins
16%;
miscellaneous
products 20%; and Lederle Divi¬
dustrial

sion

(ethical

latter

drugs) 23%.
This
(which is among
profitable) moved ahead

division

the most
to

about

ing

for

25%

for

roughly

1957

$140

million

So much for the past.

This year
in

three major new products are
the spotlight, Creslan a new

acry-

lonitrile

based

Aristocort,

synthetic
fiber;
anti-arthritis drug;

Another

splendid

Chemical Co.

results

June

Cyanamid

looks

Net may

new

"base

good

not

for

advance, but
higher future

one
point
in
particular,
namely a decline in the profit
margin since gross sales (1957) in

earnings should be established.
Meanwhile, the stock is available
at 44, yielding 3.6% on the cur¬

most instances increased. For 1958

rent dividend.

expect, in general terms, some de¬
cline in gross with net returns

Most investment trusts

1812

times

This price is about
indicated
earnings.

with

any

dramatic

advance

months,

rising

these

for

six

the

from.

$2.27

per

comparable 1956/57
period to $3.51. This is over a 50%

gain and would
point to

the

formation of

mc Laughlin, Kaufman & Co.
Members New York Stock Exchange
and other

52 WALL STREET

-principal Exchanges

NEW YORK 5, N.Y.

rains

represents

payout

of net.

but

not

has

com¬

classed

such

im¬

place here.
It's Rexall Drug
Company. Most regard this as a

retail store chain

proprietary
account for

another

whereas, in fact,

drugs

and

cosmetics

probably 50% of

ethical

drugs

earn¬

possibly

15%.

Retail

done

through

subsidiaries, the Owl Drug
Company (mostly in California)
and
Liggett Drug
Company in
eastern

and

number

southeastern

unprofitable

have been closed down
The

Rexall
a

broad

supplies,

states.

Division

stores

under

the

through

v over

dealers

distributed

Rexall

trademark,

11,000

the U.

and

Products

expected
some

this

talk

sort

word

that

sounds

little

going

control

the

change

economy

are

to be

seem

Others

would simply inindebtedness, enlarge

dwell

and

first

sounds

year
a

form

one

good

and

sincere
people,
but
if
they
think
it
through, they will discover that it
carries the
real

from

of removing the

curse

authority
the

hands

this
of

the

your

children and

children

shows its confidence by ownership
(among officers and directors) of
more than 500,000 shares.
the

there's

under

visible

most

chemical

the

lull

the scope of the

for local schools,

Federal bureaucdiminish the stature of the
individual, make it more difficult
for business to develop new marand

would
pose

to create

plied

about

serve

toothache

oral

would not

jobs—and

new

much

pur-

medicine
abscess.

ap-

That is what

At
are

and the

have

the

ber has

being challenged both scien-

*An"address byjtlr.

seen a

vast

the

power

labor unions. The National Cham-

time,

same

quarrel with the union

principle.

has

supported

Office
Furniture
Association,
Philadelphia, Pa., March 29, 1958.

THE

Continued

page

your

APRIL 11,

1958

members

new york stock exchange

associate members american stock exchange

Investment Advisers

AND THE ASSOCIATION

WITH THE FIRM OF

MERRILL S. SUMMERS
W. DEANE PRUDEN
wall street

new

Telephone:
Bell

issues

york

n. Y.

System

DIgby4-8970

Teletype

JOSEPH

inspection

Management,

chemical companies.

OF THE CO-PARTNERSHIP OF

1-4955

NYE

LOUIS H. WHITEHEAD

re¬

search, plant expansion, and suc¬
new products are still the
basic
ingredients
of
growing
cessful

PLEASURE IN ANNOUNCING THE

NYE & WHITEHEAD
'

big
companies,

individual

personal

research.

DISSOLVED

FORMATION

we've touched upon here may de¬
and

FIRM

COSGROVE, WHITEHEAD & GAMMACK

WE TAKE

ELSE A. NYE (limited partner)
april 14.

1958

the

riSht °£ labor to Organize and the

Talbott before the

National

HAS BEEN

public

Labor Power

Meanwhile,
increase

one

idea

over our

schools—and it will make no difln P°wer-

They

Soviet Challenge

the

£erence which Party is

get at the root of the

matter.

will get unless

ciamp down
Federal authority
we

the

some

the

racy,

our

progress

grand-

your

written

direction of politicians and others
who believe in centralizing all

there

this

republic
people

where it belongs to the hands of a
few bureaucrats in Washington.,
If you want the textbooks used

authority in the national capital,
then go right ahead and support
the use of Federal Treasury funds

crease

ethical

which could
add
equity. Present
price around
13 Vt,
with a 50c
dividend which may be increased.
Management
is
energetic
and
to

another

many

Canada.

new

over.

blush, Federal aid for

;

about

let the

Government take

Absorbent

and

are

education

proposition

education in

me.

being proposed. Some

product

romance

serve

direction

Laboratories, manufactures
drugs; and further manu¬
facturing is done by Seamless
Rubber Company (surgeons' gloves
and hospital supplies) and United

HENRY KAUFMAN

CYRIL J. ANDREWS

Then there

mess.

Federalizing edu¬

Riker

Cotton

great

franchised

JOHN F. MCLAUGHLIN

April 14,1958

from

All sorts of remedies to

sound.

again, the

leaves

ethical

industrial

FRANK J. BRADY

saying
singly."
are going

old

come

another,

mealy-mouthed to

manufac¬

drugs,
cos¬
and surgical

are

the

never

away

"recession."

the

not

At
year proves

shy

frightful

Federal

Talbott

somehow

and

front

sold.

line of pharmaceu¬

which

shift in the current of
This is not
depression in terms of the 1930's

kets

business

two

Philip

the national economy.
a

state

in America, we

through

issue

the

token

never

Here

deserving of

which

one

and

all

but

persistent
and powerful arguments to reduce

accuracy
that "troubles

Manage¬

portant chemical overtones that a
discussion of it does not seem out

ings

•

truthfulness
that

home

education but there

can

said

cation.

period
it,

stand-still

war.

.climate

liv¬

are

ture is

from is¬

when

will

to issue.

the

business

the

chemical

deal to be desired. Our tax struc¬

pays

Another issue

While
HAnovck 2-350O

theme.

U.S.A.

have

satellite, and
openly boasting
U.S.S.R. is going to whip

Kremlin

the

central

.,We

successful

foreign trade

pours—better yet, this

around 55%.

drug

not

that the

divi¬

here is
top-flight, and in
depth, and new products are con¬
stantly broadening the base for
future
profitability.
Vick
sells

may.

the

ment

launch

of mine

sue

tifically and economically by the.

the

paper

require

Soviet Union for world supremacy.'

brief

Per share net has been rising
steadily from 55c in 1951 to $1.45
last year. A further improvement
announce

will

public affairs.

Russia
is feeling her oats
primary concern
today, that I having been the first nation

Presently Vick

dis¬

them

definitely to

seem

increase

issues
international

many

This

ing in

Cotton Company.

bound

$60.3 million.

Net showed

and

morally

move

important—which is said

businessman

feel

30, 1958, but for the first
half-ending Dec. 31, 1957, sales
were
up
17% to a new high of

Formica Division.

year.

Vick

Its fiscal year ends

ticals,
proprietary
metics, sick room

can

turning

company

current

tures

Nineteen-fifty-eight for Ameri¬

the

cuss

and

a
flakeboard product made
from wood chips and resins
by the

best

are
—

consequence

$2 divi¬

account¬

sales.

There

national

basis later
this year
(the
rate is 45c quarterly
now)...Abbott
sells at 53.

seven

American

illogical to look

dend

of less than 30%

to be

active participation in

Laboratories, whose fortunes

1957

net

the opportunity

tinues to merit consideration. Ab¬

tax with

varieties.

also

should pursue is tax reform. Calls for cut in
personal income
top rate at 50%, and calls on Hie individual to exercise

pharmaceutical

bott

"a little too exuber-;

ant/1 the Chamber President judges that the economic low
has been reached and that the most
important economic policy

ciers of chemical shares.
Other chemicals with a forward
are found
mostly among the

this

White House economic forecast

recent

look

dealing with

potpourri of national and international issues,
Mr. Talbott opines that
"1958, in the end, will turn out 16 be
a good
year, if not a better year than 1957.
." Terming a*

may

inspection by

further

which

per
stems

unheralded

merit

$1.60

lion, and

Washington, D. C.

dividend basis of $2 or
better. Pennsalt at 50
is the sort

rate.

(from $1.50 to $1.60); and
increased its sales by 6.4%
to an all-time high of
$532% mil¬

President, Chamber of Commerce of the United States
Senior Vice-President, Woodward &
Lothrop, Inc.,

regular

dend

agricultural

see

For

Today

By PHILIP M. TALBOTT*

earned
$2.40 for
$1.85 in dividends.

and paid
1958
we

earnings
a

namely,

ex¬

companies
$1.6 billion in

about $1.7 billion in

quite without

chemical

will ^spend:/about

Pennsalt

1957

advance

worth, we shall proceed
along four main lines of inquiry:
(1) capital expenditures; (2) prob¬

it's

lion.

instances, ad¬ have
been on the upgrade since
vanced, so, curiously, have yields
1954, showed a 15% increase in
so
that today you
can,
for in¬
sales in 1957, with net per share
stance, buy both Allied Chemical
of
around
$3.60.
Some further
and Union Carbide on better than
a

To the Businessman

Pennsalt, which increased its sales
10% in 1957 to almost $80 mil¬

wage

the

lower multiples, we
in for higher ones

almost
ideal

the

mainly to rising
transportation costs.

equities

equi¬

been advanced
the

along

Cyana¬

for chemical

values in today's market, we see
quite a bit of forward motion in

and

price/earnings ratios of chemical

ties here have

trends

due

disturbance

specting this
many

chemical

chemical equities.

are

re¬

industry, and
so

salient

chemicals,

Looking elsewhere

Enterprise Economist

springtime

American

mid in their portfolios.

By DR. IRA U. COBLEIGH

Some

holdings

included

The Commercial and Financial Chronicle

(1706)

JAMES J. O'LEARY*

Director of Economic

Research
Association of America

Insurance

Life

result of Treasury refunding propriations running
at a lower and industrial demand for funds
February, along with the pro- rate than capital expenditures, the is bound to decline through much
spective Treasury cash offering of backlog of outstanding appropria- of this year, although the remain¬
$3-$4 billion in early April, has tions at the end of 1957 was 20% ing demand will continue high. In
reduced some of the heady opti- lower than a year ago. This latest order to crystalize the picture, it
mism
about
rising Government survey, in conjunction with the, may be helpful to suggest certain
bond prices. This has in turn un- two preceding ones, suggests that r ough orders of magnitude.,7 They
the

probes what he terms a
credit in recent months to deter¬
easier credit will continue or not. Dr. O'Leary

Life insurance industry's economist
"dramatic" sudden easing of
mine whether

(1) expanding

concludes:

of capital demand will help

areas

doubtedly contributed to

financing decline; .
(2) lower mortgage rate will result if flow of funds available.
exceed number of mortgages; and (3) Federal Reserve holds ,
the key to the answers as to credit and capital terms which will;
depend upon whether Federal deficit financing will be done:
through commercial banking system or non-banking investors..
take

the slack of business-industrial

of the most dramatic changes

one

financial

After
of

history.

three years

increasing

pressures

rates,
sud¬

time

easing of

credit in

the

day

following

easier

toward

credit

J. O'Leary

con¬

largely run its
course? This is the principal ques¬

tinue,

has

funds

some

securities

capital outlays in 1958 Will coninto■ tinue to exceed the level of 1955

invested

been

went

tion I shall deal with in this paper.

business
demand for funds in 1958, but this

The focus will be on the

+.V

•

there

has
on

since

series

Federal

been

tendency

Reserve

has

but

steps since last Novem¬
Reserve redis¬

the

ber

last Autumn.

well

Federal

count rate has been cut from 3 Vz %

the

most

it is expected to be 38%. Durable
goods manufacturers expect a cut

of 22%, and. t non-durable goods
manufacturers 12%. The- decline

firmed

that time.
able

somewhat

since

From all' reports avail¬

there

has

been

moderate

the

year

1957

appropriations

down

were

In addi¬

substantial

business »i

reductions in

inventories

since,

last3

summer,7;

declines in the1',

with accompanying

demand for shorter-term business

credit..

that

Assuming

liquidation

continues-: for

and that

pace,
a

shift to

shall have had'

inventory accumulation
we

estimate that

the net increase of business credit

this

constitute

where, capital

21%

expected

the

only

expenditures

are

rise

increase.

sector

will be in the order of

year

$1.5 billion as against slightly over

billion

course

will

1957.

business

depend,

the trends in

011

but

also

course,

have been taken by

the monetary
authorities, of course, in an effort
combat

the

Federal

recession.

business

the

result

Reserve

change

the

What

are

yield

bills

new

issues

dropped,

3.66%

at the

end

of Treasury

the

sharp decline which took place
(especially in the
corporate
bond
field) since last autumn?
What
in interest rates

publicly-offered

for example,

October,

1957

from
1.20%

of February this year.

A modest rise to

has taken

1.53%

place in the past few weeks. Like¬

wise, the index of yields on longterm

Government

from

3.66%

securities

October

mid-January of this

fell

3.20%

year.

has

stabilized in the past several
weeks at around 3.25%.
In

explained in terms of

nounced
mand

Equipment Trust of 1958, Second Series
.

■

•

•.

Equipment Trust Certificates

To be

mature

$501,000 annually May 8, 1959 to 1973, inclusive

guaranteed unconditionally
endorsement

as to

payment oj par

value and dividend warrants by

by Northern Pacific Railway Company.

heavy
demand for'capital funds relative
to

available

degree
based

MATURITIES AND YIELDS

supplies. To a large
sharp
decline
was

the

the reversal which

the

rediscount

vember.

tion in

rate

This created the

the bond

•'

took

(Accrued dividends to be added)

Federal

spring of 1953.

3.70

1968-73

3.75

1963

3.25

1961

2.75

1964

3.40

1965

3.50

pattern of quickly moving to "ac¬

slight rise since that time.

3.60%

1967

2.40

the

bonds dropped precipitately from

1966

2.00%

1960

expecta¬

4.14% in September, 1957 to 3.56%
at the end of last January, with a

3.00%

1962

1959

mid-No¬

market that

place in Federal Reserve policy,
as
signalized by the first cut in

corporate bond field,
index of Aaa corporate

the

Moody's

pro¬

any

(Philadelphia Plan)

change in the basic de¬
and
supply of capital
Throughout
this
period

there has continued to be

■

3%% Serial

for

funds,

Railway

the basic forces behind

and the
declining demand for funds, a
lies behind the firming of rates'
sharp downturn has occurred in
in recent weeks? I do not believe
money rates and bond yields. The
that the sharp decline in rates can.
policy

Northern Pacific

significantly,

mortgage

bonds

Oct. 22,

would

was

done in the

study of first

Successive cuts in
the rediscount rate have kept this

issued

of these Certificates are subject to authorization by the Interstate Commerce Commission.
Offering Circular may be obtained in any State in which this announcement is circulated from only
of the undersigned and other dealers as may lawfully offer these securities in 1uch State.

Issuance and sale

expectation alive despite the fact

rated

Even

by public utility companies shows
that

Reserve

tive ease" such

1957 the| Consoli¬

that

until.

Reserve

recently

has

dated Edison Co. of New York sold

the

$60 million of Aa-rated bonds at

commercial

reserves

Several

been

the

such

Federal

cautious

about

it has supplied to the

banking system.

HALSEY, STUART &, CO.

Inc.

factors

aid to explain
offering yield of 4.95%.
On
6, 1957, Dayton Power and the moderate1 firming of interest
Light Co. issued $18 million of rates on business financing in re¬
Aa-rated bonds at an offering cent weeks. For one thing, there
is a seasonal tendency for an in¬
an

The

DICK

MERLE-SMITH

PRESSPRICH

CO.

BAXTER &, COMPANY

Nov.

♦An

the

address

First

Dallas

by Dr.
Meeting

O'Leary before
of the National

Industrial Conference Board, Dallas, Tex.,

March 20,

1958.

creased volume

of corporate bond

offerings to be brought to market
in the early part of the
year, and

FREEMAN

WM.

IRA

COMPANY
POLLOCK

CO.,
*

April 16, 1958.

HAUPT &.

INC.

CO.

McMASTER

SHEARSON,

needs

HUTCHINSON

HAMMILL & CO.

CO.

only

buying,

magnitude

$7,515,000

to 4%,

not

consumer

the

actual

The
credit

easing in the real estate mortgage

41/2%

while

longer, although at a diminishing^?

17% according to survey returns,

ties

'*■

inventory

Other percentage declines in capital spending are placed at 15% in
mining, 19% in the transportation
field other than rails, and 13% in
the commercial field.; Public utili-

produced J

spending /have:

sumer

all

for

whole capital

market, with conventional
resi¬
21A%, and through open market dential rates down about
lA of 1%.
operations and a modest cut in
Similarly, interest rates on cor¬
reserve requirements the "free re¬
porate securities
issued directly
serves" of commercial banks have
(as contrasted with public offer-,
moved from a negative figure of
ings) have shown a modest de¬
several hundred millions of dol¬
cline. Likewise the prime rate of
lars to a positive free reserve po¬
commercial banks
has been
re¬
sition of $450 million. These steps
duced from

the;

tion, declines in military and con-

manufacturing'1 industry
by the year-end,
manufac- taken together is expected to be

Conference

recent

mercial mortgage credit.

■

markets

just discussed,- net;
corporate
bond issues- are;
likely to decline this year to about,-,

Money

the

assumption,

surveys

in 1957, or a drop

policy and the
and general condition of greater credit Board survey the 499
V Capital Markets Since Last
ease.
In other sectors of the capi¬ luring companies furnishing data
Autumn
tal and credit markets there has for all quarters of 1955, 1956, and
been
a
similar easing, although 1957 reported a 33% decline in the
In order to appraise the pros¬
not so pronounced. Moody's index capital appropriations newly appects for business finance in the
of Aaa bond yields declined from • proved in the fourth quarter of
remainder of 1958, it will be use¬
1957 as compared with the cora high of 3.45% in August, 1957 to
ful to review briefly the develop¬
2.65% in late January of this year, responding quarter in 1956.
For
ments in the money and capital

Developments

•

two

year, as

subject can be considered mean-^ ing yields in some detail because the other the SEC-Department of
ingfully only against the back¬ they have provided the most sen¬ Commerce survey of business and
ground of conditions in the credit sitive response in the long-term industrial expenditures for -plant
and capital markets as a whole.
market to the change in and equipment.
> capital
'|A'

of this

compared with $37 billion issues of $10.2 billion in 1957. It%
of 13%. Accord¬ goes without saying that these ^
The Prospective Demand for
ing to the survey,: capital outlays figures have a large element-of ;
Capital Funds by Business v
fell from a peak rate of $37.8 bil¬ guesswork in them, but they seem .7
and Industry
V1
lion in the third quarter of 19.57 logical under conditions now de-'r
With this background on past to a rate of $36.2 billion in the veloping.
Likewise we* expect a 7
developments/what can be; said fourth quarter. They are expected small decline to take place this ;
about the prospective demand for to decline still further from an year in the net increase in com¬

porate bonds.

utility issues to capital funds by business and in- annual rate of $34.1 billion in the
rise, to the point that on March 5 dustry? The answer clearly seemscfirst quarter of this year to $32.6
Union
Electric
Co.
offered
$35 to be that a decline is under way billion in the second. The survey
million of Aa-rated bonds at a and is likely to continue through- further indicated that capital outyield of 4.22%. On March 11, how¬ out the year. The measure of this lays in the first half of this year
ever, the Indianapolis Power and prospective
decline is given : by are 10% below the-rate for the
Light Co. brought out an $8 mil¬ two recent surveys, one the excel- last half of 1957. The biggest delion issue at 4%.
lent survey of capital appropria- cline in
capitals spending plans
It seemed worthwhile to review tions conducted by the National this year, as compared with 1957,
*
the movement of Aa utility offer¬ Industrial Conference Board and is in the railroad industry where

"Will this move
James

corporate

have

hew^

Iowa

Light Co. sold an issue

for the rate

re¬

months.

cent

that

meant

might

new

utility bonds dropped an unprece¬
dented 135 basis points. Since that

have expe¬
a

assumption: that

through the remainder of not become much deeper and that7'
Even so, as the Confer- signs of recovery will be in evi ¬
Board report indicates, the dence this summer. On the basis;

long-term rtinue
ence

of $10 million on a 3.60 yield basis.
Thus, in a period of three months
the offering yields on Aa-rated

rienced

likewise

and
steadily rising

funds,

den

corporate' bond/manufacturing concerns may con-

the

on-

this year.

which

Power

interest

Government bonds outstanding has

available

the

increase

based

are

the current business recession will ^

the

and

for

demand

The

capital outlays by

undergone

have

markets

rates

field.

firming;the decline in

the Treasury bonds.
In addition, .because the backlog Of appropriaas corporate bond yields declined; tions
at the end of 1957 remains
4.97%.
There then oc¬ there has undoubtedly been a high at $5.9 billion.' '
$5 billion, as compared with $7%
curred a very sharp decline in the
tendency for many institutional ;;- The results of-the latest SEC-; billion in 1957. We also look for;
offering yields of several Aa-rated investors to direct a larger pro- Department of Commerce survey a decline of about $1 billion in netutility bond issues in the next sev¬ portion of their funds into * real/confirm the
prospects for a decline issues of corporate stock this year;'
eral weeks. The extent of the drop
estate mortgages
Thus, it7
where the net in the demand for capital funds as compared with last;
was
apparent when on Jan. 21, yields have become comparatively by business and, industry.The is our guess that net new securi-,
1958 the Pacific Gas & Electric Co. more attractive. All of these forces
ties
issued by corporations
survey, indicated that business and
will7;
successfully sold a $75 million is¬ have undoubtedly contributed to industry expect to spend $32 bil- decline to about $7.3 billion this
sue
of Aa-rated bonds at 3.65%, the recent
year as compared with net
firming of rates on cor- lion for plant and equipment this

yield

During the past several months
conditions
in the capital and
money

Thursday, April 17, 1958

this
undoubtedly contributed „to from the level of 1956 arid down 4% -is/indicated in this sector,~r
tempering the buoyancy of bond : 10% from the level of 1955, with solely as the result of an 8% in¬
prices.. Moreover, the sizable in--the stronger decline in the durable crease in the electric utility field. v
crease
in outstanding -long-term goods sector.
The survey further J The inescapable conclusion from'
Government bonds, $1.7 billion,;;as showed that, with new capital ap- these surveys is that the business

Business Demand for Funds in 1958
By DR.

and

.Volume 187

Number

5734

The Commercial and Financial Chronicle

(1707)

timing, of Federal defense spend¬
ing;
•"."
1
;
,

and

Implications

the

and

extent this

mortgage markets would be further easing effect, in the credit
tightening these markets, and capital markets. On the other
If, on the other; hand, most of the hand, if the Federal deficit financTreasury financing is done through > ing should have the desired effect

Declining

l>emind for Funds by Business
V

with

toward

the issuance of shorter-term

Industry

toward

secu-

rities suitable for,commercial bank

;' :• Assuming that

a further decline
in the demand for funds
by busi¬

stimulating business

;the

ery,

Federal

Reserve

were done, a tightening effect would take place in the
capital markets. Thus, as has been

would

the.

Treasury

from

come

general

these

answer

questions

whole.

Business

true

would

one

entire

and credit " market

Reserve's
reserves.

to the

I JAsthe'demand
by i business has
savings

absorb

banks

and

supply

tal

some

This

:.v

./•

the mort¬

fTi-iff'

attractive.

curities

flow

rates

tend

funds

into

First

demandsthis, .year.';from state
local governments for the fi¬

tends to be offset by an
demand in many other

real estate mortgages, mainly resi¬

dential mortgages, will accelerate.
This happened in mid-1953 as in¬
vestors directed their funds heavi

ily

into

mortgages

greatly

increased

'atthe

are
•

availability

residential

in 1954 and 1955.
.X One of the big
is

whether

the

;

follows: /'

V;'".".

and

pect,.-this

■.

although

one,

availability

be matched by
believe that there

commitments

investors

figure

will

probably

h*v

guaranty
effectively.

renewed

(2). As

of funds

gages.

the

residential

comparable
the

marked

Thirty-five Year 4% Debentures

bond

corporate

autumn and

Another
business

and

market

happened in
last

market

early this

sector

year.

of the

market which must

industrial

financial

financing

is the Government securities

mar¬

ket.

During the remainder of 1958

the
;

Federal

pected to

Government

run

substantial

cash

in Federal

]

estimate conservatively that in

i 1958

debt

net increase

$5 billion in Federal debt.

amount may

outstanding.

there may be

spending

up.

key

significance, of course,
how the Treasury finances its

needs." Ir it chooses to. raise a sub¬
stantial amount of the funds

means

of long-term

effect

the

Price

securities, the

business

April 1, 1993

102.87%and accrued interest

does

the

supply

show

not

ap¬

preciable increase as funds become
available, the easing will be pro¬
portionately greater/ Much de¬
pends also on the extent to which

The

FNMA purchases are used to make
home mortgage credit available on

Prospectus may be obtained in any State in which this announcement is circulated from only such
of the undersigned and other dealers as may lawfully offer these securities in such State.

easier terms.

(3). What happens in the capital
and credit markets in the remain¬
der of this year will

heavily, of
Reserve

policy.

stand, it
result

seems

A. C. ALLYN

AND COMPANY

INC.

AMERICAN

SECURITIES CORPORATION

INCORPORATED

certain

now

that

will

the

run

net borrower

DICK & MERLE-SMITH

HALLGARTEN & CO.

LADENBURG, THALMANN & CO.

and

revenues

expenditures

deficit and

HALSEY, STUART & CO.

very

Federal

matters

Government will

cash

depend

upon

declining

increased
eral

course,

L. F.

Fed¬

large

ROTHSCHILD

CO.

WERTHEIM

financing

of dollars. The

large
ury

CO.

SCHOELLKOPF, HUTTON & POMEROY, INC.

BACHE & CO.

BAXTER & COMPANY

required

billions

BLAIR

GREGORY

CO.

SONS

HIRSCH

CO.

WEEDEN

INCORPORATED

stepped

Thus, in 1958 the U. S. Treasury
will draw heavily upon the
capital
and
money
markets
for
funds,
whereas in 1957 it actually
sup¬
plied funds.
Of

construction/ If

The

be very much larger

get-a substantial tax cut and

Federal

Due

April 1, 1958

How far this easing goes
-will'depend
degree to which credit

mortgages

ex-

| deficit which will require a large
; increase in net Federal debt out1 standing this year. In 1957 there
j was a net decrease of $1.7 billion

Dated

the

upon

England

easing in availability stimulates residential

mortgage
what

;/ :/,'■■

Telephone and Telegraph Company
.

in the residential field

New

ther easing of credit terms in both
commercial and residential mort¬

tial mortgages greatly accelerates
in coming weeks, we may very
witness

The

$45,000,000 'y V/

are";

financing.

larger flow

of institutional funds into residen¬

well

offer to sell or a solicitation of an offer to buy these securities
offering is made only by the Prospectus,
•
"
<

not an

continue

estate mortgages where yields

ex¬

flow

the

THOMAS & COMPANY

now

depends

program

■*.

A,:.

'V-

loan

J. S. STRAUSS & CO.
'*

pediting its mortgage processing, .becomes available' for mortgages
as'well as on..whether the VA this year," we. should witness fur¬
home

A. M. KIDDER & CO., INC.

to shift their investments -into real

of possibly

FHA has in

ALSTYNE, NOEL & CO.
'

April 17, 1958.

>/:-v •

business and industrial

this

VAN

FOSTER &, MARSHALL

This announcement is
"

in\.the
large part

$2 billion in the residential mort¬
gage field this year.
Whether it
success

HANSEATIC CORPORATION

made

will

reach

NEW YORK

CO., INC.

/ ■'

relatively more attractive.
Generally speaking, the expanding'
areas of capital demand will
help
to take up the slack of a decline in

iipon the

April 1,1988

INC.

STERN BROTHERS & CO.

MULLANEY, WELLS & COMPANY

their^ i'nvestible funds in the
remainder of this year.
Thirdly^,

will

increase

Due

financing is under- '

past which will absorb
.of

high level of housing arid
land prices. Nevertheless, it seems
likely that the greater availability
of residential- mortgage credit on

net

Light Company

the level of financing needs

ment

demand^/ especially ^ at. the

stitutional' investors

current

will be

Mortgage Bonds, 4H% Series due 1988

INCORPORATED

EVANS &

Secondly," in¬
st'ilh;have ' a •
heavy backlog of forward invest¬

Most

experts rthink not and base/this
view, upon the argument that we
have largely caught up with housr

decline in business

and industrial
way,

terms

buy these securities,

April 1, 1958

COURTS &, CO.

remainsvvery high.

demand, and

The

THE ILLINOIS COMPANY

borrowing-terms will ease much
further this year. "There are sev¬
eral reasons, for thi£ belief. .For,;,

td residential

easier

offer to sell or a solicitation of an offer
offering is made only by the Prospectus,

not an

not

Will provide a substantial stimulus

;

HALSEY, STUART &, CO.

by-

pros-

big question is how

BURNHAM AND COMPANY

STROUD

CO.

WM. E. POLLOCK &, CO.,INC.

proportion of these Treas¬

borrowing needs the Federal

INCORPORATED

BALL, BURGE&. KRAUS

SPENCER TRASK

COMPANY

CO.

ADAMS

PECK

INCORPORATED

Reserve will be
nanced

through

willing to
an

the money supply.

these
the

needs

commercial

see

expansion

fi¬

banking

could

have

NEW

YORK

through

COMPANY

FIRST OF

MICHIGAN

substantial

HANSEATIC CORPORATION

system,

the resulting increase in the
money

supply

BLAIR

CORPORATION

If the bulk of

financed

WILLIAM

April 15, 1958.

changes. He was formerly with
Goodbody & Co. and Central Re¬
public Company.

pmrht
credit

Prospectus may be obtained in any State in which this announcement is circulated from only such
of the undersigned-and other dealers as may lawfully offer these securities in such State.

-^V'

industry is in

does

The

necessarily
that business and industrial

mean

questions today

construction.

whole.

lancing

nnrl

and

Price 102.526% and accrued interest

de¬

the demand for funds

business

construction

mere

South

I 'reach

(1), Despite the fact.that,

cline

easy

of, easy residential mortgage credit

ing

conclusions .which

down-payment and amortizationperiod terms led to the sharp in¬
crease

Dated

increasing
sectors.

Conclusions

The

In 1953 and 1954 the

VA mortgage funds on very

■/;

Relatively attractive rate of fYz %
at that time.

i Power &

Consequently^ if we. analyze the
capital markets, as. a.. whole, the
declining demand for funds in the
business and industrial sector*,

ser

lower, the

-move

pnnitnl
capital

$15,000,000

half

that

corporate

institutional

208

It is /

therefore,

Co.,

"■

securities this year may exceed by:
a billion dollars the
very, high
net increase of $4.k'billion in 1957.

gage market do not change as fast
as bond yields, and under current
conditions .the mortgage market

if interest

announcement

nancing of schools, highways and
other facilities.;,.We anticipate that
the net increase of state and local

funds to the real estate mortgage

Salle Street, members of the New
finanYork and Midwest Stock Ex-

and"

and

logical to expect,

the

Present signs point ;fo a%
considerable increase, in the capi->

companies to al¬
larger proportion of their

has become

in(j1Ktriai

'tho

markets

bank

locate

market-Interest rates in

in
in

the Federal

part ,.to

life -insurance
a

artrl
and

spective.

lessened^; there
has "already been a tendency for
.

mutual

market needs to be viewed in per¬

for capital .funds

hlwrinp~

One other sector of the financial

pther-;aectdrs:v-.£;;;i^

Chapman

the key to conditions this year in

Federal*

increase of Federal debt,

the less reluctance

arid; canno.t "be

analyzed Without,reference
;

net

willing to supply

Treasury securities. Generally
speaking) of course, the farther-'"
the recession goes, the larger
the:,

capital

the

rrn..._

the

and

the,, sectors

necessary

reserves

since last

flianman ArlrU

(special to the financial chronicle)

eral Reserve will continue to hold

«.

the

the.

industrial financing is just

year.goes

Reserve will

necessary to broaden our perspec¬
tive and to look at the financial^

market

.the

u n

easing dn the terms:- of business
and industrial financing?' In order

increase

F»i«w#dl

*«*rweu, Lnapmdn /\aas

CHICAGO, 111. — Arthur W.
Autumn, the Fed- Bergman, Jr., is now with Farwell,

recov-

undoubtedly be less willing to
supply reserves to the commercial
industry is in prospect,
the money supply. Thus, Treasury banking system to facilitate Treaswhat are the implications of this
'_ii
financing might actually 'lead * to1, ury financing. Thus, more of this
decline? Does it mean a
renewed
greater credit ease on this basis. /A;financing would have to be done
fall in .interest rates on
corporate
key question, of course, is whether ^
securities and a further
purchase,

and

ness

nonbanking investors. To the

VAN

ALSTYNE, NOEL & CO.

STERN

BROTHERS

CO.

The Commercial and

Financial Chronicle

1958

Thursday, April 17,

(1708)

Manufacturing Company, Pittston Company
memorandum on Philip Mor¬

Glass

Thatcher

COMING

and Convertible bonds, and a
inc.

ris

Dealer-Broker Investment
send interested parties the

Canada.
Container Corp. of America—Memorandum—Walston & Co.,
Inc., 120 Broadway, New York 5, N. Y.
Continental Casualty Co. — Memorandum — 'John C. Legg &
Company, 22 Light Street, Baltimore 2, Md. Also available
is a memorandum on Quaker City Life Insurance Co.
Cormac Photocopy Corporation—Report—Ross, Lyon & Co.,

Energy—itcvlew—Harris, Upnam & Co., 12U Bruauway,
New York 5, N. Y.
Burnham View — Monthly investment letter — Burnham and
v.
i.
Bureei
New York 5, N. Y. Also avail¬

Inc., 41 East 42nd Street, New York 17, N. Y.
Dayton Malleable Iron Company—Annual report—Dayton

able is current Foreign Letter.

rities Co., Ltd., 61

Secu¬

Broadway, New York 6, N. Y.

Company of New York, Inc., Ill Broadway, New York

Analysis

—

M. W. Lambert

New

York

City Banks

& Meeds,

Laird, Bissell

—

Inc., 80 Wall Street, New York 5, N. Y. Also available
analysis of Security National Bank of Huntington, L. I.
Company—Memorandum—Dittmar & Co., Inc., 201 North
St. Marys Street, San Antonio 6, Tex.
.
;
Gardner Denver Company — Analysis — A. G. Becker & Co.
pany,

320

— 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
used in the National Quotation Bureau Averages, both as to

Over-the-Counter Index

Street, New York 5, N. Y. ;
Gulf

1166, Pittsburgh 30, Pa.
Hartford Electric Light Company — Annual report

and market performance over a 19-year period —
National Quotation Bureau, Inc., 46 Front Street, New York

Electric

' ' "
Pine

East
a

tion, 120 Broadway, New York 5, N. Y.
describing products and services
for industry—Blaw-Knox Company, 300 Sixth Avenue, Pitts¬
burgh 22, Pa.
This Is Cyanamid—Booklet describing products and activities
of American Cyanamid Company and its subsidiaries—Pub¬
lic Relations Department,. American Cyanamid Company,

This Is Blaw-Knox—Brochure

Plaza, New York 20, N. Y.

"•

Agricultural Insurance Company

—

Memorandum

—

memorandum

Wall

Club,
Meade

North

Auto

Study

—

Robert H. Huff &

Annual report

—

Pacific

Aircraft Radio

and

Electric

and

Memorandum

American Greetings

Corp.—Memorandum—Kidder, Peabody &

Co., 17 Wall Street, New York 5, N. Y.
American Machine & Foundry — Analysis — Bregman, Cum!
mings & Co., 100 Broadway, New York 5, N. Y.
American Pipe & Construction Co.—Memorandum—Goodbody
& Co., 115 Broadway, New York 6, N. Y. Also available are
memoranda on High Voltage Engineering Corp. and Metal

Hydrides, Inc.
American

Co.—^Memorandum—Albert J. Caplan
& Co., 1516 Locust Street, Philadelphia 2, Pa.
Raymond Concrete Pile—Discussion in April issue "American
Investor"
American Investor, American Stock Exchange
Building, 86 Trinity Place, New York 6, N. Y.—$1 per year.
Also in the same issue is an article of Fairchild Camera and
Instrument Corporation, Weather: Profit & Loss; Atoms for

Quebec.

Viscose—Analysis—du Pont, Homsey & Company, 31
Mass. Also available is an analysis of

Milk Street, Boston 9,

Lukens Steel and Sterling Drug.

120

Hanseatic Corporation,

Ruberoid Co.

Broadway, New York 5, N. Y.
.

California Water Service Company—Annual report—California
Water Service

New York 5,

N. Y.

Also available

are

data

Sterling Drug

Lockheed Aircraft.

and

Chivor

Emerald Mines,

Inc.—Report—B. S. Lichtenstein and

Columbia Gas System—Analysis—Reynolds & Co.,

York

New

Southern

available

Also

are

Natural

Electric

Westchester Country

Oil
—

—

Memorandum
(Indiana)

—

Mercantile

Radnor
—

Bank

S. S. White

Donnelley & Sons

sell

—

York

Bear, Stearns & Co., 1

Annual report

—

Analysis

—

Corporation

—

27, 1958 (Philadelphia, Pa.)
Philadelphia
Securities Asso¬
ciation annual
outling at the

High Voltage Engineering
NEW DEVELOPMENTS

Golf

Overbrook

Mawr, Pa. -

Amos

Dental Manufacturing Co.—Analysis—Laird,

Meeds, 120 Broadway, New York 5, N. Y.

Sleepy Hollow

June

Purcell & Co., 50

Analysis

outing at

Country Club, Scarborough on
the Hudson, Scarborough, N. Y.

Standard

;

Bis¬
,

Club,

Bryn

•

Sept. 18-19, 1958

Corp.—Analysis—Halle & Stieglitz, 52 Wall Street,
5, N. Y.

Reichhold Chemicals

(New York City)
of New

Investment Association

New York

R. R.

Township, Pa.

June 27, 1958

Co., Inc., 79 Wall Street, New York 5, N. Y.

United Gas

•

(Philadelphia, Pa.)

Philadelphia summer outing
Overbrook
Country
Club,

Broadway, New York 4, N. Y. Also available are analyses of
ACF-Wrigley Stores, Inc. and Anheuser-Busch, Incorporated.
Telechrome Manufacturing

annual

Lake, Minn.
June 20, 1958

Annual report

—

Company,

- .

Club

Bond

picnic and outing at the White
Bear Yacht Club, White Bear

Investment Traders Association

Company, 910 South Michigan Avenue, Chicago 80, 111.

Treat &

American Marietta

Also available is

(Minneapolis-St.

1958

Paul)
Twin City

Loewi & Co. Incorporated,

Company

Sunray Mid Continent Oil Co.

Current Trading Favorites

Club, Rye,

June 19,

Street, New York 5, N. Y.

Standard Oil Company

financial institutions

—

Service

Building, Dallas, Tex.
Wall

For

1958 (New Yrork City)
Municipal Bond Club of New
York 25th annual field day at

June 13,

Dept. FC, Birmingham, Ala.

Service

Electric

Sperry Rand Corp.

Hotel,

at the Coronado
Coronado, Calif.
Party

Company—1957 annual report—South¬

Gas

Natural Gas Company,

Southwestern

Security Traders Association of
Angeles -annual : Spring

Herbert E. Stern & Co., 52 Wall

—

East Mason

Southwestern

120 Broad¬
reports on

Analysis

Street, Milwaukee 2, Wis.
analysis of Madison Gas & Electric Co.

ern

Company, 99 Wall Street, New York 5, N. Y.

way,

(Los Angeles,

Los

Street, New York 5, N. Y.
225

•>

—

Shakespeare Company —Report

Company, 374 West Santa Clara Street, San

Jose, Calif.
Chance Vought Aircraft—Data—Bache & Co., 36 Wall Street,

—

Calif.)

Street, New York 5, N. Y. :

Bird & Son Inc.—Analysis—New York

June 13-14-15, 1958

Peace, etc.

Bulletin — Marehment and Dixon, 80
Richmond Street, West, Toronto, Orit., Canada.
River Brand Rice, Inc. — Analysis — H. Hentz & Co., 72 Wall

convention at
Bay,

Manoir Richelieu, Murray

—

Ribago Itouyn Mines

(Canada)

of Canada annual

Corporate Profits."

Pyramid Life Insurance

Country

Investment Dealers' Association

Corporation, Boonton, N. J.

Invernes

the

June 9-12, 1958

discussion of "Labor Unions

ing
Club.

135 South La Salle Street, Chicago 3,

Gas

(Toledo, Ohio)
Toledo Bond Club annual out¬

— Fahnestock
111.
report—Pacific Gas
and Electric Company, K. C. 'Christenscn, Treasurer, 245
Market Street, San Francisco 6, Calif.
'
Pacific Lighting Corporation—Report—Joseph Faroll & Co., 29
Broadway. New York 6, N. Y. Also available is a report on
—

Grove,

HinerwadeFs

Syracuse.

June 7, 1958

Organization, 120 Broadway, New York 5, N. Y. Also avail¬
able is a bulletin on Compo Shoe Machinery Corporation.
Co.

(Syracuse, N. Y.)
of Syracuse annual

Club

Bond

outing

Equipment—Data—Moreland & Co., Penobscot
Building, Detroit 26, Mich.
Morrison Knudsen Company Inc. — Bulletin — DeWitt Conklin

(Nashville Tenn.)

May 22, outing at Belle
Country Club May 23.

June 2, 1958

Louis Allis Co.

Old Republic Life Insurance

Hollow

Security Traders As¬
dinner
at
Hillwood

sociation

Street, New York 5, N. Y.

& Co.,

Omaha

May 22-23, 1958

Bertner Bros., 37

York 5, N. Y.

Bankers
party (May
Club) and field

Investment

Club).

Hartford

Company—Report—Van Alstyne, Noel & Co., 52

Lorillard

(Omaha, Neb.)

Association cocktail

Baird & Co., Inc., 110
Wisconsin Avenue, Milwaukee 1, Wis. Also available is

Monroe

America, and Northwestern National Insurance Company.
—

—

of Maryland.

Club

Country

Nebraska

Pacific Gas and Electric Company—Annual

Co., 210 West Seventh Street, Los Angeles 14, Calif. Also
available are studies of Fidelity and Deposit Company, Great
American Insurance Company, Insurance Company of North
Aircraft Radio Corporation

May 20-21, 1958

•,

Cumberland Road, Wethers-

176

Traders As¬
sociation annual spring outing

Baltimore Security

Nashville

Wall Street, New

review of Middle East Oil.

Space Age—Review—National Securities & Research Corpora-

•

Company,

(Baltimore, Md.)

May 16, 1958

Kellogg Co.—Memorandum—Robert W.

—

30 Rockefeller

Light

Industro Transistor Corp.

Street, New York 15, N. Y.
Survey — E. F. Hutton & Company, 61 Broad¬
way, New York 5, N. Y.
Also in the same pamphlet is a

ing at Statler Hotel.

day (May 21 at Happy
—

meet¬

Firms Board of Governors

field, Conn.

Petroleum Situation—Report—Chase Manhattan Bank, 38
Retail Trade

Party.

May 12-13,1958 (Cleveland, Ohio)
Association of Stock Exchange

Rm. 1300, P. O. Box

yield

4, N. Y.

(St. Louis, Mo.)
Dealers

Municipal

Louis

St.

Group annual Spring

report—Gulf Oil Corporation,

Corporation—Annual

Oil

;

Waldorf-Astoria.

at the

ner

May 1 & 2, 1958

Incorporated, 120 South La Salle Street, Chicago 3, 111.
General Electric—Memorandum—Dean Witter & Co., 14 Wall

Y.)

(New York, N.

Security Traders Association of
New York Annual Spring Din¬

Frito

Broadway, New York 5, N. Y.

Hotel.

Shamrock Hil*«n

the

April 25, 1958

Tex.
Bank—Analysis—Diran, Norman and Com¬

National

Franklin

Company, 216 Gold, S. W., Albuquerque, N. Mex.
New York City Banks—First quarter earnings comparison of
13

—

meetlno

Association annual

ers

Natural Gas Company, El Paso,

7,
Q

—

Mal¬

April 23-25, 1958 iHousion, Tex.>
Texas Group investment Bank¬

West 2nd Street, Dayton 7, Ohio.
Memorandum — Sutro & Co., Van Nuys

Building, Los Angeles 14, Calif.
El Paso Natural Gas Company—1957 annual report—El Paso

Japanese Stocks

New Mexico Uranium Industry

Club Inc.

Diners

Com¬

New York.

Investment Field "

leable Iron Company, 1401

16 Wall Street, New York 15, N. Y.
— Current information — Yamaichi Securities

pany,

— James
Winnipeg and

Review

Royal Bank Building, Toronto,

following literature:

Investment Outlook for 1958—Brochure—Bankers Trust

—

173 Portage Avenue, East,

Richardson & Sons,

pleased

in 1958—Review—Nomura

check.
Paper Corporation Limited

Consolidated

Atomic

Business Outlook for Japan

folios giving a weeKiy dividend

Recommendations & Literature
to

EVENTS

Street, New York 5, N. Y. Also in the same bulletin
analysis of Pepsi Cola Company and two selected port¬

Wall

It is understood that the firms mentioned will he

Corp.—Analysis—Francis I du Pont & Co.,

Consolidated Foods

(Cincinnati,

Ohio)
Municipal Bond Dealers Group
annual outing — cocktail and
dinner party Thursday at Queen
City Club; field day Friday at
Maketewah Country Club.

Sept.

29-Oct.

1958

(Colorado

•

Telechrome Mfg.

Bought

—

Sold

are

shown in the progress

CORMAC PHOTOCOPY CORPORATION
COPY AVAILABLE ON

Troster, Singer & Co.

Members New

HAnover 2-2400

Teletype NY 1-376-377-378

East 42

Howe

Springs, Colo.)
National Security Traders Asso¬
ciation
Annual Convention at
the Broadmoor
Oct. 6-7, 1958

Association

Firms

meeting

(Boston, Mass.)
Stock Exchange

Board

Governors

Hotel.

at Somerset

York Stock Exchange

Members American

Trinity Place, New York 6, N. Y.

REQUEST

ROSS, LYON & CO., Inc.

Members New York Security Dealers Association

report of

Stock Exchange

St., N. Y. 17, N. Y., YUkon 6-6700

Ave., Passaic, N. J., PRescott 3-0200

Nov.

30-Dec.

1958

(Miami

Beach, Fla.)
Investment Bankers Association
of
at

America

annual

convention

the Americana Hotel.

Volume

187

Number 5734

The Commercial and Financial Chronicle

(1709)

V'^''*

'' ••'■

■■

^ ^

New Issue

■;;

v:7

$96,877,000

Commonwealth of Massachusetts
2V4% and 3% Bonds

Dated June 1, 1958

Due

June 1,

shown

Principal and semi-annual interest (June 1 and December 1) payable at Bankers Trust
Company,
New York, N. Y., at The First National Bank of
Boston, Boston, Mass. or at The First
National Bank of Chicago, Chicago, I1L

Coupon bonds in the denomination of $1,000.,
exchangeable for fully registered bonds in multiples of $1,000. but not
interchangeable.

Interest

Exempt from Federal and Massachusetts Income

Legal Investment, in

our

Taxes under present laws

opinion, for Savings Banks and Trust Funds in New York, Massachusetts and

certain other States and

for Savings Banks in Connecticut

These bonds, to be issued for various
purposes, in the opinion of the

Attorney General will constitute direct general obligations of the
Commonwealth of Massachusetts for the payment of which the full faith
and credit of the Commonwealth will be

;

pledged

and for such purpose the Commonwealth will
have power to

levy unlimited taxes

all the taxable property therein.

AMOUNTS, RATES, MATURITIES AND PRICES
(Accrued interest

be addeil)

$3,820,000

$93,057,000
Highway Improvement, Capital Outlay, Highway Flood Relief, Recreational,
Drainage and Flood Control, Sewerage, Beach Erosion and Water
3% Bonds due 1959 to 1998 inclusive. '

■Capital Outlay, Veterans' Services and Sewerage
Loan 2Vi% Bonds due 1959 to
1968, inclusive

To Yield
Amount

Due

$4,730,000

1959

To Yield

Amount

$4,296,000

•85%

4,730,000

1960
1961

1.50

1969

1.15

4,730,000

Due

Price

Amount

Due

To Yield

Amount

Due

$519,000

2.60%

1979

3.10%

$233,000

1989

To Yield

■'.3.25%

4,296,000

1970

2.70

519,000

1980

3.10

233,000

1990

3.25

4,295,000

1971

2.80

519,000

198}

3.10

233,000

1991

3.25

4,730,000

1962

1.70

4,295,000

1972

2.90

520,000

1982

3.15

234,000

1992

3.25

4,730,000

1963

1.90

4,295,000

1973

2.95

520,000

1983

3.15

234,000

1993

3.25

4,630,000

1964

2.0 0

4,630,000

1965

2.15

4,630,000

1966

4,630,000

1967

4,630,000

1968

2.50

4,295,000

1974

100

520,000

1984

3.15

234,000

1994

3.25

4,295,000

1975

100

520,000

1985

3.20

234,000

1995

3.25

2.30

4,295,000

1976

100

520,000

1986

3.20

125,000

1996

3.25

•2.40

4,254,000

1977

3.05

520,000

1987

3.20

125,000

1997

3.25

4,254,000

1978

3.05

520,000

1988

3.20

125,000

1998

3.25

•

Tlie»e bondi will be initially issued
by the Commonwealth of Massachusetts at not less than their par value, and a taxable
Rain may accrue
Investors arc required under
existing regulations to amortize any premium paid thereon.

When,

and if issued and received by

bonds purchased at

discount.

and subject to approval of legality by the
Attorney General of the Commonwealth of Massachusetts.

■

Bankers Trust Company

•

The Chase Manhattan Bank The First National City Bank The First National Bank Lehman Brothers The First Boston
Corporation Halsey, Stuart & Co. Inc. Phelps, Fenn & Co.
York
Chicago
of New

Chemical Corn Exchange Bank

Guaranty Trust Company

BIyth&CoJnc.

of New York

Harriman Ripley & Co.

Smith, Barney & Co.

The Northern Trust Company

of Chicago

Kidder, Peabody & Co.

Salomon Bros. & Hotzler

Goldman,Sachs&Co.

Harris Trust and Savings Bank

Eastman Dillon, Union Securities & Co.

Glore, Forgan & Co.

Incorporated

Dreiel & Co.

C. J. Devine & Co.

The Philadelphia National Bank

R. W.

Pressprich & Co.

L. F. Rothschild & Co.

Blair & Co.
Incorporated

Merrill Lynch, Fierce, Fenner & Smith

The First National Bank

White, Weld & Co.

•

®' Boston

Carl M. Loeh, Rhoades & Co.

•

Mercantile Trust Company

Seattle-First National Bank

Ladenbnrg, Thalmann & Co.

St. Lowis

F. S. Moseley & Co.

Shields & Company

Stone & Webster Securities Corporation

Paine, Webber, Jackson & Curtis

Bear, Stearns & Co.
The First National Bank
of

The Boatmen's National Bank

A. C.

of St. Louis

Allyn and Company

Equitable Securities Corporation

Incorporated

B. J. Van Ingen & Co. Inc.

G. H. Walker & Co.

Hornblower & Weeks

Portland, Or«»on

Hemphill, Noyes & Co.

Dean Witter & Co.

Barr Brothers & Co.
,

Coffin & Burr

Dick & Merle-Smith

Adams, McEntee & Co., Inc.

Incorporated

Bache & Co.

Baxter & Company

Francis I. duPont & Co.

A. G. Becker & Co.

First of Michigan Corporation

Clark, Dodge & Co.

Incorporated

Hallgarten & Co.

J. C. Bradford & Co.

Braun, Bosworth & Co,

Incarporated

Domimck & Dominick

Stroud &

Company

Geo. B. Gibbons & Company

Kean, Taylor & Co.

Incorporated

Estabrook & Co.

Incorporated

Ira Haopt & Co.

Alex. Brown & Sons

Schoellkopf, Hutton & Pomeroy, Inc.

Hayden, Stone & Co.

Hirsch & Co.

Laidlaw & Co.

W. H. Morton & Co.
Incorporated

Lee Higginson Corporation

W. E. Hutton & Co.

The Marine Trust Company
of We
•

Harkness & Hill

Chy National Bade & Trust Co.

Incorporated

Urn

Kansas City, Mo.

The Ohio Company

Bacon, Stevenson & Co.

Laurence M. Marks & Co.

New York

R. S. Dickson & Company

Roosevelt & Cross

Incorporated

F. S. Smithers & Co.

Weeden & Co.
Incorporated

William Blair & Company

Reynolds & Co.

Tucker, Anthony & X L Day

Incorporated

Commerce Trust Company
Kansas City, Mo.

R. H. Moulton & Company

Branch Banking & Trust Co.

Ftzpatrick, Sullivan & Co.

Wil.on, N. C,

E F. Hutton &

Company

Bartow Leeds & Co.

King, Qmrk & Co.

Rand & Co.

Incorporated

Chas. E. Weigold & Co.
Incorporated

California Bank

Robert Winthrop & Co.

Townsend, Dabney and Tyson

Bacon, Whipple & Co.

Los Angeles

Tripp & Co., Inc.

First Soathwest

Wood, Strntkers & Co.

•

Robert W. Baird & Co.

Company

McCormick & Co.

Gregory & Sons

Laird, BisseH & Meeds

Eld-edge £ Co.
IncorpMted

Spencer Trask & Co.

Fidelity Union Trust Company

Newark

Incorporated

Courts & Co.

Shearson, Hammill & Co.

American Secm-ities Corporation

A. M. Kidder & Co., Inc.

N«wui>

Blmt Elfis & Smmofls

Baker, Watts A Co.

Wm. E. Pollock & Co., Inc.

National State Bank

Rockland-Atias National Baik
.1 Bo. taw

R. D. White & Company

Third National Bank

Wachovia Bank and[Trust Company
Wte.tM-M.ni

Arthur L Wright & Co., Inc.

George P. Fogg & Co.

Chace, Whiteside k Wisslow, Inc.

Lyons & Shaft®
iMWfWUfl

April 17, 1958.

Statement* herein, while not guaranteed, are based
upon information which

believe to be reliable.

Chronicle

The Commercial and Financial

Thursday, April 17, 1958

(1710)

($) Design

Dollar
By M.

wa3

decline of $400 million. ;;
i

•

the

the Federal Reserve System

would

facts

These

commercial banks have
been
supplied
with ample reserves, which they have used not
only to get out of debt but to
expand
credit contrary' to the
show that

reviews circumstances leading to
Reserve credit policy, and defends

Federal Reserve Governor

Federal

relaxation

"commercial banks have been sup¬
plied with ample reserves."
Mr. Szymczak remarks, for
example, that between November and mid-March banks total
loans and investments increased nearly $4 billion with loans
decreasing $1V2 billion and holdings of securities increasing
nearly $5 billion due to generous supply of bank reserves.
policy in asserting

that

(2)

purchasing

its

power

!'!?!?-!!
stable

?etu™ed

now
vailing

business

cnTnnratTonf
corpoiations,

Federal

governments, and by the

tev„l IPnce

to serve on the

1959 Committee:

d,lscu?sea

& Co.; Louis B. Froelich, of. Per-

University

.Club Current
Events and
Your Invest-

01 .voniGs & DOOKcrj ijcrnaru n<.
gm.
of LaMorte Maloney

ments Luncheon

It will be

final

the

luncheon of

White, Weld & Co.; A._ Vanck semes sponStoutMaurice F. Tc'cept'fncfsof E. Federation of
of Dominick & Dominick;
and
Summers,

and cmnmertheir lowest

Lonfi-tlrm r^tes

Wilma

WomenShare-

F. Hutton & Co.

tmued large volume of new secu- eluded:

tviK.itahip fn thp ppnprous sunolv
tnbutable to the generous supply

*Marlrpft

H?e yew

MntouSratBa h!ahafevelleiThese less sensitive]'also declined but
In addition to Mr. Phelan, the
asthig
tendencies
are
at- jess sharply, because of the con- 1958 Nominating Committee incon

ill

.the New York

sWh
& Cq . w Wilgon Holden>
,Qf CorHes & Booker; Bernard E.

X955

'pre- & Co, Raymond D. Stitzer, of the. spring

Rates

1955.

bv^Lte*
bankers
locai lleS*dna

ana

otate

to the average

early

„

Market
P2 l!Ip °LS®
^
nJ S5
<h°lder. m-relation to his or her
company-, will
5

iNominaiing eommii .Saturday,
proposed the following
Anril
19
at

ands.^okn P* Baker, Jr., of Reynolds
One & Co.; Benjamin E. Billings, of
result of this marked liberalization Thomson & McKinnon; Bertram
Of credit has been the sharp de- J; Fagenson, of B. F. Fagenson

MSS,,WCb1en0nexnaannding ean<

—

a s

possible.
(3) As Chicago
has
grown
mate¬
rially, spiritu¬
ally, and cul¬
turally, so has

y6r„

„RW

Commit-

Nornjnating

1q(ro

by buying securities
making loans on securities.

the

been

has

What
what

Th_
i

•

for

uses

Barney & Co.

Changes
nlinp
in
infprpct
ratp<?
The rate
impact 01 cnne in inierest rates ine: rate
impaci of
these changes? While business acTreasuiy b
which
p
s
uicbc cue* o
#
,
•
j
' rafjiov scnsitivGlv to the changes
remains tivity has been slipping into a ratnei sensitivey to ne c a g

vital

•

other

Scholle, >an individualsmember,
abd Charles B. Harding, of Smith,

loans,

business

found

have

banks

William

were

CV6niS Sntl inVGStinGlltS

which

funds

Impact of Reserve

The strength of our dollar
,mic
to our economic growin.
growth.
Our dollar is strong when

(1)
is

Exchange,

usual seasonal nattern Desnite the
usual seasonal paxiern. uespiie xne

liquidation

Gratuity Fund, from

payments are made to the famiues 0f deceased; members of the

seem

«...

CoamIa ahiI 1

Re-nominated to. be Trustees of

Ample Reserves Provided •?-

S. SZYMCZAK*

of Governors of

Member, Board

the public. Elections will be held TA Ifieftlicc fliirranf
May 12.
y\

S800

about

increased

year

million, whereas a year ago there

Sosa

holdersin
American
fred May,

Business, Inc.
A Wil¬
Financial Editor, "Com.

E(Jward p_ Beckei, o£ MeDon. mercial and Financial Chroniele
"ty flotations. Mortgage interest
Edward F. Becker, of McDon- mercial and *:inanciai <-^mcie
rates have been coming down.
.neH & Co.; Arthur C. Bnggs, of George Haney, General Partner of
In summary, it may be observed Delafield & Delafield; Phillip W. Kerbs Haney & Go., and Joseph
(4)
The
financial
sharply, these banks have ex- «iat the central banking system Brown> of Smith> Barney & Co.; ^ ^Phnadeiohia^ Bulletin " aSstructure
had
panded other types of credit by has
supplied reserves liberally Edwin jj Crandell, of Blair S. ^e Philadelphia Bulletin
amounts that exceeded the bust- since
the time when indicators Williams & Co.; Lloyd W. Mason, ^Lr" wmL e^est sneakers
to
be revised
ness
loan
liquidation and have reflecting all types and aspects of 0f Paine, Webber, Jackson & Cur- holder will be guest speakers,
so
that
the
simultaneously
reduced their business, confirmed the fact that tis; Emil J. Roth, of Hirshon, Roth
Wilma Soss, Analyst of Pocketdollar
would
M. S. Szymczak
borrowings at the Reserve Banks th.e bulk „of11busi(ietss activity had & c0 . Edwin H. Stern, of E. H. book News, NBC Network, and
retain
its
negligible volume.
A true slipped off the plateau character- stern . & Co.; and George H. President of the Federation of
strength and thus aid the eco¬ to
understanding of what has hap- ized by rolling adjustment and Walker, Jr.,"Of'G. H. Walker & Women Shareholders will be mod?
nomic growth of our country.
downward
into
Secretary of erator.
A question and
answer
Co., who acted
(5) It is the purpose of central pened can be secured only if the was
trending
the Committee.
period will deal with stockholder

Even though
business borrowing from commercial
banks
has
been
reduced
bank

country

our

grown.

reserves.

seasonal
movements are recession,
taken into account. For example,
required by the economy.
total deposits at banks, including
(6) When the economy is on the time deposits, have increased durdownside, more dollars must be ing a period when they usually
provided readily.
decline.
(7) As the economy is on the
j^0|.
be COnfused by the large
0Edward C. Werle, Vice-Chairinflationary side,
restraint must seasonai movements at year-end, man of the New York Stock Exbe administered in the volume of it is necessary to appraise the net change, has
been nominated to

add to or take away
from the supply of the dollar as
banking

usual

problems.

Werie Nominated for

(Special to The Financial

N. Y. S. E. Chairman

available

made

dollars

the

shift

1957 to March

23656 Pacific Coast

This is not

12,

Nov

1958>

banks in leading cities
and

cut

their

creased

total loans

(adjusted)
by
about
$3 3 bmion> whereas, during the
supply the dollars that were in comparable period of the previous
demand.
year, this total had actually de(9) The record of Federal Re- creased by over $500 million. This
serve
actions since mid-October year commercial loans and conmay be summarized as follows:
sumer loans decreased about $1V2

any

operations

market

be obtained through

holders '

of such debentures. The offering is

offer to buy. or a solicitation of an
made only by the prospectus.

offer 10.

vestments

■:{ $25,000,000"

Open

Hi'wav

offering of these debentures for sale, or an

buy,

the Federal Reserve did not

(a)

may

in-

result, went up because of the
lor
the
dollar and be-

used, beginning in the second

were

tickets

bi¬

demand

cause

William L

Corp., 23656 Pacitic Loast til way. noiaers.

November,

late

From

rates,

Interest

administered.

was

—

man.

with

Calif.

women.

serve

comparing the current

situation

effect

1955, 1956, and a
of 1957, restraint

During
portion

large

monetary

policy by

economy.

(8)

MALIBU,

to men as

Proceeds go for
stockholder education.
Luncheon

well

Chronicle)

Qran^ js with Malibu Investment the Federation of Women Share-

i.v

The luncheon is open

With Malibu Investment

billion as compared
ag'Q increase of $350

Diamond Gardner

with a year
billion. Bui

in amounts smaller than necessary

holdings of securities and loans or
securities increased by nearly $5
billion this year as compared with
a year ago decrease of over $V2
billion. Assuming that last year's
movements represented a normal

usual seasonal variations

Corporation

(formerly The Diamond Match Company)

4% Sinking Fund Debentures

seasonal pattern, it may be said

half of October, to add to reserves
of the banking system. Securities

purchased during November

were

and sold in

December

and

cover

larger

amounts

January and February

in demands for bank

and

reserves

currency.

(b)

Federal

The

Sv<?

Reqervp

!nent for seasonal variations, have

three times. It is

increased by nearly $4 billion.

Districts,
31/0%

21/4% in all

with

compared

summer

after

prime loan rate of large

the

com-

rate

mercial

last

the

set

banks

had

been

pushed

upward by loan demands to 4%%.
x

deposits
a

member

1, thus releas-

banks

$1 000 million

re-

stages around

Tv/r!0?^ ■? and April
a1

March
ing

for

requirements
have been

Reserve

(c)

oemand

reserves

Coleman
Dated April 1, 1958

Time Denosits Grow

lime Deposits Oiow
Time deposits at city banks in
the same period showed a specta™\ar. ?2 /a b.llllon increase,
,,

c
^!emSn' u forme5 y
Chairman of the Exchange for
four one-year terms and a Gov-

ernor for 11 years

nos&hJ™oW

expansion
ago

year

of the same period a
tba{ was stimulated by

these deposits. Demand

V /

•

expired in 1947. He is a
partner in the specialist firm of
man

deposits

The

Committee,

Nominating

Committee,

iNominating

Ine

uC1WBiM

vear

deposits have not decreased as they did in the same
period

ter

ago.

year

J
well, an mdmd^
x? y-);
SUrnAr
V
%r\S'

below

were

and
of

by mid-January

half

further

than
of

reserves

tinued

billion.

reduced

February to

less

January
negligible level

member

They

$100 million.

Excess

banks

half

con-

billion

dollars.
*An

Since

the Chicago Association of

Industry

and

the

Commerce6a°nd

Chicago

Chapter,

ofa|958s Ho'nor°'awa'r'd" p.'o.rLr^:
Outstanding
In

Chicago,

Architectural
April

10,

The First Boston

Corporation

ago, required reserves de¬
$a/2 billion, and two years
ago $*4 billion. The reduction in
reserve requirements released $y2

billion

reserves

March

and another $a/2

later.

Banks

from

the

have

obtained
seasonal

usual

billion
funds
return

of currency and these addi-

tions to the reserve supply have
llOt

been

+•

ffh

Achievements

1958.

year

years.

Offset

by
'

Open
j

market
t»

H. De war, of De war, Robertson
Pancoast (San Antonio); James
Qri

31 ^

the Federal Reserve

so,

free reserves this

Harriman Ripley & Co. Kidder, Peabody & Co.

Goldman, Sachs & Co.

Incorporated

Merrill

Smith, Barney & Co.

Lynch, Pierce, Fenner & Smith

Stone & Webster Securities Corporation

White, Weld & Co. Riter & Co.

Hallgarten & Co.

W. E. Hutton & Co.

Hornblower & Weeks
.

rtrr.v.

„

Paine, Webber, Jackson & Curtis

Two Governors were re-nominated to serve three-year terms

Wood, Struthers & Co.

Walter F._ Blaine,

Alex. Brown & Sons

F. S.

Moseley & Co.

w/r

ucag'o), and Henry M.
wdt/
/\f Cv
Watts & Co' (New York Clty)rn

Drexel & Co.

Dominick & Dominick

Clark, Dodge & Co.

Equitable Securities Corporation

Goldman,

Dean Witter & Co.

Bacon, Whipple & Co.
El worthy

& Co.

Blunt Ellis & Simmons
Estabrook & Co.

Sachs & Co. (New York City);
m

Meehail & Co. (New York City).

Total membership of the Board

same extent as in other js 33^ including three Governors
And

& Co.

year

this

Eastman Dillon, Union Securities

Co. (New York City);

member banks has been negligible;

flow

address

Blyth & Co., Inc.

clined

was

dealers in securities and in

was nomi-

tbe raisjng Gf interest rates paid Adler, Coleman & Co.
on

borrowings, which averaged
about $1 billion in the third quaryear,

be obtained from any of the several under-in which such underwriters are qualified io act as
which the prospectus may legally be distributed.

Copies of the prospectus may
writers only in states

nated as Governor for a three-

ernment

accrued interest

which is over twice the dramatic year term. His last term as Chair-

changed amount while U. S. usual & Co., nominated six other new
by close to the Gov- Governors for thrpp
seasonal
terms-

these

the

Price 100% and

wot°°'

in-

relation

.April 1, 1983

** elected Chairman, Mr. Werle,

the
the demands for bank credit and growth in deposits has taken place
currency to permit member banks largely
in time accounts rather
to reduce rapidly their borrowings than
in
demand
accounts,
the
at the Reserve Banks. The level of effect on required reserves at all

Due
_

...

the

creased, and the System provided
reserves

John

w ci.e

reserves ot o£ buslness and individuals have headed by John J. Phelan of Nash

By these various actions
availability of reserves was
sufficient

v..

wno was formerly a Chairman oi
American btock Exchange for
that, between the end of Novemr^e yeai's> would • thus be the
ber and mid-March, total loans
m£*n to serve as Chairman
an(t investments, after adjust- °* Fie two Exchanges. He is a

tem has reduced the discount rate
now

Lurtu.

appointed

representatives

McCormick & Co.
April 16. 1958

Schwabacher & Co.

illiam R. Staats & Co.

Volume

187

Number

5734 .'

The Commercial

and Financial Chronicle

(1711)
operations

General Skepticism About Oils and
Relative Values ia the Offing

the

Ilaydon, Stone & Co., N. Y. City

...The second
abroad

Investors contemplating oil equities or reviewing present holdings receive double-pronged guidance from petroleum, analyst
Fourton. The usual explanations for oil stock decline are

well

by Mr. Fourton who explains decline in terms of
/ seven fundamental vicissitudes affecting the oil industry. This
explanation and eleven different outlook statements covers
-

is due to

summer

conditions

*of

causes

far-reach¬

the

simple

ex¬

inven¬

cess

tories,^w.e a k
pri.c e s a n d

Venezuela,

would

2,000

take

produce

good

barrels

wells

outs in the U. S. have been
<

tended
the

;

recent

ex¬

that only

years

efficient operators, such
Shell, Humble and Continental,
most

growth.

since California crude oil produc¬
tion has long since passed its
peak

ered as a serious problem but the
present need for restrictions may
become academic sooner than ex¬

especially valuable to a com¬
pany operating on the West Coast

obvious

ex¬

planations for-

and

the

Alaskan

current

steadily
oil

Imports

now

consid¬

are

pected.- Severe limitations

declining.
Also,
barged down

im¬

ports-may, be eased substantially
-within five years.
Many compa¬

can

lower level of

the

earnings actu¬
ally cover up

important, is the fact that Alaskan

nies

crude is hot

ing large scale production abroad.

many

basic

complexion of
There

dustry.
have

Leslie

in¬

oil

been

Fourton

fundamental

seven

pact

changes which have become im¬
portant operating factors for oil

with

some

refiners.
(5) The economic shift of crude
oil supply sources.
(6) The further loss of markets
to natural gas and coal.
(7) The trend toward a new
basis for pricing crude oil and re¬
fined products.
\
;

form
sion

subjects could each

seven

for

basis

the
to

discus¬

full

fully document or prove
just to refer

each one.' However,

briefly to each may assist in mak¬
ing future decisions when select¬
ing oil equities or when review¬
ing present holdings. Entry Into Foreign Areas
The foremost item of change in

the complexion
to

of the oil industry
rapid headway last year

gain

The

was:

entrance

basis

scale

domestic

able

foreign
well

areas

known,

most

oil

the

large

financially

companies

of operations.

concessions

new

into
As is

offering of the
in

Venezuela

precipitated something of a gold
rush abroad.
With very few ex¬
ceptions, every important inte¬
grated and: producing company
paid hugh sums for choice acre¬
age in Lake Maracaibo and other,
areas.

Some

seem

think

that

this

ill-conceived

expensive
effort to gain near-term advan¬
tage in U. S. marketing operations
or to
crash into foreign markets.
was

they

tend

toward

develop¬

that

growth

outstanding,
of

Texas

capacity

lag
in

would
domestic

behind
demand.

This

would

the expansion of import
quotas; and give the consumer the

the

Continental

are

reserves,

should

reserves turned

down.

first

has

benefit

continued

Ohio-

Group in

fact

products.

the

stretch; out

low

conservation

prices

The

importance of a high level of in¬
tegration. Today, unless an oil com¬
pany is well integrated from pro¬
duction

The

for

stock

its'

price

are

instance, Amerada is

If there

were

other
or

producers
even

High cost of offshore drill.

Decline^

the

discovery

(9) Rising drilling cost
(10) Tightness of money.

•

the

whose

appear

contract

drilling business

often take part in¬
terest in drilling ventures and or¬

integration it I There are a number of addi¬
tional reasons but the
foregoing
advisable for in¬

relegate producing
smaller

part

give
com¬

the

appear

oil

main

that

causes.

the

quality companies such

Continued

page

quite obvious that domestic
at

are

solicitation oj

ojjer to bay securities.

New Tssue

April 16, 1958

$15,000,000

Belgian Congo

Fifteen Year 5V4% External Loan Bonds of 1958

These conditions also make it

panies

or a

Due

com¬

April 1,1973

serious disadvan¬

tage when competing in the U.
against low-cost imported crude
oil and refined products.

(2)

The

costs of

crude

generally

Price 98V2%

uneconomic

replacing current domestic

plus accrued interest from April 1, 1958

oil

production.
And it is
obvious that restricting producing "
operations to the U. S. does not
allow the employment of available
funds to the best advantage.
To

illustrate

which

is:

the

first

Copies oj the prospectus

be obtainedjrom such oj the undersigned (who
in the. prospectus) as may legally
ojjer
these securities under applicable securities laws.
-

greater

growth of
earnings of the international com¬

may

are among

the underwriters named

cause

;

„

•

.■

*■

panies, we may compare earnings
for 1954 with those of 1956.
Using
1957 would distort results because

Dillon, Read & Co. Inc.

of the

extraordinary shipments to
Europe, the disruption of opera¬
tions in> the Middle East and the

sharp curtailment of allowables in
the

With

1954

used

peat: internationals 137, domestics
127 and producers 115. Cashflow
is losing significance as a meas¬
factor

The Dominion Securities Corporation

•

an >

index equalling 100, the 1956
earnings of six internationals rose
to 137, ten domestics rose to 127
and five producers to 115. To re¬

urement

Blyth & Co., Inc.
Eastman

Dillon, Union Securities & Co.

Goldman, Sachs & Co.

Ladenburg,ThaImann&Co. Lazard Freres&Co.
White, Weld & Co.

Hallgarten & Co.

Merrill Lynch,Pierce,Fenner&Smith

Bear, Stearns & Co.

Dominick & Dominick

replacement

costs accelerate.

Rather, the effort was an astute
To illustrate the greater stabil¬
a high-cost calculated
risk in the interest of gaining ex-- ity of profits of the internationals,
we need
only look at the sustained
tensive
low-cost
crude
oil
re¬
high level of earnings in 1957 and
serves for the future.
the outlook for a continued highSuch concept also applied to the
level

Hayden, Stone & Co.

Lee Higginson Corporation

Carl M. Loeb, Rhoades & Co.

assuming of

rush to Alaska after the Richfield

*An

the

New

address

Ass-ciai

York

City.

by
of

Mr. Fourton before
Customers' Brokers,

performance

point made
erations

wells of

applies

1958.

flexibility of
to

the

Riter&Co.

R. W. Pressprich & Co.
L. F. Rothschild & Co.

Reynolds & Co.
Salomon Bros. & Hutzler

The
op¬

prolific

Venezuela, Saudi Arabia,

Kuwait, Iran and Iraq.

Model, Roland & Stone

Shutdown

Shields & Company

Swiss American Corporation

the

term.

Amerada and Louisiana Land.

ojjer oj securities jor sale

would
for

reasons

drilling decline are mostly longMany again project a sharp
drilling upturn later this year.

portfolios and emphasis should be

The

owners

;

(1) The awareness of domestic
companies' of the above average,
gains in operations and earnings
of international companies.
Also
there is
the recognition of the
flexibility of foreign operations
and the greater stability of prof¬
its.

(11) Rise of imports.
(12) Decline in the profitability
of

make

This announcement is not

ex«#

drilling.

ganize syndicates.

this point

the best

cli¬

of large fields requiring
tensive development

investments.

regulatory

rate

foreign wells are being
large company neigh¬
bors,' who find it easy to dispose
of their oil in "captive markets"
overseas while non-integrated
companies face the loss of heavy

for the

risks.

(7)
ing.
(8)

its

1942.r There

reasons

Uncertain

poor

today

greater prob¬

drained by

panies, to

(6) Unwillingness of private
syndicates to :t a k e increasingly

ample of the problems of smaller
companies. The company alleged

would

to¬

was

(5) Large sums allocated for
foreign operations.

Signal, in its testimony sup¬
porting a request for an import
quota, furnished a dramatic ex¬

mate for natural gas.

lems.

that

number

(4)

markets,"

Many

drilled

*, (3) Diminishing availability of

excluding most of the
curtailed capacity in prorated

have similar

wells

In 1957, there

good drilling prospects.

even

states.

(2) Slowdown of building pipe¬
lines to new producing areas.
\

now

the. company could quickly double
its production to possibly 175,000

BPD,

...
(1) Extension of payouts due tol
lowering allowables.■
«
*•

the

producing about 85,000 BPD vs.
100,000 BPD at the peak of the:
Suez crisis.

1956.

long steady drilling decline dur¬
ing the past two years:

company's shares usually reflected
this. Now the picture has
changed.
For

number

wartime reduction in

production.

new

summer

7.4% drop to 53,800 reflecting the
largest drilling decline since the

market

the:

trend of
This change

many al¬
to be noted first as

the

taled 58,300.

handicapped and highly cyclical.
In the past, a
producing company
after making a good oil
discovery
felt reasonably sure of a
waiting
market

the

surprise

was

back

the

through
transportation,
refining and marketing, future
growth is likely to be greatly
-

three

However, the full impact of the
forces causing the downtrend was
not felt until a
year later, In 1956

The rise in

was:

though it

important industry

year

number

reversal

drilling in the U. S.

far

second

change last

and

Major

appeared

vestors to

reserves

Change

This is the

happened

Industry's Integration Trend

matter

move

this

fourteen years.

encourage

for refined

time

Changed Drilling Trend

chases from independent

These

mestic

even

important news.
Other groups or single
companies
(2) The rise in importance of
are
^exploring or arranging con¬
a
high level of integration.
'
cessions in such areas as North
(3) The major reversal of the
Africa, the Middle East and Turtrend of drilling in the U. S.
•
key.
(4) The major company shift
:: <
why Expand Abroad
toward supplying a greater, part
Behind the significant shift to
of refined product requirements
instead of relying on large pur¬ foreign areas are two causes:
:;
erations.

headed

the. Gulf of Paria between Vene-v limit
productive capacity already
zuela and Trinidad. A very
"tight"
hole there is to be tested soon. It may be underway. The American

entrance,

scale basis, of .most

panies

Cities Service-Richfield

on
a
large
domestic com¬
into foreign areas of op¬

The

is the

of the others.
The
major shifts are as follows:

(1)

million shares, or
estimated 4.7 million

conversion

many

seven

are

Because

assuming
recently an¬
nounced debenture financing.
V There
are many other instances
changes, because •>'
interrelationship like the case of Richfield. There

ing of the seven
has

very

would

companies. Before discussing each
factor it may be helpful to in¬
vestors to have a provisional list¬
each

And

cost.

faced with the
cepts. Richfield, it is understood,' difficulties of breaking into for¬
hopes to have 30,000 to 50,000 bar¬ eign marketing, such companies
rels daily production within three may curtail domestic expansion in
order to make room for oil from
to five years for its planned re¬
abroad.
finery in the Puget Sound area. properties
By
holding
back on the development of do¬
One can guess at the
earnings im¬

changes in the
the

low

foreign oil subject to
quota, at least under present con¬

signifi-

cant

coast

Petroleum Institute annual
report
shows the trend of U. S. crude oil

expansion
return

oil is

slack demand.

Those

se¬

to name a few, have been able to
discovery. Signs now point to a;• develop dow-cost production and
big play up there too.For,; ex¬ look forward to continuous profit¬
ample, Richfield made a deal with able operations—even to the point
Standard of California, with the of competing against imported oil.
Investors should consider for¬
latter agreeing to spend up to $30
million, of which $17 million is eign operations foremost when se¬
firm, for a half interest. Alaskan lecting oil stocks for- future

highs of last

than

as
or

much;
and that assumes a 50 barrel
daily
allowable, which is unlikely. Pay¬

•

The sharp decline in the prices

ing

for

greater

produce

Oklahoma1 to

changes in the complexion of the industry and prospects for
'."'TV
.'// ' the industry in the offing.
*

of oil stocks from the

cause

the

can

daily.

dismissed

investment.

•

country
1951,

verely curtailed productions from
another, as in Iraq during the
crisis, and the other coun¬
tries quickly close
up most of the
supply gap.

one

Iran

Suez

By LESLIE E. FOURTON*
Assistant Manager of Research,

case

Wertheim & Co.

Financial Chronicle

The Commercial and

Thursday, April 17, 1958

(1712)
the. Soviet camp, ance Program will be spent right
to lose this cold here in the United States. We esti-

into

world and

We cannot afford

Impact oi Foreign Aid on
United States Businessmen
By IIOX. C.

DOUGLAS DILLON*

Economic Affairs

Secretary of State for

Deputy Under

Department of State
Board Chairman, Dillon, Read & Co., New
Former Ambassador to France

Former

without gravely

national

our

banker,

economy

now a

foreign aid program sooner or later
is pointed out by former investment

state department official in charge of economic
apprises businessmen that such aid is:

affairs., Miv Dillon
very

counter the Soviet

recent

and

the

ation Admits

istration and
the Military

Assistance

Program of

Douglas Dillon

the Depart-,

Now

by other loaning

don't

lion, for
to

out

Pro¬

the

gram.

We are not trying to give

living. /
We

American standard

our

everyone

;

trying

are

part of the world. We
trying to help the peoples of

sion in any
are

Africa

Latin

and

America

ing. It is in our own national selfinterest to

millions

ket

can

J„

Asia,

largest

to achieve a decent standard

1.443
point out

need

that this $1,443 bil¬
equipment fans
hundreds
of
sub-con¬

miltary

of liv¬

get these hundreds of

people into «the mar¬

place of the world where they
buy the goods of the world's

—
America. This
improve the buying
power of one-third of the world's
population should, appeal to every

trader

program

businessman.

to this group

the

Security

Mutual

under

Military Equipment

•

This economic war

with Russia

challenge to you as business¬

project.

this

for

million

this newly
assigned responsibility is to en¬
The objective of
our

strength of our be six and a half minutes from a
During this missile fired by submarine.
time these allies have spent
Today we understand that there
than $122 billion—or better
is an interdependence of nations.

build the military

De¬

that

basis,

agencies such as
Export-Import Bank and the
World Bank. We are asking $625

world

the

friends

Ceqwrit^Progr^

tional Cooper¬

sure

live

that

buy

theYnterna-

fense.

fill

trying

Without tractors and suppliers in every men. We are the world's largest
lenge we have entered into a these funds we would be entering walk of American life. A recent exporter and the world's larg¬
est importer. We have the highest
system of defensive alliances with the ring against the Soviets with non-Government witness
before
standard of living Li the history
«cu
42 nations of the free world. And, one hand tied behind our backs.
Congress stated that in his opinion, standard ot living 1.1 tne mstory
as
the strongest link in this de¬
Most people in America today one ^ifiph JolBf were" directly or of
the world and we are, unfensive chain, we are playing the
appear to have given up on tbe
[reef IV
due tto
the
Mutual questionably, the world's most
dominant role in building
total nineteenth century/concept that
• Those
of- us -privileged people.
AHonrte
and
We are
strength to deter further Com¬ «,» Atlantic and Pneifie Oceans
the
Pacific ("Wan**djrecay'"connected with this pro- '"""'-"--'- being 'challenged in a
munist expansion. We do not play constitute a heaven-sent protec¬
field where we are the defending
gram
have never used a figure
the dominant role from a money tion from attack. In the world we
higher than
600,000 jobs. But, champion. We are being chal¬
3i* manpower standpoint—only in
live in, Chicago is six and a half
materiel.
Since
1950
we
have hours from Moscow by bomber whichever figure you prefer is lenged by a nation whose own
spent approximately $20 billion to and Washington, D. C. may well very
sizable;
and
this
hardly standard of living is lower than

activities of

able

not

clear

make

Program
world.

free

False Charges

Answers
Let

of the

and listen to this one—

often repay¬
in local currency, and they
need which can not be met

attractive

of these is
the military challenge of the
Soviet Bloc. To meet this chal¬
we

coordinating

ment

progress in
in. The first

peaceful

responsibility
includes

na-

our

challenges

two

face

pro-,

Th i

grams.

Meets Two Challenges

foreign poli¬
cies

Peace

nations

70
35

Grains.

Bread

Cotton

tional self-interest.

other

this.

about

reorganization
State,! I was
assigned responsibility for coordi¬
nating the Mutual Security Prog r a m with
Under

at the Department

Millions
of Dollars

•.

Security
funds to
the newlydeveloping countries for projects Chemicals
that will help them along on the Petroleum
Motor Vehicles
road toward industrial develop¬
ment. These loans can be made on Coal

military challenge.

Security

Mutual

the

bined with ours will deter aggres¬

■

Mutual

lend

can

the

build strong
allies—allies whose strength com¬

this
Item
.
economic competition is on the Machinery & EquipmentDevelopment Loan Fund, through iron and Steel
which

Here are some of our
purchases in one year in the

reliance

pur¬

mentioned
is the tidy sum of $58 million
which was paid last year to U. S.
flag exporters to carry the goods
have

are

economy.

;<'■

chief

Our

direct

the

which

I would like to use a few dollars
and cents figures to give you an
idea of just what this program
means
to the industry of the
United States and to our entire

Queensbury United States:

rules.£vjT:\.:^

strong

and support to

omy.

living

Marquess

any

plank in the anti-recession drive"; (2) man¬
datory so long as U. S. S. R. intends to woo less-developed
nations with loans and grants into its camp; and (3) much
smaller than generally supposed since out of requested
$3,942 million about $2,635 million is for military assistance
(1) "a

funds will be used to buy the
products of American farms and
factories. And practically all the
rest of the money will sooner or
later return to bolster our econ-

will change
radically
if
the immense raw
material resources of the Middle
East and Far East are denied us.
It is certain, too, that the Soviet
Union does
not intend to fight
this economic war according to

York City

Security

of every dollar of Mutual

security.

standard

The extent to which our
bolsters

mate that between 75 and 80 cents

endangering
The challenge is fully as important as the
military challenge. If these new
nations slip one by one into the
Soviet orbit, we will become beleaguered, encircled, and finally
strangled. It is certain that our
war

our

addition

chases

economic

foreign

direc¬

policy travels in the same
tion as our foreign policy.

Both

same
more

seems

than $6 for every

workers

put

to be the time to

these

allies.

world

free

into

the

any

job

of that of some of the

rules.

pool,

are

countries she

being challenged

dollar we have

Space
weapons
make
distant
peoples our neighbors. The theory
of dispersal of men and bases and
total the need for
strong allies seem

spent. Their contribution in man¬

policies have the same goal and
that goal is to advance the secu¬
rity and well-being of the United
States and its people.

comes

power

million

men

larger than the en¬
of the United

considerably
tire

armed

more than
under arms, a

apparent. And these are
goals of the Mutual Security

The

solicitation of offers to buy any of these

offering is made only bythe

securities.

Prospectus.'

readily

forces

the

States.

travels and talks in vari¬
Program.
The second challenge we face in
parts of the country—and in
Now, some may feel that the
Washington, too—I frequently get striving for peaceful progress is an Mutual Security Program is well
Since World War worthwhile but
the impression that people think economic one.
hardly the kind
there is nothing "mutual" in the II, 20 new nations have come into of
activity we should be indulging
Mutual Security Program.
They being. These 20 nations have about in when 5,200,000 Americans are
750
million
people. They total
seem to feel that we take our na¬
reported to be looking for work.
tional budget, decide
somewhat nearly one-third of the world's
Not A "Do-Good" Charitable
arbitrarily that 5% of it should be population. Each of these nations
Program
allotted to this thing called "for¬ has emerged from years, some¬
In my

This advertisement is neither an offer to sell nor a

April 16, 1958

NEW ISSUE

ous

eign aid" and that we then hand
over this sum of money
for the
nations of the free

times centuries of colonial

world to spend

they ses fit—with perhaps
modest amount of supervision.

Each

had

has

status.

intimate,

close,

hoc

the needs of
in building

the free world nations

has
the
20

"rlicnntrororl"
"discovered"

million

750

their defensive strength are not
bullying and
supplied by the recipient countries. The military estimates are
j^Yf
.

of
acting through Military

Defense

by the Department

Groups

Advisory

Assistance

cision
every

the

some

bullets,
=

the

unable to afford our own
security. The entire Mutual Se¬
curity Program costs each of us
the
equivalent of an air mail
stamp a day; and I might point
out that the $3.9 billion for this

rvf
of

com...

the

countries.

control

strings and continue to
every
step of the

them

way."

S]derable headway.

same
seems

tions

spend

of what we
i:,.,.,..,

thinks

anybody

disregard

for

truth

that

less developed na¬
democracy is a

VYXva!

Price 100.90% and accrued

1, 1988

interest

Mutual

the

Security Program is a

"jio-good"

charitable proposition, they might

interested

what

General

Copies of the Prospectus may be obtained from any of
only in Stales in which such

Twining, Chairman of the
'stalf, has to say

Nathan

the several -underwriters

chtefs ol

Joint

underwriters

are

cold

are

qualified to act as dealers in

and in 'whrch the Prospectus may

facts

the

securities

legally be distributed.

matter

that the security of the United

States

tive

turn,

depends

security

upon

system,

depends upon

assistance program.
some

collec¬
which, in

our

There

The First Boston

Corporation

military
may

Eastman Dillon, Union Securities & Co.

Drexel & Co.

alternative to collective se¬

our

Merrill Lynch, Pierce,

Lehman Brothers

Coffin & Burr
Incorporated.

Equitable Securities Corporation

Dick & Merle-Smith

Hornblower & Weeks

Fenner & Smith

Carl M. Loeb, Rhoades & Co.

F. S. Moseley & Co.

wJLlVr

r„?f! PPrn0rL?f ian IhptUc1mn?v'%This economic cold war between aspects of the matter," "the"Mutual
stated We seek peaceful progress ~htefSoyiet Union and ^ United Security Program
can be conYwL
th«

Statesiis waxing warm. They have the anti-recession drive.plank in
sidered a very strong Accord¬

entire community of wooed the less developed nations
nations. There is nothing altruistic with
$1.6 billion in loans
and

among

before the
National Security Industrial Association,
Washington, D. C., April io, 1958.
•An

Due March

Dated March 1, 1958

liquor and tobacco.
If

3 % % Bonds, Series T

each year for

„J

"The

to characterize their actions.

They tell the
.

Technical Co¬

First Mortgage

year's program is about one-fourth

curity
and
military
assistance.
"freak," a "phony." They don't Maybe those who make the broad
operation and the other forms of tell them that 6% of the world's
charge that all money spent in
grant
assistance are made by peoples living under this democ¬
this area goes down the rat hole
specialists
within the Interna¬ racy produce 40% of the world's
know what the alternative is but
tional Cooperation Administration,
goods. ;. As" Winston
Churchill so far no responsible military
with the help VX CAX VU Clliw t-UUlllX(y
• _.t j
of area and country
some
freak,
some man has been able to think of it."
specialists from the Department of
„say
phony.'
State. And again let me say—we
It's Anti-Recessionary
control the spending.
Cold War Waxes Warm
But, aside from the security
The estimates for

Company

places they have made con-' about it x quote:

The communists are mounting
of who gets how much in this offensive with the same zeal,
instance. And we control the same determination and the

the purse

Commonwealth Edison

the

of being

these
bluster,

H _.all
to
win

effort

security

people

indeMndart

as-

signed to the country or area. The
United States makes the final de-

ments

ovictonno
existence

Instead

nations.

drawn

involves

program

of
the
United
States
personal relationship with disease, —directly and indirectly, now and
ignorance and poverty.
for the future. We are not now
The
United
States
has
been and must never be in the position

trying to help the peoples of the
Mostly Military Aid
less developed nations since the
end
of
World
War
II.
During
The exact opposite is the truth
Stalin's
lifetime, Russia
of the matter.
This year we are Joseph
showed not the slightest interest
asking the Congress for $3,942,in the hopes and aspirations of
000,000. Of this amount, $2,635,000,000 is for military assistance these peoples. But since Stalin's
death in 1953, the Soviet Union
and defense support.
The estimates

This

$50,000,000

address by Mr. Dillon

grants during the past three years
With

the

ObviOUS purpose

leading them

away

from the free

Assistant
Defense, approxi¬
mately 85 cents of every dollar
spent under the Military Assist-

ing

Mr.

Secretary

Sprague,

Tucker, Anthony & R. L. Day

Paine, Webber, Jackson & Curtis
Francis I. duPont & Co.
Bacon, Whipple

& Co.

The Robinson-IIumphrey
R. S. Dickson &

Company

Incorporated

Reynolds & Co.

llirsch & Co.
Company, Inc.

Granbery, Marache & Co.

Weed en & Co.
Incorporated

Laurence M. Marks & Co.

Wood, Struthers & Co.
E. F. Hutton & Company
*

Volume

187

Number

5734

The Commercial and Financial Chronicle

(1713)
by

nation whose per capita in¬
is $308 as compared to our
capita income of nearly $2,500.
But
we
are
also
being chal¬
lenged by the nation with the
second
highest
Gross
National
a

from

Significance of Oil Imports
For Today and Tomorrow

come

per

Product in

industrial

strength

rate

the world. And Soviet

10%

growing

year

versus

growth of 4%; We

own

By DAVID

Burnham and

and the

Mr. Norr anticipates declining domestic
of
exploration capital

history of the world. We
being challenged by
a god¬

are

less

nation

abroad,

dis¬

never

objectiveof.

of companies
plans.
*
" 1

and

Import

lower

domination.

1924

Lenin

will

take

;

Eastern

the

"First

ingly,

encircle

the

last

bastion

overripe fruit
•
„•/.;

There is

Soviet's

into

cannot

placent
And

afford

about

our

cannot

different

Coast

ports

behind

;

current

quota

tough r

a
„

lems

t h

in¬

foregoing fac¬
tors.

'In

1948

the

the
needs
of
our
U. S. began to
must wage
this eco-/
with all our resources-1 import more
oil than it ex¬
human and material.
We

must

ported.

fight with all the ingenuity
inventors, and scientists

that

businessmen

can

-command.-

must

"wage

total

peace"

urge

this

all to join and

nation's

peaceful

effort

the

Continued

from

Security

perience
of

plus

risks is

greater
in

now

barrels daily of crude oil

are

fact

already evident.

It is also evident that manage¬
ment is fully alive to the situation
is

determined

every¬

thing possible to effect economies
and
generally to streamline the
operation. More efficient machines
have

been

installed

are

or¬

der that will speed processing and
cut costs.
Advertising has been

stepped
ship of

and includes sponsor¬
one of the nation's most
up

popular
radio
programs,
"The
Jack Benny Show"-^all pointed

with

from

factor

con¬

60%

the

By that

between

the

must

excluding the

McMann,- partner

firms in the private firms division
of the 1958 Greater New York
Fund campaign.

time

the

Nebraska Bankers to
Hold Annual

dis¬

producing

years

that

lie

ahead,

certain

basic

questions

asked.

Will

Outing

OMAHA, -Neb/—The

Investment
will

hold

Bankers

their

annual

economics

lie

domestic

production be protected by strong
on imports?
Will U. S. oil
prices advance, as they have for

Hollow Club in Omaha.

limits

With Columbine Sees.
(Special to The Financial Chronicle)

This advertisement is neither

The

offer to sell nor a solicitation of offers to buy
offering is made only by the Prospectus.

any

of these securities.

NEW ISSUE

April 11, 1958

$125,000,000

y>:

/f//-;

the

trend towards imports.
More

recently, tanker transpor¬

tation rates have declined and ap¬

likely to remain at fairly low
levels.
As a result, oil may be
readily
delivered
to
markets
throughout the world.

Aluminum Company of America

pear

Therefore, as a general rule,
foreign oil is low cost oil which
can be brought
into the U. S. at
prices substantially below U. S.
costs.
The
savings may be 50
or

Dated

Sinking Fund Debentures Due 1983

April 1, 1958

Due

April 1, 1983

Price 99.60% and accrued interest

Quota System
the

1954

VA%

barrel.

President

the

Home picture that
gives much
promise to its long range growth

U. S. directed the Cabinet to make

and development and considerable

purpose

capital

dustrial growth and to provide for
the national defense. It was sub¬

stock.

gains

possibilities to the
Early this year the com¬

study of energy supplies for the
of assuring orderly in¬

pany completed the purchase of- sequently decided that crude im¬
the People's Life Insurance Co.- ports should be related to U. S.
of

Frankfort, Ind. The growth fac¬

tors inherent in the life insurance

business

are now

nized and Home

generally recog¬
seems

to be in

superior position to take full ad¬
vantage
of these
opportunities.
The
company
has some 40,000
agents
of

who

cover

the country

and

section

every

will

now,

for

the first time, be in a position to
offer

complete

surance

multiple

line

in¬

business.

McDonald Adds

Staff

production at the rate prevailing
1954, namely 12%. In what is
called the Trade Agreements Act
of 1955, the President was to act
if imports impaired national se¬
curity.
Schedules of imports in

were

considered

threat

se¬

curity. A plan was set up where¬
by quotas were imposed on crude
oil imports in the U. S. except for
the

West

Coast.

L. Pi'eiffer has been added to the

Generally speaking, quotas gave
companies the right to import
90%
of
their
1954-56
imports.
Other adjustments were made in

staff

the

(Special to The Financial Chronicle)

CLEVELAND, Ohio
of

McDonald

Union Commerce

—

Sterling

Company,

Building,

mem¬

bers'iff'the New York and Mid¬
west

Stock

case

Copies of the Prospectus may be obtained from any of the several underwriters,
including the undersigned, only in States in which such underwriters are qualified
to act as drains in securities and in which the Prospectus may legally be distributed.

*Based

The

The First Boston Corporation

Kuhn, Loeb & Co.

Blyth & Co., Inc.

Glore, Forgan & Co.

Eastman Dillon, Union Securities & Co.

Goldman, Sachs & Co.

Harriman Ripley & Co.
Incorporated

;

Kidder, Peabody & Co.

'j '

Lazard Freres & Co.

Lehman Brothers
*

Merrill

Lynch, Pierce, Fenner & Smith

Stone & Webster Securities Corporation

Smith, Barney & Co.
,

White, Weld & Co.

smaller

importers.
Subsequently, restrictions on West
before

Exchanges.

1956
indicated
a
sharp rise in
imports beyond the 12% relation¬
ship. Action was delayed by the
Suez crisis, but in 1957 imports

address

Association

by
of

Mr.

Norr

Customers'

Brokers, New York City, March 12, 1958.

daily 'exclusive: of the
■£ DENVER,.Cplo.—James E. Ma¬
New applicants for
20 years, in the face of substantial
son is now affiliated with Colum¬
quotas were granted some allo¬ low cost foreign supplies? If not,
bine Securities Corp., 1575 Sher¬
cations, while earlier importers continued pressure on domestic
man.
;
'
were
cut back slightly to make earnings is anticipated.
With re¬
room.
West Coast quotas remain strictions
on
imports
into
the
Joins Hathaway Inv.
at 220,000 barrels daily.
U. S., will other producing na¬
(Special to The Financial Chronicle)
tions, such as Canada, take steps
Products
continue
to
be
ex¬
to increase their self-sufficiency?
DENVER, Colo. — William A.
empt from curbs but are being
This would require companies to Strain is now with Hathaway In¬
watched lest this prove to be a carve out
local integrated mar¬ vestment Corp., 900 South Pearl
loophole. Government purchases kets throughout the world and Street.

hundred

behind

cocktail

party May 20 at the Omaha Club,
to be followed on May 21
by a
field day and outing at the Happy

of free

few

Nebraska

Association

Coast.

Accordingly, geology, the early
stage of exploration in other areas,
and

Raymond

Hardy and Company, is a group
Chairman
of
Stock
Exchange

reliance

ability and demand will be suf¬
ficiently large to make imports
welcome in far larger quantities.
-

parity

a new eco¬

McMann Group Chman.
In N. Y. Fund Drive

some

home.

the imbal¬
likely as

are

well in the Middle East.

The

another

almost

you

rising prices.
is

about

barrels daily per Venezuelan well
and several thousand barrels daily

towards
selling
the
company's
product and emphasizing the need cents
of additional insurance to offset:
There

shifts

demand.

compared

and

9.3 million barrels daily.
This
development is

know, U. S. production
averages 12-13 barrels daily per
well and is a high cost operation

indications of better underwriting
results

Norr

of total U. S. oil demand

scrutiny

order.

David

one

for

however,

West

and 500,000 barrels daily of prod¬
ucts. This amounts to about 15%

world

I Like Best

West Coast (District V), This re¬
in a new quota of 713,000

ap¬

accounts

The

should

controlling

industry adjusts to

nomic scene.

attractive geo¬

Other

ance.

on
imported
observers, this shift
and
its
resulting readjustments
will be solved by time, say up to
10 years, and growth of demand

barrels

to¬

entirely
logical; the U. S. has 15% of the
world's oil reserves, produces 40%
of the world's oil production, and

page

increasing

oil.

sulted

million

achieve >

through
Mutual Security Program.;

drilling activity
flight of exploration capi¬

demand, the basic

economic determinants, are out of
balance.
The quota system is a.

indi¬

the

declining

months in the U. S.

'. This

and

proach

support

progress

on the East Coast, 220,barrels
daily on the West

ated

ports

the Soviets at their game
"total cold war."
.

are geared to 12% of
average
production
of
the
last
three

day Our im¬

As President Eisenhower has said,
beat

daily

000

trend acceler¬

our

and

rels

were
added/ Im¬
limited to 771,000 bar-

and

war

—both

To some extent the quota
sys¬
tem will protect domestic produc¬
tion and slow the shift toward

imports
were

compliance with only
a
few companies exceeding their
quotas.
However, as \ a result of
requests for new quotas coupled
with lagging U.
S. oil demand,
the system was revised recently.
Curbs continue to be voluntary

which

com¬

allies.
nomic

our

recent
oil
re¬

tinued.

or almost 1,000,000 barrels
of crude daily. The
plan met with

have risen be¬
cause

security.;

own

afford

that

The

declined in 1957 is

logical provinces

areas.

substantial

„

indi¬

growing difficulty
finding oil in the U. S. Accord¬

and

Coast,

and the.
and
accomplished jthe; system,
some' p ro b —
the seizure of;

objective
Eastern Europe. We face
foe and a tough battle..
We

to discuss the growth of

imports since 1948, the reasons
the
growth, the size of
imports in relation to demand, the

oil

the blueprint

have

first

I plan

our
-

•

would

Supply and

shall not have to attack it, it will
fall

centers?

impose

foreign oil.

tal abroad to

price cutting and market¬

cause

ing competition in foreign

capitalism—the United States. We

hands."

markets and

own

Economics

announcement

cation

develop their

Europe, next
of Asia and finally we

masses

will

said,

the

cost

serves

pressures

Soviet Blueprint

foreign, production in the
U. S., will price cutting and mar¬
keting competition
increase
in
foreign areas? Will prorationing
be extended to
foreign producing

low

abide

Problem

add to the expense of
doing busi¬
With limited ability to mar¬

ness.

ket

means

domestic earning if prices do not continue to rise in face
of low cost foreign
supplies, and if foreign oil export countries

world

cut

question

cate that high cost U. S. oil should
have
difficulty
competing with

protection

run

will
*

restrictions

analysis.

drilling activity, flight
short

non-economic element in security

accorded domestic production giving way in time to
increasing
reliance on imported oil. Ponders such matters as

its

avowed

has

that

may

company

The

growing
In view of these factors

difficulties in finding domestic oil.

largest fleet of submarines

the

companies

the

violates its quota.
Based on experience to date, it
would appear that the
majority

NORR*

Market analyst takes a searching look at —
admittedly
cost—oil imports, recent quota restrictions and our

challenged by the nation with the
largest. standing peacetime army

oil

Company, New York City

ourr

being

are

off

Drexel & Co.

Hemphill, Noyes & Co.

The Commercial and Financial Chronicle

Consider

Thursday, April 17, 1958

fickleness

the

now

Outlook foi Drug Industry

public. Dwight Eis¬
enhower, once a hero, is experi¬
encing about as bitter revilement
as
anything Truman ever under¬
went. It is difficult to find, out- '
the American

From

Washington

Ahead

of the News

side

man

comings and goings and utter¬
of

ances

White House.

Harry S. Tru¬

almost completely

In the

House

White
he

ture of a clever

discredited

ro m

against the compe¬
celebrities. On
Monday
he appeared
before a
Congressional committee studying
ways and means to break the busi¬
ness
downturn and glibly tossed
off
the
suggestion
that
there
should be a $5 billion tax reduc¬
tition of Broadway1

admit it, having defied the proph¬
ets and won re-election in 1948 but
the greatest cross

Adlai Stevenson
his

Presidential

was

bear

that he was

campaign of 1952
the

candidate

Democratic

and

Democrat, Truman, was the occu¬

tonic

big fellows whom he has always

professed not to like. He was just
about as funny at the Congres¬
sional hearing as at the Press Club

to follow

now

the meanderings of this man as he

travels

Europe, writes for the

the little fellows not the

tion for

pant of the White House.
But it is

night he dropped
jubilee dinner of the
Press Club
and easily

stole the show

never

day, invariably

dig at the present Ad¬

the

National

of 1953. He

had

Last Saturday

jobs,

town in Janu¬

would

midst fairly

dinner.

speeches.
1 think there is not the slightest
his life.
doubt that a country which was
I can't recall ever having learned
anything from him when he was just a few years ago reviling him
makes

and

newspapers

He is having the time of

President
tical

now

except how hard prac¬

politics

since he

White

House

holds him

little

but

played,

can

left the

The

them, they like his dema-

amuse

affection.

from Missouri seems to

man

delightful lesson in gogucry which is natural with him.
hi 1952 they were voting against
how to grow old gracefully.
Adlai Stevenson, to a large extent,
With plenty of money on which
because Truman had engaged us
to live, his daughter who is his
in
a
silly and aimless war in
pride and joy, happily married, Korea.

giving

not

was

man;

me a

power

Eisenhower who is

yet fully

pense

is financed by others; and (3) high return

seems

assured.

Contends that the factors

efforts

check

played

doubtedly

warrant ratios at least

as high as that of the
chemicals; and
possible unsettling factor involved in Federal
Comihission investigation of antibiotic industry which
4
should be completed by end of this month.

Trade

the

present downturn.
But

off

would

could

better

much

our

thinking to state and local admin¬
istrations and neither be giving
Washington credit for or blaming
it for everything under the sun.
returned

Washington
handle

to „this

would

not
intimate

the

thinking

trying

affairs

"<!'

Kalman Adds

with

First Na¬

Net

Income from

$ 2,260,472

Operations

83,131,991

$ 2,431,790

Per Share

Dividends

$3.41

Paid

$3.75

$ 1,176,443

$ 1,217,295

differences

Per Share

$1.80

that

remainder

663,023

BEVERLY

Thomas

DISTRIBUTING

Lloyd

ACTIVITY

Great

Amarillo, Texas

Falls, Mont.

St.

Kansas

Chicago, Illinois

Lincoln, Nebraska
Los

Springs, Colo, (s)

Calif.—
with

now

Company,* 364

Si.

City, Missouri

(Special to The Financial Chronicle)

Joseph, Missouri (s)

BURBANK,

Paul, Minnesota

Calif. —Edwin

Salt Lake City, Utah
San Anton jo, Texas '<

Angeles, Calif.

Kidder

have

Nielsen Co., 362

Dallas, Texas

Lubbock, Texas

San

Diego, Calif.(s)

Denver, Colo.

Minneapolis, Minn.

San

Missoula, Montana

San

Jose, Calif, (s)

joined

the

staff

Kidder

East Olive Ave.

Francisco, Calif.

Des

Melvin

and

Moines, Iowa

Paso, Texas

Ogden, Utah

Grand

Island, Nebr.

Seattle, Washington

Oklahoma

Fort Worth, Texas

Sioux

City, Okla.

Omaha, Nebraska

With Dempsey-Tegeler
(Special to The Financial Chronicle)

City, Iowa

Topeka, Kansas

LOS
R.

Plants and Sales Offices

Dallas, Texas

Los

SUBSIDIARIES
(s)

Angeles, Calif.

Denver, Colorado

New

Des

Oakland, Calif, (s)

Fort

Moines, Iowa (s)
Worth, Texas (s)

Houston, Texas (s)

Orleans, La. (s)

San

has

San

Francisco, Calif.

Calif.—James

been

added

Dempsey-Tegeler
Logan

the

decline

cycle. Pro¬

Firm Name

The

firm

name

was

Co.

McLaughlin

;

combined

decline

eleven

4%.

Then

companies

volume

fell

5%'> while
Broadly

1;%.

sales

;

increased

1952 disposable

increased

come

ing,

there

in-*

drug-

speak¬

Answers Reluctant Investors

the

eleven

reason

operating

at
re¬

large and smaller

roughly $2.1 billion
manufacturers' shipments in the

quarters
in

same

the

"The

year.

companies

are:

Laboratories; American

Abbott
Home

Products;

Bristol. Myers;

Johnson; Merck; Parke Da¬

the

Over

found

in the early

objections do not seem well taken.;
Obsolescence is certainly a threat
to any company

with a heavy conof earnings in a single

centration

that, most

competition

Sales

made in each of the

Co., 52 Wall Street, New York
City, new New York Stock Ex¬
change member firm, will be Mc¬

with

Laughlin, Kaufman & Co.

Brokers,

one

Based

before

severe

encountered

1950's.

early

price

gains

the
were

postwar years

exception, 1952. The rate
on

the

New

address

Association

York

City.

•

Mr. Becker
Customers

history

companies

are;

prepared for the day thatearnings on a major product dis-.
well

Financial

appear.

greatly improved.
been

cash

position
where

level

has

times

positions are;
Capitalizations

cleaned

have

expanded
can

been,

and

the

be,, and many_

used to purchase

earning ' power.

lasting

Future

growth is prepared for through
expanded research programs. New

from the greater effort
support the overall level
earnings.
Generally, it takes

products
tend
in

time

restore

trend to

not

strong

growth,

earnings after an impor¬

but to my knowledge:
investor has been
by product obso¬

single

hurt

The other
an

past

However,

product.

lescence in the

companies have

spite

1950's. In the light of

present industry conditions these

seriously

eleven

have.

recurring commodity price weak- *
nesi
similar to that experienced f

Sterling Drug.

outstanding record in the postwar

the part of

investors to purchase drug
equities. Invariably, their objec¬
tion was based on the rapid ob-'
solescence factor and/or possible!

tant product

Cites Eleven Companies

years

many

vis; Charles Pfizer; Schering;
Searle; Smith Kline and French;

The

past

reluctance on

shows

drug companies to represent the
industry.
Their total volume in
1957
was
$1.6 billion or three-

the

McLaughlin, Kaufman

Spokane, Wash, (s)

Tulsa, Oklahoma (s)

potentials.

For^this

combine

period

Seattle, Washington

this

the

ethical

between

their

found.

Edie

210 West Seventh Street.

declined

come

For

in-. 1949 disposable in¬
slightly. In the face

example,

■

activity.

economic

general

& Co.,

Antonio, Texas

Portland, Oregon (s)
City, Utah (s)

formerly with J.

Omaha, Nebraska

Salt Lake

ANGELES,

Keller

staff

ENVELOPE MANUFACTURING

Mead
.

particular interest to note the

apparent absence of a close corre-.
lation
between
drug
sales
and

companies in the drug in¬
dustry confine their; activities to
just one phase or one type prod¬
uct.
Instead extensive integration

sults of

Pueblo, Colorado

Houston, Texas

Billings, Montana

Colorado

Arnold

Two With W. G. Nielsen

Pocatello, Idaho

Harlingen, Texas

Austin, Texas

HILLS,

Green

North Camden Drive.

Warehouses and Sales Offices (s)

Albuquerque, N. M.

held'

have

\In view of the present relatively

Few

(Special to The Financial Chronicle) '< *'

649,030

options

unfavorable economic outlook it is

to achieve

$1.90

With Lloyd Arnold Co.

December 31

peak sales and earnings at¬
tained one to two years after ♦in¬

the

Co.

Common Shares Outstanding,

and

gain to that of sales, 240%. In *
comparison the Dow-Jones Indus-:
trial, net per share increased only
166% over the same base period,'

products,- on the other
Leland Kaiser Opens
hand, have a very substantial life
expectancy. Earnings are small, if
SAN FRANCISCO,' Calif.—Le¬
any, in the first few years of marland M. Kaiser is engaging in a
keting but rise rapidly as volumesecurities business from offices in
grows.
Many •>* of *: the successful
the Russ Building. Mr. Kaiser was
proprietary
products introduced
formerly a principal of Kaiser
ten and fifteen years ago have yetf,
&

spe¬

the

prietary

83,994,301

versions

proprietary products are im¬
As a general rule ethical
products have a short life cycle

Minneapolis. '

largely owing to:

wide margin

the

continues throughout

toward

trend

the level of economic

sets

formerly

base

same

Net earnings exceeded the!

cialty products. However, on a per;
share basis dilutions through con-,

are

Thereafter

Bank

the

over

little question that
classified into three groups; spe¬
activity has
a very definite effect on the con¬
cialty, proprietary, and fine chem¬
ical producers.
Their products, sumption of drug products. Minor
are:
(1) ethical (promoted to the fluctuations, however, particularly
doctor), prescription
and
over- on the downside, may even stim¬
the-counter; (2) proprietary (pro¬ ulate consumption for many peo¬
moted to the public);
(3) bulk. ple use lay-off periods to have old
From
the- investment standpoint ailments corrected.
Drug companies

period.

troduction.

was

•

for dispos-'

165%

with

increase in sales

portant.

Company, Inc., McKnight Bldg.

tional

eleven companies was

income

period.

dustry and its record in the post¬

Cost, Including Taxes

compared

vol¬

of the 1947-1949 average as

able

with

$85,563,781

of the

240%

1957 combined

year.

ume

and

Staff

(Special to The Financial Chronicle)

$87,515,674

per

MINNEAPOLIS, Minn.—Thomas
R. Kresensky is now with Kalman
Year 1956

gain has been twice that of the
economy or close to 10%

nation

For orientation purposes iel".UB
the structure „of the inr

review

war

return

and Manufacturers of Paper Products

Year 1957

of the most

un¬

part

capital

favoring drug stocks

calls attention to

its

least

In countering investors'

recognized.

and

with

industry,

purchase drug equities, Mr. Becker points out:

170,000,000 people.

Net Sales

not

invasion of Italy and

NEBRASKA

Earnings Summary

drug industry is one
exciting areas in our
economy.
Its
business
is
con¬
the
casualties
were
mounting cerned with the vital area of
pub¬
heavily.
Eisenhower's aides de¬ lic health. Its basic
objective's to
cided he needed some relaxation
increase life expectancy. For their
so they took the week off in Lon¬
service the rewards, as measured
don for him to play golf.
• ;
! in
profits, are handsome.
*'.
But what is pretty disgusting is
Currently, we are faced with a
the manner in which the Amer- <
market that is reflecting a lower
ican people go up and down in
level of economic activity,' Com¬
their feelings and blame or credit
bined with rising costs and overeverything to the White House.
expansion, impairing the earnings
Businessmen have come to be as
prospects. The current Dow-Jones
much responsible for this as the *
Industrial Average at 440 ?is un¬
ordinary man in the street.
<
changed from its. Dec. '31 ■ clos¬
In the 1956 campaign the Re¬
ing price. In contrast drug shares
publicans had a walkaway because have
performed ; exceptionally
the
country
was
enjoying
thewelly rising 11%. Looking ahead
greatest prosperity ever known. the
prospects are reasonably good
Under the circumstances 1 suppose
for some further gain before the
it is only natural for the Demo¬
end of the year.
(1) The "indus¬
crats now to be making an issue
try's basic investment - value is
of unemployment.
1 am not so not
yet fully recognized. (2) Most
sure either that there hasn't been,
companies are expected to show
culpability in the Administration.
reasonably good sales and learn¬
It got excited about "inflation"
ings gains in 1958.
;

OMAHA,

drug

New York City

demands

being bit¬

now

criticized
for
apparently
moving around in the even tenor
of his way, playing golf, etc., con¬
ducted the war in pretty much the
same leisurely way.
I recall very
terly

Co/

(1) drug sales face little competition from all other non-drug
for consumer's
dollar; (2) basic research ex¬

and overwhelming man¬
did that. Incidentally, Mr.

might

CARPENTER PAPER CO.

Distributors of Paper

value

reluctance to

American " industrial

war.

the

appreciation before the end of the year, and 10%
annual sales increase over the longer termy is propounded by
Lionel D. Edie analyst who avers industry s basic investment

Truman,

was

Eisenhower

for

modest

not credit him with winning

1 did

the

ing the troubles it is having.

getting in

when he left

ary

outlook

favorable

out of office as

much

launched

the events of the

those who lost

their

any

vividly a chanter in Harry Butch¬
er's book, "My Four Years with
Eisenhower," which told of one
occasion
when
we
had
just

tear was- shed,

except

our

family,

ministration and obviously enjoy¬

and

1 doubt that

drops into

uninhibited.

sign reporters to him as he takes
his early morning walks. On such
occasions he comments freely on

above the sta¬

politician

in the

frequently and the newspapers as¬

rose

never

was

Now he is out he is

late President,

man.

much about

didn't worry too

what he said when he

our

will

stand

in these and with some new expensively
suits he and Bess are
times of worry I find my greatest tailored
relaxation
and amusement from viewing the sunset happily. Tru¬
Next to the comic strips

the

official

his

By STEPHEN W. BECKER*
Research Analyst, Lionel D. Edie

great defense for him anywhere
in the country;
As things now

By CARLISLE BARGERON

(1714)

postwar period.

objection, commodity

price deterioration, is difficult to
in the immediate future. Very

see

important changes have
place in this industry in

taken
the past

evidenced by the rel¬
atively stable price structure forbulk
products since the end of
1954. Unlike the present situation
conditions in the early 1950's were

few years as

Continued

vaoe

Volume

187

Number

5734

The Commercial and Financial
Chronicle

(1715)
'

automobiles

Short-term Uncertainties and

nual

By DR. SIDNEY E. ROLFE*

New

York

City

;

the

uncertainties

in^the

World War II in which instalment credit
fallen.

there

states

should be:

marked

increase

r,v

rent

off

which

from

cur-

touched

capital

ex-

results

1958

in-/

some

liquidation

e y

of current de¬

itures have

tell

Sidney Rolfe

they will be
in 1958, an estimate

&nd

have

mand, and
Spiral of

been. cut.

This

production cutbacks

falling of dehave .the downward

•

million

Sales

seek

cars

imported.

are

for

the

credits of about

for

reasons

can

and about

$6 '

require-

reserve

$10 in 1929 just'

*/' v*::

new

v.--

;

car

V sales.

Even without

depressing

in-

up for a
factor in

Part of this stems from in-

c?eased new car. prices and the

The basic
xiic
uaait

uiupuaaiDviu uu so are
proposalsVto do au di c
two:£a tax".cut,- or? public works,

be obtained when the economy is
.

growing and I for one do not want
total stability. Up or down movements around

dangerous

trend line become

only-when

they

are

task

proceed too far.
The
hand is to contain these

recessions
tolerable
•'

Has

and

?acU?r

rales? strong plus

in auto

is:? highest,-J.e.YThose"' who
will'/ not?:swell the total oft unspend

■

Let's

some

than

the

measures,

the

rec-

already

two

re-

gone

aut°mobile ■ sales
year to
yeai? had fallen zz.o /c. xtepayJ?ie
however are up about 4.1%
oveF
year so that we have ex-

difficulty. When the economy
gets going, and we move npward
as

will',

will

^reduced

doubtless

add

tax

fuel

base
infla-

tionary fires, -Therefore, some tax
gimmicks have, been proposed—
e.g.

peri^uced a net decline in ■out"
Sjan i.nSs_t1h January and
aDly ln ?■
rY
wea"
ine
reasons _for the better perform-

temporary tax cut—in the
withholding tax forgive-

form

„

for

ness

tention
A

too far

gone

look

bession of 1957-8 has

further

within

few

the

months—but
current

tax

rates.

public

criticized

impact.

works
program
is
i
being too slow in its at tms time, o4 /0
But its advocates claimfnrmnced as
as

that while it is slower, it has two

advantages:-first, it
off

when

not

?year,

unlike

JuCeSl\?nl °i 19?l~9 and l0Wer tax rate: second]y .out:of it
Thus, the Federal Reserve comes some

fallen nearly 10%, 9.7 to be exact,
since last July. In the first seven
months

the other

recessions, it

had fallen 8 to 9%. It is instructive to realize that in the Great

Depression, this index fell only
13rl% in 1929-30.
Employment,
admittedly a tricky measuring
rod

because

who's

fell

one

the

really

ever

labor

3.3

sure

forces

percentage
1948-9; 2.3 in 1953-4

points

and

5.4

1929-30.

has

fallen

This

3.1

points.

all

sound

from

far, this does not
terribly different

too

the

ferences.
in

time

great crash.

But

there

several

are

needed

very

has

very significant difPersonal income fell 8%

1929-30,

here the

and

first

Each of
the

pick his side of

usvcan

argument

the

light of his

own criteria.
nificant that

But I think it signo one in a position
political responsibility advocates sitting on his hands, or letting nature take its course if the
of

recession

instalment

schools,

roads and other ."social capital."

cars

Credit
,

automobile sales are in fact five
mldian> the outstandings for auto.PredloJY ^ .,d? ne •+Sl?nYr"'

thln&
.payments of about $15 billion exrecessions before,
Ju S?.
ou10^
postwar period. Par- f
J./10n,'if
i ^ a
1953-4 the consumer
a a 5/2 million fr&u^e, w ch

twice in the

ticularly in
stepped forward
lag

become

drama, the
creased

after
the

man

who

purchases

Is he

in this recession?
mates

the

? J entirely possible, howeve ,
^tomoblie ered:it outstandir g vill

in-

nse ov,e^.

time

his

reversed

trend of recession.

sa^

some

hero

doing

The early

consumer

the

and

esti-

expenditures

+ns v,SUC
1"^
?h

q=o

Iw
cLaA

World War II in which instalment

?redit outstanding will have fal-

he fanrttotte

keen

and

1.9%

re-

unemployment

necessary

appreciation

shows

the

need

important

stability,

„

«iontr
American

Cre'du°Conferen"
Bankers

Association,

March 26,
1958.

cago,

8%.

The

the

4.4% but has decreased his
chase of durable goods by
.

•
.

not to let income fall.

Equally

Actually

now

Chi-

the government,

economy,

taking

steps

the recession. To

tempts

being made,

are

overcome

extent

some

at¬

as you

all

burden

this

purover
•

decline

consumer durable goods spending
has of course fallen on the auto-

mobile industry.

that

probably be

The

credit industry is
position, as we all know,
lengthen terms further, as auto

terms

value that
This

the short end of the market. Such

terms

have

provided

still not

reserves,

far

should be financed.

cars

the

definition

very

True, there

may

marginal pressure on terms
gain volume by some com¬

some

this

banks, but in the main

will

not

could

losses

happen
well

the

longer,

greater

mean

current

climate.

the
bull
market
in
loosening of money has not equities and rising levels of con¬
affected the borrowing rates fidence are not with us yet.,
-

The

yet

are

which

most

appreciable

being utilized.

people

face

degree.

Finally,

any

;

monetary attempts have not
been very significant as offsets.
is

ventories

fairly widespread

still

has

go,
and that
forces of upward

few

there

months
are

momentum

the business picture until later in
year, if then. In the earlier
postwar recessions it was the con¬

who

stepped

the day. In

save

;

Long-Term

the

Outlook

much

With this

uncertainty in
short-run picture, is it, still

sensible
now

opinion that the reduction of in¬

with

The

Therefore, to

date

balance

sound terms.

which

are

collateral value is concerned. And
it is on
the basis
of collateral

panies

moves;

will

consumer

not

interest, rates,
although this has been mainly at

reducing

these

There

public works have not yet mate¬
rialized and indeed conflicting re¬
ports to date have been confusing.

and

none

tax cut; the various
government tax cuts or,

possible

1953-4 he did

stimuli.

some

forward

Tax

cuts

put

estimated $73/2 billion of spend¬

purchasing,

the volume of

instalment credit

ran

new

ahead of

to
speak of long-term
growth in the way we have? Is it
not possible that the economists
have been

leading businessmen

astray by their projections which,
show a rising economy with GNF'
approaching $600 billion within a

decade,

with family income
from its present $5,700
average toward $8,000?
And all this in 1956 dollars, so that
and

moving
annual

it is

not

inflation mirage,

but

real growth.
-

For

whatever

worth,

would like to reassert my
belief
that the economy will in fact at¬
tain the height formerly outlined,
the current recession to the con^

trary notwithstanding.

Continued

re-

Basically,

page

This advertisement is neither

an
offer to sell nor a solicitation of an offer to buy any of them
offering is made only by the Prospectus. This is published on behalf of only
such of the undersigned as are qualified to act as dealers in securities in the
respective States.

securities. The

New Issue

April 16, 1959

$30,000,000

Tennessee Gas Transmission

Company

5% Debentures due May 1, 1978
Dated March 1,

1958

Due

May 1, 197$)

and interest accrued from March 1, 1958 to date of delivery

Copies of the Prospectus may be obtained from any of the under¬
signed who are qualified to act as dealers in the respective States.

Stone & Webster Securities Corporation

Blyth & Co., Inc.

White, Weld & Co. Halsey, Stuart & Co. Inc.

did

have

evi-

recession,

The First Boston

Eastman Dillon, Union Securities & Cow

Corporation

Harriman Ripley & Co.

Glore, Forgan & Co.

Each of

figures
are

Kidder, Peabody & Co.

Lynch, Pierce, Fenner & Smith

A. C. Allyn and

Smith, Barney & Co.

Company American Securities Corporation Bear, Stearns & Co*

Incorporated

A. G. Becker & Co.

Blair & Co.

Clark, Dodge & Co.

Incorporated

Dick & Merle-Smith

lucky

and

very

year

ago

and

W. C. Langley & Co.

smart,

repossessions and losses
near

Equitable Securities Corporation

are

prob-

their postwar highs. But

Hallgarten & Co.

W. E. Hutton & Co.

an ill wind that blows no good
one
result
of
these
rising

losses may be salutary: for those

Lee Higginson Corporation

F. S. Moseley & Co.
Wertheim & Co.

Coffin & Burr
Incorporated

Dominick & Dominick

Hornblower & Weeks

knows his respective
fhese things. Unless you

well above

ably

Lehman Brothers

Paine, Webber, Jackson & Curtis

Salomon Bros. & Hutzler

very

your

Goldman, Sachs & Co*

Incoryorated

Merrill

we are now undergoing, we

December, it's

19o7> before it became fully
dent

present.

know, to counter the recession by
increasing the supply of money

Incorporated

■

In the period of recession which

willingness to take his purchase of services by about quencies and losses,

extend

compensation

the

date

^ p

recessions 3.1%

over

through
the
consumer
sector
primarily by reductions of durable
goods sales. The third major sector

deepens.

We have had

have
seen some important changes with
respect to repossessions, delin-

Moreover, the Federal

feeding back

1958

ter of 1957, the consumer has increased his purchases of non-durable goods by 2%, has increased

Government's

the

conditions

Outlook

spectively.

and inventories. It is

laking a fairly long iook at tne
Jear'
some rather heroic
assumptions as to what is likely to
nappen, it is our opinion tnat it

comparing the first
quarter of 1958 to the first quar-

up.

started

business sector of the economy, by
reductions in capital expenditures

this

shows

high,

Price 100%

built-in

stabilizers

recession

For

war

The

market in stocks bolstered con¬
fidence not only for
shareholders,
but for others as well.

^Car

new

compared to
beconaiy, auto-

our

time, income has fallen
only 1.3%, and in the other post-

may

index

1"aoblie Pric^ a^e 51?!
3
course, affects dollar volume.

be turned

can

needed,

Board

production

possibility of
will be educa¬

tuition

ance of financing are two. First, a
larger per cent of People are us-

re-

1953-4.

the

period

The

volume

....

<.the,sale**}n J.anuary, the new car

est

bounds.

this recession

already?
ord.

inflations

with

for

payments, thanks in large measure
to longer terms.
Finally, a bull

propensity0j, automobiles
*i?s not, done as badly in 1958 as

goes/to those whose

•

allowed

quest

cover

error" basis,
periodic reces-. used - savings^ This t'fe doubtless. credu extensions of $1.19 billion
sions,".like periodic .excesses of true*'But"orice taxes are cut they are only
5,4^ below the similar
activity are; inevitable.
Missing can be raised only with the great- figures for, January, 1957, while

"characteristic

terms,

behavior in

used car prices as ing power into the public's hands.
A
great argument rages? as to -vel1*
a Spring turn in used Secondlly, consumer credit terms,
which is^the better»method—an car volume and prices this factor particularly on new cars length¬
argument; which may prove- aca- sbouid become less a depressant. ened in 1954, and the instalment
demic
as. both
may 'vet
prove
A,n excis? *•* c"t on "ew ?a,rs industry added a net $1.4 billion
nece'ssary.v#^,'^.
*:>• v^plus a price rise for used models, in 1954 and $5 billion in 1955 to
decrease

and

sound

but the lesson will doubtless stick
for a long time.

sumer

/" /

mark

tional.

increased cost of trading

the*leadrv'i>'

take

growth; complete stability cannot

really under¬

the

expenditure, both
a
o^o

P°int since 1949-

becoming, effect
A;tax cut is said'to be quicker
becoming cause.
—in ./impact,
especially.:if ^money

'} Actually, - in a freeeconomy,
Where, supply and
demand/must
meet to some extent on a trial

the

tempered
loss, this

*.tVe survey we a11 f n+see
™ ^
f1£ures> Some analysts regard the

,.,:v

the

Decline?

chases until the outcome of the

cause

and effect

five

300,000

go far in the realm of speculation

;

T\yo Anti-Recession; Proposals

~a/

layoffs,

Why

seems

for

and for

reserves

cor¬

ployed in construction and capital
goods building were laid off, and
leads to

some

sea¬

or never

need

sufficiently high rates to

loss

tr^1fpr0houslng^t?evothr,1Jia?or

now

roborated by the NICB appropria¬
tions survey—men who were em-

inventories

forced

the

economy, and it is widely believed
that the government sector must

government's

means

forgot,

stood

regenerate the economy. The need
forkthe future is to reflate the

om.mer c e

cut 13%

thinking

When

added, current

this sharp decline in sales
t

who

while they will prevent recession
from becoming depression, cannot

been cut—and
the SE C-

mand- As cap¬
ital
expend¬

surveys

present

i merits

need in terms

with

Yainy day is more clearly seen.
Atthe moment, people would
rather save their money than
k when : businessmen' can least af^'spend it. This is evident in the
I.ford liquidation of already heavy recent
University of Michigan
! inventories.
;;*>>'*
;v> survey of attitudes, • which shows
k • Statistics can only tell us about1
automobiles
the past;..and built-in
stabilizers, f*
Y y,
.
same.1S
under

capacity

a n t

adjustment.

sale

which

posits-withdrawn

{lustries built
more

March

the

been great without the bank rUn';Nconsumer spending has been in
For every dollar of
primary de- terms of cutting automobile pur-

fact

t-...

This rate

thanks to '.the FDIC, There is no which I would just as soon not do.
panic of depositors at your banks,3s ^hite clear, however, that in
and there isn't going to be/;.The;^his period of fear
and uncergreat depression would not have tainty,
the major feedback on

but

the

been

ur es,

the

that

has

decline

pendit

standard

now
true

recession

days

industry

using Gross National Profit and employment.
"is rby
Nevertheless

sonal adjustment is

banking system's growth; advance in research,-development
and technology; and continuance of sound debt rise to achieve

January

by February reached a level
units daily less
than

seasonal

outstanding will have

belief in country's future growth prospects, the economist for nation's largest consumer-industrial Uv
firm

daily selling rate of about 13,500.
These figures do not contain
any

In reasserting

finance

fell

through

since

year

sales

4% million annual rate.
is
being sustained

short-run .economic

picture, Dr. Rolfe finds 1958 might be the first

an an¬

million

13,400

first

discussing

5.8

which

Vv'-'T

selling at

about

for

and

•

were

However,

Economist, C. 1. T. Financial Corporation
*•

rate

units, or a daily rate of nearly
19,000 which is certainly not bad.

Long-term Growth Needs
In

R. W. Pressprich & Co.

Drexel & Co«

Hemphill, Noyes & Co*

Ladenburg, Thalmann & Ca„
Carl M. Loeb, Rhoades & Co.
L. F. Rothschild & Co.
Dean Witter & Co.

Chronicle

Commercial and Financial

The

1958

Thursday, April 17,

(1716)

low

decline; however, not to the

Money and the
Stock Market Outlook

fre¬
quently hears expressions of dis¬
appointment that recent actions
by
the
Federal Reserve, other
Federal agencies and the admin¬
istration

points out important offsetting favorable factors, as stimulus
to business from Federal Reserve and other government poli¬
cies; increased defense,

expenditures; and possible tax cut. Maintains constructive
view of the stock market is warranted by its strong technical

Certainly the pre¬
ponderance of news these days is

pretty clouded.

We see

unpleasant side.
carload'ings
the

lagging well
behind

year

which in

ago
turn

off

was

from 1956. We

find

40%

$800
million
over
1957
and
should
move up for several years there¬
after.
This we are reminded, is

We see copper -

prices at their
low point for

the last seven

We see ■<

cate

anticipating a sharply
rate for 1958.
The
problems of the oil industry are
all too evident with large imports
and a sharp cutback in allowables
in both Texas and Louisiana. Un¬

" f..~''

atmosphere of gloom

wonder how one can be
very optimistic on the stock mar¬
ket. Yet a number of highly fa¬
vorable factors are at work which
can well serve to bring about a
turn in the-market some time in
the next 60 to 90 days and start
market

upward trend

vigorous. /
expenditures for

while

Expenditure Pick-Ups

pick-up in expenditures will
in a number of important

seen

areas:

$700

million more in 1958
million

than in 1957 and about 16
kwh

capacity

vs.

8V2

million

kwh. added in 1957. This industry

steady expansion in capital

sees a

Expenditures for at least a decade.
Residential building is expected

result

over

million

new

units in 1958—a 5 to 10% increase
over

1957.

Multiple

family

unit

figures turned up- in November
and single family units are ex¬

modestly

to; be

pected

higher.

Federal agencies, FHA, etc.,
funds

have

available for lending

this year. There are many

ob vipus collateral benefits to a pick-up
in home building—for sellers of
home furnishings, fuel, garden and
do-it-yourself tools, etc.
Municipalities.
mands for money

state

and

number
and

local

have

come

Substantial

will

come

authorities.

de¬

from
A

already dusted off
market

with

bond

requirements by two per¬

points which resulted in

centage

sharp" increase in money and in
the credit supply of some $10 bil¬
lion. A cut in the rediscount rate
the

came

sultant sharp
led

due

which

were

the

the high rates

shelf

of interest

The

re¬

expansion in credit
of

some

subsequent

the

price-labor-cost-inflation
which
the FRB subsequently felt had to
drastically
policy are

be curbed—and rather
so.

The results of that

history.

now

The

started
First,
of

nouncement

rediscount

the

Federal Reserve
somewhat differ¬
we
had
the. an¬
a

full

rate.

cut in

V2%

This,

realized, placed no new money in
the
credit
stream;
however, it

clearly established the FED's in¬
of forcing lower interest

tention
rates

had

market
seen

The

borrowers.

forward

in 25 years.

bond

move

Subsequent

not
ac¬

that

note

a'lce;

that
tnat

ined

FRB

the

—

modest

open

market

purchases served to create
adequate, but not easy, supply
over the holiday peak.
The Fed then moved up the heav¬
an

of money

ier artillery,
reserve

with several cuts in
requirements — relatively

modest

cuts

about

"chew

the

billion.

increased the

of
credit
by
We shall, no

much

hand

mouth

rates

should

see

17,500
.

;

and it is being pushed^
properly to appraise the

investment' significance of fusion
it is necessary to estimate some
kind of time schedule and this in
turn

involves

understanding what

fusion is all about.

the

essentially

Fusjon

re-

—- — XmfS

up"

Brass Fabricators.

ahead

such

basis

the usual six weeks

has been the pattern in

past. With inventories in this
industry believed to be precari¬
ously low, it would take very lit¬
tle increase in business to bring
for

ment.

brass

ies, it is true, are excessive at the
at

according to
plans but

level.

budgeted
.

curement.

Since

for

AEC

pro•

My/i

AEC

the

purchaser, the AEC

procurement figures measure the
receipts to the industry.
AEC
A1^L

the
ine

Furthermore
urmermore»

ha«
n a -

will be
than '59, due to the

pointed out that fiscal '60
even

bigger

fact

that some of the

not

reach

after the start of '59

difficult

is
is

large

find
una

another
anomer

where

industry

substantial

such

expected in
Talk of "curbs"

increases

are

attrition, it would probably take
the several years.
from six to eight months to bring
and
"curtailment" is ridiculous
down the copper inventories to a
.
comfortable position.
The series and has misled many people.
of production cutbacks by this in¬
In case it is thought that industry should eventually bring
creased prices explain the inthis inventory situation into bet¬
creased dollars, figures in Table
ter balance.
I would point out,
f
.
.
II show the projected increases in
however, that the price

of the ma¬

jor

copper

down

company

nice

fat

are

from

the

50%

peaks of the last two years. Mag¬
ma

lost

over

down to
a

$34 and has since shown

modest

line

75%, going from $139

recovery.

The border¬

companies have already been

most

efficient

and only the

producers are opon

page

physical quantities, domestic ore
to be mined

produced

very

mass

weight which

in both fission and

important because
disappears as mass,

though
it actu-

into energy.

aNy Is transformed

The

oc-

fusion is

released equals the

energy

dest^yed

times the velocity
bght squared. Inasmuch as the

mass

miles
number is squared, it may be seen that
truly colossal amounts of energy

velocity of light is 186,000
Per second and since this
result

from

very

tiny losses

weight.

Now uranium,

though not a

^hly expensive^atenal,. not

posits of extremely high grade.
contracted That is to say, the large amount
°f uranium in the earth's crust is

in '60.

normal rate of

until

loss

The

curs

which

particles

the light atoms.

and capacity

been

has

production
It
it

compose

plants will

production

full

known

the

This is not even continuing

even

figures

Raw copper inventor¬

moment and

outstanding heavy atom, being the
heaviest one occurring in nature.)
Similarly when light atoms, par-

Continued expansion is demonstrated by the
figures in Table I which show the
at

for

products.
Copper.

those
is the

ticularly certain varieties of hydrogen (the lightest atom occurr*ng *n nature) are welded topreviously gether, a loss of weight occurs
that it will and mass is destroyed, based aSalh

the

effect the sole

Brass fabri¬

rush

the known

heavy

expand the expansion beyond
levels.
This is not curtail¬

not

yesterday and not

decided

expected, based on

particles
which compose
atoms.
(Uranium

Outlook

announced

the

greater detail

fancy originated

that

fact

expand

give the same story that
buying by customers is on an im¬
mediate
delivery
basis,
buyers
tomorrow

somewhat

AEC has announced that it will continue to

cators

want deliveries

other

composed.

Perhaps an impending
jf heavy atoms are split or
belle6 them are3 exam? fissioned the as much as would
resulting particles
Dene inem are exam
dQ nQt we|g}1

Fact—This
the

inventory by year-end.

steel

Continued

terest

Steers, Jr.

Newton I.

be curtailed.

consumption to produc¬
tion at the present could bring
about
the disappearance of our

further

•

obsolete.

uranium

In order

(1) Fancy—Uranium production
been, is being, or is about to

has

rate

and

forced to close down,

see

reserve

Beach, California.

13,000

Fancy—Fusion is about to

pushed,

Uranium

(consumption) of steel is greater
the production rate indicat¬
ing that inventories
are
being
whittled.
Buying has been very

further cautious cuts
requirements when and
the FRB believes necessary. In¬

doubt,
in

which

supply

Defow.

—

tion

195678

facts

than

about

•

present

policy
ently.

*A talk by Mr. Crane before the Farm¬
er*
and Merchants Bank Seminar, Long

February

following

months later.

available

issues

open

in July cut

market purchases and

th°at6tt———"ivVeToHoT medium weigh? w£gh somewhat
j
than the particles o£ which

Federal

the

accelerated

Board

some seven

public utilities, • gas and
electric companies, plan to spend
The

recall,

will

you

6,000
8,600

3,000,000
—3,600,000
5,500,000
7,200,000

SueTyVrotecl—3—"id?

of increasing the money
supply, although with consider¬
ably more restraint than in the
1953-1954 period.
In May, 1953,
as

\
Tons of
Concentrate

What About Fusion?

render

ren-

uranium

e r

(2)

ganizations as Allegheny Ludlum
selling 33% below the previous
highs. These same companies have that the demand-supply relationspent enormous sums of money ship will be in approximate bal-

gram

reserve

about

over

profit on money borrowed when
the prime rate was 4V2%.

rates.

Reserve

plans

about

Ore

1959—

comparison with obsolete. Thi9
is false. It has
the highs of the past two years
show a representative group of been said that uranium will be in
over-supply, even if fusion does
major steel company shares, in¬
cluding U. S. Steel, Bethlehem not affect the requirements pieSteel and such fine research or¬

to be rather

appears

now

byv businessmen
who could not see a "reasonable"

modest 3%

look

,
>

1956——--

of steel today in

clearly established; that is, a pro¬

money

capital facilities by business cer¬
tainly will be .down inT958, lower
interest rates should result in the
reinstatement of some capital ex¬

pansion

So far pro¬

market.' A

stock

the

water,

sea

at
the steel industry and the price

fu¬

of heavy

tainable from

discounted

great extent, be

Congressional approval of an improving plant and facilities and
increase of $5 billion in the debt are vastly more efficient operating
Major
ceiling will allow the military units than ever before.
to pay some of their bills and steel companies say they can op¬
erate profitably at a 50% rate of
sharply reduce the "lead" time
operations which, in view of the
on stretched-out orders, which in
high fixed costs, labor and new
some instances were scheduled to
plant, is an exceptionally low fig¬
run as far out as three years.
ure
and far below what might
Federal Reserve Policy
have been expected from an in¬
Second is the great change in dustry which until recent years
Federal Reserve
credit policies. was believed unable to operate
The Federal Reserve policy on profitably
except at very high

which could be xjuite
First

that

■

TABLE II

nuclear proc¬
ess
which offers great promise.
There is room for optimism that
fusion will some day be practical
and therefore it is desirable that
the fusion research program be

hydrogen, ob¬

However, this may,

term outlook.

year.
However, highly re¬
garded economists and military
people believe expenditures will
run possibly $5 billion more than
figures so far mentioned.

you may

the

sion

•

Fact—Fusion is

It has been
said

past

employment is at a new high, over
five million persons, and dividend
cuts or omissions are becoming
common.

rough balance.

overall.

world

ing the fact that a number of key
preseent a poor near-

expenditures indi¬

rise of

this

industries

1957, or just about enough to take
care of the increased costs in the

industry, is
lower sales

In such an

—

Spending.

posed defense

over-supply
at least another year.
The
automobile industry, another key

for

rather

not ignor¬

Steel Industry.

minimum 12-13 year program.
Defense

Nicholas E. Crane

aluminum

billion

$5+2

reach

figure.

years.

patterns do not always repeat,
one is worth noting!

program
in 1958 should hit its
stride. Expenditures are expected

be¬

last

year's

Highway

State

Federal

The

production
rate

ll i n d

bit naive to ex¬

its

started

based on

relatively low prices of uranium
equities should advance in 1958 as, on the one hand, earnings
figures are published and dividends are paid and, on the other
hand, it is realized that uranium purchasing is expanding—not
contracting, rates of fusion development has been falsely
exaggerated, and ending of guaranteed uranium market during
the middle 1960's will find at that time demand and supply

backlog alone. Author holds

ing of money.

economic indicators.

steel

19578

insupportable views
uranium shares selling for less than their earnings

industry are
widespread acceptance of
about uranium as being responsible for

Mr. Steers who blames

easing, borrowing and spend¬

the

Inc.

"facts" regarding the uranium

versus

dissected by

In May, 1953 the
policy of active
Numerous
articles
have been
that prevailed until last Nov. 14.
ease.
In July, 1953 the rediscount
appearing in the public press in
This will give a sharp impetus to rate was cut; however, business
recent months relating to uran¬
the
building of institutions, did not level off until May, 1954
ium.C
It. has
been
said
that
schools, hospitals and highways. and turned up in August, 1954. uranium proThere is a necessary lag between
Since my discussion is primarily
duction is
the raising and spending of these on the stock market outlook, I
about to be
funds; however, they have been would like to remind you that the curtailed. It is
or
will be raised, and they will market turned up in September,
not, either in
be spent.
1953, only four months after the this country
There
are
other
encouraging FRB took the first step. While
or in the free

atmosphere

economic

"Fancies"

pect an immediate jolt to business
due to steps taken in Washington.
There is a necessary lag between

FRB

The

STEERS, JR.

Development Mutual Fund,

one

had

not

have

It seems

omy.

position, its discounting of the unfavorable developments
already registered, and the large steady demand from institu¬
tional investors. Concludes sound growth companies should
now be bought.

about,

stimulating effect on the economy.
The
slashing of the rediscount
rate for instance, while sharply
boosting the price of bonds, had
110 immediate effect on the econ¬

and research

housing, highway, utility,

President, Atomic

traveling

of business recession,

analyst, after noting elements

Market

the future.-

N. Y. Stock Exchange

Witter & Co.; Members

By NEWTON I.

continue well into

policy should

E. CRANE*

By NICHOLAS
Dean

Uranium—Fact and Fancy

point^een in 1953 but we can be
confident that the easier money

and concentrate to be

in mills in the

States.

United

sufficiently well dispersed so subthat
.g
moderately expensive
g

gtance

(the government

pound of natural

is $18.18). The special

variety of

the leading

hydrogen which
role infusibn

price for

uranium metal

experiments at this

time is called

deuterium and it is

found in sea water

of about one part

to the extent

deuterium per

J»000 Parts or ordinary hydrogen.

However, the cost of separating
deuterium can be brought down
a
rather reasonable
when large quantities of

figure

deuter-

him are being produced. InciContinued on page 62

TABLE I

Fiscal

AEC from the U.S.

% Increase Over

AEC Total

Years

(Millions of $)

Previous Year

(Millions of S)

171
322

Previous Year';

275

134

247

% Increase Ovet

+27%
+43
+ 31

377

+ 37%

576

+ 53

650

+ 13

Volume 187

Number 5734

Commercial and Financial Chronicle
The

(1717)

through the billion dollar City Southern, Union Pacific

level for the first time.

THE MARKET... AND YOU
By WALLACE

❖

and

Southern
Pacific
held 1957 results

Shields A Co. Admit!

that

respectably

Cosgrove As Partner

In the
amusements, Ameri¬ in line with those of the pre¬
Machine &
Foundry is vious year and offer above-

STREETE

The Wall Street investment
firm

can

still

Stocks found
this week

some

support

measures

including spotty de¬ effective.

mand for the rails while the

utilities

continued

❖

inch

lot

Si!

The stock has

attention

will

was

the

brightest in a month and a
couple of advancing sessions

steel

companies

the

been

basically'
despite
33% boost in earnings and

static for the last
year

higher for ihe most. It added paid to the
reports of the big

up to one session that

last dividends and prospects that

week of the month. If
expec¬
tations are in line, the

earnings this

giants

year

favorably

pare

will

with

dividends. And this

Company, 44 Wall

tected

by the in¬

which

return

and may or may not coincide with

the "Chronicle's"

views.]

Jr.,

Bear, Stearns & Co.

the

own

the

New

York

and

firm

general part¬
ner.
Mr. Cos-

grove, a member'of the

Bear, Stearns & Co., 1 Wall
Street, New York City, members
of

Cosgrove,

has been
admitted to

To Admit Partners

com¬

last

put together for the first time —U. S. Steel and
Bethlehem year's
$3.51. It leaves the
in about the same
period.
—will just about cover their
$1.60 dividend rate well pro¬
$
:S
if
.

Shields

highly favored since its average 6 to 7% yields.
Street, New York City, members
blossoming bowling alley pin[This column is intended to re¬ of the New York Stock Exchange,
fully setting activities are increas¬ flect the "behind the scene" inter¬
announces
that Warner
ingly important to earnings. pretation from the nation's Capital

become

can

New York

Stock Ex¬

Midwest

change

Stock

Exchanges, on May 1 will
Cummings, Alan
Greenberg, Mark J. Stuart,

since

1946, will di¬
just about in dustry that in past years was 4j/2 % is indicated.
This, in¬ C.
rect the firm's
the middle of the 1958
trading the premier boom-bust one. cidentally, when known pri¬ member of the New York Stock
activities on
Warner G. Cosgrove
range which has seen 460 as Moreover,
the Stock Ex¬
against the talk of marily as a machine producer, Exchange, and Sigmund Wahrthe area where
change floor.
red
ink
sager to partnership.
if steel operations was also in the
Mr. Cum¬
selling be¬
ultra-cyclical
Mr. Cosgrove had been a gen¬
comes
mings makes his headquarters at
general and 436 as the ever got below 75 or 80% section of the stock list.
eral partner in the former Stock
the
firm's
Chicago
office,
135
supply area for bargain hunt¬ which was rife a few years
*
*
*
Exchange firm of Cosgrove,
South La Salle Street.
ers to
move in and stem de¬
Whitehead & Gammack. He is a
back, it is doubly ironic that
An example of
accounting
director of Roger Smith Hotels.
clines.
there is little of this talk now
improvement that can shore
'/
;
*
*
*
It left the list

admit Patrick J.

Ure, Davis & Co.

and only concern over
ability
tight range and to earn their dividends when
general stability operations are at less than

the
of

overall

the

market

distinct

half of

political handt h e
near-frantic

wringing,
calls
ures

and

for anti-recession
of

meas¬

emergency nature

the

distinctly sour earn¬
ings estimates of first quarter

Another

concern

the

market

when

recent

the

Johnson

the

million annual

charge to fund

pension plan dips to around
%\Vz million this year in the

in¬

vestment

companies chose to final payment. One analysis
large blocks, the pre¬ points out that the reduction
results which are
starting to dictions ranging to where of this
expense
this year
appear at annual meetings.
such sales would be the final could add 35
cents
to
if

Where

results

straw to breed chaos. But

are

SALT LAKE

re¬

earnings and $1.25 next
offer¬ year when the requirement

To Admit B. Smith

CITY, Utah—The

firm

name of A. P. Kibbe &
Co.,
First Security Building, members
of the Salt Lake Stock
Exchange,

become

has

been

changed

Ure,

Davis

& Co.

Joins

Townsend, Dabney

PORTLAND,
A.

Hall

has

With Fusz-Schmelzle
(S.oe lal to The Financial Chronicle)

Maine—Charlotte

been

added

May 1 Bailey Smith will
a partner in T. L. Watson

Co., 25 Broad Street, New York
City, members of the New York
Stock Exchange.

(Special to The Financial Chronicle)

dump

per-

'•<

T. L. Watson & Co.

New Firm Name

shoe

change in
depreciation caused earnings
to dip
slightly. Then a $2.1

has been for the welfare

years

dicott

section. Last year a

capacity.

contrast to the

this year's earnings is En-

This rather

the

ALTON, HI.—Charles C. Meno

staff of

son,

Inc., 2508 Brown Street.

Townsend, Dabney & Ty¬
184 Middle Street.

with

Fusz-Schmelzle

Co.,

cently, via secondary
poor the pattern seems to be ings, one fund sold 100.000 would: be
ended, assuming
for the top officials of the
Chrysler and another 123,000 that-, business holds steady
companies to lay it on the line shares of Illinois Central-4- which ."seems,
likely. • Working
when they
get together with some $10 million of stock— capital is high,M coming to
"

stockholders.

market

general the

and

affected

the

issues

reacted

only slightly unduly it wasn't at all
to most of these, the affected
parent.
issues
dipping slightly but
Individual Situations
obviously not too surprised. It

around

the market" price of
shares, which lately have
been
hovering toward the
high side of a rather narrow
five-year range of 38-26. Its
the

ap¬

also would indicate that when
the actual, audited results do

individual

there

situations

return runs around 5 Vi.

plenty of leeway in

was

officially there will be spots. Babcock & Wilcox, a
for the market to giant in the
generating equip¬
discount, and this is among ment field including nuclear
the brighter aspects of the reactor
work, has a full year's
appear

little

Seasonal. Pets
The

left

seasonal

moment

pets

the

largely in the soft
drink issues which, in addi¬
moment.
backlog on the books > and tion; to being regarded as a
while it is conceded that earn¬ defensive group, normally do
The market is seldom com¬
ings could slip a bit from the" better- as hot weather ap¬
pletely out of the woods when $2.69 earned last year, the $1 proaches. Consumption has
the economy is troubled, so cash dividend wouldn't seem been on a steady uptrend for
there was a good share of to be in
the last several years as the
any particular jeop¬
caution
wartime
around.
If
second ardy and the
population spurt
expectation is
quarter results fail to show that it will be supplemented grows into the age bracket
some
sort of a pickup, and again with a stock payment. where they become consum¬
ers.
For
if
Canada
if
if
Dry and
dividend coverage gets thin
Pepsi Cola the yields run to
D r il g
o r
company
earnings
definitely suspect, the
around
51 •>
-while
even
have been among the
brighter
chances of cuts and omissions
stately Coca-Cola's return
could
keep the market re¬ spots. But investment enthu¬ runs' around 4:3/4%
With
siasm was a bit tempered
by weather favoring them, the
strained, so the good perform¬
are

this

ance

sarily

week

the

isn't

end

all

doubts. But at least it

was

the

fact that they have had companies expect to continue
the good sales pattern they
good runups in recent desul¬
the
turned in last year and expect
tory markets and the disposi¬
en¬
to keep profit
margins under

neces¬

tion seemed to be

couraging.

one

of wait¬

ing for price dips before tak¬

control
are

The Plus Side
:

here

and

there

pany manages to

increase
in

come

sales. In other

forts

back

prove

hold

slightly
the

or even

its

face

net

profit

ble

1958

prospects

even

erudite
cause

are

among

costs

and

margins,

cut
im¬
are

lines there is

lag before these

inevita¬

economy

General

Foods

serious

the cratic

cause.

completely

and tax shackles

are

ignored the recession and for items

that

could

quarter posted

rec¬

rapidly

ord sales and

earnings for the eral

period

indications

with

its fiscal year gross

on a

be¬

seem

making and be¬

they

the March

both

of the bureau¬

cause

high-leverage
snap

one

new integrated oluminum
plant at
of over 115 aluminum foil mills built by Blaw-Knox.

Record 180,721,000 pounds of
aluminum foil rolled in 1957—
most of it
As fast

Blaw-Knox Mills

versatile aluminum foil

by supermarkets, food

departments

—

and

for foil

produced, it is gobbled

home-builders, defense

long list of industrial

—

can

processors,

users.

The future

and for Blaw-Knox, the world's leading

This

Throughout industry, Blaw-Knox equipment, engineering
and research
It

your

metals,

helping American enterprise build futures.'

is concerned with rolling

with road

munications
you

are

company

—

building,

Blaw-Knox

want working with

Knox,"

describes

our

Write for your copy

you.

fabricating

chemicals, processing
the

forward-looking

com¬

company

Our brochure, "This Is Blaw-

products

and

services for industry.

today.

back

turn in the gen¬

economy.

everything from heat-'n-eo# meofs

radiators roll from Kaiser's

car

builder of foil mills.

attempts to rid

some

be in the

and

Ravenswood, West Virginia. It is

looks great

investors,

them of

Food shares

earnings

High grade rail issues were
still favored by some of the
at

current levels.

words, the ef¬ favored groups and for

starting to become visible. In
most

with

in¬

lower

management
their

com¬

that better

projected.

ing a position in them. They
plus side is the fact aren't, however, out of line

On the

that

WRAP IT IN MIRRORS. Miles of aluminum foil for
to insulation

BLAW-KNOX COMPANY

applied

that particularly to those like
will break Southern Railway, Kansas

1231

Blaw-Knox

Building

Pittsburgh 22,

• 300 Sixth Avenue

Pennsylvania

Financial Chronicle

The Commercial and

Thursday, April 17,

(1718)

SOUTHERN
Sixty-Fourth Annual Report for the Year

Ended December 31,1957
■

April 7, 1958.
To tKe

Stockholders of

SOUTHERN RAILWAY

report to you that the
year 1957 was the third best from a net income stand¬
point since the incorporation of your Company in 1894.
1957

for

Earnings

adversely affected by

were

the general decline in business activity
continued in the first quarter of 1958, the Company has
made a creditable showing and we expect 1958 to be a
Although

1953467

Southern serves
and is part of
that growth. Currently, 250 new industrial projects are
under way along our System lines or firm plans have
been announced for beginning of construction, with an
good year. A promising factor is that
area of continuing industrial growth

going ahead

million. Planning is known
other major industrial projects.

$(500

totaling

to these new customers, and to all old
ones, is Southern's determination not to increase any
freight rate where doing so would reduce our net in¬
come, and our further determination to attract additional
volume by reducing rates wherever advisable.
Important

employees.

the year ended
by our Board
of Directors for presentation to the stockholders at the
annual meeting in Richmond, Virginia, on May 20, 1958.

The

HARRY A. DEBUTTS,

President.

REVIEW OF 1957

V<;%A; yV<%'

'"/:]} '

the several subdivisions of oper¬
taxes and equipment and joint facility

1952-56:
-

;

•'/.>•

'... ■

Transportation

of Way—,.
of

Traffic

31.3

Expenditures for new plant and

13.3

13.1

Manufacturing

17.5

17.2
,1.9
4.3
0.7

17.4
1.9
3.7
0.8

Value

68.6

11.6

—

Expenses———.—

—

Expenses——-—

13.4

68.2
14.7

1.8

1.4

1.7

2.2
4.9
0.6

v..

Per

——

Taxes

Equipment and Joint Facility Rents—

83.4

84.8 r:

Totals

84.6

each

for

the

1957.
in its

past five years, and
Common Stock—com¬
each year as dividends

Preferred Stock—were:

in 1957 were covered 3.98

Earnings Per Share of

After Taxes and

Stock After
Preferred Stock Dividends

Charges

Common

$33,190,325

$4.65

26,262,681

3.58

During 1957, dividends of 5% on the
continued in the total amount of

were

70(5

per

A further dividend

1958, to stockholders of

of 1957.

were

the following page.

record February 14, 1958.

Operations were conducted with continuing economy
in 1957. While there was no increase in

well among

The

Company continues to rank
the leaders of the railroad industry.

1956

proportion of gross revenues carried through to

railway operating income before
amounted to 20.2% in 1957, as

Average

1957

1952-56

23.5%

in 1956 and 13.8% for Class I

federal

income

compared

with

railroads in 1956.

studies

that for Southern the "across the
recent years have been sipiply

prove

increases

"merry-go-round rides to nowhere" in the highly com¬
petitive transportation business. By keeping rates down,
and lowering them when possible, it is hoped that the
ness

increased volume of busi¬
and, from the increased
obtain the larger net income that Southern
geared

volume,

handle

and all other railroads need

and should have.

Capital Improvements

Company's plant are
being made through the expenditure of capital funds for
Continuing improvements to the

new

and modern facilities.

Inman Yard at
of

all

Work

the new $15,000,000

Atlanta, Georgia, was continued at a

cost

$8,130,622 in 1957. This with other improvement work
over the System added $17,140,389, gross, to the road

property account in 1957.

of freight moved

Industrial Development

Equipment

New

During 1957 there were 91 new industries located on
Southern System lines, 66 warehouses established, and
additions made to 98 existing plants, all of which proj¬
ects were of substantial size.
Aggregate investment in
the 255

Operating Expenses

position because comprehen¬

Company took this

The

in 1957 to assist in providing for a sub¬
stantial increase in wage rates, the recognized indices of

taxes

63,749,400
69,134,507 64,448,411
Average distance moved
'
—
226 miles
222 miles
220 miles
Ton miles_.
14 billion
15 billion
.14 billion
Average revenue per ton mile
1.622 cents 1.570 cents 1.475 cents
Number of passengers
1,427,967
1,602,854
2,193,433
Average journey
:
300 miles
300 miles
262 miles
Passenger miles
428 million 482 million 574 million
Average revenue per passenger mile 3.191 cents 2.972 cents
2.863 cents

gross revenue

net

transportation agencies and where such lower rates may
be expected to add to the Company's net income.

Company can get and hold the
<

Business Handled

will continue to press actively for reduc¬
commodities where such reduc¬
to meet the competition of other

necessary

are

Operations

Revenues

tions

28, 1958, out of surplus
This dividend was. paid March 14,

the Common Stock on January
net earnings

the Company

board"

4.78

the coun¬

position was, and still is, that it will not increase any
freight rate where doing so would price it out of the
market and reduce its net income. Whenever advisable,

sive

5.39
5.52

the Company stood alone among

1957,

of 70(5 per share was declared on

38,871,606

tions in rates on selected

performance show that the

try's major railroads in refusing tp join in a requfegt
for a general increase in freight rates. The Company's

paid for each quarter of 1957,

$13,652,444, mail revenue to $10,503,030. Business handled
in 1957 as compared with 1956 and the average of the
five years, 1952-56, is shown in the table at the top of

Tons

43%
38%

Rate Case Position

Preferred Stock

and efficiency

steady flow of inquiries and continuation rof
along the railroad form the foundation for
continue to share substan¬
tially in the country's future industrial progress.

$3,000,000. .;

declared on the
bring¬
ing the total dividends paid in 1957 to $21,174,800, the
highest in the Company's history.
of

Common Stock and

Operating revenues in 1957 were $266,846,150, or
$8,539,341 less than in 1956, a decline of 3.1%. Freight
revenues amounted to $233,738,056, passenger revenues to

18%

belief that the South will

our

1956.

roads in

34;066,710

37,993,249

;

———

";*•

studies

site

charges, for maturities of
corporate needs and for the owners,
15.2(5 out of each dollar of 1957 operating revenues, as
compared with 16.6(5* in 1956 and 10.1£ for Class I rail¬

Dividends

Net Income

—

However,

Dividends

income

38%

.30%
30%

54%

past few months there has been some indication
"wait and see" attitude on the part of industry.

remained for fixed

There

In the

times as com¬
pared with 4.08 times in 1956 and 3.50 times on the aver¬
age for the period 1952-56.
Fixed charges

—1
'

Income——_—

•

113%
57% ,: '.177% jr153%
221% .

47% /

sales

Cash Farm

income.

sales

Wholesale

contracts..__

produced———3

personal

capita

•Retail

energy

•

52% f
127% (

37%

equipment—

payrolls

construction

Electric

\
Totals

manufacture.——77-%%-.82%
9%- ""
22%

employment.————_—

Manufacturing

71.4

—

Equipment

Expenses-—,

Incidental

./
For the

For the

31.2

-I

entire U.S. Southeast

■ *.■

1952-56

32.5

■-.

various economic fields:

A;,?' Dollar-value added by

Average

All will be directly

comparing the year 1956 with 1046 (or
following percentage increases in

report,

13.7

—

——

Maintenance

1956

1957

and fiberglass

board

1947) and showing the

in the

five years,
;

gypsum

expansions at existing chemical

aluminum operations.

by;Southern.

merce

number of cents out of each
dollar of revenue, are shown- in this table with cor¬
responding ratios for 1956 and for the average for the
expressed

announcement had been

1958, of major new plants Jd

Expansion in the territory served by the Company is
demonstrated by a recent U. S. • Department of Com¬

The ratios for 1957 for

rents,

nickel-cobalt,

produce

along with substantial
and primary

Ratios

ating expenses,

beginning of the year

At the

made, for construction in

debt, for capital and

Net Income

equivalent earnings per share of
puted after provision of $3,000,000

plant served

served

;■:\./

.■'

Grand

Southern earned $34,066,710 in
Company has earned more in only two years

Net

$45,691,368.

operating income was

Sincerely,

After all charges

history.

1957 was $40,530,797.
represents what was left of operating revenues after
deduction of all operating expenses, taxes, and equip¬
ment and joint facility rents,*but
before payment of
interest and other fixed charges.
In 1956,; net railway
This

General

report on the following pages, for
December 31, 1957, has been approved
The

Operating Income

Net Railway

railway operating income for

Maintenance

appreciate the continuing loyal support and under¬
standing of our customers, 'our stockholders and our
We

preciation under Interstate Commerce Commission ac¬
counting classifications, was allowable in computing fed¬
eral income taxes. For 1957 the difference between the
book and tax figures amounts, in taxes, to 73d per share
of Common Stock, as compared with 81£ in 1956.

Net

is doubling the,capacity pf
exclusively by Southern just north
Mobile. Bowaters Southern Paper Corporation is install¬
ing a fourth machine at its newsprint plant at Calhoujo,
Tenn., a local point on Southern, while the Duke Powpr
Company added a second unit to its planned five-unit
generating plant at Belmont, N. C., another Southernexclusive industry. Other notable expansions were made
or
started in 1957 by Champion Paper Company at
Canton, N. C., Chemstrand Corporation at Decatur, Ala.,
Olin-Mathieson Chemical Corporation at Pisgah Forest,
N*.-C., Springs Cotton Mills at Chester, S. C., U. S. Pipe
and Foundry Company at Birmingham, Ala., and Uni¬
versal Atlas Cement Company at Leeds, Ala.
t;Alabama Power Company

its

• -

the

decline in business activity and by large in¬
creases
in wage and other costs. Careful controls by
Management held the increase in operating cost to one
per cent over the preceding year.

investment

Rapid amortization on certain capital investments made
national defense, while not chargeable to de¬

general

and preferred

v:<-:••

in aid of

COMPANY:

gratifying to be able to

share after charges, taxes

ings of $4.78 per
dividends/

that

1957,

During

the

Company

received

and

put into

service—■

projects amounted to $418,433,000. It is estimated
new
and expanded facilities will produce
$10,839,257 for System

1,153—50-ton box

cars

308—70-ton coal

cars

these

additional annual net revenue of

Operating expenses continued to be affected by the
upward climb of wages and costs of material, and were
higher by $1,718,527, an increase over 1956 of just
under 1%.

Railway tax accruals for 1957 were $30,953,668, a de¬
of $5,937,946 from the previous year.

crease

accruals

were

equivalent to

per

share of Common Stock

of each
amounted to $4.76

dollar of gross revenue. Taxes for 1957

out

compared with net earn*

380—70-ton covered hopper cars

provide employment for 14,274 workers.

5—65'6"

industries, listed alphabetically, for which
broken during the year include Alabama
Power Company's generating plant at Wilsonville, Ala.,
Bowaters Carolina Corporation's pulp mill near Rock
Major

ground

Taxes

Tax

lines and

70-ton

new

was

Hill, S. C., the silicon plant of E. I. duPont de Nemours
Company near Brevard, N. C., General Electric Com¬
pany's plant at Somerset, Ky., which will manufacture
automotive headlight equipment, Individual Drinking
Cup Company at Lexington, Ky., and Westinghouse
Electric Corporation's transformer plant at Athens, Ga.

gondola

cars

1,846—Total freight cars
the

cost

which

was

$19,402,756, of which $3,644,696

The remainder

was

paid from the Company's treasury,

was

financed, $11,080,000 through equipment

$4,678,060

through

amount of

$1,648,901

conditional
was

sales

trusts and

The
better-

agreements.

spent for additions and

Volume

Number 5734

187

The Commercial and Financial Chronicle

(1719)
ADVERTISEMENT

SOUTHERN RAILWAY (Continued)
ments
:

equipment.

Thus gross

account for equipment were

his loyal and valued services to the
Company over the
-period of his directorship."

charges to the capital

$21,051,657 in 1957:'.

and have

material

effect

the

financial condition

livery in 1958 for Southern Railway Company 122 freight
cost $1,183,750. This equipment has been financed
through conditional sales agreements.
"
7
/

Acquisition of the Atlantic and East Carolina
Railway Company

cars to
1

operating ability of the Company, although they
will,
in general, produce a lower ratio of net
current assets

>At the close of. the year there were on order, for de¬

mission the

With delivery of all equipment on order by the Com¬

With the approval of the Interstate Commerce Com¬

stock

2,970,265 as compared. with 2,488,080 at the end
war, a 19.4% increase. \\ ■'
>7' 1

/T-Tonnage Capacity—

ofjthe

2,500,000 tons

1957..1.—....

3,000,000 tons

•-

v-rM-; Equipment

-•

t** ''

*?".

•

(

'J* '

Obligations

'■

■■■

-as

f. vm -

Public sentiment in the

•

^ '

■

-•
•••

Equipment obligations outstanding at the end of the
year amounted to $82,716,409 as compared with $75,£513,255 at the end of 1956 and $86,482,460 at the end
Cfrt 1955.. '
:.
:r

■

'■

t-~t>7

n,.

estimated

.are

country

and

•

and

other

offset

$10,647,155.

This

•this earlier 5%
9%

than

7 latter
crease

organ¬

l;VFlorida East Coast

/The reorganization of the Florida East Coast Railway
Company,'"] referred to in the Company's 1956 annual
report, is still pending before the Examiner of the Inter¬

maximal,

increase,

August 26, 1957, making a

subject

certain

not

was

"holddown^.

petitioner

During 1957, 33,640 net tons of new rail were laid as
compared with 39,840 net tons in 1956 and 33,552 net tons

thia

some

major commodities.

•

South-

23, 1957,

filing

with

the

Interstate

Commerce

Commission

proposing increases in freight rates and charges

selected

commodities.

The

Commission

approved,

subject to its further order, certain of these
increases,
effective February. 15, 1958. An increase in
revenues of

Commission,'mo Examiner's report hav¬
ing yet been filed.
...

the

average

approximately $2,000,000 annually should result.

";7';v;'7

Use in 1957 of the Company's Financial Resources
'•»"
'77.7.' '
7
*. ' ,>'■
7

s;-,.

roll and many other
"

agencies
source

(85%

4 tributing

r,.and additions and betterments to equipment.

•?

Combined,

V, these capital expenditures from treasury cash

came

$32,676,162; in 1957, compared with $30,533,240 in 1956
and $22,556,208 in 1955. Cash dividend payments in 1957
were $21,174,800
as compared with $19,876,600 in 1956
and $13,385,600 in 1955.

After these payments, the Company had

temporary

cash investments $47,464,156

the year.

;

■•£

■

•

;;

.7.. /

•'

end

•

securities

held

of its

the

also

result

ployee

■

state Commerce Commission,(less charges on

of total freight traffic).

carriers

assembles

176

involved

its

Estates

interline

Express Rates

application of the Railway Express Agency for

country.

distributions, I. C. C. required records and
earnings

and

taxes

also- tabulates

withheld,

and

issues

Labor Relations

During the

re¬

Conductors,

neers,

em-

year 1957

Train Porters

705

maintains

tiation.

the Com-

up-to-date

records

and

owned

all

information

required

tional

state

governments.v

The current net fixed

charges

;

are

■

being performed

equivalent to 3.9% of

-i

gross revenue in 1930.

♦-

being absorbed

debt

>1956 and

$23,150,000

■

1957 and

the 'year

1958

Railroad

compared

with

$23,166,778 for the

approximately
$22,550,000 for the year
1956.

Commission,

under

its

;

now

Uniform System of Accounts,for

sheets, which changes

industries.

for

1957

The

reflects

Southern

Railway's

the revisions

the Commission's order.

•

'/•

;

•

...,;

director

is a
nationally-known public utilities
formerly was president of Georgia Power

reported

cash

hand

reduced

the

This

will

result

cash,

and; in

turn,

current

assets,

In
;

addition,

within

one

injuries to
will

reserves

1959.

These

settlements

cost-of-living ad¬

effect

with

all

of the

Labor

Organizations,

the

em¬

cost-of-living increases amounting to

effective

May

1957,

and

per

houff

All employees received the

November

while

1, 1957.

outstanding.

•

Personal Injury Claims

marked

1956.
-

1957,
a

recent

Total

transferred

the

current

continued.

years,

payments

of this

reduction of $177,505.

kind

were

However,

$1,884,497 for

...

Looking Ahead
So

equipment and otner long term debt obligations payable

The

far

what has

liability

! *

one

year

•

compared with $2,062,002 in the previous year9

claims for

and for loss and damage to freight

of the balance sheet.

the balance sheet.

gratifying to record that the Company was able actu¬
ally to reduce this cost during 1957, as compared with

pay-

section

within

•' 1

Southern
come

has

not

to be regarded as the

rating railroad situation.

principal amount of
-

the

industry

and

participated appreciably in

Southern

its future

generally deterio¬

is, however,

will

will be shown
These

changes

are

separate

item

technical in nature

events
ern

affecting the railroad industry

has therefore participated

as a

part

determined

*■

three-year contracts

for estimated amounts to be paid

retired

for liabilities arising from

year

persons

treated

■

vice-president of The, First
7' National Bank of New York, was a director of Southern
Railway Company for 15 years. In accepting his resignation, the Board "expressed their deep appreciation of

and

70 per hour second-year increase provided in the three-

very

reducing

Hooper,

1957,

increasing costs of personal injury claims,
resulting largely from higher verdicts, which has been

the

public.

hands

able, and current liabilities/

the

The trend to

negotiable instruments outstanding in

corresponding reduction will be made in accounts

iji',

*Mr.

the

reported

Federal, Reserve Bank of Atlanta, a
Emory University and is active in Georgia
civic and
community organizations.
" "
trustee

hour

•

Late in 1957, the Commission ordered further changes

the

Company and now is president and a director of The
Southern
Company, parent company of the Georgia
Power Company, Alabama Power
Company, Gulf Power
Company and Mississippi Power Company.
He is a

basis for

received

hour

per

were

Branch

per

amount of certain

Mr.

•

year contracts

to take effect in 1958 which among other things
require

Southern

executive.- He

na¬

At the close of the
year, no requests for wage increases

annual

provided, for

that

Branch, Jr., of Atlanta, Georgia, president of
Company, was elected to the Board to
serve the unexpired term of Mr. Leverett F.
Hooper, of
New York, resigned.
'
•
'

additional

November

effective November 1, 1957.

gen¬

The

ployees

Companies, prescribed certain changes in 1957

other

report
■

July meeting of the Board of Directors, Mr.

Harllee

♦

effective

12720

1, 1956,

balance sheet presentation more in line with that used

New Member of Board of Directors

the

OF GENERAL INTEREST TO THE STOCKHOLDERS

erally accepted;accounting principles and to bring the-

year

the

designed to conform to the current trend of

were

for the format of railroad balance

amount

Interstate * Commerce

authority to establish

for interest, rent for leased lines, Equipment
Obligation maturities and Sinking Fund payments to be

The

;

accruals

provided

increase

Under "escalator" clauses

■

Payments and

justments at six-month intervals.

the

$166,995,500 at the end of 1955.

November

also included the "pattern"

Company outstanding in the
hands of the public at December 31, 1957, amounted to
$124,012,500 as compared with $125,926,500 at the end of

generally followed

prior to November

creases

with reduced costs.

ICC Accounting Changes
The funded

and

further 70 per hour increase effective November
1, 1958,
moratorium clauses
precluding any other general in¬

before and requirements for additional paperwork,
which seem to be ever
increasing, are

effective

hour

per

efficiently and economically than

ever

the 1957 gross revenues, as compared with 3.9% in 1956
and 4.4% on the average over the five
years, 1952-56.
Fixed charges were equivalent to more than 15% of

■v

computer, the railroad's accounting work is

Dispatchers

Firemen, consisting of

settlements

Crafts and with

of Engi¬

"pattern" established earlier with Non-Operating

increase
With this

Train

V."

These, wage

and

Trainmen,

wage requests

disposed of through national nego¬
increase was also negotiated witla

wage

the. stock¬

federal

pending

were

Yardmasters.
The

The

15%

increase in express rates is still
pending.

processing of payroll records, the

Basic express rates remained
unchanged in 1957.

Savings Bonds paid for by payroll deductions.

by the Company),- were at the annual rate of approximately $10,332,000 on December 31, 1957, as compared with $10,";648,000 at the end of 1956, and $11,810,000 at the end
■

the

of 1955. ;

subsidiary and income from holders of the Company and prepares dividend checks

Leasehold

adjustments

mail revenues of
approximately
annually, effective September 1, 1957, or approxi¬
mately $700,000 for the year 1958.

same

information

certain

will produce increased

freight

From the

Valuable

ports for management purposes.

'"'O

accounts

writes pay checks for 25.000
employees of
Southern System and affiliated companies and prepares

by the Inter-

bonds

.'r

rates, which together with

basis of calculating compensation for carrying the
mail,

;

traffic movements, and furnishes
daily reports to repre¬

expense

pany's

the

processes

revenue

shipments.

Net Funded Debt and Fixed Charges
£7*;
•.
;•
•*'- 'v
.The Company's fixed charges, as defined
,

•

machine

cash and

the

sentatives in 89 offices throughout the

^
l"

*•

Railway Mail Pay

An Interstate Commerce Commission
order of December 30, 1957,. authorized increases in
railway mail pay

documents, it performs the complex task of dis-

spent $15,021,419, consisting of $10,128,245 of equipment
,f obligation installments, and $4,893,174 for new equipment
r

applications.

The' computer

•

■

from its treasury cash for capital improvements to road
and, structures, $17,654,743.
For equipment there was

•

;

the IBM 705

Southern's electronic computer, the IBM 705 Model
II,
the first in business use
anywhere, made a significant
contribution in 1957. After one year of
operation, it is
on a two-shift basis for
freight revenue accounting, pay-

In addition to meeting all of its current
expenses, taxes
and fixed payments, the Company paid during the
year

Accounting

over

maxima,

increase ip

same

further 4% increase in addition to

increase

Railway Company

tariffs

the past five years. The Company
has ordered 29,870 net tons of new rail for Ihe
year 1958.

.•.

to " certain

the

•

and

state Commerce

subject

To offset increased
wages and other expenses,
ern joined with other
railroads, on December

to the effect

New Rail

rates,

increase and did not
apply the subsequent 4% in¬

wel¬

'';V/7:i77'''.77

on cash
by depreciation, exclusive
amortization, chargeable to operating expenses
i ih the amount of approximately $14,909,000.

general

Southern

will

freight

the southern roads

city, officials, shippers,

businessmen^. Chambers of Commerce

izations and interests.

of jrapid

•

State,

enthusiastic

authorize^

was

received

intra-territorial rates, subject again to the same
effective February 23, 1957. The Commission

Installments of equipment debt payments due in 1958

...

System officers

from

come

territorial

effective December 28, 1956,

Railway

Rates and Fares

;

mission granted the railroads-an increase
of 5% in inter-

strongly in favor of
Southern acquiring the A.&E.C.
On a three-day "get
acquainted", trip shortly alter the purchase. Southern
area

stated.

It will continue to be operated
short line railroad.

separate

liabilities

'As reported last year the Interstate
Commerce Com-»

Railway Com¬

port of Morehead City, N,- C.,
approximately 96 rtiiles to Goldsboro, N. C., where it

.•

;

Carolina

connects with Southern.

Year

1947.....:

'-I" Vr

East

extends inland from the
*

"•••••'.•

and

railway

Year

£ V'

of the Atlantic

"'i

pany, at an aggregate cost of $525,000".
The acquisition
of this line gives your
Company another deep water port
outlet on the Atlantic Ocean.
Traversing an area rich in
industrial development potential, the line fof

and its affiliates, the gross investment of $170,000,';;0OO since World War II, will bring the tonnage capacity
7 ©£
the System's
entire ownership of freight cars to

current

■

Company in 1957 purchased all outstanding

pany

net

whole

South¬

actively in representation®

Chronicle

The Commercial and Financial

Thursday, April 17, 1958

(1720)

Exposing Short-Sighted
of the Year

Financial Position at the End

(Concluded)

SOUTHERN RAILWAY

appropriate authorities looking

made before the

improvement of the common earner

Cash

$26,848,560

22,184,736

31,114,595

18,669,382

19,145,970

9,394,457

investments

10,907,200

supplies

and

Working

fund

advances,

'•

$31,803,736
58.963,047

19.734,566

•

carriers.

from the common

670,141

780,561

736,180

must be allowed more freedom to
make competitive rates. There is a substantial movement
of freight by other carriers that could be handled more
economically by rail. The rail proportion no longer
(2) The railroads

Restrictions on rate making de¬
rail monopoly are out of date and

signed to prevent a

Investment

should be repealed.

of rail¬

donations and grants,

roads.

commodities exemption should be
intent of the

(4) The agricultural

nearly reflect the real

be recognized
not merely a

(5) Train service discontinuance should
an interstate commerce problem, and

139,373,431

124,564,999

and ac¬

A——

Assets •'

Total

—

$5,568,327

$4,826,277

$4,303,512

$820,487,466 $811,799,585 $810,536,932

be permitted to

(6) Railroads should

provide service
on the same

by highway, water and air transportation
terms and conditions that apply to anyone

else.

duplications of facilities

done, unnecessary

interest,

accrued

Other

current

divi¬
$30,583,491

37,785,989

43,572,689

5,246,992

2,461,747

$59,373,844

liabilities

$30,761,609

1,599,168

—

Liabilities

Current

$73,794,590

Casualty
Other

other

and

$219,921,871 $214,632,717 $262,373,646
8,969,183
8,935,489
8,292,938

liabilities

reserves

and

deferred

9,613,146

credits

leased

ment

Railway System

organi¬
zation consisting of the parent Southern Railway Com¬
pany and a group of other railroads in which Southern
Railway Company has substantial investments.
These
component corporations publish separate financial re-,
ports, but are operated under a common management to
form the Southern Railway System. Lines in the System

7,803,496

7,047,009

5,443,310

5,242,471

4,743,615

SHAREHOLDERS'

New Orleans and Texas

„—

EQUITY

OF:

CONSISTING

Capital Stock:
Preferred

—-

$60,000,000

129,742,000

129,820,000

278,011

268,578

234,539

Capital

surplus

Retained Income:

Pacific Railway

2,956,913

Unappropriated

Georgia Southern and Florida
Short

Several

Railroad Company
Railroad

Northeastern

and

Orleans

New

which is largely invested in

203

Company

Short

operated

arately

Railway

and

Equity

Shareholders'
_

—

$820,487,466 $811,799,585 $819,536,932

and other sep¬

Disinflationary Effect

that many people refuse
unions would really go
through with the strike. From the point of view of the
trade unions it would have been more advantageous to
have timed the "showdown" to take place during the
years of nonstop inflationary prosperity. A major stop¬
page would then have been a dead loss to industry. But
since there is now a certain degree of recession, many
firms would actually welcome a suspension of produc¬
tion for a month or two, because it would enable them
to reduce their inventories, and the orders accumulated
during the strike would enable them to go ahead right
to the limit of their capacity once the strike was over.
From the Government's point of view a strike would
have the advantage of acting as a highly drastic disinfla¬
tionary influence. There would be a sharp fall in the
demand by millions of strikers and workers dismissed
because of the breakdown of the transport system. It is
true, local

received

Company

and

passenger

from

total rev-

CORPORATE CREED

•

cost

and of

property

operating the

190,582,082

railroad was

develop the territory and to foster

local

and

The Company paid

and

hire

for
of

use

excess

balance

the

—

operations

facilities

amount

Interest

for

accustomed

debt

railroads

$45,691,368

$41,408,327

5,388,149

6,048,543

5,455,015

$45,918,946

$51,739,911

$46,863,342

fairly and kindly the

women

they

have

sobering effect on

Having got away much too

whose work keeps

men

they only have to ask for more wages

A much-needed sharp lesson in

■

road

unsuccessful strike would greatly improve

economic prospects.

the rail¬

going;

The

12,868,305

$38,871,606

;

Britain's

;

line

fair return to the owners of

property.

question is, however, whether at the last moment

the Government would not

the

and
11,852,236

in order to
the form of

and

occasions

inclined to take it for granted

Government Subsidy
'V

To pay a

$34,066,710

are now

given.

and

would

To treat

of__

in a net income

incomes

since the war,

of least resistance and

decide after all to take the
decide to subsidize British

Railways in order to avoid a

obligations, rents
leased

The

thousands of men, possibly millions,
for many weeks on a fraction of their

organized labor in general.

4,474,904

miscellaneous deductions totaled

Resulting

who have to live

quate railroad transportation in the

in¬

was,

trade unions concerned and

sight of hundreds of

that

3,938,954

bonds

items

of the

the fighting spirit of all trade unions.

easily with excessive wage claims on many

4,779,603-

from

in stocks and

funded

received

total income of
on

equipment
paid

derived

safe, economical and ade¬

the South";

$40,530,797

miscellaneous

furnish

territory where the "Southern Serves

income

vestments

Making a

$49,630,322

$45,310,400

income from railway

Leaving an

and

39,660,606

capital expenditure,

$45,883,231

of equipment

by it from those sources

Other

36,891,614

longer any need for the Gov¬

prolonged major strike would drain the

resources

would damp

to other com¬

joint

Above all, a

taxes

required
a

$86,521,936

caution in their future expenditure,

to exercise

ernment to restrain consumption or

$85,543,837

$76,264,068

state

panies

v,"

opportunities; •/{\

affected by

not directly

financial

30,953,668

operations

Leaving

188,863,555

184,099,233

South, its people and its

its consequences
needed. Even
the strike would be in¬

the disinflation that is

effect all

that there would be no

the risk of causing infla¬

possible to relax the disinflation¬

because the strike and

measures,

clined

balance from railroad

Leaving a

Federal,

ary

those

the

maintaining

It would become

faith in the
The

output without running

would

v/'
t

industry to go ahead with expanding

their

1952-1956

$266,846,150 $275,385,491 $269,643,070

enue

miscel-

decline in the supply of goods corre¬

tion.

Average

laneous operations a

imports, so that

and an increase in

decline in exports

cumstances to allow

freight,

profit incomes would
in
by

5 Year

The

but this tendency

hundreds of millions of pounds. The decline
output, on the other hand, would be largely offset

the

Financial Results for the Year

In 1956

goods would cause sharp
would become
normal conditions of transport and

shortages in various

their prices,

fall by

OUR

In 1957

sponding to the decline in the demand.
It would then be safe for the Government in such cir¬

559

the explanation is
believe that the transport

8,092

Einzig

Possibly

there would be no

Lines

Miles—

Total

7,533

Paul

the announcement.

production are restored. Wage and
$501,390,822 $460,461,797

Atlantic

Company,

not even prevent an ap¬

preciation of sterling on the day after

reversed as soon as

property

Railway Company

Carolina

East

and

Northwestern

and

cerned did

rises

the

Total Shareholders' Equity— $517,166,112

Liabilities

Carolina

267,604,132

used mileage of 55.47 in above)

System total (less jointly

2,803,126

308,496,643

397

Railway Company—;—

Companies

Line

328

2,805,601

324,189,188

Appropriated

337

The Alabama Great Southern

$303,321,354 $310,408,763 $359,075,135

Common

(3,273

Railway Company

Liabilities

Total

Miles

The Cincinnati,

com¬
—

System is an operating

Operated
Southern

other

from

panies

are:

the publication of the reaction
among the trade unions con¬

$76,617,927

Depreciation of road and equip¬

The Southern Railway

$31,102,366

26,672,310

—

Long-term debt

Substantial progress on any of these subjects will
certainly greatly improve the position of the Company.
Your interest and assistance will be most helpful.
Southern

liable

prospects of a strike which
to paralyze industrial ac¬

would

at lower cost.

If they should^

circles

financial

uneasiness

about the

and

rail¬

rents

and

Taxes

If this

other

balances

companies,

dends

would be improved service

greatly reduced and there

materials, ;supplies,

for

wages,

the wage claims of the

rejected

Tribunal flatly

employees of British Railways.
decide to strike, they are likely to be
reinforced by the employees of other
transport services whose claims have
been or are likely to be rejected. So
the long-expected "showdown" with
labor may take place in the near
future. Yet there was very little sign

Owed

tivity and which might easily develop
into a general strike. Indeed, the an¬
nouncement of the Tribunal's award

LIABILITIES

road

713,933,856

$630,582,313 $609,683,233 $589,368,857

local problem.

were

749,056,664

court decisions.

added by

93,476,665

deferred charges

Other assets and

interpretations

the unwarranted

Congress and to remove

107,122,499

774,652,143

adjustments

quisition

rewritten to more

101,561,932

Depreciation, amortization,

Less:

use

conflict is bound to accelerate £
non-stop price inflation.
avoid

450,000

com¬
——

through

LONDON, Eng.—It now seems probable that there will ;
transport workers in Britain next month. '

The

144.069,830

others

>
,

be a strike of

391,693

342,148

403,601

affiliated

Investment in roacl and equipment

carriers

Regulation of the private and exempt
should be brought in line with the regulation
(3)

;
.

public and labor rank-and-file. Last minute

terms, to the

557,760

286,492

643,114

other funds

arid

panies

re¬

.-—

and

-Insurance

claims, Dr. Einzig specu-

wage

$6,943,600

$2,897,400

funds

serve

represents a monopoly.

workers'

possible strike next month. The British writer
berates the Government, press, economists and employers for marked failure to explain the issue, iu layman's

of subsidies, to

disbursed

and other

capital

favorable disinflationary consequences apt to

Governmental intervention, Dr. Einzig states,

Sale

equipment

Sinking,

British transport
lates

and acceptance

delivery

upon

contracted

Agreements

$88,796,886 $124,494,845

$79,512,829

Conditional

under

for

—

balance

Unexpended

expressing approval of arbitration award rejecting

After

13,263,355

repealed.

Current Assets

By PAUL EINZIG ; =

.'!•

prepay¬

current assets

ments and other

The public interest requires that the burden
of this discriminatory, unproductive tax be removed

—

accounts receivable

Material

transportation must be

deposits

special

and

Miscellaneous

(1) The federal excise tax on

$28,588,074

;

Temporary

proposals include:

The railroad

Average
1952-1956

31,1956

ASSETS

transportation busi¬

And Selfish-Ends

Year

December

31,1957

to an

part of that business.

particularly the railroad

and

ness

December

four years ago,

14,032,787 "*

the trade unions. If it

$32,830,555
;

conflict.

This was done

with disastrous effect on the attitude of
should be done again nothing could

Continued

on page

Volume 187

dumber 5734

The Commercial and Financial Chronicle

»Htl

(1721)

52nd ANNUAL

SALES:

EARNINGS

Sules of both
gas

gains

service

housing starts in

our

substantial increases in

passed the half billion dollar mark

for the first time. These

achieved despite

were

and

area

warmer

of the
year,

decline

1956

Revenues from other
*"■*
r ?

•

c;;

•

Miscellaneous Income
Totals

NET

operating

2,365,000

2,329,000
1,187,000
$471,931,000

61,766,000

;

5,684,000
114,227,000
19,517,000

6,190,000
98,808,000
15,309,000

in the

22,165,000

GAS

insurance, etc.
•

8,779.000

7,516,000

;

•

depreciation

i'.

income

44,964,000

110,765,000

•

state taxes on income

110,526,000

10,020,000

8,746,000

Dividends declared

;

26,017,000

24,787,000

18,336,000

•

v
,

stock

common

Totals
•

40,981,000

39,989,000

17,303,000

17,593,000

$502,748,000

$471,931,000

OUTSTANDING:

Average for the

;

of considerable

Canada

the

turbine-generator in¬

significance that, through

in the

inde¬

based

of gas from outside

the lowest possible cost.

believe it is

interconnected

our

receiving atomic

plant.

Energy Commission to install and operate a 60,000

atomic power

unit, to be located at its existing

Humboldt Bay Power Plant near Eureka. Because of advances

design and technology of the boiling-water reactor,
knowledge gained in the successful operation of the

General Elcctric-P. G. & E. Vallecitos Atomic Power Plant,

with the objective of bringing the gas directly from
consumer at

our

plant is only 5,000 kilowatts*

February 18, 1958 the Company njadc a proposal to

kilowatt

from the

desire to have

source

the complbtion; in

from the world's first ail-privately financed nuclear-

the Atomic

directly to the California

our

was

electric network, our customers are now

year was

gas

importance

citos Atomic Power. Plant. While

Company planned to take the lead

project to transport natural

POWER:

stallation at the

electric

that the
a

producer to the

it is believed that the cost of power to

•

Eureka is

At the

year-end

relatively high cost fuel

factors which make atomic power
were

be produced will

greatly expanded during the

year.

ahead of other

areas

in the

area

and there

arc

other

economically feasible there

Company's service territory.

had 685,500 kilowatts of electric gener¬

completed by the end of 1958.

16,662,129
17,068,524

•

TAXES:

single clement of cost in providing service to

Pittsburg Power Plant. These units will be twice the size

in service

the system. The first is planned for

completion in 1960 and the second in the following

pass

the two billion dollar mark late in 1958. The continuing

need for

gram

large amounts of capital for

makes it essential that

will enable

our

construction

pro¬

have a level of earnings that

compete successfully in the capital markets.

For

The

provide

their customers. Taxes

are

the

largest

our customers.

equitable tax structure and needed

tax laws should be extended to reach

year.

Expenditures for construction in the postwar period will

»•

heavy burden of taxation borne by the investor-

to our

«•«

"'time to the

owned utilities and

DIVIDENDS PER SHARE OF COMMON STOCK:
....

The attention of stockholders has been directed from time to

325,000 kilowatt steam-electric generating units to be added

of any now

...

major project to be started in 1958 will be the first of two

........

in 1957.

CONSTRUCTION:

■

outstanding
On end-of-year shares
outstanding

Paid basis

association with the General Electric Company, of the Vallc-

ating capacity under construction, most of which will be
17,074,941
17,075,524

....

"i On average shares

Declared basis

year.

Construction activities

EARNINGS PER SHARE OF COMMON STOCK:

year

End of year

approximate that from a conventional plant at the site selected.

NUMBER OF SHARES OF COMMON STOCK

•r.'W-

further increase in gas rates,

;

organizing

the
.

on
.

to $3.41

earn¬

SUPPLY:

the state,

Bafance retained in the

business

better level of earnings can be

Another event of great

18,192,000

...

Dividends declared

pendently controlled supplemental

on
v

preferred stock

•

per

ATOMIC

outstanding at the end of each

market. This decision reflected

however,

year.

common

share earnings increased to $3.41 in 1957 from $3.37 -

Province of Alberta

income deductions

year,

the number of shares

number of shares of

this basis declined from $3.46 in 1956

announcement

48,025,000

Bond interest and other

hopeful that

very

stock amounted to

than in the

Perhaps the most significant development of the

for deferred federal and

„

~r'

•

application pending for

arc

power

Special charges in lieu of and
•

year, per
-

Taxes, including provision for
federal taxes

outstanding during the

Based

and amortization

s- ■

common

Because of the greater
average
stock

ings

...

Provision for

$702,000

$ 57,146,000

21,328,000

employees

Material and supplies,
services from others, etc.
Provision for pensions,'

'.j

earnings available for the

$58,284,000,

1,504,000

Natural gas purchased
Oil and other fuel purchased

v..

EARNINGS:

$502,748,000

....

...

Power purchased from
'Wholesale producers

Some increases in

year.

authorized late in the year and,

were

realized in 1958.

Net

Wages and salaries of

•

during most

did quite well to hold earn¬

$305,855,000
162,560,000

DISPOSITION OF INCOME:

i>v

•

operating departments
•

•

without rate relief

it is believed that

and electric rates

gas

with
S0UR6ES OF INCOME:

Company was required to absorb

costs

ings close to those of the previous

than normal

temperatures which depressed sales for gas heating.

SUMMARY SHOWING SOURCES AND DISPOSITION OF INCOME

OUTLOOK:

In view of the fact that the

and electricity were substantially higher than

in 1956, and
gross revenues

Electric Department revenues $328,310,000
Gas Department revenues
170,569,000

revenues,

large segments of

prop¬

erty and income which now escape taxation. One particularly

flagrant example is the government-owned utilities which
arc

accorded

now

virtually complete exemption from taxation. No

possible justification exists for continuing this subsidy, which
is in effect

Board

being paid out of the pockets of other taxpayers.

Directors

PRESIDENT AND

GENERAL

•

V- •

•

MANAGER

•

For additional information
on

this vital western

company
our

write

Treasurer, K. C.

Christensen, 245 Market
St., San Francisco 6,
for

copy

P.G.&E.'s Annual Report.

•

PACIFIC
1956

1957

Total Assets

$2,146,271,000

Construction Expenditures

$1,978,581,000

.......

215,285,000

GAS

and

ELECTRIC

147,657,000

22,930,632,000

22,189,009,000

18,513,127,000

17,194,709,000

Electricity Delivered for Account of Others (kwh)

603,793,000

1,188,506,000

Sales of Gas to Customers

322,481,000

303,586,000

3,344,570

3,247,929

18,077

18,370

225,487

221,328

Electricity Generated and Received (kwh)
Sales of

Electricity to Customers (kwh)

Total Customers
Number of

Employees

(mcf)

.....

Number of Stockholders

COMPANY
245

SAN

IA-S

MARKET

FRANCISCO

STREET

CALIFORNIA

COUNTIES

and Financial Chronicle

The Commercial

The bank would be the

stitution.

News About Banks

the

REVISED

shares, par value $25).
it
#
4

:■

Thursday, April 17, 1958

Scheduled

this

later

open

began its expansion program
had total resources of $5,000,000.

Approval has been granted by
Special stockholders meetings
the Federal Reserve Board, with
the. concurrence of the Govern- "aYe beei?. cauea IP.r, 7fry fiLS
the concurrence of the Govern
vote on the consolidation.
Fort
ment of Paraguay.
#

vice
official

seveial

among

were

HUntington.

appointees include Ralph
F.
Leach,
Vice-President and
T.'onfiifni'
onrl
Qfnorl
k
Rnrnec
Treasurer, and Stuart K. Barnes,
Vice - President
and
Secretary,
who were formerly Treasurer and
The

count

First National

Mar. 31, 1958

Dec. 31, 1957

....

formerly in the Tanglewood
Shopping Center, which moved
April 12 to a new drive-irl loca¬
tion at 2195 Central Park Avenue
at the corner* of Roxbury Drive,

Cleveland,

Crowther. Paul J.
O'Neill and H. Clifton Whiteman
Kenneth

333,345,859

108,331,112

Fifth

the

merly

Vice-Presi¬

Assistant Treasurer, and
Jr. and Rob¬
Depart¬

S. dough,

William

ert M. Hill of the Foreign

ment, both of whom were Assist¬
ant
Managers.
John M. Porges
and Robert J. Wynn of the For¬

eign Department were appointed

174,273,814

11,759,995

promotions
April 11 by
M.
A.
Cancelliere, President of
Western
Pennsylvania
National
Bank, MeKeesport, Pa., following
a
Board of Director's meeting.
V i

21,462,692

19,363,542

47,674,329

43.220,330

discounts

46,349,428

prolits...

1,322,688

58,834,418
1,414,286

banks

U, S. Govt, security

holdings
&

Loans

The

Fort Neck
(L. I.),
with the Security National
of Huntington (L. I.), N. Y.

Bank

has
of

of the

merger

approved by the Boards
Directors of both * banks, ac¬
been

cording to a joint announcement
by George
Heaney, President
of Security National and Herman

A.J

President

Maass

Undivided

Seaford

Bank,

the

Fort

Neck Bank.

time

the

executive

announced

Finney

was

e-P resident in

Tiick

rp^nifrr^
nnn

™

^,1

The merger

r,iu

But-

by the stockholders of both banks

value

whh

ficer, announced April 14.
Approval has been received from the

than

ness

the

$43,000,000.

Resources

tional
the

Fort. Neck

Bank

bank

are

will

Vice?

Missouri.

Mr. Allen said that the opening
this

branch

will

bring

to 11
in the
extensive

of locations
Haven's

ity National Bank in charge of
Nassau
County
Offices
and
a
Directors.

Judge

Former

George

Vice-President of

branch office system.

would

of Seeu-

Board

District

Court

Maccaro,

first

Fort Neck

Na-

•

\ '■ ^

and

with

• -

*
Directors

both

the

Passaic-

Clifton Bank and Trust Company,

Passaic,
Bank

and

J.,
Trust

the County
Company, New

and

Jersey have approved plans for a
merger.
man

C. Kenneth Fuller, Chair-

of the

County Bank is sched-

come

the

past

years

and

prior to joining Woodcock, Hess,
Moyer & Co., Inc., whs associated
with Harry C. Dackerman & Co*

-wA ;

E.K. Van Home

Heals

Division for NY Fund
Edward

of Stone

dent

Presi¬

Home,

Van

and Webster Secu-r

has

and

three

rities

licly-owned corporations divisionthe
1958 Greater New York
Fund campaign.

Form

;

Mr. Weaver,

who has been with

and

corporation

since

1950,

the

sively

has

Commonwealth Sees.
Chronicle)

(Special to The Financial

the

Corporation, is Chairman of
institutions in the pub¬

financial

children and resides at

Kirkwood. Mo;

for

ness

Louis,

subsidiary.
He ' joined 1 General
Contract Corporation and Bank of
St. Louis in 1947. He is married,

the

COLUMBUS,

bank

occupied succes-

position of adjuster,

Ohio —Common¬

wealth Securities
been

formed

Corporation has

with offices at

manager

150

„

operations.^ " °v ™8
.K

sj!"

of Alyin

joined the organizations
various posi¬
tions in the investigation, personal
Mr. Keim

Randt

Treasurer,

Hague, Secretary and

ill 1941 and has held

consumer credit and
mercial loan departments.,

loan,

National Bank of Cleveland, Ohio

com¬

With National Securities
(Special to The Financial

He is

chil¬
and lives at 5717 Itaska St.

married,

the father of two

Chronicle)

Ruth Dodd,
announced April 10, by Lordren,
Michael W. Furry, John K. Guinn,
L. Gelbach, Chairman and
in St, Louis. • — .
•
President, following a meeting of
William O. Nunnally, Burton J.
Mr. Key, who joined the corpo¬
the Bank's Board of Directors."
ration and the bank in 1947 in the Rogers and Frank L. Whitsel have
Mr. Randt joined Central, Nabeen added to the staff of Na¬
tional Bank, in 1943. His continu¬ correspondent bank division, has
served in various capacities in that tional Securities, Inc., 1224 Spring

was

ing

ous service in the Installment
Loan Division includes successive
advancement to credit manager,
office manager, Assistant Cashier;
and since 1954 he has been an
Assistant Vice-President.

ATLANTA, Ga.

—

v?^?^r^aLfW0,ildc SerV-? a?T a uled to hold the same P°st and
Mr- Brush began his banking
Snti
nf / Security Na- John C. Barber, President of the career in Cleveland in 1926 and
5 Directors. of the Passaic-Clifton of the merged be- National. has been with Central
a member
Bank, will in- since 1933
banks Board of
President
Following
diversified

Bank

general '• counsel
for
General
Contract
6 Corporation,
of which he is also Secretary and
of which Bank 'Of' St- Louis is a

sistant Vice-Presidents of Central

Security's

thesurviv-

months.

offices

Maass, a prominent banker

National

First

St.

'deht

■

member

Limited, London, England.

Bank

Daniel S. Hapke,

unit

will be in operation within six

Vice-President

has

in the consumer': East Broad Street to engage in &
American. Security" and Trust
credit
department, manager of securities ' business.' Officers are
the retail insurance
department
rmme
William E. Swantner, President;
ing bank with three National
and commercial loan officer.
He
Metrooolitan offices becoming is
Albert
T.
Schrader,
Executive
married, has six children, and
branch
lives at 21 Foxboro, Ladue.
Vice-President;
and
Joseph R*
The election

the number
First
New

Hay

Mackenzie

With Woodcock, Hess

merged

the Controller of Currency,

and

Nassau for many years,

The

ceptance o^: the offer. It.is.conditioned upon at least 50,000 shares
being tendered on or before May
9, shareholder approval of a liquidation plan and authorization by

$127,000,000

serve

value $10).

Springfield, Springfield. Ky., with
common
stock
of $50*000,- was

Vice-President and Fred W.
Brush and Jack J. Luttner as As—

bankmg system in Suffolk and the
third largest on Long Island.
in

Sail

appointed Deputy Chairman
of the Board of Directors of the
National Overseas and Grindlays

,•

Vice-President,

district.

serving Suffolk County and seven
serving Nassau.
It is the largest

Mr.

Bank

National

Richard Edwards Now

and

It is expected that the branch

Mr.

Louis.

American Security

Na-

have

was

■

Director: 1 ^

Calif., increased

shares- par

Mo. They are:
Earl' W. Weaver,
Paul P. Keinv aftd Otto Key, the
Trust Company, Washington, I>. C.
latter three having been- promoted
and the National Metropolitan
from Assistant5 Vice-President to
Bank, Washington, D. C., plan fo
The

Security

the

common

Jr., was
Vice-President, of the
Mercantile Trust Co., St. Louis,

offices.

t0nT" would be the

which will be

at the corner of Taft Avenue, near
the center of Allingtown's busi-

its com¬
mon
capital stock from $900,000
to $1,000,000 by the sale of new
stock, effective April 2 -(number
of shares outstanding —-100,000

Boardman, Jones,

-bank

he became Presi¬
State Bank of

Higginbotham,

elected

First

Tulsa,

$10).

elected

which has total resources of more

offices

Vice-President

First

been

the

located on the Boston Post Road

involves all

the

Cecil
also

named

Metn.pol.tan at $80 a share Mr
Jacobsen,. President of National
ust Depaliment'
Metropolitan in a letter to share-,
holdeis, said_Directors of National
,ie
New Haven National Metropolitani recommended acY^^toHated

seven

merger

National

Celina, Texas.

capital stock from $5,000,000 to
$5,250,000 by a stock, dividend, ef¬
fective April' 1' (niimber-of shares,
outstanding
525,000 shares, par

Demrtment

reney m
The

Bank

increasedits!

has

Okla.,

America q Security and Trust, said
Mr* Butterworth was formerly his bank was offering to buy the
an Assistant Secretary of The outstanding
stock of ; National

^tehSC'D'c' CUr" tablish this branch
tC°hrPhr?herh°f
Washington, D. C.
"

bank,
of

dent

V":*'' \
National

He then joined

Second

the

until 1957, when

the

approved

must be

latter

Investment Officer

Bank, Conn, plans to establish a
nf nwp fhtln ^170 oon !
liew branch office in the Ailingurin
°
^17G,UU(),- ^own section of West Haven, Jo9d ^ff,v.o^aSSaU
8
seph H. Allen, Chairman of the
Board and Chief Executive Of„!,

sioo).

charge of

Hughes, President.

bank

nmnKivinri

Bank

(now the Bank
of the Southwest). He served the

merge into the largest,Abank. 4n
r
Washington* h i s t o r y from the ::ir! % Hapke,'f also 'the banks
Cashier, was elected 'Vice-PresiCompany, Rochester, N. Y., has standpoint of resources involved,
"derif and general counsel. In addi¬
^een announced by Arthur M. R.
Daniel W. Bell, President of
tion, he was elected a: Vice-Presi-

history of Long

banking
that
a
Nassau
has merged with a
Suffolk banking organization.
•

of Houston

Bank

of the Genesee Valley Union Trust

Island

county

of George F.

The election

terworth III

The consolidation will mark the

first

the staff

Rafael,
Three

Bank.

State

First

the

vanced to Cashier.

Elgin, 111., was increased from

The
were

) ;J;%r

into Peoples
PHILADELPHIA, Pa. —Wood¬
Deposit Bank,, Springfield,
Ky., cock, Hess, Moyer & Co.,/Inc., 123
Archie W. Mabon was appointed under, the charter of A the latter
tired as Senior Vice-President of
South Broad Street, members df
Vice-President,
Com-; bank and under they title First & the New York Stock Exchange
The
Hanover
Bank,
New York Assistant
mercial Loan Department.
Peoples Bank,
Springfield, Ky., and other leading exchanges, have
City.
Daniel
R.
Graue
was
named effective as of the opening of announced that Richard Edwards
NATIONAL BANK OP WESTCHESTER,
Assistant Cashier in charge of the business April 2.
is now associated with theim" as
WHITE PLAINS,
N. Y.
Smithton, Pa., branch office', suc¬
Manager of their research depart¬
Mar. 31, '58 Dec. 31, '57
ment.
>.)
$
$
ceeding Mr. Finney.
Mr., Graue
Four new Vice-Presidents have
Total resources
150,899,395 147,541,093 has
worked
at
both
the Belle
Mr.
Edwards has been active
Deposits
138,534,900 130.027,299 VT"
t"o
'
i
recently been elected by the Board
c&sh and due from
; :'/y
Vernon and Smithtoiv Pa., branch of Directors of the Bank of St. in the investment securities busi¬

assistant secretaries.

National

—

$150,000
to
$300,000,
effective
April 2 (number of shares out¬
standing—3.000 shares, par value

435,920,180

counties.
Mr. Finney was formerly

William J. Byman of
Avenue
Office, for¬

With

National Bank and Trust Company

935,141,791

287,114,791

■;

-»

of Byron

Aston, President of the

Bank of Akron,

Y'lv' *

branch bank.of-.

were

{••By a stock dividend, the com¬
mon
capital'stock of the Union

1.001,009,910 1,047,420,003
889,349,498

-.-

R. Smith, as
a
Vice-President of the Republic
National Bank of Dallas, Texas,
was
: announced
by
James
W.

(number of shares
436,800 shares, par
•..»-i.n- •.

outstanding

formerly Second Vice-Presi¬
Ralph T. Tyner,
Jr., Board
dents who continue as district of¬
Chairman of the National Bank of Supervise the 16
fices
located
in
four
Western.;
ficers in the Banking Department;
Westchester, White Plains, N. Y.,
William C. Eiseman of the Fifth
has announced the election to the Pennsylvania
Avenue Office and John. D. Rippe
of the Corporate Trust and Stock bank's Board of Reginald Gorton
ot
Trust
Stock
CQQmhe q£ Greenw>h< Conn
The President and; Manager of the
Transfer Department, both pro¬
action was taken at the regular
Smithton, Pa., office and also
moted from Second Vice-Presi¬
served as Manager of the Book¬
monthly meeting of the Board.
dent.
Mr.
Coombe has recently re¬ keeping Department.
Promoted to Second

April

tive

III,

dent

Election

of
tal stock from $4,200,000 to $4,-< Aransas Pass, Texas, from 1938 to
November of 1947, Mr. Smith ad-f
368,000 by a stock dividend, effec¬

428,939,004
12.592,002

Lucas

White Plains, N, Y.

•

$50.)

ing—5,000 shares, par value

Ohio, increased its common capi¬

value $10).

discts.

Undivided pro! its

will be Officer in
Qbarge 0f the new drive-in office
™
,
■
of. The County Trust Company,

Secretary,
respectively.
Also
Vice-Presidents were BenBlake, Charles A.

officer

;

(Number of shares outstand-

28.*

Assistant

1953 was
charge of the

and in

sions.

Secretary,

named

Assistant

Gomer D. Reese, Jr.,

holdings..

rity
Loans

York*

eon

banks-U. S. Govt, secu¬
from

14
of

promotions announced April
by Guaranty Trust Company

depart¬

operating
elected an

1951

distributing,
ac¬
analysis and mailing divi¬

Neish,

PHILADELPHIA NATIONAL BANK,
PHILADELPHIA, PA.
\

THE

meeting in its
main office in Seaford while Se"—V,"
" •• " " "... Total resources.
cunty National shareholders will DepositsCash
and
due
vote at the bank's main office in

Vipp.

cpvpral

s\f

Appointments oi
Presidents

was

$200,000 by a stock dividend and
from $200,000 to $250,000 by the
sale of new stock effective March

bookkeeping,

Vice-President.

Neck will hold its

4nnnmfmonfc

ment was made by John
Assistant

has been as a spe¬

the

named

man-

resources m 1951 quippa West; Aliquippa, and New
were $8>500'000'
Sheffield offices of Mellon NaSecurity National Bank was or- tional Bank and Trust Company,ganized in 1903 and in 1951 when Pittsburgh, Pa.
The announceit

1933

cialist
ment.

J**

ford-

the new branch will bring
to 23 the number of First National
City branches on the South Americari Continent and to 43 the num¬
ber in Latin America.
year,

bank

Steel
when it began its expan- Corporation's Aliquippa Works
sion program changed its name to Division, has been named to the
Fort Neck National Bank of Sea- advisory committee of the Ali-

capital of Paraguay.

and

major portion of Mr. Luttexperience since joining the

The

ner's

million people in 1951

quarter of a

banking experience in the loan (number of shares outstanding —■ 4
and operating departments and in 6,000 shares, par value $50).
the branch system, he transferred
to
the
personnel department in
The First National Bank of Bee1947 where he has been manager ville, Texas increased its common >
since 19531
--y'y C.;:' capital - stock from $100,000
to

Cashier

new

The Fort Neck bank was organPaul H. Devaney, works
ized as the Seaford National
_
,
Bank, Seaford, L. I. in 1926, and ager 0f Jones and Laughlin

National City Bank
planning to open
branch in Ascuncion, a city
First

of New York is

Bank,

National

capital stock
from $625,000 to
$750,000, effective April 2 (num¬
ber of shares outstanding—30,000

CAPITALIZATIONS

The

;

Union, N. J., increased its common

Bankers

and

sale of new stock The

Center

Union

CONSOLIDATIONS
NEW BRANCHES
NEW OFFICERS, ETC,

with

state

in the
assets of $287,154,842.
largest

fourth

(1722)

•

department ever since. He is mar¬

ried, has one child, and resides
Belleville, 111.
.
.
.

Street, Northwest. -

Join H. O. Peet

Sjt

stock dividend The Munand Chambliss National Bank

By
roe

Ocala, Fla., increased its com¬

mon

(Special t j The Financlal

capital

$300,000,

stock from

effective

$150,000

April

OMAHA, Neb.

—

& Co.
Chronicle)44-

Lawrence M.

H. O. Peet &
Building.-

Fogel is now with
Co.,

Farnam

Volume 187

Number 5734

The Commercial and Financial Chronicle

(1723)

☆

Wmm

highlights from

1937was

year

acterized Gulf Oil's

Worldwide,
which

added

of continued growth which has char¬

history, especially in

major

activities

substantially

showed

recent years.

healthy

gains

the Company's financial

growth and stability.
At

end, Gulf's

year

income exceeded $354

assets

million—increasing from

billion and $282 million,
Salient

figures from

☆

topped $3.2 billion and

respectively, in the

☆

CONSOLIDATED

$2.8

year.

1957 Report are presented here.

our

☆

over

net

☆

FINANCIAL

☆; '"it

☆

'☆

☆

DATA

Cash Dividends. Paid

Cash Dividends Paid Per

■

Total Assets

•

.«..*«««

*Includes profit of somewhat less than

per

•

1956

282,658,000

69,244,000

$ 9.08

73,823,000

$ 2.50
5%'

$3,240,571,000

$2,872,270,000

$2,730,085,000

..............

$2,339,715,000

546,453,000

465,950,000

..........................

☆

.................................

Depreciation, Depletion, etc.

$ 2.50

................

Sales and Other Operating Revenues......

Capital Expenditures

«v...»».........

........................

☆

$11.38*

Share.........................

Stock Dividends Paid

☆

354,284,000*

shares at end of 1957)

•«.

☆

1957

Nfit Inco111o

Net Income Per Share (based

☆

252,265,000

217,185,000

share from sale of Texas Gulf Sulphur Company stock

•

OPERATIONS

DATA—DAILY

AVERAGE

BARRELS

1957

(Includes Gulf's equity in companies less than 100% owned)

1956

Gross Crude

Net Crude

•

Oil, Condensate, & Natural Gas Liquids Produced

1,253,775

1,087,097

Oil, Condensate, & Natural Gas Liquids Produced

it,151,438

997,452

Crude Oil Processed at Refineries.

682,215

667,874

Refined Products Sold

747,198

698,277

Natural Gas

106,301

111,877

(For

copy

♦

Liquids Sold

of Gulf's Annual Report, write to Room 1300, P, O. Box 7166, Pittsburgh 30, Pa.)

-it
☆

☆

•

☆'

•

.☆

☆

it. i

The Commercial

and Financial Chronicle

Thursday, April 17, 1958

(1724)

plan for economic and

Dillon, Read Group

tyre « Whitehead
Formation of the

Congo
5%% Bonds at 981/2%

member firm
conduct a

& Whitehead to

of Nye

with

general securities business,
offices at 44 Wall Street,

investment

New

banking

States.

securities in the
The Government

Belgian Congo intends to

proceeds for construction
tive

housing,

utilities

estimated

and

facilities,

cluding

natural

estimated

kilowatts of potential

able

ten

years

103,340,000

lated

hydro-elec¬

prior

retire

95%

maturity.

new

velopment

part of a ten-year

area

world's largest producer

Belgium, has an

the Kingdom of

approximately one-third that

the bonds on the New

of cobalt

the Exchange.

arid industrial diamonds and

business

Whitehead

General

partners

Whitehead

holds

York

Nye

Mr Nye, who also

are

Lockheed Management answers your

Stock

in the New
Exchange,, and Mr.
Whitehead.: Else A. Nye is a lim¬

ited

membership

questions about:

partner.

Mr. Nye, a veteran

of almost 40
in Wall Street, passed 33
years with Freeman &
Company, most of that time as
partner in charge of railroad se¬

years

those

curities.

director

Lockheed's Activities

the

Minneapolis & St. Louis Railway,

Industries

Haveg

and
Granby
Smelting &

Consolidated Mining,
Power Co. Ltd.

Whitehead

Mr.
reer

his

started

ca¬

in ihe investment business in

1928 when he resigned

from Syra¬

in Research and

Development

University "where he was
teaching courses in corporation
cuse

fingpee and, investments, to be-

coni^ associated with an invest¬
counseling firm. He came

ment

to New York in 1936 and became
a
partner in Dresser & Escher,
subsequently
was 1 admitted
to
partnership in Whitehead &

Fischer, and later conducted his
business

sole proprietorship
of
Louis
H.

the

under

name

Whitehead Co.

Since 1952 he has. been
of

part-»

I.How extensive is Lockheed's research and

2. Which of Lockheed's R&D projects has the

biggest potential for near-future

development program?

contracts?

the

Cosgrove, Whitehead
& Gammack ocganization and its
predecessor
firms.
Known
as
Neegaard, Miller &.Co. in 1952,
the firm tiame was later changed
to Cosgrove, Miller & Whitehead
and
subsequently
to
Cosgrove,
ner

Whitehead & Gammack.

Lockheed is presently engaged

in research and

Lockheed will be pushing

ahead

neauly 100

history-making technological events have

development of
1500mile range of the polaris, combined with the
Navy's world-wide mobility, could subject
virtually any military target on earth (includ¬
ing submarine pens and bases) to swift and

given added impetus to the

challenging research and development proj¬

ST.

LOUIS,

Mo.

Schraudenbach is

Jerry

—

now

forms of atomic

with Mor¬

this

feld, Moss & Hartnett, 721 Olive

of ion aaid ether

propulsion of air and space

vehicles and remote guidance

spaceships.

of unmanned

Street, members of the Midwest
Stock Exchange.

reflected in rapidly

independent of fixed launching sites.

Lockheed's intensive missile research is

WEST MONROE, La.—Anna B.
McCoy is engaging in a securities
business

from

Coleman

Avenue

under the

McCoy

Investment

name

Miss

McCoy

offices

was

increased sales. Missile

211

firm

1957. This

20%
on

formerly Vice-

sociates.

grams,

PHILADELPHIA, Pa.—Pening¬
ton, Colket & Co., members of the
New
York
and
PhiladelphiaBaltimore
Stock
Exchanges, on
May 1 will admit to partnership
Robert
J.
Zipse
of Pikesville,

pre-production
is
every assurance that Lockheed will receive
production contracts for the polaris in large
quantities-as this solid propellant space-age

including the U.S. Navy's long range
for which

fleet ballistic missile, Polaris,

Maryland,

Albert Smith,
in, of Reading, Pa.
and

In the field of atomic power,

missile fills

Mass.—William

E. Packard has become connected

Robbins

Co., Inc.,

37 Mechanic Street.

vital need in

our

nation's total

(See polaris organization

chart, opposite page.)

- _

constructing the nation's largest laboratory
radiation effects

aircraft systems* This

3. What
*

Lockheed's position in the field of

electronics research and

development?

Lockheed-operated Air Force research center
is being

constructed

on a

10,000-acre site
go

near

into service

early in 1959.

With H. L. Robbins
WSORCES'HBR,

Lockheed's

for nuclear aircraft research and testing of

Dawsonville, Georgia, and will

jfSpgcial to T«E.Financi&l Chhonicle)

defense program.

Georgia Division and the U.S- Air Force are

the

and has already received

development work on the polaris.^ There

better in 1958 as work is accelerated

program,

$130 million in contracts-for

proportion is expected to climb to

Lockheed is the prime contractor.

Penington, Colket Admits

polaris

various Missile Systems Division pro¬

Co.

President of Joel H. Clark & As¬

with

Lockheed is missile system manager on

represented 8% of Lockheed's all-time
record business of more than $868 million in
sales

McCoy Inv. Formed

top-priority U.S. Navy missile. The

devastating retaliatory action from the sea—

r i

Missile: Recent

The polaris Fleet Ballistic

ects—ranging from highly ingenious manned

(Special to The Financial Chronicle)

production

development activities that probably are the
broadest in the aircraft industry. During 1958

aircraft designs to studies

With Morfeld, Moss

of the

issue

Commencing

of
Cosgrove,
Gammack,
stock
brokers and dealers in corporation
securities and mutual funds.
the

tric energy, but its

Nye and

The

for

sinking fund

announced by Joseph
Louis H. Whitehead.
organization succeeds

was

except

begin¬
ning Oct. 1, 1963, which is calcu¬

including

for

semi-annual

in¬

resources,

tin.

economic de¬ April
1, 1968, the bonds will be
still in an early
redeemable at the option of the
stage. Its development, however,
at
prices scaling
from
has been rapid, with volume of Congo
exports - increasing; from
72,000 10112 to 100 for the last two
tons in
1918, to 660,000 .tons in
years. The bonds are direct obli¬
trade in
recent years.
Mineral
gations of the Congo, and princi¬
products, primarily copper, con¬
stituted
approximately ,66%. in pal and interest will be payable
value of exports for 1956.
The in "U. S. dollars at the office of
Congo is among the world's larg¬ Dillon, Read & Co. The Congo
United territory governed by Belgium est copper producers arid was the
has never defaulted on any debt
of The under a United Nations trustee¬ source of about 7.5%
of
the
use the
world's copper production in 1956. obligation held by the public. Ap¬
ship agreement.
of na¬
that
same
year
it was the plication has been made to list
The Congo, the only colony of In

public buildings and

as a

rich

largest producer of

The bonds will not be redeem¬

Joseph S. Nye

Louis H. Whitehead

plan,

equivalent of nearly $1,000,000,000, it is anticipated that
capital expenditures for construc¬
tion of native housing and related
group facilities will total about $96,000,cost the

fourth

a popu¬

approxi¬
mately 12,951,000, of whom 12,to
844,000 were natives. The Congo
lation at Dec. 31, 1956, of

Read & Co. Inc. 000 and provide for about 40,000
offered for public sale yesterday dwellings. At Dec. 31, 1957, $64,(April
16)
$15,000,000 of The 260,000 had already been spent
these
purposes
and 28,000
Belgian Congo 15-year 5%% ex¬ for
ternal loan bonds of 1958 priced dwellings constructed.
The sites
at 98y2% to yield approximately of present projects are Leopold5.40% to maturity.
ville, Stanleyville, Elisabethville
This
financing represents the and Bukavu in the Congo and
first public offering
of Belgian Usumbura in Ruanda-Urundi, a

headed by Dillon,

Congo

York,

this

Under

Offers Belgian

Famed hi Ilea York

of the United States and

social de¬

velopment of the Congo.

Lockheed also has devised plans to enter
another nuclear field—the design and manu¬
facture of atomic reactors as a source of com¬

mercial and industrial power and heat.

Lockheed's pioneering

leadership in airborne

electronics-and the fact that Lockheed has

designed and built more

Anti-Submarine

Warfare and Airborne Early Warning radar

planes than any other company—will continue
to be an important source of new contracts
for Lockheed.

York Stock

Volume

187

Number

5734

The Commercial and Financial Chronicle

(1725)

Aircraft Without Fuel

oxygen atoms of the upper air can
be made to pair off to form mole¬

Envisioned

cules

Aircraft without fuel,
an

indefinitely flying 6,000 to 18,000 miles
hour, ranging in size from feather-weight metal-foil kites
large satellites, are some of the specifications envisioned by

two

power

Aerojet General Corp. regarding future
flights using sun's stored energy.

space

oxygen

the

gas,

into

Aircraft
and

that

the

that may

featherweight,
to

manned

were

fly

without fuel
atmosphere—
range in size from
metal-foil

chemical

envisioned in

public

miles,

—

report made

6,000
chemists
and
chemical engineers assembled for
the 133rd national meeting of the
American Chemical Society, April

jet-General, which is

has

been

can

"The
atomic
oxygen may
be
made to recombine by two meth¬

kind of flight will depend primar¬

the thin air at altitudes above 60

ily

nearly all

Company.
The

success

this

the speed with which single

either

the

rays

the

sun

oxygen

by passing it over a
chemical that pro¬

this particular

process), or
simply by compressing the gas
stream.
Since the density of the
atmosphere at an altitude of 60
miles is extremely low (about one
of

its

sea-level

the available thrust is

;

atmosphere,

upper

motes

;

•

Sun's Energy

Use

ultimate

ods:

compare

millionth

Rubber

the

used for

one

fierce

that thrusts

subsidiary

Tire

for

that

ounce.

serves

storehouse

energy

research

catalyst

General

tremely

favorably with the expected frictional drag at these
altitudes, it
was stated.
However, at speeds of
about 6,000 miles per
hour, the
lift provided by a square foot of
wing surface would be only about

13, at San Francisco, Calif.
The
radical
flying
machines
would be propelled by jets op¬
erating on the chemical energy of

the

shown

achieved

easily
would

of the sun, waiting to be
propulsion or other pur¬
poses, the report explained, add¬
ing:

pioneering

Research,

presented

was

these

release

an' unlimited

under contract with the Air Force
Office of Scientific

the report,
before the
ACS Division of Physical and In¬
organic Chemistry by Sterge T.
Demetriades, technical consultant
to the Aerojet-General Corporation, Azusa, Calif. Co-author of
the report is Dr. Carl B. Kretschmer, research chemist with Aero¬

"kites"

factories

according

which

upper

Since

molecules, this thin air

report

said.

through

atoms.

large amounts of
energy when they recombine into

plant has been carried out

detail

single

atoms

emphasized. The preliminary de¬
sign of, a ramjet atomic-oxygen

chemists of the
.

But

small

the

break

the

frictional

for

the

same

value),

quite small.

drag

reason,

very

and

ramjet flying at speeds of several

times

molecules

the

speed

sound

produce

enough-thrust to
drag. The ramjet

the

overcome

have

made

ex¬

light

materials, such as
foil, since the lift pro¬
unit area of wing sur¬

thin metal

duced per
is so small.

face

"Professor
Paul
Hartech
of
Rensselaer Polytechnic Institute is

investigating the possibility of
constructing a vehicle of this type
to fly at about twice the
speed of
sound, using a catalytic power
plant.
Since it would not have
to carry

the

air

piy fuel, it could stay in
indefinitely. Because of

the extreme

lightweight construc¬
required,
such a
vehicle

tion

would have to be unmanned.
It
would be useful for such
purposes
as
a
reflector for television or

microwave

veillance,

could

signals, weather
safety stations.

sur¬

Speeds of 18,000 M.P.II.
"At

Aerojet-General a different
approach to the problem is being

investigated. If the atomic
ramjet

made

speed
no
lift

hour)
and

can

orbital

will

can

fly

miles

at
per

required,

heavy payloads of

instruments

oxygen

(18,000

and

men

be carried in

or¬

bit at 60 miles altitude indefinite¬

ly, provided the drag
All of

operating divisions have made sig¬

our

Hydromagnetic shock waves—100,000 mph,

nificant progress in both airborne and ground

100,000 degrees centigrade—to study flow of

electronic devices and services. Last year we

ionized gases at extreme Macli numbers (rela¬

formed

study the desirability of
tion

tive to ion engines

special diversification task force to

acquisi¬

mergers or

companies that could add to

for

travel)

space

required.

satellite
would
extract sufficient energy from the
atmosphere to overcome the drag.

on very

will not be easy to reduce
the drag to this level, but the
pos¬

sibility

investigation (space flight)

orbital

bination

6. Ion

is not merely the development of

greater technical competence in these areas.

space

full, well-rounded elec¬

tronics capability to match our

thereby improve

Physiological endurance limits in outer
travel (man's capacity to

ivith

cope

aircraft)

hardships)

9. Advanced astronautics

(navigation in

space)
areas

10. Solar energy

presently engaged in?

power

their

Effects of gravity

space

communication)

ex¬

Lockheed's vast

frontiers. In

new

laboratories,

dedicated staff

of scientists is working to improve the world

Superconductivity of materials at low tem¬

live on, and to achieve new miracles in

would

produce

Even

too much

commented.

significant than this

simple scheme for permanent or¬
biting at low altitudes would be
the idea of using this
permanent
satellite
the

propellant factory
that is, a plant,''for
capturing
the
oxygen

sky,

actually

atoms, to be used later as a rocket
propellant," they declared.
"The
in

expect to encounter

making these schemes feasible

are

formidable, but it is too early
that they

state

with certainty
insurmountable."

Satellite

Chemical

"Perhaps

Factory

compromise power
utilizing some degree of

plant

ram

compression
and
catalytic
walls would offer the best chance
of success.
In any
case, many
other solutions remain to be in¬

vestigated.

For

could conceive of

man's swift conquest of outer space.

peratures (relative to manned space flight)

recom¬

atoms would

oxygen

drag, the authors

are

activities to include

electrical flow (outer

for radio transmission of data from

logical developments, is expanding its research

significance and thereby violate security:
1.

surface

Lockheed, always in the forefront of techno¬

listing would reveal their

mere

studies (leading to electrical

orbiting satellites)

list is necessarily incomplete,

due to the omission of those research projects

which by

velocity, the

difficulties

of advanced research is Lockheed

The following

yet; definitely

necessarily have to be done main¬
ly by compression, since a catalyst

we are

developing for the Air Force.

4. What

nezv

Infrared radiation studies (leading to in¬
struments for collision avoidance of manned

systems—like Lockheed's

and the giant earth satellite

POLARIS,

vehicles)

space

potential in managing

our

weapon

propulsion (of

environmental sensations and

overall design,

manufacturing and servicing abilities and

complete

not

cluded."

5. Cosmic ray

"know-how" in electronics.

plan to build

indicate

that it

Study of opacity of air (and effects
high speed flights in atmosphere)

already long experience and established

Our goal

The

atomic-oxygen

Preliminary calculations

our

be made

can

smaller than the available
thrust.
No fuel would be

example,
a

one

vehicle which

actually decelerates in the atomic
layer and picks up atomic

oxygen

This is the task force

Also,

developing the POLARIS—new Fleet Ballistic Missile for the U.S.Navy:

use

since

the

oxygen on other

ceivable

could
mm;,

could

SPECIAL PROJECTS OFFICE

Bureau of

iff•-.it.-

the

and

9? fi
>

from

vary

-i-'/t/'/

><?< 'k

Missile

ISi

■■pi'.* %'• '■'/

System Manager

/:*

Guidance

diameter

plants

feet

"In

liiil

remind

ize it is the ingenuity and relent¬
less toil of men."
:

(Special to The Financial Chronicle)

<
(

various phases of

technological

Navy's top-priority missile project.

SHIPS, SPERRY GYROSCOPE CO., WESTINGHOUSE,

Ohio—Roger S.
Struck is now with Merrill Lynch,
Pierce, Fenner & Smith, 216 Su¬
perior Avenue, Northeast.

of America's topmost scientific talent with vast

the POLARIS weapon system are: U. S. NAVY BUREAU

resources,

working together

the

'A'
*
*

CLEVELAND,

g
on

let

With Merrill Lynch

mi
Projects Office, U. S. Navy,

conclusion

■

A" /e*k

#fi

hun¬
length and diameter
many

that, although the mech¬
anism which produces these read¬
ily available propellants is the
relentless glow of the
sun, the

ourselves

ff§i

mi¬

unmanned

mechanism by which we can util¬

If'XlM

'
'
MASS. INST, of TECH.

for

reflectors

may

length

manned, high-speed propellant

factories.

economy

Guidance System Development

;

A
$

GENERAL ELECTRIC

Wi
'ir.

Wm
jm

Propulsion

'/*

t
AEROJET-GENERAL

iU M ;a

wi tsi m

'??/}/,/", f
*
rl

''k; 'is'-

2"'%

for

| 2

!0?P$

n§§

000k

>/'

few

dred feet in

planets,

fuel

"In size these
power

Weapon System Manager

and

188111
>

other

fSliifl

used

resulting

con¬

scheme

same

enhance the possibilities of

crowave

$*'&

planets, it is

the

inter-planetary flight.

Ordnance, U. S. Navy

that

its next flight.
dissociates

sun

tyVks

Merrill Lynch Adds
PORTLAND, Ore.—John J. Villani

LOCKHEED

means

leadership

of
&

has

been

added

Merrill Lynch,

the

staff

Pierce, Fenner
Smith, Executive Building.

Commercial and Financial

The

Chronicle

Thursday, April 17, 1958

(1726)

study at the present

Ignoring
and the Rare Earths?

Is Chemical Research

The list of

time. If this

project is successful the

Automobile Engine

potential metallurgical

Within

applications is a long and impres¬
sive one but there are several as

prospect

the

Exhaust

past year

technical

journals
report that the rare
furnishing car¬
earths might help solve one'of the
loads
of
materials
to replace yet unanswered questions. First,
when beneficial results are ob¬ big
problems of smog and air
something that has been far less
tained, is this because of the ac¬ pollution—automobile engine ex¬
productive.
haust.
The technique of "flame
tion of one individual rare earth
Future in Molten Metal Industry or will the group as a whole do ceramics" in which non-metallic
By S. BECKER TREAT*
the same job? - Secondly, in what powders are sprayed thru a flame
Misch metal — a metal made
Vice-Prcsident-Sales, Lindsay Chemical Company,
form and what is the proper gun,
shows promise of signifi¬
West Chicago, 111.
from the entire rare earth group
method of adding the rare earths cantly
reducing the amount of
—plus iron, equals the flint in
in mill practice to achieve maxi¬ carbon-monoxide and hydro-car¬
Thorium prices are competitive in the world market, and many
your cigarette lighters.
You can
mum
and repetitive results?
If bons in exhaust gas. Complete
readily see that give-away
of the prices of rare earths are in the general
coating
of piston and cylinder
matches play no part in the ad¬ positive and favorable answers to
ical range, are assertions made by Mr. Treat in dealing
these questions can ultimately be heads may well catayze surface
vertising and sales promotion pro¬
combustion
rate
sufficiently
to
lack of recognition accorded these materials. The
gram of the rare earth industry. obtained, the steel industry might
warrant reduction of anti-knock
Chemical official depicts present and potential market for
This good old country of ours is well bring about a large expan¬
additives in gasolines to say
just about the only one in the sion in the production of rare
nuclear and non-nuclear applications of thorium and its
nothing of prolonging piston and
world in which matches are given
"almost totally ignored" by-product rare earths. States these
cylinder head life. The prospects
earths.
away. This may be a bit facetious,
of using a large tonnage of rare
materials will be in excellent supply and are worthy
This interesting group of ele¬
but if each American* would re¬
earths in this application is indeed
serious attention today. ^
;
fuse his free matches and use ments,
particularly cerium, can an
intriguing one and practical
material. However, the brightest lighters instead, each and every give vastly improved opacity to tests are already underway. There
Before my very brief discussion
one would rate a low bow from
non-nuclear future for thorium
are
a
number of other possible
of the potential of these materials,
me.
Seriously, t h o U g h, misch porcelain enamels—cerium having
seems to be as an ingredient in a
catalytic applications for the rare
I want to put in a plug for ura¬
metal and/or certain rare 5 earth more than 3 times the opacifying
thorium-magnesium alloy.
This
One rare earth plant is
nium's country cousin — thorium,
chemicals might well have a tre¬ effect of tin or zirconium oxides. earths.
alloy has filled a gap in materials
and those
now owned by one of America's
mendous future in
the molten
Cerium
for jet planes and missiles. They
prices today, however,
hitherto exotic
metal industry. Today there are
best known catalytic producers,
seem to be the only suitable light
but now alseveral prominent steel companies prevent wide spread use of this
weight materials with the neces¬
while another; one has a research
most downfine opacifier — a situation that
sary high temperature tensile and swearing by the rare earths, as
to-earth
ma¬
program in this field underway
creep
resistant properties. The additives to certain grades of steel might well change for the better

Thorium

is that we will be

commercial chem¬
with the
Lindsay

such
samarium,

terials

producer claim that in the 300-to700 °F range
this alloy literally

gadolinium,
dysprosium,

less than 5 %

are

sup¬

certain

plant

mate¬

other
rials

take

re¬

now

closer
attention in
nuclear appli¬

materials might be

of these

just what the doctor

of market

potentials for our materials
be predicated first upon the

must

of production
occurrence to¬

inter-relationship
and
upon
their

in the future.

the

present .time.

A REPORT ON

SOUTHERN NATURAL GAS SERVICE

SOUTHEAST IN

TO THE INDUSTRIAL

other channels.
Now for the rare

earths—please

mental look at the periodi¬
elements. Of the 90
odd elements occuring in nature,
about 16% are in this group of
chemical black sheep which have
been father unfortunately dubbed
"the rare earths." I do not mean

take

cal chart of the

Ordered.

consideration

Any

confi¬
applications in

and fabricators are

dent of significant

cation, we should be susceptible
to the idea of replacement, for
come

practically all the output of
the pro¬

ducers

Treat

alloy, nevertheless,

this

ceiving

at them.

Although containing
thorium, these alloys

require a very respectable ton¬
nage of thorium.
At present the
aircraft and missile production, in
other words
our
defense effort,

If these

etc.

alone.

flies

europium,

—others seem" to swear

gether in nature. Although there
are
ores
containing on the one

imply that the

should reflect that

industrial uses
relatively high

percentage.
But, assuming that
mostly thorium and on the
everything in nature was endowed
other hand mostly rare earths, it
with a purpose, I submit that the
is hard to beat monazite as
a
rare earths are here for something
hand

more
than being almost totally
today yields 9 to 10
ignored in most college chemistry
units of rare earth group to every
courses and only occasionally
1
of thorium.
This adequately
thought of in chemical research.
meets
the present demand for
as we

GROSS

Monazite such

starting material.

AND

REVENUES

NET INCOME

process

Let's look first at the present uses
and leaves considerable
and
the
chances
of
expansion
of excess rare earths —
therein. The first American use,
a good backlog with which to face
and today still one of the most
the future and pursue new mar¬
kets.
Since
both thorium and significant is that of the cores of
carbons for movie projectors, the
rare
earths
come
out of
our
klieg lights essential to movie and
processing streams simultane¬
TV production, as well as search
ously, what affects one must nec¬
lights and Coast Guard beacons.
essarily affect the other.
The
future
in
this
application

continued to climb to record
increased during the year Respite

of the Company during 1957

levels. Net income was

thorium
tonnage

potential for these
interesting elements may well be
realized by vigorously pursuing
Much of the

that

movies

will

television

and

play in our lives. Another and
and
equally significant application is
for this reason we should review
the use of Cerium and Rare Earth
briefly just what industry is doing Oxides as glass polishing agents.
with them now and look at what
Today it is a reasonable bet that
is ahead. With respect to thorium,
eye glasses, the lenses of cameras,
the classic application has been the mirrors in home and office,
In the Welsbach Mixture used to
the face plate of TV picture tube
impregnate incandescent mantles. and countless other glass special¬
'While the Coleman and Aladdin
ties
were
polished
with these
types of lamps now may be found oxides.
»' in this country only in the hills of
Here
one
can
become
quite
West Virginia and a north wood's
enthusiastic about the future
cabin, the lamps of China and in¬
the extension of known uses,

still

world
vast quantities of them.

much

deed

use

the

entire

American thorium prices are com,

petitive in the world market, but
political intrigue and lack of ham
American dollars denies us much
of this foreign market. Better in¬
feeling,

ternational

conditions

the

more
stable
international

monetary market, and perhaps a
barter
this

program

market

might .well open

This

us.

Welsbach Mixture is

same

good oxida¬

is usable in the
Fischer-Tropsch reaction.
tion catalyst and

Alloy for Missiles and Jets
Thorium's high melting pointover
a

6500 °F—has led to its use as

high

temperature

refractory

by Mr, Treat before the
Conference sponsored by
Atomic Industrial Forum and the National
Industrial Cc—ference Board, Chicago, *il„
•An

address

Atomic Energy

March 17, 1958.

which could well be

dollar

lion

which is
has

been

now

common

for the

Dividends per share

stock amounted to $2.00 as

compared to $1.85

previous year.

SERVICES

principally to the role

tied

seems

substantially higher operating expenses.

Plate

glass,

simply window glass that
ground and polished, is

abraded

pipelines and municipalities
east.

companies,

throughout the Industrial South¬
sold amounted to more than

The total volume of gas

316 billion cubic

The

1957 reached a record

enterprises, gas distributing

feet, the

highest in the Company's history.

Company's management is continuing to

pansion of services to

plan for ex¬

the Industrial Southeast and conse¬

quent benefits to consumers,
For

copy

our

stockholders and employes.

1957 Annual Report, which contains

tailed information about the

both sides simul¬

taneously — a great step forward.
Otherwise, little or no change has
been made in polishing techniques
since the day the first piece of

platb glass

number of industrial

multi-mil-

market.

supplied by the Company during

de¬

Company's financial and service

highlights during the year, write to

Dep't. FC.

made. Plate glass
buy red rouge, just
cheap red iron oxide, by the car¬
was

producers
loads.

Because

this

slow

at least
by
comparison with cerium, the
plants must have polishing lines so
long that one end can't be seen

material,

working

Can

other

the

from

the

Cerium

foggy

off for these people?

they create better glass sur¬

faces

with

less

These

less

cost

ideas

are

man hour
investment?

per

capital

under

Home

COMPANY

0ffice^8irmingham, Alabama

day.

speed and cleanliness of
or Rare Earth Oxide
be

made to pay
Can

SOUTHERN NATURAL GAS

intense

SERVING

THE

GROWING

SOUTHEAST

can.

Volume

187

Number 5734

The Commercial and Financial

Chronicle

(1727)
'

therefore, expect some interesting
'results.,..
/ V.
J

Battelle Investigation

V-Finally-,
*are

utilization program
Memorial Institute

telle

Canada Annual

of companies
sponsoring a rare

a - group

currently

earth

at Bat¬
con¬

—

cerned at present with four
po¬
tential applications. I must admit
two things — first, that such

potential
as

nuclear

materials

such

samarium, gadolinium, dyspro¬

sium -and -europium have
hardly,
if at all, been mentioned.
The
'reason

simply

^worthwhile

that

other

is known.'

use

But,

'indicated previously, what effects
earth element

rone rare

Investment Dealers of

'affects the others in

one

way

anothen "These excellent neutron
absorbers are available

Program

scheduled

Meeting

-TORONTO, ONT., Canada—The
forty-second annual meeting of
the Investment Dealers' Associa¬
tion of Canada will be held at the

for

the

meeting

follows:

Tuesday, June 17, 1958

2:30 p.m.—Meeting of the

bers

the

Executive
Room

outgoing

mem¬

National

Committee

Card

Richelieu, Murray Bay,
Wednesday, June 18, 1958
Quebec, from Wednesday, June 18
to Saturday, June
9:30 a.m.—Meeting of the mem¬
21, inclusive.
of
the
Programs are being arranged so bers
outgoing National
that

business

members

sessions

will

for

held ; in

the

mornings. The registration fee is
$35 for each member and $20 for
the ladies.

All reservations, for transporta¬

tion

and

accommodation

Executive Committee.

the

12:30

bers.

noon—Arrival

."5:30

p.m.-—Reception
by
the
President; Mr, R/ H. Dean for
members, their wives and guests
in the Lounge.
;
•

Manoir

duced at

that

party

p.m.

Golf

—

and

of the future

their

wives

and
guests in the
Presentation
of
golf

Lounge.

Tournament

prizes.

(see form attached).
5:30 p.m.—Cocktail
party in the

9:00

Casino.

p.m.—Dancing in the

9:30

p.m.—Entertainment

group
ers

sing¬

French-Canadian

and dancers in the

Saturday, June 21, 1958
9:30

Casino. A

bers

9:30

a.m.

—

FORUM

—

a.m.—Meeting of the mem¬
the
incoming National

Executive

Friday, June 20, 1958
"Office

Procedures

and How to Improve
Internal Office Operations" in the
Rose Room. Chairman, J. L. Mc*

Room

2:25

p.m.—Departure for Mont¬

real.

the

"if that" variety. . But
;please bear in mind that generally

speaking chemical research has
*-givenv the
rare
earths
a
cold

shoulder—Why bother with them,
jthey are rare and expensive. This
(industry has

to give,

news

for in

In 1957,

general commercial chemical
range.

Furthermore,
in
large well-financed

years,

recent
compa¬

the West needed

nies have either built
thorium and
srare
earth

processing
existing

plants

else acquired

It, is

ones.

..j fair to state, therefore, that the
research, advertising

^industry's

.[and marketing

will

programs

jceive additional shots in the

MORE ENERGY THAN EVER BEFORE

re-

arm.

- Thorium and the rare earths
.will be in excellent
supply. Con-

j stant work on new production
:{techniques, possibly new and
|cheaper
ous

program

el search,;
!

ore sources, and

} These

and

provocative

re¬

Company again set records

in supplying the West's fastest growing fuel

wider

mean

lower

—and El Paso Natural Gas

vigor¬

application

only

can

availability

prices.

and

somewhat

'exotic

materials
are,
therefore,
[worthy of serious attention today.

1957, El Paso Natural Gas Company

tinued its biggest job

G. J. Sfadller Will

furnishing

F. S. Moseley t Co.

i
J

PHILADELPHIA, Pa.
Moseley & Co., 1421
Street, members

—

Exchange, announce
George J. Stadtler, Jr., has

be¬

idelphia office

as a

registered

Prior to joining F. S. Moseley
j& Co., Mr. Stadtler was associated

Stone

Webster

Securities

Corporation

and prior to that was
Assistant Vice-President and
officer of the Girard
Trust Corn Exchange Bank. •.
an

.'investment

Mr.

| the

Stadtler ;graduated

Wharton

of the

School

Finance

University of Pennsylvania

ing, Rutgers University. He is a
/ member of the Philadelphia Secu¬
rities Association and the InvestI ment Traders Association of Phil¬

adelphia.
S.

He is

Army

higher levels.

Colonel in

the

Staff

ANGELES,

Cleland
staff

has. been

of Fairman &

Seventh

—

Street,

added

the

Co., 210 West

members

the

Pacific Coast Stock
Exchange. He
was

previa'sly
Tegeler & Co.

the

volume of gas delivered

use

soar

Copies of El Paso's 1957 Annual Report to Stock-1
are available
by writing to El Paso Naturalj

holders
Gas

subsidiary, Pacific

Company, El Paso, Texas.

crease—

energy
serves

providing insurance that tomorrow's

needs will be met. At year's end, such
stood at

35.5 trillion cubic feet. And El Paso had
completed

negotiations with producers for long-term

VOLUMES

re¬

all-time high of approximately

Ten years of progress
in

with

Dempsey-

are

set forth in the Company's

ress

made in

serving the West in the past year, and
includes for the first time operating figures for
Pacific Northwest Pipeline Corporation. In 1957,

operating

revenues

reached

record

I
I
I

prog¬

high of

I
1948

I
1949

than

the West—

Pre¬

I
1950

1951

I
I
I
I

I
1
I
1952

1953

trillion cubic feet
a new

record

changed
The

firm,

Duke
now

Securities

located

was

500,000,000
400,000,000

200,000,000

100,000,000
1954

1955

1956

1957

Company furnished

of natural

gas to customers in

for the Company

Co.

EL PASO NATURAL 6AS

700,000,000
600,000,000

3030

Southwest, Atlanta,
previously in
Park,

College

Ga.

800,000,000

300,000,000

ATLANTA, Ga.—The firm namo
of Duke, McGee & Co. has been

Butner Road,

900,000,000

In 1957, El Paso Natural Gas

$34,506,238. This is equal after dividends

Now Duke Securities

_.l

needs of the West

MCF

1,000,000,000

meeting the energy

con¬

tracts for another 1.8 trillion cubic feet of
gas.

at 14.9 lb. P. B.

•

$301,090,537, with consolidated net income of

daily to its markets.

Northwest Pipeline Corporation, continue to in¬

47,800 stockholders. This report summarizes

Cal.—Karsner

pending

511-mile pipeline from Twin

Annual Report for 1957, which has been mailed to

(Special to The Financial Chronicle)

LOS

Falls, Idaho, to Las Vegas, Nevada) to increase the
come

gas reserves of El Paso and its

El Paso's operations

Fairman Adds

11,795,041

outstanding (excluding

These facts and other information
relating to

reserve.

per

Looking to the future, the Annual Report also

projects (including

Of key importance is the fact that the controlled

from

and the Graduate School of Bank¬

Next year—and in- decades to

even

outlines plans for expansion and describes

of natural gas in the West is expected to

j»

with

energy.

$2.39

participate in dividends in 1957).

And natural gas played a
bigger part than ever

supplying this

5,226,903 shares of Common B Stock which did not
before by

ever

rep¬

resentative.

for the West.

dustries in this great area.

Stocks

shares of Common Stock

the millions of people and by the thousands of in¬

that

come associated with their Phila-

ferred

con¬

finding, transporting and

More energy was consumed than

of the New York

1 Stock
i

Chestnut

energy

Card

10:00 a.m.—Members must have
their luggage labelled and
ready
for delivery to the boat.

Jmany cases carloads are available
(and many of the prices are in the

Alpine, Wood, Gundy & Co., Ltd.,
Toronto.

Committee

pro¬

Casino.

Principal

5:30 p.m.—Reception
by the in¬
coming President for members,

for

the Ladies in the Lounge.
2:00

Honor

My second admission is

much

""if. this"

can

Guest

of
Honor
and
Principal
Speaker (to be announced later).

noon—Cocktail

Speaker (to be announced later).
2:00 p.m. — Golf
Tournament
(see form attached).

time rather than gram

by gram.

pounds

Guest

10:40 a.m.—ANNUAL MEETING
of all the members in the
Casino.

mem¬

Richelieu, are to be made J:9:00 p.m.—Dancing in the
today, at through J. A.^Kingsmill at. the Casino.
v;
representing only a frac¬
Association's head office, 55 Yonge
tion
of those
Thursday, June 19, 1958
prevailing a few
"years ago and in many causes, ' Street, Toronto.''
9:30 a.m.-rr-FORUM—"Securities
-\:.of

10:40 a.m.—ANNUAL
MEETING
of all the members in the

Lounge.

prices

hundreds

Salesmanship" in the Rose Room.
Chairman, Dudley Dawson, Daw¬
son, Hannaford, Ltd., Montreal.

12:00

Manoir

inevitably

llCOMPANY

Chronicle

The Commercial and Financial

Thursday, April 17, 1958

(1728)

levuiinic

Nine Impoitant Trends Shaping
The Chemical Industry

this

farm

discusses nine significant

of pin-

terms

ahead in

look

costs,
out

mitigated

somewhat

been

process.

re-

movements

ties

and

the fore¬

Here

are

fied

impor¬

whichwill
xDr. Wm.

Copulsky

dustry. These
will

prod-

game time automation of produc-"
Another possible factor keeping
|jon and clerical activities will in- up costs and squeezing profits is

^Thiss^ill
jzed

specifica-

can

the company which

"no."

say

•.

mean a greater organ-

part

hand this

one

prevent companies from going
into some exciting new high-profit
government ventures. On the other hand, by

both by government, and

preventing severe mistakes, it may
private firms under the smooth the course of profits and
of prospective contracts, minimize severe fluctuations in
The intensive research on atomic business.
cnergy

the

define

risks and

rials

and rocket fuels and mateand will / have
by-

have

increase

staff

functions

chemical industry will

mean

product effects on non-military
greater nped for more graduate
need for more graduate
markets.
business training forchemical
to the individual business will be
'lResearch by "teams" will give business naming lor cnemicai en
? Research
very important to the future of less importance to the individual
® s.
hepn
n
trpmpnHmK
that business:
inventor.
Great discoveries will

profits of the forthcoming years,
The effect of these trends applied

en!

s^^lready

...

'till

from

come

indivMiml^as^Dr

(1) Technological change ziegier has recently shown with
through research will be more his new isotactic polymers How-

"verThe

rapid and more competitive.

rerearch

(2) Pressures on raw material quickly find ways to duplicate, the
supplies will rnesn grestcr stten— same effects bv ulternste methods
tion to mineral development in all as was the case with Dr Ziegler's
parts of the world, and to agricul- discoveries and
such dis-

Extend

tural

at home.

resources

w,ani

ment will,
line

increase

organization.

xasier

tnan

prices

organiza-

shirt

manage-

and

Unes of effort in

time

XXrstries°"Sing 0VCr Wt0

0t^I^l^ll continue to in-

will put

•

The

(8V

o r

a 0 p

"hrai

ipt\vnrQP
firms"will

Chemical

inter.-

sifv their foreign onerations
The

genwalist

opposed

to the specialist will come into his
own.

■

closely

now

look

interrelated.

Let

detail.

them

somewhat

oil

supplies will
tention

mean

greater at¬

mineral

develop¬

raw

agricultural

be^ more rapid chemical

and more competitive.

The

resources

materials

industry

This
xxi.o

vah-uvumbxx,.

the

increasing
will
wm

intensify

will

versification

crossing

di-

over

into other "industries."

tinue

crossing

mean

from

specialties

—

nance
a

the

chemical

industry
capitalism to fi-

capitalist,
a

greater

there will be

-i

tendency

•«

tion,

The trend of the economy will
into other lines of industry.
guch moves into atomic energy— be upward not only in the U. S.
— metals — are
already but in most of the world. Many

methods

j"[e

nh
j
sources

and

alternate

between the

rial

select

too

very

producer

basic

and

This

has and will result in
many new

a+Tr

other
.

uW~ jOS-i. Pr°ducts.

hand

may

bl£>h ^profits

mean

taking

Austral.a-eventually in the Arc-1
^
tic regions.
(4)

On the cies and private
an

end

tensively

concerns
investigate-the

hiSh growth and profits. There
has been a recent re-recognition
of the risk of chemical companies
S°ing into products for direct sales
to consumers, -fntrAunKl
with abandonment
r\4RmirlrllA^
of the more favorable "middlea

of
^

mii3flmSnnmnnf
Digitized WThp q
for FRASER
p
e t

r\t
of

the

chemical

deS wm cSdtoul to be foTed
Rowing products as polyethylene,
and overestimate the demand for
, growing
well established
products. subject to rapid technological change.
b

siow

(7) The shortage of

brainpower ,

will get worse.
or

chemical engineers tend to

overlook the primary shortage by
nature of brainpower. Intelligence
is normally distributed. There are
many of average intelligence, few
0f high intelligence. A
The average
4-a 4vi
figure shows no tendency to in-

crease naturally, to

knowledge.

the best of our

Therefore, as civilization grows
more complex, and the intelligence
remains the same, when the com-

plexity of the culture increases
faster than its population, we run
Up against the brainpower shortage. in recent years the chemical

companies to cross industry lines, industry has solved this problem

over.

g ve^

ThPis broad diversificationy to in. "py bydrawfngpeOplefrom
in
activity will tend
in- other fields principally from the

1 rices and costs will rise with

dustrial
crease

laster than prices,

will inuse

costs probably tending to rise

agen-

once associated potentially inexhaustible raw ma-

stcrs

materials

Domestically, government

Tvrnct

favors ists

quick commercialization of research has been dominant. This

rapidly.
k

mateMany who worry about specific
ultimate shortages of manpower as chem-

raw

the

position

new

vears

undeveloped areas as
America and Africa under
the spur of U. S. and world general prosperity will develop

relatively
Latin

VtS

management from staff rather than man" position.
from line iobs- Already many acOne factor forcing the crossing
Lclude no? onlv ihe saies hnflhe One rapidly developing focus of cou»tants and lawyers have found of industry lines is the force of the
research area
The ranid dmmiin
research is the processes for direct their way to the t0P- This trend anti"tl ust laws agai"st to° §reat
ments in the
reduction of iron ore
wi]1 continue. The day of the a concentration in one line. New
nolvpthvlpnpc
in
Pressure
chemist or chemical engineer who interpretation of these laws may
*
ft
"J6
^W
starts and successfully manages also adversely affect vertical inWith
Intpncdffpa I o1S lreil loin186 piessure.
develop new hi§ own business is about over, tegration. These new forces will
hiehlv skilled
by souices in Latin America, Afnca, s^af£
highly skinpH teams, research for lesources, especially mineral re- The professional manager and his aR increase the trend for chemical
a drive
uion

least

consumer.

completion of the transforindustrial

companies will conA probably continuing mild inexpanding diversifica- flation will accompany the steady
tending to cross more ancl business rise.
;Q

mar- from thermal to chemical

With increasing reliance on staff
a

the

their

apparent. By broad definition and
background chemical
companies
are capable of such spreading especially as new technologies develop. This is especially true of
being used the metals industry where a trend

indication of this trend.

will

hostile
government environment, backed
by monetary
and fiscal controls used with little
hesitation or loss of time, and
anti-trust laws. : :

"Chemical"

yearsh\rccent gfej®tS® deatwUh

rcmnpHtirm w

scientific petroleum

chemistry and business—is already

and

raw

exponentially.

are

fluctuation

abou^ a lot will be required, mediate position in the economy

mation
Use

mildly

ment in all parts of the world,

at home.

will

brainpower.

Graduate business and

costs

cut

, As'companies'interisifV diversi-, others, often in partnership with

material
muicum

raw

fluctuate as attempts' are 'rfrade to
inventories at reasonable

The 8ro™inZ shortage ol "brain- fication and spread into other "in- metal companies, but often alone.
power" will also mean greater re- dustries," the need for staff work These fields potentially are as
-lian? ' in
.ef.fprts'r:a.nd wil1 increase. The need for staff large as the "chemical" industry,
greater use of technicians to in- workers who are "generalists"
Chemical companies,'especially
SLif
y
research rather than specialists will become in recent years haveofalso come to
apparent—more people who know recognize the value
their inter-

and

(1) Technological change through
research

„

(2) Pressures

■

Many of these important trends
are

Contributing to the need tor re- in problems concerned with

s^tandTnv^^typyeTe1baceks ,n'reaslng costs generally.
(7 V

Positions. Now theie is un inciedsinS Remand for supplementation
of the basic scientific background
by graduate business school.
This trend will accentuate our

research effort, speed calculators

new

...

;

keep

;
great pressure for changes in our schools will be strong contenders
r-Se Pat®nt system in practice and con- lor recent graduates,
..
tepdmg to rise cept.
Our patent system is not
Eventually .the tendency to auand squeezing today equipped to handle the vol- tomation will be further extended
ume of work or the complications
to staff functions.
Already high

vaI;Lompames_will intensify di- of the rapid

nowpr" urill

business background filled these

"team" ?concept

the

potential overcapacity in plants as levels; ■ Other artificially induced
a result of the impetus''fluctuations' will be artificial in
ing economy, relatively easy nature, as the two-year new automoney,
rapid amortization and mobile / model cycle - With car'
other tax benefits granted by the manufacturers making substantial
government, etc.
Some experts model changes every two years, a
estimate that even in 1960 about cycle is created affecting demand
75% of established chemical prod- for chemicals "and other car proucts will be in significant over- duction requirements.
capacity. Increased fixed charges
However, these fluctuations will
per unit of output will contribute tend to be moderate. The increasto higher costs and lower profits ing staff structure of business
since the prevailing competition makes it better organized to say
wih not allow compensating price "no," and less business decisions
increases.
will be based on "mob psycholRising costs and profit squeezes ogy. This means less buoyant exwill give a major impetus to re- pansion and less severe -drops in
search designed to increase pro- business. Also; putting dampers oh

8rowth since "the end * of"world search design*
since the end of World
War "
such staff functions as ducttly,ty,and
market research. At first chem- maienais.
ists and en8ineeis witb practical M Companies
grow^j1-

intensification of research baslc* shortage of

xt,

faster than the

witneosis probaDly

to'wkle

covedes

(3) In the company
tion, staff workers and

the

hrough

chemical in¬

school. A! premium -paid for past 10 years; the economy will
high skills of graduate schools continue to grow steadily with
agement will-increase .faster will justify the increasing cost and only minor setbacks - affecting
time of this training.
chemical business. ;
' ..
.
than the line organization,
An increase in leisure time will Some of the temporary setbacks
^ As business becomes larger, more
...
...
complex, and requires greater open, new markets. The large re- will be due to overcapacity in the
long-term planning, the need for cent
increase in
pleasure boat industry fwith tendency to over'staff work will increase. At the sales and use is an example.
produce/, Production will tend to

staff workers and staff man-

impetus

shape the

trends

(3) In the company organization,

also intensi-

under

research

subsidy

increasing length of college postwar years it seems reasonable
training with more going to grad- to assume: that,, as it.has in the

will

has

cold-war

for labor done.
'
,

uate

due.tQjjj^Pca^nig

controlled

closely

The

demand

will be channeled in directions
other than unemployment. Some

and

need lor high purities

and

tions.

trends

tant

partially

are

desire

seeable future
nine

the

II!'• wets as methanol. These difficul- tensify this trend.

andJ^r.e lids'
which will af¬
fect

profitable plants both

lactam and well established

in Mexico.

forproducts as capro-

broad

these

the considera¬
of

costs

diluted in total

are

costs on coal wipe
savings at the

freight

some

for this

reasons

that

V
.(") Demand will coiitmue to mwill also induce IT. S. companies places where the alack «will be ;
" crease steadily with only niild
to turn to foreign operations, A taken up will be: a shorter work
seasonal and inventory type
recent example is a move by a week with more leisure, a lowered
setbacks. .
''' •% ;
U. S. company into naval stores retirement age,; longer vacations,Based on, the experience .of 4he

tion

Some

facts

Pressure on raw material sources

But just as
important is

sup-

chemical projects.

of some companies
difficulties of converting

the

material

mine, and the technological diffiof
large scale
coal-to- the decreased

cent experience
research

Other V The chemical industry today is
will be the:a very loosely connected industry
productivity using a vast number of raw matebacked by strong unions; and pres- rials
and
producing an even
sure on exhaustible raw material greater variety of final products,
supplies.
It is tied together mainly by the
We can also look forward to similarity of the operations and
continuance of present Federal tax processes
employed.
As these
rates, with increased expenditures types of processes spill over into
on
public construction of roads other industries as the metals, the
and schools—two critical items chtmiical /Undustr^w ^will. move
which could hurt our future econ- 'with the processes, 7^: • Jr-i
'f-*
oray if not taken care of by inOn the other handr companies in
creased, expenditures.
.
other "industries" wilf'spillover"
The heavy pressure on labor into the chemical industry es such ■
costs will be ajn incentive to auto- companies as W. R. Grace, U* S/
mation—in turn this will relieve Steel, General Electric, .and the
pressure on the labor supply, but petroleum companies have already

culties

of military needs revolution-

analytical

raw

basic materials

ized thinking on the speed of developing new products. This has

pointed numbers. This "numbers
game" is a useful and practical

coal.

the

are

atom bomb under the high pressure

spend—plus the fact though not necessarily .intimate,
easier to spend than knowledge of a variety of busi-:
a continuing hesses.
•;

failure of the at least of mild inflation.

the

faster than coal, cnemion gas and oil will inmore
rapidly than those

crease

grade research; (2) transformation of chemical
industry from industrial capitalism to finance capitalism, and
increasing reliance on staff work, will encourage rise of top
management from staff rather than line jobs, and the growth
of "generalist" as distinguished from the "specialist";, and
(3) crossing of industry lines with chemical firms going into
atomic energy, petroleum and metal—and vice versa—and
expansionary diversification abroad. Author foresees growing
demand trend for the chemical industry revolving around
seasonal and inventory type of setbacks.

Forecasters are often called upon
to

tax will contribute to

surplus problem.

from

with high
,,J

that

cals based

well

to
is

groups

will go up

chemical industry. In looking ahead,

Copulsky observes: (1) competition now includes research
as sales and may well end high profits once associated

Dr.

would

trend

plies will be reflected in increasing costs and prices for chemical
products.
However, despite the
fact that natural gas and oil prices

Development Division
R. Grace & Co., New York City

trends bound to shape the

Pressure

Grace Research and
W.

This

intensified

Commercial Research Director

Chemical commercial research head

based

trend.

government to find a real politi- : contributing factors
caliy acceptable solution to the tie-in of wages to

COPULSKY

By DR. WILLIAM

and other agriproducts confirm

acid,

cultural

gut

ing profits.

Government

and squeez-

deficit

ter1ials* Recent announcements oil, the continuing of the cold
of
polyamide resin from castor
growing

influence

spending,
^

war,

the need for staff workers,

management

staff will

have

liberal
years,

But in the last few

become more "generalist" and have been the schools of business

less

and commerce. There will soon be

specialist

their

the There will be

increasing need a

pressure

arts.

the fastest growing schools

for

men

with

approach,
^

reaf conflict

here on the gradu-

widespread, ate level in inducing students.

Volume 187

Number 5734

The Commercial and Financial Chronicle

(1729)
The major sufferer will be edu¬
cation which is

getting

less

and

tempting as a career. This is
especially-dangerous trend

■

(9)
v."

The "generalist"
the

his

specialist

will

opposed to
come

Actually our colleges have en¬
couraged specialist, with narrower

into

and

own.

As chemical companies grow in
since it could result in the least
size and complexity
crossing in¬
qualified doing the teaching. Some
dustry lines and expanding
way of making teaching more at¬
throughout the world, a greater
tractive is
certainly necessary.
need for the "generalist," the man

The brainpower shortage

;

mean

gradual; forced

will

elimination

employment discrimination

all

types/

use

of women in

The

widespread
professional jobs

already underway.
The

use

nicians

trained

supplement

efficient the

tech¬

and

make

of scientists

use

vis

also a
necessity.
Brainpower
shortage will accentuate the use
of

research

"Teams"

and

use

automation where possible.
To

some

extent, the attractive

U. S.

economy will tend to
skilled brainpower from

draw

narrower

works

his

interests

way-to-the

doctorate.

earlier

stage in

their

career.

the nature of their
job, they will
be in increasing close contact with
all elements of business and in¬

vert

his

profits?

skill

Here is

practical use?
a

The

organization that allows its
dustry,
and
with
all
types
of
best men to become-too' highly
people,
cultures,
and
societies.
a
specialized is running the Tisk of
relatively
new
development, Managers
must
be
integrators,
losing good management material.
probably coirici&ing with, and a capable of mentally
evaluating a In
such an organization, specialists
who knows a little-about a
lot, as requirement of, newly industrial¬ vast mass of knowledge and ideas
become unwilling or unqualified
opposed to the specialist will de¬ ized economies. While undue im- into an effective decision.
to accept broader responsibilities.
velop. The increasing demand for prortance on expertness in a single
It is evident that as our total
Too many vertical functions and
men trained in both
chemistry and field is now the rule, the educa¬ scientific knowledge has increased,
lines of authority and communica¬
business is evidence of this trend. tional concept of the renaissance it has become more
difficult for
tion
develop without horizontal
Undoubtedly, such persons will was that-a really-educated man any one man to master a broad
connections.
require a
basic background
in was one seeking not a deeper and segment. Increasing specialization
deeper • penetration of a single results, and instead of individuals
chemistry or chemical industry. <
Unfortunately, the development field, but a clearer understanding we need teams to tackle problems.
Joins Putnam Staff
of the generalist is
Opposed to our of all the parts of knowledge and But how can specialists talk to
(Special to The Financial Chronicle)
current
academic
each other, how can
tradition) al¬ their relationship to the whole.
they be co¬
HARTFORD, Conn.—Stanley J.
Managers of the future chemical ordinated? This is a job that needs
though
recently
the
monetary
Olszewski has joined the staff of
awards given to the "generalist"
industry cannot be specialists in the talents of the generalist. What
Putnam & Co., 6 Central
Row,
on
television have
been
stimu¬ their management job, even good is the specialist if no one can
members of the New York Stock
lating.
understand him? How can we conr Exchange.
though
they may.. be
at some
This academic concept of speciali¬
zation is not an old
concept, it is

abroad,

especially from such
omies
far

econ¬

Britain, wherelanguage barrier. How

this

trend

the

upon

mature

Great

there is

will

goes

immigration

depend

laws

and

the relative weight
ists and chemical

foreign chem¬
engineers place

the tangible and greater mone¬
tary awards offered in the United
on

States.
U.

On the other

S.'

chemical

hand; as the
spreads

industry

abroad,

we can also expect more
U. S. chemists and chemical
engi¬
neers to; go. abroad;: '
* 1 :
uv

(8)

Chemical firms will intensify:
their foreign operations.

,..

In.: view ef the rupidc
expansionof- the.XI.; S.chemical
-

industry and

heed; for scarce mahpoAvex* and
capital; domestically,; ma'ny J U. S/*

firms?,were reluctant to. expand!
abroad, especially When their export business

good. Many fears
home; strange laws,customs, and taxes; the i greater
tendency i of - foreign governments
held them

was

to interfere in

business;) danger of

expropriation,

losses in

wars or

revolutionise.^;
But with the

growing competj-.
Japanese!
producers in export markets, with:
seemingly decreased opportunities,
domestically for expansion, and
tion: of

with

i~European; and

the

probable! formation

large free trade economic

Europe, and
Latin

smaller !scale, in

America, there is

trend

areas

growing

buildiing branch plants

abroad. :-,

Other

JljCV)]
forthese, nioves;

reasons

abroad arc the effect of anti-trust
laws limiting U. S. expansion do^,
..

mestically, the'increasing need for;
minerals

and

materials from

raw

foreign countries, and, nf course)
the
growing, foreign 'economies
with living standards
rising to the
point, where real demand, for/in¬
dustrial-chemicals is created in

large " scale.
impetus has
of

tax

Another

important

been

the possibility
through foreign
:-

savings

operations.

/'♦

; Chemical companies have found
it

increasingly difficult to export
abroad, not only because of foreign. and

because

local

competition, but
increasing diffi¬

the

culty of passing through

barriers

exchange controls, tariffs,
quotas, and other artificial imped¬
iments
•

time

^abroad
kets for

business.

the

same

manufacturing
have found that the mar¬
locally produced items are

larger than for the
items.

firms

This

artificial import

imported

same

due

removal

impediments,

con¬

venience of ordering and delivery.
Side benefits to the U. S. are the
contribution

ment,

purchasing

ternational
the

abroad

good
and

and

feeling,
of

in¬

well

American

personnel

the ways of the rest

With

employ¬

power,

acquaintance

management

with

of the world.

technology and re¬
backing up the foreign
operation, a sound basis to bring
search

the

benefits

modern

insecticide that

new

Now, lor the first time,
on

the seeds and carried

growdh, plants

can

"grows" right in the plant!

insecticide has been developed that can be coated

right into the growing plants. Thus, in early stages ol

be given their

own

"built-in" protection against insects.

This
of

new
product, Thimet'® systemic insecticide, is a pioneering development
CyanamidY chemical research. It is already being used to control insect

damage

to young cotton

Research is

now

Here is the
Thimet—a

plants, alfalfa and

beginning of

new

sugar

beets—with dramatic

going forward to apply its benefits
a new era

other

success.

crops.

in insect control. The development ol

application of chemical science to agriculture—is typical of

the contributions

Cyanamid chemistry is making to

progress

many

Information of interest about the
organization, products and activities of
American Cyanamid Company and its
subsidiaries is contained in

let,

a new

"This is

abroad

New York 90, N. Y.

fields.

chemistry

spreading
diversification
requires a new type of

management with broad
and

new

understanding backed
help.

able staff

CFAIVAM ID
>

skills

AMERICAN

CYANAMID

COMPANY.

When in New York, visit

ROCKEFELLER

book¬

Cyanamid." You may
copy free on request. Address
Public Relations Depart¬
ment, American Cyana¬
mid Company, 30
Rockefeller Plaza
obtain

to the world exists.

This

challenging job

for the generalist
manager^

PLAZA,

NEW

YORK

the Cyanamid Exhibit. Open daily 11 A.M.-9 P.M. Main Floor, RCA Building.

20.

The Commercial and Financial Chronicle

1958

Thursday, April 17,

(1730)

rights

ship

Implications of

Joint Ownership

Secniitiesjand Other Property
Member of

[

election

some

property

not

made,

acquired it by gift, devise, or in¬
heritance.? ,V?V* .1
It should be remembered that

the

and

which passes by

After reviewing the

most

cases,

concerned.

(B j

former case,

the

]

time

i Gifts Involving Joint Bank
'

Accounts,U.

In,the'
the tax saved would

one-half interest.:

stance,

in part
of the
creation of the joint interests, and
by the relationship of the parties
by

presumably this share would rep¬
resent

liability

tax

Savings

Bonds, and Other Securities

applies to the transfer of

property interest of the dece¬
passing at his death. For in¬

any

estate

real

gift

determined

operation of law

survivor.

the

joint property

the

excise,

the Federal estate tax is an
tax that

In
short,
concerned,

price.

purchase

where

surviving spouse.

University of Pittsburgh
Allegheny County Bar and American Bar Assns.

more important implications involved in
ownership, Professor and Attorney Shattuck
concludes "that the advantages ... are greatly overrated." The
Pittsburgh writer concedes its feasibility if limited to modest
bank account, family home and possibly a few securities, but
contends that changed times make it inadvisable to place
title in joint names automatically without considering such
possible consequences as needless tax payments and harm to
welfare of families concerned. Submits disadvantages of joint
ownership will steadily become more jerious in oncoming years.

the

passing to the
As for property
owned
jointly by other than
spouses, there
is an inheritance
tax imposed on the value of the
decedent's "share" of the property
owned

Professor of Finance,

property is later sold, there will
taxes.
In Pennsylvania,Hot ex¬ be a taxable gift unless the pro¬
ample, there is presently no-in¬ ceeds are shared in proportion to
heritance tax imposed Oh jointly * the contribution by each spouse to

SIIATTUCK, JR.

By LEROY A.

result

may

saving of state death and transfer

dent

buys

husband

the

home, and has title to it placed
in joint names with his wife, the>
full value of the property will be
taxable in hisAestate should he
die
first..
On the
other hand,
should

the-;-- wife- die^ first, . pre¬
sumptively the full, value of the
property would fall into her es¬
tate.; It would then be .the respon¬

.The rule is generally different
a rate of 2%.
In the latter
depending on the degree ;of" fOTipersohality than for real es-: sibility of her executory to! prove
relationship, the applicable-rates tate, and is controlled by the ha-, that she furnished no part of the
are' as high as-%15%?of the ap-' lure of the joint interest as "deter¬ purchase ; price.. Whether, all of
praised value of the property in-/, mined by state law. The general jointly owned property,; or part
rule is that taking title to personal
or none of it, will be included in
terest passing to' the survivor.;
In many states, inheritance tax property in joiht names with suf-J the estate of the joint tenant first
rates vary according to the degree vivorship rights^ automatically re-/ to die depends on the facts in any
at

case,

•

.„

relationship of the parties in- - suits in a gift for tax purposes. ^iven case. The statute enumer*:
volved. In any event, the impact ]: There are, however, two important ates the various exceptions, and it
names.
names, and which will pass by
exceptions, namely, bank accounts is the duty of the executor to
It may also be desirable, under of the applicable state inheritance
operation of law to the survivor
and U. S. Savings Bonds. Assume prove that such facts bring the
certain conditions, to
take title taxes should be recognized and
upon the death of a co-tenant, is a
that A creates a joint bank ac¬ property within the scope of the.
to securities in joint names.
For weighed by the parties contem-;
familiar type
count for himself and B, but that A specific exception. Stated in other
example, if the amount involved plating taking title to property
of joint own/ \
-|
can recover all or any part of the
words, the surviving
co-owner
were
nominal, and made up the jointly with survivorship * rights.
ership. Bank
account without the consent of B. must be able to show that he or.
bulk
of the property
involved, The possible tax saving may be
accounts, U. S.
In this case, there is no gift to B she contributed to the purchase
probably
no
serious
objection nil or relatively unimportant and,
Savings Bonds,
until B draws on the account for price of the property in question.
could
be
raised.
Another case even if significant, may be out¬
stocks and real
his : exclusive
use
and
benefit. This may be difficult where the
could be where
the security is weighed by other factors.
estate are
There is then a gift to the extent contributions were made in small
purchased by a parent with his
commonly
The Federal Gift Tax
V
of the withdrawal.
amounts,
or
over
a
period of
own
funds, with the intent that
held in joint
Under
the
Internal
Revenue ' ;Where, spouses are concerned, years.
..
-y
sole
title to the security would
names — usu¬
As an illustration of certain of
Code, the term "gift" is broadly the rule may be otherwise. If the
ultimately vest in his child.
ally those of
construed. It includes every trans¬ state lawr permits one spouse, act¬ the above observations, the fol*
husband and
Some Questions to Be Considered fer of
money or property from one * ing
independently, to sever the lowing may be of interest. In this
wife. In a great
Probably most persons who take person to another, made without cotenancy, a gift has been created situation, the facts of which are
many
cases,
title to property in joint names adequate consideration in money presently of one-half the value of familiar to the writer, the hus¬
thebulkof
do so without recognition of the 'or
money's worth. Accordingly, the properly.
But if under the band-spouse died a resident of
the total as¬
Leroy A. Shattuck
various factors which may be in¬ the tax applies to all gratuitous law there are no separate rights Pennsylvania.
An inventory of
sets owned by
volved. They may act on the ad¬ transfers
of
property,
whether of severance in either spouse, a his estate, for Federal estate tax
husband
and
vice
of the securities salesman, real or personal, tangible or in¬ different, rule
applies.
In this purposes, included some $75,000 of
wife are held jointly with right of
or on that of the cashier or teller
tangible.
The gift tax is not, a case, there is an immediate gift U. S. Treasury bonds held jointly,
survivorship.
And the value of
of their local bank. In other cases, property tax but is, like the estate of property, the value of which with
his
surviving wife.
Pre¬
such property is not only very
it is on the advice of a relative tax, an excise tax imposed on the is reduced by the yklue of any sumptively, this amount would be
great, but apparently is increasing
or
trusted friend.
In still other donor's transfer of property dur¬ present and future interest in the included in his estate, and had to
in amount.
instances; they may act on im¬ ing his lifetime.
Schedule E of
property retained by the donor be reported in
The Brookings £tuily of Sharepulse, without giving the matter
Certain gifts are exempt, such spouse. It should be remembered, Form 706 (Federal Estate Tax Re*
Ownership in the United States,
any serious
thought whatsoever, as those made to the United States, of course, that we are concerned turn). The actual facts'Were that
published in 1952, revealed that
believing apparently that there is states and local governments, or only with transfers of interests the deceased spouse had contrib¬
the incidence of stock ownership
no other acceptable alternative.
to religious, charitable, or educa¬ made without adequate considera¬ uted nothing to the purchase of
increases substantially as personal
Certain
of
the questions
in¬ tional institutions. In
these bonds.
The total purchase
addition, the tion.
incomes rise. The 1956 Census of
volve tax considerations. No doubt
donor may make gifts for $3,000
In
the case of U.
S.
Savings price was provided by the sur¬
Shareowners, a survey sponsored it is
deplorable that tax consid¬ or less each year, free of tax lia-„. Bonds which are
registered in viving widow, and represented the
by the New York Stock Exchange, erations should dictate or influ¬
bility,
to
as
many
individual: joint names, there is no gift until proceeds from the sale of certain]
substantiated these earlier find¬
ence
the choice of alternatives,
donees as he chooses. This is the the non-contributing owner cashes farm lands actually owned by her
ings. The study also indicated that but where the tax bite is wellannual
exclusion.
Furthermore, in the bonds, and uses the pro¬ in Illinois. The sale had occurred
joint ownership showed a signifi¬
nigh confiscatory in
the upper the donor has a lifetime specific ceeds for his exclusive benefit. several years previously, but the
cant
increase
over
1952.
Quite
brackets, and not unburdensome exemption of $30,000 which, when The reason there is no
executor was able to prove, after
gift until
likely, a contributing factor has in the lower
brackets, they should exhausted, is
considerable work and expense,
gone forever.

held in two

Property

joint

held

should

more size,

...

the

been

exclusion

the first $50

ship) of dividends
the

this

tax

from

not be ignored.

($100 if joint owner¬

Interna]

implications to be consid¬
ered.before taking title jointly in¬
clude the following:

provided by

Code

Revenue

1954.

Undoubtedly, the total value
jointly owned property, includ¬
ing real estate, is greater today
than
ever
before.
Hence, it is
proper to review periodically the
advantages,

Some

particularly

and

disadvantages,
ownership.
I
'
■

such

the state inheritance tax laws?

of
•

Advantages

Jointly owned
property with
right of survivorship passes auto¬
matically to the survivor, by oper-

property
the

upon the death of a

owner]

joint

The result is that
held does not fall into

estate

die.

the

co-owner

it avoids

Thus

the

first

some¬

times complicated and lengthy ad¬
ministration. of
the
estate, and
fees

the

avoids

What will be the effect of

(3)

and

legal

costs

sequent
the

events,

time,
to

dure

may

it may be quite

cases

For example, the husband
desire that the family resi¬
dence pass directly to his widow

names.

may

his

death.

But

this

even

ar¬

rangement would not be desirable
under all circumstances.
cases,
to

accounts

In other

securities

be taken jointly. The typical joint
bank account permits either coto

owner

Such

draw

account

venient way

the ' account.

can

con¬

of handling funds of

modest

size.

viving

spouse,

Moreover, the
most likely

sur¬

the

widow, will have such funds im¬
mediately

available

her.

But

it doesn't follow that all bank

counts, regardless

purpose

ac¬

with

survivorship
bank

accounts,

other

unwise.

most

sub¬

for

event

tributing"
bank

with

co-owners

rights,
to B

generally

survivorship
there is a gift

same

in neither

the

will

co-owner

cash in the

the

bonds. Thus

non-contributing
receive any of

ever

general,

when a
takes title to

however,

contributing owner
securities in his

another

who

name

(whether

does

not

and that of

spouse

not),

contribute

the

purchase price, a gift is made, and
gift tax liability may be involved.
The

rules

in
in

the

are

for

valuing

property

are

different

forth

set

Treasury Regulations, and
cases

many

somewhat

the

computations

involved.

any

event, it is important for the party
creating the joint interest to
recognize

of one-half the value of the

property

property. Where spouses are con¬
result in cerned, however, the rule is dif¬
to awk¬ ferent. If the transfer creating the
results not foreseen at the joint interest was made prior to

that

transfer

such

that

may

result

gift

The inheritance tax statutes of
the

several

ably.
state

states

vary

consider¬

that

the

funds

not

fur¬

Consequently, the impact of ately. In other words, prior to the
death
duties
on
jointly change effected by the 1954 Code,
taxable

property will depend spe¬
cifically on the applicable state

laws involved.

the

owned

property,

the

case

of personal

applicable

state

made

gift

by the

Since Dec.
rule applies.

of the decedent.

take

Where real estate

involved, it will be those state

would

spouse

have

been

who supplied

purchase funds.

laws will be those of the domicile

were

nished by the spouses proportion¬

title

real

jointly owned property
included ini the estate

tenant first to
extent

estate

co-

there

die, except to the

part

(or all)

of the

The executor who claims

cluded from

ex¬

the deceased's estate

has the burden of

proving his con¬
value
joint property is fully tax¬

tention.
of the

laws of the situs of the real estate.
In some states, the ownership

ceased

such treatment at the time. If such

the

property jointly with survivor¬

must

of the joint

such property should

is no transfer of
property for gift tax purposes un¬
less the purchasing spouse elects
owners,

that

tenant.

able

the

otherwise,
could

In other words, the
the

extent

co-owner

that

the

contributed

de¬

purchase of such property, or

been

widow

possible

properly informed of the
consequences

entire

avoided

been

surviving

the

had

the

and

have

could

result

But

been

matter

at the time she ac¬

quired the bonds.

paragraphs per-,

The above few

taining to the relationship of the
Federal
estate
tax
and
jointly
owned
the
A

indicate

merely

property

general nature of the problem.
complete treatment is be¬

yond the scope of this paper.
The

Marital

Deduction

generally known, the In¬

As is

for

property belonged to another joint
that

31, 1954, a different
Now, where spouses

did not pass into litiga¬

issue

ternal Revenue Code

The Federal Estate Tax

that

strong

sufficiently

the

tax

Fortunately, the facts were ap¬

vided

may
lead

the

parently

liability.

death in the

family,

be excluded from the estate of

decedent husband.

tion.

the funds.
-

however,'that these bonds should

is there any assur¬

case

that

ance

con¬

may

owner

account

kinds

the

occurs

joint bank accounts: the

Apparently, many people still
earlier time.
Jan. 1, 1955, and if the law of the have
the
impression that joint
of
the
realty
The more important of the vari¬ situs
prevented ownership of property avoids the
severance by either spouse acting
ous
Federal estate tax. However, this
implications
pertaining
to
jointly owned property With right alone, then a gift was made as belief is entirely erroneous. It is
of survivorship will not be dis¬ valued actuarily according to the
presently the law, and has been
life expectancy tables.
cussed.
•
This as¬ since the original estate tax pro¬
|
sumes, of course, that one' of the vision was included in the Reve¬
State Inheritance Taxes
spouses furnished
all the funds, nue Act of 1916, that the value of

it may be suitable for title

bank

not foreseen at
show such proce¬

sequent divorce,

ward

hold property in joint

where

case

Other considerations include the

circumstances

In certain

is particularly
jointly owned
property is concerned, and which
is now the subject of comment.
The taking of title in joint names
the

recognition that taking title 'to (A) Gifts Involving Real Estate
Whenever A
property in joint names normally
purchases realty
places it outside the sole control with his own funds, and has the
of either co-owner, and that sub¬ title conveyed to himself and B

immediate

feasible to

This

complicated.

incident to such administration. It

advantage of consid¬

implications of such gifts are
numerous
and
sometimes
quite

estate,

Can the provisions pertain¬

also has the

erable convenience.

tax

rights, to real
securities
property, may involve
ing to the marital deduction be gift tax liability.
Probably this
fact is hot generally recognized,
applied most effectively?
(5) What will be the impact of particularly where the interests
taxes on capital gains. And losses?
created are between spouses.--

the Federal estate tax laws?

(4)

Possible

atiojn of law,

What gift taxes, if any, will

(2)

be involved?

the

type

What will be the effect of

(1)

technicalities involving the

The

Tax

for

Federal

of 1948 pro¬

"marital

deduction"

tax

estate

purposes

respect to property passing
to
the
surviving
spouse.
The
amount of such deduction cannot
with

exceed one-half the

adjusted gross
and

estate of the decedent spouse,

qualify for the deduction cer¬
be met. If
met, roughly
one-half of the decedent's spouse's

tain requirements must
all requirements are
estate
spouse

can

pass

It is clear that

owned by spouses
marital
not

the surviving

free of the estate tax.

qualifies for the

deduction.

mean

that

property jointly
But

this does

jointly

owned

is in a preferred posi¬
respect to the marital
deduction.
In fact, jointly owned
property
tion

with

property may result in an increase
in total tax liability.
To qualify
for

the

marital

deduction,

tlie

surviving spouse must receive an
interest that will be taxable in

Volume

187

Number 5734

The Commercial and Financial Chronicle

(1731)
his

her estate.

Assume that the

eluded

such

husband is $500,000, that all
prop¬
erty is jointly owned, and that the
widow made

ment

for acquiring title to prop¬
erty jointly.

estate, the
accordingly.
That is, to the extent that any of
the property is included in dece¬
dent's gross estate, the new basis

widow

survives, and that the

justed gross estate of her

basis

ad¬

deceased

contribution to it.

will

the

Of this amount,
one-half, or $250,000, qualifies for the marital de¬

value.

duction.

from

the

The estate of $500,000,
less the estate tax on $250,000
(as
reduced

deductions

any

gross

split

survivor

the

property

decedent's

Conclusions
In

appraised

To the extent that any

joint

ages

excluded

the

estate,

set forth

the

above, there is

basis

over

one's

A will is ineffective

property.

jointly

owned

property,

and

with respect to such
property, es¬
tate planning may be precluded.

operation

All things considered, it appears
that the provision in the 1954 In¬

If the widow
survives her husband by 10
years,
all of her estate then

ternal Revenue Code affecting the
tax treatment of capital gains and

Where spouses are involved, state
laws generally prevent severance
of his interest by one spouse with¬

losses

out the consent of the other.

exemptions),

passes

of law to the widow.

remaining
subject to the applicable
prevailing estate tax rates. If she

will

reflecting the number
of

years

survival,

estate.

dies

paid
the

within

credit-is
ceased

offset

surviving

two

100%

imposed

conditions

modest

bank

account, the family home,
possibly a few securities. In
the past, in a more simple
era,
joint ownership with right of sur¬
vivorship, became to a large ex¬

become

customary.

But

times

(Special to The Financial Chronicle)

SAN

changed,

and
certainly
placing
title
in
joint names should no
longer
be
done
automatically,
without thought or regard for the

erations

may

should

(this change in th%

code, while probably improv¬

ing the lot of the surviving tax--

many

not in itself be

instances,

would

important argu¬

and

joint
interests
title
is
taken

are

gift tax consid¬
then be a factor.

Where property is owned jointly,
is only the survivor that has

any

control

over

the ultimate dis¬

position of the property.

possible
title

have

may

FRANCISCO, Calif.—Wil¬

liam H.

Magruder is now affiliated
with William R. Staats &
Co., Ill
Sutter Street. He was
with J. Barth & Co.

Taking

consequences.

property jointly

serious.

With Staats & Co.

have

names,

But

the

and

tent

»
advantages of
ownership as now

exist, will become less important;
while the
disadvantages of own¬
ing property jointly will steadily

sult in the payment of taxes that

where

whatever

form

The tax

the

(Special to The Financial Chronicle)

been

avoided, and
SAN FRANCISCO, Calif.—Hilmay have the ultimate result of burn M.
Chesterman, Henrik G.
affecting adversely the welfare Wollter and
George E. Wurzburg
of the .families concerned.
have joined the staff of
the First
It is submitted that in the years

Sierra

Corporation, 98 Post

de¬

credit

subsequently reduced by 20% for
each successive two-year period.
On the other

decedent

hand,

suppose the
had owned all

husband

property

in his own name.
He
could have given $250,000 outright
by will to his widow, this amount

qualifying
marital

for

the

deduction.

maximum

The

other

$250,000, less the estate taxes, de¬
ductions and exemptions, he could
have willed in trust with the in¬
"to

come

the

widow

the remainders
tate taxes

levied

the

his

the

estate

would

total

which she Owned

at the time of her death.

suit

es¬

portion
passing
the state taxes

trust;

widow's

the property

life, with

Thus the

his estate would be

under
on

for

over.

The

re-

normally be that the

estate

taxes

would

con¬

siderably smaller than when all
property,
or
substantially
all
property, is jointly owned by
spouses.
In any event, it seems
that the joint ownership of prop- ?
erty by spouses, with respect to
the marital - deduction, does
nothing to decrease the total lia¬

bility for estates taxes.
the

is the

reverse

Actually,
probable

result.
i

....

Capital Gains and Losses

Prior

the

enactment

the

Internal Revenue Code of 1954,
there Were serious income tax im-

plications with respect to jointly
owned property. Briefly stated, if
the joint owner died on or before
Dec. 31, 1953, the basis of property
to the surviving co-owner was its
Original cost. During periods of
generally rising property values
the effect of this provision could
quite detrimental to the sur¬

vivor.

For instance,

real

estate

say,

$10,000.

(or

jointly owned

Shown at right, the

other

76-pound eiectroformed copper mold in which the beautifully detailed, 28" vinyl plastisol hobby horses

are

cast. Mold is made by Plated Moulds, Inc., Yonkers, N. Y.

property)
may have been acquired in 1940 for

For inheritance and

estate tax purposes, assume it was

appraised

$20,000

ers.

Let

the

property

further

death of the first of the

the

co-own¬

that

assume

subsequently

was

sold

New kind of

by the survivor for $30,000.
The basis for computing the cap¬
ital

gain

have

would

been

$10,-

000, the original cost. Obviously,
during periods of rising property

influences the shape of things to come

values the effect of this provision
was to increase capital
gains, and
the taxes thereon. During periods
of

falling values

certain

could,

"Plus-4"®

under

conditions, have the effect

the

of reducing capital losses.

The
1954

Internal

losses
vors

Revenue

modified

treatment
with
of

where

Code

considerably
capital

respect

gains
the

property

decedent's

In the

ex¬

ample

just cited, if all of the
property had been included in
decedent's gross estate, the basis
to the survivor would have
been

$20,000.
If only a part of
jointly owned, property .is

new

horizons in

The

AnacondA
Company

anodes of pure copper—which were long
accepted as the ultimate.

death, to the extent- that such
property was included in the gross
estate of the decedent.

exciting

production of intricately shaped precision parts.

acid-copper plating (and at substantial savings) than is possible with

survi¬

owned property,
decedent
died
after

jointly owned property obtains a
new basis,
namely, the value of
the

revolutionary metallurgical

Anodes, copper is alloyed with controlled percentages of
phosphorus and other- elements. The result is faster, more uniform

and

jointly
the

mass

In "Plus-4"

the

Dec. 31, 1953. Pursuant to the revised provisions, the survivor of

Copper Anodes—outgrowth of

development by. Anaconda—have opened

the

in-.

•

Already "Plus-4" Anodes have demonstrated their advantages from
the

electroplating of highly complex radar and microwave

nents of copper to the

smooth

compo¬

electroforming of molds for casting velvety-

•

-*v

•

The American

tough

production

problem

industry, and intimate
offer

awareness

v:v

Company

Coble

Company

Chile Copper Company

Like many other Anaconda products, "Plus-4" Anodes were
perfected

working

Andes Copper Mining Company

vinyl plastisol hobby horses by Plated Moulds, Inc.

Anaconda customer. Largely through this kind of

Brass

Anaconda Wire &

Greene Cananea

while

submitted

partnership with

of its needs, Anaconda is able to

Copper Company

Anaconda Aluminum Company
mM

Anaconda- Sales
International -

Company

;::

Smelting and

Refining Company

exceptionally broad and versatile line of non-ferrous metals

and mill products.

;

previously

Three With First Sierra

re¬

tax

the estate of

spouse.

most

limited

such

tax

estate

the

under
be

separate

payer

spouse

years,

of
the

the

should

severed,

tax

her husband's

survivor.

survives him by less than 10 years,
her estate will receive certain tax

estate taxes

Even

thafthe ahe&d,

appears

by the survivor of jointly
owned
property
will
result in
more equitable treatment for such

credits

summary^ it

Certainly
disadvant¬

also the loss of control

to the survivor remains its cost.

and

addition

advantages of owning property in
joint names are greatly overrated.

311

58252-B

Street.

The Commercial and

Financial Chronicle

Thursday, April 17,

1958

(1732)

billion for taxes alone.

Foieign Trade Program's Relation
To Private Foreign Investment
York City

President's trade program are told they^are

Opponents of

nationalism" neither justified by ''our

pursuing ^'retrogressive

national interest." They are also advised
that "in the last analysis foreign investment is foreign trade. ,
Mr. f)verby warns that any action on our part to lessen foreign
efforts to sell on a competitive basis to us jeopardize our in¬
vestment pattern, domestic employment and, in turn, might
experience

well

our

As
as

continued

the

foreign investment brings to our
friends abroad as well as to us.

and

strength of
economy and
the

omies
free

growth
free

dynamic

and

banker

investment

citizen-deeply interested in

own

our

econ--

the

world,

very

pleased to
support the
President's

the story

not tell

statistics do

for at least two reasons.

vestments

represents

the

program—with

trade

the

and

would toe

flow

free

investment—

private

of retrogres¬

program

sive nationalism.

world

It would not be

justified either by our experience
or
by our toest national interest.
Such

restrictive

looking

program

inward-

and

would

lead

subsidized production rather
than less. It would lead to more,

rather

than

less, burden on the
and on the taxpayer in
higher prices and greater foreign
consumer

aid.
the

It would lead

away

from

higher standards of living

all seek. And it would reduce
own

economic

dom, to
ful

say

and

we
our

strength and free¬

nothing of its harm¬

divisive

effects

interna¬

tionally.
Aids International Investment

My remarks in support of a lib¬
trade policy and expanded
private foreign investment will be
eral

concerned

particularly

with

the

Foreign Trade Program and its re¬
lation to foreign investment. For¬
eign trade and foreign investment
are, of course, essentially insepa¬
rable.

We cannot have

international

healthy

flourishing

investment

and

without

expanding

trade

which enables the capital-import¬

ing countries to

grow and develop
and to pay interest and dividends
and ihe return of capital on the

investments obtained from abroad.

Before considering more partic¬

ularly the relation of foreign in¬
vestment to foreign trade, how¬
and before elaborating the
reasons for
supporting expanded

ever,

international

trade, let

investment

indicate

growth and present

foreign
some
*An

the

address

and

briefly the

scope

of U. S.

and

suggest

advantages

private

investments

Mr.

Overby

before

National^ Conference of Organizations
International

C., March

Trade

27,

Policy,

investment
available
in the
of

volume

large

Washington,

1958.

record

particularly look at the
prospect of the

will

contribution
and

the real value

probably

lies

the flow

their

of ideas

enterprise and managerial and

technical

skills.

the

For

flow

capital abroad means the flow of
ideas abroad. It brings with it the

dynamic zeal and creativeness of
American productive enterprise. It
is a catalyst which ferments and
stimulates greater initiative, bet¬
ter methods and higher production
and trade—more jobs and higher
living standards abroad. (And let
it be said forthwith this helps the
U.
S.
in many ways—including
more demand
for our goods and
more
jobs in America. The best
customers for American goods are
Canada, Great Britain and other
developed economies with rela¬
tively high standards of living
even though they may also be our
industrial competitors in some
goods.)
U. S. private foreign investments
bring many other advantages to
our
friends abroad.
A revealing
study has been made by the U. S.
Department of Commerce of the
operations of U. S. companies rep¬

resenting 90% of
vestments
Latin

our

over

America.

billion
study

in
has

tionships

assess

Any U. S. action which tends to
or
restrict the ability of

limit

on equity
will want to

capital

return

ments.

see

payments.
He
at
countries
consistent record of ex¬
restrictions on trade and
foreign

make

askance

look

with

tensive

international payments

signed, on the one hand, to expand
U. S. foreign trade abroad and, on
the other hand, to make it possible
foreign countries to sell in the
United
States on a competitive

for

basis.

Foreign investment, with all of
values it has for the U. S.

the

and coun¬

which

reasonably

made,

These

companies

inely alarmed—and perhaps with

vestor

about $3 billion of goods and serv¬
ices for use in Latin America, and

has

about $2 billion of dollar exports
from Latin America. '
"
/

(2)

These

companies

produced

try,
to

the

kets
will
the

will

concerned

which

the

country

concerned
can

to whether

sold in

the

direct

controls

policy is a policy
cohesion among
A protectionist
and restrictive policy is a policy
of economic weakness and divi¬

vate investment

strength
free

the

1955 in Latin America
lion for wages,

paid

over

$4 bil¬

salaries, taxes, and

denied
market

could

access
or

to the United States

other

produce

markets

the

which

needed

ex¬

and

nations.

the free nations. If
the principles of
freedom which we preach, the re¬
sult could well be much greater
economic autarchy and weakness,
sion

among

don't practice

political bickering and divi¬
among the nations of the
world.
Only the Russian

and
sion
free

leaders could welcome such a de¬

velopment.
the

said

President

his

Foreign Economic Policy Massage
to the Congress in March, 1954,

advocating a program of ex¬
panding trade and investment and
greater convertibility of curren¬
in

cies:
"If
we

tic

fail in

trade policy,

our

may fail in all. Our domes¬
employment, our standard of

'.living,

security,

our

the

and

solidarity of the free world
all are involved/'

—

Joins Edward D. Jones
(Special to The Financial Chronicle)

;ST. LOUIS, Mo.—Emil
has

H. Nebel

joined the staff of Edward D.
& Co., 300 North Fourth

Jones

Street, members of the New York
and Midwest Stock Exchanges.

The U. S. record on trade
is

policy

relatively good one—with a

history

direction.
Because

progress

We
our

With Curtiss, House
(Special to The Financial Chronicle)

the right & Co., Union Commerce Building,
keep it so. members of the New York and
has been a 'Midwest Stock Exchanges.
'

record

relatively good one, we have had
the moral basis for urging other

Joins Donald Sloan
(Special to The Financial Chronicle)

cade

mental controls exert strong pres¬

with

sures

and

for

believers

protectionism and for a

Ore.

PORTLAND,
Rotolo

has

joined

—

the

Leonard
staff of
Cas¬
formerly

Donald C. Sloan & Company,

govern¬

groups

»,

CLEVELAND, Ohio—Russell H.
Smith is now with Curtiss, House

should

foreign exchange income to United States or in other markets
America of over $2 billion which
could
ultimately produce countries to make further prog¬
billion more than the total the dollars required to service his ress toward economic freedom by
exchange required by these com¬ investment. If he is fearful that reducing their trade controls and
panies for their operations and for protective or other reasons the exchange restrictions. Real prog¬
remittances.
products of the country may be ress has been made. But -special
companies

impede the
increased

make for

production, more jobs and higher
incomes. A liberal trade and pri¬

—$1

These

only

can

which

forces

Latin

(3)

form

restrictions to

expanded flow of international
and
capital. ' Tariffs and
restrictions and exchange

v.*

Policy

to other mar¬
commercial basis.
He

products

Must Continue Our Trade

in¬

its exports

for

also

access

American

the

however,

of tariffs and other

the

interference

mental

reason.

In
judging the foreign trade
produced potentialities of the foreign coun¬

about $5 billion of goods and serv¬
ices in Latin America in 1955—

trade

with

and

mutual advantage.

only be done if we have
minimum of hampering govern¬

trade

change

vestment^ mght"

based

tion

for

economy
and
for our friends
a
bad record of ex¬
abroad,
will
be encouraged if
controls, discrimination we continue the President's pro¬
against
foreign investments,
or
gram for expanding world trade.
other
behavior
or
impediments
Great
progress
has been made
unfavorable to foreign investments
since the war in freeing interna¬
and to the reasonably free flow of
tional trade and payments from
trade and capital.
restrictions and in encouraging a
The American
investor before
healthy growth • in international
going abroad will look closely at investment in more
production and
a
country's internal and external
more jobs for the benefit of all of
economic and financial position.
us.
As many of us know from
Of key
importance will be the
personal experience, however, it
outlook for its foreign trade. If he
has not
been
easy
to convince
can see that the export industries
other countries of the desirability
of the country produce efficiently
of reducing barriers to trade and
and are able to sell their product
payments. Much of the American
on a competitive basis; if he finds
strength in promoting this policy
that the economy is not being ar¬
has come from our own record of
tificially protected from outside
progress in trade policy. But many
competition by governmental con¬
of our friends abroad remain du¬
trols and restrictions; if he notes
bious about the long-run trend of
the presence of political and fi¬
our commercial policy.
They have
nancial leaddfs who .understand
constantly been alert for signs of
and support the need for realistic
a revival of strong protectionism
monetary and fiscal policies, then
in this country. In prior years they
he is likely to feel that he is deal¬
may have seen ghosts of protec¬
ing with a country in which the
tionism where in reality they did
foreign trade outlook is basically
not exist. But today they are genu¬
foreign in¬

tries

through interna-

resources

our

and use

tional^specialization and produc¬

cies makes poorer

shown, among other things, that:

(1)

curren¬

the environment
flourishing private investment.
The private foreign investor has
a
direct and immediate interest
invest¬ in U. S. governmental policy de¬

which

other convertible

allocation

efficient

This will

lars

world will achieve the

We and the
most

abroad.

United States and

the

its capacity to
earn foreign exchange with which
it can
provide dollars to make
payments on its international in¬
debtedness or remit dividends and
country

rapidly expanding population

the

countries abroad to earn U. S. dol¬

business in¬ sound

This

we,

And we

the most.

trade and financial

private foreign investment
will
friends abroad. Their great¬

value

est

invest most where we trade

its resources, and its
international dealings.

concerned,

our

invested

have

where

countries

those

with

minimum degree

most.
About 85% of our private invest¬
United States.
In going abroad the American ments abroad are in Canada, Latin
investor assesses the political and America and Europe where we
social
stability of
the
country have our most active trade rela¬

economy

do not convey

achieving a world
system with a

succeeded

trade and financial

investment

Foreign

years.

expanding its
Supports Flow of Ideas
production and international trade
But even these very large fig¬
and increasingly showing capacity

policies advo¬
the Presi¬
increased ures
tariffs and quotas and other bar¬
of U.

riers

strength

friends abroad, some men¬

opportunities

the

cated by opponents of

dent's

and investment—which would be

effect

picture

development and

our

the book
mutually
value of the private direct invest¬
beneficia1
ments abroad, many of which were
basis.
For I
made years ago at lower prices.
Andrew N. Overby
am
firmly
The replacement or market values
convinced that
of private investments abroad
a
program
of expanding and would be substantially higher than
flourishing world trade and in¬
$36 billion—possibly $50 billion or
vestment is the best program for
more.
Moreover, if we include the
continued dynamic
growth and
capital expenditures financed out
strength for the free world, with of
depreciation and development
ever-widening job opportunities reserves of our foreign companies,
and higher
standards of living the
gross investment by Americans
under economic freedom.
I am
abroad during the years 1956 and
equally firmly convinced that a 1957 was
probably at a rate of
program of more restricted trade
over $5 billion in each year.
the

brief

First, about two-thirds of the fig¬ American investors compared with
ure of $36 billion for private in¬

invest¬
on

these

But
■

trade

ment

totaled about $3.5

billion in each year.

for
expanding

and

investment

billion. By 1929
this had increased to over $15 bil¬
lion.
At present it is about $54
billion, of which over $36 billion
represents private investment. In
the years 1956 and 1957, U. S. net
private investment abroad reached
the
unprecedented record of $3

program
world

1914, U. S. foreign

the

bolster free world econ¬
Communist imperialism.

edly would compel more foreign aid to
omies against aggressive expansion of

Reciprocal

of governmental
to a interference we shall not enjoy
great extent takes the form of the that full measure of progress in
tion should be made of the rela¬
export of capital goods from the economic growth and strength of
tion of foreign investment to for¬
United States—oil drilling equip¬ which we and the free world are
eign trade. They are, as I have
ment, road construction machin¬ capable.
said, essentially inseparable.
ery, electric generators, steel pipe,
Looking at the trade question
trucks, and other machinery or from the viewpoint of our broad
Investment Prerequisites
machine
tools.
Moreover,
for¬ national interest, two main points
What does the American inves¬
First,
tor look for when he
makes a eign investment produces a need seem to me quite clear.
and
desire
to
conduct
further American
exports create far more
foreign investment?
The foreign
trade with the United States, not
investor is like any other busi¬
jobs than are assured by erecting ;
only for additional machinery and tariff barriers.
Second, trade is
nessman.
His
primary
concern
replacement parts but for a whole necessarily a two-way street. We
must be with the security of his
range of commodities whose de¬ can
only maintain our exports and
investment, with its profitability
mand results from the initial in¬
expand our exports if other coun¬
and with his right and ability to
vestment.
;
tries are given a fair chance to
receive readily in dollars a satis¬
It is thus not surprising to find sell in the American market.
factory income and the return of
that the pattern of U. S. trade is
his capital.
To obtain American
We need expanding interna¬
capital, foreign investment oppor¬ closely parallel to the pattern-of tional trade and investment to
U. S. investment.
We trade most make more and better jobs * for
tunities
must
be
attractive to
to

investment

restrict.ionism in all
If the United
States

retreat on its

Investment Is Foreign ■* Trade Agreements Program, it
Trade
•
v ~
~
might well be the signal for a re¬
economic nationalism
There is some tendency to think vival of
of foreign investment in financial which would lead to lower levels

the United States in 1956 and 1957
ments
and
of
the
contribution
which these investments can make w|ts £ major source of financing
for our record
exports in those

revival of economic nationalism abroad. The
banker warns, further, that such a trend undoubt¬

signal

countries.

the
terms.
But in the last analysis of world trade and production and
role of private foreign investment
foreign investment is foreign seriously impair American foreign
in developing economies abroad,
trade.
Foreign investment is fre¬ trade and foreign investment. This
creating jobs, producing goods and
quently
translated
immediately would undoubtedly lead to even
wages and tax revenues, and pro¬
into demand for U. S. goods and greater demands for; foreign aid
ducing foreign exchange for in¬
services and thus contributes di¬ to bolster faltering economies in
creased purchases of goods from
rectly to the prosperity of the the free world struggle against the
the United States.
American economy. The remark¬ aggressive expansionism of Com¬
With this brief indication of the
able rise in capital outflows from munist imperialism. Until we have
magnitude of our foreign invest¬
This

Boston Corporation, New

retreat

•

States).

much

Foreign

600,000

United

were

These companies employed
persons
(of which
only about 9,000 were sent from
the

will

reluctant to make the investment.

...

(4)

over

N. OVERBY*

By ANDREW

Vice-President, The First

change,

services—over $1

local goods and

Building.
the

Salem

Goodwin

was

office

Co.

Chas.

Volume

Number 5734

187

The Commercial and Financial Chronicle

(1733)
walk
not

the

have

moon.

They would

shoot

with

rockets.

Securities Salesman's Corner

And

•

fall.

then

The

what

happened

vocal

Public opinion is often molded
by those who command the press,

•/

the

radio, the public forums, and

television.
have

Commentators

sprung

have

followers

during

decades

two

numbers

who

the past
increasing

ever

collected

millions

who

unashamedly
and eagerly follow their opinions
on
almost any and all subjects
dealing with economics, and poli¬
tics in particular.
We have be¬
come

nation

followers
for

who

ourselves,

make

our

before

longer think
for facts, nor

ask

our

and

decisions.

history

If you would
unsound

bolster

period of overexpansion

and

prosperity, based upon an
armament boom such as the world
has

never

that

find

and

the

have

enamored

would

cadets

could

were

gouging

the Republicans

what

happened?

The

the people,

were

once

again

soak the

that he has to

means

have appointed
Joseph VostaL
are
doing and saying every day. Any Manager of the firm's municipal
bond department and Francis
P.
one
who bought bonds last fall
when thev heard the cry of the Gallagher, Municipal Bond Con¬

think

you

this.

The columnists and the
syndicate

bushwhackers

the

press,

radio, and the leftists of both poli¬
tical

parties

out

cry

John A. Hoff has been
appointed
Sales Manager in New

General

"Tight York.

OIL COMPANY

(INDIANA)

and Subsidiaries

their

Report

Earnings Steady in 1957; Dividends Paid for 64th Consecutive Year;

age

emotionalism,

Income

jumping

and

Tops $2 Billion for First Time

nerves.

The

New York City

sultant.

People believed

STANDARD

glibness and verbosity. It is
of
conformity,
gossip,

own

Kidder, Peabody & Co.
Appoints Three in

Kidder, Peabody & Go., 17 Wall
Street, New York City, members
alert not only to what is
going of
the New York Stoek
in the
Exchange,
economy but to what

vestor?

only steeped in their superficial¬
are

borne

right invest*

the

easily usurped by all sorts of
self-styled experts, some with an
ax
to grind; and others who are
and

the

Never

ity

made

the molders of public opinion

for all this while.

and

you

stack of paper upon which
space

have

going

poor,

future

will

help the rich and

our

that,

wild, extravagant buying,
building, and doing, that had been

out to

publicity staffs,

sort

same

banks

right
days of

are

Deal

clear sky

has

have

man

New

that people couldn't

poured
out
through
the
radio, TV and by govern¬

been
press,
ment

before,

seen

of communication become

avenues

gather

written

sudden out of

cheaper and cheaper money, soar¬
ing bond markets, deficits and
more spending
by the government

the

our children and
by ourselves in
buy higher and higher taxes and
homes, they couldn't build them, cheaper depreciating dollars.
all the they couldn't obtain credit for
What does this mean to an in¬

survive.

self-styled

single phrase,
"Tight money." That was the evil!

will accomplish in 1965,

1975, if

material

premolded

own

what

And

money,"

ment move.
If you are in the
securities business don't write
off
these present-day "oracles."

elsewhere

back

All of

changed.

and

exuberant

prosperity almost to
with

last

Potomac

over.

thinking

this

sound

Myths Men Believe and Live By

the

again put it

once

few weeks the

and

all

came

Some of the

Within
on

exponents
By JOHN DUTTON

boys had

this

great

age

deal

literary
the

are

with

columnists

personal

misdemeanors

models

and

who

private

the part of na¬

politics, the thea¬
sports/and other limelight
They command large
incomes from syndicated
articles,
they speak on TV and the radio,
they become authorities on
weighty matters far beyond their
ken, and even vie for honorary
tre,

activities.

degrees with politicians who have
claim

such

honor

than

they; and the public swal¬

lows

all whole.

Never

before

has this nation accepted so
many
unsound, and immoral dogmas as
we
do today, and the end is not
in sight.

than the domestic

number of concessions

drilling

program was

Has

This

With

duction

we were

natural gas
reserves

you

are

overwhelming

successful
of

maze

rumor,

fancy, and half truth that is daily
poured into the trough of public
communication by these opinion'

makers,

must

you

constantly
alert not only to the facts hut the
fancy that is daily motivating

people to buy, to sell, to
invest, and to take risks.

able to increase

ratio in unproved

success

proved

our

liquids, and of natural

year

save,

with $4.33

compares

outstanding shares

billion mark. This

pro¬

of crude oil and

due

average

$4.27. This

year, were

share in 1956, when the average number of

34,487,352. Total income for the

was

$2,029,689,000, the first time in

when industry

reserves

gas

charge resulting from
synthetic gasoline and chemicals plant at

our

Brownsville, Texas. Per share earnings, based

areas

Despite record

average.

reduced $5,886,000 by a special

were

35,520,999 shares outstanding during the

cent. A

acquired in Venezuela. Our wildcat

were

expanded. Our

year was

history it has passed the $2
in 1956, an increase

our

6.2 per cent greater than

was

products.

largely to higher

revenues

from sale of crude oil and refined

of crude and natural gas liquids declined.
DIVIDENDS. In line with

our
policy of paying dividends approxi¬
mately equal to one-half of earnings, regular cash dividends were
supplemented in the fourth quarter with a special dividend in

RESEARCH brought about important advances in 1957. The Ultraforming process was improved. Octane needs can now be' met with
a catalyst
containing only half as much plat inum as was previously
required. We improved our Isomate process for raising the octane

Standard Oil

Company (New Jersey) stock. Dividends paid, includ¬
ing the market value on date of distribution of the special fourthquarter dividend in Standard Oil Company (New Jersey! stock,

number of the

lighter portions of gasoline. We perfected a jet fuel
that will meet the needs of future types of supersonic
airplanes.
Research on greases led to a new line of industrial
greases far
superior to any on the market. In the oil finding field, advances were
made in the

amounted to $2.11 per share.

CAPITAL

for

tures

Greater

of primary

efficiency, cost

control and quality
in 1957. Our current objec¬
replace older and less efficient units where needed with

tive is to

were

larger, better, and

involved

the

purchase of concessions costing about

increase in net

borrowings, which at 12

per

cent repre¬

sent the lowest ratio to total assets since 1946.

automated facilities. More economical
Our

EMPLOYEES.

effective

■t

■

BORROWINGS. Our

$50,000,000 in Venezuela. These heavy expenditures during 1957

concern

operations and better products will result.
...

due

AND

capital expendi¬
increased substantially to $340,274,000. The

the year
was

paid in 1957 for the

were

EXPENDITURES

increase

improvement

Dividends

64th consecutive year.

high-frequency recording techniques. Royalty
licensing our processes was the highest in many years.
use

MANUFACTURING.

clients through this

your

per

results

abandonment of

the

Investment Business?

steering

industry gain of about 0.3

considerably above the industry

was

income from

What

of crude oil and natural
gas

liquids and of natural
gas reached record totals in 1957 despite the sharp decline in
domestic crude oil production when the Sue» «risis ended. Our
domestic production for the year was
up 4.3 per dfent, substantially
more

tional figures in

PRODUCTION

continuing efforts

control

costs by making
in 1957 to reorganize
sales activities and to streamline various other

use

our

manpower

led

MARKETING. The introduction of Gold Crown

parent' company

line and

parent company and affiliate functions. Thousands of our employees

territory

super-premium gaso¬
improved Red Crown throughout the parent company

great success, helping the parent company to gain
substantially in total volume of gasoline sold. Consolidated com¬
pany

was a

results for the

sales volume of all
for the

industry

year,

are

however, showed practically no change in
was about the same result as

Standard Oil stockholders. The

one

of the main factors in

STOCKHOLDERS at year

products. This
whole.

over

as a

loyal service of

our

employees

continued progress.

our

end numbered 148,400,

the year before. Our stock continues to be

increase of 5,200

one

of the 50-most

widely held by the nation's leading investment trusts. In number
What

Real—What

Believed

To Be the Truth—That Is the

NET

EARNINGS

$151,509,000,

our
consolidated Company in 1957 were
compared with $149,432,000 in 1956. The 1957

of stockholders, we rank eleventh among

rations and fourth among U.

all U. S. industrial
S. oil companies.

corpo¬

Question
This

into

subject could be developed
book.

look

when

far

But

nation such

don't

what

see

have

CONSOLIDATED

makes

its collective mind on any sub¬
ject because a few columnists and
politicians
have
access
to
the
up

avenues

the

extend

the public eagerly overwith debt; encour¬

itself

aged

every

the

hand by
salesmen

government, super
advertising agencies, and small

loan

companies.

nessed
and

year

after

have

year

government.

Hoover

Most

Commission

reports

-rusting and forgotten.
piled

upon

INCOME:

the

lie

Tax rates

detrimental to their expansion
growth that this same gov¬

rary

fancy name for tempo¬

tax exemption

that these

experts,

government

$2,010,114,857
19,574,222

$1,911,540,141

the stock

Net worth

Book value per

Purchased crude oil, petroleum products,
and other merchandise

Oj>erating, selling, and administrative

959,164,342

909,613,641

654,361,663

597,244,93 6

59,320,487

52,652.573

emer¬

gency facilities
Depletion, amortization of drilling and
development costs, and loss on retire¬
ments and abandonments.

104,164,438

.—

.......

■

93,943,392

59,538,133
9,397,389
26,348,000

62,119,970
9,368,824
36,478,000

Minority interest in net earnings of sub¬
687,095

—

Total deductions.... 1

special charge

$ 1,872,294,452

$1,762,108,431

157,394,627

149,431,710

abandonment of

line and chemicals

synthetic gaso¬
plant after applicable

tax credit

NET

EARNINGS

„

per day, net.
Natural gas, thousand cubic feet per day,

307,500

53.71

■

294,855

1,298,000

1,154,000
10,451

1,973

MANUFACTURING:
Crude

oil

and

natural

gas

liquids

essed, barrels per day
capacity, barrels
(year end)

proc-

•

648,076

703,500

662,676

664,046
29,890

1,391,315
341,594

per

642,343

714,000

29,870

Crude running

1,264,370
336,930

175
17,370
156,500

250
17,480
156,400

day

MARKETING:
Refined

products sold, barrels

per

day..

Retail outlets served

Tanker

5,885,602
$

day
Crude oil

sold, barrels

per

day

TRANSPORTATION:

151,509,025

and

barge

traffic, million barrel

miles

149,431,710

86,120

Employees (year end)
Wages and benefits

market have
are

available

request.

Chicago HO, Illinois.

t "Dividends paid" include the value
Write Standard Oil Company, 910 S. Michigan Avenue,

94,870

148,400
49,680
370,100,000

143,200

PEOPLE:
Stockholders (year end).

Copies of the 1957 Annual Report

94,070,000
2.91,900,000
2,425,000,000
1,900,000,000

10,722
2,085

Pipelines built, miles
Pipelines owned, miles (year end).......
Pipeline traffic, million barrel miles

Special charge:
Loss

2.307

Natural gas sold, thousand cubic feet per

sidiaries

Net earnings l>efore

55,360,000

Oil wells owned, net (year end)
Cas wells owned, net (year end)

from customers for government

Interest expense;
Federal taxea on income

4;33

56,300,000
2.110
$
95,210,000
$ 340,300,000
$2,535,000,000
$2,012,000,000
$
' 56.26

$
$

net

including taxes amount inelo$361,380,000
in 1957 and $326,779,000 in 1956 col¬
agencies)
Depreciation, and amortization of

1,912,000,000
>*149,430,000

4.27

Crude oil and natural gas liquids, barrels

ex¬

penses

State, local and miscellaneous taxes (not

lected

PRODUCTION:

been

Total assets..

DEDUCTIONS:

economists,

telling the American people
the
economy, is sound; this is real
prosperity; and wait until you see

.........

21,312,508

politicians and people "who write
letters

$1,890,227,573

$2,029,089,079

1956

$2,030,000,000
$ 151,510,000

NetearningspcraverageoutstandingHhare
Dividends paidf
Dividends paid per share!
?
.*
Earnings retained in the business......
Capital expenditures
'
..

Total income.

same

corporations could not only
expand but overexpand their ca¬
pacity.
All
this
while
market

Total income

1956

.........

Dividends, interest, and other income

passed
laws
providing
accelerated depreciation,
a

FIGURES
1957

V".

corporations have been

and

which is

FINANCIAL:
.

Sales and operating revenues..

ernment

for

STORY

EARNINGS

Net earnings

wit¬

1957

waste

extravagance in Federal and

state

turn

STATEMENT

For the Years 1957 and 1956

fall.

watched

Take

sudden

in Federal Reserve policy
For years we have

around

last

communication.

case

THE

happens

as ours

52,010
358,600,000

this Company's books of the Standard
Oil Company (New Jersey) stock distributed as a dividend. "Dividends paid
per share" include the market value of the Jersey stock on date of distribution!
on

Financial Chronicle

The Commercial and

Thursday, April 17, 1958

(1734)

34
i
.

Market — Vast, Vital, and Voluminous

The Over-the-Counter
Continued from

Counter Market is many

While about 2/3rds of all

government obligations. Issues of such
companies as Stanrock, Northspan, Stanleigh,
Pronto and Algom all enjoy an Over-the-Counter

direct,

first page
times as large and, while

pedalled from a public relations viewpoint,
actually a far more dominant factor in our
economic life than the sum of all listed markets.

soft

held

-life

Market.

the daily spotlight but the indispensible
financial staging and scene shifting is done in
the Over-the-Counter Market. The listed market

Greater

These get

graduate school that only admits "over the
graduates! For example, not over 3,200
issues are traded daily on all major exchanges,
whereas over 90,000 securities have an over the
counter "home"; and 8,000 to 10,000 are quoted,
if not traded, each business day.
is

counter"

The panorama of securities traded in the
the-Counter Market is as fascinating as

look at bonds first. What

Over-

it is
interests

you? Governments? Over 95% of all government
bonds are traded in the "counter market," and

these

big government specialist houses think noth¬
ing of making a firm bid on, or offering of, mil¬
lions at a time. Virtually no municipal bonds are
listed and the huge purchases of these made

regularly by our biggest financial institutions are
all concluded oyer the counter. Our imagination
and technology have created a whole series of
special-purpose bonds (many enjoying tax exemp¬
tion) which diversify and enlarge the Over-theCounter Bond Market. We have equipment trusts
rolling stock, and airplanes; we have
super-highway and toll road bonds that have
financed the removal of congestion and traffic

for railway

lights from inter-city driving. We have huge
bridges—The Golden Gate, Mackinac, Lake Ponchatrain, all bond-financed over the counter. A
relatively new fashion in finance (as well as gov¬
ernment) is the creation of Port Authorities to

municipal deep-water
transport facilities. All these are financed by
bonds, and all the bonds are sold over the counter.
Within the past five years, a new corporate
bond has emerged, the uranium bond, created to
finance ore-treating mills. Since these mills sell

build, operate and expand

uranium

entirely

oxides

government

several
such bonds have acquired considerable in¬

agencies under firm contracts running for
years,

vestment stature since

they

are,

issues

new

frequently develops in this

period, over the counter, than
in whole months of "listed" trading later on. Olin
Mathieson 5lis, Douglas Aircraft 4s, Burroughs
Southern Natural Gas 43/£s, Con Edison
were launched, and found their original
market orbits, over the counter.

41/2s,

4!'2s all

The

the

their

many

short "incubation"

Marketplace for All Investors

diverse. We'll

past two years have been banner ones for
underwriting of convertible securities. A great

of these are, in due course, listed oh major
exchanges but, from the moment they are pub¬
licly advertised, until such listed trading begins
(usually a period of from three to four weeks),
these issues are actively quoted and traded over
the counter. In fact, a bigger volume trading in

a sense

in¬

same

is true about stocks. Each-year

veritable parade

month,

there

of equities marching after a

often years, of over the counter

ing, to the status

life insurance is

ones

eral, Lincoln, Franklin and Continental Assure
ance. The fabulous growth of the life insurance

Activity During "Incubation" Period

The
the

our

by the big "mutuals" (with no publicly
stock),. there are well over 1,000 "stock"
insurance companies - including such huge
as Travelers, Aetna Life, Connecticut Gen¬

written

trad¬

wherein their sales prices and

industry (with total assets now of more than $100
billion) and the spectacular market gains scored

by the shares of dozens of companies, has at¬
tracted thousands of new investors to this field

Every share they have bought or
sold, in this dynamic industry, changed hands
over the counter.
"
'

in recent years.

always interesting to look at the fabulous
diversity of companies whose shares are quoted
daily in the Over-the-Counter Market sections x>f
most major metropolitan papers. Are you Inter¬
ested in the new metals.of the space age? Beryl¬
lium is one such,-and the two major producers
It is

Beryllium and Beryllium Corp. Lith¬
pioneer is Lithium Corp; There's also
Strategic Minerals, Rare Metals and KennametaL
Interested
in water transportation? There's
American Commercial Barge, Mississippi Ship¬

are

Brush

ium? The

ping and Mississippi Valley Barge Line. In all of
of
Campbell Soup, Carter Prodr J these, the related stocks are bought and sold and
quoted over the counter.
ucts, Harshaw Chemical, U. S. Borax, Walt
Disney Production and Polaroid all are quite
Issues of Diverse Industries
recent "graduates" from the Over-the-Counter
volumes

are

recorded in the trading sessions

stock exchange.

American Marietta is

Market.
Preferred stocks are a very

special sort of se¬

individual in¬
portfolio item
fire and casualty companies. When such

curity, not widely popular among
vestors, but a traditionally favorite
among
institutions

seek

blocks

of preferred stocks

turned

offers

to choose

ones

from—

Utilities,
Jamaica Water, Indianapolis Water, New York
Water Service, Northeast Water, Southern Cali¬
fornia Water Co. Much investor interest has been

(in

aroused

fected

are

traded

Natural Gas
af¬

Memphis

recent

of the companies most

number

Citizens

Service,

the

decision.

over

Gas

the counter; Tennessee

Transmission, Texas Eastern Transmission, Texas
Gas Transmission, Transcontinental Gas Pipeline;

Stocks

Moving into other lines, the largest maker of

magnificent results in

fine

some

Water

California

That's where the real market is.

banks

by water company securities, the same

market

larger lots) their quotations
are received, and transactions arranged, over the
counter. It matters not that the-issue-in question
is listed on some exchange; only in the Over-theCounter Market can you buy or sell in volume.

Our

of the most rapidly

tracted

thousand share and

Haven for Bank and Insurance

one

growing and multi-merging industrial enterprises.
It's an over the counter favorite. If you're at¬

fire

and divi¬
dends. Yet every single operating bank, whose
shares are publicly held, has its capital stock
bought and sold solely over the counter. (There
are a few listed bank holding companies.)
1957, reporting new highs in earnings

sprinklers, Grinnell Corp.; famous pharma¬

ceuticals such
G.

Upjohn & Co. and

Eli Lilly Co.,

Searle; the largest merchandiser of cos¬

maker
leading
publishers, Macmillan (largest in the

metics, Avon Products; a world renowned
of

heavy duty motors, Cummins Engine;

textbook

world)
steel

specialty

Textbook;

International

and

Kaiser,

Star,

Lone

including

companies

Jessop, McLouth and Florida; the leading arbiter

Over-the-Counter Securities

of credits and collections, Dun

& Bradstreet; the

largest maker of pre-fab houses, National Homes;
the

biggest brewers, Pabst and Anheuser-Busch;

and

helicopter makers Doman, Gyrodyne, Kaman
Vertol;

Bank and Insurance Stocks

We maintain

one

of the largest cinema theater chains,

United Artists Theatre Circuit; the

Public

trading markets

Utility Securities

common,

in selected issues

Industrial Securities

stock,

Los Angeles Turf Club

Santa Anita) —the shares of

owns

renowned

Railroad Securities

biggest timber

Weyerhauser; and the highest priced

company,

enterprises

may

(which

all of these

be bought, sold ori

quoted only in the Over-the-Counter Market.

Canadian Bonds

A Look at the Record

swift

This
soned

and

cataloguing of the myriad of sea¬

profit-laden equities domiciled over

the counter is

only

sampling, just

show case

of the thousands of stocks which go to
this

Cthe

market

vastest

tabulation

the

names,

world.

mere

make

But

citation

breadth of this vital market is not half

FIRST BOSTON

vincing

of
so

the
con-r

the list which follows of companies

whose sustained

CORPORATION

mere

profitability has been established

by the ability to pay steady, uninterrupted divhr
New York

Philadelphia

Boston

Pittsburgh
Cleveland.

Chicago

dends for

the best way

San Francisco

these
,

long

180

years

a row.

Over-the-Counter Market securities

possess!..

This is

to prove what counter attractions

,r.

....

really

Volume

187

Number

5734

.The Commercial and Financial
Chronicle

(1785)
Difference Between Listed and

Cash Divs.

Over-the-Counter Trading

listed

discourse

and

(Hartford)

Life,
s

group,

Diversified

•

_•

1.60

insurance

CORP...

See Company's

I,'

Railroad
Ohio

0.90

186

sult

6.9

231/4

DIVIDEND

"•

page

;

WWWHHHUHWWWHWWHHWMWWMW
'

Cash Divs.

Approx.

Including
No. Con-

Quota-

12 Mos. to

seciitive

Years'Cash

Dec.

Divs. Paid

Based

5.7

Amer.

2.00

3.2

Fire

6.7

tion

31,

Co.,

Dec. 31,

1957

Allied

•

Abercrombie
<■'.

Retail

Fitch——

sporting

goods

1.75

<26

Allis

6.7

Abrasive & Metal Products.

Aloe

0.25

6.3

Electric

Corp

0.25

3.1

Acushnet
Molded

radio,

Process

rubber

products

21
and

•••;

10.95

<25

3.8

Golf

American Corp

i 0.16

al8

into

Aeolian

2.70

126

2.1

fire and marine

insurance

Diversified

(Hartford).

2.60

5.4

insurance

for stock dividends, splits, etc.
Including predecessors.

1 Initial
,s

dividend
:

'■>

16c

paid
!

Dec.

on
::

■

3.8

2.00

American

f 0.99

Fire

2.8

27,

•'%

casualty

151/4

7.4

4.9

American

■

•

1.80

,47

3.8

■

Custom

fl.38

271/4

0.20

6.7

0.60

1.8

1.40

143/4

9.5

7.1

1.20

1.45

371/2

3.9

0.80

\ 12%

6.3

1.30

201/4

6.4

Locker, Class B._ ; 15

0.30

31/4

9.2

moulders

Corp

plastic

(Newark)..

Diversified insurance

American
Maintains

lockers

public

ter¬

minals

merger,

Corp.;

Details not
complete as to possible
annual rate.

Yield

bused

three

BISSELL &

MEMBERS:

NEW YORK

AMERICAN

♦

;

•

MEEDS

STOCK EXCHANGE

STOCK

EXCHANGE

BROADWAY, NEW YORK 5, N. Y.

Telephone BArclay 7-3500

Bell

PHILA. NAT L BANK BLDG.

PHILADELPHIA, PA.

10 WALDMANNSTRASSE

160 W. BROADWAY

ZURICH, SWITZERLAND

SALEM, N. J.

cents

each

Continued

Preferred
"

payments

April 10 and July 10, 1957.
Including predecessors.

INSURANCE STOCKS

'•

longer record,

Estimated

Trading Department, L. A. GIBBS, Manager

PONT BUILDING

■

American Insur.

: 5.1

Cement Corp

WILMINGTON, DEL.

cargo equipment

Inquiries invited in all Unlisted Issues

Hospital Supply._

120

7.1

cranes,

American Insulator

Details not complete as to
possible

LAIRD,

materials

Common
■

0.50

Derrick..

CHRISTIANA SECURITIES CO.

4.7

1:'

Large variety of hospital supplies

Felt

Specialists in
y

1.60

■

Insurance

Hair &

OVER-THE-COUNTER SECURITIES

6.5

■

133/4

General Insur. Co.

effective
of Hercules Ce¬
Peerless
Cement
Corp., and Riverside Cement Co.

BANK &

ss0.90

National

Furniture

fO.98

longer record,
t Adjusted for stock
dividends, splits, etc.

1957.

and

Hoists,

Corp..

1957,

Forging & Socket-

1.125

.;
'

9.5

insurance

Fletcher

American Hoist &

Manufacturer paperboard,
folding
corrugated and fibre
shipping containers

Dec. 31,

IOI/2

Miscellaneous hair & felt products

Markets,

Box Board Co

via

1.00

cheques;

Large furniture manufacturer

6.7

American

Filter

Formed

travelers'

Manufactures automotive
hardware

paper boxes,

ment

t Adjusted

American

motors

Aggregates

4.9

Fidelity & Casualty

;American

ventilating equipment

American

Aetna Insurance

*21

Food

7.2

37%

Manufacturer of felt

7.8

261/2

California super markets

American

and

Casualty, 6urety,

1.00

American

Casualty & Surety Co.
(Hartford)

16 %

Filters and miscellaneous
heating

Co.

Aetna

Beta

Money orders;

American

Inc.

American Air

Formed in May 1957 as a result
of
merger
of
American Piano

*16

electric

261/2

1.85

travel; foreign shipping
.American Felt Co

Co..

and

1.90

Express Co.

apolis

Gravel and sand

balls

Aeolian

Corp.

4.3

Bank & Trust
Co., Indian¬

(A. S.) Co

Alpha
-

Transformers,

1.28

Medical supplies

Abrasives

Acme

(Louis)

Generators

;

8.0

Cement

financing

1.00

Finance

allied lines of Insurance

Diversified

Class A

Installment

3.00

Assurance

Co. of New York.

American
11

Portland cement

Paymts. tc

Dec. 31,

course and service

Portland

Equitable

American

5.6

fAllentown

6.6

insurance

Fire and

Alexander Hamilton Institute
'.t Inc.

3.5

0.40

5.00

RR. Co.

4.00

Dredging operations

Ship

1.75

*15

Dreaging

American Druggists Fire ~

2.25

% Yield

Extras for

2.9

District Telegraph

7.5

Modern business

17V2

protection services.

Albany & Vermont

e0.50

Electric

al7

Dock

(San Antonio)

1957

1957 as re¬
of
American

1.50

Local carrier

10 to 174 YEARS

merger

American

45.

Alba Hosiery Mills, Inc
Silk and nylon
hosiery
"
"
,

.* Shipbuilding and repair C
Alamo National Bank

1957

Barge

______

August

American

Building Co.

PAYERS

1957

Barge Line Co. with Commercial
Transport Corp.

4.2

21%

Commercial

Line

1.8

Dec. 31.

31,

*33

Co.:

Dry

Paymts. to

Dec. 31.

Dec.

Based

55
advertisement

carrier

.Alabama
:

tion

3.40

12 Mos. to

Divs. Paid

Formed

Co.

Quota-

Years Cash

1957

American

Extras for

secutive

Akron, Canton & Youngstown

OVER-THE-COUNTER
Consecutive Cash

31,

Approx.
% Yield

No. Con¬

Paymts. to
Dec. 31,

1957

Communication and navigation
equipment and accessories ~ •

TABLE I

Dec.

1957

Including

accident, health

AIRCRAFT RADIO
.

tion

Based

Co.

Agricultural insurance

x■/'

31,

Quota-

Aetna Life Insurance

the Over-the-Counter Market functions.

Dec.

Divs. Paid

not conversant with how

are

12 Mos. to

Years Cash

the difference between the
Over-the-Counter Market, for the
on

benefit of those who

Extras for

secutive

Cash Divs.

% Yield

No. Con¬

Following the tables appearing hereunder,
present

Approx.

Including

83!

Teletype NY 1-1248-49
44 WHITNEY AVE.

NEW

HAVEN, CONN.

225

S. STATE ST.

DOVER, DEL.

Jan.

10,

page

Chronicle

The Commercial and Financial

Approx.

Cash Divs.

% Yield
Based on
secutive 12 Mos. to
tion
Paymts. to
Years Cash
Dec. 31,
Dec. 31,
Dec. 31,
Divs. Paid
1957
1957
1957

Cash Divs.

No. Con-

Quotation

Extras for

secutive

\2 Mos. to
Dec.

31,

1957

Divs. Paid

Manufactures

24%

0.10

Denver

15.00

6.0

250

Chemical

350

1.6

(Chic.)..

0.80

5.3

Arden

7:7.

West

4.4

1*1,05

Pulley

——

and other

•

9.0

1.625

Re-Insurance

Diversified

American

insurance

threaded

cold

8.1

3.40

_.—

;

Spring

Inc

Springs and wire forms- 7 *
American Stamping Co

1.00

71/4

0.60

Pressed steel

parts

and stamping

8.3

Office

27'

20.00

4.6

435

Diversified

—

13%

0.90

Atlanta

to possible longer record,
stock dividends, splits, etc.

—

f 0.91

"•/

5.6

7." 7

——

and

devices

40% ;

f2.80

con-

Spring

Corp

*21

Gas Light

1.60

27%

Details not

117

—

4.6

■:"":7'"* '
—

' v :

5.6

THE

6.8
7,
4.2

1-4.92

130

3.8

14.00

289

4.8

1.60

3.2

COMMON¬

5".

page

(The) of New York— 173
of

Bankers

30%

(DETROIT,
advertisement

the

17%

1.275

—

Bank's

See

1.20

construction

Southwest

Na¬

tional Association, Houston

as to possible longer record,
dividends, splits, etc.

32%

1.80

Bank

complete

t Adjusted for stock

Bank

3.00

4.0
' "
6.0

■'■■■ "

31%

,7-,

•

3.3

42%

1.70

1.90

■

4.8

■
-

—

and

MICH.)
•

0.40

America

WEALTH

5.8

83
7. >7

4.00
7
,

of California, N. A

BANK

6.0

5.6

largest bank

Corp.

Building & Equipment

7,7 Building design

7.8

24%

f 1.47

2.50

—

Bangor Hydro-Electric
v Operating public utility 7 Bank of Amer. NT&SA

Bank

springs

8.6
7.3

real estate

Nation's

25%*

5.5

7'-'.'.7' "'77-:"- 7:'7

1.10

Sulphite pulp and paper

Bank

5.0

■■

2.00

10%

BancOhio Corp.—

6.9

21%

0.90

V7'"77'777--; ■-''-77

'"7 77 Holding company—bonks

imntj
0.30.-

fl.18

Detroit real estate

Bagley Building Corp.—— \ 2V\

5.2

16%

fO.875
;V

•

14
:

3.5

34%
7 '

store

Badger Paper Mills.

produc7"

16%

7.4

" ;v

fl-20

Paints, enamels and. hardware

6.9

7
7

"7-

4.1

16%

1.20

—_

toiletries

and

Stores, Inc.

Georgia carrier

Details not complete as

t Adjusted for

Atlanta & West Point RR. Co.

8.7

19%

1.70

•

manufacturer

c
*

Foods, Inc

Detroit

4.0

5.0

?•

0.625

Badger Paint & Hardware
.y;

24%

loans

Operating public utility

Products

Co.
Vacuum ware

personal

Restaurant chain

furniture

Precision

6.7

insurance

American Thermos

utility

gas

wiring

Associated

Freighters on Great Lakes

- *

Liqueurs Corp.—.,—,.,*13
Cordials and liqueurs
T"
Art Metal Construction Co.—
22

8.3

utility

gas

' '

1.12

Arrow

American Steamship Co
American Surety

and

Electric

Holly,

and

Banking Corp.—

B.M.I. Corp

7.9

Electric Co.

fasteners

American

12%

ql.00

Operates Indianapolis dept.

B/G

Arrow-Hart & Hegeman

1.00

2.5

0.50

Ayres (L. S.) & Co

Service——

financing

Cosmetics

6.5

2.00

1.20

Cotton fabrics and yarns

—

Avon Products

5.0

0.20
^

Natural gas public utility,
tion and transmission " "

;

forged

15 ;

.—

Arkansas Western Gas

5.0

1.30

7 '•"*

Screw Co

Manufactuer of

4.5

Public

Electric

——

26%

Arkansas-Missouri Power Co. *21

equipment

American

1.20

Coast dairy

Electric

"7.

—_

insurance

Auto

6.7

Farms

Arizona

E-Z

Avondale Mills

Smelting Co.--

Apex

tanks, pipelines

Power transmission

6.7

'7%

producing and distributing

Automobile

mechanical mfg.

and

Aluminum smelting

Co.

American Pipe & Construc'n
American

0.80

Tools and wrenches

National Fire In¬
:

and

Mossberg Co.—

Apco

2.5

2.00
f5.51

—

insurance'

1.20

Ansul Chemical Co

5.0

1.00
0.50

Investments, automobile financing

-7.3

16%

Large variety of traps

Trust Co.

(Chattanooga)

Diversified

5.7

and other products

Beer

of
23

Amer. Natl. Bk.Tr.

Anheuser Busch Inc

surance

Casualty Insurance

Animal Trap Co. of America

Amer. Natl. Bank &

American

4.1

2.4

0.24

*28

National Bank

American

Steel

Mechanical conveyor systems

insurance

and

storage
Stores

Service

Auto Finance Co

1.00

and

cold

coal,

Atlantic Steel

1777'

Fire

Company
Diversified

;

7.4

Anchor Steel & Conveyor Co.

American Motorists Insurance

0.50;

Ice,
Curb

—

building materials

and

1957

Atlantic National Bank

Company

of Jacksonville

Paul)

(St.

products,

household

powders,

Boilers,

34
13

2.6

Anchor Casualty Co.

3.0

27%

f0.85

Paints, chemicals, resins, metal
cement

1.25

(bronze) alloys and
\'.7 ;:77."
-77:777

products

City Sewerage Co.—

Atlantic

1.20

Metal, Inc

Copper-base

products

Dec. 31,

1957

ooftfin**

4.9
4.6

32%

Insurance

Life

various corn

American-Marietta Co

tion

Dec. 31,

31,

1957

1.60

pipe, bricks, tile

Sewer

Amicable Life Insurance Co.

4.4

fl.90

.Qpirpr

22
11

—

American Vitrified Products-

Ampco

American Maize Products—

Dec.

Atlantic

(San Francisco)

Dec. 31,
1957

Dec. 31,

12 Mos.to

Years Cash
Divs. Paid

American Trust Co.

% Yield
Based on
Paymts. to

Years Cash

Approx.

Including

Quota-

Extras for

; secutive

-VAST, VITAL, AND VOLUMINOUS

Including
No. Con-

-Approx.
% Yield
Based on
'Paymts.to

Cash Divs.
.

Quota-

Extras for

No. Con-

THE OVER-THE-COUNTER MARKET

;

Thursday, April 17, 1958

; 7

Including

Continued from page

(1736)

Bond

Mortgage

Guaranty Co. of America.

4.4

0.30

2.50

2.40

48%

4.9

54 7

2.90

61 Vs

4.7

0.50

8.2

1.88

2.7

1.375

18%

7.4

2.9

financing

Mortgage

Bankers Commercial Corp...

—

8.1

Installment financing

Bankers

Shippers Insur.__

Multiple line insurance
Bankers Trust Co., N. Y
Investment Co

Bareco

Formerly Bareco Oil Co. Name
changed May, 1957.
Microcrystailine

wax

Barnett National Bank

Blyth & Co., Inc.

(Jacksonville)
7

Bassett Furniture Industries
Inc.

*22

Complete line of domestic
furniture

Bates

Coast to coast retail

distributing facilities

and

Drills and

13%

1.25

7.4

0.67

20%

3.2

boring mills

Baxter Laboratories, Inc

located in

Baystate Corp

Manufacturers of

principal

0.15

fabrics

rayon

through 24 offices

Distribution

Manufacturing Co

Cotton

Bausch Machine Tool Co

pharmaceuticals

1.10

18%

5.9

1.45

23%

6.2

Belknap Hardware & Mfg.—

0.85

11%

7.2

0.50

5.3

3.00

38%

7.8

2.00

33%

6.0

|2.00

26%

7.5

0.50

5.3

Bank

financial and business

holding corporation

Beauty Counselors, Inc

Wholesaler: Cosmetic and toilet

centers.

preparations
Hardware

wholesaler

furniture

Bell & Gossett Co
Pumps, tanks and valves

Belmont Iron Works
fabricator

Designer,

terminal

livestock

Co.
mkt.

Bemis Bro. Bag Co

Manufacturer

!►

Industrials

and

Public Utilities

Holding

Corp.

company
Finance

affiliate

Beneficial

Complete

textile

paper,

plastic bags

Beneficial

Primary Markets
With

erector,

Stock Yards

Belt RR. &
Operates

and

ctppl

ctriintiii'Ql

Company

Bank and Insurance

Benjamin Franklin Hotel Co.

Municipals

Philadelphia hotel
Berks County Trust

Trading Facilities

12.00

275

7-1' 4.4

fl.04

4.5

0.95

15%

6.0

0.25

4.0

f2.27

—

2.00

Co.

5.00

100

5.0

1.25

5.7

1.25

15%

Co.

(Reading, Pa.)
Berkshire

Gas

Operating gas public utility

Berkshire
Fine

Hathaway, Inc

cottons

Bessemer

Limestone

Ce¬

ment Co
"Portland"

Bonds

Preferred Stocks

•

Common Stocks

Bibb Mfg. Co.
Textile
Cotton

4.1

30%

6.5

cement

manufacturer

goods;

Biddeford &

sheeting,

etc.

Saco Water

Operating public utility

Bird Machine Co
New York

Boston

•

Sah Francisco

Philadelphia

•

Chicago

Pittsburgh

•

Los Angeles

Cleveland

•

Seattle

Louisville

Portland

•

Indianapolis

•

Sacramento

Machinery for paper mills

Bird

Son

Asphalt shingles

Detroit

Minneapolis

•

San Diego

•

Spokane

Oakland

•

Eureka

Pasadena

San

Jose

Fresno

Paxo Alto

Oxnard

7.9
•

Birmingham Trust National
Bank (Birmingham, Ala.)

0.80

37%

2.1

Black-Clawson Company

1.00

5.9

Makes paper and pulp

mill

equipment
•

Details not

t 'd^usted
q

complete

to possible longer record,

for stock dividends, splits, ete.

Plus one share of Piedmont Natural Gas Co.
held.

for each 109 6hare»
J

Volume

187

Number 5734

The Commercial and Financial
Chronicle

(1737)

THE OVER-THE-COUNTER MARKET

-VAST, VITAL, AND VOLUMINOUS
Cash Dlws.

12 Mos. to

Years Cash

'■'V
BLACK

HILLS
LIGHT

Dec.

Divs. Paid

POWER

\ Yield

Extras for

secutive

Quota-.

See

•

22%

work

and

page

49.

1.40

19V4

7.3

1.35

171/2

7.7

0.80

Approx.

5.0

**2.625

15%

0.50

4.2

3.2

of dry
cleaning
Establishments
\ / - v.-

Cold

Co.

storage,

;

—

0.25

10%

Boston Herald Traveler
Corp.

f0.48

17%

2.7

1.80

28%

6.3

0.30

5.2

62%

6.4

Newspaper publisher

Insurance

warehouse

Cannon Shoe

casualty insurance

Bound Brook Water Co
Operating public utility
Bourbon. Stock Yards Co

*33

4.00

Louisville stockyards

0.80

14%

5.5

supplies

Banking & Trust Co.
(Wilson, N. C.)
Bridgeport City Trust Co
Name

changed in August
City Trust Co.

1.50

f0.875

3.8

62%

1.4

1957

1.70

29%

Supplies water to several
Connecticut communities

5.8

products.

paper

and

1.80

5.0

service

0.70

9.00

-•

161

2.00 /

20%'

"r."j /.;;>•/'

sheets

for containers

Apartments

/ 0.175,

1.00

Owning and operating apartment
house (Washington, D. C.)

royalty

2.3

0.80

...

11''

1.00

27.*.: '

2.50

15%

0.75

6.00

103

0.40

1.20

19%

■/

1.60

341/2

4.6

1.40

20%

6.7

1.80

30%

5.9

6.00

2.0C

33%

5.9

tl.57

29%

5.3

54%

5.5

(Cinn.)

Insurance other than life

operating public utility

Brockway Glass Co
Glass

containers

15 '

Name

and

two

"Gordon"

■

hosiery and

22%

Machine tools

Brunswig Drug Co

Co.

y0.90

15%
10%

1.75

49%

3.5

American

0.20

6.2

investment

Members:
.

Corp,

Manufacturing steel forgiugs

Buck Creek Oil Co
Crude

0.13

*33

0.60

3.50

24%

oil. producer

Buck Hills Falls Co
Hotel hi

store

7.5

2.00

29%

6.8

New

presses

Continued

Midwest and Boston

Exchange (associate)

Bullock's Inc.

14.3

26
specialty

fl.99

34%

1.10

/ 17%
25

48%

BOSTON 7

STREET

FEDERAL

CHICAGO 4

STREET

231

S. LA SALLE STREET

6.4

4.00

BROAD

8.2

HAnover 2-2700

stores

Burgermeister Brewing C

Exchanges

banking service since 1848

6.3

1.60

5.7

a24

Department,, and

Stock

7.4

castings

Liberty 2-5000

Teletype NY 1-917

i..

Browing- ot beer

FRanklln-2-4500

Teletype BS 452

Teletype CG 175

Dry cell batteries and battery
using devices

urgess-Manning

Industrial acoustics,

radiant

ceil¬

ing, recording and controlling in¬
struments

-1.20

4.8

0.50

0.8

2.00

40%

4.9

Greenhouses, radiators, etc.

Allison Steel

Business Men's Assurance <
of America
Life

and

Butler
Metal

products

Butlers, Inc.

0.60

Southern shoe

'2.00

6.4

19%

10.1

40%
28%

4.9

chain

Calaveras Land & Timber

Corp;,

California

timber

lands

California Bank (L. A.)
California Oregon Power

—

.37.

2.00

1.60

Operating public utility

5.6

Manufacturing Co.

Avon Products, Inc.
Brown & Sharpe Manufacturing

disability insurance

Manufacturing Co,

invite

inquiries
on

the

„/•

following

Company
Bryant Chucking Grinder Co.
Cameo Incorporated
Cary Chemicals, Inc..
Consolidated Rendering Company
The Duriron Company, Inc.
Electronics Associates, Inc.
The First National Bank of Jersey City
The Fort Neck National Bank of Seaford
Hudson Pulp & Paper Corp.
Jones & Lamson Machine

Title insurance
-

Operating public utility
and lime

f2.10

38%

5.4

1.60

6.4

3.50

120

2.9

California Portland Cer
Cement

products

CALIFORNIA WATER
27
Public
•

See

2.30

utility-water

Company's advcrtiseme

page

41%

5.5

1.20

Operating public utility

Co.

& health

1.50

insurance

Details not
complete as to possible
t Adjusted for stock
a
•*

longer record,
dividends, splits, etc. \

Including predecessors.
New annual

rate

Ages Corporation
Corporation

19%

6.3

Shuiton, Inc.

1.9

St. Croix Paper Company
Speer Carbon Company
Triangle Conduit & Cable Co., Inc.

California-Western States
Life, accident

River Brand Rice Mills, Inc.
Shea Chemical

Telephone Co.

Insurance

Morningstar, Nicol, Inc.
National Aluminate Corporation
National Blankbook Company
Rock of

49.

California Water &

Life

Company
Kay Jewelry Stores, Inc.
The Kerite Company
Machlett Laboratories, Inc.
The Meadow Brook National Bank

$3.00.

'801/2

5.5

York,

Stock

51/2

properties

Chambersburg Engineering..
6.6

NEW YORK 5

Production- of steel

8.3

3.3

Poconos

Buckeye Steel Castings C

0.30

7.8

grinding machinery

Bryn Mawr Trust Co
Buchanan Steel Products

1.00

6.00

6.0

0.80

Manufacturers of internal

7.3

CORPORATION

13%

LEE HIGGINSON

Wholesale drugs

Bryant Chucking Grinder Co.

4.7

t Adjusted for stock dividends,
splits, eta.

to possible longer record.,

underwear

Brown & Sharpe Mfg

5.1

1.00

Forging hammers, hydraulic

1.50

Brooklyn

Brovvn-Durrell Co.

utility

gas

changed to Cortland Co.

Own
and" operate
garden apartments

19%
57

Brockway Motor Co.
Brooklyn Garden Apart¬
ments, Inc

1.00

2.70

-y

Brockton Taunton Gas Co¬

British-American Assurance

Company

3.00

and distribution

Chain Store Real Estate Trust

3.8

Operates warehouse in Albany

;
25

6.2

Metal fabricator

160

Corp.

Central West

6.3

board

complete

130

Central Warehouse Corp.,
Class A

Retail

Central Fibre Products Co.,
wall

6.8

Investment trust

/ 14%

9.4

*22

0.90

5.8

16'

states

Details not

11%

3.3

3.7

///. 8.3

Electric & gas utility and through
subsidiaries
telephone service in

Paper and

0.80

5.7

Electric

....

5.7

4.5

0.90

Service

4.4

Central Electric & Gas Co...

livestock feed

Central Trust Co.

basis

Storage Co

1957

Central Vermont Public

utility

Co.

Metal processing

1957

1.60

Telephone service

44/.

•

utility

Central Telephone

-.-.TV"*"1 ^'-/l

(Denver)

1957

gas and water

Central Steel & Wire Co

!■■■■

,'y.

Central Bank & Trust Co.

mines

6.0

tion-:. Paymts. to
Dec. 31,
Dec. 31,

31,

26 *

Soybean processing and mixing

V 5 >/•.' 3.5

Corp..

Dec.

public utility

Central Soya

20Vi:X 9.8

1.25

gas

(Philadelphia)

5.6
'■

Caspers Tin Plate Company.

12 Mos. te

Central-Penn National Bank

-V

Electric,

Cleveland

•

■

*26

Central National Bank &
Trust Co. (Des Moines)

■

'A.--,':-

Corp

secutive

Years Cash

Central National Bank of

6.3

7.0

3.94

Central Louisiana Elec. Co...

5.2

Co..

Cascades Plywood

Leases

Electric

28^

coverings

Metal

''''

1.80.

paper

Carthage Mills, Inc

•

Bristol Brass

Central Maine Power Co

7.5

8.00/ 154

(William)

;

' •.!-

Underwear

paper

Manufacturing of

Based

Operating public utility

5.0
'■

0.45.,,

Operates telephone exchanges

Voting

Brinks, Incorporated

Natural

1.25

CARPENTER PAPER CO._

several

Bridgeport Hydraulic Co

Central Illinois Elec. & Gas.

5.5

Refrigeration

57
58

'■

1957

Approx.
% Yield

Quota'

Central Indiana Gas Co—__

shoe stores

Central Cold

Branch

Extras for

Divs. Paid

2.75

«...4

Central Coal & Coke Corp—

Boyertown Burial Casket^—

'•

business

Carolina Telephone and Telegraph Company

Cavalier

funeral

2.4

;

•

No. Con-

Plywood
'

,:y

•i

Paymts. to
Dec. 31,
Dec. 31,
1957

Including

.tion

Dec. 31,
1957

Campbell Taggart Associated
Bakeries, Inc.
*12

Floor

Chain

Cash Divs.

% Yield

Quota— Based

Refrigerating & Ter¬

minals

Carter
86

;

Bornot, Inc

car

Years Cash
Divs. Paid

•

products

publisher

Armored

•

secutive

Camden

Distributor

•

play

clothes

Miscellaneous

6.4

tanks

Boatmen's Natl. Bk. St. Louis

and

-v

•

Bakery chain

1.42

a29

Fire

Retail
on

Bryson

Pressure vessels,
valves, and

Boston

1957

Bloch Brothers Tobacco Co._"
"Mail Pvmeh"
chewing tobacco
Blue Bell, Inc.-

Book

;

•

Extras for
12 Mos. to

....

Ooroivany's, advertisement

Manufacturer

Paymts. to
Dec. 31,

31,

1957

Operating public utility

Black, Sivalls

Based

tion

Dec.

31,

1957

Including

„

No. Con-

Approx.

Including
No. Con-

Cash Divs,

;

Williams and

Company, Inc.

on page

•

The Commercial and Financial Chronicle

(1738)

Quota*

THE OVER-THE-COUNTER MARKET

Extras for

secutive

X3 Mos. to

Years Cash

tion

Dec. 31,

Paymts. to
Dec. 31,

1957

Bee. 31,

Divs. Paid

Based

1957

Co.____

1.20

6.2

19%

Maintenance

Chapman Valve Mfg. Co
Gate valves,

7.7

fire hydrants

2.00

110

3.8

'47%

Public

: =101

Chenango & Unadilla
Telephone Corp.

2.075

43%

1.30

;57
>29

7.50
5.00

200

2.5

2.50

;

0.40
6.00

10%?

3.7

0.60

0.70

6.3

20%

4.0

12%

4.8

Foil

rolling,

15%

4.6

Co.

*43

Manufacturer

2.50

Over-The-Counter Consecutive Cash Dividend
10 Years

Second Table Starting

Page 54.

Insurance

Retail

1.25

Color-Craft

7.4

boxes

Wall

Chicago Molded Products
Corp.

■

YrY

0.70

Y./.

5.00

6.6

LOO

4.8

power

2.00

4.5

^:/2%

8.0

4.9

26%

1.25

prepared

mixes for
V

Columbian National Life In¬
*32

485.00

12,300

3.9

surance

company

6.0 r
5.4

each

common

•'

public

utility

Inc.

<fe

office

1.70

< *

5.5

Y/YYYY?Y Y--

printing

oil, Ac warehousing

0.25

Dearborn

7.4

;

1.30

21%

6.0

3.975

5.0

3.00

5.8

22.00

580

buildings in Chicago

Dry Goods Co._

Y'YY.

Products

railroad

equipment patents
__

Rendering

Manufactures

and

paper

3.8

>"?>".■

Co._

2.00

22%

8.8

1.10

31 %

3.5

Consol. Water Pwr. & Paper

Y YY

paper

products

3.0

2.00

16%
41%

the

Tallow, grease, meat scrap, Jfertilizers, hides and skins

baking

1.00
2.25

51.

page

Exchange).

Printers,

Consolidated

7.0

Hartford

into

for

gas

Corp.

ort

Holding company, diverse interests

1.40

5.6

Consolidated Naval Stores

3.3

37%

;

Newark

Owns

1.00
18
Y.Y="
YY':

Department store chain

transmission

gas

and

1.30

5.1
0.8

(traded

Consolidated
0.20

35% Y
237

1.80

■.

received

and

of Ice

Owns

*"'""1.80;

insur¬

held

■

manufacturer

Christiana Secur.

supplier

Colorado Milling & Elevator
Flour

China Grove Cotton Mills Co.

4.9
*v

••

NATIONAL

Consolidated Metal

light and

Natural

business magazines

Colorado Interstate Gas Co._

-22%

and

Products, Inc..,—

Plastic moldcrs

Chicago Title & Trust Co
Chilton Co.

health

Stock

common

Sale

coverings

Electric

7.8

1.10

Colorado Central Power Co..
19

0.7

' 135

Southeast

....

143

5.3
.

Consolidated

—-—

stores

and Midwest

Chicago Mill & Lumber

1.00

12
insurance

Stores
food

Co.

Connohio, Inc.

of America

Colonial

and

Co.

Connecticut

Co.

life

Tr.

YY;

YY-"

Commercial

Life

5.9

11%

with and

Electric

wire

Non-participating

7.8

0.625

and Individual)

Stockholders

cable

and

Colonial

Appear in the

Merged

6.5

32%

2.40

Light & Power.

Bank's

Insulated

See

Electric

123

8.00

_____________—

6.7

(BRIDGEPORT,

American

cutting implements

3.0

CONN.)

laminating

6.00

utility

Connecticut Power Co

lacquering
and

(group

•

1.20

(New Eng.)

CONNECTICUT

8.9

1*0.98

0.9

;

Operating public utility

Cochran

accident

Connecticut

BANK

Louis)

4.2

16%

1*0.15

Co.

Life,

2.8

218

—

-17

(Pa.)_

General Life

ance

—

Top manufacturer of band
•
instruments • \ I'^L'^'^'YYYcY-Y-

Insurance

3.50

Industrial

and

Connecticut Bank

6.3

—

(G. C.), Ltd

Connecticut

1.50

Farm

4.00

35 %

11.4

Commerce

holding company

Citizens Commercial &

•76%

2.55

Continental American Life

Insurance

3.3

Commerce Union Bank

Sav¬

1*2.00

(Nashville)

2.4

(Louisville)

Dealer

Citizens Natl. Trust &
Savings
Bank (Los Angeles)

f 1.60

3.7

2.25

451/i

4.9

1.50

36 %

1.00

0.60

0.30

•

•7%

Co.

1.50

1.20

*33

.___

8.4

Life, accident and

Diversified

11%

4.1

to possible

longer record,
dividends, splits, etc.

complete

1*0.95

•;

114

3.4 ?

!
•

1.1
Y

health

Gin

1 1.40

.58

—

Manufactures cotton

19%

4.8

.1.75

73%

1.9

10.3

ginning

Continental Illinois
Bank

Including predecessors.

and

National"

Trust

Co.

•

; /

of7

Chicago

to possible longer record,
splits, etc.

t Adjusted for stock dividends,
a

45:

equipment

Shear, & Stamp.

Details not

Co.__

insurance

Continental

2.7

working capital

Pressed metal products, hydraulic,
oil equipment and forgings

♦

Assurance

Continental Casualty Co

financing

Commercial

Citizens & Southern National

(Savannah)

—

Commercial Discount Corp.__
Provides

Continental

Commercial Banking Corp.__

Citizens Fidelity Bank & Tr.

Trust (K. C.)

Participating life

ings Bank (Flint, Mich.)__

Details not complete
t Adjusted for stock

IfcV

Life, accident and health

Circle Theatre Co.____

Bank

4.2

0.625

Collins

Payers From 5

Dec. 31,
; 1957

Pa., hotel

Operating public

Conn

2.40'

19
-

(Ky.)

Concord Elect.

6.2

distributors of

Collyer Insulated Wire

Real estate

1.0

6%"

5.3

building

Holding

1.40

al04

(Pittsburgh)

,/V;

Company

4.9

York

•

Chicago City Bk. & Trust Co.
Chicago Medical Arts Build¬
ing Corp

yarn

;

Coca-Cola (Los Angeles)_.
Coca-Cola (New York)

Midwest carrier

Combed

0.80

0.40

insurance

Cleveland Trust

7.7

152

1957

Commonwealth Trust Co.

Operates livestock yards

Paymts. to.

Dec. 31,
1957

Dec. 31,

Based on

Insur¬

Life

Community Hotel Co.

Coca-Cola (St.

5.50

tion

Years Cash

life

3.4

Cleveland Quarries Co.

5.8

Co.

ance

Manufacturers and

4.8

22%

12 Mos. to

(Jersey City)

wealth

ion

Nun-participating

1.00

Chicago hotel

Coiiiu

5.3

Cleveland Union Stock Yards

Chicago, Burlington &
Quincy RR. Co

Publisher

6.5

Building and refractory stone I

Chicago Allerton Hotel Co.—

Wood

13% '

3.00

Conn.)

Operating telephone company

Office

0.90

building materials .!

Chemical Corn Exeh. Bank-

Jersey

4.2

4.7

0.16

40%

utility

Cleveland Builders Supply__
11

___

1.7©

City Trust Co. (Bridgeport,

Manufacturing Co.,

Class A
Woolen blankets

secutive

Divs. Paid

City National Bank & Tr. Co.
(Chicago)
City Nat. Bank & Trust Co.

5.1

2.40.

Quota-

1957

(Charleston)
Citizens Utilities Co., CI. B__

Title

Charleston Natl. Bk. (W. Va.)
Chase Manhattan Bank

Chatham

3.00

Extras for

Commercial Trust Co. of New

Bank of S. C.

—

Manufacturing products for Utility
Line Construction &

Dec. 31,

(Columbus, Ohio)
23
City National Bank & Tr. Co.
(Kansas City)
*30
City Title Insurance Co.^
20

Chance (A. B.)

Dec. 31,
1957 "

1957

Citizens & Southern National

% Yield

Quota-

Appro*.
\ Yield

Including
No. Con-

Based on
Paymts. to

Approx.

Including
No. Con*

'Y YY;

Divs. Paid

VAST, VITAL, AND VOLUMINOUS
Casti Divs.

-Y-',

tion

secutive 12 Mos. to
Years Cash Dec. 31,

YY./Y?Y:

Cash Divs.

% Yield

Including
Extras for

No. Con-

Thursday, April 17, 1958

Approx.

Cash Divs.

Continued from page 37

4.00

82 Va

4.8

Copeland Refrigeration Corp.
12
Refrigerators and air conditioning.?,/
Corduroy Rubber Co._
19

1.00

10%

9.5

■

Tires

and

3.00

Cornell Paperboard Products

7.5

Y.:.'

tubes

14%

17 /.
./ Y

1.00

1.50

28%

County Trust (White Plains)

1*0.49

22%

2.1

Cowles

0.525

12%

4.2

2.00

32%

6.2

YYYWaip

paperboard

containers

•

Service

Chemical

County Bank & Trust Co.
(Paterson, N. J.)
.

M arket facilities

6.9

YYYY "r Y-'.Y

•

•: -•

5.2

Manufacturing chemists

Creamery Package Mfg

B asic analysis

Food

processing

and refrigerating

machines and iarm coolers

Crompton

Life,

Corp.

Knowles

Wide variety of

accident

and

0.75

10%

1.90

2.0

1*6.38

6.9

Y?v

looms.

Crown Life Insurance

sickness;

7.1
;

Co.___
also

annuities

Cuban

Singer, Bean

■

Mackie,

inc.

Telephone Co

i Operating

•

NEW YORK 5, N. Y.

•

NY 1-1825 & 1-4844

and

f0.91

0.60

9%~

6.3-

*16

0.10

1.6

2.5

—

overcoats

Curtis Companies, Inc
Windows,

9.1

engines

Curlee Clothing Co.j
Men's suits

HAnover 2-9000

0.60

Operating public utility
Diesel and gas

11 V

Cummins Engine Co

40 EXCHANGE PLACE

public utility

Cumberland Gas Corp

doors

and

other wood-

•

work

Dahlstrom Metallic Door Co.
mouldings,

Doors,

Dallas
_

FIRM TRADING MARKETS

Transit

Local

IRON
Iron

steel

Los Angeles

Reynolds & Co.

Philadelphia

" "

castings

„

Company's advertisement

Co.

6.5

0.50

CO.

and

See

Bituminous

0.35

6.7

MALLEABLE

Bardelebon

Direct Wires

*16

Manufacturing display equipment-

Coal

page

•.

1.50,

'■
53.

9.4

••

8.9

8.00

0.30*

Co.—

2.60

63%

4.1

2.00

5.7

1.30

7.2

Corp.__

coal

Decker Nut
*

7.8

cabinets

Cb._—

Darling (L. A.) Co

•

Evans MacCormack & Co.

1.25

transit facilities

DAYTON

IN OVER 400 STOCKS

Manufacturing
——;

Manufacturer

cold

-—...

headed

9.2

in¬

dustrial fasteners

Burton J. Vincent & Co.

Del Monte Properties
TDfiol

Chicago
Dallas Rupe & Son, Inc.

Dallas

pctfltp

Delaware
Leased

Delta

Railroad

and

operated by

Electric

Hand

lanterns

P.R.R.

Co
and

auto

type

switches, bicycle lamps and horns
»

Details not

complete

to possible longer record,

t Adjusted for stock dividends, splits, etc
t Plus one share of Continental Assurance
held.

for
•

each

100

share*
—

Volume 187

Number 5734

Vvt/

The Commercial and Financial
Chronicle

(1739)

THE OVER-THE-COUNTER MARKET

Cash Divs.

-VAST, VITAL, AND VOLUMINOUS
Cash Divs.
■*:

No. Con-

secutive

Dec.

Divs. Paid

-Y:
Farm

equipment

Dentist's Supply
4

Artificial

teeth

1957

other

*32:

dental

supplies

Denver Union Stock Yard
Co.
Livestock
■

:■ ■'■■

..,.7

Bearings and

.'Y .:.v/

and

operates

1.80

•

1.00

Detroit Plarvester Co
parts,

farm

»16%

1.20

equipment

Crude

Erie
/ 1

Detroit

Mortgage & Realty

•

16%

6.5

Real

estate

Detroit

.''2Vi

v:.'; ••xWv

1.35

;

Sewer and culvert
pipes,

1.25

5.2

fl.65

(Akron)

Dealers in
and

2.00

bankers

14.00

140

acceptances

f 1.95

37%

5.2 i

Co.

dd5.00

f0.77

5.6

20%

3.7 V

Co.

*25

0.525

Manufactures soybean and household products

projects,

r:i;

f 1.96

(Chicago)

1.50

19%

75-

0.80

fl.24

2.40

ment

—*

v.,..

1.65

■

t;,

;

Oil

and

0.50

11%
3%

Holding company,
public utilities

New

Eaton Paper Corp
Manufactures

social

2.20

f2.69

See

5.1

National

43%

4.1

3.5

1.30

4.8

1.70

29%

435

8.0

1.475

21%
5%

11.6

3.8

4.75

51%

9.2

0.95

>1.95

20%
62

4.7

Further

details

under

Optical Co., Inc. listing

First Natl. Bank of

Akron

First Natl. Bank of Atlanta

—

1.80

2.5

2.75

32%

8.5

First Natl. Bank

First Natl. Bank of Boston
First Natl. Bank

8.3

',v

-'V

—

First National

Bank

7.7

;

2.8

4.9

2.50

49V2

5.1

37%

3.6

>1-36

174

3.25

5.1

8.00

298

2.7

1.85

34%

5.4

>1.35

4.2

14.00

490

2.9

Fort
25

>0.97

(Jersey City) ' 94

ff2.25

3.9

>2.54

112

2.3

1.40

First Natl. Bank (K.

6.00

>1.56

94
-

Worth

5.7

First Natl. Bank
0.45

fO.99

*29

\Y'•

■

1.20

(Chicago)
(Cinn.)

First Natl. Bank in Dallas

sponges;

—

First Natl. Bank of Denver

V
:

30%

7.2 Y

9.6

13%

C.)

First Natl. Bank (Memphis)—

10.0

warehousing

32
„

1.35

7.9

Details not

complete

Details not complete as to

5.00

Adjusted for stock dividends, splits, etc.
ff New annual rate is $3 a share.
A 3% stock dividend
in January, 1957,-and one of 10% in
January, 1958.

Continued

Specialists
Over the Counter

;

books

Economics Laboratory, Inc.—
Manufactures

f0.77

1.00

Finish

Soilax,

ee2.50

and

Electrasol

Ecuadorian Corp., Ltd.

(Bahamas)
Holding co.—brewing interests

Edgewater Steel Co
Circle

wheels

and

rolled

steel

Private Wires to:

12%
39

8.2
6.4

Chicago

Dallas

0.80

15%

5.0

Egry Register Co.-

0.50

2.8

fl.00

21%

4.6

2.40

4.9

1.90

29%

Autograhic

Detroit

Natl.

(Texas)

Electric Hose & Rubber Co.—
Rubber hose

19
'

Electrical Products Consol.

•

1.70

Harbison & Henderson
H. A. Riecke & Co. Inc.

St. Louis.

6.4

San Francisco—

Spartanburg
23

0.60

1.40

28%

4.9

1.60

4.0

fl.45

46%

3.1

and

an¬

Arthurs, Lestrange & Co.
Fusz-Schmelzle & Co.

Walter C. Gorey Co.

A. M. Law & Co.

7.3

Manufacturer of crucibles, refrac¬
and

Underwood, Neuhaus & Co.

Pittsburgh

manufacturing

Electro Refractories & Abra¬
sives Corp.
tories

26%

and Middlebrook Inc.

Philadelphia

6.4

King and Company

Cohurn

Los Angeles

■

Bank

Rapids

Houston—

Public utility

Neon sign

Grand

Company

Baker, Simonds & Co.

Hartford

registers

El Paso Electric Co
El Paso

/. N. Russell & Co.

Dallas Union Securities

and

forgings
Edison Sault Electric Co
Operating public utility

Glore, Forgan & Co.

Cleveland—

railroad

tires, steel rings

abrasive products

Elizabethtown Consolidated
Gas Co.
Natural

gas

Troster, Singer & Co.

distributing utility

Elizabethtown Water Co.

(Consolidated)

Members: New York Security Dealers Association

Operating public utility

Emhart Manufacturing Co.—
Glass

industry machinery

TRINITY PLACE

NEW YORK

6, N. Y.

Details not complete as to
possible longer record,
t Adjusted for stock
dividends, splits, etc.
dd Bank paid 100% stock
dividend on Feb. 28, 1958,
nual dividend rate will be
$3.25 per share,
ee Plus 3 %
stock dividend.

Telephone HAnover 2-2400
new

3.3

4.0

to possible longer record,

stationery,
busi-

25%

possible longer record.

5.7

3.1

erstwhile

1.00

page 34.

Bank

FirstNatl.Bank (Baltimore).
First Natl. Bank (Birming.)—

1.20

Shuron Optical Co., Inc. follow¬
ing stockholder approval of sale
of company's business and as¬

6.9

0.625

5.8

(N. J.)

adopted

4.8

1.80

>2.90

CORP

banking
Company's advertisement

First City Natl. Bk. (Houston
First Geneva Corp

Bank

(Calif.)—

4.7
3.8

BOSTON

First Camden

6.7

35.00

46%
1300

1.30

6.2

paper, social and

record

30
...

50.00

8.3

England

4.6
5.1

4.3

0.30

Suffolk Downs

typewriter

Y, Y;

Cotton compress and
*

Assn.—

71
59

2.20

production

gas

Racing

3.30
3.00

t Adjusted for stock dividends,
splits, etc.

19%

equipment

Eastern Utilities Associates..

ness

3.40

5:8

resistant

29%

chaplets and chills

Fed. Compress & Warehouse

;

1.20

Eason Oil Co

Eastern

5.9

Fertilizers

6.3

28%

marketing reports and

Co.

Corrosion

6.1

FIRST

First Bank & Trust Co.

sets.

Shops, Inc

4.00

•

2.0

Shuron

4.8

holding company

Name

Federal Chemical Co

publications

Duriron

1.80

Chain of retail bake shops

6.1

38 :
*

Bradstreet Inc

Credit and

*49

Miscel. rubber goods,

3.5

'
—

"•

1.00

Bank

Federal Bake

industrial supplies

Industrial jacks and lifting equip-

Dun &

7.6

20%

nonferrous products

Duff-Norton

Faultless Rubber

41%

4.01
6.7

•

6.0

machinery and lawnmower

*22

Ducommun Metals & Supply
or

3.8

2.00

Diversified insurance

•

sharpeners

Furniture manufacturer

Bk.

23% '
4%

First Amer. Nat. Bk.
(Nashv.)
First Bank Stock Corp-

& Trust Co.

Long Beach

>0.94
0.30

Investment

Fate-Root-Heath Co

Furniture

2.60

Heavy machinery & machine tools

6.2

ma¬

equipment

Steel

products

0.9

abrasives

Merchants

Western fire underwriter

*24

screw

4.9
; 5.6

Trust

Firemen's Ins. Co. (Newark)

Manufactures locomotives, ceramic

—.

Metals and

Farmers

32%
83

Real estate and securities

7.5

132%

for foundries

and

1.60

4.65

Boston real estate

10.6

>1.20

Farrel-Birmingham

Drovers Natl.

3.00

Railway maintenance equipment

;

5.6

Fidelity Trust Co. (Pgh.)—
74
Fidelity Union Tr. (Newark)
64
Fifth-Third Un. Tr. (Cinn.)—
21
Fifty Associates (Boston)— *12

6.2

Operating public utility

Trust

23%

14
i

(South Bend)

Fanner Mfg.

Largest commercial printer in

Drexel

Fall River Gas Co

1.325

23
'

Fireman's Fund Insur. Co

Inc.

7.3

5.8

Co.

Gregg, Inc

16%

9.1

(Baltimore)
Fidelity-Philadelphia Trust—

Railway Motors,

6.7

Bank

Manufacturer

separators

1.20

2.3

16%

sirens, lights, traf¬

Finance Co. of Pennsylvania

Manufacturer of ball bearings
,

38%

1.50

6.8

Tobacco wholesaler

United States

rine

0.90

•

1957

and

(New York)—:
Ferry Cap & Set Screw Co.

1.4

fabrics

artificial

magnetic

Manufactures

(Youngstown)
Donnelley (R. R.) & Sons—

Dravo Corp.
Heavy engineering

0.80

1957

Co.

■

1.6

and glass

Drackett

fO.39

Paymts. i»
DecrSl,

0.90

Fidelity-Baltimore Natl. Bk.

*30

Inc
&

4.9

to mills

0.20

Restaurant and airline catering

Savings

3.00

Fairmont

■

Dollar

(Joseph) Crucible Co.
Houses,

0.40

co..

Inc.—

tion

Michigan newspapers

■

power

1957

Based

Federated Publications, Inc.-

4.5

molded

mills

Works

highway signs
Federal Trust Co.
(Newark)

•;

Fafnir Bearing Co

10.0

Operates theatre chain

and

4.0

Crucibles, graphite, paint

Dobbs

fO.94

and

holding and operating

Faber Coe &

Treasury securi¬

District Theatres
Dixon

Cotton

2.7

Discount Corp. of New York

fic

■

••

Manufacture

2.9

27%

Corp

Company

Exolon

0.10

Electric signs,

;' ■

Exeter Manufacturing Co

3.6

and

Federal Sign & Signal
Corp.

Federation

Operating public utility

company

Dime Bank

ties

;

4.25

Participating & non-participating
Exeter & Hampton Electric

6.0

Dicta¬

Dictograph Products Co
Holding

1.25

32
of

109

(Toronto)

Dictaphone Corp.
sale

1.25
j_

•

tiles

phone, dictating, recording
transcribing machines

163

Excelsior Life Insurance

specialties

Dickey (W. S.) Clay Mfg. Co.

and

8.4

Manufacturer of Portland Cement

1.9

products

Mills,

Water

„

Diamond Portland Cement__

Manufacture

3.3
:

Federal Screw

Screws and machines

157

Essex Co.

0.075

financing

Stamping Co

Pressed metal parts

Erwin

Textile

Divs. Paid

;

—

plastics

Dec. 31.

5.6

5%8

3.00

Erlanger Mills Corp

•>rY-

Co.

Resistor

Textile

1.10

2.00

production

Electronic

7.3

Operates bridge to Windsor

12 Mos. to
Years Cash Dec. 31,

Federal Insurance

Leased by New York Central

and power lawn mowers

Detroit International
Bridge.

oil

Quota-

5.0

■

Erie & Kalamazoo RR

'v-

0.30

reinsurance

Approx.
% Yield

Extras for

Equity

7.9

Y-■ v! Y
■".

No. Con-

1957

*34

■

>?4.6

^
„

auto

Including

"•

secutive

refining

Equitable Trust Co: (Bait.)—
Oil Co.——

6.5

.112%

and

(Wilmington)

""V

•

tunnel

Mfr.

1957

1.15

Equitable Security Trust Co.

■"

Multiple line Insurance

Casualty Insurance
Including predecessors.,

Multiple line

5.5

■-,■■■■■

international

1957

15
11

Employers Reinsurance Corp.

4.2

7.2'>

-70

Paymts. to
Dec. 31,
Dec. 31,

utility

Fire and

>28% V

0.55
'"YY/YY

Detroit Bank & Trust Co.__
Detroit & Canada Tunnel
Owns

bushings

public

gas

production

Empire Trust Co. (N. Y.)_—
Employers Casualty Co

6.3

>3.83

Detroit Aluminum & Brass—
*12
}■

Natural

Oil

•

1.20

Divs. Paid

Empire State Oil—

Denver-Natl. Bank (Denver) *34

Y '

4a.25*^ 17%

Based

tion

•'

1957

1,20
•Y-; I;,.': r'' ,V

„

•

Empire Southern Gas Co.—

Paymts. to
De-\ 31,

Dec. 31,

(N. Y.)

and

Based

tion

31,

1957

Dempster Mill Manufacturing

•

Quota-

12 Mos. to
Years Cash Dec.
31,

Cash Divs.

% Yield

Extras for

secutive

■'

Approx.

Including

'■

Approx.

Quota-

12 Mos. to

Years Cash

% Yield

Extras for

•'

'•

No. Con-

Including
;

Teletype NY 1-376; 377; 378

was

paid

page

Continued

Cash Divs.

from

Extras for

No. Con¬

Dec.

1957

Divs. Paid

Based

Quota¬
tion

Dec.

31,

Dec.

...

2.5

*33
21

4.50

114

3.9

2.50

3.5

2.00

39%

3.00

581/2

First NatL Bank (Shreveport)

1.40

FirstNatl. Bank (Wichita)

8.00

270

First Natl. Bk. T. (Okla. City)

1.00

3.00

49%

6.1

36%

6.8

1.40

30%

4.6

19%

4.6

145

—

2.90

58%

Drilling,

5.0

fl.25

5.5

15%

10.0

1.40

15%

9.0

29
tapping

3.8

1.75

6.7

1.00

4.8

Structural steel fabrication

Details not

t Adjusted for stock

.complete as to possible longer record,
t Adjusted tor stock dividends, splits, etc.

New

1.00

2.00

3.4

1.00

23%

4.2

0.40

8.6

National Bank

(Indiana)

—

Transit Co

Worth

Fort Worth bus service

8.0

Pressed Steel Corp.

2.00

Industrial lighting units
Fourth Natl. Bank of Wichita

*33

1.00

63'

0.15

3.3

1.00

ii%

8.9

1.25

33%

3.8

0.30

$0.40

Corp.

—

Manufacturer of oil,
water filters

air, fuel and

Wyoming Oil Co.—

Franco
Oil

and

exploration

production,
development

(Albert)-Guenther
Law, Inc.

Frank

2.5

54%.

0.7

6.8

4.0

14%

1.6

FRANKLIN LIFE INSUR¬

ANCE CO
; Life
•

insurance
Company's advertisement

See

facing page.

CO.

2.25

Refrigeration and air conditioning
equipment
• See Company's advertisement on page 48
11
0.40
Friedman (Louis) Realty Co.
New York City

Petroleum
and

annual rate.

agency

real estate

r0.23

Frontier Refining Co

dividends, splits, etc*

1.5

Gloves

Fram

I RICK

Forbes & Wallace, Inc., CI.
Dept. store, Springfield, Mass.

3.8

36%

1.375

10%

1.575

Co.

reaming,

Fort Wayne

Advertising

Fort Pitt Bridge Works

f0.58

machines

Sav¬

ings Bank of San Diego

and

work

transmission equip.

and

Foote-Burt

Bank of Roanoke

•

0.90
.

-4

Gears

6.7

Foote Bros. Gear & Mach

First National Exchange
FirstNational Trust

Aluma Craft boats.

First National Bank and

First National City Bank of
New York

0.65

City Ornamental Iron

Co.
2.50

1.7

1.00

Telephone Corp

Ornamental metal

operating public utility

Flour

4.2

19
containers

Fownes Brothers & Co——

(Jacksonville)

4.1

Quota-

Pa¬

Co.

per

Fostoria

Florida National Bank

Florida

Wayne Corrugated

Fort

Telephone company

(Tulsa)

3.9

5.8

FirstNational Bank & Trust

Trust Co.

5.6

38%

Serves Massachusetts communities

2.9

(Scranton)

39%

1.50

27%

FirstNational Bank & Trust

Co.

2.25

Trust

Florida Public Utilities Co¬

5.2

1.60

3.0

Extras for

3.3

f2.91

1957

Fitchburg Gas & Elec. Light

5.1

Based on

(San Francisco)

Co.

5.1

First NatL Bank (St. Louis).

Based on
tion
Paymts. to
secutive 12 Mos. to
Dec. 31,
Dec. 31,
Years Cash Dec. 31;
1957
1957
Divs. Paid
1957

Paymts. to
Dec. 31,

1957

% Yield

Including

Ft. Worth National Bank—_

Bank &

First Western
40

Paterson, N. J.~

31,

Bank holding company

1.00

tion

1958

Approx.

Cash Divs.

Corrugated shipping

31,

First Natl. Bank (Omaha)
First NatL Bank of Portland

ul.40

(Conn.)
22
Pennsylvania Banking &
Trust Co. (Phila.)
143
First Security Corp.
—
23

First Natl. Bank (Miami)
FiratNatl. Bank (Mobile)

Thursday, April 17,

No. Con-

Fort

Bank

1957

QuotaDec.

First

Paymts. to

31,

Approx.

12 Mos. to

secutive

Years Cash

31/

First New Haven National

'% Yield

Including

Dec.

Divs. Paid

-VAST, VITAL, AND VOLUMINOUS
Cash Divs.

12 Mos. to

Years Cash

% Yield

Extras for

secutive

THE OVER-THE-COUNTER MARKET

Chronicle

Approx.

Including

page

No. Con¬

financial

The Commercial and

(1740)

1.50

10.7

5.00

6.3

4.2

13%

7.4

production, refining

marketing

Fruit of the Loom,
Cotton

Inc

goods

Fuller Brush

Co., Class A

Brushes

Fuller Manufacturing

Co—

Manufacturing heavy duty trans¬
missions, forgings and axles

Market Cold

Fulton

1.00

fl.17

Storage

1.00

13.3

1.75

25%

6.9

Refrigerated warehousing

(Atlanta)

Fulton Natl. Bank

Galveston-Houston Co.

4.2

Holding company. Bus industry

Garlock Packing Co
Mechanical packings, gaskets, oil
and mechanical seals

seals

1.3

450

Gary Natl. Bank (Indiana)—

GENERAL
IfP

Ill
mm

f#l'M
WM-

CORPORATION

•lil

ALL

fire, casualty, accident and

sickness, bonding and

marine

%
f ?

lines

W.y/.yy

FINANCIAL STATEMENT, December 31, 1957

Cash in Banks and Office

Reserve for Claims and Claim Expenses. $ 42,988,444

6,261,415

Reserve for Unearned Premiums.

United States Govern¬
ment Bonds
.

Other Bonds

■A

57,810,920

...

Commissions, Taxes and

Other Liabilities

...

small

over

90 days due)

Other Admitted Assets

....

Total Admitted Assets.

1,946,694

...

——

bonding,

fire

Fire

Surplus to Policyholders

,$126,699,982

Total.

4.2

this page,
1.15
10

31%

3.7

33y2

3.6

f 1.19

2.50

3.3

2.00

20%

9.8

2.00

2.9

121

$2.33

5.5

1.00

13%

7.5

1.95

44%

4.4

0.40

8,4

1.00

25%

4.0

0.85

15%

5.5

1.00

15%

6.3

1.50

23%

6.4

0.35

4.8

0.50

5.3

1.25

33%

3.7

1.50

1.7

6.00

300

2.0

2.00

3.3

1.90

6.8

Wire cloth

Bank

40,775,601

(PhiladelDhia)

Gisholt Machine Co

$126,699,982'

Turret lathes and tools

Pulp and paper manufacture

are deposited as
required by law. Bonds and
requirements of the National Association of Insur¬
Commissioners; if valued at market quotations, Surplus to
Policyholders would be $38,221,264.

Glen-Gery Shale Bridk Corp.
Brick

manufacturing

Glens Falls Insurance Co
Multiple line insurance
underwriter

JAMES A.

Chairman of the Board

ROBERT L. BRADDOCK

N. BAXTER JACKSON

Executive Vice President.

Chairman of Executive
Chemical Com

Committee,
Exchange Bank

President, Empire Trust Company

RICHARD K. MELLON

Chairman, Mellon National

Hall, Haywood, Patterson & Taylor, Esqs.
ALBERT J.

HETTINGER, JR.

Bank and Trust Co.

Fire and allied lines of insurance

Economic Consultant

Goderich Elevator & Transit

Co., Ltd
Grain

President, Stone & Webster, Inc.

Kidder, Peabody 2 Co.

elevator

Good Humor Corp
Well-known ice

FREDERICK K. TRASK, JR.

cream

Hose, belting and packings

Gould Pumps, Inc

ARTHUR B. VAN BUSKIRK

Pumps and water systems

Vice President and Governor,

Govt

T. Mellon and Sons

Employees Insurance-

insurance—casualty

LUTHER G. HOIBROOK
Vice President and Governor,

CARL N. OSBORNE

T. Mellon and Sons

Cleveland, Ohio

retailer

Goodall Rubber Co. (class A)

Payson & Trask
FREDERICK L MOORE

iazard freres & Co.

Globe & Republic Insurance
Co. of America
OONALD B. SMITH

WHITNEY STONE

WILLIAM E HAlt

Portland and masonry cement

CATHCART, JR.

President

HENRY C. BRUNIE

47%j

Insurance

turing Co.

34,175,601

Securities carried at $6,700,999 in the above statement
stocks owned are valued in accordance with the

II!
m

2.00

production

Glens Falls Portland Cement

and

machines

DIRECTORS

10.3

Girard Trust Corn Exchange

EDWARD G. IOWRY, JR.

ill

6.9

17%

Gilbert & Bennett Manufac¬

l/^l

1.80

REINSURANCE

casualty,

Glatfelter (P. H.)

ance

0.50

other machinery

—.:

Giddings & Lewis Mach. Tool

$ 6,600,000

683,389

Surplus

3,328,712

Corp

Fire- and allied lines insurance

8,015,215

Premium Balances in Course of Collection

(not

8.3

Boring, milling and drilling

Capital......

114,479,772

Accrued Interest

4.5

elec¬

Company
♦

26,598,848

and

CORP.

Marble

••

makes

Also

Germantown

2,425,207

Other Common Stocks

1.65

tric motors

Georgia Marble Co

4,599,706

mm
M

Plastics.

• See Company's advertismcnt
Genuine Parts Co

30,321,016

Funds Held under Reinsurance Treaties.
Reserve for

Subsidiary
Companies.

1.00

allied lines

8,962,251

V'"4

General Industries Co.

Auto parts distributor

Stocks of

Total.

•?

Nebraska

All

$18,682,546

6.5

Marine

Preferred Stocks

•,

20y8

gas
distributor serving
Missouri, Kansas, Oklahoma and

GENERAL

liabilities

investments:

M
lil

1.36

Natural

Commercial printing

mi.

Gas Service Co

General Metals

assets

15.4

General Manifold & Ptg. Co.

|JJ

company

Southern producer

Largest American multiple line market dealing exclusively in Reinsurance

I-

$0.50

.-—

holding

General Crude Oil Co

II:

6.00

Transportation

Gary Railways, Inc

REINSURANCE

and

fire

Grace Natl. Bank of New York

ETHELBERT WARFIELD

Satterlee, Warfleld A Stephens, Esqs.

Grand

Trunk

Warehouse

Cold Storage Co

Detroit ice manufacturer

Home

m
r

Midwestern

Pacific

Office:

Department:

400 park avenue, new york 22, n. y.

Graniteville Co.
Cotton fabrics

1012 Baltimore building, Kansas city 5, mo.

•

610 so. harvard boulevard, los angeles 5, calif.

complete as to possible longer record,
dividends, splits, etc.
special distribution of $4.50 paid on Dec. 2 iias not been

Details not

t Adjusted for stock

t A

included in this amount.

w,'//,'/H..mm.i

„i,.'

,/■

orl

■nrsfino

Volume 187

Number 5734

The Commercial and Financial Chronicle

(1741)

; ■•■

■

♦

;• < .

Chas. E.

Becker, President

J4 years

Statement

cAssets
Cash

First

...

Loans

of Condition

...

Policyowners

of January /, 1958

$ 10,681,668.91

200,055,217.02

...

118,112,400.94

21,168,504.44

(Including $14,668,019.74 of properties acquired for investment)
Premiums in Course of Collection
...

(Liability included in Reserve)

the dur

progress

year

19$7

2,770,150.08

♦

New Paid Business

$701,477,179.00

1,371,412.76

•

15,501,218.23

Other Assets

our

Interest and Rents Due and Accrued

(High faints of

29,333,510.99
20,616,828.33

(Secured by Legal Reserve)

Real Estate

169,543,081.87

Real Estate

Housing Administration Real Estate Loans

$ 30,512,135.15

......

Mortgage Loans

Federal

of distinguished service

""United States Government Bonds
♦Other Bonds

Home Office: Springfield, Illinois

•

$419,610,911.70
Asset Increase

liabilities
Legal Reserve

$43,836,056.19

Outstanding Contracts

$331,018,640.00

Premiums and Interest Paid in Advance

Other

8,212,637.60

Policyowners' Funds

Reserve for Taxes

Payable in 1958

$33,337,981.00

2,455,000.00

Accrued Expenses

•

Suspense Accounts
Other Liabilities

Increase in Reserves

26,029,506.68

•

698,880.84
2,934,853.39

Increase in

Surplus Funds

2,111,393.19

......

$7,400,000.00

$373,460,911.70

Surplus Tunds
Capital
General

•

are

valued

policyowners and

•

30,540,625.00

$15,609,375.00

•

$26,625,580.70
46,150,000.00

$419,610,911.70
*Bonds

beneficiaries during year

•

Surplus

Payments
.

prescribed by the National Association of Insurance Commissioners.

Payments to policyowners and
beneficiaries since 1884,

plus funds currently held

insurance in

for their benefit

force

ofer

$2,800,000,000

the largest legal reserve stock life
insurance company in the

united states devoted

exclusively to the underwriting

of ordinary and annuity plans

$600,405,195.88

^ '

92,

The Commercial and Financial Chronicle

<1742)

Continued from page

Cash Divs.

secutive

Cash Divs.

Including
No. Con-

Extras for

Quota-

secutive

12 Mos. to

tion

Years Cash

Dec. 31.

Divs. Paid

1957

Dec.

31,

Approx.
% Yield
Based on

Years Cash

Hanover Bank

(The)

(N. Y.) 106

Van

Winkle

*15

5.0

1.50

30%

5.0

Diversified insurance

Works

Grain handling

17%

1.7

and engineers

Hartford Fire Insurance

1.60

2.4

Great West Life Assurance

Green (Daniel)
House

Co.—

2.2

180

*21

5.00

1.00

19%

f0.43

1.00

11 %

11%,

Grinnell

Beer and

f3.80

95%

f0.49

—

20%

0.50

Timber

2.4
2.2

1.55

1.25

3.9

Haloid Co

fO.95

4.3

4.5

2.50

73%

3.4

1.95

4.4

Manufacturer

1.29

19%

6.6

pigment colors

f0.99

4.7

0.20

3.9

47%

3.5

4.2

products

papermakers'

industrial

1.40

6.7

fabrics,

struments

and

felts,

precision

control

in-

devices

Idaho First Natl. Bkif (Boise)
Ideal Cement Co._-;___iL_L___

2.7

.?•

f 0.8S

2.00

51%

3.9

1.75

29%

5.9

2.00

31 '

6.5

f0.98

16%

5.9

2.45

4.4

0.50

2.8

1.00

18%

5.4

2.00

32%

6.2

Western

southern

producer

wallpaper

and

Sugar refining '
Gas and

7.6

2%
34

2.50

7.4

0.80

1.50

14%

3.00

6.2
10.2

—

water

utility

Indianapolis
Telephone Corp
-

Operating public utility

Indianapolis

Water

Operating water utility

Industrial Bank of Commerce

fl.67

64%

2.6

Lumber Co.

—

48%

1.6

0.80

processes

fl.16

5.3

2.50

7.4

Dairy

14%

25%

4.7

0.60

7.7

(N. Y.)

.2,00

distance

long

34%

0.35

Property insurance
Home Telephone
and

Diversified

*53

10.00

350

Title

Hamilton National Bank

Hook

(Knoxville, Tenn.)

26
29

Hancock Oil Co., Class B

8.00
v0.60

345
*

2.0

Hooven & Allison Co.——_

marketer of

Company

Hoover

1.80

1.00

15%

6.5

0.45

5.0

15.00

18.3

Second Table

3.50

3.5

Co., Class B

Barbizon, Inc

New York
*

2.20

15%

1.42

20.00

500

4.0

City

Details not complete as to

Details not

possible longer record.

Page 54.

1.50

4.7

1.10

19%

5.5

1.30

25%

International Holdings, Ltd..
Investment

10.48

trust:—'hydro-electric

complete

tive in January,

1958.

•••

...

Interstate Bakeries Corp
•

to possible longer record,
f Adjusted for stock dividends, splits, etc.
rt Dividend and year-end quotation adjusted for 5-for-l split effec¬

T Adjusted for stock dividends, splits, etc.
Plus 4% payable in class A stock.

5.7

Reinsurance—multiple lines

Goal, Iron, steel

▼

Starting

Inter-Ocean Reinsurance Co.

Vacuum cleaners

Hotel

0.80

4.1

interests

(M. A.), Class B

2.9

Over-The-Counter Consecutive Cash Dividend

(P. H.) Knitting Co.-

175

6.1

Ropes and twine

Uhderwear and sportswear

5.00

Indiana drug chain

2.3

30 *

4.2

Payers From 5 to 10 Years Appear in the
-

Drugs, Inc

Guaranty

insurance

Title insurance

2.9

Title

Operating public utility

phone

(Brooklyn, N. Y.)

(Chattanooga, Tenn.)

1.40

con¬

insurance

Inter-County

Home Title Guaranty Co.

Hamilton National Bank

4.8

sale

shovels, etc.

Insurance Co. of the State of

5.9

service

6.9

steel products

and

cranes,

Inter-Mountain Telephone

Holding company—auto financing

and Tele¬
graph Company of Virginia

1.00

Manufacture

& Mortgage Co

0.39

4.9
3.8

Insley Manufacturing Corp..

5.0

31
38

(Prov.) al66

Pennsylvania

4.0C

1.45

*31

Savings, trust and mortgages

terias and bakeries

Local

1.00

1.20

& Trust

Industrial Natl. Bank

struction

—_

Industrial Mortgage
Co. (Ontario)

logging and processing

Home Finance Group, Inc.—

(New York)

5.7

Home Insurance Co.

Hamilton Mfg

•

7.4

fl.90

36%

Operation of food markets, cafe¬

3.9

—

Ohio merchandise distributors

Hanna

1.50

Huyck ;(F. C.) &, Sons

Electric and hydraulic power,
industrial steam and real estate

Home

Plumbing, heating and air condi¬
tioning supplies

Hanes

Corp,

(Ohio)

Holyoke Water Power Co

Producer, refiner &
petroleum products

;

utility

Indiana

(New Orleans)
Higbee. Co.

treatment chemicals

and

1.40

4.9

38%

2.65

(Tom) Peanut Co

1.425

Department store

Halle Bros.

Wood

—

5.6

Hines (Edward)

Inc

1957

Indiana National Bank of

3.3

insulation products

copying

Columbus
Huston

5.4

f3.73
fl.95

accident

papers,

1957

-V

Huntington National Bank of

3.00

ale

Hibernia Bank (San Fran.)
Hibernia National Bank

Hagan Chemical and Controls,

Photo

Southern Texas

2.00

2.3

31,

com¬

Indiana Gas & Water Co., Inc.

5.3

337

casualty insurance

Gustin-Bacon Mfg. Co

Water

utility
electric

Confection .and food

128

1957
..

Imperial Sugar Co

66%

18.00

surety bonds

Hajoca Corp.

9.5

Canvas products

4.0

Gulf Life Insurance Co.

fibre

10%

* •

Dec.

Maker of furniture

Guaranty Trust Co. (N. Y.)—
Gulf Insurance Co. (Dallas)

and

1.00

•

Inc.—

public

and

gas

Heywood-Wakefield Co.

(Montreal)

(Jacksonville, Fla.)

pany,

Pennsylvania

Guarantee Co. of North

alass

7.8

■

Imperial Paper & Color Corp. a24
_

Hettrick Manufacturing Co._

Corp.

Life

Gas

Hershey Creamery

Sprinklers & plumbing equipment

and

Holding company

8.7

tanning

Fire

3.50

Produces dairy products in

Leather

and

2.9

Sale of gas

3.7

welding equipment and

Pldelity

machinery insurance

welding studs

America

rt2.40 1

Housatonic Public Serv. Co._
Connecticut

Insp.

Heidelberg Brewing Co

Griess-Pfleger Tanning Co— *17

5.1

.y;

Paymts. t«

tion

-Dec. 31,1

31,

rooms

Boiler

Haverty Furniture Cos

Syracuse,

606

Manufactures

(Cambridge)

5.2

Vegetable canning & distribution
8tud

f0.32

Hotel

Harvard Trust

7.1

*34

slippers

Gregory Industries, Inc

6.7

■<*

.• •

107

Haverhill

4.00

Life, accident and health

Green Giant Co., Class B

4.6

Hartford Natl .Bank & Trust 126

Boiler and

43%
29%

'..

;

Insurance

and Insurance Company—

(Winnipeg)

2.00

Dec.

Years Cash
Divs. Paid

;

equipment

Hartford Steam

1957

2.00

Based

Quota-

12 Mos. to

secutive
'

Hart-Carter Co.

Life, accident and health

Co.

1957

„■

$ V'

Hartford Gas Co.

0.30

Shipbuilders

Based

Paymts. to
Dec. 31,

Houston Natural Gas

Diversified

Great Southern Life Ins. Co. *33

31,

% Yield

Including
Extras for

No.Con-

Penn-Harris Hotel

0.80

Diversified insurance

Great Lakes Engineering

tion

Electroplating and polishing
equipment

Harrisburg Hotel Co
25

Great Amer. Ins. Co. (N.Y.)

1957

Divs. Paid

Harris Tr. & Svgs. Bk. (Chic.)

Company

QuotaDec.

31,

Multiple line insurance

Hanson

1957

Great American Indemnity

Dec.

Hanover Fire Insurance Co— 105

Paymts. to
Dec. 31,

1957

12 Mos. to

(

-VAST, VITAL, AND VOLUMINOUS

Extras for

Appro*.

Cash Divs.

% Yield

No. Con¬

THE OVER-THE-COUNTER MARKET

Thursday, April 17, 1958

Approx.

Including

Restaurant

chain

•

5.3

10.9

Investors

Mortgage5Company
^
(Bridgeport) —11
*32

Real

Insurance

estate,

gages

and mort-

Electricity

Service

;w.

......

0.80

14%

5.7

1.28

6.1

pxl.70

5.5

27
1

1.00

16%

6.1

supplier

Iowa Southern Utilities Co.—
Electricity

supplier

Irving Trust Co. (N. Y.)

Ivey

2.50
;.

„

Iowa Public

YOURS FOR A HEALTHY 1958!

5.0

Baking bread and cakes

Interstate Co.

(J. B.)

& Co

—

Department store chain

Jacksonville

Gas

•'

Corp

•

}

—

0.045

0.6

Engraving Co.

0.25

2.00

7.1

1.20

17%

Operating public utility

Jahn & Oilier

Photo-engraving

Jamaica

Several

years

Upson, the world leader in the manufacture

ago

laminated wood fibre
An

tion.

concerted
with its

wallboard, embarked

among

policy of diversifica¬

was

Island

Jantzen

equipment

FlpptvirfiT

Life

6.8
,

f0.74

0.60

f 1.15

(•

3.5

7.5

manufacturing

Jefferson Electric Co._
Jefferson

6.1

water supplier

Inc.

Havippq

Life

Standard

Ins.

58%

1.7

2.00

4.9

a25

1.54

0.60

,19

0.25

*23

2.00

47%

4.2

2.00

21 %

9.4

0.80

12.8

2.00

42%

4.7

insurance

Jenkins

initiated.

Co.—

Manufacturing Co

Sportswear

development plus

outside companies for products compatible

existing distribution facilities

Long

James

Manufacturers of farm

accelerated program of research and
search

Water Supply

Bros.,

Inc

Valves

Jersey Insur. Co. of N. Y

5.9

Multiple line insurance

Money thus
sional

spent

is beginning to bear fruit.

stabilizing compounds,

with

silicones,

are now

Refrigerators and stove hardware

Johansen Bros. Shoe

augmented and improved line of panel

products and Silitex, tlie waterproofing
tains

New cellulose dimen¬

Jervis Corp.

cement

base coating that

reaching the market. This

new

con¬

business together

Shoes

for

Johnson

8.3
-

8.3

women

Service

Temperature and air conditioning
controls

Jones & Lamson Machine Co.
Lathes, grinders, comparators,
threading dies
.

steady increases showing in both the Industrial and Export Divi¬

sions hold promise of

good 1958 for The Upson Company.

Joseph & Feiss Co
Manufacturers

men's clothing

Joslyn Manufacturing &
Supply Co
Electrical and communication
line

Julian

Kokenge Co

Women's

THE

UPSON COMPANY

LOCKPORT, NEW YORK

pole

equipment

Kahler

1.35

8.4

1.70

31%

5.4

shoes

Corp.

—

"42

Hotels, restaurant and laundry
operator
*

Details not complete

to possible longer record

t Adjusted for stock dividends, splits, etc.
a

Including predecessors,

px A 2ri>

stock dividend

1958.

was

declared Nov. 27,

1957, payable March

Volume 18

Number 5734

The Commercial and Financial Chronicle

(1743)

THE OVER-THE-COUNTER MARKET

Cash Divs.

-VAST, VITAL, AHO VOLUMINOUS
Casn

% Yield

secutive

12 Mos. to

Dec.

Divs. Paid

Pulp

and
paper,
specializingprotection papers

food

Quota-

Based

tion

31,

Earth

Paymts. t»
Dec. 31,

Dec. 31,

1957

Koehring Co.

1957

Va.)

*73

8 00

175

>1.25

insurance

Kansas City Life Ins. Co.___
*34
Non-participating life
.VKansas City Structural Steel
10
and

Kansas City Title

Insurance

0.8

4.7

Lake

4.8

54%

1.00

Kellogg Co: (Battle Creek)__

0.60

5.0

1.75

Refining Co.

6.5

Wholesale

less

1.70

Its

1.10

cident Insurance
Non-participating life
Kentucky Stone Co

8.7

& Ac¬

5.00

100

2.00

351/2

1.28

insulated

wire

2.00

manufacturing

f3.91

4.7

Lincoln

0.15

8.0

Co.

f0.76

21%

Company

0.17

work,

utility
,1

and

6.8

Life

8.5

•1.00

131/2

1.00

Natl.

of Fort

Bank

8.1

10.19

Bank

4.2
3.3

0.69

13%

northern

•

5.3
-

2.45

21 %

11.4

3.00

0.70

7.6

0.30

3.3

1.00

5.9

1.00

23%

4.3

4.00

6.5

electrical

products

clocks

and

tim¬

wound

4.2

3.50

Cast iron

6.9

HI.

0.40

8.0

supplier

gas

Lyon Metal Products, Inc

IT .24
f0.92

31%

8.9

■»

Macco Corp.

3.9
1.2

Oilfield

0.60

construction

and

main-

107/s

5.5

tenance

1.50

,;.h:

Macmillan Co

5.3

28%

1.50

/ 26

1.55

8.2

0.60

11%

5.2

1.80

43%

4.1

Macwhyte Co.
2.40

2.00

8.7

1.20

6.0,

2.35

180

1.80

5.8

Wire, rope, cables

4.8

Mading Drug Stores Co
Houston

0.80

241/2

3.3

0.60

16%

3.6

Wisconsin utility

Magor Car Corp
Railroad

go2.40

f 1.19

2.8

1.75

171

1.0

Fabricated

2.7

Lincoln

fl.04

221/4

4.7

Lock Joint Pipe

Stores, Inc,

and
...

insurance

2.30

12.00

4.9

46%
138

0.70

60.00

Mfrs. & Traders Tr.

1.3

(Buf.)__

1.10

(N. Y.)

2.00

- -

5.1

22%

-4.8 '

39%

5.1

Maremont Automotive Prod-

7.0

ucts, Inc.

0.75

14%

5.1

Auto parts

5.5

1,100

;

Manufacturers Trust

8.7

Mfrs. Natl. Bank (Detroit)—

steel

Manufacturers Life Insur. Co. *49

Dept. store chain in New England

sewer

structural

sheet metal products

Co.

Building Co.

rolling stock

Mahon (R. C.) Co

3.6

Trust

drug chain

Madison Gas & Electric Co.__

real estate

461/2

and

products

Lynchburg Gas Co

Life

1.25

California

Lux Clock Mfg. Co

4.5

insurance

Water

0.50
"

Lynchburg Foundry Co

South¬

fl.25

Automotive

Trust

Wayne

products.

15
26

Well-known book publisher

Creamery

(Ky.)__

Typesetting equipment

credit

Springfield,

Operating public utility

4.6

Fabricated steel products

Lincoln Square

chain

Manufacturer

7.4

blinds,

1.15

estate

Typograph Co

Natural

Lincoln Rochester

;

real

Luminator-Harrison, Inc

play

Lincoln Natl. Life Ins. Co.__

11.

Venetian

Kittanning Telephone Co

ern

32.50

'drapery hardware

stain¬

3.5

r,.

•

3.0

ing mechanisms; electric & spring

Lincoln Natl.

Inc

Crude oil produced

dairy

0.75

Life, accident and health

Kinney Coastal Oil—

Wholesale

die,

City
Casualty Ins. of Tenn.

Cotton seed products

Knudsen

and

Co. of Oklahoma

Kingsburg Cotton Oil

Jute and burlap

6.1

aircraft

Life &
83

Ludlow Mfg. & Sales

2.4

Liberty Natl. Bank & Trust

6.5

and

Company, Brooklyn, N. Y.

Manufacture

food

Ludlow
71

(The)-JCompany

Kirsch

0.50

410

Liberty Natl. Bank & Trust

5.1

cable

Book

10.00

Kings County Trust

*=38

5.6

251/s

0.60

by-products

California

Savings

steels

Consumer

Electricity supplier

7.9

Lucky Stores, Inc

5.1

Non-participating

Crushed stone

Kingsport Press,

Liberty Bk. of Buffalo (N.Y.)
Liberty Life Insurance Co.__

5.0

Starting-light equipment for autos
and

Kentucky Central Life

Kentucky Utilities

tool

clothing

Service station
equipment

Manufacture

1.75

grocer

speed,

Mfr.

4.8

Hi/2-

1.00

4.2

17%

Bleachery, Inc

Retail

Trust

Leece-Neville
10

2.4

Ishpeming

cut¬

Organization

1.40

Bleaches and dry cotton goods

10.0

22%

•41

Lowell

27
15

compositions,
ting tools and specialties

•

products

carbide

1.40

17
and

Louisville Trust Co.

products

Manufacture of air moving equip.

Kennametal Inc. __1

a62

Louisville Title Mortgage Co.

5.4

22%

1.00

Laboratories, Inc.__

Producing, refining and marketing

Kerite

1.1 20

Household electrical products, etc.

High

6.3

company

Title insurance

Landers, Frary & Clark

4.7

30%

2.00

dressings, elastic goods,
specialties and
pressuresensitive industrial tapes
..>>/■ -V

Kent-Moore

Variety store chain

7.9

37V4

7.3

27%

Co.

and

(Chicago)

6.3

textile

and

•6.8

Company (The)

petroleum

117

Operating railroad

Bank

dry cereals

Surgical

8.00

Rice

gas

1.75

Louisiana State Rice Milling

4.5

Utility equipment

Hard

(electric,

Superior

Lake View

Milling machines

Kendall

utility

2.05

Operating public utility
Los Angeles Transit Lines—
Traction

2.60

6.7

Lorain Telephone Co

6.3

(Chicago)

1.75

1957

Brewing Co

manufacturer

Pharmaceutical

1.00

1957

0.20

Manufacturer of Portland Cement

8.6

Paymts. to

Dec. 31,

water)

Lakeside
2.50

0.30

tion

Dec. 31,

Lager beer

wholesales men's

steel

Public

21%

production, transmis¬

Kearney & Trecker Corp
Leader in

and

31,

Based

the candy field

4.3

14%

Quota-

Longhorn Portland Cement__

Lake Superior Dist. Pwr. Co.

distribution

Kearney (James R.) Corp

Kendall

5.2

1060

1.00

Title insurance,
abstracts, escrow

and

f0.63

bottled pickles

clothing
La Salle Natl. Bk.
Laclede Steel Co

Kansas-Neb. Natural Gas Co.
sion

4.6

tanks

Company

Natural gas

Makes

Basic

8 00

Loft Candy Co

smelting

Canned vegetables,

Fire & Marine
Insurance Co.

Buildings, bridges

metal

Dec.

Divs. Paid

7.0

Leader In

Kuner-Empson Co.

Kansas City

Multiple-line

and

12 Mos. to

Years Cash

1957

14%

% YleW

Extras for

secutive

Paymts. ta
Dec. 31,

furnaces

4.8

Kanawha Valley Bank

(Charleston,

No. Con-

Lone Star

Kuhlman Electric Co

1957

2914

$
1.00

tion

Dec. 31,
1957

Appro*.»

Including

moving and construction

Transformers

tl-41

31,

1957

Based

equipment

Kalamazoo Veg. Parehm't Co.

Dec.

Cash Divs.

% Yield

Quota-

12 Mos. to

secutive

Years Cash

Approx.

Including
Extras for

Years Cash

Extras for

Divs. Paid

No. Con-

Approx.

Including
No. Con-

-43

pipe

Details not complete as to possible longer record.
w

■

Details not complete

to possible longer record.

t Adjusted for stock dividends, splits,

We maintain

etc.

continuing interest in

Strutliers Wells

Details

Plus

t Adjusted for stock

not

t Adjusted

20'/o-

complete as to possible longer record,
for stock dividends, splits, etc.
stock

dividend

0x1

July

16,

dividends, splits, etc.

Including- predecessors.

Continued

1957.

For Banks,

Corp.

Brokers, Dealers only

Common

If it's Over-the-counter
u

••

•

Valley Mould & Iron Corp.
•'-Common

Your Customers Get Better Service When You

Inquiries invited
.j.'

T. L. WATSON & CO.
Established

Try "HANSEATIC"

1832

Because:

MEMBERS

New York Stock Exchange
25 BROAD

•

American Stock Exchange

ST., NEW YORK 4, N. Y.

Telephone WHitehall 4-6500

"HANSEATIC"

makes

primary

markets

Teletype NY 1-1843

"HANSEATIC'S"

nationwide

"HANSEATIC'S"
knows

...

any

stock

than 400

OVER-

your

large,

serve

wire system reaches banks,
United States, almost instantly.

experienced

your

combines

Trading
OTC requirements.
its

seasoned

Department

knowledge

and

really

reliable

benefit, providing better markets, faster.

;
Next time you need maximum OVER-THE-COUNTER service,
why not Try "HANSEATIC"?

these pages?

For latest prices,_ quotes,

how

"HANSEATIC"
service

private

brokers and dealers throughout the

Interested.

THE-COUNTER securities.

information,

New York Hanseatic Corporation

simply contact—

Established 1920
Associate Member American Stock

Marketing Department
120

Merrill Lynch, Pierce, Fenner
70 PINE STREET

Smith

NEW YORK 5,

Offices in 112 Cities

N. Y.

BROADWAY

•

Exchange

NEW YORK 5, N. Y.

Telephone: WOrth 4-2300
BOSTON

•

CHICAGO

Teletype: NY 140-1-2
•

PHILADELPHIA

•

Private Wires to Principal Cities

SAN

FRANCISCO

'"'am

page

The Commercial and Financial Chronicle
44

Thursday, April 17,

...

1958

(1744)

Growth of Petrochemical

Markets

Depicted by Northern Trust Go.
tremendous strides

fibers, and ammonia, are

the

Chicago, 111., has noted many en¬
couraging facets are to be found
in the continued growth of the

petrochemical markets.
The

monthly

"Business

letter,

Comment," points out that "the
production of chemicals from pe¬
troleum and natural gas raw ma¬

terials has grown at an

extremely

rapid rate in the postwar period—•
roughly 15% annually compared
with 10% for the composite chem¬
ical industry and 4% for total in¬
dustrial production. This growth
reflects the rapid expansion of
the major markets for petrochem¬
ical end-products, such as plastics,

synthetic rubber, synthetic fibers
end agricultural chemicals. Cur¬

by substituting for natural mate¬
rials
where the quality of the

synthetic product may not be su¬
perior but has an economic ad¬
vantage, and by creating uses for
which
no
existing material is
suitable.

development of the

"The rapid

dominated

Uses

"The

fob

basis

lies

pretrochemicals

of the

growth

abundant raw

bination

mate¬

eeasily processable at low
cost. The ready adaptability of oil
and gas hydrocarbons to chemical
6yn theses has resulted in a high
rate of discovery of new deriva¬
tives by industry research. These
rials,

have

derivatives

development of

end-products.
markets by these

materials

new

has been accomplished by replac¬

ing natural materials
eynthetic

has

where

superior

the

qualities,

based
leum

developed,

gas

have

sistance

are

wear,

life

are

earlier

year

level.

ammonia

DEALERS

and
its

used

Asheville

foodstuffs

ant

CIHCAGO

Raleigh

market,
borne

Richmond

and

Meat

1885

many

acid

3.3

fO.97

3.0

0.80

1.8

0.15

6.0

4.00

58%

6.8

ammonium

and

23
\

Manufacturers
,

•'

1.40

6.4

distributors

1.75

24%

7.1

spices, extracts, tea, etc.

Operating public utility
•

possible longer record,
dividends, splits, etc.

Details not complete as to

t Adjusted for stock

than

double the
forms,

the primary

transport

insect-

Interested.
...

in any stock on

these pages?

i
For

latest

prices, quotes, or information,

simply contact—
Marketing Department

Merrill Lynch,

Pierce, Fenner & Smith
NEW YORK 5, N.

70 FINE STREET

Offices in 112 Cities

■v

Growth
are

the

base

Members Neiv York Slock

aver¬

lished

Street, New York 5

DEALERS

come

from

con¬

Guaranteed

Leased Line

areas

all

into

indicate

that

Robert Morris Adds
HARTFORD, Conn.—Norman E.

^
r

Steinberg is with Robert S. Morris
&

Co., 100 Pearl Street.

Common

estab¬

(Special to The Financial Chronicle)
,

Preferred

Bonds

Unlisted Investment Stocks
New York 5, N. Y.

120 Broadway

MEMBERS NEW YORK STOCK EXCHANGE AND OTHER PRINCIPAL

and

and the con¬

uses

penetration

Exchange

RAILROAD SECURITIES

growth prospects remain excellent
for the petrochemical industry."

TORONTO

and American Stock

expenditures, the wide di¬

versity of end

tinuing

offices in the United States and Canada

30%

Western softwood lumber

development
of
new
products and new routes to old
products. The impact of large re¬

THOMSON & MSKINNON

1.00

products,

zinc

McCloud River Lumber Co.-

tinued

SECURITY AND COMMODITY EXCHANGES

chemicals will

zinc,

Thus, as in the past, much of the
growth
anticipated
for
petro¬

United States and Canada

6.7

processing

annual rate of 14% during the
postwar
period,
now
approach
one-half billion dollars annually.

and commodities in the

INDIANAPOLIS

41/2

Rubber goods

Synthetic

which have increased at

listed, unlisted securities

CHICAGO

4.2

0.30

age

11 Wall

2.4

108

rapidly growing
products of the chemical industry,
including propellants for aerosol
sprays and products for the syn¬
thetic detergent and drug mar¬
kets.
Research expenditures in
the synthetic chemical industry,

BROKERS
in

4.50

McCandless Corp.

"Petrochemicals

FOUNDED

tl.50

Hegeler Zinc

Research the Key to Vigorous

for

5.6

many

for

Future

28%

Mayer (Oscar) & Co., Inc.—

Direct Wire to all Offices

1.60

Meadville Telephone Co

controlling

diseases.

3.6

sulphate

larger, more efficient
farms.
In
addition,
synthetic
chemicals are converting waste¬
land to pasture through weed and
brush killers, snuffing, out garden
weeds, fighting insect pests, help¬
ing to store and preserve import¬

Members Midwest Stock Exchange

sulphuric

tilizers and

& Company

fl.86

insurance

Co.

of nitrogen by the fertilizer
industry,
where
approximately
80% of output is consumed. Con¬
tinued strong growth in ammonia
seems
assured
considering
the
trend toward greater use of fer¬

1919

5.0

Conveying equipment

ammonia production of 3.7 million

11%

siding

Petrochemical

was

fl-20

Mathews Conveyor Co

"Ammonia is by far the largest

1957

6.7

McCormick & Co. Inc

and tonnage petrochemical.

•

Imprinted brick and insulating

syn¬

Ammonia the Largest Volume

Mastic Asphalt Corp

main¬

the

into

1.75

•

attitudes which may

manufactured

~
26

Real estate

thetic product.

INCORPORATED

Greenville

Finance

sociation, Inc.

of total tex¬

lower

5.2

1.50

Accident and health insurance

creasing, mois¬

and

Massachusetts Real Estate Co.

increased

has

4.8

and wholesales

Co.

surance
Diversified

the

longer

tenance

Securities

Atlanta

2.6

230

Massachusetts Protective As¬

ture, sunight and insects, as well

Corporate and Municipal

NEW YORK

1.85
11.00

Maryland Trust Co. (Balti.)_
Massachusetts Bonding & In¬

source

CHARLOTTE

20
*13

Ship construction, conversion,
repairs and
manufacturer of
Industrial products

natural product,
it is expected that this propor¬
tion will continue to grow. Re¬

1951

R. S. Dickson

6.8

Producer

the

Established

18%
71%

financing

Matthiessen

superior

polyethylene, poly-

DISTRIBUTORS

automobiles,

represents 10%

tons

UNDERWRITERS

1.25

Insurance

production. Since many qual¬
ities of the man-made fibers are

been

low-

4.5

Maryland Shipbuilding &
Drydock Co.

tile

including

high-density

Auto

major market

production

entirely on petro¬

natural

—

Credit

Maryland
Corp.

for

threefold in the last six years and
now

the decade.

almost
or

Diversified

rubber, but new uses,.such as
belting and air-suspen¬

fiber

"The tremendous strides of the

over

3.7

15%

Ilsley Bk. (Milw.)

Manufactures

growing at a fast rate. Another
strong area of petrochemical ex¬
pansion has been in synthetic tex¬
tile fibers. Synthetic noncellulosic

plastics industry in the postwar
period
are
indicative
of
the
growth of the petrochemical mar¬
kets. Plastics production approxi¬
mated 4% billion pounds in 1957,
a 7% gain over 1956.
This repre¬
sented an 82% increase in volume
in the last five years and a 240%
gain

the

constitute

sion systems for

value.

the

f0.69

hardware and kindred lines

conveyor

During this
great diversity period, a large number of com¬
new
plastic
materials
Penetration of pletely
permitted

for

upgrade raw materials to chemi¬
cals to achieve a higher unit sales

the fact

that in petroleum and natural gas
are
found the convenient com¬

|2.00

Marshall-Wells Co

to World War II. Automobile tires

still

1957

Mfr. ball acid roller bearings

Marshall &

rub¬
ber in 1957 as compared with 43%
in 1950 and virtually nothing prior

capital

DecL 31,

;

Marlin-Rockwell Corp

the total consumption of new

cant reductions are

31,

1957

(Los Ang.)—

Retail market chain

petrochemicals is synthetic rub¬
ber, which accounted for 63% of

current

tion
Dec.

31,

1957

of Milwaukee

Market Basket

This

Dec.

Marine Natl. Exchange Bank

Fibers

outlays

Plastics

12Mos. to

Maryland Casualty Co

generally, where signifi¬
in prospect for
rently, petrochemicals account for
the current year. Although chem¬
over 25% of tonnage output of the
ical companies still dominate the
chemical industry. The value of
petrochemicals produced is even petrochemical field, there is grow¬
more
significant,
representing ing competition from petroleum
More and more oil
over
50% of chemical industry companies.
companies seek to diversify their
sales.
operations and, particularly, to
Wide Variety of End-Product

secutive

Divs. Paid

Based on
Payrnts. to

Quota-

Extras for

Years Cash

Synthetic Rubber and Synthetic
growing market

% Yield

Including

material, this is likely to be
the first plastic to attain an an¬
nual volume of one billion pounds.

"Another

Approx.

Cash Divs.
No. Con-

inal

rise

year,

sharp contrast to the
trend
in manufacturing

-VAST, VITAL, AND VOLUMINOUS

paper,

than the orig¬

heat-resistant

and

equipment, often involving the de¬
sign of entirely new manufactur¬
ing processes. Annual capital out¬
lays climbed from less than $500
million in 1955 to $900 million last

is in

page

THE OVER-THE-COUNTER MARKET

plastics group has been shown by
polyethylene, the production of
which jumped eightfold from 1951
through 1957.
Output registered
a
23% gain last year to nearly
700 million pounds.
Aided by a
broadening of markets from a new
type of polyethylene, more rigid

petrochemical industry in recent
years
has required heavy ex¬
penditures for new plant and

and are scheduled to
further in the current year.

from

wood, metals and other materials.
The
most rapid
growth in the

described by large Chicago bank.

March, 1958, newsletter of
Northern
Trust
Company,

The

have

Continued

markets

invaded

materials

formerly

petrochemicals to outpace chemicals generally and
achieved in plastics, synthetic rubber and

Ability of

propylene and polyurethane plas¬
tic foams. New applications rang¬
ing from piping and packaging to
car
bodies
and
pleasure
boats
have
evolved, as
the versatile

Telephone REctor 24949
Teletype NY 1-724
Private ivire to

Philadelphia

Volume

Number 5734

187

The Commercial and Financial Chronicle

(1745),
\

Cash Divs.

THE OVER-THE-COUNTER MARKET

•

Approx.

Including
No. Con-

-VAST, VITAL, AND VOLUMINOUS
Cast) Din.

Extras for
12 Mos. to

secutive

Dec.

Years Cash

31,

1957

Divs. Paid

Handling
and

Melrose
*

Dallas

Hotel

0.30

tion

Paymts. to

4.00

53
24

1957

4.8

2.00

116

3.4

5.4

Trust Co.

(Baltimore)

1.20

27%

of Chicago—

;

4.4

4.25

2.55

58%

4.4
;

Acceptance "Corp.

Small loans and general

1.00

3.3

1.80

2.00

0.60

0.65

1.90

38 %

National

Merchants

1.50

National

;

new

five

electric

New

Electric
of

panies will receive

new

Moore-Handley Hardware
Morgan Engineering Co

f9.29

240

3.9

Morris Plan Co. of California

2.00

5.6

Thrift
sales

accounts,

loans,

21%

5.1

1.60

27 %
/

5.9

23%

6.0

102%

3.9

Cottonseed oil

National Aluminate Corp
and

petroleum

treatments

National

American

Bank

Natl. Bk. of
in

Memphis

365

4.4

3.00

106

2.8

6.3

0.80

27%

2.9

2.75

0.90

7.5

oil

2.30

1.40

6.1

1.25

15%

7.9

"46%

field

Precision

cutting tools

Diversified

2.00

dl.20

Casualty—

Storage

1.90

37%

2.00

2.40

22%

10.8

16%

6.4

Machine tools
'
'
> !
New England Gas & Electric
Association

3.7

3.50

5.7

New

1.60

3.2

New Haven Board

2.00

4.3

1.50

3.9

1.00

2.7

Meyercord Co.

0.50

hhl.70

46%

1.05

Hampshire Fire Ins

Diversified

2.00

1.00

1.50

56
23%

Sheet tubing
\
Middle States Telephone Co.
of Illinois

Co.

0.45

0.90

17%

1.70

29%

5.8

3.00

5.5

1.50

24%

3.50

73%

4.8

3.20

41%

7.7

1.10

17%

6.4

Operating public utility in Conn.

New Haven Water Co

2.00

0.40

1.50

1.00

4.4

Operating public utility in Conn.

8.9

New York Fire Insurance Co.

3.0

New York Trust Co

5.9

and allied lines

insur.

New Yorker
Publishes

products

2.35

58%

4.0

zfO.975

3.4

3.0

1.95

insurance

complete as to possible longer record,
t Adjusted for stock dividends, splits, etc.
z Plus
one
share Heartland Holding Corp. for each share held.

utility

Details not complete as to

possible longer record.

Natl. Bank

(Mass.)

2.40

5.0

3.00

6.0

Operating public utility
Midwest Rubber Reclaiming-

1.25

common,
common

130,

31%

old

common.

Stockholders

and one share class B

received

common for

one

Continued

0.30

7.3

*21

1.00

a39

1.40

25%

5.5

2.00

6.3

f 1.12

16%

6.7

0.90

13%

6.5

1.40

25%

5.5

3.60

75%

4.8

1.36

21%

6.3

1.00

5.3

1.00

14%

Corporation

7.1

of reclaimed rubber

Laboratories, Inc

Alka Seltzer

Miller Mfg. Co
Tools for auto and engine repair

Millers Falls

NEW JERSEY'

BOONTON,

7.7

Tools

Minneapolis Gas Co
Natural gas distributor

Mississippi Glass
Rolled

glass, wire glass, etc.

! Mississippi
i

Shipping Co

8teamship operators

Miss. Valley Barge Line
!

Commercial carrier;
rivers

Mississippi
l
:■

freight

Valley

Designers and Manufacturers of Dependable

Airborne Electronic Equipment

Public

Service Co.
Operating electric utility

Missouri-Kansas Pipe Line

Since 1928

Holding company

Missouri Utilities
Electricity and natural

gas

Mobile Gas Service Corp.
Operating public utility

Mode

O'Day Corp

Women's
*

and

Details not

children's

complete

apparel
to possible longer record,

t Adjusted for stock dividends, splits, etc.
hh Company's dividend policy in recent years
of 2%

stock dividend.

wNew annual rate.

also includes payment

each

4.1

Mfrs.

Miles

class

old*

held.

8.3

Aircraft Radio

Including predecessors.

5.1

Middlesex Water Co

t Adjusted for stock dividends, splits, etc.
a

d Paid

Details not

Yorker"

Newport Electric Corp
Rhode Island

(Albany, N. Y.) 103

Magazine

"The New

6.1
"

of insurance

8.0

6.3

108

New Haven Gas Co

1.8
6.4

Operating public utility

Middlesex County

5.5
'

& Carton

3.7

36%

Insurance

Operating public utility

(Lansing)Michigan Seamless Tube Co.

5.9

Owning investments in several
operating utility companies

Dai* A.1 pnm Qii f M

Mich. Natl. Bank

General warehouse

Michigan Gas & Electric Co.

5.0

Ware¬

house Co.

—

Strip metal

-Metropolitan

8.3

20%

New Britain Gas Light Co,,Public utility, gas
,V,;.
New Britain Machine

Fire

Natl. Fire Ins. Co. of Hartf'd

7.4

2.00

Paper

papers

City Bank of Cleveland

Diversified

8.6

producer

Nekoosa-Edwards

2.20

•

Insurance

By-Products, Inc.—

casualty

fO.29

/ l

;

Nazareth Cement Co

•

Washing¬

(Tacoma)

health,

Corp

9.5

Calendars (religious and commer¬
cial) and greeting cards

4 9

Paper board and folding boxes

National Chemical & Mfg. Co.

0.50

5.6

146

National Union Fire Insur.

4.1

Animal products

39%

National Tool Co

National Commercial Bank &

Metal Forming'Corp
Mouldings and tubing
Metals & Controls Corporation

80'

2.20

0.7
.

of Detroit—.

Bank

Trust Co.

117

Midwest storage facilities

and

3.125

sells

National Casualty Co

NatL

and

Terminals

2.00

National Bank of Toledo

Paints

National

Bank

Accident,

o.80

—

Commerce

of San Antonio

ton

5.3

5 7

Diversified Insurance

16.00

of Commerce

National Bank of Tulsa

5 9

10%

National State Bk. (Newark)
National Tank Co

—

National Bank

National

0.50

0.60

(Boston) *61
National Shirt Shops of Del—
19

Pulp and

Comm.(Houston)

(Ohio)

*23

3.00

•„

Screws, bolts and nuts

6.3

shares for each share held.

5.4

Pennsylvania

*27

Amesbury Electric
Light
Co.,
1% shares for each share held.
County Electric Co., share

(Messenger Corp.

l8J/2

Co.

New Amsterdam

30 %

for each share field,

1.00

Natl. Shawmut Bk.

1.90

Lowell Electric -Light Corp., 2 Vt

Participating & non-participating
National Screw & Mfg. Co

paper

of Norfolk

% shares

equipment

National Bank of Commerce

% shares

National Reserve Life Insur¬

Manufactures

4.0

for share.

0.60

Cereals, animal feeds

time-

6.9

*33

National Oats Co

financing

1.52

5 2

1957

Chain, men's furnishings

in New Orleans

Essex

10.0,

fl.09

National

Lawrence Electric Co- 1

0.60

National Bank

wl.32

21%

National Newark & Essex

etc.

cranes,

2.1

the

Haverhill Electric Co., 1
for each share held.

8.2

Morgan (J. P.) & Co. Inc

com¬

0.90

1.9

6.4

4.0

1957

1.10

Nat'onaliLock C°

ance

Forging Co

follows:

4.0

System.

five

the

19%

formed in August
of a merger of

subsidiaries

England

1.40

29%

result

Stockholders

3.8

Rough & machined drop forgings

National

company

f0.74

Merrimack-Essex Co. (Mass.) al08
1957

1.00

1.20

Publishing
A

2.5

Meredith Publishing Co

1.25

3.6

1957

Banking Co. (Newark)— 153
18

Bank

1.31

of Syracuse

3.3

National Bank of Commerce
3.25

(Indianapolis)— *33

Trust Co.

Murray Co. of Texas

Bank

Monumental Life Ins. (Bait.)

Produces mills,

Paymts. t*
Dec. 31.

Co.

surance

feeds

Moore Drop

tion-

Dec. 31,

stores

<•.'

Flour and

Trust Co.

0.75

1.40

4.9

31,

Based

Life, accident and health

New Orleans

Merchants

1.5

«and industrial chemicals

127

Mobile

Divs. Paid

% Yield

Quota-

National Life & Accident In-

Calculating

Montana Flour Mills Co

Merchants National Bank in

Merchants National Bank

4.00

Dec.

Mortise locks

machines

Water

Chicago

0.50

7.1

secutive

National Food Products
Corp.

Calculating and bookkeeping

Boston

products

Including

Extras for
12 Mos. to

Years Cash

5.4

Sulphate pulp and

Fire and allied lines ofinsurance

Merchants National Bank

18%

Motor Finance Corp
—Auto financing and Insurance

Fire and allied lines of insurance

Merchants and Manufacturers

f0.98

5.0

Approx.

„

7.9

Construction—heavy engineering
Mosmee Paper Mills Co.—

(Colorado)49

Insurance Co. ttf N. Y

27%

4.2

47%

Holding company; chain food

Morrison-Knudsen Co.

Merchants Fire Insurance Co.

No. Con-

Sheetings and print cloths

7.8

financing

Merchants Fire-Assur. Corp.-

2.20

Hardware ^wholesaler

Mercantile Trust TSt. Louis)
Merchandise -National Bank

Merchants

3.6

Life insurance

1.80

•

1957

Monarch Mills

6.0

145

Mercantile Natl. Bk. (Dallas)
Mercantile-Safe Deposit and

1957

Monarch Life Insurance

hotel

Paymts. to
Dec. 31,

Dec. 31,

1957

Manufacturer of rubber

1957

Mercantile National Bank of

Chicago

Dec. 31,

Mohawk Rubber Co

Dec. 31,

Monroe
7.00

residential

Years Cash

Cash Divs.
-

•

Lumber manufacturer

Mellon Natl. Bank & Trust—

Oil production

lation of conveyors
-

tion

Mohawk Petroleum Corp

instal¬

Medford Corp.

12 Mos. to

Life, accident & health insurance

manufacture

secutive

;

•

Divs. Paid

Sys¬

tems, Inc.
Design,

■

•

% Yield
Based on

Quota-

Mechanical

.v"

% Yield
Based on

Quota-

Approx.

Including
No. Con-

Extras for

Copy of the Annual Report for 1957

Request

page

The Commercial and

(1746)

Financial Chronicle

Thursday. April 17, 1953

9*
Continued

Cash Divs.

from

page

THE OVER-THE-COUNTER MARKET

Extras for

No. Con¬

Quota-

12 Mos. to

secutive

Dec.

Years Cash

31,

tion

Dec.

Northwestern Public
Electric and

Iowa

Dec. 31,

3.6

operator of Whirlpool
Rapids Bridge

Real

files

Manufactures

900

Michigan

and

20V2

1.30

6.3

5.0

0.625

5.7

—

1.80

5.1

North American Refractories

fl.93

28V2

6.8

Wide

company

California
Co.

6.3

6.00

11.5

1.125

35%

fl.45
3.50

0.33

71/2

4.4

0.70

81/2

1.25

16%

1.25

36%

3,4

*34

2.00

262%

0.8

tl.48

Osborn

3.6

5.5

•

bitumlnized

fibre
v ^ *

Manufacturers

; ;

9.2

brushes

and

0.40

7.3

135

23%

5.-7

bldg.

Manufacturing Co.—
industrial

foundry

machinery

39%

Over-The-Counter

4.9

Payers Fr<

accident and health

Retails

treated

untreated

7.5

Starting

5.9

Page 54.

;

*16

—

2.80

2.40

Oshkosh
iV-

Old Ben Coal Corp

3.7

110

1.4

0.65

7.6

B'Gosh

____

1.75

25%

8.8

cloiiuHg

Complete me oi \\<uk
matched sets

Otter Tail Power Co._
Utility,

Old Kent Bank and Michigan
Trust Co.

38%

4.2

151/4

1.00

6.6

(Grand Rapids)

operating public utility

Class A

110.81

368

2.50

Life,

2.9

—

6.8

Old

Makes

*33

—

accident

and

1.25

*13

0.80

3.3

2.00

31%

6.3

2.00

58%

3.4

National

1.06

15%

6.7

Bank

Manufacture

3.4

sterling,

and

2.25

lines

Insurance Co.

1.50

China

2.0

Motor

Paciiic

Adjusted for stock dividends, splits, etc.

line

2.40

44%

514

f0.79

10%

7.6

10.00

of Seattle

1.00

27%

3.6

1.60

29%

5.5

1.00

15%

6.5

cars

insurance

freight;

Western States

Lumber

Natl.

20%

1.20

Electric

5.9

Co._

210

13%

\f0.79

operating

Vegetable

5.8

utility

trading

and

manufacture
t Adjusted

Details not complete as

to possible longer record,
for stock dividends, splits, etc.

Now With

oil

4.8

products

Bank

Pacific Vegetable Oil Corp.—

tableware

t Adjusted

5.0

Planning mill

Pacific

Details not complete as to possible longer record.

"a Including predecessors.

6.3

Pacific Power & Light Co

Opelika Manufacturing Corp. *10
Towels and linens
/

insurance

1.20

Foundry Co.__

silverplate

Onondaga Pottery Co.—

Life

brewei

railway

Multiple

tableware

stainless

4.0

Pacific Intermountain Exp.__

Oneida, Ltd.

(Milwaukee).

Formerly Pacific Fire Insurance
(N.Y.). Name changed May 1957.

accident and health

Omaha

insurance

Northwestern National In¬

1.60

0.20

New York
,

Brewing

3.1

20
22

Minnesota

.oiuji..:

Pacific Insurance Co. of

3.0

health

Olympia Brewing Co
1.00

Well-known

4.6

Republic Life Insurance

Life,

Excavating machinery

Northwestern Fire & Marine
48

3iy4

Dakotas and

Brewing

Pacific Car &

Company

Co.

1.50

Old Line Life Insurance Co.
of America

Co.,

Pabst

Formerly Old Kent Bank

Operating public utility

Northern Oklahoma Gas Co¬

National

Dividend

and

1.60

allied

Cash

Hydraulic machinery

(Chicago)

Consecutive

5 to 10 Years Appear in the '

Second Table
-

wholesales

water;

Oilgear Co.

Life, accident and health

7.5

Ohio Water Service

8.2

1.94

Northern Ohio Telephone Co.

Life

Co.-

etc.

Ohio State Life Insur. Co.___

gas

f 1.50

Northwestern

20%

con-

Light

pipe, conduit and underfloor

Marked coal

and

Power

Rockland

San Francisco office-theatre

Company

Co.

and

Participating only

insurance

automobile

via

1958

Orpheum Building Co._

5.3

0.825

Co.

surance

Co.

Manufacture

2.8

0.54

Insurance Co. *32

15V2

Northern Life Insurance

Fire,

28,

Tannery
'/■/
Ohio National Life Insurance

Northern Insurance (N. Y.)__ *48

f1.14

3.3

1__
Feb.

Co.

4.2

public utility

Fire and casualty

and

exchange basis

hoists

Insurance

Orangeburg Manufacturing

331/4

(111.)—

Northwest Engineering

1.00

solidation of Orange and Rock¬
land

was

1.40

Northern Engineering Works *18

Northern Trust

Inc.
%

3.2

share-

Co.— 120

Northern Indiana Pub. Serv._
Electric and gas

"/■'

Feb. 28, 1958 with
Light and Power Co.
to
form
Orange and Rockland
Utilities, Inc.
Operating public utility

IriRitrtirir'iA

Life,

and

for stock dividends, splits, etc.

Continued

page

Pressprich

(Special to The Financial Chronicle)

1922

BOSTON,

Interested.

Dilanian is

prich
Miss
...

in any

For latest

stock

these pages?

prices, quotes,

Mass.

now

Co.,

Dilanian

—

Federal Street.
formerly with

was

UNLISTED SECURITIES
SPECIALISTS

(Special to The Financial Chronicle)

BOSTON,
Amerena
with

Marketing Department

Smith

NEW YORK

5, N. Y.

Mass.

has

—

Street.

INQUIRIES

Joseph

become

Rothschild

Devonshire

Lynch, Pierce, Fenner

SINCE

1922

Joins L. F. Rothschild

information,

70 PINE STREET

^ 1958

•

Grace

with R. W. Press¬

Keller & Co.

simply contact—

Merrill

* 1957

1«57

Paymts. to
Dec. 31,

Rockland

Pacific

Ohio Leather Co

n ri i ra n o a

Diversified

1957

7.3

in Illinois

Cranes

into

271/2

Northeastern Ins. of Hartford
T? a!

1957

31,

Orange and Rockland Utilities,
_

2.00

natural

1.00

CI. B

variety of hardware

distributor

tion

Dec.

31/

Based

Consolidated

(Toledo)
Ohio Forge Machine Corp.—

Diversified insurance

Retail

2.3

cream

Gears, speed reducers,

——

North Shore Gas Co.

Diversified insurance

refractory materials

North River Insurance

fO.99

Orange & Rockland Electric
Company

Ohio Citizens Trust Co.

(Brookline, Mass.)

North & Judd

6.6

Formed

Insurance

Tiflh

Furniture and bedding springs

brick &

medicated

Ohio Casualty

Norfolk County Trust Co.

Fire

Oct.

for-share

Chicago real estate

No-Sag Spring Co

15%

estate

Title

1.00

—

Dec.

Divs. Paid

..;

Quota-

12 Mos, to

Years Cash

"Noxzema" shaving

and

merged

North,
13

Corp.

1.00

Oakland Title Insurance Co. *27

rasps

Ave.,

■:

——

Noyes (Charles F.) Co

Joint

Nicholson File Co.

w- '

•

••

1957

producer

cream

Service

Noxzema Chemical Co.,

1957

Distributes

2.00

1957

Extras for

No. Con- secutive

.,v

Paymts. to
Dec. 31,

gas public utility

Co.

Cement

Niagara Lower Arch Bridge_al01

1957

31,

Approx.
% Yield

Including

/•;

Northwestern States Portland

Paymts. to

31,

tion

Dec.

31,

Based

Based on

1957

Divs. Paid

Dec.

Divs. Paid

Approx.
% Yield

Including

Quota-

12 Mos. to

sccutive
Years Cash

-VAST, VITAL, AND VOLUMINOUS
Cash Divs.

Cash Divs.

Approx.
% Yield

Including
Extras for

No. Con-

affiliated
&

Co., Ill
for¬

was

merly with Harris, Upham & Co.,
in the commodity department.

JOHN J. O'KANE, JR.
PHILIP C.

KULLMAN, JR.

ROBERT

Members

Shearson, Hammill Adds

Offices in 112 Cities

INVITED

(Special to The Financial Chronicle)

(1922-1951)

KULLMAN
New

York

—

CO.

JOHN J. O'KANE, JR.

MANAGING

(1928-1956)

PARTNER

Security Dealers Association

Broadway, New York 4, N. Y.

Phone—DIgby 4-6320

Teletype—NY 1-1S25

BOSTON, Mass.—Lester A. King
has become connected with Shear-

Hammill & Co., 75 Federal
He was formerly with du
Pont, Homsey & Company.
son,

Street.

Riley Stoker Corp.

With Dean Witter & Co.
(Special to The Financial Chronicle)

Arundel Corporation

BOSTON, Mass.—Dale W. Roth
has

become

affiliated

with

Dean

Witter & Co., 19 Congress Street.

Weyerhaeuser Timber Co.

BANK and INSURANCE

Two With Sideckas

(Special to The Financial Chronicle)

SHREWSBURY,

Maryland Shipbuilding & Drydock Co.

Borci

and

STOCKS

Mass.—Renato

Denis

Gosse-

lin have joined the staff of R. B.
Sideckas & Co., 47 North Quin-

sigamond Avenue.

Mr. Borci

was

previously with Gibbs & Co. Mr.
Gosselin

was

with

Coburn

Middlebrook, Incorporated.
Unlisted Trading Department

Hemphill, Noyes Adds

WERTHEIM & CO.
Members New York Stock
Exchange

Company

BROADWAY, NEW YORK 4, N. Y.

(Special to The Financial Chronicle)

WORCESTER, Mass.

—

William

Telephone: DIgby 4-2420

Teletype: NY 1-3430

N. Mitchell has been added to the
staff

NEW YORK

Edwin L. Tatro

& Co.,
previ¬
ously with H. L. Robbins & Co.,

340

Inc.

Hemphill,

Main

Street.

Noyes

was

Direct Telephone

BALTIMORE—BOSTON

—

HARTFORD:

Enterprise

784G

Volume

187

Number 5734

The Commevcktl and Financial
Chronicle

(1747)

First Boston

Continued from page 46

Group

Cash Divs.

Sells Aluminum Co. of

THE OVER-THE-COUNTER MARKET

America Debentures
headed
by The First Boston
Corp. on
April 11 offered publicly an issue
of $125,000,000 Aluminum Co. of
America 3%% sinking fund de¬
99.60%

April

interest,

accrued

1983,

yield 3.90% to maturity. This of¬
fering was quickly oversubscribed
and the books closed.
The

debentures

-.<■

■.

entitled

are

sinking fund sufficient to retire
$5,200,000 in each of the years
1960

through

1982,

95.68%

debentures prior to

They

redeemable

are

tion of

maturity.
the op-'

the

for those redeemed

company at redemp¬
prices ranging from 104.73%

tion

1959,

deemed

prior to April

100%

to
on

those

for

after April

However, prior
debentures

to April

part of

operation; * where
would have

re¬

1, 1982.
1, 1963,

refunding

„

Package Machinery
Automatic

interest cost to the

3.96%

Pacolet

the

sale of the

bank

used

balance

currently

Bottling. *29

0.40

the

estimated at

funds

will

required

ings.

of America

Aluminum Co.

its subsidiaries constitute

and

inte¬

producer of primary alu¬
principal operations
include the mining and process¬
ing of
bauxite, an aluminumbearing ore; the production of
alumina from bauxite; the smelt¬
grated

minum. Their

the

of aluminum from alumina;
making of aluminum alloys;

and

the

and

aluminum

fabrication of

alloys

into

semi¬

finished and finished products.

& Trust Co.

sales,

operating

revenues

amounted
income

net

compared

with

to
to

$875,461,000
$75,568,000,

$869,785,000

and

118

5.9

6V2

3.2

8.00

280

2.9

2.00

4.0

3.00

6.0

f2.45

4.4

100

3.00

38y2

7.8

*10

1.25

18%

6.8

0.80

3.2

2.00

4.4

K.), Inc. (Mass.)__*20

tO.43

Plainfield-Union Water Co¬

Bk.

Planters Nut & Chocolate
5.2

Vegetable parchment,
custom

made

waxed

and

1.30

17V4

0.30

1.9

Furniture and radio distribution

Peden Iron & Steel

Co.._.__

products

Manufacture of rope, harvest
twines, twisted paper products

7.5

producers

Peaslee-Gaulbert Corp.

Pope & Talbot, Inc
West Coast lumber mills

Port Huron
21

2.05

Hardware

421/2

Sulphite & Paper

Lightweight

4.8

papers

Porter (H. K.) Co.

Corp.

*14

Porcelain, enamel

V;-

Pendleton Tool

9.6

?:¥

■

industrial
and

- .*<,

Pennsylvania Engin'g Corp..
refineries;

f0.76

141/2

fl.02

1.20

5.2

Porter (H.

4.9

4.8

re¬

6.1

and

Owns

2.65

5.5

1.50

2.3

4.00

5.1

substantial

Corp.,

21%

5.5

0.86

11%

7.6

5.6

Detroit
companies
in

and

Details not complete

t Adjusted for stock

0.60

Co.,

related fields

Telephone utilities

Interests

Cleveland-Cliffs Iron
Steel

Inc.

1.20

Electric utility

Portsmouth Steel Corp

Washington (Seattle)
Peoples Telephone Corp

0.50

Portland General Electric

5.0

sulphite

(Pittsburgh).

Operating public utility

1.05

Peoples National Bank of

to possible longer record,

dividends, splits, etc.

Continued
8%

page

7.0

drinks

wmmi.

Perkins Machine & Gear Co.

ti.oo

121/2

8.0

0.54

141/4

3.8

gears

Permanente Cement Co
Cement and

products

gypsum

manufacturer

Permutit Co
October

Co.

Permutit

Brokers

Pfaudler

1957

form

with

Pfaudler-

Stocks

and

Bonds

Underwriters

and

Distributors

Inc.

Personal

and

hand tools, bolt cut¬
ters, body and fender repair tools
& equipment and
hydraulic power
tools

woodpulp

Merged

alloy

Mechanics'

Peoples First National Bank

Precision

and

Portland Gas Light Co
11

& Trust Co.

copper

steel

in Penn¬

Voting
soda

steel,

products,

lated products

Penobscot Chemical Fibre Co.
bleached

tool

rubber

metalsf,
refractories,
saws
tools, fittings, wire rope and

chem¬

(Pa.)

Manufactures electrical equipment,

Industries,

Inc.

oil

,5.00

and ceramic frits

colors

mills;
plants

Peanut

Plymouth Cordage Co

papers

Brewing Co

Industrial

Bankers,

Inc.

0.12

2.50

34%

7.2

3.25

6.5

4.0

Small loans

Paul

Co.__

Popular candles

Petroleum Exploration
Producing
natural

crude

petroleum

Petrolite

Corp.

2.75

3.4

Mulliken

Railroad

track equipment,
ing and machinery

1.20

|fj

Corporate

5.0

forg¬

Pfaudler-Permutit Co.

and

gas

Pettibone

With Wm. Ravetto

0.205

■

6.0

Chemical compounds

$89,621,000 for the year 1956.

7.00

(Chicago)

6.3

Soft

Operates Diesel line In Carolinas

Owning and operating apartment

Mfr.

5.7

5.1

ical

ioy2

Financing company

4.8

1.50

Steel

0.60

Pioneer Trust &
Savings Bank

f0.50

and

7.7

Pioneer Finance Co.

7.4

Pemco

7y8

Texas

Piedmont & Northern Ry

1957

Beer

0.55

and

Paper boxes

Dec. 31,

(Clifton, N. J.)

Peter

and other income of the company
1957

Paymts. to

Paterson Parchm't Paper Co.

Pearl

Louisiana

Pictorial Paper Package
Corp.

Pepsi-Cola General Bottlers,

Net

146

1957

operating public utility

Passaic-Clifton National

$447,000,that addi¬

10y2

1957

building

Beverage bottling

Operating public utility
sylvania and New York

It is not expected

and

7.50

Pennsylvania Gas Co

1958, but if required, they will be
obtained through bank
borrow-

repay

proceeds will
be used for capital outlays.
Thecompany's capital expenditures in
the three-year period 1956-58 are

ing

Manufacturing Co.__

$80,000,000
agreement;

credit

0.50

13 y2

1957

Based on
tion
Paymts. to
Dec. 31,
Dec. 31,

Pittsburgh Fairfax Corp

Fabrics

per

proceeds from the
sinking fund de¬

loans

outstanding

tional

California,
holdings

% Yield
Based on

doors

core

Panama Coca-Cola

new

will

bentures

000.

Mechanics hand tools

1.00

wrapping machines

hollow

openers;

annum.

the

Packard-Bell Electronics Co.
Radio, TV-electronics; garage door

refunding

the

of less than

company

under

Qwta-

secutive 12 Mos. to
tion
Years Cash Dec. 31.
Dec. 31,
Divs. Paid
1957
1957

the company may not redeem any

Part

Extras for

Dec. 31,

Quota-

•

Pickering Lumber Corp

Approx.

Including

the

secutive

due

and

Cash Otvs.
No. Con-

% Yield

Extras for
12 Mos. to

Years Cash
Divs. Paid

-VAST, VITAL, AND VOLUMINOUS

An underwriting group

bentures,

Appro*.

Including
No. Con¬

and

Municipal

Securities
wm

gil

FRANCISCO, Calif.—Vir¬
Breen has become connected

William

Post

Street

Ravetto

Co.,

formerly

was

Coffin & Burr Branches
"

Coffin & Burr,
a

Arlington

Incorporated has

branch

Hotel,

office

the

Binghamton,

N. Y. and in the Farmers National
Bank

Building,

under

the

Deposit,

management

Sheridan.

Mr.

formerly

with Cosgrove,
head and Gammack.;

Harry

Sheridan

1.00

151/2

6.5

1.50

3.2

fl.77

321/2

5.4

t0.725

4.5

10.48

291/2

1.6

Telephone WHitehall 3-7600

3.00

541/4

5.5

Corporate Teletype: NY 1-865 • Municipal Teletype: NY 1-1691

softeners

resistant

Pheoll

and

21 y2

corrosion

equipment

Manufacturing Co

Manufacture

metal

fasteners

Philadelphia Bourse
Exhibition and office building

with Frank KnowJton & Co.

opened

b0.35

Water

SAN
with

a21

Philadelphia National Bank- 115

(Special to The Financial Chronicle)

was

White¬

Members New York Stock

Philadelphia Suburban
Transportation

Co.

Exchange

Operates street railway lines and
motor buses tinder charter

Philadelphia Suburban Water *19
Operating public utility

Phoenix Insur. (Hartford)

Insurance carrier (except life)
*

Details not complete as to possible longer record,

t Adjusted for stock
a

dividends, splits, etc.
Including predecessors.

b Initial

dividend of 35c paid on Dec.

16, 1957.

We have direct wires
Albany

Albuquerque

Beverly Hills

Cincinnati

the

following cities:

Ashevillb

Boston

Cleveland

Des Moines

Detroit

Baltimore

Burlington

Chicago

Dallas

Durham

Denver

Farmington, N. M.

Fayetteville, Ark. Fayetteville, N. C. Fullerton
Grand Rapids

Greenwood

Huntington

Indianapolis

Kansas City

Minneapolis

Laurel

Portland, Ore.
St. Louis

Philadelphia

Potsdam

St. Paul

San Francisco

Spartanburg

Victoria, Tex.

Joplin

Pittsburgh

Rome,N.Y.
San Antonio

Santa Fb

Toronto

Washington

Nashville

Phoenix

Rock Island

Santa Ana

Malonb

Muskogeb

Salt Lake City

Syracuse

Houston

Jackson

Los Angeles

Montgomery

New Orleans

Harrisburg

Tulsa

Whittier

Seattlb
Utica

Wichita

The Commercial and Financial Chronicle

Thursday, April 17,1958

(1748)
Cash Divs.

Continued jrom page

Haisey, Stuart Group
Offers New England
Stuart & Co. Inc. and
associates on April 15 offered an
issue of $45,000,000 New England
Telephone & Telegraph Co. 35year 4% debentures, due April 1,
1993, at 102.87% ancl accrued in¬

-VAST, VITAL, AND VOLUMINOUS
Cash Divs.

Award of

terest, to yield 3.85%-.

the
underwriters at competitive sale
April 14 on a bid of 102.22%.
Net proceeds from the financing
will be used by the company to
debentures

the

its

refund

was

won

4%%

29-year

deben¬

tures, due Jan. 1, 1986, presently
outstanding in the principal
amount of $35,000,000 and which

plans to call for re¬
demption on May 19, 1958, at
106.388%
of their principal
amount. The balance of the pro¬
ceeds from the sale of the new
debentures will be applied toward
the company

repayment of advances from the
parent organization, American
Telephone & Telegraph Co.
debentures

The

be re¬

are

1963

deemable beginning April 1,

optional
redemption prices
ranging from 106.87% to par, plus
at

Telephone
&
Telegraph Co. is engaged in the
business of furnishing communi¬
cation services, mainly local and
toll telephone service in Maine,
England

New

New Hampshire,
and Vermont.
On

Massachusetts,
Khode

Dec.

Island

31,

had
service.

1957, the

company

2,937,816 telephones in
Other communication services
furnished by the company

include

exchange

teletypewriter

service

facilities for pri¬
teletypewriter use, for
the transmission of radio and tele¬
and services and

line

vate

vision

programs

for

and

other

31, 1952, capital stock

As of Dec.
was

$253,050,793; funded
and advances,

$155,000,000
$22,000,000.
debt,

1957, the company
total operating revenues of

$324,198,323

and

income

net

$29,807,727.

land

Co.

Feb.

4.2

2.20

34%

6.4

28,

form Orange and Rock¬

Utilities,

Inc.

shore

west

electric

Rockwell Mfg. Co
Meters,

valves,

19
tools

power

and

parking meters

5.0

4.00

5.3

19%

Rock¬

and

Details hot complete as to possible longer record.

Stor¬

1.00

7.1

1.60

8.4

—

0.50

12%

4.0

warehouse

cold storage

Laundry Co.—

Progress

6.0

1.70

supplier

Operating public utility
Produce Terminal Cold

Public

7.6

17%

Co.

1958

■;

Princeton Water Co.

age

23 %

1.05

keys

and organ

Piano

fl.78

Orange

Electric

land

1957

and oil interests

Potash

Pratt, Read & Co.—

KIDDER, PEABODY & CO..

• ♦

Laundry and dry cleaning

Providence Washington Ins..

•

Multiple line Insurance

Bank
Trust Co. (Cincinnati)
Savings

Provident

5.1

34V4

1.75

Provident Trust Co. (Phila.).
Merged
in
April
1957
with
form

Bank & Trust Co. (stockholders
received

shares for each

new

What is your

Our

old held).

93
21

d2.32

42%

5.5

1.00

16%

6.2

0.77

16%

4.6

3.00

34%

8.7

3.00

13%

•

Fiectric

*16

f0.88

18%

4.7

2.00

22 %

9.0

utility

Public Service Co. (N. Mex.)

large and experienced

Public

utility

Owns rotogravure

printing plants

Punta Alegre Sugar Corp
Cuban holding company
Purex

Corp.
"Purex"

Makes

and

"Trend"

Purolator Products
Filters

0.10

Queen Anne Candy Co

4.7

bulk candy

f2.60

let

fl.00

0.90

10%

1.40

kets.

Mr. David D.

Lynch

Kidder, Peabody & Co.

1.10

1.50

25%

Members New York and American Stock Exchanges

7.9

FOUNDED 1805

Department

4.7

ing existing street mar¬

8.3

handling of large

blocks without disturb¬

Address

3.6

a72

skillful

trading requirements?

5.9

17 Wall Street,

operation

Ralston Purina

coverage—and
less.

you

Provides facilities for

•

know your

8.7

Quincy Market Cold Storage
Boston

not

costs

Why

to you.

Dealer Relations

oil, gas and air

Bar and

helpful

of corporate

Through a nation-wide

dealer

Trading Departments may
be

mar¬

extended list

wire system provides
broad institutional and

22.9

(Phila.).—
Public Service Co. of N. H.~

primary

of all types
securities.

Provident Tradesmens Bank
& Trust Co.

Makes

kets in

trading problem?

Bank <&
Trust Co.
Provident Tradesmens

Tradesmen

New York 5, N. Y.

Philadelphia

Boston

Animal feeds, breakfast foods

Chicago

Los Angeles

Real Estate Investment Trust
of America
A

new

1956

the
the

company

formed in June

result of

Estate

Trust,
Trust

Real

Estate

Ground

Boston
Boston

Real

Western

the

merger

Rent

Investment real

estate

Red Owl Stores,
Wholesale

Reece

Inc

retail

and

(Mass.)

Corp.

class B

Crepe paper

Writes

Y.)_—

11%

0.50

Reinsurance Corp. (N.

0.60

only reinsurance

4.3

CORONADO, Calif.—Arthur L.
Gallagher, Sr., has become con¬
nected with J. A. Overton & Co.,
Orange Avenue.

Specialists in

6.7

Paints, varnishes and enamels

Republic Insurance (Dallas)Fire and

1.60

OVER THE COUNTER

3.7

SECURITIES

casualty insurance

National

Republic

Bank

of
38

fl.64

51%

3.2

0.20

Republic Natural Gas

Chronicle)

Quarter Century

1930 -1958

button hole machines

Makes

Reed (C. A.) Co.,

Republic National Life Insur¬
ance Co. (Dallas)

Joins Overton Staff

Over A

chain

food

Dallas

(Special to The Financial

1134

with

Joined

Hudson

Potash Co. of America

1957

0.825

Boston

Rockland Light & Power Co. *44

Paymts. to
06C. 31.
Dec. 31,

1957

31,

1957

Rockland-Atlas Natl. Bank of

tion

1957

Reliance Varnish Co

For the year

had

Dec. 31.

Divs. Pftid

Based on 1

Dec.

Divs. Paid

Trustees

1957, the company
capital stock equity of
$392,406,318; funded debt of $250,000,000 and advances from the
parent, A. T. & T. Co., $78,000,000.
Dec. 31,

reported

equity

12 Mos. to

Years Cash

and

purposes.
At

secutive

Quota-

Extras for

Publication Corp. vot

interest.

accrued

No. Con-

12 Mos. to

Years Cash

Appro*.

% Yield

Including

Haisey,

Based on
tion
Paymts. ta
Dec. 31,
Dec. 31,
Quota*

Extras for

secutive

THE OVER-THE-COUNTER MARKET

T. &. T. 4% Debentures

Apprax.
% Yield

Including
No. Con-

1.00

36%
25%

0.5
3.9

1.00

12%

8.2

-x

Natural gas and oil producer

Republic Supply Co. of
California

Suppliers and distributors of
well

industrial

and

&reeweaniCorx\pai\^

oil-

supplies

Resistance Welder Corp

0.15

0.60

ESTABLISHED 1950

3.0
9.4

High production welding machines

With H. C. Denison
(Special to The Financial

Chronicle)

SHEBOYGAN, Wis.—Robert H.
Biever is now connected with H.
C.

Denison

Co.,

Security

Bank

Building.

Revere

Racing Assn

37 Wall St., New

York 5

Dog racing, near Boston

Rhode Island Hospital TrustRichardson Co
plastic

4.6

4.00
1.00

87
12%

8.2

0.725

5.2

rubber

Manufacturers of

1.40

7.4

1.25

8.9

and

industrial products

Rich's, Inc.
Operates Atlanta department store

Riegel Textile Corp
Wide

With Ulmer-Joseph Co.
(Special to The Financial

Chronicle)

CINCINNATI, Ohio—Donald C.
connected with

Brown has become

Ulmer-Joseph Company, Mercan¬
tile Library

Building. He was for¬

merly with Clair S. Hall & Co.

line

textile

products

Rieke Metal Products Corp.Heavy

Established 1928

metal stampings

Rike-Kumler Co

fl.46

1.00

4.2

Dayton department store

steam

21 y4

4.7

generators

DEALER SERVICE

Risdon Manufacturing Co.^_-

4.00

5.6

a25

1.20

9.2

0.80

15%

5.2 1

f3.09

57%

5.4

1.60

1.00

13%

7.4

100

17%

5.8

1.00

15%

6.5

Small metal stampings

River Brand Rice Mills
Leading rice

miller and packager

Roanoke Gas Co
Public

AND

Rilev Stoker Corp
Power

Offer

COMPREHENSIVE INVESTMENT

ALL CLASSES

OF RONDS AND STOCKS
including

utility. Distributes natural

UTILITY—RAILROAD—INDUSTRIAL

PUBLIC

gas

Robertson (H. H.) Co

FOREIGN ISSUES

Manufacturers of construction
materials

American

Rochester
ance

Insur¬

Co.

are

5.5

Particularly Adapted to Service Firms
With Retail Distribution

Diversified insurance

SnftS

Refrigeratum

World-wide satisfied

users

Your

Rochester Button Co
'

Buttons

Rochester Telephone Corp.—

Operating public utility

Rock of Ages Corp
Granite
*

Details not

complete

to possible longer record,
splits, etc.

Including predecessors,

d Annual

rate.

F. FOX &
120

quarrying and mfg.

t Adjusted for stock dividends,
a

Inquiries Solicited

CO., INC.

BROADWAY, NEW YORK 5, N. Y.

Telephone

Teletypes

REctor 2-7760

NY 1-944 &- NY 1-945

Volume

187

Number

5734

The Commercial and Financial Chronicle

...

(1749)

THE OVER-THE-COUNTER MARKET

Cash Divs.

v*-.

Cash Divs.

'1 /„•

;•

No.. Con-

secutive

12 Mos. to

Based

L I

..j

Dec.

Divs. Paid

31,

1957

tion

Dec. 31.

^Manufacture

and

distribution

10.44

1.15

steering

30
; >

gears

1.50

24";6.3

Royal Dutch Petroleum (NY)...11.,

31/2

11.4

2.81

641/4

nations

and

0.25

1.00

Name

machinery

Trust

Ine.__„

6.0

c0.75

3.6

1.00

131/4

7.5

Manufactures steel scaffolding,
grand stands and bleachers

Sagamore Mfg. Co.__.22

Security Insurance Co. of
New Haven

1.60

8.00

2.40

L__>- 38

1.25

21%

7.00

fl.03

f 0.58

21%

2.7

fl.20

23%

5.1

1.00

1.05

37%

2.8

16%;/;

6.0

Title insurance

■

2.40

Rochester

fl.98

4.4

•f 0.58

5.8,

Risks Insurance Co. *25

1.20

3.5

3.3

Seismograph Service Corp.
Surveys for oil and gas industries

Selected

1— *17
cars

complete

0.50

6.2

Formerly Selected Risks Indemnity Co. to Dec. 1957.

ships

Seven-Up

3;00

4.8

2.50

Bottling

Co.

(St.

Louis)
Bottler

80
as

Diversified insurance
•

3.4

<■

0.60

Details not

complete

Continued

5.8
12.7

Stockyards__

2.4

44%

1.60

8.4

0.60

2.40

44%

5.4

San Francisco Brewing Corp.
Name changed in January, 1957,
to Burgermeister
Brewing Corp.

Brewery,
(Philippines)

*10

1.20

10.9

3.50

real estate maps

Savannah Sugar Refining

1.00

5.00

Georgia operator

Schenectady Trust Co. (N.Y.)

Electric

Net

Revenue

Dividends

Income

Paid

Preferred;..

Common

2.00

-_w, 18

10.97

78,046

291,491

3,841,185

549,210

75,891

302,285

4,229,342

604,797

74,230 r

320,333

6.1

5.6

57%

3.5

3.7

1955

4,939,382

704,305

141,808

350,928

13%

7.3

1956

5,235,396

749,696

137,549

375,750

1957

5,528,795

789,491

134,886

427,769

v,'

503,552

1954

16%

3,463,445

1953

Hardware, locks and tools.

•

Gross

1952

Sargent & Co

hardware

& Co

Three Milwaukee

Fiscal
Year

Schlage Lock Co.___

Wyoming

9.0

dairy products

builders'

rapidly growing Black Hills Area

Inc.

Sanborn Map Co

(Ed.)

to the

in Western South Dakota and Eastern

(water)

Miguel

Locks and

Rapid City, South Dakota

Supplies electric service

San Jose Water Works

Schuster

BLACK HILLS POWER AND LIGHT, COMPANY

6.0

*16

1.00

dept. stores

Details not complete

as to possible longer record,
Adjusted for stock dividends, splits, etc.

c Plus

two shares Vapor Heating
Corp. for each 100 shares held.
Cash equivalent of this asset dividend is 84
cents per share on

Safety

Industries.

This, added
total to $1.59, for

above, brings

cents

yield

Two With A. G. Edwards
ST.

LOUIS,

have
G.

become

Edwards

Eighth
New

Mo. —William

and

James

Sons,

(Special to The Financial Chronicle)

CHICAGO, 111. — Burton R.
Oberg Abrahams, Charles K. Alsip, Frank
Avith A. A.
Gamble, John H. Goddard, Wil-

409

North

liard L. Hemsworth, Richard A.
Hoyerman, Charles J. Malin, Roy

Street,

York

shown

connected

With 111. Mid Continent

(Special to The Financial Chronicle)

Mansfield

per

7.6%.

members of the
and
Midwest
Stock

R.
are

& Co.

nent Investment

Mr. Oberg was
tram V. Jones & Co.

with

Ber¬

WATER SERVICE IH CALIFORNIA IS STILL

Sandberg and Alice Tangalos

Exchanges.
Mr.
Mansfield
was
previously with B. C. Christopher

now

A BROWING BUSINESS

with Illinois Mid Conti¬

Co., 676 St. Clair

Street.

California Water Service

OVER-THE-COUNTER GROWTH STOCKS

set

Company

these records in 1957:

Bank of America

'
■

•

New

•

New high in total

California-Pacific Utilities Co.

Langendorf United Bakeries, Inc.
Nevada Natural Gas

Pipe Line Co.

Southern Nevada Power Co.

•

New

'•

•'

j' *

high in number of customers served.
revenue.

high in total net income.

Highest income

per common

share since 1929.

Southwest Gas Corporation

Annual

First California Company

Report sent

upon

request

/ ' / /

c ■

INCORPORATED
*

UNDERWRITERS
MEMBERS:

AND

DISTRIBUTORS

PACIFIC COAST STOCK EXCHANGE * MIDWEST STOCK
EXCHANGE

CALIFORNIA WATER SERVICE COMPANY

AMERICAN

SAN

STOCK

FRANCISCO

300 Montgomery St., Teletype SF 885

EXCHANGE

(ASSOCIATE)
LOS

374
St., Teletype LA 533

PRIVATE WIRES TO NEW YORK AND ALL DIVISION OFFICES

Offices Serving Investors Throughout California and Nevada

West Santa Clara Street

ANGELES

647 South Spring

7.1

to possible longer record.

t Adjusted for stock dividends, splits, etc.

to possible longer record.

of carbonated beverages

Adjusted for stock
dividends, splits, etc.

Minnesota operator

San Antonio Transit Co
Intra-city busses

4.0

Fire and casualty insurance

Fire insurance

Livestock

Beer and

5.2

Security Title Insurance Co—

3.9

State Bank

Saginaw

10.0
T

St. Joseph Stock Yards Co.

San

Security National Bank of
Greensboro (N. C.)

changed to Searo Bank Sc
Co. in
January 1957

St. Paul Fire & Marine Insur.

Public utility

1957

Security-First National Bark
(Los Angeles)

Second National Bank

twills

"■■■'%-

St. Paul Union

Paymts. t•
Dec. 31,'

0.40

tion

Dec. 31,
1957

31,

1957

Based on '

Security Trust Co. of

Seatrain Lines

Maine producers

0.60:

Transports freight

Safway Steel Products, Inc-

St. Croix Paper Co—

Second Bank-State St. Tr.
Co.

broadcloths,

0.9

(Chicago)

10.1

railroad

Sateens,

17%

(Chicago)

Supplies the following markets:"
general industrial, food, chemical
and

Dec.

Quota-

financing and

personal loans

Surety Co.____^___

Sears-Community

other metal products.

Safety Industries,

0.1.5

Securities Acceptance Corp—

Denver

Pharmaceuticals

6.3

„

Shops
textile

6.9

Sears Bank & Trust Co.

Royalties Management Corp. -15

Manufactures

291/4

covers

Searle (G. D.) & Co

4.4

Affiliated with producers of many

f2.025

*42

table

12 Mos. to

Divs. Paid

I
8.3

Diversified insurance

0.40

gas royalty interests

Seaboard

coats and suits

Saco-Lowell

Instalment

Department stores; St. Louis, -

5.2

Kansas City,

Rothmoor Corp.

'I Oil and

■

Scruggs-Vandervoort-Barney

Operates 145 stores In the South
Manufacturers

secutive

Years Cash

1957

191/4

knitting machinery

Lace curtains and

Ross Gear & Tool Co. Inc

,'v- Women's

Williams, Inc-a

Scranton Lace Co
5.7

Rose's 5, 10 & 25c Stores, Inc.

'■

Builds

Extras for

plywood doors and lumber

Scott &

1957

"7%

No. Con-

Paymts. to
Dec. 31,

fl.60

Approx.
% Yield

Including

Vacuum, cleaner attachments

Paymts. to
Dec. 31,

1957

Roddis Plywood Corp

Scott & Fetzer Co

;

■'

Quota-

tion

Dec. 31,
1957

31,

1957

Based

% Yield

Extras for

Years Cash

;

Dec.

Cash Divs.

% Yield

Quota-

12 Mos. to

Years Cash
Divs. Paid

Approx.

Including
.i*'

Extras for

secutive

VAST, VITAL, AMD V0LUMM00S

Approx.

Including
No. Con¬

San Jose, California

i1
-

page

;

Financial Chronicle

The Commercial and

(1750)

■

Continued from page

49
No. Donsecutive

THE OVER-THE-COUNTER MARKET

Cash Dlvs.
Including
tion

Dec.

Dec. 31,
1957

Divs. Paid

,/'
/ Cash Divs.
Including

Dec.

tion

Dec.

31/

Paymts. to

Dec. 31,

31,

1957

Divs. Paid

1957

s
-

VAST, VITAL, AND VOLUMINOUS
Cash Dlvs.

Including
Wo. Con-

Extras for
12 Mos. to

secutive

Years Cash

Dec.

Quotation

% Yield
Based on
Paymts. to

Dec. 31,

1957

31,

1957

Divs. Paid

Natural

1957

7.5

- * - -

Shaler Co

1.15

9.6

Voloanizert

enttton

holttt

2.00

f0.19

9.5

Narrow

fabrics,

Southern natural

fl.38

4.3

0.38

1.35

1.9

0.20

f2.14

Strathmore Paper;

6.4

3%
'

5.4

page

58.

ical

3.8 1

f 0.51

1.80

96 'jr.

1.9

1.20

6.3

-13%

/
■

6.4

27s

0.20

Yarn

shirtings

road

7.0

and

Electronic

7.7

1.00

;

1.50

6.0

Local

—

5.2

23%

1.20

2.00

30%

6.5

Springfield Gas Light Co
Staley (A. E.) Mfg. Co

2.00

36%

Massachusetts

fl.43

6.0

1.55

8.2

Processes

Skil Corp.
Portable tools

2.60

40%

1.55

24%

6.4

Co.

2.50

Co.

fl.32

24%

5.5

1.80

28%

6.3

Mining machinery

6mith (J. Hungerford) Co.—

2.75

7.0

1.20

5.7

f1.40

distribution

24%

5.7

and

24%

1.00

4.0

0.80

11%

6.8

Operating public utility

2.50

48%

5.2

0.45

1.4

Operates Louisiana sugar

and

f0.77

8.3

t0.84

15%

Stanley Works

•

„

in the

Page 54.

3.7

0.65

11%

5.7

Railroad

castings

(Houston).

Texas Natl. Bank

2.70

155

1.60

7.7

Richmond department,.store

*12%

6.4

164

6.7

|2.42

4.3

i.oo

11%

8.9

0.60

6.9

10.00

*34

Third Natl. Bank in -Nashville

& Finance Corp.

0.80
11.00

Thalhimer Brothers, Inc
3.9

*50

Makes cotton yarn

trades, etc.

7.4

gears

Textiles, Inc

13%

turbines • and reduction

personal

1.00

Terry Steam Turbine Go.——

8.0

.47

f2.25

*12

Malleable

Manufacturing Corp; -_i_.
Iron

3.5
4.8

carrier

common

Haute-

Terre

6.4

scientific, instruments

2.25

bbl.04

Tecumseh Products Corp
Refrigeration compressors, etc.

0.14

7.0

12%

0.80

Tenn., Ala. & Georgia Ry. Co.

7.4

4.00

28%

2.00

—

poles

brushes,

—

Dividend

alloy castings

iron

Mfr.

State Loan

8.7

■

2.7.1

375
,

Southeastern Telephone Co-

CI. A
Loans

Operating public utility

—-

and

Southern

Southern Bakeries Co

fO.87

16%

5.3

Southeastern baker

finance
states

0.95

6.1

15%

business,

State Natl. Bank of El Paso-

6.00

2.2

275

Third National Bahk &

14%

0.85

5.9

Water, eleotrlo and Ice Interests,

Southern Colorado Power

0.725

5.6

Stearns
ing

10.23

3.7

Diversified Insurance

So. New England TeL Co.

2.00

33%

& Trs.

2.30
0.10

'»

59%

equlpt.

;

3.3

5.9

Labels,

packets

"
1.85

plastic parts

8.4

Electric

welding

fl.92

5.1

1.25

6.3

\ *

*17

25%

f0.52

2.00

2.0

reinforced
*

Thomson Electric. Welder

boxes

Hi Temp

glass, fabricators
insulation,
fiberglass

19
and

Springfield (Mass.)

Fiber

Lithograph

Stecher-Traung
Corp.

35
'

Thompson (H. L) Fiber Glass

and associated items

•• j

1.25

Trust

Thomaston Mills —i
Wide range of cotton ..products

'3.9

Manufactures concrete block mak¬

Hectrlclty supplier

Southern Fire & Casualty Co.

(Richmond, /.
*36
Manufacturing Co.— 22

merce

Va.)

Operating company

Co. of

3.6

/ Co. (Dayton," Ohio) __
77

Trust

Third National Bank &

State Planters Bank of Com-

So. California Water Co.

Taylor-Instrument Cos...

4.5

2.50

State Bank of Albany—

5.4

supplier '

S. YYY.
: ♦

Railroad ties and

10.0

Hardware for building

Co.

Stove

Y,,

ranges

Grey

sells

and

polishers,

waxes,

plantation

Southeastern Public Service-

seasonings

toiletries

Southdown Sugars, Inc.

1.00

products

Stanley Home Products, Inc.
(Voting)
Manufactures

—

South Carolina National Bk.
(Charleston)

2.00

•

4.0

4.6

and lacquers

Pood colorings and

43%

insurance

Stange (Win. J.) Co—

Paper and paper products

47'

.*23

10.8

18%

1.90

Taylor & Fenn Co.__i:_:r.-_

Jersey

Varnishes

2.00

;

Screws and screw machine

related items

2.00

cotton products

Tappan

Taylor-Colquitt Co.

threads

New

and

Standard-Toch Chemicals, Inc,

mechanics' hand service tools and

South Atlantic Gas Co

fire

Standard Screw Co.

Bonoco Products Co

bonding

Diversified

turbines and valves

(rubber. and

■■

Second Table Starting on

Standard Fire Insurance Co.

Heavy manufacturing, hydraulic

6.51

Payers From 5 to 10 Years Appear

insurance

Yarns and

Ice oream fruits and flavors

Snap-On Tools Corp

—

Standard-Coosa Thatcher Co.

Manufacturer of soda fountain do

Smith (S. Morgan) Co

4.6

Over-The-Counter Consecutive Cash

and soy beans

(Detroit)

marine

1.10

operating utility

corn

Casualty,

33%

1.55

22 :

2.2

;

,22

November -1957.

Standard Accident Insurance

3.8

2l8

4.70

6.4

Operating public utility

Paints and varnlshee

10.1

operator

Formerly
Gas

Stamford Water Co

Smith-Alsop Paint & Varnish

Smith Engineering Works

bus

Miscellaneous

5.5

Springfield F. & M. Ins. Co.

105

4.9

Tappan Co.

components

Multiple line insurance

Iowa livestock market

1.7

11%

Tanipax, Inc.:—

24%

Castings

30%

Syracuse Transit Corp....—

carrier

Slvyer Steel Casting Co——

food distributor •

Wholesale

Rail¬

1.20

Operating public utility

distributor

Swan Rubber Co
Manufactures, hosg
plastic) small tires

goods

Sprague Electric Co.

0.50

y": 1.15

Co.

Northwestern

8.6

1.60

14 :

chem¬
refinery equipment

Super Valu Stores, Inc——

7.7
13

dress

International

Spokane

...

Sun Life Assurance.—_—_
Life.
Also large annuity business

6.8

1.50

Spindale Mills, Inc

and

Propane .gas

Co.—

5.7

•

Carbon, graphite and electronic
products

1.60

■10
Stuyvesant Insurance Co
•y
*
Auto and .marine' iftsutahec ' // V
7 12
Suburban Propane1 Gas Corp.

Sales, financing and personal loans

Sioux City Stock Yards

and

Southwestern Investment Co.

"Ranier" and "Brew 66" beer

Manufacture

See Company's

!7%

department

Fabricated metal products;

Operating public utility

Formerly Sick'a Seattle Brewing
41
Malting Co. Name changed
April 1957.

Sierra Pacific Power

store

6.1

19%

70.99

artists'- papers and technical

Struthers Wells Corp/___„__

Non-partlclpating life

Sick's Ranier Brewing Co

1.18

3.9

pa¬

papers

Large Philadelphia

3.5

mal.25

printing

Strawbridge &- Clothier

Southwestern States Tel. Co.

Co.

fine

Manufactures
pers,

Corp

7.6

10%

chain

Restaurant

Stouffer Corp.

Electricity supplier

Carbon

lumber

and

Coal

SOUTHWESTERN ELEC.

Speer

fabrics

and

Dies

Stonega Coke & Coal Co

Southwestern Life Insur. Co.

Roohester, N. 7. department store

fl.30

6.0

supplier

gas

Southwestern Drug

61bley, Lindsay & Curr Co.—

18
22

and

tapes

Southwest Natural Gas Co.—

•

stockholders
improved sale of business and
virtually all assets to Reading
Briquet Co., subsidiary of Phil¬
adelphia & Reading Corp., and
change of name to First Ge¬
neva Corp.
Simultaneously, the
aforementioned subsidiary was
renamed Shuron Optical Co., Inc.

gas

4.2

3.00

insurance

YVYY;

refrlg-

On March 20, 19S8

Natural

CI. B

Stonecutter Mills Corp.,

webbings
I
Southland Life Insurance Co.

7.6

General line ef ophthalmic goods

0.20

Silk, rayon and nylon fabrics

SERVICE

Shuron Optical Co

Inc.__

Stern & Stern Textiles,

4.8

tribution

Co
commercial

Manufacturer

23
13

Mtetrto eranet and

Sherer-Gillett

7.8

23% f

Wholesale drugs

Shepard Niles Crane & Hoist

Life, health and accident

1.50

20
*

Pithing roe It, rods and II net

0.70

and dis¬

Southern Weaving Co

Shakespeare Co.

production

gas

1.12

Southern Union Gas Co

Approx.

% Yield

Based on-

Quota-

12 Mos. to

Years Cash

Approx.

...

Extras for

secutive

■tA-

1957

Thursday, April 17, 1958

Dec. 31,

31,

No. Con-

Based on
Paymts. ts

Quota-

Extras for
12 Mos. to

Years Cash

*''

■■■

Co.

•

8.3

machines •

Communications services
—

•

t Adjusted for stock dividends, splits, etc.

Details not

complete

to possible longer record,

t Adjusted for stock dividends, splits, etc.

Details not complete as

t Adjusted
bb
•

to possible longer record,

for stock dividends, sDlits. etc..

Common stock was split 2-for-l in
dividend on new stock is 30 cents per share or

Adjusted.

1957.

Current

at $1.20 annual

rate.
ma

Plus 3%

stock dividend.

If it's Connecticut
We invite you to use our

complete facilities ?

for both listed

and unlisted security mar¬

kets—and also

our

statistical information.

THE PLASTIC WIRE & CABLE CORPORATIOH
JEWETT CITY, CONNECTICUT

-V'

---.J

-V-

Vi'l-

- •

•

;

Manufacturers of

ELECTRICAL WIRES, CABLES & CORD SETS
Shares

Outsta'nd*

Income

(as
amended)

ing at

per

Year

Shere

1952

$374,813

108,667

$3.45

1953

278,957

108,667

2.57

1954

248,967

146,315

Chas. W. Scranton & Co.

Net

Nel Income

1.70

fiscal

1955
1956
1957

322,548
■AvtV,;

163,208

1.98

636,632

167,533

3.80

734,126

185,888

3.95

209

Members New York

CHURCH

NEW HAVEN 7, CONN.

STREET

Branch
'

Bridgeport

Danbury

Stock Exchange

Offices in
*.

New London.

New York Phone: REctor 2-9377

Wateribury

Teletype: NH 194

Volume 187

Number 5734

The Commercial and Financial
Chronicle

(1751)

THE OVER-THE-COUNTER MARKET

Porteous & Co. Formed

-VAST, VITAL, AND VOLUMINOUS

Casn Uivs.

Appro*.

Including
(Mo. Con¬

■Extras for

secutive "12 Mos.' to
Yeari-Cash i '.Dec.' 31,
Divs. Paid

.
.

tion

Building, Inc

Chicago

1957

3.00

Company,
Inc.,
has
been
with
offices at 3
Penn
Center Plaza to engage in a securities business.

formed

1957

building

office

California drug store

0:85

Time, Inc.

27 '
of

Men's suits,

Timely Clothes, Inc.__
Tihnerman

>a0.40

"Life,,?' "Time,"fJ-"
"Sports Illustrated"

"Fortune". &

16%
18.

Title

52%

Insurance

Title
1

1.00

2.10

25 .;-

8.4^:

0.70

4.1

Co.
1

Title

Trust

(Los Angeles) I
Title

Co.

16
•

Corp.
.

stationary

mowers

and,

power tools

Manufactures

machinery,

Wheels and fan blades.

5.9

•

21%

2.7

MT.

5.5

•

2.00

8.8

0,70

3.5

1.10

72%

1.5

3.00

44%

6.7

automotive

now

—

'2.00

with Dean Witter

Co.,

bils is

now

coeur

connected

with Pran-

Company, Inc., 39 South

La Salle Street.

•?-/

With W. E. Hutton & Co.
BOSTON, Mass.—David-G. Wil¬
liams is
&

with

now

E» Hutton,

Co., 75 Federal Street.

E. F. Hutton Adds
(Special to> The Financial Chronicle)

FRESNO, Calif.

—

Audley N.

Coelho has joined the staff of E.
F. Hutton &

Company, 1035 Van

Avenue.

formerly

was

Leavitt, Spooner

With Eastman Dillon

(Special to The Financial Chjionicle)

BOSTON, Mass. —Jay M. Finn
is

now

affiliated

with

Shearson, Hammill

(Special to The Financial Chronicle}

Leavitt,

LOS

ANGELES, Calif.—Samuel

B. Morrison has become

with

affiliated

Eastman

Dillon/ Uniort SO*
curities & Co., 3115 Wilshire Bou¬
levard.
He was previously With
Dean Witter & Co.
"t:
,
.

Joins Evans MacCormaclc
Joins Hill Richards

been

of America

(Special to The Financial Chronicle}

(Special to The Financial Chronicle)

LOS

ANGELES, Calif.—BOttry

D. Persons has

the

Evans

Co., Bank

joined the staff Of

South

added

Building.

MacCormack

& Co.,- 453
Spring Street, members of
the Pacific Coast Stock Exchange.

(Special to The Financial Chronicle)

8.3

LA
CROSSE, Wis.—William B.
White has become associated with

22.00

610

3.6

Shearson,

1.40

4.5

.f-

Twin City Fire Insurance Co.

Joins

staff of Hill Richards &

0.75

utility

(Special to The Financial CHro^iclE)

CHICAGO, 111.—Ralph W. Tib-

Ness

SAN DIEGO, Calif.—Van Duyn

Joins
j.

Estate

Inc.

3.9

"Real

ration.

Paul

Co., Equitable Building.
was
formerly with Blyth &

Tucson Gas Elec. Lt. & Pwr._

the group on
Investment."

Ridgway has

Manufacturing Co

merly

0.60

4.00

100

4.0

Mr. White

Co.,

401

was

for¬

Crosse" representative

for Loewi &

3.3

Hammill

Main Street.

: v

Co., Incorporated.

'•

;

€■:

Insurance

Twin Disc Clutch Co
and

With

gears

* Details not complete as to
possible longer
•? Adjusted for stock dividends,
splits, etc.

Including

stock dividend

Coburn, Middlebrook

(Special to The Financial Chronicle)

rfecord.

Wells has
Aug. 1, 1957.

HARTFORD, Conn.—George J.

predecessors,

Pius

50r/o

Ray Jambor will ad¬

Stock Exchange. He was formerly
with Wall Street Planning Corpo¬

V.
■

Real Estate

Spooner & Company, 585 Boylston
Street, members of the New York

/
.

Bicycle saddles

Clutches

name

'''

Insurance

Trust Co. of Georgia

Diversified

firm

PORTLAND, Ore.

insurance

gas

the

(Special to The Financial Chronicle)

30.

and

Gary Co.

With Dean Witter
.

Joins Francoeur Staff

with Francis I. du Pont & Co.

8.3

1.40

Company

Electric

under

Delzell

equipment

Diversified

dress

M. B. Gary & Co.

products

Trico Products Corp

in St. Paul.

FREEDOM, N. j.—Beverly

Terrace
6.5

;

and

engaging in a securities
business from offices at 18 Nuko

;

Co.

Universal

Research

Feren is

accident, health "

Fund

Forms M. B.

151/2

Douglas K. Porteous

100

1.00

City Inv. Women

To Hear

6.7
6.4

(Special to The Financial Chronicle)1

Management Co.

truck

Manufacturers

and

1.05

Travelers Ins. Co. (Hartford)

Trinity

Co.

that- Ilobert

had

which Mr.
ST. PAUL, Minn. —The Twin
Dougherty is also associated. Mr. City Investment Women's Club
Benzing was formerly with Gam- will hold a dinner meeting on May
mack &
Co., Granbery, Marache 21 at the Town and Country Club

f2.73

Mfg. Co.^—

Townsend

,25%:

held

from

Twin

*.(/•,

Sterling silver tableware
Fork-lift

*''

1.40

blower «*'■'■»•••

Towmotor Corp...

6.4

•

Torrington Mfg. Co.——/ .I—

Porteous

Corpo¬
ration, with

Toledo Trust Co..rli^_J_I__-J: 24
Toro Manufacturing
Corp
11
lawn

rea su r er.

Funds

4.2

will
on

Meyer M. Goldstein,
executive director of the pension
planning company. \//

26
%

1.00

Gasoline pumps

Power

1.50
5*;

i-y-

Meat packer

Tokheim

•••

City

Further information may be ob¬

is President of

j.A^__^';28

insurance

Tobin Packing Co

...

seminar

tained

Secret ary-

...

Title" Insurance &

Troxel

Calvert

Friday, May 2;
Buffalo, N. Y., May 9; in New¬
ark,
on
Thursday, May 15; in
Philadelphia, May 16.

and

"Chronicle'* of April 10

indicated

was

Pennsylvania

insurance

The

Dough erty,

1.80

Wire

7.7

V.c''r*.T"s

Min-1

Insurance Corp. of. St.V ""
,_i':
31

Life,

;

Mr.
.15

"2.15

Towle

;

Insurance

Louis
...

President

the

become
associated
Planning Company,
with Coburn &
625 Madison
MiddlebToOk, Juc.
Avenue, New York
This was in error. Mr.
Calvert is
City, has announced a series of
now with
Cooley & Company, 100
free one-day seminars on
pension, Pearl
Street, Hartford, members
profit-sharing and group insur¬
of the New York Stock
ance plans
Exchange.
during a recession.
New York

Charles M.

.-l;-.-' a50

Title

Wayne
R.
Benzing, Vice-

7.1'/;

Inc._:: :::12

bronze rods

riesota

:,•*

;

3.75

/Speed Nuts"
and

2.2

The Pension

Porteous,
President,

■/:

coats, etc.

Products,

are

Titart Metal Mfg. Co
Brass

5.1

chain

Time Finance Co.
(Ky.)_____
Consumer finance—personal loans
Publishers

Officers

6.3

Douglas

Thrifty Drug Stores_____—__

.CORRECTION

Planning

Seminars Announced

and

Paymts. to
Dec. 31,

31,

1957.-

300 Adams

Based

QuotaDec.

Philadelphia

PHILADELPHIA, Pa.—Porteous

% Yield

Pension

Continued,

page

become affiliated with

Coburn &
Middlebrook, Incorpo¬
rated, 100 Trumbull Street.

•t

always ready
♦
,

serve

your

Connecticut needs

and those of your customers
may
!

jhe

•'•«*•«/

v/.v •

served by The Connecticut
Company and The Hartford Electric
Light Company are now (since January 1,
1958) served by one company.
Annual Report available
upon request

areas once

1
■

■i

1
1

THE HARTFORD ELECTRIC LIGHT COMPANY
L

•

16 Convenient Offices

Your

Power

area.

CONNECTICUT

J../

be locating in this

who

176 Cumberland Road

inquiry invited
1

Connecticut
National Bank

Wethersfield, Connecticut
BRIDGEPORT
Member

Federal

Deposit

Insurance Corporation

The Commercial and Financial
52

Chronicle

1958

Thursday, April 17,

(1752)

Continued

uncertainty regarding the
Consequently,
the bank foresees only a nominal
rise in
mortgage financing for
1958.
After declining from $16.2
billion in 1955 to $11.6 billion in
creased

Study Sees Financing Needs Near
Interest rates

can

Peak

somewhat below current

be expected to drop

principal conclusion of "The Investment Outlook
for 1958" study prepared by Bankers Trust Co. under the tute¬
lage of Dr. Reierson. The Bank's prognosis is based on as¬
sumption that there will be a modest decline in the demand for
capital funds this year offset by an increased flow of savings.
levels is the

recent

record

"The
ment

level, according to

re¬

mm?.

pany,

New

York.

The

study

Dr.

quently, the net debt of state and
local governments is estimated to
rise by $5 billion in 1958, com¬

Roy L. Reierson

Roy L. ReierVice -

60n

pared with $4% billion in 1957.

Total
ment

Mortgage Financing

Chief Economist.

short-term

debt

the

and

the volume of corporate net new
at

municipalities reached

for

billion

1958,-

but*

would

this

make

still

real

estate and state and local govern¬
ments will probably rise moder¬

ately and offset

VA terms

ipated

some

of the antic¬

drop
in
corporate
new
For the year as a whole,

issues.

the 'Bankers

signifi¬

The flow of funds to savings

pected

still- remains

to-be

buying interest

seen

how

be re¬

ex¬

1958.

$25 bil¬

"'■■■/

tirement

funds.

of funds to

Also, the inflow

mutual savings banks

and savings and loan

has

Kidder, Peabody & Co.
Founded

1865

investments

are

since their
largely or

up;
either

■

Trading markets inv
New

long-term financing requirements.

Telephone:

NEW

Federal

Street,

Liberty 2-6200

Boston

Teletype:

YORK

LOS ANGELES

New England Branches:
•

338

CHICAGO

PHILADELPHIA

Lowell

New Bedford

Springfield

•

Newport

Taunton

net

these

forces

obvi¬

ously points to significantly lower
interest rates in 1958 than in 1957,
the report points out.
However,
rates

and

dropped

yields
have
already
sharply from their

the

decline

and

Providence

•

Worcester

easier

business

credit

activity

policy has al¬

ready taken place.
In

fact,

some

of the decline in

sustained

huge volume of corpo¬
rate new issues, reflecting partly
the refunding of bank debts.
If
this

'Distribution

flood

taper

new

off,

the

issues

of demand in the

will
move

for

than 100 YEARS

and

ease,

should

Bankers

projections assume, the

in NEW ENGLAND

Trust

pressures

somewhat

yields

lower

and

Boston

NewAork

Ilartford

Pougkkeepsie

United

Car-icing, ice,

f?;

;

*48:7- 74,00/-;

-y

4.3.:'y^^

^'7-7
51 7 70.90
12; T: 7.5 ; 7
v7vv'»-- '2^77v:"'
*50; 7, 0.35 / v/3%"i:;10-4v7 ;.(•

':J

,if;i(-X

■

....

'4.2

347

(Portland)-

S. Radium

Corp. --.j-,—iw

industrial

51'7

2.60

59%r.;74.4

147^i0;45^J^l;^^:3;.9

•

rfl/HoHntl

4mo 1

2.125

Denver

U. S. Natl. Bank

radiation

■

dials, panels and name- *
*; ,L.". >

plates'
U. S. Realty

77v;

56^7

f-2.00

'i-:-i->/,'■'•'

•

United States National Bank

Phosphors,

•._•»-

y/;K:.- A'-?**'■ *^

19>

Lumber Co.;

TkUAnviUAWH

*. /.•

—-JV;77v:/7

Guaranty Co.

insurance

eral interests.

•

*»',

7 ^
:N-■

•

.V••

& Investment Co.

1.25'

5.2

States Testing Co.—

0.20

2.0

Real estate

soaps,

oils

(Del.)

U. S. Truck Lines

Inter-city motor carrier

opthalmic
glass frames

public

UPSON
Exterior

5.8
2.8 :

1.60

24%

6.5

1-20

9.2

•

010

..'I

•

utility

CO—

(THE)
and

5.9 /

^3%

Power

Upper Peninsula

6.7

24%,/

v,.

distributor

multifocal

Electric

of
lens blanks

5.4

t1-43
•

—

59%-

/4%7

Matches and candy

Univis Lens Co

1.25
**'

Universal Match Co

21%7

Utilities, Inc.-—

Holding company

and eye

3.20
0.30

104

United Steel & Wire Co.
Wire and metal specialties

and

19%; / 8.2

1.60

•

U. S. Trust Co. (N. Y.)

United

—

interior fibre

wall-

board
•

*■

advertisement on page 43.

See Company's

Details not

complete

t Adjusted for stock

to possible longer record,

dividends, splits, etc.

•

Knowlton

Building.

PRIMARY

MARKETS

STOCKS

NEW ENGLAND SECURITIES

Co.,

BOSTON

was

for¬

CORRESPONDENT

KIDDER

CO., NEW YORK

360

Co., Bank

19'7,/71.20'••.20% 7: 5.9 ? \ ;7

Holding company, land and min-

sources,

Pawnbrobing

'''

*■:

.77V. V:
19, :;;I'0.30 ) /;\v6%'S/s 4;4'i x .7/

Insurance

Diversified

•

United States Loan Society—

58/— L35.7o.z3<%'i;>2,5.8;

UTILITY and INDUSTRIAL

Besson has been added to the staff

of America

U. S. Fire Insurance Co

J. B. MAGUIRE &
Milk Street, Boston 9,

CO., INC.

Massachusetts

Open-end Telephone Wire to New York
New

Frank

-/?rH'
-

and other paper products

Diversified

to.857;:/i^|, .5.9

etc.

u. S.-Fidelity &

tools

Manufacturer of envelopes, paper.

39%'^ 5.1

—-

u. S. Envelope Co
cups

*}■

• '

will

OAKLAND, Cal.—Woodrow M.

; t w

'77'% */vi
Storage...7 7..c%% '77777--, v;/-'1 \/'7
16. v': 7 2.40
26,777; 9.2 '7/77

Cold

States

Corp.."

Frank Knowlton Adds

Exchanges

; v. -

utility

Greeting cards

Springfield

■

c 1.8 7
53. -7. 0.80 3 45
l-'l \y: a
»,,1; ;7:7u;v7i
"",r7
r />%■.*-.> ,>'?!
;7-

United Printers & Publ., Inc.

(Special to The Financial Chronicle)

Providence

y.\.

3.6

Connecticut operating

STREET, BOSTON

Members New York and Boston Stock

Fontaine

Twenty-first Street.

Teletype BS-283

United Illuminating Co.—

levels.

merly with Sutro & Co.

Boston Telephone LAfayette 3-2400

1
•

...

&
tools,
such
as
3P
commercial drop

service

hard

•wrenches,
iorgings

Warren has become affiliated with

3.8

17 7

(Special to The Financial Chronicle)

]5 STATE

70,

capital markets

bond

With Grant, Fontaine

Grant,

2.50

~~ 7

cutting

OAKLAND, Calif. —Charles B.

Estabrook & Co.

;
'

United Drill & Tool

Manufacturer

bond yields has recently been re¬
traced
under
the
impact of a

2.00 '

United

1957 peaks as to indicate that a
large part of their adjustment to

•

gas

Research and tests textiles,

The

1,40

;/ 21;;

Corp. of

natural

'V, )

;

19
19

important narrowing of the gap
between
the
savings flow, and

Market Pressures to Ease

i—

and

5.6

.3.00

-----

*33

oil

6.9

170.?/ 4i%/3/4:l

England Bank, Utility and Industrial Stocks

14J/2,

28.*;

their

company assets which has slowed
down since 1954 may improve. :
On balance, the report suggests

1.00
-

Bank of Memphis—
id
Union Trust Co. of Maryland

competitors. In addi¬
tion, the growth of life insurance

Exchanges

3.1

-7
20

Pitts-'

production

almost wholly in mortgages, they
able to offer a better return
than

Union Planters National

are

Members New York, Boston, Midwest and
American Stock

associations

recently picked

1.25

poles

Bank

Oil and Gas

Crude

show some increase in

5.3

Louisiana, class B—

in¬

Although reduced corporate
kindled by easier financing con¬ profits could retard, the growth
rate of corporate pension funds;
ditions under the current situation
rising employment and pay by
of reduced employment and instate and local governments will,
it
is
anticipated, result in in¬
creased expansion of public re¬
may

distribution

Natl.

Union

Savings-Inveslment-Gap Reduced

the. year.

stitutions, in the aggregate, is

much

lion, compared with $26.3 billion
:

report " esti¬
mates aggregate requirements for

in 1957.

later

5.4

24%

Manufacturing

Perishable^ metal

However, the study cautions that

Trust

eueh investment funds at

become

may

factor

cant

37V2

1.32

town, Ohio

cessive liberalization of FHA and

12.00

Union Natl. Bank of Youngs-

1958

de¬ the second highest year on record.
clined sharply from 1955 through Since the volume of new corpo1957, is expected to turn around rate security offerings has re¬
in 1958. Mortgage money has be¬ mained high so far this year, it
come much more readily available
is noted, the decline may be quite
and, the bank believes, the suc¬ steep later.

peak in 1957 and are expected
lo decline only slightly in 1958.

requirements

$7%

redwood

burgh

would be about one-fourth

4.0

Co.
Power

5.2

39%

—

Metal

Union

50 "

1.60

41.

Inc

hoists, and castings

Chucks,

Union

2.60

;

Union Manufacturing Co

working capital.
Weighing these various factors,
the Bankers Trust study estimates
issues

Angeles)—

Natural gas utility
Union Lumber Co

replen¬

7.1'7

(Cleveland)

California

Union Gas System,

Mortgage financing, which

Financing

on/

0.75

*•/

Union Commerce Bank

profits outlook. Also, the
more favorable borrowing terms
are encouraging refunding of

21—

refrigerators

Union Bank (Los

less than in the banner year 1957,

Bottoming Out

for invest¬

requirements

capital by corporations, real

estate and

ago,

year

poorer

which

■: -,-v

President and

bank

below

ishment, where necessary, of

under the di¬
of

somewhat

0 90

goods

rubber

Business stationery

balance because of the decidedly

Department

rector

prompt

Commercial

working capital.
However,
the supply of funds from internal
sources
is also expected to
be

governments to bring issues to
market in large volume.
Conse¬

E4*

pre-

each
by
the

the

increase

the

Manufacturers

6.9

Tyer Rubber Co

a
step-up in this area. In fact,
larger borrowings may be neces¬
sary if revenues fall off. Further¬
more, the change in credit con¬
ditions is enabling state and local

Economics
of

still

are

local govern¬

and that the recession may

pared
year

and

state

spending

2.6

1.00
,

Uarco, Inc.—

lower

1957

Corp

Theatre and office building

for

that construction out¬

notes

ments

fep

Com¬

220 Bagley

funds

Tyler Refrigeration Corp.—

because

requirements for
will decline in

Corporate
long-term

•

.Appro*.
'
% Yield
Quota- Based on .
tlon-, Paymts. t»

Dec.,31,; ,-Dec. 31,
1957
1957
10"

Dec. 31,

Divs. Paid

plant and equipment, and partly
because of reduced requirements

lays

by Bankers

12Mos. to

Years Cash

1958, the report points out, partly

port

leased April
Trust

secutive

$12% billion in 1958.

nancing spurted in 1957 and is
expected to register a further
substantial rise in 1958. The re¬

Outlook

1958,"

Including

Extras for

local government fi¬

and

State

Invest¬

for

CashQivs.'
"

No. Con-

Corporate Offerings to Decline

State and Local
Government Borrowings

Despite the business downtrend,

-VAST, VITAL, AND VOLUMINOUS

1957, the net increase in mortgage
outstanding is estimated at

about

MARKET

THE OVER-THE-COUNTER

debt

New Records for

aggregate demands for investment
funds in 1958 should be near their

from page 51

economic future.

York—CAnal 6-1613
Bell

System

Providence, R. I.—Enterprise 2904

Boston—HUbbard 2-5500
Teletype—BS

142

Portland, Maine—Enterprise 2904

Hartford, Conn.—Enterprise 6800

•

■

Volume 187

Number 5734

.The Commercial and, Financial Chronicle

(1753)

THE OVER-THE-COUNTER MARKET
'

~ '*

* "■

•

Cash Divs.
|\|0# Con.

:
•'

;

•

(

"•

blocks and rope fittings

•

Fire

Dec.

31,

1957

0.80

Financial

...-

r.-.v

•

•r

Disaster Insurance

' /

■

21"

1.00

Utah Southern Oil Co

0.65 "

4.3

Valley Mould & Iron Corp.—
*

—

Ingot moulds and stools

■

3.00

1.00

.,.

2.8%'

r.)

Vanity Fair Mills

!'/•

Phoenix

v :

*10

1.05

3.4

the

7.0

Heating Corp

Car beating aystema

A A

3.00

2.50

seems

1958

7.0

-Makes -counting devices

/Ice-cream

0.30
11^ .'/■

6.4

./'//••* Rotary
:

i/i

pumps

Owns
■

soft cOal

650

3.8

;i .40

has

Congress/.

5.8

/,>/. l?-f,

land

A 6.00

*42

Virginia

;-,V

'-and Kentucky

•

7.3

.•

■;

a-';

•

Vlchek Tool Co..

" 1

Tools

and

plasties:, '*

State

•

in,"

0.60

1.3
.

•

-i

f 0.48

5.5

f 0.35

Ingot moulds and plugs

151/2

2.3

(Winston-Salem)
Walker
;

Manufacturing Co. of

Wisconsin

Auto parts

fl.09

3.1

•/.

Walnut Apartments Corp

2.50

5.8

Owning and operating apartment
house
■

Philadelphia

Warehouses

and

outdoor

lime

Bros.

and

6.0

11.96

5.6

concrete

Co.————-

2.00

301/2

6.6

papers & allied

1.40

26y4

Washington

National

2.00

8.3

today
this

labor

was

entered

period of
Congressman

prosperity.

whether

yet

Before

the

0.70

1.0

2.25

9.4

was

Congressmen

1.25

15%

7.9

From

recent

officials,

Rold

stainless

2.00

0.80

180

them

cannot

upon

any

Furthermore,

Congressmen
for

been

Therefore,

pounds,

glass

and

distributor

were

not

running

office, they would not

0.40

10.425

6.7

Now

>
with

these

let

all

families

remember

that

without

are

earner.

Welsbach Corp., class B

Maintenance
street

and

Installation

lighting systems

(Special to The Financial Chronicle)

SAN

DIEGO, Calif.—Richard F.
Beck, Jr. is now with J. A. Hogle
& Co., 1030 Sixth Avenue.

Joins
SAN

cific

worked

the

"30's," why have they not already
prevented this business recession?
The Congressmen up

Jr. has joined the

for election

Davis, Skaggs & Co., Ill
Street, members of the Pa¬
Coast Stock Exchange.

Robert

recession

still

FRANCISCO, Cal.—Rich¬

L. Kehne,

Sutter

point out

are

Davis, Skaggs

(Special to. The Financial Chronicle)

Wiedenmayer Now
Lundborg

With Irving

(Special to The Financial Chronicle)

SAN

FRANCISCO, Calif.—Rob¬
Wiedenmayer is now con¬
with Irving Lundborg &
Co.
He was formerly with First
California Company for many
ert

nected

years.

of industrial America

of
/

X>etails not complete as to possible
longer record.
t Ad justed for stock dividends, splits, etc.

Continued

page

DAYTON MALLEABLE
IRON COMPANY

WE ARE RETAILERS

Show

PLANTS

Cedarburg (Wisconsin)

UTILITY
..

INDUSTRIAL

Common and Convertible Preferred.

The First Cleveland
.

Dayton 1, Ohio

Dayton, Columbus, Ironton (Ohio), Buffalo
and

INSURANCE

•

blocks of over-the-counter

BANK

Telephone PR 1-1571

malleable, steel, aluminum and magnesium

Annual Statement available

Building

CLEVELAND 14

iron, malleable iron, pearlitic

Corporation

Member Midwest Stock Exchange
National City E. 6th

CASTING IN gray

Teletype CV 443

CV 444

wage

•.

5.7

even

With J. A. Hogle Co.

men

(2)

heart

today, with the "terrible unem¬
ployment," less than 1% of our

Electronic manufacturer

now

calling for pain removers, plas¬
ters, and tranquilizers.
Finally,

Versatility in casting production in the

flat

/---'.
Wells-Gardner Co.—j.———
*.

re¬

previous tests.
these < panicky

5.7

Manufacturer of paints, varnishes,
industrial coatings, chemical com-

;
-

increasing
logicallybe

Makes metal working machinery

Watson-Standard Co.
•

applied

•

"cures"

depression

now

based

Deal

before

early in

years

New

never

6.5

readers, know

staff of

spending, (3) dishonesty,

(4) high living costs, and (5) un¬

strip

Waterbury-Farrel Foundry

inefficiency,

During the
history, the
have

notwithstanding the
fact that practically all the above
they

(1)

about that as anyone.
do know that further de¬
valuation of the dollar will follow.

occurred

force.

not; you,

ex¬

}

very confused.
I
to them that the present

"remedies"

because

at the

interviews

New Deal

careless

verse.

Court De¬

Are

personally have been through four
depressions. They developed

"New

Too Hasty

has

seri¬

Chapter

ard

Washington

Roosevelt

14th

much

But

of our dollar value, which
declined to 50 cents.

without wage
depression?

Franklin

pense

Most

the

"cures" will bring back
prosper¬

prosperity;

new

do know it

the

the Supreme

cision created the

are
a

another

knows

but

note

ity

by the U. S. Supreme Court, and
the house of cards collapsed. Then
again improved and we

Dead"

that

I wish—when

Now to conclude my little ser¬
mon;
The truth is that no one
knows
whether
these
proposed

business
soon

do, but

man.

declared unconstitutional

•

Crude oil and gas producer

Micro

mention unemploy¬

last

be unemployed, my esti¬
less than 1% of the

last

legislation, farm/ price
supports, and finally the NRA
fixing
of
retail, prices.
This

is that

families

the

insurance,

such

Washington Steel Corp
of

"statis¬

era, every depression was allowed
to "take its natural course."
I

Insur-

Washington Oil Co

steel and

sons may

out

seem

ance Co. (Evanston, 111.)—

Producer

What About the Cures?
19

Life, accident and health-

...

5.3

Wire and springs

earner

products

Washburn Wire Co

'■

Roger W. Babson

today without a wage
compared with previous
Although 5% or more per¬

earners.

(S. D.) Co

Printing

fair

The current figures on un¬
employment are very deceptive.
They compare with only the past
few years when both husband and
wife have been working.
This,
however, has been an abnormal
situation.
I
have roughly com¬
pleted statistics for the number

mate

Paving contractors

Warren

"get

ing about pol'•
itics, but I do know

years.
12

gravel,

Warren

0.12

storage

Warner Co.
Sand,

definite

Carinthians, the eighth

cession.

veterans' pay¬
ments, Federal building loans, old
age
pensions, ■ minimum wages,
unsound, taxes on business, un¬

of families

Warehouse & Terminals Corp.

bring

ment

tics."

Wachovia Bank & Trust,

re¬

prosperity returned.

micks let

I know noth¬
'

that

business decline with

Great Depression, various
quack
"medicines, pills, and plasters"
were
used.
Among these gim¬

rather
to "g e t

First

unemployment
until
the nation had a "spiritual awak¬
ening." Then those evils were re¬
placed by (1) efficiency, (2) thrift,

short

little

reading his Bible—he would

evils

free

ously

leaders;

fundamental

such

economists

is not

increasing

and

out"!
15

Vulcart Moid & Iron Co

fire

they are pan¬
icky and rush¬
ing headlong.
Only they are
looking for a

than

Insur-

Co..

ance

7V2

2.7

"A/.*

Life

Non-parttclpating only

0.20
¥

Volunteer
-

labor

five

with

most

(3) honesty, (4) lower living costs,
and (5) reasonable labor
leaders,

hall

these

started,

way

■

Many

people in

15.0

where

22A ; 25.00

Virginia Coal & Iron Co

VI *-'

reason.

•

Vikmg Pump Co——

sulted in

void of all

•

Victoria Bondholders Corp.__
.*
hew :Tork City real estate

principled

started

Velvet Freeze, Inc.
>

was

•

"recession"

Washington.

seem
!

history
that

years to come,

menthere

Av.v

^Veedor-Root, Inc.__

if economic

report, in

may

Lingerie

/ Vapor

;

Valley National Bank of

Never before has
ecomonic panic existed in

I believe President
Eisenhower feels in his heart as

remedies "are still in force" and have not
prevented present
recession. Fears further devaluation of the dollar.

9.1

ques¬

leadership.

Mr. Babson criticizes "panicky Congressmen"
taking too hasty action and, particularly, synthetic cures
along New Deal lines despite the fact that almost all such

,> Oil and gas producer

time

vfor

'4.8

Washington, arising in

publisher's

wage earners.
*24

—

This

in taxes added."

such

examination of unemployment data
although 5% or more persons may be
unemployed, less than 1% of-today's families are without

Insurance

answer

They want more synthetic "cures"
put into effect at once, with a cut

reveals to him that,

8.0

Yet, they want these gim¬

micks increased and others added.

31,

1957

tion.

By ROGER W. BABSON

/.V

31,

Paymts. tc

Manufactures wire rope, tackle

Utah Home
Company

/
/

Based

tion

Dec.

1957

;

Dec.

Divs. Paid
J

Upson-Walton (The) Co

Quota¬

12 Mos. to

secutive
;

% Yield

Extras for

Years Cash

Approx.

Including
..

unable

are

Curing Depressions by
"Gadgets and Gimmicks"

request.

%
34

The Commercial and Financial Chronicle

(1754)

Cash Divs.

Continued from page 53

Including
Extras for

Quota

secutive

12 Mos. to

tion

Years Cash

Dec.

31,

vV-

Dec.

31,

1.00

17%

West Mich. Steel Foundry—

1.40

1.00

161/4

*35

2.60

1.2

5.3

1.00

15%

Willett (Consider H.), Inc.
Maple and cherry furniture

*18

0.60

caskets

Williams & Co., Inc.—
Supplies for industrial safety,

23%

5.2

Williams (The)

Winters

West Virginia Water Service
Wholesale gas; retails water and

1.60

ice

26%

1.20

4.5

Acquired

Diversified insurance

Power

auto

Wisconsin

4.1

2.73

—

surance

and

4.2

7.9

15 ',

0.375

4.50

Licorice paste for tobacco

Youngstown Steel Car Corp._
and

cars

0.25

0.10

9.00

186

-•

Department, stores in Midwest

/
1.00

Northern

(Minn.)

24 XV

4.2

0.75

—*33

16%

„•

; -

6.7

0.20 X" 44%

4.4

•

Owns

Illinois and

mines

10.0

190.80

Zeigler Coal & Coke Co._—-

4.5

■

2.00"

/ P|liforpiaVgold dredger
'

•

Kentucky

t Details not complete-as to possible longer record

States
Nov.

!11

Yuba CdnsoL Gold Fields

4.8

Trust

1.5

-.16%-

equipment

Younker J3ros.-i-v— i——

IS/-

7.9

Life

National

LVHUVVUUVtVUVHUHUHUWUHUVWVVtWUHV

In¬

Co.

1.00

1.6
■"

■Y.'/'v'■/'
&

Co.

28%

1957

Western Assurance Co.

aviation,

Bank

Wisconsin Hydro Electric Co.
Operating public utility

Westchester Fire Ins. (N. Y.)

1.20

-V:V,;
V

Young (J. S.) Co
/•«

(J. B.) Co.—

(Dayton, Ohio)

3.8

171/4

|0.66

Natl.

3.9

Operates hotels, camps and stores

Railroad

Wilmington (Pel.) Trust Co.

9.4

'15

———

Yosemite Park & Curry Co.-

6.8

6.2

12%

1.20

0.55

Manufactures toilet articles

4.4

2.10

truck

specialized

burial

Operating public utility

8.0

manufacturing

Casualty
Company

and

York Water Co

6.3

ing company

1957-

•

Candles and beeswax

operating utility and hold¬

West Point Mfg. qo,„

bodies

Dec. 31,

1957

Paymts. to

Corp

Manufacturing

welding, refrigeration, etc.

West Penn Power Co

Western

3.4

Natural gas distributor

marine,
casualty

11%
334

Boston harbor

tion V

York County Gas Co
Operating public utility

York-Hoover

Will & Baumer Candle Co.—

(Toronto)

fO.39

1.00

products

Fire,

4.00

7.8

Steel and alloy castings
West Ohio Gas Co

1957

f)e£. 31,

Dec. 31,

Divs. Paid

6.9

Operating public utility

Textile

5.6

Both

f0.97

Wiggin Terminals, Inc., v.t.c.

12 Mos.'to;

secutive

Years Cash

Quota-

Whitney Natl, Bk. (New Or.)

5.3

Telephone Co

1957

Insulated wires and cables

1957

Sanitation

1957

;

foundry and railway equipment

Whitney Blake Co.-

0.80

West Coast

1957

5.1

Paymts. to
Dec. 31,

31,

Cranes, Trambean, chemical,

West Chemical Products

tion

Dec.

31,

Approx.

% Yield
Based on

Including
Extras for

No. Con-

Whiting Corp.

Paymts. to

1957

Divs. Paid

Based

Quota¬

A^frex.
% Yield

No. Con-

Dec.

Divs. Paid

VAST, VITAL, AND VOLUMINOUS
Cash Divs.

12 Mos. to

Years Cash

Cash Divs.

Approx.

Extras for

secutive

THE OVER-THE-COUNTER MARKET

Thursday, April 17, 1958

% Yield

Including
No. Con¬

sickness and
hospitalization insurance

Surety
1.20

TABLE II

Life, accident,

A;
31%

Wisconsin Power & LightElectricity supplier

3.8

Multiple line, fire & casualty and
fidelity and surety bonds

1.32

26%

5.1

f0.99

5.5

3.00

6.7

OVER-THE-COUNTER

Wisconsin Southern Gag
-

Western Electric

Makes equipment

•

3.6

100

3.60

Western Light & TelephoneSupplies electric,
telephone service

gas,

2.00

,19

Wiser

water and

Holding company

lor

Cos._

2.20

Company
and

natural

The

Goodwill

and

31%

l.oo

SPS-;':

Station
30

Fort Wayne

0.80

10%

12y4

3.9

0.75

ioy4

2.125

6.4

5 to 10 YEARS

department store

WWWHWHUHHWUUWUHWVVtVWVWW

Woodward Governor Co

7.6

'.v.;

Manufacturer of automotive cable

Speed

products

Whitaker Paper Co
Paper products and cordage

Whitehall

engines

for

and

Cement

turing Co.

2.75

45%

Worcester

6.0

Manufac-

(Mass.)

—

Sheet

York

Whitin
v

Machine

Works

1.20

8.6

and

steel

3.00

41%

1.20

7.5

'V/X,./

7.2

Alabama

plate

Corrugating Co

Metal stamping,

Textile machinery

...

to possible longer record,
t Adjusted for stock dividends, splits, etc.

;

Natural..

Los

Angeles, Cal.
-

been

Milwaukee, Wis.

William A. Fuller & Co.
Members

Exchange,
by

has

Thomas

Oscar

for

Cate

the

Board

Class B

Brothers Co.;

Central

Cotton

Hutton

Com¬

Company

The

Kendall

Company;

Co.,

and

Antonio

Board

Nominated
•

Washington

Minneapolis

Members:

Midwest Stock Exchange
American Stock Exchange (Assoc.)

Managers

who

Election for
-

•

June

for

1959

Exchange

Inspectors
were:

4.1
'

18%

0.25

•
;

1.4

1.20

19%

6.2

1.40

36%

3.8

10%

cards

Assurance

Home

—

Plastic

insurance

7.4

0.80

0.60

7.5

0.75

8.8

insulated

Auto

wire

0.20

5.0

Co.

Manufactures

nailing

Diversified insurance

0.85

27%

3.1

;

0.75

6.8

0.95

5.3

1.00

2.9

0.625

0.63

0.80

23"%

3.4

and

(Milton)

Games

machinery

Blue Ridge Insurance Co.' ' 8 / *
x

' s;

cable

and

financing

Auto-Soler

2.00

6.7

1.35

16%

8.2 !

0.80

9.4

0.80

13%

6.0

0.80

13%

6.1

25-cent payment

in first

toys

Brooklyn Borough Gas Co.__
Operating public utility

Capitol Records, Inc
Phonograph

records
_______

7.5

Inner

tubes, brake lining, bicycle
tires, etc.

Cedar Point Field Trust, ctfs.
Texas

oil

12.6

wells

Central Public Utility Corp..holding company

Chicago

Railway Equipment

Co.
Railway equipment
(malleable)

and

foundry

Churchill Downs, Inc
"Kentucky Derby"

Cleveland Trencher Co
Manufacturer of

mechanical

Commonwealth Telephone Co.

(Dallas, Pa.)

William

hold

Monday,

Consolidated Freightways, Inc

its

Telephone service

Motor

will

Election

1958.

6.2

trench excavators

William H. Spilger.

Annual

greeting

Atlas Finance Co

were

Smith, Sidney'S. Shlenker and
The

•

Mineral wool insulation

re-nominated.

Financial 6-4600

40.98
^

American Rock Wcol Corp.—

are

incumbent members of the present

CHICAGO

New York

liams, Anderson, Angelerv, Boedt¬
ker,
Cate,
Knell,
Miller,
Jr.,
Paine,
Perutz,
Rogers,
Tolson,
Vincent, Vose, Jr., and Weis

135 South La Salle Street

trl.00

Corp.
Diversified

Gustave I. Tolson of Geo. H.
McFadden & Bro.; Robert K. Vin¬

Zalduondo of Orvis Brothers & Co.
Messrs. Love, Jr., Figgatt, Wil¬

and

American

pany;

(Incorporated)

8.0

Corp.,

Manufacture

Alden H. Vose, Jr. of Kohlmeyer
& Co.; Albert M. Weis of Irving

H. M. Byllesby

Mart

Greetings

Carlisle Corp.

Building Co.

Stuart

Weis

0.50

Chicago real estate

Bradley

cent

5.9

Furniture

Co.; Frank J. Knell, New York;
John D. Miller, Jr. of Robert Moore
& Co.; Hugh E. Paine of Abbott,
Proctor & Paine; Fred W. Perutz
of Schwabacher & Co.; Malcolm
J. Rogers, New York; J. Raymond

PRIMARY MARKETS

20%

„

—

American

were:

Boedtker of Volkart
W.

;

Products

Forest

American

New

Harry B. Ander¬
son
of
Merrill
Lynch,
Pierce,
Fenner
&
Smith;
Edward
C.
Angelery of Felder & Co.; Alfred

Teletype CG 146-147

•

American

Ansonia Wire & Cable Co

Nominated

Managers

CHICAGO 4

Tel. DEarborn 2-5600

Cotton

the

Treasurer.

of Midwest Stock Exchange

209 S. LA SALLE ST.

l'or President
announced

Corp.

Russell,
Jr.,
Chairman
of
the
Nominating Committee. Also nom¬
inated were.
Tinney C. Figgatt,
for Vice-President, and John M.
Williams,, of Royce & Co., for

Madison, Wis.

(R,: C.) Business Machines; Inc.

Logging and lumbering

Love, Jr. of Ander¬
Clayton & Fleming was nom¬

York

St. Paul, Minn.

Sheboygan, Wis.

a'.'

1.20

"•

;

Natural gas distributor

Exchange

William K.

inated

;

Adding machines, typewriters, etc.

Receives Slale
son,

Dec. 31,
1957

Allen

N. Y. Cotlon

With Own Private Wires to

Based on
Paymts. t»

tion

Allied.Gas Co.

.Quota-030.31,
1957

1957

Tennessee

Pipeline

Details not complete as to possible

BROKERS and DEALERS

Dec. 31,

Divs. Paid

Gas Co

longer record,
t Adjusted for stock dividends, splits, etc.

•

wholesale plumb¬

ing and heating supplies

Details not complete

Extras for
12 Mos. to

Years Cash

4.8

Wyatt Metal & Boiler Works
3.9

1.60

—

3.00

No. Consecutive

•; •

County Trust Co.
-

Approx.
% Yield

•

Including

Manufacturer of portland cement

Cash Divs.

propellers

controls

for

7.3

Wolf & Dessauer Co

Whitaker Cable Corp

f0.48

Detroit broadcaster

3.2

sale

PAYERS

DIVIDEND

pro¬

gas

(Detroit, Mich.)

Manufacture, conversion

products

oil

Consecutive Cash

5.3
WJR

Weyerhaeuser Timber Co

public

gas

ducer

41 %

operat¬

ing electric utility

of forest

Oil

Crude

Western Massachusetts

natural

utility

6.1

32%

Company, Inc.
Operating

for A. T. & T.

freight

Details not complete as to possible longer record.

t Adjusted

for stock dividends, splits, etc.

tr New annual rate

quarter of 1958.

the stock based

A 50ft stock: dividend was said

Deo. 2, 1957.

Volume

Number 5734

187

The Commercial and Financial Chronicle

THE OVER-THE-COUNTER MARKET

•

••

Cash Dlvs.

'■»

VAST, VITAL, AND VOLUMINOUS
Casft Dlvs.

Including
No. Consecutfve

12 Mos. to

Quota-

Based

tion

Dec. 31.

Dec. 31,
1957

1957

Rock

0.80

0.70

f0.48
16.00

245

paper

1.00

20%

pumps,

1.25

3.9

Limestone

1.25

181/4

Common

0.47

3.8

121/2

Eagle Stores Co

0.45

3.0

17%

2.2

t0.38

0.15

Natl.

Bank

of Trenton

Leader

4.8

parts for

Brothers, Inc

0.60

oy2

6.3

15%

0.20

3.00

51/2

9.5

11.1

fO.52

6.0

1.00

13%

1.00

mining

'..J

0.70

f0.60

141/4

0.80

3.00

6.4

0.40

2.20

7.3

1.175

16y4

7.2

4.2

23%

5.4

1.7

0.25

1.10

8.5

0.75

7.5

1.60

6.7

0.10

distributor

screening

Norris-Thermador

71/2

Corp..

Co.

3.3

i6y2

1.20

Palace

7.3

Corp.

6.7

Trailers

etc.

Cement

Pantex
8

2.00

7.7

1.20

5.7

(■

Manufacturing Corp.

|0.59

15%

Park-Lexington Co
N.

real

10.00

155

8.5

fl-05

7.0

estate

Parker-Hannifin

Formerly Parker Applianca Co.
name
adopted Sept. SO,
19S7, following acquisition
of
Hannifin Corp., Des Plainee, 11L

9y4

0.475

SOUTH LA

MIDWEST

STOCK

SALLE

STOCK

EXCHANGE

automatic

1.20

13 3A

8.7

electric

controls

3.00

315

0.05

-5

Regional

1.0

super

Penton Publishing
Business and

t0.34

2.0

market chain

Co.-

technical

1.275

20%

8.2

Journals

t Adjusted for stock dividends, spllta, ate.

Continued

page

UNDERWRITERS

-V,

AND
DISTRIBUTORS

TELEPHONE

MILWAUKEE

ANdover 8-5700

GRAND

TELETYPE

MT.

CITY

STREET

3, ILLINOIS

PUBLIC

UTILITY,

INDUSTRIAL. AND

RAPIDS

CLEMENS

MUNICIPAL

650

SECURITIES

PRIVATE WIRE SYSTEM COAST TO COAST

Retail

Trading

SINCE

••

•

,
.

•

■

1912

"
.

the

Trading department has immediate

over-the-counter

markets

all

access

sections

of
-

country through

linking
active

its

private

wire

system

offices and connecting with other

our

trading houses.

We invite your inquiries.

CHICAGO

A. G. Becker & Co.

NEW YORK STOCK

YORK

STOCK

EXCHANGE

MIDWEST STOCK

INCORPORATED
Member NEW

EXCHANGE

NEW YORK

EXCHANGE

and

other

principal stock exchanges

120 So. La Salle St.

Chicago 3

And

EXCHANGE

(ASSOCIATE*

Broadway

New York 4

Other

AMERICAN STOCK

Russ Building
San Francisco

Cities

EXCHANGE
(ASSOCIATE)

I
j

Controls, Inc

Manufactures

(W. L.) Corp

Penn Fruit Co. Inc

./-V /•."

equipment

system components

5.1

Manufacturer of hydraullo & nultt

3.8

Penn

McDowell

AMERICAN

YORK

Our

New

estate

3.9

Laundry equipment

tl.28

Operating public utility

trays,

cement

0.50

Northport (L. I.) Water Works

plastic

t Adjusted for stock dividends, splits, etc.

EXCHANGE

CHICAGO

KANSAS

t0.09

Listed & Unlisted Securities

STOCK

DETROIT

1.3

Limestone

7.3

5.2

Metal stamping and fabrication

—

■

N. Y. Wire Cloth Co.

■

ment

splits, etc.

Straus, Blosser
STOCK EXCHANGE

(

0.40

manufacturing

Natural gas

to possible longer record,

Underwriters—Brokers

and Pennsylvania

gas

Insect metal

Material Service Corp

t Adjusted for stock dividends,

DETROIT

10.4

Heavy duty trucks; mining equip-

Maxson

YORK

53/4

operator

Electronic

NEW

0.60

2.00

(William S.), Inc

Lime

8.6

' 4.2

;

1
6

New Jersey Natural Gas Co.

7.1

MEMBERS

9y4

31/2

Bus line

supplier
as

0.80

0.25

15%
1

New England Lime Co

5.6

real

6.3

distributor

races

Natural

6.7

6.4

and

Hagerstown Gas Co

complete

26y8

N.Y.C.

"Encyclopedia Americana"

Details not

1.50

Marmon-Herrington Co. Inc.

Grolier Society, Inc

1.12

National Gas & Oil Corp

6.8

0.60

10.0

17.3

Retailing

•

Louisville Transit Co

—

Knowledge"

14%

Distributor of natural gas

1.00

Lee & Cady Co
Wholesale grocery chain

■.

Gas Co

West Coast baker

7.3

1.00

" "

Langendorf United Bakeries-

Greene Cananea Copper Co._

0.52

Natural gas distributor

■Ley (FredT.) & Co.-

Green Mountain Power Corp.
'. Public utility, electric and gas in

Mystic Valley Gas Co

nuts

Manufactures

0.375

Distributes gas by tank trucks

Vermont.

Horse

5.0

Keystone
Portland
Co. -J

Corp.—

Co., Ltd.

Jockey Club,
Voting Trust Certificates—

4.8

home

Keyes Fibre Co

Lumber products

General Gas

Natural gas

0.75

Kelling Nut Co

4.6

plates,

1.8

Monmouth Park

aircraft

33%

Paper

22%

grade crude oil

mowers

(R. E.) Co

0.40

Natural gas distributor

Moore
and

Pacific Coast

-• -

5.7

Mississippi Valley Gas Co.

Manufacturing Co.-

1.55

Edible

33y2

powders

Natural gas

6.2

public utility

Sheller and packer of pecans, wal¬
nuts and almonds

NEW

2oy4

——

First-Mechanics

1.25
2.65

Mortgage banking and real estate
Kaiser Steel Corp

2.4

1997

1.90

Ordinary

producer

Jersey Mortgage Co._

etc.

1957

Disintegrating Co

Mexican Eagle Oil

6.0

Power lawn

pumps^ and; traffic signals

Book

171/2

Heintz, Inc

Jacobsen

Industries, Inc.—

Fairbanks Co.

"The

8.0

motor carrier

Precision

Variety chain in South

production

Operating

Jack &

Greenwich

1.05

products

paper

Iowa Electric Light
Power Co

Portland cement

Metal

and

Paymts. to
Dec. 31,

Michigan Gas Utilities Co

System

6.8

Dewey Portland Cement Co.

Metals

Interstate Motor Freight

carrier

tlon

Property interests

Printing,
publishing
study schools

Co.,

Dec. 31,

Based

1.8

Corp.,

International Textbook Co

etc.

—_

common

Gamble

0.80

Indiana Limestone Co.

4.9

Dec. 31,
1957

■

ing Co

Coke

Denver Chicago Trucking
Inc.

Funsten

f 0.29

Indiana Gas & Chemical Co.

6.5

Shoe manufacturer

Valves,

5.9

stores

Hugoton Production Co
Natural gas

Craddock-Terry Shoe Corp..

Mfrs.

Metal

5.8

tubes

De Laval Steam Turbine Co.

2.00

2.3

Denver hotel

Eastern

Dim. Paid

Quota-

Vulcanizers

Hudson Pulp & Paper
Class A
Pulp,

Cosmopolitan Realty Co

ci.

Hubinger Co

Kentucky bus service

Motor

Yean Cash

1957

% Yield

Extras for
12 Mos. to

secutive

Dec. 31,

Corn refining

Cooper Tire & Rubber Co.—

Turbines,

Bonwit Teller women's

7.3

sand

Lines, Inc.

and

Paymts. to

Restaurant chain

Continental Motor Coach

Tires

1957

No. Con-

McNeil Machine & Engineer-

Hoving Corp
6

and

Dec. 31,

1957

Approx.

Including

Hot Shoppes, Inc

Products

Co.
Gravel

tlon

Dec. 31,

Based

Sugar production

;

Consolidated

Dec. 31,

1957

12Mos.to

Divs. Paid

Paymts. to

Years Cash

secutive

Years Cash

Cash Dlvs.

% Yield

Quota-

Haytian American Sugar Co.,

Dlvs. Paid

Extras for

Approx.
% Yield

Extras for

No. Con-

Approx.

Including

v"--'

<■"
-

(1755)

BOSTON

•

Chronicle

The Commercial and Financial

Cash Divs.

Thursday, April 17, 1958

;/"4 *'

;

No COO-

■'

•

OVER-THE-COUNTER MARKET

THE
v

Dec. 31,
1957

Years Cash
Divs. Paid

■

Spartan Mills

products

11.7

Pittsburgh Reflector C., CI. B

Sulphite

Plastic
•

See

Portable

0.80

6
5

tools

control

5.3

0.30

6.0

0.64

22*4

2.8

fO.575

4.1

0.25

5.0

fO.49

5.2

0.15

0.75

provides

0,20

4.0

Kobbins & Myers, lne
hoists

cranes,

3.50

9.2

Pipe

Co.__,

3.00

5.0

1.00

17%

5.8

1.3

12
7%

10.39

5.0

6.7

fO.98

16%

5.9

1.20

6.7

0.20

5.3

1.21

17%

6.8

t0.91

16%

5.6

health and group

States

Sugar Corp.—

situation

6*4

6.4

7*4

7.9

United Transit Co.

0.13

26*4

0.5

number of dealer firms from coast to coast

2.00

9.5

interest themselves in

0.60

listed and
(Del.)

Vulcan

19%

1.00

5.1

Wood

utility

1.5

135

2.00

121/4

7.3

2.00

17%

11.3

Corp

chines,

Mills, Inc.—

0.90

Swasey Co

0.50

10%

4.7

earth moving ma¬

textile machinery, etc.

Waverly Oil Works Co

Newsprint

Oils,
to possible longer record,
dividends, splits, etc.

Details not complete as

greases

and soaps

stock dividends, splits, etc.

t Adjusted for

Two With Central States
(Special to The Financial

BANKERS BOND

Stock

Midwest

commission

Coast Exchange to

with

now

are

Central States In¬

Co.,

Walpark Building.

Exchange

LOUISVILLE

Home

Life

Morrow Adds to Staff

Bldg.

(Special to The Financial Chronicle)

2, KENTUCKY

IF IT IS TRADED IN THE

186

BEST.

TIIE

TRADING

in line with

OUR

Mr. Naley

With Inv. Service

vember,

Colo.

DENVER,

—

Gwenlyn M.

Service

Investment

NEW

Co.,

First

The

the
and

has been added to the

staff of Sheffield & Company, 325
State Street.

With White & Co.
(Special to The Financial Chronicle)

Pacific

new

same

those

will

rates

produce an overall in¬
of approximately 13% in

111.—Paul

BLOOMINGTON,

York,

New

will

crease

National Bank Building.

LONDON, Conn.—Walter

W. Wojick

change.

Fisher has been added to the staff

Hector W. Bohnert

stated, and will be the
in rates since No¬
1953, on the Coast Ex¬

change

(Special to The Financial Chronicle)

OUT.

Sheffield Adds
(Special to The Financial Chronicle)

the

$100

will remain unchanged,
Mr. Naley stated.
more,

by Frank E.

Exchange on May

Stock

York

first

DEPARTMENT

Charles C. King

action

This

Inc., Hanna Building, members of
the Midwest Stock Exchange.

LOUISVILLE

TRY

announced

in rates for stocks

transactions amounting to

Nalev, Exchange Board Chairman.

Hearn is now with Morrow &

MARKET, WE WILL GIVE-UP IF
ISN'T

been

May

There will

revenues.

increase

selling under $1 per share and the
basic minimum commission of $6
or

1958, on
the Pacific Coast Stock Exchange
effective

Ohio-James R. recently announced increased
Co., rates to be effective on the New

CLEVELAND,
Bell Teletype LS

An increase in commission rates
to

has

Floor, Kentucky

Increase Commissions

Henrickson and John R. Newman
vestment

Member

Chronicle)

MANSFIELD, Ohio—Chester A.

INCORPORATED

through

taneously

•ther facilities at their

Machine tools,

Operating public utility

communicate with each other instan¬

can

private telegraph wires or
disposal.
Thus many over-the-counter dealer-brokers, in
New York, for instance, will be doing business
throughout the day with other dealer-brokers in
Boston, New Orleans, Chicago, St. Louis, Denver,
Los Angeles, San Francisco, Seattle and other
cities from coast to coast. As an integral part of

6.9

heels, bowling pins, etc.

Warner &

5.9

1.00

Southern Utah Power Co.___

•

Resort hotels

5.6

some

them

12.6

2.50

Virginia Hot Springs, Inc
4.00

that

making a market for un¬
listed stocks and bonds. Most of

railway & bus lines

Street

Co.

Here there are a tremendous

quite different.

—

0.40

royalties

BID

The Over-the-Counter Market
On the Over-the-Counter Market the

accident,

f0.575

1st

Sugar production

Southern Nevada Power Co.

THE

else to buy that stock, he himself would
expected to enter a reasonable bid on his own.
The continuity of any market thus created is
largely dependent upon his financial resources
and his willingness to thus risk his own money.

anyone

Life Insurance

United

paperi

rag

exchange, it devolves upon the stock

specialist for each particular stock to create a
market, in the absence of sufficient public orders
to buy or sell, by, in effect though not in strict
parlance, putting in an order for his own account.
In other words, if you wanted to sell 100 shares
of XYZ stock and the specialist had no order from

pipeline

gas

securities are

where less active

cases

on an

Pipe

Gas

natural

Class B

t Adjusted for stock

20%

—

South Texas Development

1.40

Corp.

Co.
Life,

—

Southland Paper

States

United

Electric

5.7

traded

system

Sorg Paper Co

Oil

IO1/2

In those

Corp.

Interstate

& Engineering

and

0.60

security cannot be main¬
sufficient activity

in it.

insurance

Line

Co.

kraft

9.1

tained, however, unless there is

pipeline

eas

Transcontinental

7.3

4*4

0.31
0.15

Special machinery

Sulphite,

Industries, Inc

Title

Sommers Drug Stores
Retail drug store chain

0.91

(N. Y.)

and

L.) Co

Tool

3.9

"Haydite" clay & shale aggregate
Title Guarantee and Trust Co.

mixing equipment

Concrete

Snyder

0.90

Texas

financing

Consumer

151/2

invsetment co.
Gas Lines,

mutual

Pipeline Co.

insurance

Signature Loan Co., Inc., CI. A
Smith (T.

marketing

0.60

Texas, Illinois Natural Gas

4.3

Co. (NYC)

peanut products
products

salad

tion

Natural gas distributor

Shedd-Bartush Foods, Inc
Margarine,

3.0

Fund,

Eastern Transmission-

Natural

Fire & Marine In¬

surance

—

Texas Gas Transmission

8.4

0.40

Y.,;bus lines

Magazines

Diversified

0.60

lines

Texas

Seaboard

offerings of potential purchasers and
sellers for all securities listed on it. Genuine auc¬

Inc.

and pumps

Rumford Printing

and

Operates natural gas pipelines

Rochester Transit Corp.-.™
Rochester, N.

bids

Tennessee Natural

fans,

motors,

4.4

Open-end

Radio & TV tuning devices

Manufacturing

23*4

equipment

Inc.

Diversified insurance

focal point for the concentration of

1.03

gases

Television-Electronics

10.0

for stock dividends, splits, etc.

California land holdings

1.9

Condenser Co

9.7

exchange market is often referred to as
auction market because a stock exchange

Service, Inc.—

Materials-handling

Cold storage facilities

Radio

15%

Petroleum

Co.

Quaker City Insurance Co.__

1.50

The

for

Tejon Ranch Co

10.5

Over-the-Counfer Trading

Superior Separator Co

Holding company

Quaker City Cold Storage

61/2

Difference Between Listed and

;

Suburban Gas

Operating public utility

Portland Transit Co

f0.68

papers

seats

spring

tisols

Portable electric tools

Portland Gas & Coke Co.:

5.6

10.9

cars
and
buses,
motor
switches and vinyl plas-

trucks,

7.6

5*4

0.40

Porter-Cable Machine Co.

finished steels

Cold

Manufactures

Company's advertisement on page ">0.

0.30

Corp

Wyckoff Steel Co
t Adjusted

Stubnitz Greene Corp

Portable Electric Tools, Inc..

6.00

coated

bonds &

distributor

5.1

17%

0.90

cable

and

wire

covered

0.15

Pharmaceutical manufacturer and

WIRE & CABLE

15,

(Rudolph) Co

Wurlitzer

3.0

Stuart Co.

COR P.

4.4

Restaurant chain

1.7

0.05

Lighting equipment

PLASTIC

Utilities

Western

Manufactur¬

Steak 'n Shake, Inc.—

■

Oct.

Musical instruments

—

Standard Paper

5.2

19*4

1.00

8.3

1.50

—

Tobacco Co.

r',

Co.

Cement

*f'.

Holding company

ing Co.

Natural gas

Well

Oil

Halliburton

Tobacco merchandising

transfer

Petersburg Hopewell Gas Co.

1957

...

wells

Acquired

Commercial

Standard

Dec. 31,
1957

2.0

1597.

1.00

9.4

0.45

Services, Inc

oil

Services

Cloths and sheeting!

Paymts. to

tion

5
1.40

Perfex Corp.
Manufacturer of heat

Quota-

secutive 12 Mos. to

Co.

Southwestern Engineering
Diversified operation^

% Yield
Based on

Including
Extras for

No. Con-

; «

Welex Jet

Dec. 31,

Approx.

Casn Dm.

Based on

1957

10%

Toiletries

Paymts. to

tion

Dec. 31.

31,

1957

Divs. Paid

■'

VOLUMINOUS

-VAST, VITAL, AHD

Dec.

Years Cash

■

Quota-

12 Mos. to

secutlve

///'■/

% Yield

Extras for

1.00

Weco Products Co

Approx.

Including

Continued from page

-J

(1756)

Jensen is
pany,

now

with White & Com¬

216 West Washington Street.

Andrews Branch Mgr.
RALEIGH,
Co.

120

Incorporated

C.—Reynolds &
that
effective

4lHCIHH«TI

Graham H. An¬
drews, Jr. was appointed Mana¬
ger of the Raleigh, N. C. office,

March

Rambo, Close & Kerner

announces

20,

South

1958

BELL

Phila. Telephone

PEnnypacker 5-2800

PHILADELPHIA 2, PA.

New

York

Telephone

Teletype
PH 63

COLUMBIA,
is

Fonck

from

business
Senate

Corporate and Municipal Securities

name

Street

Members

offices
under

the

1416
firm

EDMUND J. DAVIS
Charge of

Corporate Department

WALTER C. NELSON
Manager of

Municipal Bond Department

Midwest

Exchange

Phone—MAin
Direct

V_.

1-0560

Private

Wire

Exchange

STREET

WALNUT

CINCINNATI

Sparks & Co.

Stock

Exchange
Exch. (Assoc.)

Chicago Mercantile

322-326

at the age of 69.
Mr.
uo..nston, a member of the Ameri¬
can
Stock
Exchange, was with
J. W.

Stock

Commodity Exchange, Inc.
Chicago Board of Trade

Walter L. Johnston passed away

April

Wheeling, W. Va.
York

Cincinnati Stock

Walter L. Johnston
Vice President in

New

American Stock

securities

of Charles M. Fonck Co.

Charleston, W. Va.

Hillsboro

Marion

S. C.—Charles M.

engaging in

Securities

Athens

Hamilton

C. M. Fonck Co. Opens

REctor 2-2820

COMPANY

and other Cincinnati
Cincinnati

Salisbury Street.

Dayton

1518 LOCUST ST.,

SUBURBAH^

AHD

TELEPHONE

OHIO

Teletype—CI 585, CI 232
to

Hayden, Stone &

Co.

•
.

Volume 187

Number

5734

The Commercial and Financial
Chronicle

(1757).

their

operations dealer-brokers stand ready to
buy and sell substantial quantities of the securi¬
ties they are
"quoting" and maintain inventories
,

in ,them.

solely

Some firms, of course, choose to act
brokers and not dealers.

Because of competition, the spread between the
bid and the asked
figures on more active stocks
is

quite

narrow.

In less active stocks the over-the-„

counter dealer must find contra-orders if he does

not

wish

securities

assume

inventory positions in the

involved.

is his business to know
which other dealers in all
parts of the country

might have a buying interest in a given security.
One, five, ten, fifty or more over-the-counter
dealers in different parts of the
country may
interest themselves in
"making a market" for a
given unlisted security. Prospects known to the
first dealer, or known to those other dealers hecontacts

often

(either

include

locally

who

are

Many listed securities, too,
counter when the blocks

quick orderly sale
intricacies

may

believed

have a buying or selling interest in the instant
security, or investors who might be induced to
buy.

the

"counter"

dealer to find

Over-the-Counter

Market

the

thus

has

The

physical

limitations.
As

a
practical matter, though, individuals in
city of 100,000 or more can frequently pick
up a phone and call a dealer-broker and get an

any

execution

order

for

unlisted

security
momentarily—often while the call is progressing.
Some "Counter" dealers sell
directly to inves¬
tors themselves. In other cases
they may have a
dealer following throughout the
country consist¬
ing of retail firms that are always looking for
securities that present good values to sell to their
investor clientele.

Numerous
counter

exchange firms also deal in over-thesecurities and any that do not must
buy

a
distinct advantage to the in¬
exchange, securities can only be

2:30.

However, in most instances unlisted
be sold any

can

in the

longer than that. Dealer-brokers

in the Over-the-

Counter Market there

job from 7:00 in

the

Stock

Exchange Commission Hates

mission

confirmation slip.

your

hand the over-the-counter dealer
not

buys from and sells
"net" basis

firmation.
acts

just

The

over-the-counter

In other fields when
you

room

furniture,

MICHIGAN

When

security is taken from the Over-the-

on a stock
exchange,
ordinarily lose interest
in 'it, for they cannot make a
profit trading in it,
at rates comparable to the commission
charges
of exchange firms.
Though the "counter" dealers*
nrofit rates may be somewhat
higher, they may^

over-the-counter dealers

afford

investors "better" prices than the. less
expensive service of exchanges.
'
V,
"
.

Values

dealer

usually

For

The
mere
fact
that
under
the
"exchange
auction-specialist system" the spread between bid
and ask

prices is close

tive in

often

than not

exchange commission rates

on.

have excellent

lower

are

over-the-counter

dealers

important

than

the

profit rates

obliged to operate

are

buy*
with

pointed out before, the assumption of invei>
an

integral part of the over-the-

counter dealers' task.

They must take the initia¬

assuming such positions.

must be

aware

ranted hazard

Although they

of and responsive to the foible*

of their customers,

for this is the fact that

reason

indication

the intrinsic value of the stocks he wishes to sell.

"counter" dealer.
It is true that

Intelligent investors are quick to recognize ther
fact that prices and values are two
totally dif¬
ferent things.
tory positions is

or narrow

that the investor gets good value when he
or that the seller obtains a
price in keeping

buy

fountain pen

-;v/

thing, the basic fact is that the price,
of over-the-counter stocks is not swollen
by the
premium the public is ordinarily willing to pay
for exchange-listed securities.
Then, too, active
listed stocks and the exchange stock ticker
sys¬
tem provide a
ready vehicle for speculation and
tend to center
buying and selling decisions on
short-term price swings in lieu of "real economic
values." Many
apparently buy stocks according to
hoped-for price movement and not for true in¬
vestment purposes, their interest
being merely
"where is the price going and when."
one

a set of dining
what have you,
the merchant sells it to
you at a flat price and'
does not add any commission thereto. So with the

they cannot without

unwar¬

buy securities for inventory
Continued

pur-

page

Chicago Street Club
Elects Officers
CHICAGO, 111.—At the annual
meeting
of
The
Street
Club, the following officers were

dinner

elected for the 1958-59 year:
Wm.

Walker

Mc-

Laury, Duff, Anderson & Clark.

SERVICE

$320,000,000.00

to you "as

it is termed in the

ness.

Vice-President:

COMMONWEALTH

Resources

often than

merchant does in other lines of busi¬

as a

The

DETROIT,

On the other

principal" or
parlance
of the securities business. This means his
profit
or loss is included in the
price he quotes you and
there is no commission
charge shown on his con¬
on

President:

Reserve System

vs.

an
exchange-broker executes an order
in an exchange-listed stock, he tells you
price as well as the amount of his com¬

for you
the cost

facilities

oftk

the

Counter Dealer Charges

correspondent bank

Member Federal

are on

morning until 5:00 in the afternoon.

Bank Offices

BANK

securi¬

time between 9:00 and 5:00
on the West Coast it's even

Midwest, and

dealer,^be-,

Counter Market and listed

the West Coast between the hours of 7:00 and

AT YOUR

of the over-the-counter

frequently necessitating his taking the risk
of an inventory position; include the extensive
searching for matching bids and .offers from

3:30; in the Midwest between 9:00 and 2:30, and

MICHIGAN

have

above, since his dealer-

sold in New York between the hours of 10:00 and

DETROIT
we

services

potential buyers and sellers.

Market is often
vestor.

the

sides

himself with the

purchase and sale.

When

opposite.

The longer trading day in the Over-the-Counter

major characteristic, too, of the "counter"
market is negotiation.
If a gap in price exists
after a prospect is found, the transaction does not
die. Instead negotiation ensues. The mere exist¬
ence of a
buy or sell order is the incentive for
.

large to make
exchange possible.

concern

enumerated

sold over-the-

are

too

broker will obtain current market
quotations on
any over-the-counter stock or bond, and handle
all details of

The process of
constantly seeking out buyers
and
sellers is characteristic of the Over-the-

Counter Market.

are

on an

An investor need not

ties

in other cities),

individuals

from

or sell to an over-the-counter
dealer to exe-;
cute customers' orders for unlisted
securities.

Stacy

Trust

Hill,

Co.

Secretary: Harold J. Timmers,
Jr., North American Securities Co.
Treasurer: George H. Kendrick,
Jr., Blunt, Ellis & Simmons.

Member Federal

Deposit Insurance
Corporation

Northern

The

Street

Club

associa¬

tion,

representing
the younger
executives in Chicago's financial
district.
It was organized right
after the War in 1946 to help in
the
development of the young
in

men

making

Chicago,
a

career

interested
in the field

in
of

finance.

Arthur W. Hageman

Wisconsin Market Place

Arthur

Hegeman

for

OVER-THE-COUNTER ISSUES

DISTRIBUTORS

Hege-

& Company,

Stamford, Conn.,
passed away at the age of 72 fol¬
lowing a brief illness. Mr. Hege¬
man was a 32nd degree Mason and

man

UNDERWRITERS

Shriner.

DEALERS

MUNICIPAL

Midwest Exch. Member
CHICAGO, 111.—The Executive
Committee of the

Midwest Stock

AND

CORPORATE
SECURITIES

Exchange has elected to Midwest
Stock

Exchange

Kenneth Baum,

y»iw]

INCORPORATED

INVESTMENT

membership G.
George K. Baum

Company, Kansas City, Mo.

Bennett-Manning Adds

SECURITIES

(Special to The Financial Chronicle)

225

EAST

MASON

MEMBERS

ST.,

MILWAUKEE

NEW YORK STOCK

EXCHANGE

MIDWEST STOCK EXCHANGE

LOS

ANGELES, Calif.—Charles
H. Fletcher, William R. Hall and
Marvin J.
Ruddy have become
connected

Company,
vard.

with

8417

Bennett-Manning
Beverly

Boule¬

SCOn, HORNER & CO.
VIRGINIA
WEST VIRGINIA
NORTH CAROLINA

TENNESSEE

ESTABLISHED 1932
MAIN OFFICES—LYNCHBURG, VA.

Telephone 8-2821
Corp. Teletype LY 62, 63
Mun. Teletype

LY 82

The Commercial and

Continued jrom page

"in the

market" for

So it is with the

he may at

consistently

If he

you

doing business with has a good

to investment

cognizant of the elements, listed above,
determinants of the real value of the
securities in which he is taking inventory posi¬
tions.

cannot consistently be out

His prices

It is

non-numerical elements which go

economic life.

ing of the real value of a security in which he is
position, he must, as a general rule,
have knowledge superior to that of the lay trader.
an

and makes it

important contribution of overtake important inventory /

positions results from the fact that their market
pricing must be influenced definitely by intrinsic
corporate value factors. They must stress value
consciousness over quotation consciousness.

ever more

major insurance companies of
buying or selling their own

through over

purchases

the

the country
institution's

account do so almost

entirely-

counter dealers. Investment

continually
buying and selling government, municipal and
corporation bonds and stocks through "counter"
officers, of these institutions, too, are

regard to basic economic values,
And although he may remain

asset to

of it is

remuneration. Savings

If it

were

Counter

impossible to quickly retrieve the capital

they put at the disposal of governments,
reasons

engaged in the investment business thrive.

jirst page

For

our

part, we do not

convincing those chargesthat industries such as steel
find

and the motor manufacturers
are

able

and do fix

their*

Washington ently are not concerned with prices arbitrarily higher than
the possibility that by placing good business would indicate J ■
can head off or cure a depres¬
additional money in the hands Of coursp, these concerns ask
sion.
of
tax
payers,
goods will what the market will give,
New Deal Experience
move despite higher prices— and that is good business in/
Our experience in the New
and, of course, invite prices to every sense of the word. That
Deal years from the emer¬
or
any
of the other,
go still higher. No one, so far they
gence of Franklin Roosevelt
as
we are
aware,
has sug¬ branches could consistently or
as a
full-fledged quack eco¬
gested any step whatever to would?ask more we doubt."
nomic doctor to the outbreak
put an end to or even . limit The market seems to us too'
of World War II seems to us
the alleged monopoly: Neither * competitive for that,"
that

whatever

NEW

DIVERSIFIED

ECONOMY

munici¬

corporations.: This is one of the many
why it is socially important that those

We See It

PASTURE

served.

exchanges and Over-the-;

not for the

ness.

Continued jrom

of both big and

Markets, investors of all types would find

it almost

palities

and at<

thereby become;

society and not a problem. The beauty,;

that the capital needs

small business alike can be thus

the 14,000 banks and

when

own

jobs for ever/

workers at ever less human effort

the

possible for business to obtain the/

wherewithal with which to provide

the-counter dealers who

Officers and directors of

and

Through the medium of stocks

bonds, idle capital of individuals, banks, institu-/
tions and the like flows into trade and industry/

to assume a

Therefore,

reputation.

exaggeration to say that both exchanges,;
Over-the-Counter Market are vital to our

and the

the
into the mak¬

values. Particularly in regard to

line with real

times make money, but sooner or later

he will book losses.

over-the-counter dealer.

are

stock for their

individual

get good or indifferent treatment
large and small stores in
other lines of business, so it is with over-the-counter dealers. It is not necessary for a firm to;
have a million' dollars to be thoroughly trust¬
as

which

certain extent.
an

banks and com¬

worthy and to have good judgment with respect
values. Just be sure the over-thecounter firm or individual dealer you contemplate

Speculation as to how the present and possible
future products of a corporation will fare on the
markets may be handled numerically only to a
When

1958

Thursday. April 17,

must be

somewhat
elusive, but they are nonetheless real. They congist of mathematical and non-mathematical ele¬
ments.
Some insights as to the real value of a
stock may be gained by checking such things as
its earnings and dividend records, book value and
liquidating value. But the first three of these are
tied to the past, and subject to the fact that
accounting is an inexact science. And liquidating
value may be largely of academic significance,
if the corporation is going to continue in exist¬
ence.
The anticipated future average annual net
income of a corporation may be capitalized nu¬
merically, but not without reference to many
non-numerical concepts. These include the acu¬
men, initiative, imagination and forcefulness of
the officers and directors of the corporation.
Basic economic values may appear

stocks without

and values from both

habitually assumes inventory positions at prices
out of line with basic economic values, the eco¬
nomic forces will in due time exhaust his capital
and drive him from the scene. For survival he

basic

cognizance

take

panies.

Inventory Positions

-VAST, VITAL, AND VOLUMINOUS

dealers for the account of their

extended period, he can¬

Just

THE OVER-THE-COUNTER MARKET
poses
unless they
economic values.

his capital is exhausted.

not do so after

Financial Chronicle

CENTRAL-EA

conclusive
proof are the economic
managers
Monopoly vs. Competition
government can not ef¬
willing
to
permit natural
In one sense and in some
fectively control or even fa¬ forces to
'operate to free us
vorably influence the state of from the
respects it would appear that
tyranny of the labor:
business—at least by the type
too much competition among
monopoly.
h
of programs launched during
There is, of course, an eleA employers may be more re¬
those years—and the current
ment of truth in the charge sponsible for our present sit¬
proposals of the economic that lack of competition — at uation than too little. It is
managers
in Congress and least
among the unions—is competition required by law
which prevents the motor in¬
among the New Deal follow¬
responsible for the current
ers
everywhere are of the recession. Labor in this coun¬ dustry; the steel industry and
selfsame stripe. But even if
the others from presenting a
try, at least so far as the;
we did not have the benefit
unified and solid front to the
major industries are con¬
of this costly but convincing
monolithic labor organiza¬
cerned, is definitely a monop¬
tions. It has been the boast of
experience, the very nature
oly, and has been for a long
of the arguments of the ad¬
while past. This monopoly was - t h e automobile workers'1'
vocates of current nostrums
union for years that they cam
sought, encouraged^ and pro¬
should put
any
thoughtful moted
take one at a time and force,
by the New'VD e a 1
man on notice that these pur¬
their demands down the
throughout its years in office.
throats
of
veyors of panaceas do not un¬ In more recent
employers who ~
years some
derstand what they are talk¬
feeble effort to place ^slight dare not do very much in op¬
ing about.
• .
•
limitations upon it has been position because they have no
The ardent pleaders for tax
made, but the monopoly still way of knowing what their
reduction at this time have,
flourishes, and vaunts its competitors will do when con¬
for example, been at consider¬
fronted with the demands of
power daily for the edifica¬
able pains of late to defend
tion of us all. In fact, it has the unions. Of course, we do
their reasoning
against the the
not mean to suggest that any
temerity to argue by im¬
of these industries should be
objection that such a step now
plication at least that its. ex¬
would bring serious danger of
actions could and would help permitted to become monopo¬

afford

that
A

diversified

new

and the rich farm I

has developed into

predominantly

agriculture

now

AGRICULTURE

Producing quality beef and dairy

cat-^

products.%

tie, fruit, vegetables, poultry
LUMBER
Fine furniture, saw

mills, boxes, basket

mills, flooring mills, pressed wood.
MANUFACTURING
From cotton: textile

goods, upholstered

furniture, garments. Toy factories.
OIL
A
_

AND

GAS

big part of

new economy

...

explo-

ration, drilling, processing, production.
MEDICAL CENTERS

Modern, complete medical, health and
resort centers grace Central-EastTexas.

PROCESSING

Packing and canning, poultry, milk,
meat and vegetable processing centers.
WAREHOUSING

what

and
siving further

»'

DISTRIBUTION

«-Planned facilities offer better distribuHon, better warehousing. Good roads.

operation
served

are

#n 'I? Con-pony'.
the territory

and

available

request.

among

;,_k„

•?

1'f

ZtS

ske

me scant

"-ol-e

p'ti

sank

COMPANY

-lent

bl do

da a as

r f / a s

inflation.

the recession. Certainly, listic, but we do mean to sug¬
enlarging the capacity of the gest that their adversaries
rising prices—is, so they say, a rank and file to
across
the wage bargaining
pay the price
^I result not of excess demand exacted by it would in no table should be required to
for goods but rather a lack of
come to these conferences on
I
way
tend to improve the
effective
competition both situation.
the same footing as their em¬
—

end

meaning

business concerns and
One effect of

competition is not pres¬ ployers.
Of course, this whole anti¬
industry, and where it
this monopolistic situation has
is
not present,
it must, of recession argument runs too
been, they add, to raise prices course, be induced, particu¬ much to talk of inflation, and
inflation is too narrowly deto a point where the goods
larly if lack of it seems to
wage

SOUTHWESTERN ELECTRIC SERVICE

known

Current inflation

will

earners.

not

move.

They

appar¬

ent in

survive

end to boom busi¬

fined

rising prices. The sort.

Volume 187

Number

5734

The Commercial and Financial
Chronicle

(1759)

of programs

by
\

being advocated
great many of the poli-

ticians
and

and

whether

Public

do-gooders could

would

infinite

not

immediate

they

rise

cause any

By OWEN ELY

Colorado Central Power
Colorado

w a r

duce

conditions,
later may

not rise in the

the

not

move

This Week

the south, west

Prices did

The

Disregarding

and north of

thirteen in
number, reported lower earnings
in one case, unchanged figures in
one; and higher earnings in eleven

the

due to

company's

strategic

location

seems

the resulting con-

instances.

ported

—

War IL; But who would deny ', ; County, ranks
that there was inflation dur-> v.-in the United

ing those periods?*

••••f
L-

States.

pumping has been

District, in Weld
products

of the wealthiest producers of farm

as one

■

Edison 3%% Bonds

as-,

•

sociates offered publicly yesterday

Vserved. 'The' combined population exceeds
100,000. In 1956 resi.dential arid commercial sales accounted for
about 61% of revenues
and industrial 28%.
Residential-growth has been favored

continuing development

issue of $50,000,000
Commonwealth Edison Co.
an

service

3%^

1,•;1988,

100.90%,
turity.
the

The

issue

April

a
price of
3.70% to "ma¬

yield.

group " was

bid

sale

area,;

new

residential

■:

earnings ^dipped to $1.76 due to
third.
However, in 1957
income 22%, and net income

the bonds will be added to work¬

ing capital for ultimate application to the company's, continuous

construction

program Which

presently expected to';- cost $ 179,'-f
000,000 ill 1958; • $135,000,000 in
1959;- $145,000,000
in
I960;, and
>

$150,000,000 in 1961.
The

;

prior

bonds

1, 1963 through,
lower interest cost,

otherwise

are

redeemable

paid,
or,

the option of the company at regu¬
lar
redemption
prices
ranging
from 104.65%, for those redeemed

prior

March

those

1959,: to

March

redeemed

Last year
onegross

17%.

the

public in

1946.

Some

states,

Dividends increased from

month

cents

$1 in

Total

Gross

Kilowatt

Customers

Avjfe. Kwh

.Assets

Revenues

Hour Sales

Served

Annual Use

((HMI)

Residential

Commonwealth Edison is en¬
gaged in the production, purchase,

J957___iv.

..$18.0

$4.9

189

^transmission, distribution.and sale

1956J'_*__'i.

15.4

4.1

157

12.5:

3.6

133

2,345

11.2

3.3

122

2,177

Year

electricity in an area, of ap¬
proximately 11,000 square:" miles
and containing an estimated popu¬
lation of 6,600,000. It includes the
city of Chicago which has an esti¬

;

with

Paine, Webber Adds^

now

Jackson .&
merce

Union

with

has

4.9

1.4

1,514

3.5

1.2

1,369,
1,240
1,075

2.9

1.0'

2.3

0.9

2.1

0.8

become

L. -E.

Tennessee

of Remmel-Johannes & Co.

Gas

for

let¬

these

this

group
the 1958

totaled for

and

those

iri

Chicago on the same footing sO
as requirements are concerned,
with the banks in the other large
far

cities.

•
.

(\)

•

The banks have not dohe

badly
thus far, to maintain earnings in
of

face

the

worsening

the

eco-

nomic conditions; and it is prob¬
able that, all angles considered,

media.

But

ahead

still

was

their
same

From this it seems fair to
advise their purchase as defensive

percentagewise.

while

likelihood

the

holdings of United States govern¬
ment obligations and other bonds,
and security profits.
In probably
the latter are treated

cases

capital items and are not included
in operating earnings, up to this
point many banks lightened up on
their investment holdings to be
able to put the funds out in the
loan

Vance, Sanders Office
.

ST. LOUIS,
been

has

Mo.—Richard Piatt

named

loans

without

renewals

and the

governments

will

that the

988

effects of the

Iowa,

Kansas,

Oklahoma,
and

Southern

Illinois.
also will

He
con-*

tinue to direct

some

decline

stment

Missouri^

the company's
Richard

unique semi¬
nar program;

Piatt

mid-year

around

dealers

cases,

is this department's estimate

the

firm, Mr. Piatt
will work with

increase for the

net

ner

going into invest¬
ments. In the first quarter, five, of
this group of New York banks
continued
to
lose
governments,
while eight reported increases.
a

Co,

general part¬

money

was

office at 407
Vance, Sand¬

ers

running off
some

manager

established

newly

North 8th Street, by

but

with

practice,

Piatt to Head New

now we must
reversal of sorts of this

market;

look for

profits will not suffer in the
measure as industrial earn^

ings.

shrinkage in loan volume must be
faced by the banks, they have sev¬
eral off-sets,
namely, increasing

that

•

Mr. Piatt for¬

plus those of the merly was associated with Browil
lower rates of interest, will result Brothers Harriman & Co., as an

loan

volume,

reversal of the trend in earn¬

It must be remembered that
maturities of loans in

ings.

assistant manager in New

York

Vance, Sanders is the sponsor of

portfolios being what they a group of mutual funds with total
downward change in in¬ assets in excess of $1.4 billion.
terest rate3 is not felt by the bank
The funds in the company's group

due

1978,

price of

100%

and

accrued

at
in¬

the

proceeds from the sale

debentures

will

added

general funds.
Gas

which transports natural
from producing areas in Texas

system
gas

and

Louisiana

Northeastern

States.

lower interest cost for

years,

deemable

but are otherwise

re¬

the

option of the
company at prices ranging from
105% to 100%. The sinking fund
redemption price is 100.
In

1957

mission

Tennessee

had

Gas

operating rev¬
enues
of $313,184,000
and.gross
income of $61,147,000 before in¬
terest

income

other

and

area

dividends
these

was

figures

$38,168,000.

points

United

The system's

the

designed de¬
livery capacity on Dec. 31, 1957,
was
1,980,000 Mcf of gas daily,

where

the

months

some

change.
periods,

loans

term

maturities

after

the

Loans run for varying
and in some cases (as

years in

are

may

involved)

five

the future; but the

old rates continue

deduc¬

In 1956

$266,427,000;
$52,064,000 and $34,079,000.
were:

OVERSEAS

NATIONAL
GRINDLAYS

BANK

Dempsey-Tegeler

(Special to The Financial Chronicle)

LOUIS, Mo.

—

AND

LIMITED

the

New

William J.

York

Midwest Stock Exchanges.

Trust,

Investors

setts

Massachu¬

Growth

Stock

Fund, Canada Genera! Fund, Cen^
tury Shares Trust and The

Bond

and

13 NEW YORK
CITY BANKS

Head Office:

First Quarter

16 BISHOPSGATE,

LONDON, E.CJ

Earnings Comparison

London Branches:

SQUARE, S.W.I

Bankers to the Government in: aden, Kenya,
uganda, zanzibar a somaliland protectorate

Lownsdale is with Dempsey-Tege¬
ler
&
Co., 1000 Locust Street,

members

Fund, Massachu¬

Boston

Investors

Amalgamating National Bank of India Ltd,
and Grindlays Bank Ltd.

13 ST; JAMES'S

ST.

setts

outstanding Fund of Boston.

54 PARLIAMENT STREET, S.W.I

With

include

Trans¬

total

Transmission

operates a multiple-line pipe line
-

five

non-refund¬

tions. Net income before preferred

The net
of

able

are

are, any

until

storage reservoirs.

The debentures

Transmission

debentures

Tennessee

Jenkins & Co. Inc.,
Shady
Oak
Street.
Mr.
Johannes was formerly President
6075

banks,

among

banks

York

by
about $150,000,000. Four of these
banks reported contractions in
loans (all small), nine showed in¬
creases over the 1957 quarter, sev¬
eral
of them
being fair size

gas

associated

New

$532,137,000 in the twelve months.

expandable to 2,385,000 Mcf daily
by withdrawals from underground

terest.

Th^: Financial Chronicle) ■+■
*
DAYTON, Ohio — George P.

see

average

Com¬

Johannes With Jenkins

Johannes

Co.

(Special to

1.6

000

with Paine, Webber,

Curtis,
Building.

5.5

1,845
1,724
1,639

CLEVELAND, Ohio—Ralph M.

Klopp is

underwriting group man¬
aged jointly by Stone & Webster
Securities Corp., White, Weld &
Co., and Halsey, Stuart & Co. Inc.
offered for public sale yesterday
(April 16) a new issue of $30,000,-r

Prescott

(Special to The Financial Chronicle)

Ah "

Co. '

1.9

5% Debentures at Par

Building/ members of the Mid¬
Exchange. Mr. O'Con¬

6.0

2,139
1,919

Gas Transmission

west Stock

formerly

Offer of Tennessee

has
become
affiliated
Morrow & Co. Inc., Hanna

was

if the

develop

Branches In:

Laird, Bissell & Meeds
NEW YORK 5, N. *.

Telephone: BArclay 7-3500
Bell

tanganyika, zanzibar. uganda,

northern and southern rhodesia.

Exchange
Stock Exchange

Members New York Stock

Members American
120 BROADWAY,

india, pakistan, ceylon, burma, kenya.
aden, somaliland protectorate,

downtowri

being made to put the

bank

CLEVELAND, Ohio-Moseph M.

nor

2.2

19416_'_—.

O'Connor
with

109

2.5

7.3

1944-y'---.

yet

group

2.8

8.5

;1945i_i

sure

There

1947—

(Special to.THE Financial Chronicle)

2,490

•1948-

Joins Morrow & Co.

9.0

$49,260,055 for

•
.

2,677

1949J1

31
'

1S50_____.

operating revenues of
the company for 1957 amounted to
$380,090,910 and net income to
$53,342,448, compared with electric
operating revenues of $360,106,248
.

(Million)

1952__-y_.

Electric

(Million)

195L____:

net income

•

■1953_*_li;_.

population of 3,750,000. As
of Dec. 33, 1957, the company had
approximately 1,939,900 customers.

1956.

1955.

1954_„i_.

mated

and

(Million)

cash

requirements. The banks
now permitted to utilize'
as a part of the reserve
requirement. A provision of a bill
now
in committee
in Congress;
would make vault cash eligible fof
reserves.
There is also the effort

pronounced

While that condition is al¬

banks.

all

Colorado Central Power is
currently selling around 29 to yield
The price-earnings ratio is 15.6
compared with the general
average'around 15.

1987.

condition

amounts

1952, but since

1956.

after,

quarter

4.6%l

100%

sterile

not

are

de¬
clines in loan volume among the

volume

a^montbly basis, the present rate being 11 cents
annum.

vault cash

"stand-off."

hearing

first

1951,. to $1.20 during 1953 and to $1.32 early in 1957.

for

$1.32: per

been

loan

distributed

was

were

;

reserve

The point of this is that we have

have increased

Dividends have been paid since 1935 and since 1954 have
been

Trust's

Share earnings
share earnings

March

refunding'at
but

The -common stock

contribution to
along Will

as we go

reserves

reported higher
while United States

leading

;i, 80% of the stock is held in Colorado and the remainder in
redeemable
District of Columbia, Alaska, Venezuela and Belgium.
■

not

are

can

rates

Board frees funds which the banks

banks

nearly six-fold

Capitalization consists of $7.1 million debt,
slightly less than
$V million preferred stock, and nearly $6 million common stock
equity/ The equity ratio approximates 43%. Common stock was
sold last
;yqar,-and with the present high equity ratio it appears
unlikely that additional shares will have to be sold for some time.

important
earnings

have

down in the economy worsens, we

equity dilution of nearly
revenues
increased about 18%,

coupon."Zr"

ttet proceeds from the sale

the

earnings;

have

the; latter year they increased steadily to $1.84 in

100.18999%-:

Nor

interest

change
in reserve requirements.
This
move
by the Federal Reserve

offer-'

most

the

•

for the indicated

interval via

subdivisions

postwar period revenues have increased
—frOm' $882,000 in 1945 to
$4,925,000 in 1957. Assets
even faster1,-from
$2.3 million to nearly $18 million.
and -dividends have gained more
slowly. In 1946
were. $1'.43; and remained around that level until

awarded.

competitive
a

re¬

all

down.

be the effect of the recent

quarter,

by the

In the

first mortgage bonds, series T, due"
March

of
,

districts, while not interconnected, are operated as a
single 4System.- Along with electricityv- which the
company buys
from* Public Service of
Colorado, a small amount of water is also

™

that

The twelve months data yielded
about the same net result. Twelve

The" four

Offers Commonwealth
The First Boston Corp. and

the

they mature.
that

turned

bank

ings of new shares by rights.

;

said

have

VM,

(April 16).

bank

one

in the

creases

Cheap electric power for irrigation waterimportant factor in the development of this

rvsection, jiVegetable canneries, sugar
mills, milk processing plants,
and alfalfa. mills, located in the. area, process the local farm
products.un .% .v:1
,/ ;.v,
y,

against deposit liability.
year's, had unusually large prof¬ For example, a 19% reserve re¬
its in the earlier period, and in
quirement means that the bank
essence,
they probably may be. subject to it is required to lodge
said to be getting back to their
with the Federal that proportion
norm. Using per-share data would
of its demand deposits with the
distort in several cases, First Na¬
Federal; and it must be in cash.
tional City and Chemical Corn There are moves afoot now to
give
Exchange, as they had capital in¬ greater latitude to the banks oti

during the pre-war New Deal .♦ industrial, suburb of Denver, extending south into irrigated farm
years.1 They > remained : r e.-j »country,i The Golden District combines a suburban residential dis¬
markably stable—at least the trict, with farm, and industrial business; Golden is the seat of the
famous,Colorado School of Mines. Evergreen District is a mountain
indexes did
during World .area with..recreational facilities. Fort
Lupton

The

decline

United States Trust, from $1.46 in
the 1957 quarter to $1.39 in this

continued

assure

figures

loans until

New York City banks,

surrounding

area
seems

per-share

and using total dollar amounts, in
1958 first quarter the leading

growth, subject to temporary irregularity. Of the four divisions
served by the company, Arapahoe is a fast-growing residential and

alarmingly

Bank Stocks

—

the

centratjon of jobbing, manufacturing and industrial distribution in
or near
Denver, Growth is also due to the fact that many people
are Establishing, their homes in an area
where climate, scenery and
growing .business activity offer special opportunities.

under¬

of
and certainly
up

districts located

.^This part of Colorado, especially the
Denver.; ig experiencing unusual growth. This
increasing industrial expansion of the west and

well in¬

divisions

Denver.

which

latter part

'Twenties,

did

;

ral

higher prices, but which

in any event tend
mine the economy.

Company

Central

Power, with annual revenues of about $5
million, is one of the rapid-growth western utilities favored by
suburban developments. The
territory served is divided into natu¬

sooner

By ARTHUR B. WALLACE

prices, or
any rise in prices at any time.
Some
day we shall begin
thinking of inflation in terms,
not of prices
alone, but of un¬
to

Bank and Insurance Stocks

Utility Securities

harm

(L.

Teletype—NY 1-1248-40

Gibbs,

Manager Trading Dept.)

Specialist* in

Banb Stock*

The Commercial and Financial Chronicle

(1760)

Continued from page 5

ETEIIIIjr

right of labor

to bargain

collec-

right and proper to
sympathize with the labor movement in its infancy—more or less
on the same principle that rightthinking people followed AlexHamilton

When

tariffs

down

line

protective
American in-

support
which was

dustry

the

proposed

just

learning

to crawl out of its cradle.
:

That

did

ehould

not

live

that

mean

behind

hiah

walls forever

*
limit to all things. It

.
.

There

tariff

thing to sympathize with
adolescent labor movement. It
is another tbmg entirely to allow
one

the

adult

labor

our

goods.
times

This has happened
in the past—and, in

other

strategically

located

cities

every

country. We

and

—

area

the

™

were

Aircade."

;

One of the significant factors
that a great many people overlook
is*that today, generally speaking,
more
persons
per
family
are
working—and, in many cases, you
will find that families still have
an adequate income, even though

perts

"we," I

say

that

mean

panel of execonomics and legislative

affairs from

the

National

Cham-

feer Staff, plus Felix Morley, who
needs no further identification.
"

was

assignment to make

brief talk wherever

and

then

This

of mergers. /

;

V<-

the

gave

stopped,

experts

took

chance

over,

The

Senate

investigating

com-

mittee's first report has now been

Money to support the Federal Gov- fashion. V
ernment's domestic housekeeping
The principle is

ciple

may

that

found

the same pnn-

private business has
successful. What does
business do in pursuit of making

our

and

profits?
~
.
It endeavors to produce a large }

quantity:, of goods at a low price
instead !of a small quantity of
goods at a high price. "

If this principle works for pri- »enterprise, it should work'

vate

for government in its pursuit of.
tax revenues.
I realize that the Federal income
tax is much like the weather.
-y Everybody seems to talk about;
it, but so few people seem to do
.

anything about it.
As individuals, we need to acquaint ourselves with the restrictive effects of the-present tax
it concerns employees—the rank tional Chamber.
structure, and then spread the
and file union members—and fac\
story to our neighbors, our friends,
tory workers in particular.
Penalty on Success
our associates, our employees, and
On balance, I would say that the
" A
middle-sized, "closely
held the vast millions of people who
Senate committee is off to a good corporation had been so success- never look at the tax withholding
start.
What it has suggested by ful that its owners found them- figures on their pay checks,
way of legislation up to this point selves in the top personal income
We get action on national issues
is well-intended and will serve a tax brackets. It was a penalty oh in this country only by building a
valuable purpose.
success.
groundswell of demand, and if the
But its work is less than fracSo the corporation sold out to voice of'the people is clear enough4
...

*t
f
tionally completed. From now on, a bigger concern. The owners de- and loud enough, Washington will
Mouse i^rror
j s]lou](j jjke to see the investiga- cided that they would be better near it and will obey. :;*
I have also said, and been tion committee plunge into hear- off personally by selling and payI have just one concluding!
^uo^ed as saying, that the White ings about labor abuses which af- ing a capital gains tax than to thought, and.that has to do with-

whit

the party included

traveling on a
split-second schedule by chartered
airplane, and so we fell into the some members of the family
habit of describing our tour as an lose their jobs.
When

be inert.

and state jurisdiction over labor
Investment is what has made
matters. That proposal is sound, our economy so dynamic, so powand I commend the committee for erful.
<
it.
Today, many individuals with
The committee's report also ample funds to invest in new busilook at it from the national stand- contains suggestions for prevent- ness concerns, or in the smaller
point and take the picture all-in- ing the theft of union funds. Pos- type of concerns that ought to exall, unemployment is not having sibly, some new legislation in that pand, are hesitating.
nearly the disastrous effects that regard will be useful. I do not
They are afraid of those tax
some persons think—or would like know. We, of course, already have brackets.
to think, in the hopes of putting laws against larceny.
Let me illustrate with a few
across
some
self-patented mediIn substance—and if the initial simple examples how the heavy
cjne of their own.
report is reduced to its skeleton— hand of restrictive taxation can
w
„„nmthis is what the committee has clamp down on our dynamic com© p
rnmnarPf)
.
t, ~
proposed. Up to now, the commit- petitive free enterprise system.
;
P
.,
,-ErmWi™ iF
11-tee has been essentially concerned
This is an actual case history
totel popination is a small wilh the abuse of union power as taken from the files of the NaP

economy.

During the month of February,
It was my privilege to attend 12
Congressional Issue Clinics in 12
took

who call them-

We must face the fact that unemployment is hitting a large
number
of
people,
and
every
individual case has got to be
regarded as a tragedy. But if you

that

persons

businessmen

this respect, the current leveling released. It contains a proposal to —and the governing bodies of
will have no greater effect than clarify what is actually a legal local communities, counties
similar events in foregoing years, no-man's land between Federal states.

•>

walk rough-shod over every

segment of

movement

their
many

years.

many

selves

Vfc

was

ander

are

who
have
It was venture capital that fiIt would stimulate the creation «.
ICCllOC AT
I.ATIAATA
worked hand in glove with labor nanced more than 60-million of new enterprises.
EilwIEvw V* E EElUflEjp VVIIVvlU
racketeers and .virtually sold their American jobs.
And eventually, the subsequent
m
•
■
m
•
employees — like so many slaves
And venture capital is the seed upsurge in the total national in■ A
thp KfllCinACCmAA I AfljUT into the hands of some union.
from which tax dollars grow. Tax come would make it possible to;
EV
EEI^
IIHvlEftVilwElftilEI
E
VUiftjr
dollars to provide for the national reduce personal income tax rates
Senate Labor Report
defense.
Funds for foreign
aid. all down the line in. substantial "
m

It '

Thursday, April 17, 1958

in all candor, it must be said— spark loan capital, the latter will would do much to stem the flow >
there

V
mm

tively for

;

•

House was a little too exuberant
111 forecasting an almost-immediata reversal of the economic trend
—ba. it is my judgment at this
particular point, that the low has

been reached.
1 do not

mean

say

that

feet all of us—open

its doors

to the impact of labor power on
the economy in general.
The initial report, for example,
says nothing about the secondary
boycott—and I consider the secondary boycott is tyrannical as

continue receiving earnings that the importance of the individual
largely vanished down the drain in the American scheme of things,
of the personal income tax.
I do riot meartthe dignity of the/
And thus another business was individudhV:
; r;: ■?.'
absorbed by a larger one.
" "':'
What did the owners do with
Importance or. the: Individual.
their net after they sold out? The \ Largely-speaking, that has been
■

deal of listening, and you will not have any more dips, or
be sure I took advantage of that the country is going to go
this opportunity. I do not yield straight up from now on, but I
to anyone in my respect for the do think that the general direction
professional economist and the wil1 be up.
professional economic analyst, but
°lie thing that should lend us

the taxes and the Stamp Act im- chances are that they did not in- taken care of in this country. It
posed on the helpless American vest it is a new business.
is not new to say this, but it is;
Colonies just before the RevoluVery possibly, each one put his well worth repeating that Judaeo-'
tionary War.
share in tax-free municipal or Christianity J endowed man with
Nothing is said about subject- state bonds.
spiritual dignity; our Declaration
ing unions to the kind of antiOur files in Washington are full of Independence and our Constithere is no substitute for personal a feeling that we have a
basically trust restrictions which have ap- of case histories to illustrate the tution endowed man with political;
Contact when you are interested sound economy is the prospect for plied to business since the latter restrictive effect of the Federal in- dignity—and our particular brand
In learning all you can about the the 1960's—and that decade is not part of the 19th Century—and— come tax. We know of many small of capitalism- endowed man with
economic probabilities and
possi- faraway. Almost everyone agrees generally speaking—they have ap- manufacturing concerns which economic dignity. •
great
•nay

bilities—or—in

other

words

the

prospects for the rest of this year
beyond that.

that when

our young people who

plied with good results.

would like to expand but have de-

It has been our emphasis on the

There Is Business Confidence

were born in the war years reach
maturity in the 1960's, their demands for housing, furniture,

attempt in the first termined that besides the natural worth of the individual that has
report to end the power of unions risk, the returns would be self- spared us the fate of the caviarto compel an employee to join a defeating.
and-potato-peel societies.

household goods of all kinds—not

union

Let

to mention automobiles—will have job.

end
,

that

say

found

There is

pain

sacrificing

his

profound effect on the economy, the abuse of picketing.
many hard-headed busiI hope that in its later reports,
country. There was little tinge of nessmen who
declare that the the committee will come up with
that false buoyancy that prevailed 19fi0's will bring us a business suggestions
for legislation that
in the early stages of the 1929 boom to top all booms.
pack real authority as to the abuse
debacle. But, of course, you cannot
1 w111 content myself by being of union power in relation to tlie
operate
a
successful
economy a Lttle more modest, and say that general well-being. We must make
purely on confidence
and I am we are in for some exciting times it our business to encourage the
happy to report that I did not when that new generation committee to take that direction,
encounter more than a handful of emcrges from the classrooms and and to urge the Congress, as a
Pollyannas, My informants had becomes a part of the general flow whole, to back it up on legislative
reasons
for
their
more
or
less
°ui* society.
proposals with teeth in them.
optimistic outlook.
So much for the general eco_<
*
In communities that
nomic picture—as I see it.
Examines Federal Taxation
ticularlv harH
hit
hv
r^evaiii
A. moment ago, I referred to the
Let me turn now to Federal
Conditions it
iv Elwoi IE
tremendous growth of the labor taxation.
enronntpr' rnnciL3o
I m°vement and the tremendous
It is a matter of the utmost
oeempnt
t
cLot"
p
growth of its power.
! urgency that the American people
hut
I!om mil n'i t i
xx;h iVh
°. '' F°r many months, a Sentate immediately begin to take stock
less tvDienl
more, or committee has been bringing to of the income tax, and demand
*
At tho pnVr nf *h#»
AV a
i light various flagrant abuses of corrective legislation. The core of
h1
tn
orEf
\ union power. These abuses in- this crisis is the rate structure of

amazing degree of confidence in
the recuperative power of this

1 know

are

wa«

cur

entirelv

mShZ' \S

SithniiV
SpEfpaeiEnai
«nd

end

Will

elude

•

tnrn
w

outright

theft

mtervievvs funds, amounting to
S11*

SnceSlv^
«

union the Federal income tax.
■
I am not discussing the income
tax in the light of prevailing economic conditions. What I have to
say could just as well have been
said at the very peak of prosper-

upwards of

ten mim°n dollars, according to
Fh T?Q*ft~ • ah
estimate§ by the committee.
n,,f ?A
K
m
S
Gangsters and hoodlums have
13S ?2°
been employed to prevent men
*
bette»
yca,1' than and women from working simply
q
^banner because they disagreed with the
r

y
Tho

liaht

tftiir

™

•

tL
mid tod^f

being

h-'

fpim«

aggerated. In

•

n11

•f

II Th^rni
da5/' 1S highly

our

ex- cause

type of economy,

show

force and

came

?enods .ln 1948 alld ln
and
out

them

1954—and

stronger

*3 /^eLwent lnl° them.

than

1,116

instance, the

owner

is in

ity.
Jobs do not grow

tax bracket. If he expanded successfully, he would be

And

by that, I mean those so-:

cieties in which * an. entrenched
minority ruled the roost, while the!

hoisted into the 85% bracket. He majority suffered not only from
would still be able to live very physical hunger but.from mental
comfortably, to be sure.
and emotional malnutrition,
But I am thinking about the
Ourt; history books are full of
fact that about 50 jobs—good-jobs facts about societies like that—
—were never born because the none of which survived.
concern did not expand. And the
When opportunity reserves her
government! lost a creative source knocks for the doors of the few,of potential revenue.
and hope is denied to the many,:
Nor are we merely surmising the whole structure/of,, a system*
here." Many European countries, goes to pot.
\ ■"'*.*A',/ .*, *
•
after making great progress for
Our blessings are worth hanging
years, have stagnated year after on- to—and worth fighting :for:
year, largely because of a hostile Andrew Carnegie . once made a
business climate—expressed par- point on the importance of;the in-;
ticularly in extortionate taxation, dividual which seems.to have been
It could happen here. Now is the obscured by the manumentahstack
time to act before we, the business- of critical-writings about that titan
men, get the blame for failing to of the modern steel.industry.
create jobs and spark progress.
In,popular opinion he was reThe question is, where do we garded * as V a: harsh taskmaster,
begin? At what plateau in the with little humamfeeling for his
income-tax structure do we start employees/ Perhaps.that was true.
using the grading machine?
perhaps it was not true,; but there
Bear in mind that the idea is to js no secret as to what Andrew
generate more income—to create Carnegie put first .in importance
more employment — to meet the _the machine; or man"./
challenge
of the
1960's.
Not
„
'id th t if

trees.

merely to provide "tax relief."
^

Personal Income Tax

maphinerv

w^e

and

destroved

trouble

was

tossed in

committee's

records

also

other Incidents of

I would like to see an acrossperity, but that formula lacks two the-board cut in the personal in-

*emacv

^ere safe and

come

tax, but the sound idea is to

One factor is risk capital, in- operate on the upper brackets in

shoiu

entire

his

long

plant

he would have

commercial

regaining

factors.

vial of acid

his eyes.

foTo

one

union- A newspaperman who had
There are those who insist that
,G Personally been exposing union an increasing population plus hu-"
1S misbehavior is blind today be- man wants is bound to equal pros-

IpwIiW 3 J+aVG Pe™°dSi °I
leveling and adjustment. We had

again

Nothing is suggested about the 75%

as
H

his
Rllt

men
if

sound But if he

would be useless

h s p
t
That same thread

vestment capital, and the other is

addition—not for the sake of the

business management.
We
cotting and picketing without the cannot do much about the latter,
consent of employees for the pur- but we can do something about

upper-income people but for the
benefit of all. That is one way to
unleash creative forces held dor-

weaves
of our

mant by failing incentives.

has not been duplicated elsewhere.

numerous

pose of

ie0^d ?f }h}£ ?r6seat ployees.

violence,

vicious

extorting'money

from

boy-

em-

good

the former.

of thought
through the whole fabric
society, and the pattern

Venture capital is the lifeblood
I suggest that all rates in excess
It is pleasant to recall the beneEElri™ £ ine tact that busiAll of this comes down to an of our economy. It was Venture of 50% be eliminated—or, as an fits we enjoy under a system
v^ntnriiEf 1 a ?lOC
U1~ abuse of Power bY persons who— capital—risk capital—that brought initial step, eliminate all rates in which has traditionally exalted
■XTn./E
iu J
u
I a great in most cases—seem beyond the us our present high living stand- excess of 60%.
This would un- the importance of the individual
wmrrv
oK™
•
U
i®ai1 *° reacb of the law.
ard. Loan capital we need. But leash venture capital. It;'would —but the shield has two sides,
w
y
aDout
oeing able
to
sell
And—I regret to say this—but unless we have venture
capital to help small business to survive. It
There is also the question of
+

Volume 187

Number 5734

;

The Commercial and Financial Chronicle

(1761)
the

duties

and

responsibilities of
importance

the individual—if the
of

the

individual

inviolate,
Man

•7

remain

to
.?

-•

the'.only living

thing
society—
but society is dependent on the
individual. We human beings must
give in order to receive.
/;
which

dependent

chore

participating
in
democracy.

affairs of

.'7 This is

This

active

which

tells

ancient

7If all the national issues which
plague our country today could
be
distilled : together, : the
end
product would show that the basic
cause

trial

in this

is the

hour

preservation of the importance of
the

individual—and

strength,

our

standard

and

all

living
.stature

moral

keyed to that concept.,

are

essence, the national issues
which most concern us threaten

to undercut the importance of the

individual.
No

individual

portant

—

which

have

truly be im¬
the dignity

can

retain

t>r v

endowed

upon

ourselves—if-he sits back and does

nothing by
the

way

S°"

calls for whole-hearted and

presented by today's political

participation in community

r.omic and social problems.

industry plans to in- plants

and

.equipment

vest $34 billion in new plants and

(down

equipment in 1958—12% less than
in 1957, the 11th annual Survey

average
years

1959-61.

nlans

for

Business

the

Plans

conducted

7 Economics

Department

McGraw-HBlPublishine Co
veals.

However,

ticipating

of
re-

eco-

companies

pai-

12%

of participation in

These

and

1961, there

further increase to

$10

-LL-

simple act of
together is not enough.

They

must

and

men

getting

women.

knowledgeable
They must know

the facts. They must make
views

count

with

their

elected

representatives in particular, and
with

their

appointed

representa¬

tives whenever the chance affords.
In

representative government,
such as ours, the government does

de-

again

this ; year, probably
dropping below 50.000 wells.
four

the:

greater

part

Major

supplying

refined

product

requirements rather than making
large purchases from independent
1958

mav

nn-

the

lonetoe-las

in-

the

past, oil

compa-

tfon.„QlK,

ticeable in the

This

•

capacity

new

were
than in

oil

gravity oils. Generally high

grav-

ity oils result in a refinery gasoline yield of a lower octane
rating
than

the

middle

Because

gravity

the

trend

crudes,

toward

higher compression ratios in automobiles, refiners desire a maxi.•
,.

fiasolines^

premium

SUper"
w

*luctuatl.0I>? of demand and to the complexion of the oil industry
tra"sporlatlon advantages I" the in 1957, the following appear to
past
however, the small

refiner has lost

Pians to add

crude

SlTSur?"
seasonai marizing the fOlegomg changes m

wa,

f" 3

current

price adjustments, which reflect a
price penalty primarily for high,

year or so,

volved.

this

represent the outlook at this time:

substantial part

Demand

business.

growth

the

Expanded and
efficient refineries and im-

„.

not

are

the

result

the

research

§230.000.000 BGItQS

plans

lor

10%

1960

new
products, and
estimated volume of

showed

ago

year

sales

1957

new

the

products

only 8% of total sales.

both issues non-callable. The 2%s

Economic

Signs

some

point to
hence. The

now

years

Hemisphere is likely to
play a rapidly increasing role in
supplementing U. S. crude oil re¬
quirements.
Of

late, there has been

the

crude

oil

Canadian
there is

plying

favor

Venezuelan

rather -than
oil.

shift

prorated

Also, domestically,

trend toward supCalifornia from areas in
new

of 1963 are being offered at 100%, the Southwest and
plans to supply
and the 3(4s of 1966 at 100%%. the Pacific Northwest from CalThese new consolidated
bonds ifornia.
Will be dated May 1, 1958.
Number six: A further loss of

Over 40% of sales in the aircraft
and other

the:

Eastern

survey

reversal

Land Bdltl(S Offer
aiL Iaa

boom, industry is developing new
products at a much more rapid
^ wjwwijiww VUHWQ
rate than in the early postwar
The 12 Federal Land Banks
years.
The plans of manufactur- yesterday (April 16) publicly ofing companies show that an ex- fered $122,000,000 of 2%% bonds
pected 12% of 1961 sales will be due May
1963, and $108,000,000
in products not made in 1957. The °f 3 (4% bonds due May
2, 1966,
same

self-sufficient.

was

-„x„

oil supply sources.
expecting a deep or prolonged
recession, and that most are still This trend started some years ago
planning for substantial longer- with the Eastern and Western
Hemisphere tending to become
term growth.

New Products Accelerated

„

Shift of crude

7 in

the

drilled will

vey.

active, practicing citizens
of organization
which we bring together
men
and
women
of strong
in¬
dividuality to advance the public
good.

that the total

appears

wells

124 %

will

affairs of his country.

But

Change

advance

vears

companies

creased

and this is the age
.

clme

United States rf 3% aMuallv and
planned to increase their research much more conservative
more
and development expenditures m
6% abroad versus 6% and 12% to
other recent years.
Manufacturing proved transportation systems of «.»
1958 by 14%.
nostwar vears
Thev nlsn exncct.
They also expect companies
7
reported plans to in- the majors are largely responsible, tlie pu&iwdi yedit>.
to
increase
sales
20 ^
(2) No general crude oil price
by 1961 crease capacity 10% over-all dur- Of
course, recent slack demand
after
a
small
cut.
decline
estimated
jng 1958-61, compared with a 15% has not supported the need for as
from 1957 to 1958—indicating that
(3) No natural gas bill, freeing
increase
estimated
for
1955-58. great
a
supplemental supply, the
most companies are not
producer this year.
expecting On the other hand, companies
However, the new trend is likely
a deep or
(4) A lower level of imports for
prolonged recession and plan to increase sales
20%
by to continue and the independent the "next*Vpar or
so~hiiTth^nVi«*
are aggressively
planning to sub- i96l, after a small decline esti- must
attempt to develop his own ing to a noint
stantial longer-term growth.
exceeding domestic
mated
from
1957-58.
The
Mc- marketing
outlets, as many are production
possiblyby 1975
During 1958, industry plans to Graw-Hill Department of Eco- doing along the Gulf Coast.
•''(5) A'khaip recWbry of refinery
spend over $8 billion on research nomics, which conducted the
profit-margins.
Shift in Oil-Sources
and development. Since
1953, ex- survey, commented that this
(6) Greater emphasis on petroNumber five
penditures oh research have in- indicates most

billion, or nearly three times the
1953 level, according to this sur-

However, it
number

1957) and an
portant part of sales requirements
of $30 billion in the three 5° * ,
<L a n S

cause

General Skepticism About Oils and
Relative Values in the Offing

from

future

;

refiners.

Continued from page 11

company shift toward

der state actual exnenditures be-

the survey said they

To make democracy work, the
thinking citizens of America must

affairs—and, in the
far-sighted forbears

our

magnificent
our

vast

our

glVeS

American

adage

that, "For evil to
triumph, good men need only do
nothing."
;
%
;
us

national

Twenty percent sales increase by 1961 expected to follow
small intervening decline.
Research boom foreseen, with
high proportion of new products being planned in aircraft,
machinery, auto, textile, paper, and chemical industries.

day when the action of
man counts — and
I am

every

and

McGraw-Hill Survey Shows Capital Spending
Down But Research Outlays
Increasing

reminded

meeting the challenge whi^ is

„

ciety.aS t0

the

our

only

spirit of

of the painful

more—not

what he receives from society, but

The greatest danger to our ideal
of the importance of
the indi¬
vidual is self-complacency — a
feeling that someone else—some¬
how—will relieve

and

Proceeds from the

sale

the

markets to

natural

and

gas

coal,

rhemieal nrndnrtion

(7) A long-term down-trend for
domestic drilling
-

(8) Greater competition for foreign markets.
(9) Extended hearings on the
"Memphis Case Decision" lasting
than

year.

(10) The gradual elimination of
U.

crude oil productive
capacity.
./
(11) A greater emphasis by the

excess

stock market

earnings

oil

and

crude oil

company

cash earnings
reserves

than
dis¬

new

coveries.
The year 1958 is likely to be one
of many new adjustments in op¬
erating conditions of the petrol¬
eum industry.
However, after the
current

the

period

world's

consolidation,

insatiable

needs

for

bonds will be used to redeem $209 Last year the natural gas pipeline
not represent all the people.
energy will indubitably bring
dustrv are planned to be in items million of bonds maturing May 1, companies
experienced
another
about a resurgence of normal
It represents only those people new since 1957.
The machinery ?958, to repay short-term borrow- year of substantial growth.
This
growth in demand for petroleum
was due in
who take an active interest in it. industry is counting on new prod- ings, and for lending operations,
large measure to the
It

those

the

own

free

ing

people

ride—up
the

who

literally
Others get
down—depend¬

government.
or

moral

stature

the

active segment. We ought to have
—all of us—a sense of obligation
to

system and

our

society to

our

establish the ideal of perfection as
our

goal.

" '

■

Of course, we will
perfection, and that
as

well.

never

It would rob

reach

be just

may

of all the

pleasures of anticipation.
We

add to the stature of the

can

individual today because the times

right for it.
challenge is made to order

are

The

because the contrast between

our

society and the societies of cen¬
tralized authority stands out today
-in

vivid
To

relief.
up,

tunity to be important.
To be important, he must
cept

challenge

the

life

ac¬

democratic republic.
He cannot be important and he
cannot retain his dignity, unless
he is

active

participant in pub¬

lic affairs.
He cannot be

active partici¬

pant, unless he is informed on

na¬

lets

his

tional

issues—and

then

elected

representatives know his
views, and his reasons.

Dignity—importance—informa¬
tion—and action—all go together.
Under

ucts for 22% of its 1961 sales. And

The

the ratio varies from 10% to 14%

through

for

companies in the automobile,
paper and
chemical industries.

textile,

In addition to

f"Ll^i^duc7 °*£s
companies
surveyed, 41%
were
working
ucts

and

The

democracy,

hand,

man

the

other

who

counts.

entirely

11%

survey

turn

research.

panies

the

new

improvenew

ance

of the

this

"pay off" in less than live
nr.l/\n
1
in increased sales or lower
/\v»

basic

scientific

research

had

„

modernization.

Investment in

New

nationwide

dealer

and

Stajft sEtaf o!

Reynolds & Co., 629 Second Ave-

and

also covered plans
new plants
equipment and changes in

cost, highly competgas undersells fuel

natural

much

60%

oil

filled

65%

the

relative

some

and, at the wellhead, on a
BTU basis, costs the equivalent of
$1 versus $3 for crude oil. In 1946
areas,

ket

but

34%.

now

Last

for

accounts

year

there

also

was

Join Central States
(Special to The Financial Chronicle)

MANSFIELD, Ohio—George J.
Schneider and Elizabeth A. Smith
have

joined the staff of

States
Tl

* 1

Investment

Co.,

Central

plants. This was due to the many,
heavy fuel oil price increases fol¬
lowing the general crude oil price
increase in January 1957. Now,
however, there are some signs that
natural gas and coal may not
aam.Iw*

Change number
IrJin

Cwpn

con-

Walpark tinue to displace crude oil sources
of energy as easily as in the
past.
am

Building,

use

by utilities and industrial

Arlrlc

trend toward

seven

is:

-a

basis for pric¬
ing crude oil and refined products.
In the past there have

Jonn ureen Adds

move

from there to

make/

the: individual

count

for

noted

Inc.

and

(April 16)
offered
an
issue
of
$7,515,000
Northern Pacific Ry. 3%% serial
equipment trust certificates, ma¬
yesterday

turing annually
1973, inclusive.
The

May

certificates

are

1959

scaled

yield from 2% to 3.75%, according
to maturity. Issuance and sale of
the certificates are subject to au¬
thorization of the Interstate ComMAmmi

1V1 ATf*r%fS

The
28

AV*

Commission.

merce

issue

Diesel-electric

secured by
road-switching

locomotives; 450 box

cars

and 25

(special to the financial chronicle)
existed, refrigerator cars, estimated to cost
CLEVELAND, Ohio — Chris
generally, two bases for pricing not less than $9,411,950.
Markos has been added to the
Associates in the offering are:
crude oil. The first applies to the
staff of John S. Green & Co., Figravity of the crude oil and the Dick & Merle-Smith; R. W. Pressdelity Building.
second to the location of the
Prich & Co-i Baxter & Co.; Freeon

source

With McDonald Co.
Ohio—David

Halter has become affiliated with

McDonald

Commerce

the

crude

&
Company,
Union
Building, members of

Exchanges.

Whitmore, Bruce Branch

„

Co.;

Ira

,TT

relates

man

the

United

McMaster Hutchinson & Co.; Wm.
E. Pollock & Co., Inc.; and Shear-

States Gulf Coast.

(Special to The Financial Chronicle)

CLEVELAND,

transportationwise to

Now, however,
there is a tendency toward some
independence when pricing crude
oil and products in the Middle

son,

Hammill

Haupt

Co.;

Co.

Bunker With Andrews
(Special to The Financial Chronicle)

While abroad change

m the world

crude oil price structure may take

some

years, a new trend appears

to be

underway.

HARTFORD.
F.

Conn.

—

Reynold

Bunker has become associated

with E. T. Andrews &

Co., 75 Pearl

In the United States a new
pric¬ Street, members of the Boston
Whitmore, Bruce and Co. has ing element is
gaining increasing Stock Exchange. Mr. Bunker for¬
and
opened a branch office at 79 Wall attention. In
many areas prices
manufacturing capacity. Present Street, New York City, under the are beginning to reflect the value merly conducted his own invest$
plans call for total business in- direction
of
Ralph
E.
Whit- of the crude oil to refiners on the men^ business in Portland, Maine
vestment of $34 billion in new more, Jr.
basis of yield. This trend is no- and White Plains, New York.
for total investment in

...

Let

Halsey, Stuart & Co.
associates

The

a new

Halsey, Stuart Group
Offers Equip. Tr. Ctfs.

na¬

over

values

superior quality petroleum
equities.

many

hydrocarbon requirements
compared with 50% currently. On
the other hand, in 1946, natural
gas held a 25% share of the mar¬

of coal

Equipment
survey

that low

itive

considerable switching to the

)he New York and Midwest stock

Plants

oil

crude

conducting

longer payoff periods (up to 10
years), but three to five years was
the most frequent estimate.
Reflecting the rapid technical
change brought about by the research effort, manufacturing companies plan to put 56% of their
1958 capital investment into re¬
placement and modernization of
present plants and equipment, the
survey
showed.
In
the
years
1959-61, plans call for 62% of
investment to go for replacement
and

group.

CSpecial to The Financial Chronicle)

corn-

investment

Some companies

made

tion's

re¬

years,

costs.

being
fiscal

Joins Reynolds & Co.

com¬

invested

money

Over 90%

expected

bank's

processes.

high rate of

the

banker

prod-

revealed that

panies expect

The

himself

product

ments, 48%

pieces of pig iron.

products, in¬

dustry's research program in¬
large sums of money for
development of new manufactur¬
ing processes and the improve-

dictatorship, men are
counted—like so many pigs or so
many

new

offering

agent,
John T. Knox, 130 William St.,
New York City, with the assist¬

cludes

I would like to say
"that individual dignity is always
in peril when the individual fails
to take advantage of his oppor¬
sum

transport equipment in-

Financial Chronicle

The Commercial and

the

Continued jrom page

dentally, however, this

At least extra¬
the elementary
error
of supposing that change
will not occur, a supposition with
a surprising number of adherents.
If there are no real indications
of the present and expected rates

Fusion
has been successfully
demonstrated in uncontrolled
form in the H-bomb, sometimes

to as the fusion bomb.
Experimental work has been in
progress in the last few years and

/referred

investigations

theoretical

of progress,
tion is not

then even extrapola¬
possible

—

projections
surmise,

into the future are mere

were

making.
They are
worthless
because

not: worth

"pursued even before the uranium
*sha}n reaction was demonstrated.
/Present optimism stems from the

than

worse

they are likely to be misleading.
To return to fusion, we
cer¬

have
been made and certain milestones tainly do not wish to fall into the
elementary
error
of supposing
have been reached in the techno¬
that progress will not be
logical road to controlled fusion. As investors we must try tomade.
esti¬
It
is
important, of course,
to
mate the present rate of progress.
recognize
the road which has
We must try to estimate the fu¬
been traveled, but such progress
ture rate of progress, which will
must be viewed in the light of
no
doubt be greater than even
the road which remains to
be
the present rapid rate, for we live
traveled. For example, it is well
in an era of accelerating technol¬
to recognize that fusion experi¬
Put simply, we may expect
ments performed to date have not ogy.
to reach
our
destination sooner
yet put us in a fusion position
fact

notable

that

advances

comparable to our fission position
in 1942.
It was nearly 16 years
ago

that Fermi and his co-work¬

problem then is to try to
our present rate of prog¬
ress
on
fusion, to estimate how
this rate may change in the fu¬
The

been
of fusion.
When it is recognized that a great
deal of engineering development
work remains to be done even in
the. case
of fission
it becomes
clear that a considerable period of

known

the

have

far

reached

tion.

Considered

fusion

duce the

have said, that

enough

warrant the

major

uranium stocks.

A natural question at this point
difficulties
is often asked. What if there is a
obtained by a
technical "break - through"?
By
consideration of the energy bal¬
definition the rate of progress is
ance in the latest experiments.
It
abruptly altered, and in one mo¬
has been announced by Sir John
ment an advance may be regis¬
Cockroft, (leading British Scien¬
tered
equivalent in its implica¬
tist in the field) that the energy
tions to many years of arduous
obtained from other sources and

may

.as
-

tained
what

the

such

only one trillionth of
used up. Note that the

was

energy

tially

requires

based

formation

grade.
For exam¬
ple, it is $4 per ton for ore con¬
taining two pounds of uranium
oxide.
On ore twice as rich the

fusion
constitutes any threat to uranium
necessitates of course a projection
into the future. We all know pro¬
jections into the future are sub¬
whether

determine

However, one may

ject to error.

with

degree of re¬

least some

liability, project into the future if
one
can
obtain a fix on one's

present position
estimate

one's

and if one
present" and

can
ex¬

rates of progress. The
projection into the future may

pected
then

by the process

obtained

extrapolation. Essentially ex¬
trapolation is the mathematical

extension of

such

series of numbers

the

that

way

same

mathematical relationship governs
both"

numbers

the

known

(being

which

are

past)

and

the

the numbers which are unknown

(being in the future).
Extrapolations have been useful
in the past and to some extent ex¬
trapolation is used in all success¬
ful
predictions.
On the other
hand,
wildly erroneous conclu¬
sions

have been

trapolations

drawn from

based

ex¬

inaccurate

past figures, or by the blind as¬
sumption that the future rates of

change

will

rates

resemble

very

the

se¬

occurs,

Totals

the

Representative
Durham, Chair¬
man of the Congress' Joint Com¬
mittee on Atomic Energy. He has

world's produc-. stated that present and projected

Details ap-. production

1959.

ium

important
figure to consider in Table III is
the 39,000 tons of oxide to be pro--

insufficient

billion-dollar

other.

in
1959
and later
years. come to pass, uranium procure¬
figure will become about ment figures would have to be
increased
in
the
40-42,000
if France ///and
other substantially
small
producers .■< are y included. years to come.
•
- v
.»■
These
Another important military de¬
figures show/ the supply/
side of the picture and a few com¬
mand figure, outside the weapons
ments on
the
demand, side are area, could increase dramatically.
next in order.
This is the demand for propulsion.
"
j:U;
Arthur D. Little, Inc., top chem¬ Senator:'Jackson
of the Senate
ical
consulting
firriv? estimates, Armed Services-Committee has
that demand in the late 1960's called for the construction of 100
when the market, will no longer, atomic
submarines. -' Chairman
duced

This

section

the

show

figures in the first
how sharply the

on
weapons
require¬
The former represents an

pending

ments.

approximate balance at projected
government take is increasing. It
capacity production.
The latter
is true that miners without mills,
would of course mean we would
have to find a mill to take their

quantum leap

increasing
the way it is, this merely means,
the
prospects overall are only,
bright instead of incandescent.;/ ,
With procurement

ore.

may

utterly

out¬

with

faced

ton

figure

that

proportions

depress

Another
distant

wholly lacking in real¬

The information at present,

1959 Product'n

Tons of

Uranium Oxide

U3Os

5.4

320

2.4

205,000
380,000 -

0.68

370,000

U3°S

18,000
15,000
6,000

39,000

Within

produce. Shortage of ore in a cer¬
tain locality may cause a slightly
more
distant mill to bid up the

price of ore and this has been a
common
occurrence
even in the
past, especially for higher grade
ores
or
those
of
exceptional

amenability.
or

Whether the miller

the miner will be in the better

position
955,000

mill.

ore

depends

how

much

is discovered within the ore-

hut still
demand looms

fascinating

source

that weapons in the future. This is the use of
20,000 tons, about nuclear energy to propel aircraft,
capacity projected for/ to Propel military rockets, and to
assumes

demand will be

the

half

the halo, miners may well experi¬
ence
a
seller's market for their

submarine
projected in deriv¬

for no such

was

ing them.

the 40,000

AEC to buy

of "halo" around the

figures

program

shortage.

severe

noted

very

necessary,

oil and coal stocks. Any such con¬

great increase in the de¬
above would
be

mand

...

ism.

of, fissionable

uran¬
and that an¬
plant
like
Hanford
or
Savannah River
should : be built.
If this should

/•••*'>.,••

in Table III.
Perhaps
the
most

pear

steel, aluminum and otherThe market has

and

take

of Ore

1,495

contribute

informed observer is

very

degree of uncertainty for all of be
protected by presently-known Cannon of the House Appropria¬
In the case of urani¬
contracts, will be anywhere from. tion Committee has seconded this
the uncertainty merely relates
40,000 to 62,000 tons of oxide de¬ proposal. If it should be adopted
to how much the government will

Lbs. Per Toon

will

and

tion in the year

One

Uranium Oxide

1,100

bulk of the free world's

the free

together

Africa

South

does/not require

which

uranium.)

the

(2) There is a guarantee by the 1959.
'
/
!' *
domestic concentrate
In late
moded.
1956, AEC J Chairman
until Dec. 31, 1966, at a price not
Strauss stated virtually all pro¬
To return to fusion, no one can
less than $8 per pound of con-,
duction was going into weapons.
assert
with
absolute
assurance
tained oxide with a further pro¬
Based on dollar procurement fig-,
that it will not eventually outviso that the AEC is obligated to
ures roughly 20,000 tons was pro-,
mode uranium. It is equally true
buy only $8 million worth ' per
duced for weapons in fiscal 1957.
that no one can assert with abso¬ year
per
property, although it
but it is anticipated considerably
lute assurance that it will not naturally
may
contract to buy
more will be used for weapons in
outmode oil or coal. One can say- more. Since the concentrate guar¬
fiscal 1958 and 1959 (based on in¬
that based on all the information antee stretches further into the
creased weapons budget figures).
available, with the aid of all rea¬ future, it might appear to favor
sonable extrapolation, the chances millers of concentrate over min¬ Figures for weapons do. hot in¬
clude expenditures for fissionable
are
heavily against the obsoles¬ ers of ore. Construction of a mill
materials used in the weapons, hut
cence
of oil or coal or uranium of
course
requires capital and
if the former increase generally,
by fusion (and against the obso¬ hence the charge of favoritism
the latter may be expected to in¬
lescence of oil by uranium for
toward
big business is mad e.
crease also.
The figure of 20,000
that matter). In short, those who Upon examination it will be real^
tons for weapons in the late 1960's
assume
without any present or ized that such a conclusion is not
is evidently considerably less than
foreseeable basis a fusion break¬ warranted. For example, the area
will be used for weapons in 1959^
through of sufficient proportions around a given mill may well be
Nuclear Development Corpora¬
to
obsolete
uranium may with all mined out long before the end
equal force assume it will be of of 1966. The result will be a kind tion of America, top nuclear con¬

clusion is

these items.

mastery of his environ¬
ensues,
and
a
preceding

sufficient

requirements do

Since weapons

(Ore)

Union of So. Africa

bulk

published in 1948. At the
worst these limitations leave
industry no worse off than

copper,

in man's

technique

;

Demand

Weapon's

$10.50; play

and-

Canada

S.,

reserves

metal industries.

of Tons

Canada

Union

guarantee and they have been
present since the guarantees were

Millions

States

($35

eight times as great

-Reserves-

United

over

first

TABLE III

Country

1957,

$11.50;

hold the

ton is paid for ore containing
eight pounds of oxide per ton).
There
are
limitations
on - this

nology is subject to sudden obso¬
lescence. That is, if a real break¬

ment

short¬

age.

weapon

per

real basis for

through

price is four times as great and
on ore four times as rich the price

judging when a
break-through will come or the
extent of its impact.
In a sense
we live in an era where all tech¬

rather lengthy process.

1959 will result in a severe

Free World Resources

The

grade presented to it
until March 31, 1962. Price varies

expected
bal¬
ance will be improved as further
just extrapolation, it is equiva¬
experiments are made, but the
lent to mere conjecture.
There is
improvement appears to be a
is

consumed.

that this unfavorable energy

average

1956,

exists are

now

minable

essen¬

careful

be obtained.

can

(1) There is a guarantee by the
to buy all domestic ore of

complete in¬
To
assume a break-through not fore¬
shadowed in some fashion is not

lection

is in addition to any fuel energy

market

AEC

Successful

unpredictable.

investment

used up, referred to here

Unfortunately

break-through

lows:

worth reciting:

destination.

given

was

of course,

could

was a

prices paid and
estimated to be paid for concen¬
trate have been announced as fol¬
S.

postulated for

requirements

ons

tion.

—

break-through
completely alter
estimated time of arrival at a
Such

effort.

producing the fusion re¬
million, million times
much as the energy produced.
other words,
what was ob¬

used in

action

not

buying area of the mill in ques¬

major role in the balance
1958, $9.60 and 1959, $9.30.
supply and demand, it is worth
seeable should occur it might af¬
(3) The Canadian market is al ¬ looking at this portion of de¬
fect oil or coal as well as uranium.
completely
dominated Z, by mand further. Quantitative treat¬
In
other
words
the uranium most
milling: com¬ ment is quite out of the question
market lives in constant danger of contracts between
present security ./restric¬
being eliminated by new technol¬ panies and a Canadian Govern- - under
ment corporation, buying in behalf * tions.-However, a few qualitative
ogy. But this is true of all pres¬
of the U.
S. AEC.
These con¬ points may be helpful.
:
J "
ent
technologies— They are all
It is clear that atomic weapons
jeopardized by new technologies. tracts extend until -as early as
1960 in the case of Gunnar Mines: have diversified enormously. Thte
The point1 is that there is no suf¬
to as late as 1963 in .the case of total
number
of weapons must
ficient reason for the market to
single out fusion and use it as a Consolidated Denison. There is a - therefore increase greatly since it
reason
for
depressing uranium guarantee of $7.25 per- pound of i is necessary to stockpile all types
stock
markets.
The
threat
is- oxide in Canada, but this has been < of weapons for all types of wars.
there, but it has been falsely ex¬ superseded by the contract prices - It should be kept in mind that a
nation which has foresworn ag¬
aggerated as being of a different of around $10.
(4) The South African market gression must inevitably fight a
character and magnitude than it
is similar to the Canadian, mar¬ war of the enemy's choosing. That
is.
ket with a few major differences. is we must be prepared not for
Uranium Market
The ore contains gold as well as the
particular
war
we
would
(3) Fancy—Uranium is, or will uranium and hence the mills yield choose if we had to.
We must
be, in over-supply, apart from fu-/ both products. The ore is lower in be
prepared for all of the dif¬
sion.
wars ;
grade but there is.;even more of ferent
an
enemy' may
Fact
There is a guaranteed it. Although the U, S. is the ma¬ choose if
it
wishes to.
Any
market for all the uranium which jor taker, purchase is made by the
weakness in one part of our ar¬
can be produced
over the near Combined Development Agency, senal constitutes an invitation to
term.
/■;-/:/ a joint instrumentality. <of the the enemy to choose a war which
U.
S.
and U.~ K; • governments. will play on that weakness. ' :
Over the longer term the mar*
Illustrative of the proliferation
Contracts extend until as early as
ket is naturally more difficult to
1964 in the case of West Rand
of atomic weapons is the fact that
predict.
Highly
qualified
ob¬
Consolidated to as late as 1967 for all the major missiles are known
servers believe the future offers
either an approximate balance be¬ Buffelsfontein.
Vr;l
v to have the capability of deliver¬
tween demand and supply or a
Average prices paid and to be ing nuclear warheads.
(Inci¬
shortage depending on the extent. paid for foreign concentrate are: dentally, no informed or responsi¬
of weapons demand.
1956, $10.90; 1957,,, $11-.15;. 1958, ble observer has stated that there
is
such
a
thing as
a
nuclear
The main features of the urani¬ $11.15; 1959, $10.70;

according

An indication of the

involved

rea¬

expected to re¬

demand for uranium, at

not

present depressed levels of

point not yet reached.

as we
cannot be

this manner

appears,

least

sustained

achievement

the

fusion,

will reach our destina¬

when

both

based on

hence

and

ture,

case

development will have to follow

;

Thursday, April 17, 1958

estimate

fission) and
point is not

(controlled atomic
the'corresponding

speed up.

Cannot Blame Fusion

achieved their historic success

ers

appear

be signifi¬
by
fusion for
years. If the unfore¬

many, many

avoids

fusion polation

negligible.

fuel costs will be

which

quirements will
cantly
affected

change in the past.

is not the

of saying that

equivalent

advances

sonably foreseeable, lend credence
to
the notion that uranium re¬

Uranium—Fact and Fancy

♦

(1762)

sulting firm, estimates demand in
the late 1960's at between 31,000
and

43,000

anything
ments.
do

tons,

for

including
require¬
requirements

not

weapons

continue at around the

recent

craft. ~ Any one of
enter the picture,
by the late 1960's and again uran¬
ium requirements will increase.
In summary, then, it appears
that the facts do not support the
propel. space

these may well

fancies.

three

Uranium purchas-

is.expanding not declining;
fusion
prospects are improving,
but not to the extent of threat¬
ening uranium; the uranium mar¬

guaranteed until the middle
time de¬
mand
and supply should be _at
least in rough balance. : :

ket is

1960's and at about that

Predicts Price Advance

however,
reflect widespread acceptance >of
the three fancies. Major Canadian
Uranium stock prices,

producers for example are selling
than they will earn from

for less

their

present backlogs. Comparison
also heavily

with aircraft stoeks,

dependent

defense

require¬

ments, illustrates the present low
market
valuation
on
uranium.
isn't

There

aircraft

company

backlog big enough to re¬
20,000-ton level, or at the more
than 20,000-ton level of the next turn its market price from earn¬
couple of years, we will once ings. In the case of uranium, earn¬
again face a shortage.
In other ings from backlog alone exceed
market by a considerable amount.
words, then, we must experience
More important still, in the case
a decline in the 1959 weapons re¬
of Algom and Consolidated Den¬
quirements in order to avoid a
with

shortage.

To maintain the weap¬

ison,

for

example,

reserves

still

Volume

187

Number 5734

The Commercial and Financial Chronicle

in the ground after completion of
contract
deliveries
will
permit

continued operation for

;

SI.

(1703)

Petersburg Stock & Bond Glub Formed

Co>nmued from

In other words, the fully
amortized mill and the reserves
in

the

ground are
than nothing.

less

•

available

Exposing Short-Sighted

for

Comparison

;

And Selfish-Ends:

with major oil stocks is also nat-

ural.. Leaving aside the fact that
oil companies have practically no

i
.

save

backlogs, no major oil company
with a 50 year reserve is available
for its earnings over the next five

has not been prepared

♦

" ■'
//-.'J:
During., J95.8, earnings figures
uranium companies will start.

years.

<„
/
-

•

important

perhaps, dividends will start to be
paid.' -A$ these events occur the

relatively

low
stocks

comparison
tries,

recognize the
prices at which
are

with

available

other

and

uraniums

should

tee, has been
'

effective

-bank

for

loan

incurred

completion

/Association

plant

of the Gardner Division.

The bal¬

of the proceeds will be added

„

the general

funds of the

com-

Gardner

The Diamond Match Co.)
is an
important producer of molded pulp
products, paperboard cartons, paperboard,
lumber, matches
and

woodenware, and is
of lumber and

the

changed

D. Read, A. M. Kidder & Co., Inc.

Paul

Treasurer:

Good, Thomson & McKinnon.

1957,

hastened

Davidson-Vink-Sadler, Inc.

based

Hough, Beil & Hough,

Hough,.Inc.; Lemuel Scarbrough, Thomson & McKinnon; Maurice
L. Foisy, Merrill Lynch, Pierce, Fenner &

Bache &

fol¬
•

Smith; George E. Orr,

Co.; Pat O'Brien, Bache & Co.; T. Ray Gaither, Good-

body & Co.; and John F. Gallagher, Peninsular Investments.

the

in¬

their

by the same

next year, to compensate
members
for the
rise
hi

prices

caused

their

wage increase.

And this would go

indefinitely.

What

the

economists

ought td

have

series of increases which

raw

effects

material

Diamond was founded in 1881
has paid
a
dividend on its
stock in every year since

enable the Government to call Off
its
disinflationary measures, so
that
manufacturing industry

would be able to make full use of
its expanded producing

capacity.

This

the

would
cost

mean

reduction of

unit of output, and
in the absence of wage increases
prices would be reduced.
Such

per

solution would not suit,

however, the
Trade

extremist
leaders.
It would

Union

that everybody would bene¬

mean

prices

the

and

the

serve

entire

members.

own

tude

were.

benefit to

If only this

adequately

their
atti¬

exposed,

public opinion would range itself

whole-heartedly

against the
strikers fighting for such short¬
sighted and selfish ends. And al¬
though the Trade Unions repre¬
sent

many

even

they

ignore

ary measures.

Politicians and Realities

this

only Trade Unions restrained
their greed for a little longer, the
resulting stability of prices would

of the Government's disinflation¬

and

addition
on a

simple arithmetic, economists
ought to have explained that, if

granted to the Trade Unions

the

combination
of supply-and-demand
theory and

nullified

the basis of the higher

level.

argument, based

last year.
The increase of 5%
given to the employees of British
Railways a year ago was the first

fall

a* manufacturer
of
paperboard and folding cartons.

price

all, the increase in the
living by some 4 points
during the past 12 months has
been entirely due to the wage in¬

would not be enough pur¬
power
to maintain the

chasing

fit by the expansion of production.
And Trade Unions want to re¬

Wages

First of

than

Co.,

fundamentally false.

are

Blames

cost

William R.

are:

findings, instead of trying to popu¬
it
by the publication of
abridged and simplified editions.
Neither this report, nor any other
publication or public statement
has even attempted to attack the
firmly established false belief that
organized labor is perfectly with¬
in its rights when trying to secure
full compensation for any increase
in the cost of living.
So long as
this conception is allowed to stand
unchallenged there is bound to be
much public sympathy for trade
unions' claims for wage increases
up to the extent of the increases
in the cost of living index.
Yet
the argument on which such claims

crease

November,

unions

demand

points.

larize

are

Inc.; Derwin B. Smith, Grimm & Co.; George T. Mason, Beil &

company was

lowing the merging of the inter¬
ests of Tfi? Gardner Board
and
Carton

Ronald A. Beaton, Ronald A. Beaton Investment

Other- charter .members

building materials.

are:

Secretary: Soren D. Nielsen, Beil & Hough, Inc.

U.; Sadler,

distributor

The

name

principal requirements

Y Y "/Directors: W. A. Emerson, Merrill Lynch, Pierce, Fenner &
(formerly Y Smith; J. Herbert Evans, J. Herbert Evans &
Co., and Clifford

pany.

Diamond

./-<n

the

are

Newly elected officers

^yice-President: Edmund
-

Securities Dealers

for membership.

anticipated expansion of facilities
ance

integrated forest
products,, J/. * .!.President:
at Red
Bluff, Calif., and
Securities.

new

cost

another similar claim

there

of the most

some

dissociate itself in public from its

principally

ground

the

Government

The

Blyth & Co., Inc. The debentures, /afnoh'g members of the profession, as well as to improve the code
were priced at 100%
/ '■ "
and accrued ; of ethics..
are 16 charter members and it is anticipated that
; interest.
V. '■\/■.
many
'V
"others eligible for membership will be added to the rolls. Ten
The proceeds from the sale
of.
the debentures will be' used by*
years' in the securities business (three in St. Petersburg), and
the company in part to retire a / membership in or affiliation with a member of the National
$12,000,00.0

Neither the Gov¬

And it overlooks

Public: offering / of
$25,000,000 j
Diamond Gardner Corp. 4% sinking- fund debentures due 1983 was Yw ST. PETERSBURG, Fla.—The St. Petersburg Stock and Bond
ClUb, an organization of securities dealers and representatives, has
made yesterday (April 16) by an
underwriting
group
headed ; by ;. been'formed to promote the exchange of business information

■

the

living last
year, the resulting increase in the
cost of living would give rise to

sarily antagonizes trade unionists.

K Gardner Debentures
*

crease

almost complete
failure. It is too long and too tech¬

Blyth Group Offers
$25,000,000 Diamond

ceded

opinion
adequately

wise men" of the Cohen Commit¬

ad-

-■

an accelerating pace.
Unfortunately, public

explained to the Trade
Unions, politicians and news¬
papers
depending on them for
guidance is that, in the absence of
nical
to
be
intelligible for the further increases in wages, the rise
layman. It is couched in too tact¬ in prices is bound to become re¬
less language, so that it unneces¬ versed, for the simple reason that

branches

mining and defense indus¬

vance.

Einzig

If wage increases are now con¬

ernment, nor the Conservative*
Party, nor the employers' organi¬
zations, nor the press, and least of
all, economists, have taken the?
trouble to enlighten the Britishpublic about what is really at;
stake.
The one major effort to
that end, the report of the "three*

market is bound to

of the

Even

appear.

Britain: from nonstop inflation

for the conflict.

for

'/uranium
,

than

50 years.

millions

could

the

not

opinion.

pressure

people,

afford

public
<

common

that

date.

pany

in 1957

Net

sales

were

net income amounted to

The debentures

the

are

"Contrasting with the moderation of the business

com¬

$170,645,000 and
$8,129,000.

not redeem¬

able

prior to April 1, 1963, other
for the sinking fund, as a
part of any refunding operation
which borrows money at a rate
lower than that borne by the cur¬
rent
issue.
Optional redemption
prices start at 105% for deben¬
tures called during the five years
beginning April 1, 1958 and de¬
cline lk of 1% each year there¬
after to 100%.
The sinking fund
provides for the
retirement of
$625,000 of debentures semi-an¬
nually beginning Oct. 1,
1963
through 1982, calculated to retire
the entire amount at or prior to
than

recession is the excitement stirred among

leaders. This reflects

government actions are taken, the best the economy
do is to flounder

can

sideration that actions
of

the

and

The

Frank V.

Continental

McCullough of
Companies will

memory

"Nevertheless,

weight

the Midland Hotel.

James

Carstairs, Philadelphia,
Pa., member of the PhiladelphiaStock

1906, passed

Exchange

away on

the

society

our

the

most

are

acute

history.

concern

Federal

high-level production

incentives which lead

provided by private employ¬
need

understand

the

enterprising people to offer

employment opportunities and the price-cost rela¬

since

"It

will

With McDonald, Holman

tion

Richard
filiated

Rackliffe

with

McDonald,

now

af¬

Co.

can

laid

for

sound

—

The

'First

National

New York.

Holman

Inc., 214 North Canon Dr.

for

our

every

Addresso-

investment

alphabetically

States

and

Cities, and within the Cities by firm names.
This list is revised daily and offers yon
most

the

up-to-the-minute service available.

Our charge for addressing

complete list
per

can

envelopes for the

(United States or Canada) is

thousand.

also supply the list on
a

gummed roll

small additional charge.

only be by sacrifice of selfish political

recovery."

company.

Service

and

enduring

Herbert D. Seibert & Co., Inc.
Publishers

Calif.—

your

(Special to The Financial Chronicle)

HILLS,

metal stencil in

Department

labels at

April 7.

the Investment

Investors look to

banking and brokerage firm in the country,

$7.00

arranged

advantage, and attention to realities, that a founda¬

BEVERLY

graph

profit.
*

Country.

information

for

A ddressograph

tionships which permit production and sale at a

James Carstairs

Baltimore

our

political

the

pros¬

employment. Since the bulk of job opportuni¬

ers,

We have

responsibility

Government has assumed for

ties in

Mail your Annual Report to
Houses

an over¬

ffi

present

the

them

si:

the

was

projects to restore

the longest depression in

the

con¬

resilience

of the Lost Decade, 1930-40, when

perity gave

and

unem¬

the

was

Lurking in the background

abundance of government

be speakers at the luncheon meet¬

ing of the Investment Analysts
Society of Chicago to be held
April 17 in the Adams Room of

chronic

already taken,

CHICAGO,. 111.—Boyn N. Ever¬
ett

and the people, might bring the

economy

desired revival.

shows

Chicago Analysts to Hear

along with

ployment problem. Counselling delay

maturity.
■

political

feelings that, unless effective

Washington please take note!

of "Security Dealers oj

North AmertoaT

City Bank of
25 Park Place

REctor 2-9570

New York 1

The Commercial and Financial

Chronicle

and the level of the low levels, ultimately, from an inter¬
mediate viewpoint there does not
point t)f the recession can easily
seem to be much logic in antici¬
prove to be in error. If the con¬
sumer's price index could be re¬ pating that these measurements
of economic welfare should bounce
duced by 4 or 5%—and no more—
that
would be dandy. It would right back to levels of a year ago
that were so recently proven to
the favorable aspects of the altered increase the potential purchasing
have been excessive.
of current incomes and
credit situation against the un¬ power
(5) This last perspective per¬
favorable facts of the recession savings on balance.
On
the
other hand,
if com¬ haps needs greater consideration;
was
pointed up very nicely by
a willingness to accept calmly un¬
Federal Reserve Board Chairman modity price weakness entered a
satisfactory current earnings for
deflationary
trend
we
Martin a couple of weeks ago. really
a
given company because of an¬
After pointing out the obvious in¬ would have another bucketful of
ticipation of an early recovery to
crease
in credit availability, he problems in the field of business
the high record earnings of the
and investment analysis. It is safe
said:
last two or three years might
to say that the very large majority
"Monetary policy by itself, how¬
of opinion is not at all worried prove to be a bit disappointing.
ever, cannot assure resumption of
(6) The probable economic ef¬
about that kind of deflation and I
a
high level of employed and lean toward that
fects of higher government
ex¬
majority view
sustainable economic growth, al¬
penditures should be appraised on
myself, in spite of the prewar
an
arithmetical basis against the
though ready availability of credit economic
history which indicates
at reasonable cost is an essential
indicated decline in business cap¬
that price deflation is a natural
ingredient for recovery."
ital expenditures and possibly ex¬
concomitant of volume declines of
He went on to say:
the proportions that we are now ports. A reasonable netting out of
the pluses and minuses in such a
"How soon recession is checked
witnessing.
calculation does not support the
and recovery is resumed will be
inflation psychology that is often
No Recovery Yet
influenced by the rapidity with
derived fro<m general observations
which economic corrections and
As a practical matter of invest¬
adaptations are made in factors ment policy, it seems to me that about government deficits.
(7) The current labor negotia¬
beyond the province of Federal there is some logic in waiting a bit

time

Continued from page

Outlook for Our Economy
market's capitalization of
earnings projections.
For example, the increasing use
of credit during the 1955-57 pe¬
riod of excesses, in the face of
deteriorating financial liquidity,
stock

those

Thursday, April 17, 1958

(1764)

finally became one of
of slackening demand

the causes

for goods
and services—which phenomenon
we are now calling recession. The
excessive use of credit at that
earlier time was certainly a cause
of rising interest rates. Now, how¬
we

ever,

interested in

are

credit conditions of
the
slump in the demand for
goods, services and credit.
the effects on

emphasizing this illustra¬

effect sequence
it will promote
an understanding of the fact that
business
prospects will be in¬
fluenced strongly by the status of
the
blend
of cause and effect
forces that may be operating at
any given time.
The money and credit factor is
a
vital ingredient of this blend
and it is no longer retarding busi¬
ness activity as it was a year ago.
There are now plenty of evidences
of cause and

tion

with the hope that

seems

these

that

ob¬

out that an

understanding of them

September would have en¬
couraged analysts to recommend
strongly the purchase of U. S.
Government bonds to their clients
last'

capital gains on a speculative
At any rate, such a recom¬
mendation proved to be a happy
solution for the problems of many
of
our
investment
management

elements

that

the money

most

opinion,

tions

not

are

directly in

and credit category. In

the

the condi¬

non-monetary
have

enough

substantiate

Detroit

the

hind

must

area

be¬

because the

operating rate
reported to have been reduced

is
to

about

ever,

10%

capacity.

not inclined

that

latter

investment policies over
12 months as it

did over

the next
the past

These forces will also affect

year.

could

nomic

the

return

forces

that

blend

the eco¬
making up

now

mentioned

are

cause

and

effect

today. The credit situa¬
tion has changed in the past seven

sequences

eight months from bearish to
Throughout most of the

bullish.

postwar period the ratio of money

supply to the economy's need for
money has been in a major down¬
ward trend.

That important trend

even

This

not

orders,

between

and

inven-

;

tion of

mind

here

be found

the

four

You will

five months.

argued that steel

call

that

was

being chewed

fabricators

was

steel

result,

was

by the metal

rate that

excess

re¬

was

production. As a
broadly concluded

immediate threat

current

slump

important

an
so

increase in the

steel

operating rate. What is ac¬
tually happening, however, is that
metal fabricating activity is head¬
ing down toward the metal pro¬
duction rate instead of vice versa,

clear that the

the

result

Summarizes

wage-price policies which priced
good and services^—including the
services

this would force

Without

Outlook

going through all of the

The

share.

affected

adversely

practical demonstra¬
the point! that we have in

Perhaps

higher labor costs?

matter when it is

—

the

out of the

market.

Experience of the past 12 months

determinants is favorable.

However,
siderable

there

evidence

those other determinants of
mon

siock

values

are

con¬

many

not

com¬

favor¬

able.

This whole matter of balancing

out

market.

the

That

mid-year.

the

The

main

of the drop

cause

the

must

come

reason

end.

ulation

and

the

standard

1953.

•

Mortgage bonds outstanding at
end of the year totaled $35.6

the

compared

with $35.8
preceding

million at the end of the

At the end of 1957, N. & W.
equipment trust
certificates outstanding, compared
with none at the end of the four

had $34.4 million

previous years. For some time the
road had been following a policy
buying its equipment for cash

through the issuance

than

debt.

Capital expenditures of Norfolk
last

Western

year

aggregated

caused by $70.1 million, largely made up for
the purchase of 120 diesel locomo¬
sharply reduced bituminous coal
tives and the acquisition of 4,135
shipments. The principal drop in
soft coal has been of metallurgical 'freight cars. Of the total new cars,
cars
were
built
in the
coal for the steel industry and also 4,082
Roanoke Shops.
reduced movement of export coal.
carloadings

has

the

been

industry prob¬

steel

continue

levels
pickup in the
at

low

soft

Stocks

ratio.

operating
coal

abroad

are

reported

total freight handled,
measured by revenue ton miles,
rose
3.8%.
Income from
all
Last year,

(4) While there is not the
why infla¬ slightest doubt in our mind that
tionary trends—sooner or later— long term growth trends in pop¬

fundamental

the

that the economy has priced itself

• very

that

has established

preceding years, and
share in both 1954 and

two

the

$3.50

000

there is some

sible/it appears

rather

loadings totaled 273,cars
against 372,000 cars in
like period of 1957.

steel

business
briefly as pos¬
to us that:

with

of this year,

until

diag¬

year.

year

sharply.

nosis of the prospects for

our

Dividends per
amounted to $4 as compared
$3.75 a share paid in each

freight traffic declined
In
the
week
ended
March 29,
1958, revenue freight
carloadings amounted to 21,462
cars as compared with 31,971 cars
in the like 1957 week, a decline
of 32.9%. For the first 13 weeks

this

will

figure for

the preceding year.

million

for

use

However, in the first quarter of

ably

which

the

of the railroads

majority
country.

the

Coal

clues

at
fallacy of the
(1) The rate of business activity high levels, with
some
pickup
intermedite period.
An enlarged theory that higher labor costs can in the second quarter is probably in production over there.
This
credit base, coming at a time when be offset by rising prices if we going to average out at something
would indicate that export ship¬
the business structure
does not will only continue to raise the less than the first quarter.
ments will continue at low levels.
want to utilize it via bank loans wage
of the favored classes of
(2) For that reason, business One indication, outside carload¬
tends
to be a stimulant to the labor. The glaring error in this
earnings in the second quarter are ings, of the drop in European
demand
side
of
the
securities theory is to be found in the fact
probably going to be somewhat demand was the return of a coal
the
increased
purchasing worse than those of the first ship to the Federal Maritime Ad¬
equation. If banks cannot use the that
increased credit base for lending, power gained by union pressures
ministration
by
American Coal
quarter.
then they will buy securities, pre¬ cannot offset the loss of unit pur¬
(3) We do not find in our an¬ Shipping Co., jointly owned by
dominantly U. S. Goxernment se¬ chasing power of all of the other alysis of the fundamental eco¬ the coal railroads, coal producer?
curities.
The seller of the Gov¬ groups that suffer by reason of the
and
the
United
Mine
Workers
nomic forces enough favorable
ernment securities to the banks higher prices.
substance to support the rather Union. There are reports of some
might be inclined to utilize his
The net effect of the wage-price
widely held view that the right demand for coal from Spain and
funds for the purchase of some trends
obviously has been a net bank of the current recession val¬ Northern Italy, but this cannot
other kind of security, if his anal¬ loss in the demand for
goods and ley will be coming prominently make up for the drop in the other
ysis of the other security value services. That is why we now say into view some time after the markets.
has been reversed, at least for the

welfare.

economic

the

share above the record

final months of last year as were

activity, stated

of workers

Railway in

deteriorating.

consumption in

becomes

dictate

records of revenues,

new

lories and unfilled orders are still

satisfactory volume at the current
higher
levels,
especially
price
an

(Any¬

earnings per com¬
freight tonnage
handled
also
set
a
new
high
record. The road's earnings were

production at the 145 FRB
index level into consumption at

when there is

time.

Western

mon

that the fabricators would have to
projections of the tthe price levels of last autumn, by
what line of logic can we hope to
enlarge their purchase of steel and
•earnings of individual companies. move

Let

the present

body that emphasizes the observa¬
tions that I have made on the po¬

net income and

not continue to

into

blend

Norfolk & Western Railway
Norfolk

sales, between inventories and

move

goods

presence

inventories

business

the accuracy of

Today's Economic Forces

likely

the

1957 set

happen to the wage-price situa¬

tion. If

are

dominant

How¬

gaining. We have seen a decline opinions that have been expressed
of about 12% in unit production on the steel situation in the last

determination of

forces con¬

and
that these
still
determining the
characteristics
of the

negative

forces

industry

preponderance

the

that

non-monetary

to inter¬

early recovery in busi¬
activity.
In
spite of the

ness

sion and the initiation of recovery

likely to make as much practical

are

large dollar decline in inventories,

changing blend of the cause and in the
past eight months, but we
effect
economic forces
is very
still do not know what is going
difference in the

same

ensures an

continuous analysis of the

the

tinues

that will be of assistance in one's

that

opinion
of

being a raging bull.)
time, it is also my

up as

the

does
my
organization go
completely with the idea
the admittedly sharp dollar

decline

termination of the reces¬

that the

Nor

along

new

Martin

set

ish.

Non-Monetary Area
Chairman

activity, earn¬

ings, dividends and stock prices.
(If anyone takes that observation
out of
context, it will certainly

pret that state of affairs as bull¬

■;.)■■■'./ would be influenced
by business
I merely cite that fact for the
pricing policies and by wage bar¬
purpose of emphasizing my view
-iv:,!

clients.

find such evidence

not

strong influence on the de¬
velopment of similar major

trends for business

in¬ sition of some of these non-mone¬
ab¬ tary negatives will probably set
me up as a raging bear.)
sence of inflationary potentialities.
I
do
I could itemize numerous other
expect that through the
economic forces and other shad¬ sheer lapse of time the non-mone¬
ings and interpretations of the tary negatives will gradually be¬
items
that I have already pre¬ come less powerful in our blend
sented.
I am sorry that there is and the stimulating effects of bank
credit expansion will increase in
not enough time to do that. I do
hope, however, that I have raised strength to the point of domina¬
some thought-provoking
points ting the balance of forces which
The

fluenced

prediction of recovery. It can be
argued with very logical statisti¬
cal precision that a major portion
of the decline in steel production

area

negative impli¬

cations.

basis.

ness

willing to state bluntly my

very

a wage-price policy
that will influence busi¬
prospects and credit policies.

the ratios between inventories and

continue

for

opinion that bank credit expan¬
sion
has, within the past few
months, started a major favorable
trend that ultimately will have a

pattern

deterioration is slowing down, but

strong

automobile

the

has been to encourage
acceptance of my blend idea.

my purpose

well set

may

t i ces and productive effi¬ nomic work of my organization
ciency; in wage bargaining; and in suggests that the downward trend
various
financing arrangements; of business activity and employ¬
and in the incentives of customers ment is still in effect. There are
to buy."
some
clues that the speed of the
p r ac

relation to the

tions

policy—that is to say, in longer for the answers to some of
business pricing policies, selling these basic questions.
The eco¬

Reserve

increasing

has been to prove an ex¬
tremely bullish conviction or an
extremely bearish one.
In fact,

purpose

availability of
servations are the very essence of
demand the blend of favorable and un¬
therefor. Mortgage credit is eas¬
favorable elements at the moment.
ing visibly and short term bank
They
portray
the
pattern
of
credit is in abundant supply. The
thinking that I am trying to en¬
business analyst will recognize the
courage in this paper in the in¬
significance of the fact that the
terests of continuing an orderly
position of this particular eco¬ discussion of the business forces
nomic force has changed from a
as each of us follows the develop¬
brake on business activity to a
ments from week to week.
potential accelerating position—
Within
that organized pattern
all within a comparatively short
of appraising the favorable and
period of six of eight months.
unfavorable
elements.
I
would
Perhaps it will encourage inter¬
like to switch from the monetary
est in
a
continuing analysis of
factor
over
to
other
economic
these economic forces if I point
of

credit

analysis of the current interesting
period.
.y- •
My
experience
in
discussing
business conditions prompts me to
end with my general conclusions
stated as clearly as possible.
Sometimes the reports of my
views
make
it appear that my

sources

was

$265

million

com¬

million in 1956.
share of common

pared with $254

This continued uncertainty about

living assure recovery of business

Earnings

wage-price policies is one of the
reasons
why any forecast of the

activity, of employment, and of
earnings to new high record

stock
an

per

amounted

$7.75

increase of 36 cents

eh*re

common

Taxes

paid

per

common

higher than the net income
per share. Last year taxes totaled
the equivalent of $8.44 a share as
compared with $8.07 in 1956.
Norfolk & Western has an out¬
were

of covering its
Times fixed inter¬
charges earned was 23.65

standing

record

fixed charges.

est

in 1956; 27.97 in
1954; and 20.60 in

1955;

30.68
19.24 in

1953.

The road

against

is endeavoring to

broaden its traffic base by

attract¬

industries and plants to
its territory. It has been somewhat
successful in this respect as might
be noted from a gain of 10% in
ing

new

miscellaneous freight revenues.

Joins First California
(Special to The Financial Chronicle)

ANGELES, Cal.—Emerald
has joined the staff of
California Company Incor¬

LOS
L.

Olson

First

porated, 647 South Spring Street,
members

the

Stock

Exchange.

ously

with

Co.

Pacific

Bateman.

was

Coast

previ¬

Eichler

Volume 187

Number 5734

The Commercial and Financial Chronicle

...

<fl763y

Proposals Made by Elliott V. Bell and New York
"Times" Hit by Waller E. Spahr
What could be

"accomplished legally that cannot he accomplished legally" now, Dr. Spahr asks in wondering why vague
proposals implying economic dictatorship are made by "Busi¬

The

President, with his Council

Economic

tor

and

that

mean?

Bell

compelled
the

this

President

un-

abdicate

and

Constitutional

functions

its

and

"Either

the

amended

would

have

the

make
as

legal such an
that recommended

by Mr. Bell,

the pertinent pro¬

have

Bell

the
be

does

ment

Constitution would

ignored.

the

left

reader

Elliott

tive.

Bell

Mr.

the

dark

The

the
to

less

New

subtle

vague

affairs.

The

gov¬

human

agitation

for

such

dictatorship

apparently is under
way in this country; and it seems
to be highly organized and well
financed. The

'me-too'

adding

are

usual

their

With

manner.

dictatorship
mistakes

propound¬
voices in

made
be

can

justified
and

effective,

past
and
subservient

covered

through

controlled

such

radio,

press,

and

television.
and by New York

Cites Crane Brinton

"Times," asserts

distinguished monetary. economist

"An irredeemable

"The

frequency

with

which

currency

can

be, and

profitable basis to-

;

nationwide

basis

rate

few

weeks

fine California weather

your

could

result

mobile

inventory

picture.

most

industry is

with

one

growth

metal

producers.

the

government

past

mathematics
hold off for

million.

new

the

year

estimated

was

taking approximately one-third of
tQtal output for military stock
piling. The previous inadequacy
of supply was a severe restriction
such

mobile

industries

the

auto¬

Halsey, Stuart Group

newsletter

Offers

pounds

that

defense against economic

omy as a

written

are

Executive

by Dr. Spahr
recession, apparently regardless of
and published
by Economists' Na¬
the provisions of the U. S. Con¬
tional
Committee
on
Monetary
policy, New York City, is a sequel stitution, could easily raise the
question
as
to
whether
certain
to a similarly
searching inquiry
statements, made by Crane Brin¬
made
in
last
month's
issue
of
ton on 'The machinery of dicta¬
"Monetary Notes" of Dr. Arthur
torship,' in his book, The Anatomy
Burns' views on this
subject.
of Revolution (Prentice-Hall, Inc.,
Addressing himself first to Mr. New
York, 1952), could possibly
Bell, Dr. Spahr states "he com¬
be pertinent to this state of af¬
plains because no one is 'com¬
fairs.
Said he, page 189, revised
mander in chief of our economic
edition:
'The dictatorship of the
defenses'; 'we ought,' he says,
extremists is embodied
.

to have some

ment

for

that

authority in

would

govern¬

economic

Secretary Anderson
basis

'should

established

on a formal basis and
clothed with
the necessary
authority'; 'there is

surely need

for

direction

of*

our

recession

unified

defense

against

essential

part
total national defense.'

our

been

the

national

characteristic

few persons

capital.

form

The

this

su¬

authority is that of

preme

of mittee.

The

government

scrutiny. The Con¬
stitution provides that the Presi¬
dent

'shall
of

Chief

Army and Navy of

the

Ccmmander-in-

United

States, and • of the
militia of the several States when
called into the actual service of
the United
States'; it does not

Dr.

Spahr

quotes the Feb. 26,
editorial of the New York

1958,

Times and then points out that

"vague

the

quoted material is,
is,
what
does
it
It„ says that the Federal
authorize him to be 'commander
Reserve, the Treasury, and the
in chief of our economic
defenses,' Council bf Economic Advisers are
and

contention

that

defense

against economic recession

is 'an
essential part of our total national
defense' does not alter this fact.

"The

Bell

contention

ought to have

some

that

authority in

the

question

mean?

the

key agencies in directing the

nation's efforts to combat inflation

deflation.

The

Constitutional

'shall
the

from

time

Congress

state of the

time

give to

information

the

Union, and recommend

provided

Council

the

President

Economic

although

Mr.
this Council.

Bell

with

mention

are

"The
say

editorial

that

way

there

than

then

must

have

goes

"What

could

National

Eco¬

by
sale

competitive
(April 16) on a bid of

from

proceeds
will

the

used

that

Congress

"And

why

the

Jan. 15, 1959, and for other

corporate purposes. The com¬
pany's construction program is ex¬
pected

cost

estimated $19,-

done?

The new bonds will be redeem¬
able at general redemption prices

accrued interest in each

200

Mississippi Power & Light Co.,
of the four system operating

one

companies of Middle South Utili¬
ties, Inc., supplies electric service
in

communities

rural

and

areas

generally in the western half of
the State of Mississippi.

operates

pany

counties

tric

service

The

the

Mississippi and elec¬
is supplied to over
commu¬

Inventory

ing

Council
Does
lie

his

not

Economic

the

Mr.

possible
Bell's

Advisers?

distinction

words

proposed Council
'clothed with the

should

necessary

that
be
au¬

cans

Build-up

Wane

build¬

were

at a $2 billion annual rate
in 1957 generally are now being
reduced at an $8 billion annual
rate to a point where replace¬
will

industries.

the

and

bility

provide
market

take

political
there is
a

tax

place

front
a

cut

major

are

which

pos-

could

economic

and

strength is in

total

net

and

income

dustries

the

The Stock Market's Position

position

key words in the quoted
paragraph
of
the
editorial
are
'direct'

idea

'reconcile';

advanced

should
who

and

reconcile

direct.

This

that

its

acts

and

the

Congress
to

those

proposal, when
essence,

the
Dow

should

policy

con¬

of pur¬

companies and

which

ysis indicates

investment

in¬

anal¬

likely to show

are

the soundest growth.

Summing
other

and

up, Federal Reserve
Federal
Government

policies* should provide a strong
if somewhat delayed stimulus to
business.
Money will be made
so

easy as

to start

another inflation spiral.

Defense,
housing, highway, utility, research
expend itures are on the way up.
Institutional

funds

and

are

vest

huge

investors, pension

insurance

companies,

constantly seeking to in¬
sums every

The market is

day.

technically quite

strong and stock prices

appear

bles

facing us.;
distinct possibil¬

ity and could be

major economic

rise

could

and

take

stock

place

Fd rather be

ties' than

buyer of securi-

seller at this point.

E. F. Hutton Adds
LOS

Dealer-Broker Addressing Service

ANGELES, Calif.—Earl G.

Burr, Jr.,
E.

now

Hutton

connected with

Company,
Spring Street.

South

623

lea,"
bank

SAN

than

Sheedy

has

been

Montgomery

Stock

Street,

you

added

States

can

obtain

elsewhere

and

Cities

Addressing charge $7.00 per thousand.

Co.,

Special N. A. 8 D list (main offices only) arranged
Just as they appeared In "Security Dealers."
Cost
for addressing NASD. List
$8 00 per thousand

members

We can

Exchanges.

small

also supply the list
additional charge

gummed roll labels

falls

Larkin Inv. Branch
CAMDEN, Ark.—Larkin Invest¬
ment Company has opened a
branch

office

206

Jackson

Street under the direction of Pearl
B. McGill.

Herbert D. Seibert &

Co., Inc.

Publisners of "Security Dealers of North

Park Place

—

metal stencil for every firm and <
this publication,
which puts us In to offer you a more up-to-the-minute list a

There are approximately 9,000 names in the United
States and 900 in Canada, all arranged alphabetically

FRANCISCO, Cal.—Clay¬

to the staff of Dean Witter &

have

listed

position

(Special to The Financial Chronicle)

ton

publishers of "Security Dealers of North Amerwe

the fairly near future,

$4,537,000.

(Special to The Financial Chronicle)

have discounted much of the trou¬

market

the

nor

all

the

selective

chases

exchange,

bought

and market stimulus

1957, the company market appears quite strong. In
operating revenues of the face of a deluge of bad corpo-

$29,879,000

averages.

tinue

For the year

had

make

that

Jones

that neither you

even

A tax cut is

stock market itself.

technical

stocks

election

distinct

some¬

bought the entire

ever

list of issues

stimulus.

Our final item of

the

I have

etc.,

that this is

reminded
year

have

shorts,

cover

downside.

easier, but not

which

ment

the

have

to¬

got

produce

"The

thority'? And what, precisely, does stripped down to its

The

areas.

present

recently

deal

number of oil
made of aluminum.

of the New York and Pacific Coast

his

nor

today to meet the can
requirements
for
this
country
alone. As you know, one of the
major oil companies and an alum¬
company

have

I would stress

enough aluminum in the

Dean Witter Adds

Council,' recommended by does he prefer not to state how
Bell, accomplish legally that he would recommend that it be
cannot be
accomplished legally by done?
and

com¬

nomic

President

industry to turn to aluminum
making of cans, you would

gether

Whether

probably quickly when
In any event
they provide a cushion of buyers,
which should serve to keep the
market from getting out of hand

for the

not find

setback.

day and

Were the

car.

consider

the market turns up.

seen

pounds per

professional

these sellers

potential use,
in the Cad¬
illac Eldorado and the Chrysler
Imperial, both of which use close
can

factor

business

amateur

car

car.

technical

the

eral

the

many

case.

Mr.
the

per

buy¬

amateur shorts—attracted
late, perhaps too late, by the,,gen-,

industry has had
increase

renewal of

short selling appears to have been

supply,

pounds per

can

Inventories

300,000 for 1958.

Executive?

the

large

ac¬

indication

however,

due

how

vagueness?

state

the

recon¬

about

inum

not

mean

sale

for the construction and

company

expansion of facilities, for the
prepayment of promissory notes

ciling Congressional action in such
cases

automobile

3-to-5-pound

note

done by

free world

bonds

better

now

the

inadequacy

some'

tion to Executive direction, is the
author of that proposal unable to

Sees No Net Gain

Net

the

execute

Congress should 'reconcile' its

...

won

nities and rural

Government

Advisors, the dictates of

does

was

ministrative divisions of the Fed¬

only with the Reserve
to their consideration such meas¬
Board and Treasury—and so on.
ures as he shall
judge necessary What does reconciling Congres¬
and expedient,' and that
Congress sional action mean, if .it does not
has

group

issue

173,000 customers in 507

government 'that would
be
re¬
and administer laws of Congress
sponsible for thinking in terms of within the limits of the Constitu¬
overall economic policy' seems to tion.
overlook the fact tnat the Consti¬
tution provides that the President

the

fact is that the Executive and Ad¬
eral

spite

been

present short position of
3,900,000 shares.
Much of
this

interest, to yield 3.98%.
of

ranging from 106.66% to par, and
at special redemption prices re¬
ceding from 102.53% to par, plus

Turns to New York "Times"

many

has

long range point of view.

accrued
Award

the

[French and Russian! is
dictatorship in commission.'"

careful

serve

com¬

Terror

"The bones of this skeleton de¬

the

have

'democratically' elected, and

concentrated

espe¬

using

There

vestment research staffs who take

per year and now uses an average

secondary authorities,
infor¬
cially -if these authorities

Inc.

Co.

from

underwriting syn¬
dicate
which
is
offering
today
(April 17) an issue of $15,000,000
Mississippi Power & Light Co.
first mortgage bonds, 4Vs% series
due April 1, 1988, at 102.526% and

101.8199%.

mal

Light Co. Bds.

Stuart

yesterday

policy'; 'I have suggested societies.
Notably the making
National Economic Council
of final decisions in a wide range
under the
Chairmanship of the of matters is taken from local
President'; such a body set up by and
.

Halsey,

back

simple—if they
day they have $12

are
a

ing by these institutions—shrewd
professional buyers with fine in¬

been interested in

aluminum, than
it
might otherwise have used. Des-

manager of an

ready

Power &

mental

forms
as
a
rough-andcentralization.
In details
overall these
forms vary in our different

responsible

thinking in terms

in govern¬

Mississippi l

weeks

the

making drums,
cylinders, blocks, pistons, doors,
wheels and many other parts of
aluminum.
Having no assurance
that a supply could be
maintained,
this industry in particular held

recommendations

remarkably

holding off; however, these funds
are constantly
seeking sound in¬
vestments, at a price. In recent

industry which might have

ordinarily is, an evil in¬
being made strument; and one of the most evil
Committee, or aspects of its use is now intruding
posely designed to add "Executive Council, or Commission, be formed itself on our national
scene."
Dictatorship" to present constitu¬ under the Chairmanship of the
tional conducted modus
President to integrate our mone¬
operandi.
tary and fiscal policies and pro¬
This analysis, contained in
April
cedures or to manage our econ¬
"Monetary Notes," a monthly
Walter E.
Spahr who wonders
whether proposals made are
pur¬

Institutional investors, as you
have been told, so often, have
$6
million a day to invest.
The

light

continually finding

'Until

uses.

This

has held in

any reasonably favorable news.

pattern.

There are only four major com¬
panies in the industry, all highly

efficient

market

qarrow range and seems more in¬
clined to go up than down given,

in two years. The

assured

and

the first quarter results
will make pretty poor reading, the

Aluminum Industry. Aluminum
have suffered an overall

aluminum

cuts

tion that

stocks

decline of 55%

dividend

news,

commissions, lower earnings, lower
qperating rates and the expecta¬

considerable change in the auto¬

com¬

Automobiles.

events

management

erating
day.

appears

Dictatorship is

effec¬

Stock Market Outlook

York

sequence

Money and the

Arthur

in behalf of what

ernment

Continued from page 16

Monetary
Bell, and

"From irredeemable currency to

the

such

made

„

staff,

Elliott

country.

that

Executive Dictatorship in
monetary and fiscal affairs in this

amend¬

Constitution,
in

proposed

recommendation
Walter E. Spahr

Since

not recommend

how

mon

Constitution

arrangement
visions

editorial

Executive

States

(described

ways,
to
be

re¬

sponsibilities.
United

the

Triumvirate

March),

seem

directed

Times provide samples of the agi¬
tation which is being carried
oil,

already mean Executive Dictatorship
legally do that called for by Edi- der which Congress would
Elliott

Burns

Advisers,

Publisher

limits

More Than

"The

would

the

Constitution.

Notes,

Week's" editor and New York "Times'" editorial.

ness

outside

0^'

REctor 2-9570

—

America"

New

York City

Continued jrom

Two With Morrison
(Special to The Financial

NEWTON,

kwh.

Douglas
Smither-

C. —W.

connected
with
Co.,
Northwestern

Joins Anderson,

Randolph

(Special to The Financial Chronicle)

Randolph & Co., Inc.,
Building. He was

A. Johnson

Connell,

Robert

with

formerly

in the year when

later

they expect

reasonably

en¬

Inp-

the

awards for heavy civil engineering construction
last week, they exceeded those of the similar

Although

year

this year was 8% below that of the
total dollar volume of construction

due

15 weeks of

comparable 1957 period. The
put in

place

rose

seasonally

Minn.—James

MINNEAPOLIS,

have

been

added

the staff of

John G. Kinnard & Company, 80
South Eighth Street.

Passenger Car Output "Advanced 30.4% the Past Week
As

•

Major ; Plants Resinned Operations
f

Automotive production "for the week ended April 11, 1958,
according to "Ward's Automotive Reports," rose 30.4% as most
of Ford, General Motors and Chrysler plants resumed operation
following a one-week shutdown for inventory adjustment.
•" v

tory adjustment, "Ward's Automotive Reports," stated.
This trade weekly counted 83,897 passenger car assemblies

compared with 64,318 in the prior period when 18

plants were closed to balance dealer stocks with sales. Output in
the same week last year was 126,195 cars.
Truck production a week ago held steady, being estimated

Last week's

I
!
V

output;totaled 83,897 units and compared with
64,318 (revised) in the previous week. The past week's production
total of cars and trucks amounted to 101,032 units, or ah increase
of 19,826 units above that of the previous week's output, states

"Ward's."

makers. They included five Ford division units - in California, Tennessee, Pennsylvania and Kentucky,! plus
Studebaker-Packard in Indiana, De Soto in Michigan and -the
Buick-Oldsmobile-Pontiac plant in California.
The statistical agency said the auto industry is operating
under its planned level for April and is pointing towards 300,000 v
to 325,000 completions in the month against 357,049 in March.
American Motors, "Ward's" noted, is the surprise package" !!
of the industry this year.
In March it was running at 4.9% of r'1
entire United States production, and since Jan. 1 has produced
>
more
cars
per assembly plant than Chevrolet or Ford or any!;:
other producer.
Lincoln scheduled six-day operations the past
week, "Ward's" added.

car

•

"'*■

*-•

above that 'of the previous week by
while truck output advanced by 247 vehicles "during
In the corresponding week last, year 126,194 cars and

Last week's output rose

among car

19,579

Texas,

M/tti cancer

516,225 "

corresponding week in 1956.

by "Ward's" at 17,135 compared with 16,888 in the previous week.
A year ago, output was 22,761.
./
"Ward's" counted eight plant closedowns for the past week!

fff?|'ifechlM

1958, totaled

April 5,

ended

decrease of .127,867 cars or 19.9% below the corresponding
week, and a decrease of 169,153 cars, or 24.7% below the

1957

production in the United States • last ? week:

' Cr.

cars, a

jumped 30.4% as most of Ford, General Motors and Chrysler plants
operation following a one-week shutdown lor inven¬

for last week

c<%! fields,\the Association of American Rail- •*:

the 'week

Loadings for

resumed

D. Enstad and Albert Klobuchar

cars

roads reports.

$3,400,000,000 in March boosting the total for the first quarter
of this year slightly over the similar level a year ago, the United
States Department of Commerce and Labor reported.
Passenger car

April 5, 1958,

3.0%. below the preceding week principally,
the observance, on April 1 of the adoption of the 8-hour

15,947

day holiday in the

Two With Kinnard
(Special to The Financial Chronicle)

Loadings of revenue.freight for the week ended
were

by 3%, according to the "Engineering News Rec¬

The cumulative total of contracts for the first

ord."

April 14,

Loadings Declined 3.0% Last Week Due Mainly to
"Eight-Hour Day Holiday" in the Coal Fields

Car

contracts fell 41%
week last

DENVER, Colo. — Theodore M.
Johnson has joined the staff of
Anderson,

until

now

Thursday, April 17, 1958

./:!;

' •;

-/.

1956.

couraging pickup.

389,000,000 kwh. above that of the week ended

creased

Industry

now

are

Morrison

Bank Building.

The State of Trade and

3.3%

below that of the previous week, and 388,000,000
below that of the comparable 1957 week, but in¬

kwh.

000,000

1958, output decreased by 19,-

week ended April 12,

For the

page

Chronicle)

Roberts, Jr. and Peter F.
man

Financial Chronicle

The Commercial and

11766)

the

cars,

week.

:
>

22,761 trucks were assembled;
^
;? ' ;
;;
Last week the agency reported there were 17,135 trucks made
in the United States. This'compared with 16,888 in the previous
.

22,761 a year ago.V
,
Canadian output last week was

week and

placed at 7,405 cars and 1,285
previous week Dominion plants built 5,742 cars and
and for the comparable 1957 week 9,478 cars and T,936

;

In the

trucks.

922 trucks

trucks.

Lumber

-V

f'S.-v

' V

1
I

Output in

Shipments Increased -5.1% 'Above

Steel Output Scheduled

to Drop

to 47.5% of !

Week Ended

Ingot Capacity This Week
^

were 75.1%
above
National Lumber Trade Barometer.

April

Steelworks

operations struck a new low in the current; reces-*!
sion last week, with mills working at 48% of capacity; "Steel" magazine reported on Monday last. This is a half point off the >
previous week's pace and marks the third consecutive,; week! of
decline. Production was about 1,294,000 net tons of steel for ingots ;
and castings.
;
The metalworking journal pointed out that operations usually
are expanding at this time of year.
It said the failure of any show
of strength in the steel market has led producers to shelve their
hopes for substantial improvement until the fourth quarter. Mod-/*
est upturns in late April and May are probable, it added.
This poses a problem to steelmakers when the higher labor
cost becomes effective on July 1. This trade weekly asks the question, "how can they raise prices when mill operation- is*' low and
demand is slack?" The downward price movement in aluminum
is also described as discouraging to price increases in steel.
Major consumers' demand continues soft with warehouses
loaded, automotive buying almost nil and construction failing to
take up the slack.
:
....
,-r.
Production in Detroit last week at 11.5% of capacity was off
11 points from the previous week to make the district the lowest
operation-wise in the nation. The reason was the shutting down
of Great Lakes Steel Corp., subsidiary of National Steel Corp.
"Steel's" price composite on the prime grade of steelmaking
scrap slipped another 16 cents, now standing at $34.17 a gross ton.
'
The publication said that slow sales are prompting steelmakers
to ship farther and pay more shipping costs in quest of new

this child of eight. But
She was too weak to speak
«.

•

were

( her

eyes:

uCarit

well again, Doctor?"

It's

for

plain to
you

terribly hard
doctor who

enough

•

see in
mak.9

tragedy

sees

to watch a child

fade from the sunlight of
a

victim of

even

fife—

cancer.

We had succeeded in pro¬

longing her life by many months
—thanks to recent advances in
the treatment of leukemia.

But that's not enough! Ca li¬

cer

day

disease that ranks tothe Number 1 disease-

killer of children. We

can

new

•

must,.. find ways to

lit, and win

|
■

battle

Let's give...

boldly,

.eliminate this

they

were

the highest

far this

month.

—-

•

enemy

year

;

250,000 Americans this
alone.

Send
€/0

your

Burdened with

excessive

The

American

operating

capacity

rate

for

1,283,000

gift to CANCER;

local post office.

•

Held

April

352 in

10 from

the preceding week,

im the week
Dun & Brad-; ~

Liabilities

■■■■■■■■■*>'«?*:.;

$5,000.or more were
as^ against
306, in. the

All of the week's decline

was

concentrated in retailing, down

and commercial service, .down to 33 from 37,
Meanwhile, manufacturing casualties edged up to 59 from 58,
wholesaling to 36 from 30 and construction to 55 from 51. More
businesses failed than last year iii all industry and trade groups
from

159

176,

"except service which held even with 1957.

;

geographic regions reported mild de¬
clines. The toll in the Pacific States dipped to 78 from 79, while
East North Central failures fell to 47 from 65. In contrast, casual¬
Six

nine major

of the

ties increased in the Middle Atlantic States to 110 from 101; in
the South Atlantic to 38 from 24 and in New England to 28 from
23.

1957

with increases from

Year-to-year trends' Were mixed,

prevailing in five areas, declines in four and no change in one.
Failures rose most sharply 'from last year's level in the New Eng¬

land, South Atlantic and West South Central

States.

flat-rolled

inventory,

one

auto¬

announced

beginning

week

the

Institute

will

On
The
'

April

Steel

weekly

tons of ingot and steel for castings
production

for

(based

compared

with

Output

for

the

week

beginning

April

14,

1958

week

was

1,417,000 tons.

month ago the rate was

raw

CANCER

for

..."
flour,

were

wheat, barley, rye,

•

of the price per pound of
foodstuffs and meats in general use and its chief function

Wholesale

general trend of food prices at the wholesale level.

Commodity Price Index Extended Previous

Week's
-

Rises

weekly production

and rubber.

and lead.

These offset declines in livestock, steel, scrap

The Dun & Bradstreet daily wholesale

index stood at 281.43

1947-1949.

Slightly in Latest Week

The general commodity price level remained close to that of a
week earlier with price increases registered in some grains, flour,
..

sugar
average

last" week

pro¬

placed at 2,313,000 tons, or 144.0%.
on

price

..I---

is to show the

A year ago, the actual weekly production

*Index of production is based

price index rose 1.8%

high for the year of $6.72 on

The index represents the sum total

equal

*88.2% and

oats.

actual

before.
a

a new

potatoes, eggs, corn, milk, lai'd, bellies, prunes and cottonseed oil.
Lower in price were butter, "sugar, coffee, cocoa, hogs, hams and

average

to reach

...

Higher

about 47.5% of the utilization of the Jan. 1, 1958 annual capacity
of 140,742,570 net tons compared with actual production of 48.5%

the

AMERICAN

1947-1949)

April 8th Last

& Bradstreet wholesale food

year ago.

average

14,

High

to New

April 8. This is the highest level since Feb. 8, 1955 when the figure
was
$0.77. Today's index is 8.6% higher than the S6.I9 of one

the

that

Dun

from last week's $6.60

*79.9% of steel
1958, equivalent to

and

Food Price Index Rebounded

Wholesale

rate of *81.4% of capacity, and 1,308,000 tons a week ago).

duction

commodity price

April 7, compared with 279,73 the prior

week and 287.33 a year ago.

SOCIETY %

involved in 504 of the
week's casualties
previous week and 265
last year.
Small failures under $5,000, declined to 38 from 46
a week ago and fell short' of the 43 of this size in the similar week
of 1957. For 42 of the businesses failing during the week, liabilities
exceeded $100,000, as compared with 40 in the preceding week.
•

companies

Iron

steel

For the like week

4.7%: below the previous week and 10,4%. below
v..-.
J

when 313 occurred.

j which will take the lives of more

] than

•

were

street, Inc., reported.'•« Despite this decrease, casualties ran consid¬
erably above the 308 a year ago and the 255 in 1956. Failures also \.
remained 9% higher than in the comparable week of pre-war 1939

for

year

orders

Commercial and industrial failures dipped to 342
ended

ing storage, "Steel" concludes.

and help

mortal

the

Production

orders

Slightly jn Past Week But
Considerably Above 1957 Level

maker is reported ready to sell about 5,000 tons at a price lower
than mills are quoting. The company figures it's cheaper than pay¬

gen-

erously to the American Cancer

Society Crusade

1957 period,

third of

During the first week in April, there was a 30,000 unit reduc¬
tion in auto-truck output. Ford Motor Co.'s steel plant will be
closed for six weeks until May 5, instead of three.

Research, supported by the
American Cancer Society,

striving towards that goal.

the like

new

Business Failures Fell

period

same

the like week in 1957.

are that car sales are on the rise, but automakers
tight rein on production.
During the last 10 days of March, retail deliveries of new cars
averaged 15,500 daily. This was a 19% increase over the middle
third of the month when average daily volume was 13,000 cars.
Although late March sales were down nearly 32% from those of

keeping

In the

over

according

'production,

above production. Unfilled orders amounted to 31%
was 4.7,% below; shipments 4.7% below and

11.2%

of stocks.

Indications

are

any
.

markets.

5, ,1958,

were

| the words

shipments of 487 reporting mills in the week ended

Lumber

April 5,U958

Electric Output Cut Further the Past Week
The

Announcement of

higher than anticipated 1958 crop support

distributed by the electric
light and power industry for the week ended Saturday, April 12,
1958, was estimated at 11,307,000,000 kwh., according to the Edison
Electric Institute. Output held, to its downward trend of recent

price by the Government resulted in slight price increases in corn
and rye last week.
In addition, corn trading was stimulated by
reports that the United States Department of Agriculture would

weeks.

commercial

amount

electric

energy

a plan to allow exports of corn to go through
channels.
Trading in wheat was sluggish and prices

probably approve

Volume

187

Number 5734

The Commercial and

Financial Chronicle

(1767)
*

slipped somewhat.

slightly below

Wheat

tnose of

receipts

week

principal

earlier.

—

markets

dipped

store sales in New

York City for the
weekly period ended April
5, 1958 advanced 19% above that of the like
period last year. In
the preceding
week, March 29, 1958 an increase of 11% was re¬
ported. For the four weeks ended
April 5, 1958, an increase of
8% was registered. For the
period Jan. 1, 1958 to April 5, 1958
an increase of 3% was
registered above that of the corresponding
period in 1957.

Transactions in

soybeans lagged during, the week and prices
remained close to those of the
prior week. Soybeans inspected for
export in the week ended March 28
slightly exceeded those of the
previous week, but were down
noticeably from;the similar period

.last year.:

■•■-•«....*.-■

Although flour prices climbed somewhat, bookings

changed.

Commercial

sales

of;

flour

i48,100,000 bushels in grain equivalent
with 38,300,000 in the same
period last
plentiful.,
• >•<>•■. •'
•■%..'
There

prices

export amounted
to
far this: season, compared
season.
Flour supplies were
i'.'
>
'
-; .,■ +.. -

Continued from page 14

their

inventories, roasters somewhat increased their coffee
'but prices held at week earlier
levels. Coffee
of

year

Wholesalers
"slackened

reported

trading.

slight

Raw

decline

prices

sugar

chases equalled those of the
Steer prices in

were com-

prior week.

those of both

companies

cessive

greater than expected

advance in

the

portant.

New

York

Cotton

Exchange.

week, bringing the total for the
bales.

7,"

Slightly Under
"Although

1957

Pre-Easfer

week

by Dun &

Level

volume

year

ago,

varied

from

+2 to. +6;

Best-sellers

The call

West

North

States —1

for

were

dress

children's

Central

+1
+3%.

+5;

shirts, neckwear

and

earlier.

Spot reports indicate that sales of
were steady
with the prior week,

passenger cars
below a year ago.
stores

fresh meat and

but

were

with

health standards, are well known.

However, several factors on
supply side are not generally
ognized.

over

accessories, dresses
in bookings in

and

rise

minute scattered

centering

primarily

re-orders

jewelry and men's furnishings.

women's

Summer

sportswear

and

occurred, but sales of men's sportswear were
sluggish.
reported a substantial gain from a week
earlier in

; women's Fall sweaters

•

were

ings, draperies
Food buyers

stepped

frozen

baked

meat

foods

and

Another

dairy products
considerable rise

wholesale stocks.

Federal Reserve

was

purchases

while

unchanged
rice

interest

buying

from

in
a

goods,

poultry,
week

appreciably

Board's

ported.
1 %

For the

was

Retail

period Jan.

recorded
trade

country-wide basis

taken from

index

April 5, 1958

decrease

sales

volume in New York
City last week suf¬
fered from inclement weather which reduced
purchases by 10% to
.20% under the level of the corresponding
period in 1957, trade
observers estimated.
Federal

best

The

method

is through personal
by company representa¬
tives.
However, doctors are ex¬
tremely busy and have little time
to give to detail men.
Many, in
contact

fact, instruct their
retaries

limit

and

nurses

the

meetings. The big five
panies have relatively

sec¬

number

six

assured.

the

The

research

dollar

effort

postwar period has been tre¬

mendous and

accelerating. In 1957
industry expenditures of

alone

$127 million
1956

level.

lion

16% above the

were

Federal

expenditures

medical

re¬

of $186 mil¬

35% above the previous

were

year

and 12 times the

Data

are

1945 level.

accumulating rapidly in
Although luck
continues
to
play an' important
these

programs.

role in the

doctor

difficulty

but

easy

Reserve Board's index, department

These

prospect of
in

crease

term;

factors

10%

sales

(2)

factors

that

of
are:

the

(1)

annual in¬

the

over

longer

firm competitive po¬

sition that is

close to

unique; (3)
large portion of the expenditure
provide
future
growth
(re¬
search) is financed by others; (4)
a

the

stockholder's

equity

pro¬

tected from dilution by a high
re-;
turn

capital.

F. T. C. Investigation

others

find

major

new

source

basic

and

pharmaceutical research.
In the
past it has proven a good low cost
source for new products.
(3)
A relatively small
fixed
capital requirement has important
financial

advantages.
The com¬
panies can pay out 50% of earn¬
ings in dividends, provide for a
10

15%

annual

build

and

growth

(Special to The Financial Chronicle! .'

has

sen

become

Dean Witter &
cust Street.

associated

with

Co., 411 South Lo¬

Mr. Nielsen

for¬

was

merly local Manager for Hooker
& Fay and prior thereto was g,
partner in Davidson & Co.
r
I,

factor

cash

to purchase new
companies.
The ad¬
vantage lies in one of the highest

products

VISALIA, Cal.—Glenn H. Niel¬

With Paine, Webber

(Special to The Financial Chronicle)

CHICAGO, 111.—James P. Dolatt;
returns on invested capital in all
has
joined the staff of Paine,
industry. Operating profits before
Webber, Jackson & Curtis, 209
depreciation and interest for the
11 companies were 29% of
gross
assets in 1957. This compares with
18% for 20 leading companies in

South La Salle Street.

can

industries
research

the

Bache Adds to Staff

and

same

(Special to The Financial Chronicle)

written off in the

income

MINNEAPOLIS, Minn.—Joseph

promotion
S.

Ewalt

has

been

added

the

capi¬

staff of Bache & Co., Minneapolis
Grain Exchange Building.

In 1957 sales of the eleven

com¬

statement,
tal

seems

high return

assured.

panies increased 16% which is the
largest gain in the postwar period.
The

DIRECTORY

unusually favorable perform¬

ance

was

the

result

exten¬

sion of

markets, relatively stable
foreign currencies, and a very
high incidence of upper respira¬
tory diseases in the fall of the

STOCK and BOND HOOSES
WWW

Profit margins expanded on
higher level in sales. Conse¬
quently, the rise in net income at
year.

the

sales.

can

seen

in the remark¬

able advances taking place in the
field of virology where scientists
have

made

Whether
!

the

The

warrant ratios
as

access

all

without

additional

dence
-

period.

high

Whether the full gap in priceearnings ratios between the
groups will be closed during the
product development. The several
current year is difficult to fore¬
firms that attempted to enter the
cast. It will depend partly,on the
field in the early postwar years
conclusions, recommendations, and
have found this to be the
unhappy
outgrowth of the F. T. C. investi¬
case.
gation of the antibiotics industry
(2) The industry is spared the
which is currently scheduled for
expense of a large share of the re¬
publication in the latter part of
search effort.
Much of the basic
April. It will also depend on sec¬
work
is
performed by Philan¬
ond half sales and earnings com¬
thropic organizations and the Fed¬
parisons. In any event the pros¬
eral
Government.
By nature
basic research is uneconomic but pects for at least modest appreci¬
ation in drug stocks before the
a definite
requirement for the ad¬
end of 1958 appear favorable.
vancement of pharmaceutical re¬
search over the longer term. The
cost saving to the industry is very
G. H. Nielsen With
substantial.
In the foreign field
our domestic
Dean Witter & Co.
companies have an
the

discovery of new prod¬
ucts, the age of tailor-made drugs
is approaching rapidly.
The evi¬

postwar
least

earn¬

Operating results of the

com¬

"synthetic" viruses.
luck or design the

outlook

for

new

products

ex¬

24%

greater than
that
Dividends rose 17%.

Modest

Sales

Gain

Looking ahead
sales

1958 EDITION

was

JUST OFF THE PRESS
A

1958

through 1958

are

expected to continue to
gain but the rate should decline

cellent. The rate of discovery may
even increase.

substantially, probably to the area
of 3 to 5%.
Unquestionably, the

In addition to the favorable outlook
tors

the

epidemic borrowed from the 1958
growth factor.
Most
companies

They are largely unique
industry.

will report good gains in the first
half of 1958 but it will be difficult

there
that

are

certain other fac¬

of real

are

value

this

Other

to show favorable comparisons in
the second
half.
With the ex¬

Strong Factors

(1) The competitive position of pected sales gains coming largely
in the wide margin specialty prod¬
industry is unusually strong.
Its products do not compete for ucts profit margins should be well
a
larger share of the consumer maintained and may possibly in¬
dollar. Sick people are desperate. crease slightly. Combined with a
If

they

can

lief from
of

most

will

buy

measure

re¬

ailment, the purchase
goods and services

other

deferred.

Its

markets

are

protected against invaders by the
research and
It takes

marketing obstacles.
years and millions

many

of dollars to build
search

organization.

successful

lower effective tax rate nat

ings

are

earn¬

expected to rise 5 to 10%.

Higher dividends and possibly a
likely.

number of stock splits are
In

have
rise.

recent

months

experienced
The

rise

has

drug stocks
substantial

been

partly

re¬

reflection of the

relatively favor¬

Few compa¬

able outlook for

1958

and the

re¬

page

book

covering

all

1,700

listings

Canadian

cities.

geographically
are

stimulus to sales from the fall Flu

the

1, 1958 to
below that of 1957.

According to the

the creation of the med¬

profession's confidence.

ment

earlier.

for the week ended
April 5,
1958, increased 11% above the like period last
year.
In the pre¬
ceding week March 29, 1958 an increase of 2% was
reported. For
the four weeks ended
April 5, 1958 an increase of 2% was re¬

de¬

increase

class by it¬

valued at 21 times

are

chemicals.

As long as the large invest¬

fresh

reduced

selling

thirteen

rising level in ex¬
steady flow of new

investor.

canned

Successful

year.

products

A marked

Department store sales
the

their

goods,

vestment.

the

beachwear

cover¬

research

accurate meth¬

of forecasting the productivity
if it only remains

penditures,

Wholesalers

close to last year. Wholesale
volume in floor
and linens- lagged again
during the week.

of the

constant

Spring

the call for
skirts.. Volume in children's
Summer
that of the prior week.

We have

currently

excluding du Pont which

is believed to be in

favoring the drugs

of research but

fashion

and

productivity

effort.

used

merchandise equalled
The buying of Summer, outdoor
furniture was close to that of
the previous
week, but was moderately below a year
ago. Retail¬
ers
slightly increased their orders for air conditioners and
fans,
but noticeable
year-to-year declines prevailed.
Purchasers of
hardware, building materials, paint and garden implements
heightened and

•

for

rec¬

The future of the industry will
determined largely by the size

remained

women's

the

and

higher .sales, of baked goods,
candy,
goods during the week, while interest in

last

some

On the demand side

•'

interest

maintenance of the past
rate and possibly an

rising level, particularly abroad,
can
be easily seen.
Factors en¬
hancing this demand, such as an
aging population and rising world

poultry and fresh produce was unchanged." The
in the buying of eggs occurred.
Some increased
buying of print cloths, broadcloths and sateens
helped boost over-all volume in cotton gray
goods the past week.
Although bookings in carpet wool improved in some
markets,
transactions in woolens and worsteds
lagged again.
Interest in
Fall coatings climbed
somewhat over the prior
week, but remained
below a year ago.
New England dyers and finishers
reported a
moderate pick up in
incoming orders.
There

annual

upsurge

apparel

exceedingly

appears

acceleration.

East

Outlook

All the evidence points to

10%

reported
canned

•dairy products,

and

new

Run

at least

pre-Easter drop in the buying of household
goods
continued last week.
Moderate year-to-year declines
occurred.
Retailers of furniture, major
appliances and floor coverings re¬
ported the most noticeable volume reductions.
Purchases of small
electric housewares, draperies and
garden tools equalled those of

usual

man¬

serious

bright.

lightweight

apparel advanced, appreciably

earlier.

Food

the

price competition.
another war an impair¬

companies

the

The usual

•

learned

Bright Long

women's

week

and, above all,

From the growth standpoint the
outlook
for
the
pharmaceutical

•

young

profits from this source is
doubtful in the next few years.

trade in the period ended
8% higher than the similar
according to spot estimates collected

Bradstreet, Inc.T Regional estimates

Central

week

require¬

consequences of

4 to

•

suits.

has

Barring

Shoppers were primarily interested in traditional Easter
mer¬
chandise during the
week, with the most outstanding gains from
.last year in women's
suits, dresses, millinery, coats and fashion
accessories;-- The year-to-year increase in
total
sales of men's
apparel was somewhat less pronounced than in
over-all

in capa¬

the

ment of

retail

was

Central and Mountain

apparel.

agement

by the following! percentages: Middle
+12%; East North Central +4 to +8; New
England and Pacific Coast +3_to-+7r-South Atlantic and
West
South

increase

the

exceeded

another

one

comparable 1957 levels
•Atlantic States -f8 to
'South

but

■.

dollar

Wednesday of last week

calendar

im¬

Today, capacity is ample
A much larger
percentage of' total volume is in
patent protected specialty prod¬
ucts. The companies are to a much
greater extent dependent upon

rose

•

the most

were

but not excessive.

sharply ip the period ended
Wednesday of last week from the prior-period and
noticeably
] exceeded that of the same calendar week Jast year, total retail
trade was slightly below the level of
the+1957 pre-Easter week.
Many retailers attributed this to bad weather and
plan to con¬
tinue their sales promotions on
Spring merchandise through most
of April.
V
/ ■: ..■•■*.
The total

and

tions.

last

1,673,000

ex¬

unprotected

Penicillin

and somewhat
immature industry
it was only
natural
to
expect sharp reduc¬

But Was

Week

Profits became

which

far

ments.

The

agency,
cotton

about

Sharply Last Week

buying

consumer

"far

rise

city

%%>,*'

Trade Volume Rose

season

plant

dustry volume. Demand continued

parity price

The, Government

Commodity Credit Corporation "sold ^QjOOO. bales

These products also rep¬
large share of total in¬

resented

;as of mid-March and continued delayed.plantings due to unfavor¬
able weather, cotton futures
prices, fell slightly the past week on

tthe

War.

gross

several

Streptomycin

previous week.

Despite

expanded

products

and a year ago.
Following the dip in
hog prices, lard futures prices decreased fractionally. Lamb trad¬
ing was steady and prices were unchanged, from the

•

Korean

concerns

the

willing to make this in¬

are

ical

close to 40%.

week earlier

nies

pends

the

the period 1950 to 1952 the eleven

in futures prices, in
moderately, and pur¬

rose

Chicago slipped fractionally as orders declined.
; Cattle receipts dipped noticeably, being the smallest for
any week
■in three years. The
buying of hogs fell at the end of the week,
causing prices to decline somewhat. Hog receipts
slightly exceeded

•

competition.

•

;

price

Productive capacity was
excessive,
a
situation brought about by the

buying,

V ,^

ago.

are

valued at 15 times 1958
earnings.
In comparison six
major chemical

have
outperformed the
chemicals in almost every area in

demands

boastings

•l'ortably :ahead of those

conducive

these stocks. The

companies

drugs

Outlook foi Drug Industry

the

usual late Lenten decline
iri; rice trading, but
steady. A slight rise in orders for export
occurred,
inventories somewhat.
Following "moderate declines in
was

were

cutting
-

for

recognition of the in¬

value

eleven

self,
ings.

un¬

were

mainder
trinsic

67,
J

containing
United

Listings

9,509

States

are

alphabetically,

and

arranged

and

comprehensively detailed:

Firm

under which business It con¬

name

ducted and date established
(

Stock

Exchange and Association
berships (including N.A.S.D.)

Street,

Address,

District
General
of

Mem¬

Offlot

Post

Numbers

Character

Securities

Names

Including
of

Business

ClMi

Handled

Partners

Officers.

Names

Department Heads

Phone

Numbers—Private

Phone

Connor

tions—Wire

Systems—Teletype Numbers-Correspondents — Clearance Arrangements,
An

ALPHABETICAL

ROSTER

all

firms

showing city in which

they are located Is
another valuable feature.

Bound in durable
ENTER

YOUR

limp fabrikoid—$14
ORDER TODAY

HERBERT 9. SEIBERT &
25 Park Place

CO, IRC.

New York 7, N. Y,
REctor 2-9570

(1768)

strengthening. The U. S. economy in order to modernize operations
is big enough, productive enough, and cut -costs rather than to in¬
and growing fast enough to sup¬ crease capacity. Reduced corpora¬
port a national security program tion taxes would enable many

Easier Credit

Continued from first page

Let
of

Program to Speed the
Retain of Prosperity

basis of the wise

counsel we have

heard against government's "do¬
ing too much, too soon."

But,

other

the

hand, gov¬

beware of the

ernment must also

danger of "doing too little, too
late." After inventories have been
reduced

proper

relationship

sales; after productivity has

with

risen; after managerial efficiency
has been stimulated; after invest¬

plans have been corrected;
after
the
steam
has
been ex¬
hausted
under
the
inflationary
ment

boiler,

continuation of the re¬

cession
ful

longer serves any use¬

Indeed, it becomes
an evil of growing magnitude. The
longer it continues, the more so¬
ciety loses in the form of the
goods and services that the un¬
employed could have produced, if
they were employed. The unem¬
ployed workers tend to get rusty
in their skills; and their families
begin to suffer deprivation, as
unemployment benefits run out
and savings are depleted.
Most
important, the confidence people
feel in the future gradually be¬
comes
depleted. If the business
situation is permitted to continue
to deteriorate beyond a certain;

♦ ,

purpose.

point, the reservoir of confidence
people have in the future will
drain away.
Then, a cumulative
process of decline can set in.
A
spiral of shrinking demand can
prolong and deepen the slump. It
will make much stronger anti¬
recessionary action by the gov¬
ernment necessary.

So government's

action must be
timely to avoid both intervention
too soon and on too large a scale,
and use of recession-fighting mea¬
that

sures

too

weak

It is

come

too

reverse

ter of judgment for

know

decisive

sures

late

are

the decline.

delicate and difficult mat¬

officials
for

has

governmental

when

the

anti-recession

greatly stimulated private in¬
vestment through accelerated de¬

had

It is

preciation and other means.

recall that our Federal
Government met
the last eco¬
nomic recession with much more
well

powerful stabilizing
it has taken so far.

actions than

While economic

forecasting is a

notoriously risky occupation, I do
not see convincing evidence either

present recession has run
course or that we stand on the

that the
its

of an economic recovery.

verge
the

long

may

run,

count

upon a strong expansion of Fed¬
eral, state, and local government
expenditure, and an ultimate re¬
surgence of consumer buying, to
bring about renewed growth of
the U. S. economy. In the months

ahead,

important question is
government should

the

whether

our

major anti-recessionary mea¬
sures, or should wait further on
the chance that they may prove

take

I believe the risks
further delay outweigh the ad¬

unnecessary.

vantages. In the first place, mod¬
erate stimulation given now, when
business and consumer confidence

unimpaired, has a good
chance of succeeding, while the
risk
of waiting
is that drastic
measures may be necessary after
confidence has been impaired. In
the second place, a prolongation
of this recession is damaging our
is

still

come.

Time

Come

word about each

measures

pro-pros¬

program.

suggest that the economic situ¬
calls for prompt action on

will

that

Easier credit: So far during the

current

business

There

should

failed to take timely and decisive

should

action

authorities

Reserve

the cost and in¬

reduce

crease

the

credit.

availability
Feb.

bank

legal

ing

$550

reserves

keeping
We

occurred

has

far

The

business

decline

ently

restraint
and

four

money

eco¬

prevent

efforts, but it also helps
business fluctuations.

vacillating

our

policy

National security expenditures

economy

followed

since
a

World

War

coaster"

"roller

pattern.

They plummeted from
billion in 1945 to $12 billion
in 1948.
Then they skyrocketed
up to $52 billion during 1953, and
dropped again to $4 billion in
1956.
Now they
are
slowly on
their way up again. Have we not
yet learned that the Cold War
will
go
on
for decades?
Can't
Congress
lay
out
an
adequate
long-run program which, if it can¬

deposits

not contribute to economic stabil¬

holdings of U. S. Government se¬
ity-,- 'is at- least- not de-stabilizing?
curities and bankers' acceptances,
Let us put an end to cycles of
the

almost

tion

shifted from
net

member

the

same

was

famine

While the reserve posi¬

year ago.

of $1/z

one

extent

monetary

v
Public

judgment that this time

four

fronts,

ous

follows:

third point in a program of
anti-recession action is accelera¬
tion

public

celeration

this

expenditures,
should

that

works.

national

done

ac¬

security
something

for

its

own

sake to promote the growth of

the
fact that it will
help arrest recession and speed
the resumption of prosperity is a
happy coincidence — a kind of
The

economy.

the

ease

early and vigor¬

"extra

Eisenhower

and

For

aluminum.

these

reasons

only

prudent to recognize that the
rent

economic

recession

nounced

program

construction

and

an¬

of post office

modernization,

and Congress has moved to speed
up

the interstate highway build¬

ing program.

This is good, as far
but it Will not add much

recovery.

cur¬

Third:
works.

Acceleration
The

public

Administration

expenditure

are

their

programs,
nature less

The

Federal

should

Reserve

cut the legal reserve

require¬
ments of member banks by one
or
two percent more.
It should
pump cash into the hands of the

now

Consumer spending

expenditure.

has held up very
weak

flexible and less reversible.

and

Congress should accelerate all
prove to be a more serious deFederal public
works programs,
clinc than that of 1953-54, or even
that of 1948-49. This suggests the including military and educational
need for remedial actions by the construction, as well as post office
and interstate highway projects.
Federal Government at least as

and

which

may

sectors

are

far. The
business spend¬

well,

ing for plant and equipment, and
consumer spending upon automo¬
biles. I propose that the Admin¬
istration and Congress agree now
to let the corporate income tax
rate fall

sched¬
banks through open market pur¬
Fourth: Tax reduction. The Ad¬ chases of
Strong as those taken in 1954. Up
government securities. uled, from 52% to 47%. The ef¬
to the present time, not as much ministration and
Congress should By putting the banking system fect would be to enhance profits,
has
been
done, either to ease now agree to let the special excise into a highly liquid position, the to reduce prices, and to encourage
credit or to reduce taxes.
taxes on automobiles and
other Federal Reserve can induce bank¬ business corporations in programs
products expire on July 1; to let ers to look for ways of employing of plant modernization and im¬
Criticizes Dilatory Action
the tax on corporation income fall idle
funds, and thus drive down provement. Removal of the ex¬
Within a year after the begin¬ from 52%
to 47%, in order to long-term interest rates, which so cises on autos would give a fillup
to the sagging automobile indus¬
ning of the business setback of increase both the incentive and far have not moved down
very
1953-54, tax reductions amounting the ability of business firms to much from their
high level of last try.
to

nearly $7.5 billion a year had
been made. Legal reserve require¬

maintain

ments

banks

been cut by four percentage
points for New York and Chicago

banks,

by two percentage
points for other banks, adding an
estimated $17 billion of lending
power to the commercial bank¬
ing system.
A revised Internal

"package" of about $5 billion, of
which about $800 million would

Revenue

personal income tax reduction.

our

commercial

had

and

law

and .other

actions

a high level of expendi¬
plant and equipment; and
reduce personal income taxes

ture

autumn.

all

brackets

about

involve

represent

excise

tax

7%.

This

reduction

tax

cuts, about
$1.7 billion a corporation income
tax cut, and about $2.5 billion a
■'

the profit rate had

1957

after

running, at an annual
$2& billion; by the middle

were

fallen

$21' -billion and is continuing
to fall., £he drop in profits caused
businessmen's expectations to be¬
come dimmer; and downward re¬
to

have

made

been

and

their

expansion

A five-point; corporate tax

plans.

under

cut

present circumstances
promises to be a powerful influ¬
ence
in moderating the impend¬
ing sharp decline of plant and
equipment expenditure. It should
beremembered ;that: business
spending'dr) plant and equipment
is "high-powered" spending, re¬
sulting in several additional dol¬
lars - of : corisumer /, spending
on
final products, for

dollar used to
The

each additional

buy capital goods.

increase in
capital Spending" on -the economy
is much greater, per dollar of tax
reduction,!,than^; is -the case with
an increase in consumer expendileverage/ pf

There will be

at least two

ob¬

jections raised to the anti-reces¬
sion
(or prosperity) program I
will

recommended.

have

first. of all, 7 that this pro¬
gram will get the country back
into deficit financing.
It will be
said,

said, secondly, that this program
of future in¬
flation. Let us analyze these two
increases the danger

are in the minds
well-meaning people.

objections which
of

many

first

The

much

point to make in re¬
deficit financing is that,
we
may regret it, the

Federal Government already faces
a deficit in the current fiscal year.

officially

The 1958 deficit was

es¬

timated by Budget

Director Stans
this week at around $1.5 billion,
and it will become larger as the
business recession reduces the tax

Acceleration

rity Procurement:
bolder

accelerate

and

our

National

Secu¬

The country
faster

national

action

security

should be done,
mainly because it would help
stop the recession, but became the
national .security, urgently heeds
program.

not

July 1,

as now

This

cut

base, which is the amount of per¬
income and corporate prof¬
its on which taxes are paid.
A $5

sonal

billion
of

the deficit

did

the

that

industries
plant capacity. While
this is true
of some industries,
such as steel and aluminum, it is
not true of many others.
More¬
over, a large fraction of plant and
equipment expenditure is made
reason

excess

many

increase

being-automatical¬

serve

penditures by business firms and
consumers; if it did' shorten the
recession- and
speed..a vigorous
recovery, it would expand the tax
base and could readily reduee the
Federal deficit that would other¬
wise exist.
Our 'experience in
combatting the recession of 195354, when-we reduced taxes by
nearly $7.5- billion on an annual

indicates that' there is a
good probability that, over
period of two or three years,
tax reduction would reduce rather
thanincrease
-the
amount
of
basis,'

very
a

financing by- the Federal
Government. Under these circum¬
deficit

stances, tax reduction would, par¬
adoxically,' operate as a deficitreducing
measure!
Since
tax
reduction can only operate to in¬

private

crease

not

demand, and will
it,

reduce

serve

have

to
lose
by
moving
promptly in this direction.
nothing ;

Price
This

objection
it

Inflation

brings
to

increases

price

have

now

However, if the tax cut
to revive private ex¬

cession.

tures

plant and equipment for

immediately

ly generated by the- business re¬

inflation.

tax cut would,

"package"

course,

in the corporate income tax would
not stimulate business
expendi¬

Accelerated Defense Spending

needs

Many persons assert that

would

corporate -profits

1955,

rate of

serve

tax

tracts.

taxes

gard

has

—

steel

plant

equipment- purchasing,; the
reduced
liquidity
of.. business
firms and the progressive squeeze
of costs on profits are also import¬
ant factors. -In the* last quarter

dividend."

President

of decline,

First: Easier credit. The Federal

factor in

one

revision

<'•'L":-.:

Works:

After eight months as it goes,
what is the Federal Re¬ to demand in the current year.
System doing to hasten a We also need a speed-up of mili¬
is at hand.
Reserve
should take a decisive, revival?
It is hard to avoid the
So far, this business recession
tary
construction,
other
public
has lasted about eight months, and step toward cheaper and easier conclusion that our Federal Re¬ buildings, and a school construc¬
credit
by reducing further the serve
authorities
are
trying to tion aid program.
has involved a 3.0% decline in the
the next inflation, rather
annual rate of gross national pro¬ legal reserve requirements of all fight
Federal
Reserve
banks
and
by than the present recession!
Unortliodoxy in Tax Cuts
duction. In the recession of 1953Tax Reduction: The fourth ele¬
A flexible monetary policy can¬
54, there was a 3.3% drop in GNP open market purchases of U. S.
Government securities.
The two
ment
of
an
anti-recession
over a period of about 11 months.
not by itself assure a resumption
pro¬
cuts
of
one-half
a
percentage of
However, there were two power¬
prosperity, to be sure; and no gram is tax reduction. My pro¬
ful sustaining factors in 1954 not point each, made in February and one knows how potent a stimulus posal for a "package" of excise,
The point is that corporate and personal
present today. One was the rapid March, have been "too little and it could be.
income
too late." The previous reductions
tax cuts may appear unorthodox.
expansion
of
Western
so far it has not been given a full
Europe,
which kept U. S. exports high. in rediscount rate have had little trial.
There has been delay and Most people think only of a\cu!
more than symbolic value.
The
other
was
the
their
underlying
caution
when
the
situation has in
personal income taxes
strength of demand for new plant
Second: Acceleration of national called for promptness and vigor. when tax reduction is proposed.
and equipment.
Today, flagging security
procurement. The Ad¬ A failure to use monetary policy In my opinion, a tax cut so lim¬
business in Western Europe has
our
most ited will not be most stimulative
ministration should further speed to the full extent
cut U. S.
exports .sharply; and up both the letting of new con¬ powerful and flexible anti-reces- to the economy at the present
there is
redundant
capacity in tracts for military equipment and sion weapon—makes it more nec¬ time. The soft spot in our econ¬
many U. S. industries, such as its
payments on completed con¬ essary to make changes in Federal omy is not aggregate consumer
It is my

been

downward

and

;

The

decline, and the

that

contribution

could make to

national

our

effort.

Acceleration

billion of

duration

and

business

industries has

■

borrowings from

current

feast in

and

security

has

banks

capacity in some

excess

modernization

unstable element of the

$90

plus currency outside banks) is
actually less than it was a year
ago.
Total Federal Reserve bank
credit outstanding, in the form of

While

the

/'>

improvements:

visions

have

Today, the total

(demand

supply

most

II.

policy of credit
of passive ease,

"active ease."

the

1957.

months passed be¬
a
definite policy

was

only

and

programs.

short of cash to finance

now

such

toward national security has been

one

there

fore

our

Actually,

Nearly three months elapsed be¬
fore the Federal Reserve authori¬
ties shifted from

long-range

adopt

development

firms

the most

appar¬

August

began

not

mainly from repayment of
by businessmen, who have
reducing their inventories.

been

with them.

and

re¬

sulted
loans

maintaining

nomic way to "buy" national se¬
curity because it gives continuity

Such credit relaxation

made.
has

are

procurement

This

the economy), and last month an¬
other reduction oi similar amount

allies, live

our

military

lion of commercial bank credit to

was

or
we

need

research

and

reserves

we,

that

margin
of
military
strength over the Soviet Union, or

percentage point (thus free¬

million

un¬

superiority.
good reason why we
have
it.
No
longer

narrow

of all classes of member banks by
half

country

our

military

not

doubt

18, the Board of

reduced

Governors

give

questioned

the

recession,

have

Federal

able
Advocates Four-Fold Program
I

for Action Has

these

perity

say

the System
to
one
of
$1/2 billion of "free
position in the world. It is hurt¬ reserves, it has been a very mod¬
ing the ecomomies of friendly and est shift, accounted for entirely
neutral countries, and giving aid by a reduction of member bank
and comfort to the Communists borrowings
from the
System
(who
have
always maintained rather than by an increase in
that Capitalism suffered from the System
credit
to
the
member
Is
this a truly flexible
fatal defect of instability).
It is banks.
no exaggeration to say that early
monetary policy?
To
restoration of prosperity in the
judge from public stateUnited States is essential to our ments by Chairman Martin, the
own national security and
to the Federal Reserve System is in¬
clined to minimize both the prob¬
strength of the Free World.

time
mea¬

potentially adding about $3.0 bil¬

ation

Thursday, April 17, 1958

The Commercial and Financial Chronicle .•.;

tax
the

the

second

reduction—that
danger

danger

inflation
I

Spectre

price

I do not deny that there

latent

States.

have

in
little

the

renewed

United

doubt

that

inflation
may again become an active threat
to the dependability of the dollar
and the stability of the cost, of
living.
Americans have, in the

two

past,

three years hence

shown

greater tolerance

Volume

187

Number 5734

;

The Commercial and Financial Chronicle

(1769)
of inflation than

they have shown
unemployment. Our Fed¬

toward

eral Government has therefore, in
the
past, - taken
more
decisive

steps to combsit recession than to
resist inflation.
that

It is

good thing

people today

of the

are aware

great social costs of infla¬

tion than has been the

in the

case

past. But the primary economic
problem facing the U. S. today is
5,200,000 people out of work —

than 7% of the labor force—

not
?

Investment Banking Group Offers $9$,877,000
In Massachusetts Various
Purpose Bonds

rising cost of living.
The
living has not changed
significantly during the past six
a

real cost of

months.

Bankers

Trust

Company,

The

Chase Manhattan Bank, The First
National City Bank of New

the managers in the
offering are:
Chemical Corn Exchange

debt

and

been

economic

growth

little confused.

has

Most

peo^-

pie want growth, but do not like
debt. In this 12th year of the Full
Employment Act it is high time
we
recognized we cannot have
growth
without
debt.
Debt
is

very key point because if we are
to have the kind of financial and

bank deposit
needs in the

growth the economy
years ahead capital

accounts will have to be expanded
as
much as they have been and

probably more. There is a public
Bank;
Guaranty Trust Company of New credit looked at differently and interest implicit in keeping up
York; J. P. Morgan & Co. Inc.; our economy cannot work without with the economy's growth,
cago, Lehman Brothers, The First Blyth &
Co., Inc.; Harriman Rip¬ credit, related in amount, as we
Against the record of a 73% inBoston Corporation, Halsey, Stu¬
ley & Co. Inc.; Smith, Barney & have seen, to the level of GNP.
crease in bank
capitalization since
art & Co. Inc., and
Phelps, Fenn & Co.; Salomon Bros. & Hutzler;
I am not saying that business or
1946, let us think of the problem
Co. are joint managers of the in¬
Goldman, Sachs & Co.; Harris consumers should borrow —or that lie ahead when
your instivestment banking group that is Trust
and
Savings Bank; Con¬ lenders should grant—u n s o u n d tutions will be called
upon
to
offering publicly today (April 17) tinental
Illinois
National
Bank loans they cannot support. I realhandle the further enormous ina total of
$96,877,000 in Common¬ and Trust Company of Chicago.
ize the recession has forced gov- creases in
deposits and loans that
wealth of Massachusetts 2*4 and
The Northern Trust Company; ernment debt to rise.
I do not will fall to the share of
the bank3%
various
purpose
bonds
at C. J. Devine & Co.; Kuhn, Loeb & even say it is an unmixed blessing system as our economy grows
prices to yield from .85% for those Co.; Eastman
Dillon, Union Secu¬ ing. We all know that when the to a $600 billion GNP, and corndue 1959, to 3.25% for the 1989-98 rities &
Co.; Glore, Forgan & Co.; economy gets going again the pos- bined public and private debt tomaturities.
The
group
was Kidder, Peabody & Co.; Drexel sibility of inflation is enhanced by
tal $1,000 billion,
awarded the bonds at competitive &
Co.; The Philadelphia National this new government debt. And
V
sale on a bid of 100.7695, a net
I for one fear new inflation
Bank; R. W. Pressprich & Co.; L.
may
Must Expand Banking
interest cost of 2.9204%.
well have many bad
F. Rothschild &
consequences,
To an economist a marked inCo.; Blair & Co.;
Rated Aa by Moody's and A-l
including more talk of direct con- crease in the growth of the bankIncorporated.
plus by Standard & Poor's, the
Merrill Lynch, Pierce, Fenner & trols on consumer credit or in- ing system is essential to the exbonds are direct general obliga¬
Smith; The First National Bank of dustry. But we all know that the pansion of the nation's economy,
tions of the Commonwealth for
Boston; White, Weld & Co.; Mer¬ "goal" of the American economy This expansion must be accomYork,

The

First National Bank

Chi¬

We must deal with today's eco¬
nomic problem today.
The new
is

should

the

awareness

.\ flation

danger

omen.

But

good

expressed

init

taking

resolute steps for dealing with in¬
if and when it reappears

flation
in the

future; not by reducing our
willingness to curb recession to¬
day.
This means that later on,
after

a high level of employment
production has been restored,

and
and

inflationary

pressures

must

re¬

prepared
promptly and decisively to restrict
appear,

credit, to raise taxes,

or to take
steps to curb excessive de¬

other

This

mand.

the

not

describe ail

elements

inflationary

program.

emphasize

Government

that

anti-

wealth

Ladenburg, Thalmann

such

pledged

foe
Commonwealth

the

purpose

and

will have power to levy unlimited
laxes
on
all
taxable
property

therein.

National

Bank;
&

Co.;

Bear, Stearns & Co.; Carl M. Loeb,
Rhoades & Co.; F. S.
Moseley &
Co.; Shields & Company; Stone &
Webster

The issues consist of:

Company St. Louis;

Securities

Corporation;

maintain

reational and flood, control bonds;

National Bank of St. Louis; A. C.
Allyn and Company Incorporated;

anti-recession

actions

$17,607,000 in drainage and flood
control, sewerage, beach erosion
and water

bonds; and $3,820,000 in
outlay, veterans' services

capital

and sewerage loan bonds.

Among

meet two important tests.

propose

will

Trust

Seattle-First

Paine, Webber, Jackson & Curtis.

policies in the interests of con¬
tributing
to
steady
economic
growth without inflation.
The

cantile

$75,450,000
highway improvement, capital
outlay, highway flood relief, rec¬

flexible attitude toward economic
-

the payment of which
the full
faith and credit of the Common¬

I wish only
the
Federal

needs

place

those

The

First

with

Bank

Portland, Oregon; The Boatmen's

Equitable

Securities

Corporation;
Ingen & Co. Inc.; G. H.

B. J. Van

Walker

Weeks;

associated

National

Co.;

Hornblower

Hemphill,

Noyes

Co.;

Dean Witter & Co.

First, they involve the taking of
actions

which

forces

strengthen

long-run growth of the
economy, and which are desirable
on grounds other than getting the
country out of a recession and
back on the road to prosperity.
Secondly,
they
involve
actions
which

modified

can

Continued,

mand.
We

badly

need

push

along

the national highway system, wa¬
ter
resources
development, and

educational

facilities, in order to
the way for further eco¬
nomic growth.
We must achieve
and maintain unquestioned mili¬
pave

tary

superiority,

lack today.
,

To rid

excessively

something we
our tax system

high

burdens

atious sales taxes which limit the
markets
of

for

commodities,

is part

program for long-run struc¬
tural reform of the Federal tax
a

anti-recession program are
fied
on
the
ground that

justi¬

they
strengthen the U. S. economy. So
far as the proposal to make a bold
toward

move

this is

concerned,

stances

not

reversed.
"a

doom."

failure
;

if circum-

require it, be very quickly

modified

and

ease

anti-reces¬

action which can,

sion
^

monetary

economic

not

assert

will

now

catastrophe.

•

that

lead

the

\ Contrary, I have great confidence
in the basic strength

of the U. S.
economy, and in its ability to re.

During the years immediate-

run.
-

economic growth in the long

sume

ly ahead, it is clear that Federal,
state

and

local

ex¬

Long-term Growth Needs
all

the

which

forces

of future growth
surely present last
still with us, and some

were

are

fluctuation
basic

above

and

below

the

growth trend has been and

should

be expected.

With

of $600 billion GNP we can

personal income at

level

and

GNP

been

such

the

that

the

product. This relationship has
sisted at

has

debt

vicinity of 1.7 times

least

for periods of

per¬

since

1916, except
depression. The as¬

sumption of

reasonably full em¬
expect ployment in the years ahead makes

level of $430

extensions at about $25 billion per

GNP

However, it is important to real¬
ize that to attain this

institutions and

growth,

(billions)

1916—

Debt

1.67

nation

1929—

105

191

1950...

285

490

heretofore preferred to
under the rug. The future
growth for which we hope is pri¬
marily based on technology, a fact

1955—

387

656

1.70

1957—

434

708

1.63

have

and

dent

cludes the nation's labor force and
cludes
ment

now

develop¬

laboratories

our

which will insure not

only rising
productivity, the basis of growth,
also

host

new

products

which will create a variety of new
demands and new needs. In short,
the growth projections do not sim¬

ply expect 1965 to be a bigger
1957, but also a much richer and
more

varied version

There

well.

holds
money
are

Economic

1957

Report of the Presi¬

170.

for

relationship

example

the

supply and GNP and there

other

But for

usable

ratios

well.

simplicity, debt-GNP has

brief

recession

pression.
tween

between

not
and

deep

de¬

The real choice lies be¬
longer recession with

slow and halting recovery, on the
one

hand, and

shorter recession,

followed by a more

economic
hand.
we can

expansion,

All I

rapid rate- of
on

the other

saying is that, if

have the latter, why ought

to be satisfied with the former?

nation

needs.

But

can

banking system in the recent
and

the

foreseeable

fua

1957
more

port

forces

ing

must take to

directions

stay in tune with

cial people, more important
aspect
of this growth; more important if
for

uation, it explains the role of gov¬
ernment
spending.
The
simple
fact is that if the private sector

other reason than

not

because

generally recognized

The

billion
trillion

the

dollar

end

debt

1957.

includes

With respect to the current sit¬

assume

full

mated

debt, the

are

employment.
that

with

tax

govern¬

get back

It
cuts

esti¬

and/or

deficit

spending, the government
government, business, consumer,
mortgage and all forms of debt. deficit will be an additional $10
A debt level of a trillion dollars to $15 billion by 1959. The private
may sound large, and it is large, sector could probably borrow this
Excess
reserves
in
the
but it implies an increase of some much.
$300 billion above current levels, banking system could provide $4
billion of new loans; other sources
a
figure comparable to the $291
could provide most of the balance.
billion increase since 1947.
But the private sector just is not
Debt-GNP Ratios
borrowing enough, so the govern¬

Historically, there has been a
relationship between total debt

$600

What

grow

can

the

even

to sup-

GNP.

billion
at work

were

system

cent

need

the decade

*?y some

the decade through

will

What

the bank-

past

learn from

this

future

that it should affect your behavior
not next year but next week.
Bank Growth and Profits

Let's

look

the

record.

That

the analysis of the past

banking prepared by the
Policy

ABA.i

While

Commission
no

one

its

vital to

are

can

of
do

increase in cap¬

ital

account, without which bank
growth cannot keep up with the
needs of the economy.

The A B A-E c o n o m i c Policy
study makes the point more
clearly and authoritatively than

Let

can.

quote.

ment must.

Our

national

banks received $38 of net earn¬
ings, exactly the same as in 1946."
After tax profits have actually

shrunk

ings.

toward

gross

earn¬

"Indeed the carry
has dropped from
32% of gross operating earnings
in 1946 to 17% in 1956; from 24%
(for the five years)
1946-51 to
over

Quote,

into

net

19% in 1952-6."
In order to keep a conservative
and sound ratio of

deposits to

cap¬

ital, the study shows it has been
necessary to increase capital ac¬
count by 73%
since 1946, while
net profits increased 35%.
Quote
"As a result, the average rate of
profits
declined
from
8 4%
in
1946-50 to 8.2% in 1951-6. In 1956,
the rate of profits was 7.8%, com¬
pared with 10% in 1946."
The
ra*'o of deposits to capital is a
1

attitude

in relation to

Reprinted

Banking

November-December 1957.

course,

the

are

fulfill

the

decade's

in-

of such matters

instalment

Magazine

operations,

and maintaining

prices

building

skilled organ-

ization, sound accounting methods,
a
sensible approach to terms,
avoidance
of

adequate

losses, the

building

reserves

protect

depositors, and all the other,

op-

erating practices that are mandatory if any bank's instalment
credit department is to
operate
more

satisfactorily and profitably,

The

future

America's finan-

ciaj community is tied to the great
growth for this nation which sure-

ly lies ahead.

Whether

utilize

our

opportnuity well or badly depends upon the wisdom of the
steps we take now, and in the future.

should

prepared to

forward, in the words of one
0f our great Presidents, "with a
strong and active faith".
g0

re-

past applicable to the imme-i;

diate future—to

if
of

creasing population, increase in
family formation and enhanced
technological capacity. I speak, of

decade?

Pointing to rising costs of bank¬
ing in relation to income, the study
Now, this relationship is an im¬
says, "As a result, the rise in gross
portant consideration for finance
operating earnings has not led to
people in at least two ways. First,
it explains in good measure what any improvement in the ratio of
net to gross earnings.
For every
is
happening' today.
Second, it
$100 of gross earnings in 1956,
shows us some of
the future.

and

been selected.

the

another, and to finan¬

also

between

$700

meaty

Department of Commerce

consistent

More important, it in¬

the research and

„

SOURCE:

widely recognized. Technology in¬
resources.

time

pro-

easy

justice to this excellent and
analysis in a few short
quotes, the conclusions from the
study are nevertheless inescap¬
able: namely, that increased prof¬

1.72

some

ment must

present

full

1.84

of the facts

will have to face

standing, both public and private,
to some $1,000 billion, from about

the

able

of course,

really unless we take appropriate
steps now? As this is a banker's
meeting let's look at the role of

the

deep

the

Economic

Ratio

$49

will provide all the credit

say we

record is

of the economy—consumers and
businesses—will not step forward

is,

it.

financial

decade in

few selected years.

year.

to increase the level of debt out¬

choice

will

vide

likely and it is desirable. The fol¬
lowing table shows the ratio for

In the face

cannot

institutions

continued existence of this ratio

billion, disposable income at about
$380 billion, and automobile credit

$7 billion every year.

Our

whether

I1n«arl(*.ip.riva-'xl

is obscured. In order to reach GNP
of $600 billion, the U. S. will have

this, there

It has been noted that total pub-

penditures will be rising by $6 to

depression.

consideration,
staying in tune with the future,
the question about the growth of
debt

plished
needs

that will yield a higher return

second

$290 billion

government

the

but

prophet of gloom

act

perforce public debt.

tnlhon dollar debt.

sweep

All these elements of

system.

then

past

page

Short-term Uncertainties and

corporate enterprise, and of vex¬

debt rise, to see GNP rise, to see
full employment of a rising population. To repeat, if not private,

ture with $600 billion GNP and

year
v

from

re¬

versed, in the event the economic
situation
changes
and
we
are
again faced with.inflationary de¬

employment and
political party can ignore it.
Hence, we must continue to see
no

the

has become full

====

The Commercial and Financial Chronicle

70
f,

Thursday, April 17, 1958

(1770)

ADDITIONS

it INDICATES

Now in Registration

Securities
•

Engineering Co., Inc.

Adams

(4/24)

April 1 filed $2,000,000 of 6%% convertible sinking fund
debentures, due 1968, and 250,000 outstanding shares of
class A common stock (par 10 cents). Price—To be sup¬

Underwriter

purposes.

Bond

Bankers

—

of common stock (par $2) to
be offered for
subscription by common stockholders
on the basis of one new share for each five shares held.
Price—To be supplied by amendment. Proceeds—For re¬
duction of bank loans, expansion and general corporate

111.

cago,

;

Manufacturing

Aeronca

5,000 shares of common
(par $1). Price—$6 per share. Proceeds—To go to

stock

Office—Germantown Road, Middletown, Ohio. Underwriter—Greene & Ladd, Middletown,

selling stockholder.
Ohio.

■

(N. Y.)

shares of common stock (par 200).
Price—To be supplied by amendment. Proceeds — To
Feb. 28 filed 500,000

discharge current liabilities and to drill ten
derwriters—To be named by amendment.

wells. Un¬

share. Proceeds—For investment in

first trust notes,

construction loans. Company may
develop shopping centers and build or purchase office
buildings. Office — 900 Woodward Bldg., Washington,
D. C.
Underwriter — None.
Sheldon Magazine, 1201
Highland Drive, Silver Spring, Md., is President.

second trust notes and

^"American Telephone & Telegraph Co.
April 11 filed 7,000,000 shares of capital stock (par $100)
to be offered to employees of company and its subsid¬

iaries, under one or more offerings, in according with
Employees' Stock Plan authorized by stockholders

the
on

Jan.

15, 1958.

Calif.

offered in units of
stock. Price—$101 per
unit, plus accrued interest on the debentures. Proceeds—
To increase working capital; relocation for a new plant;
leasehold improvement and security deposits. Office—
9 River Road, Morristown, N. J. Business—Manufacture

common

stock (par 10 cents) to be

$100 of debentures and 10 shares of

electri^ equipment and components. Underwriter—Cortlandt-Investing Corp^ New York, N. Y.
of electronic

shares of

Dec. 23
common

—To

(letter of notification) 14,700 shares of class B
stock (par $1). Price—$12 per share. Proceeds

Office

selling stockholders.

—

700 N. 44th

Street, Birmingham, Ala. Underwriters — Cruttenden,
Podesta & Co., Chicago, 111.; and Odess, Martin & Herz-

berg, Inc., Birmingham, Ala.

Phoenix, Ariz.
Sept. 30 filed 85,000 shares of common stock. Price—At
par ($3.75 per share). Proceeds—For investment in sub¬
sidiary and working capital. Underwriter—Selected Se¬
curities, Inc., Phoenix, Ariz.
Anita Cobre U. S. A., Inc.,

Arnold, Hoffman & Co., Inc.
(letter of notification) 20,697 shares of com¬
mon stock (par $10) to be offered to stockholders at the
rate of one new share for each share held of record April

March 28

$12.50 per share. Proceeds—To New
York Life Insurance Co. and for working capital. Office

22, 1958.

Price

—55 Canal

—

St., Providence, R. I. Underwriter—None.

City Electric Co. (4/21)
March 19 filed $10,000,000 of first mortgage bonds due
Atlantic

for construc¬
Underwriter—To be determined by com>*■■■ petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Eastman Dillon, Union Securities & Co. and Smith,
Barney & Co. (jointly); Blyth & Co., Inc.; The First
Boston Corp. and Drexel & Co. (jointly); White, Weld
& Co. and Shields & Co. (jointly); Lee Higginson Corp.;
Kuhn, Loeb & Co.; American Securities Corp. and Wood,
Struthers & Co. (jointly). Bids—Tentatively expected to
be received up to 11 a.m. (EST) on April 21.
1988.

Proceeds—To repay bank loans and

tion program.

Australia

(Commonwealth of)

(4/22)

April 3 filed $25,000,000 of 15-year bonds due May 1,
*•

1973.

Price—To

supplied by amendment. Proceeds
—To finance various public works projects. Underwriter
—Morgan Stanley & Co., New York.
• Avionics Corp.

;

of America

(4/21-25)

March 14

(letter of notification) 99,125 shares of com¬
(par 25 cents). Price—$3 per share. Proceeds
—-For repayment of construction loan and for working

mon

stock

Office—Belfield & Wister Sts., Philadelphia, Pa.
Underwriter—Milton D. Blauner & Co., New York, N. Y.

capital.

Bankers

Fidelity Life Insurance Co.
258,740 shares of common stock (par $1),
of which 125,000 shares are to be offered publicly and
133,740 shares to employees pursuant to stock purchase
options. Price—To public, $6 per share. Proceeds—For
expansion and other corporate purposes. Office — At¬
lanta, Ga.
Underwriter—None.

Feb. 28

•

cents.)
;

filed

Bankers Management Corp.

Feb.

filed

400,000

shares of

Price—$1 per share.

capital stock

stock.

gage notes and for working
& Gould, Salem, Mass.

$22,000,000

filed

April

(5/7)

(par 25
Proceeds—To reduce outcommon

stock

bonds

due

petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Lehman Brothers; Blyth & Co., Inc., and F. S.
Moseley & Co. (jointly); Merrill Lynch, Pierce, Fenner
& Smith; Harriman Ripley & Co. Inc. and The First
Boston Corp. (jointly); White, Weld & Co.
Bids—Ex¬

(EDT)

pected to be received up to 11 a.m.

on;

May 21.

Corp.
April 10 (letter of notification) 60,000 shares of common
stock (par $1). Price—At.the market. Proceeds — For
corporate purposes; buying and selling of mortgages and
it Brookridge Development

secured

Office

loans.

—

901

Seneca

Ave.,

Ridgewood,

Underwriter—None.

Builders

Loans

Inc.

40,000 shares of 17V2C
(par $1). Price—$2.50 per share. Pro¬
To selling stockholder. Office — Los Angeles,
Underwriter—Daniel D. Weston & Co., Inc., Bev¬
(letter of notification)

preferred stock
ceeds

—

Calif.

;*,*•,

it Burgermeister Brewing
Calif.
(4/30)

Corp., San Francisco,

supplied by amendment. Proceeds—To selling stockhold¬
ers. Underwriter—Blyth & Co., Inc., San Francisco, Calif.

For

exploration

and drilling

costs.

Offering—Postponed indefinitely.

;

/ c^

Voting Trusts, /

Havana/ Cuba
'< / /•
filed 767,838 units of voting trust certificates,
each certificate representing the ownership of one share
of common
stock
(par One-half cent) in each of 24
Cuban, companies^
Price
To be supplied "by amend¬
ment.
Proceeds—For capital expenditures; exploration

purposes./-Underwriter—None.

costs and other corporate

Daybreak Uranium, Inc., Opportunity/ Wash.

>/
1,156,774 shares of common stock (par 10
cents),, of which 630,000 shares are to be offered for ac¬
count of company and 526,774 shares for selling stock¬
holders.
Price—At market.:' Proceeds—For exploration
Jan.

filed

and drilling costs and

other corporate purposes. Under¬
Wash. •'

writer—Herrin Co., Seattle,

Manufacturing Corp. of America

Diapulse

Jan. 29

(letter of notification) 150,(190 shares of common
(par 10 cents). Price—$2 per share. Proceeds—
general corporate purposes. Office—276 Fifth Ave.,

stock

York, N. Y. Underwriter—None.

New

Digitronlcs Corp.
Feb. 12 (letter of notification) 140,000 shares of class B
capital stock (par 10 cents). Price — $1.50 per share.
Proceeds—For general corporate purposes. Office—Albertson Avenue, Albertson, Long Island, N. Y. Under¬
writer—Cortlandt Investing Corp., 135 Broadway, New
York

6, N. Y.

-■/,./////;

;.J

•

Directomat, Inc. (4/21-25)
March 17 (letter of notification) 300,000 shares of com¬
mon stock (par one cent).
Price—$1 per share. Proceeds
—For working capital and payment of current liabilities.
Office—Hotel Roosevelt, Madison Ave. and 45th St., New
Corp.

Underwriters—James Anthony Securities
Norton & Co. both of New York City;

Office—Toronto, Canada.

and

Schwerin, Stone & Co., Great Neck, N. Y.; and Mac Robbins & Co., Inc., Jersey City, N. J.
Disc, Inc., Washington, D. C.
Oct. 10 filed 400,000

shares of class A common stock (par
Price—$2.50 per share. Proceeds—For investment.
Business—Purchase and development of real property,

$1).

acquisition of stock of business enterprises. Under¬
Irving Lichtman is President and Board

and

writer—None.

Chairman.

100,000 shares are to be sold for the account of the Estate
M. Collings Henderson on the American and To¬
Stock Exchanges.
Price—At market. Proceeds—

Chemical & Research, Inc.

Dixon

Dec. 24 filed 165,625
the

derwriter—None.

rate

shares of common stock (par $1) to

for subscription by

offered

Un¬

one

common

share for

new

each

stockholders at

four

shares held.

supplied by amendment/. Proceeds—For
expansion and general corporate purposes.
Office
Clifton, N. J. Underwriter—P. W. Brooks & Co., Inc.,
New York. Offering—Indefinitely postponed. Other fi¬
Price—To

/
April 1 filed $18,000,000 of first mortgage bonds, due
1988. Price—To be supplied by amendment, Proceeds—
To repay short-term notes and for new construction.
Underwriter
To be named by amendment (probably
Central Hudson Gas & Electric Corp.

nancing

be arranged.'

may

•

—

•

Kidder, Peabody & Co., New York).
Central

Mortgage &

May 14 (letter of notification) 600,000 shares of common
stock (par $1—Canadian).
Price—50 cents per share.

(U. S. funds). Proceeds—For exploration costs, etc. Of¬
fice—5616 Park Ave., Montreal, Canada. UnderwriterJean R. Veditz Co., Inc., 160
Broadway, New York.
Commerce Oil

Refining Corp.

bonds due
Sept. 1, 1968, $20,000,00 of subordinated debentures due
Oct. 1, 1968 and 3.000.000 shares of common stock to be
offered in units as follows: $1,000 of bonds and 48 shares
of stock and $100 of debentures and nine shares of stock
Price—To be supplied by amendment.
Proceeds — To
construct refinery. Underwriter—Lehman Brothers, New
York.

filed

$25,000,000

of first

mortgage

Offering—Indefinite.

Consolidated Edison Co. of N. Y.,
March 3 filed

Inc.

(6/3)

$50,000,000 of first and refunding mortgage

bonds, series O, due June 1, 1988. Proceeds—To retire
short-term bank loans and
for construction program

bidding
Inc.; Morgan

Underwriter—To be determined by competitive
bidders:

Halsey,

Stuart

Co.

(4/18)

(letter of notification) 30,000 shares of 70-cent
stock, series A. Price—At par ($10

cumulative preferred
per

share).

Proceeds—For general corporate purposes.

Office—112A North Green St., P. O. Box 3467, Greens¬

boro, N. C. Underwriters—United Securities Co., Greens¬
boro, N. C. and McCarley & Co.; Asheville, N. C.
,
it Donnellv (R. R.) & Sons, Chicago, IIL
April 16 filed $15,000,000 of debentures due May 15, 1978.
Price—To be supplied by amendment. Proceeds — For
'

improvements

Chess Uranium Corp.

Dec.

Domestic Finance Group Inc.

April 3

Investment Corp.

Sept. 12 filed $5,000,000 of 20-year mortgage bonds and
500,000 shares of common stock (par five cents) to be
offered in units of $100 of bonds and 10 shares of stock
Price—$100.50 per unit. Proceeds—For purchase of first
mortgages or to make first mortgage loans and for con¬
struction business.
Office—Miami Beach, Fla. Under¬
writer—Aetna Securities Corp., New York. Offering—
Date indefinite. Statement effective March 12.

Stanley & Co.; The First Boston Corp. Bids—To be re¬
ceived by company up to 11 a.m. (EDT) on June 3.

McDonald, Holman &

—

March 31

ronto

Houston, Texas.

—

St.
./

Suite 607, 320 Bay St., Toronto, Ont., Canada.
Securities Co., Inc., 135 Broad¬

Cuban-Venezuelan Oil

of A.

Probable

Underwriter

—

New York.

way,

Campbell Chibougamau Mines Ltd.
of capital stock (par $1),
of which 506,667 were issued in connection with the ac¬
quisition of all the assets of Yorcan Exploration Ltd.
(latter proposes to distribute said shares ratably to its
stockholders of record Dec. 16, 1957).
The remaining

standing indebtedness and for working capital. Office—

Co., Inc.,
New York.

Office

March 10 filed 606,667 shares

selling stockholders.

Corp.,

York 17, N. Y.

April 10 filed voting trust certificates for 60,000 out¬
standing shares of capital stock (par $5). Price—To be

Sales '

Research

Explorers, Ltd.;/.;-,

Proceeds

funds.

For

it Buckeye Pipe Line Co., New York
April 9 filed $375,000 interests in the Thrift Plan for
Employees of the company and other Buckeye corpora¬
tions, together with 10,000 shares of common stock which
may be acquired pursuant thereto.
,
; :
:

March

Counselors

Underwriter—Stratford

Underwriter—To be determined by com¬

tion program.

—

Robert H. Green is President.

Cubacor

Proceeds—To repay bank loans and for-construc¬

1983.

...

Oct. 28 (letter of notification) 600,000 shares «f common
stock (par $1-Canadian). Price—50 cents per share-U. S.

capital. Underwriter—Mann
v \
(5/21)
first mortgage

Louis.

(par $1) to be offered

$50 debenture and 20 shares of capital
Price—$90 per unit. Proceeds—To retire mort¬

units of one

Fund, Inc., St. Louis, Mo.
filed 100,000 shares of capital stock, (par one
Price—At market.
Proceeds—For investment.

Underwriter

Shop Pastries Inc., Rockport, Mass.

erly Hills, Calif.

Anderson Electric Corp.

Feb.

cent),

Sept. 17 (letter of notification) $100,000 of QVz% deben->
tures dated Sept. 16, 1957 and due Sept. 15, 1972 and
in

Research

Counselors

Underwriter—Hooker & Fay, San Francisco,

Blacksmith

Offering—Has been deferred.

Queens, N. Y.

Ampco Mfg. Co.
March 31 (letter of notification) $275,000 of 10-year 7%
convertible debentures due May 1, 1968 and 27,500 shares

Francisco, Calif.

it Brooklyn Union Gas Co.

Investment Co., Inc.
Dec. 17 filed 490,000 shares of capital stock. Price—$10.20
American Mutual

per

Bishop Oil Co., San

Feb. 27 filed 112,565 shares

40,000

American-Caribbean Oil Co.

New York.

purposes.

Corp.

(letter of notification)

Feb.

Underwriter—Netherlands Securities Co., Inc., of

poses.

Ky.

equipment and to repay other debt; and for new con¬
struction, equipment, and other corporate purposes. The
shares of common stock are to be sold for selling stockholders. Underwriter—Cruttenden, Podesta & Co., Chi¬

April 16 filed 280,000 shares of common stock (par 10
cents), i Price—$2.50 per share. Proceeds—To pay bank
Joans and for working capital and other corporate pur¬

Price—At
corporate
Co., Louis¬

ville,

REVISED

Inc., Long Island City, N.

Industries,

it Cosmos

ISSUE

ITEMS

•

it Bankers Southern, Inc., Louisville, Ky.
April 14 filed 8,934 shares of common stock,
par ($100 per share).
Proceeds—For general

plied by amendment. Proceeds — From debentures—to
retire indebtedness due on first mortgage on plant and

SINCE

and

additions to

plant

equipment.

and

Underwriter—Harriman Ripley & Co. Inc., New York.
•

Dresser Industries,

Inc.

128,347 shares of common stock (par 500)
being offered in exchange for outstanding common stoc
of the El gen Corp. on the basis of one share of Dresse
Industries common for 3.4 shares of Elgen's common
Feb. 28 filed

exchanges will be

made unless

the exchange offe

is accepted

by the holders of at least 80% of the out
standing Elgen common, and Dresser will not be obli
gated

consummate

any

exchanges

unless

the

offe

accepted by the holders of at least 95% of the out
standing Elgen common. The offer will expire on Jun

Underwriter—None.

17, unless extended.

Laboratories, Berkeley, Calif.i
Feb. 20 filed 300,000 shares of common stock.
Et^odont

par

expense

tion.

Price

($5 per share). Proceeds—To cover operatin
during the development period of tne corpora

Underwriter—None.

Ex-Cefl-O Corp.,

Detroit, Mich.
shares of common stock (par $3
to be offered in exchange fnr common stock of Bryan
Nov.

filed

Chucking

88,000

Grinder

Co.

Springfield,

Va., at rate o

Volume

187*

Number 5734

The Commercial and Financial Chronicle

(1771)
.four-tenths of

Ex-Cell-O share for each full Bryant
share.; Offer, will become effective upon,.acceptance by
holders of not-less than 209,000 shares
an

(95%) of all com¬
stock of Bryant
outstanding. Underwriter—None.

mon

Expanded Shale Products, Inc., Denver, Colo.
60,000 shares of common stock (par $1) and
$180,000 of Q% callable unsubordinated unsecured deben¬

Jan. 29 filed

ture notes due

1960-1964 to be offered in

purposes.

Underwriter—Minor, Mee &

Co., Albuquerque, N. M.4.'
Famous
-Jan. 30

•-

•

Virginia Foods Corp.

X';'
common

purchase warrants
of

Fidelity Bankers
Richmond, Va.

stock

and

one

-warrant.

Price—$500 per unit. Proceeds—For equip¬
ment and working capital.
Office—922 Jefferson St.,
Lynchburg, Va. Underwriter — Whitney & Co., Inc.,
Washington, D. C.
/
"
<
*

Life Insurance

Corp.,
(par $1)

on a pro rata
basis; thereafter the balance remain¬
ing, if any, will be offered to the public. Price—$5
per

stockholders; and to the public at

a price to be
determined. * Proceeds—For
expansion and other cor¬
porate purposes. Underwrter—None.
•

First International Fire Insurance
Co.

Aug. 26 (letter of notification) 100,000 shares of common
stock (par $1). Price —
$3 per share. Proceeds — For
capital and surplus and for first year's deficit. Offloo
S. Bannock
St.,
American

First

Co., Inc., Clifton, N. J. (4/28)
$1,000,000 of 12% notes, payable nine

filed

months after date

of issue in units of $100 or in mul¬
Price—100% of principal amount. Pro¬

tiples thereof.

ceeds—To be used

solely for purchase of notes and other

Underwriter

—

First Leaseback

Corp., Washington, D. C.
V
27 filed 500,000 shares of class
A common stock
(par five cents). Price — $5 per share. Proceeds — Tto
purchase properties.
Underwriter
Whitmore, Bruca
& Co., Washington, D. C.
.

Nov.

—

Backers

Englewood, Colo.

Underwriters, Inc., Englewood, Colo.

outstanding

stock

April

indebtedness issued in payment for
improvements OH
homes and secured by mortgages or other liens
upon the
improved properties. Underwriter—None.

3395

March 7 filed 450,000 shares of common stock
to be offered for
subscription by holders of

share to

(letter of notification) 19,500 shares of

;stock (par $5) and 390 common stock
to be offered in units of 50 shares

150,000 shares of common
(par five cents)i- Price—$2 per share. Proceeds—
For oil and gas
drilling expenses. Office—316 Rogers
Bldg., Mt. Vernon, 111. Underwriter—Paul A. Davis &
Co., Miami, Fla.
•/X
stock

units of $600

.of notes and 200 shares of stock. Price—$1,000 per unit.
.Proceeds—For construction of plant, working capital and
other; corporate

Farrar Drilling Co.
(letter of notification)

Feb. 3

Fluorspar Corp. of America
Dec.

filed

470,000 shares of common stock
(par 29
Price—$3 per share. Proceeds—For exploration
work and working
capital. Office
Portland, Ore.
Underwriter—To be named by amendment. Sol
Gold¬

cents).

—

berg is President.
Forest

Laboratories, Inc.

March

cents).

NEW ISSUE CALENDAR

Price—$2.50

filed

150,000 shares of capital stock (par 10
per share. Proceeds—For sales pro¬
of company's
products, working capital, addi¬
tional inventory and accounts
receivable, for research

motion

;

April 17

(Thursday)

(Offering

stockholders—to

White

Weld

Co.)

April 18
Domestic
^

Traid

underwritten

51,183

April 19

Co.)

$300,000

(Bids
*

57,362

(Milton

(James Anthony
~

Stone

Penn
;

Norton

MacRobbins

Co.;

Co. )

1 r': •1

) $300,000

Dairies, Inc
&

Co.,

Inc.)

$566,250

/ Southern Pacific Co
(Bids

April
Commonwealth

EST)

Co.

Public

Common

(Bids

Co._-Common

Preferred

underwritten by Smith, Barney
Baird & Co., Inc.) $3,000,000

(Monday)

of Oklahoma

Co.
to

invited)

(Wednesday)

Bonds

$16,000,000'.,:'

Common

(Shearson, Hammiil & Co.) 125,000 shares

Gas Improvement

Common

(Bids 11

Fidelity Life Insurance

(Offering
:

stockholders—to

Brooks

Co.,

Common

Inc.)

underwritten

Bonds

(Bids

50,000 shares

Bonds

Potomac Electric Power Co
(Offering

stockholders—to

Lemon.•& Co.,

...

and Dillon,

underwritten "by
Johnston,
Read & Co. Inc.) $19,700,000

May 15
One William

April 24
Adams

Street, Fund, Inc
May 19

(Cruttenden,

(Bids

Debentures

Co.) $2,000,000

250,000

Dickson

Co.)

100,000

Pittsburgh & Lake Erie RR
(Bids
'

April 25
(S.

Fuller

April
First Backers

Illinois Power

-Equip. Trust Ctfs.
.

(Bids

Brooklyn

Union
'Bids

$60,000,000

(Wednesday)
Co

Gas
11

Bonds

invited)

Bonds

EDT)

a.m.

$22,000,000

Public Service of Colorado—

(Mopday)

(The

Co., Inc

First

Boston

Preferred

Blyth & Co., Inc.
Smith Barney & Co.) $16,000,000

^.Notes

Corp.,

Appalachian

(Paine, Webber, Jackson & Curtis, and
Campbell, McCarty & Co. Inc.) $1,200,000

Long Island Arena, Inc
(Dunne

Electric
(Bids

Debens. & Common

Co.)

$750,000

EDT)

noon

Power
EST)

a.m.

May 29

—Bonds

$30,000,00(1

-•

(Offering

Philadelphia

Electric
(Bids

Portland

General

Electric

(Blyth & Co., Inc.)

Sierra Pacific

$40,000,000

(Bids

EST)

Inc.;

The

First

Boston

Bids

Common

60,000 shares

Common
underwritten

(Bids

Blyth

Corp., and W. C. Langley

691,027

Inc

Bonds

$50,000,000

invited)

Co.,

& Co.)

June

Bonds or Deb*.

125.000.000

(Wednesday)
Bonds

Invited)

$10,000,000

Bids

Oklahoma Gas

iDvited)

& Electric

(Bids

.Debentures

$3,000,000

invited)

be invited) 835,000,000

Telephone Co

(Dean Witter

Co.)

$1,500,000

stock

General Electronics Distributors Inc.
Feb. 10 (letter of notification)
2,090 shares of common
gtock (par $25) to be offered to stockholders until

Bonds
$15,000,000

(Tuesday)

Florida Power Corp
(Bids

May,

Prie&—$42 per share. Proceeds
payable to bank, inventory and working
Office—735 Main Street, Wheeling, W. Va. Un-

loans

capital.

^ Getty Oil Co., Wilmington, Del.
April 11 filed 2,170,545 shares of common stock (par $4)
to be offered in exchange for
capital stock (par $5) of
the Mission Development
Co., on basis of one share of
Getty stock for each 1.2 shares of Development stock, or

five shares of Getty for six shares of

Development stock.

150,000 shares of class A
(par 10 cents). Price—$2 per share. Pro¬
general corporate purposes.
Office—1 E.
35th Street, New York
16, N. Y. Underwriter—James
Anthony Securities Corp., 37 Wall St., New York 5, N. Y.
stock

Gly Inc.
4 (letter of notification)
300,000 shares of com¬
stock (par 30 cents).
Price—$1 per share. Proceeds
—For acquisition,
development and operation of oil
md gas properties.
Office—Bacon Bldg., 5th & Pine
5ts., Abilene, Texas. Underwriter
Barth Thomas &
Co., Inc., New York.
March

mon

Great

Divide Oil Corp.
(letter of notification) 300,000 shares of common
itock (par 10 cents).
Price—$1 per share. Proceed*—
To pay balance on oil and
gas properties, and unsecured

3ct. 11

lotes and

for

drilling and working capital. Office—207
Bldg. Salt Lake City, Utah. Underwriter—•
3irkenmayer & Co., Denver, Colo
Guardian Insurance Corp.,
Baltimore, Md.
Aug. 16 filed 300,000 shares of common stock, of which
200,000 shares are to be publicly offered and the remain¬
ing 100,000 shares reserved for issuance upon exercise
of warrants which

July 1
.Preferred

Devices, Inc., Princeton, N. J.
(letter of notification) 40,000 shares of com¬
(par $1) to be offered for subscription by
stockholders at the rate of
approximately 18.5 shares
for each 100 shares held about
April 15; unsubscribed
shares to public.
Price—$3.50 per share. Proceeds—For
expansion, equipment and working capital. Underwriter.
March 31

Newhouse

(Tuesday)

Community Public Service Co

Price—$500 per unit. Proceeds—
working capital. Underwriter—Nona
Offering to be made through selected dealers.
Application is still pending with SEC.
named.

—

(Tuesday)

Debentures

may

Nevada

EST)

New England Power Co

Montreal (City of)
Southern.

June

$3,000,000

(Wednesday)

(Blyth & Co., Inc.)

'Bids

a.m.

stockholders—to

a.m.

Virginia Electric & Power Co

Long Island Lighting Co
to

Bonds

Burgermeister Brewing Corp.

(Offering

(Bids

Common

300,000 shares

Power Co

April 30

$87,079,200

(Tuesday)

June

Bonds

EDT)

Common

Consolidated Edison Co. of N.

noon

Bonds

•

(Tuesday)

to purchase
160.000 shares of participating
preference stock, to be offered in units of $500 of deben¬

ceeds—For

$25,000,000

underwriter)

General Credit,
Inc., Washington, 0. C.
Aug. 17, 1956 filed $2,000,000 of 6% subordinated ■ink¬
ing fund debentures, due Sept V 1971, with detachable

common

(Thursday)

stockholders—no

June 3

April

(EDT) on
Ave., N. W., Washing¬
25, D. C., but bidding has been postponed.

Glassheat Corp. (5/5-9)
Feb. 12 (letter of notification)

(Tuesday)

Illinois Bell Telephone Co

Puget Sound Power & Light Co.(Bids

May 27

Common

ton

•

and

(Offering not underwritten) $1,000,000

Four Corners Oil & Gas Co.—

been scheduled to be received
up to 3:45 p.m.
May 13 at Room 654, 101 Indiana

4er writer—None.

$25,000,000

New York Telephone Co
V*

York.
York City.

ton
Corp.
(jointly); Kuhn, Loeb & Co.; Lehman
Brothers, and Glore, Forgan & Co. (jointly). Bids—Had

—For

(Tuesday)

invited)

New

1958, then to the public.
Bonds

May 21
Common

$2,600,000

Co.)

240,000 shares

Co.

Bids

(Friday)

Common

May 20

Common

Technology Instrument Co.
*

invited) $20,000,000

(Bids to be invited)

EST). $3,900,000

noon

Bonds

Gulf States Utilities Co

Class A

—

—None.

(Monday)

Common

Co.)

Co., Inc
(R.

"•

Co., Inc

Podesta

Common

$37,500,000

Gulf States Utilities Co

(Thursday)

'.(Cruttenden, Podesta

Engineering

Olen

$15,000,000

Engineering Co., Inc

Adams

(Thursday)

(Lehman Brothers)

Southern Counties Gas Co. of California——Bonds
(Bids to be invited)

Debentures

Office

General Aniline & Film
Corp., New York
Jan. 14, 1957 filed
426,988 shares of common A stock (no
par) and 1,537,500 shares of common B stock (par
$1).
Proceeds—To the Attorney General of the United
States.

mon

$20,000,000

EDT)

a.m

purposes.

Underwriter—Harris Securities Corp., New

General

(Wednesday)

Long Island Lighting Co

Price—$3 per share. Proceeds—To
payable, etc., and for working capital

corporate

tures and 40 warrants.
For expansion and

EDT) $15,000,000

a.m.

May 14

accounts

warrants

Thompson (H. I.) Fiber Glass Co

United

(par 10 cents)

general

Underwriter—To be determined by competitive
bidding.
Probable bidders: Blyth & Co.,
Inc., and The First Bos¬

(Friday)

(Morgan Stanley & Co.) 400,000 shares

Maine

Robert

$25,000,000

Lykes, Bros. Steamship Co., Inc

.Common
$400,000

May 13 (Tuesday)

April 23

and

Service

(Exchange offer—The First Boston Corp. and Kidder, Peabody
& Co. wi)l act as
dealer-managers) 1,000,000 shares

(Wednesday)

(Offering to stockholders—to

May
.Bonds

Co.)

Bonds

$7,500,000

Webber,

Freeman Electric Construction
Co., Inc.
Nov. 27 (letter of
notification) 100,000 shares of common
stock

reduce

(Offering to stockholders—to be underwritten by Smith,
Barney
& Co. and Robert W. Baird &
Co., Inc.) 241,211 shares

(Tuesday)

Springfield Fire & Marine Insurance

EDT)

Wisconsin Power & Light Co

$8,220,000

a.m.

Underwriters—Paine,

Curtis, Boston, Mass.; and Campbell, McCarty
Co., Inc., Detroit, Mich.

and

Wisconsin Power & Light Co

Australia

(Morgan Stanley

May 9

Equip. Trust Ctfs.

noon

$300,000

Management Corp

)

(Tuesday)

(McDonald, Holman & Co., Inc.)

Com.
•

$168,750

(bcott, Horner & Co.)

■

(Monday)

Price—

share. Proceeds—To pay off debts and for
drilling
exploration costs

per

Jackson &
&

Common

May 7
Bankers

Common

(Stroud

.Bonds

Corp

and

$12,000,000

Securities

York.

& Gas Co. (4/28-5/2)
March 25 filed 4uu,uuu snaies oi
conunun aiucK.

New Jersey Power & Light Co..

Schwerin,

$300,000

Inc.———Debentures &

(Dempsey-Tegeler & Co.

150,000

development and for other general corporate pur¬
Office—Brooklyn, N. Y. Underwriters—H. Car¬
roll & Co.,
Denver, Colo.; and Alfred L. Powell Co.,
New
poses.

Four Corners Oil

Common

Co.)

EDT)

noon

(Bids

Peoples Natural Gas Co. of S. C.__ _Debs. & Com.

May 6

,——Common
and

$130,000

$150,000,000 ;

Corp

Fuller

Anthony

■

Co.), $297,375

Securities Corp.;

Co.;

Linair Engineering,
:

'(James

Bonds
.W

:_——-Common
&

Directomat, Inc.
v-'f

Inc.)

(Thursday)

May 5

Blauner

Corp.)

Co,

Glassheat Corp.

$10,000,000

Avionics Corp. of America

;

(S.

Co
EST)

and

Virginian Railway Co

(Monday)

a.m.

Transistor

(Bids

stockholders)

Atlantic City Electric

Common

April 21
-

Industro
i

(Saturday)

Sierra Pacific Power Co
{Offering

Common
shares

Debentures
Read

May 1

70,000

..Common

Preferred

McCarley & Co.) $300,000

Lomasney

Co.—

Co.)

Co
(Dillon,

——.Common
A.

(Sinclair Securities

Texas

Inc

and

Witter

Tele-Broadcasters, Inc

Corp
(D.

(Dean

Common

(Friday)

Finance Group

{United: Securities Co.

•:

Southern Nevada Telephone

Piedmont Natural Gas Co., Inc.—

■

are

to be sold at 25 cents per warrant

organizers, incorporators, management, and/or direc-

Bond*
be Invited)

$25,000,000

Continued

page 72

The Commercial and Financial Chronicle

Continued from page

Proceeds—For working cap¬

corporate

general

and

May 1, 1958. Price—$28 per share. Proceeds—For addi¬
tions and improvements.
Office — 203 West 9th St.,

71:

Price—$10 per share.

tors.

ital

Underwriter —

purposes.
*

None.

Industries, Inc., Sinking Spring,

Hofmann

•

Dec.

filed

of common stock

227,500 shares

Pa.
(par 25

for outstanding common
Co. Underwriter—None.

cents) to be offered in exchange
ihares of Van Dorn Iron Works

Home Owners Life Insurance

Co.

the rate of two new shares for each
five shares held. Proceeds—For working capital. Office
—Fort Lauderdale, Fla. Underwriter—None,
at $6 per share at

Horlac

Mines, Ltd.
20 (letter of notification) 300,000 shares of comstock.
Price—At par ($1 per share). Proceeds—

Nov.

!mon

to purchase equipment and machinery
and for working capital.
Office—1551-A Eglinton Ave.
To

loan,

repay

Underwriter—D'Amico

West, Toronto 10, Ont., Canada.
L Co., Inc., Buffalo, N
V
Houghton Mifflin Co.

(letter of notification) 434 shares of common
stock (par $100) to be offered to stockholders of record
•March 12, 1958. Price—$115 per share. Proceeds—To be
.added to the general funds of the company. Office — 2
April

(5/1)
"Feb. 28 filed 150,000 shares of common stock (par 10
/cents). Price—To be related to the market price. Pro¬
ceeds—For working capital and to enlarge research and
•

Industro Transistor Corp.

development department.

(N. Y.)

Underwriter

—

S. D. Fuller &

Co., New York.

Lykes Bros. Steamship Co., Inc. (4/23)
March 28 filed 400.000 shares of common stock (par $10),

300,000 shares are to be sold for the account
and 100,000 shares for three selling
stockholders. Price — To be supplied by arhendment.
Proceeds—To company, to help finance replacement of
vessels making up its present fleet of 54 ships. Officeof which

the

^ Insurance Co. of North America,

company

Orleans, La.

New York.

Underwriter—Morgan Stanley & Co.,
■/';

Inc., Miami, Fla.
April 9 filed $300,000 of fourth serial 8% debentures due
1968 (in denominations of $500 each) and 300 shares of
common stock
(no par), each purchaser of $1,000 face
+ M. A. C. Credit Co.,

amount of debentures to be

permitted, but not required,

Price—
Proceeds—To be added to com¬
pany's general funds and will be used to expand its
outstanding loans. Underwriter—None.
to

purchase one share of common stock at $200.

Philadelphia, Pa.
$5) to
Stock

Subscription Plan of 1950 to employees of company
certain affiliated companies.

and

(4/23-25)

Fidelity Life Insurance Co.

Maine

•

shares of capital stock (par $4) to
be offered for subscription by stockholders at the rate
of one new share for each share held (with an oversub¬

March 26 filed 50,000

Price—To be supplied by amend¬
working capital.
Office—Port¬
Underwriter — P. W. Brooks & Co., Inc.,

scription privilege).

Proceeds—For

ment.

Me.

land,

Ycrk.

New

Mayfair Markets
i
24
(letter of notification) 5,000 shares of 6%
cumulative preferred stock (par $50) and 5,000 shares
of common stock (par $1) to be offered in units of one
March

preferred and one share of common stock. Price
unit. Proceeds—For working capital. Offioe—
Blvd., Los Angeles, Calif. Underwriter—

share of

—$60

per

Bandini

None.

Feb.

filed $20,000,000 of

due

first mortgage bonds, series

like amount of 5%.% series B bonds due 1987.

to be offered in units of a $1,000
of stock, or a $100 debenture
share of stock
Price—Par for debenture, plus
and

•nd

one

share for each 10 shares of stock. Proceeds—For
construction of a shopping center and other capital im¬
provements; for retirement of present preferred shares;
end for working capital, etc. Underwriter—None

per

^ Keystone Chemurgic Corp., Bethlehem, Pa.
(letter of notification) $150,000 of 15-year 6%
convertible debentures due Jan. 1, 1973. Price—At par
(in units of $1,000 each). Proceeds—For working cap¬
Address—R. D. No. 1, Bethlehem, Pa. Underwriter

ital.

-—None.

Lefcourt Realty Corp., New

York
of common stock (par 25
cents). Price—To be supplied by amendment. Proceeds
—For development of property in Florida. Underwriter
—Frank M. Cryan Co., Inc., New York.
Jan.

filed

250,000 shares

Securities

Corp., Portland, Me.
shares of capital stock (par $1).
Price—$5 per share. Proceeds—To acquire stock control
of "young, aggressive and expanding life and other in¬
surance
companies and related companies and then to
operate such companies as subsidiaries." Underwriter—
First Maine Corp., Portland, Me.
Life

Insurance

March 28 filed 1,000,000

•

Linair

Engineering,

Inc.,

Inglewood, Calif.

Stuart

441

nitely postponed.

$500 of debentures and 250 shares of stock. Price—$750
per unit. Proceeds—To finance increased inventories and
the cost of engineering new products, to acquire new
machinery and equipment, and for working capital.
Underwriter—Dempsey-Tegeler & Co., St. Louis, Mo.
Long Island Arena, inc., Commack, N. Y.
April 7 filed $750,000 of 6% debentures due

(4/28)

April 1,

3970, and 75,000 shares of common stock (par 10c) to be
units of $100

offered

shares.

Price

—

of debentures

and

common

$100 per unit.

Proceeds — For general
including construction of the Arena.

corporate purposes,
Underwriter—Dunne & Co., New York on a best-efforts

Dec. 30 (letter

Long Island Lighting Co.

and

for

Proceeds—To

repay

bank loans

construction.

Underwriters—Blyth & Co.,
Inc.; The First Boston Corp., and W. C. Lan'gley & Co.
new

Long Island Lighting Co. (5/14)
V
April 8 filed $20,000,000 of first mortgage bonds, series
J, due 1988. Proceeds—To retire bank loans and for new
construction.
Underwriter—To be determined by com¬
petitive bidding.
Probable bidders: Halsey, Stuart &
,

Co. Inc.; The First Boston Corp. and Blyth & Co.. Inc.
(jointly); V/. C. Langley & Co.; Smith, Barney & Co.
Bids
Expected to be received at City Bank Farmers
—

Co.,

Trust

(EDT)

Wall

St., New York, N.

Y.,

a.m.

./•///

v//';

indefi¬

of notification) 200,000 shares of common
At par ($1 par value). Proceeds — For

mining expenses.

Office —1710 Hoge Bldg., Seattle 4,

Wash. Underwriter—None.

* Montreal (City of)
(4/30)
April 10 filed $10,500,000 of 1958 serial

debentures for

public works, due May 1, 1959-65, and $24,500,000 of
sinking fund debentures for public works, due Nov. 1,
1978. Price—To be supplied by amendment. Proceeds—
For various
named

public works projects. Underwriter—To be
amendment.
If determined by competitive

Shields & Co.,
Halsey, Stuart & Co. Inc., Savard & Hart, and Salomon
Brothers & Hutzler (jointly); Lehman Brothers, White,
Weld & Co., Eastman Dillon, Union Securities & Co.,
and Blyth & Co., Inc. (jointly).
Bids—Expected to be
bidding, probable bidders may include:

received

(EDT)

to 11 a.m.

Motel Co. of Roanoke,

April 30.

Telephone Co., Lorain, Ohio
(letter of notification) 1,785 shares of common
stock (no par) being offered for subscription by common
13

stockholders

52.52 shares held

the
as

rate

one

new

of Feb. 25, 1958;

Inc.; Kuhn, Loeb & Co.; Lehman Brothers, and Salomon
(jointly); Eastman, Dillon, Union Secu¬

Bros. & Hutzler

rities & Co., and

White Weld & Co. (jointly); The First
Corp.; Merrill Lynch, Pierce, Fenner & Smith;
Equitable Securities Corp. Bids—Expected to be received
up to 11 a.m., (EDT) on May 6—at the offices of General
Public Utilities Corp., 67 Broad St., New York, N. Y.

Boston

Inc., Exeter, N. H.

Nichols,

14 filed

Nov.

25,000 shares of common stock (no par).
share. Proceeds—To repay short term
bank loans and for working capital.
Business — Sells
hatching eggs and day-old chicks. Underwriter—None.
Price—$27

per

George E. Coleman, Jr., is President.
:

Nortex Associates Inc., Dallas, Texas

Feb. 17 filed $2,000,000 of participating interests in 1958
and gas exploration program.
Interests are to be

oil

for public sale in $10,000 units. Proceeds—For
exploration and development of gas and oil properties.

offered

i North American Properties Corp.
April 1 (letter of notification) 200,000 shares of class A
stock (par 10 cents) and 40,000 shares of class B stock
(par one cent) to be offered in units of five shares of
class A stock and
cents per

unit.

share of class B stock.

one

Proceeds

—

* North

Chesapeake

Beach

Land

Underwriter—Whitney & Co., Washington,

Church, Va.
D.

Nuclear Science & Engineering Corp.
Sept. 20 filed 100,000 shares of common stock (par 25
cents). Price—To be supplied by amendment. Proceeds
—To prepay indebtedness to Norden-Ketay Corp., to
purchase additional equipment and for working capital.
Underwriter—Hayden, Stone & Co., New York. Offer¬
ing—Temporarily postponed because of market condi¬

tions.
Oil Inc., Salt Lake City, Utah
April 4 filed 597,640 shares of common stock (par $1)
to be offered for subscription by common stockholders
of record March 24, 1958 at the rate of 1V\ new shares
for each share then held. Employees may purchase 50,000 shares of unsubscribed stock. Price—To

Inc., Roanoke, Va.

per

share; and to public, $2

purchase of land, construction and working capital.

(N. Y.j

Investment Trust Fund, Inc.

Municipal

May 9 filed 5,000 units of undivided interests in Munic¬
ipal Investment Trust Fund, Series A. Price—At market.
Proceeds—For investment.
Sponsor—Ira Haupt & Co..
New York.

National Manganese Co.,

Newcastle, Pa.

March 21

(letter of notification) 200,000 shares of com¬
stock (par $1). Price—$1.50 per share. Proceeds—
expenses.

Underwriter—Johnson & Johnson,

Pittsburgh, Pa.
Gas

Pipeline Co. of America
$40,000,000 of first mortgage pipeline bonds
due 1977.
Price—To be supplied by amendment. Pro¬
ceeds— To reduce bank loans.
Underwriters — Dillon,
Nov. 19 filed

Co.

Inc.

and Halsey, Stuart & Co. Inc.,
Offering—Temporarily postponed.

both

per

stockholders,
share. Proceeds—

mining, development and exploration costs, and for

writers—Harrison S. Brothers &

Improvement

★ Northern Virginia Doctors Hospital Corp.

working capital and

Natural

Philadel¬

April 4 (letter of notification) 30,000 shares of common
stock (par one cent). Price—$10 per share. Proceeds—
For building fund. Office — 522 Leesburg Pike, Falls

For

(letter of notification) 60,000 shares of common
(par 40 cents). Price—$5 per share. Proceeds—

mining

St.,

Underwriter—None.

stock

For

Walnut

Co.

Nov. 18

mon

Price—51

For working capital and to

April 1 (letter of notification) 100,000 shares of class A
common
stock (par 10 cents).
Price—$1.50 per share.
Proceeds—For additional acreage and general working
capital. Office—950 Fifth Ave., Prince Frederick, Md.

$1.75

Nebraska
Feb.

stock
new

Consolidated Mills Co.

(letter of notification)
to

offered

both of Salt Lake

other corporate

Under¬

purposes.

Co., and Whitney & Co.,

City, Utah.

★ Oil & Mineral Operations, Inc., Tulsa, Okla.
April 14 filed 200,000 shares of common stock. Price—
$2.50 per share. Proceeds—For payment of loans, various
equipment, and a reserve for future operations. Business
—To acquire and operate mining claims and oil and gas
properties. Underwriter—Universal Securities Co., En¬
terprise Building, Tulsa, Okla.
•

Olen

Co., Inc., Mobile, Ala.

(4/24-28)

April 1 filed 100,000 shares of class A common stock
(par $1). Price—To be supplied by amendment. Pro¬
ceeds—To reduce short term trade obligations, to finance
the opening of new units and to increase inventories.
Business—Retail

Underwriter—R.

stores.

Dickson

Co., Charlotte, N. C.
One William Street

Fund, Inc;

(5/15)

April 7 filed 3,000,000 shares of capital stock (par $1).
Price
$12.50 per share. Proceeds — For investment.

for each

Business

25,000 shares of common

stockholders

shares held.

the

rate

one

Rights will expire

—For

Price—At par ($10 per share). Proceeds
working capital. Office — 1521 North 16th St..

Omaha
•

10, Neb.

New

England Electric System
March 14 filed 968,549 shares of common stock (par $1)
being offered for subscription by common stockholders
at

the

rate

one

new

for

each

held

of April 15, 1958; rights to expire on April 30, 1958.
Unsubscribed shares to be offered to employees under
as

1958

share.

employee

purchase

plan.

Price—$15

per

Proceeds—For construction and general corporate

pui-poses.

Underwriter—Carl M. Loeb, Rhoades & Co.,

for

each

rights to expire on

ly).
New Jersey

Bell Telephone Co.
$30,000,000 of 35-year debentures due April
1, 1993. Proceeds—To redeem a like amount of 4%%
debentures due 1993 on or about April 28. Underwriter
Feb. 28 filed

become

this

open-end

offering.

company

Underwriter

following

—

Lehman

Brothers, New York.
T. C. Enterprises Inc.

March
mon

Underwriter—None.

—

termination

March 15, 1958.

Ladenburg, Thalmann & Co., and Wertheim & Co. (joint¬

May 14.

Lorain

Dec.

Jersey Power & Light Co. (5/6)
filed $7,500,000 of first mortgage bonds due
1988.
Proceeds—To repay bank loans and for new con¬
struction. Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
31

—

April 8 filed 691.027 shares of common stock (par $10)
to be offered for subscription by common stockholders
at rate of one new share for each 10 shares held on April
supplied by amendment.

New

March

—

of New York.

(4/30)

29, 1958: rights to expire on May 15, 1957. Price—To be
.

Price

Read

basis.
•

been

Mineral Basin Mining Corp.

6% convertible subordinated

debentures, due April 1, 1973, and 100,000 shares of cap¬
ital stock (par $1) to be offered in units consisting of

16, Mass., have

St., Boston

Underwriter—Southeastern Securities Corp., New York.

March 24 filed $200,000 ftf

White,

Boston

For

(4/21)

Co. and

Co., (jointly); Halsey, Stuart & Co. Inc.; First
Corp.; Merrill Lynch, Pierce, Fenner & Smith,
and Eastman Dillon Union Securities & Co. (jointly).
Bids—Which were to have been received on March 10
Weld &

stock.

April 2

Kidder, Pea body &

bidders:

Probable

ftock (par 20 cents)
debenture

determined

bidders:

Proceeds—Together with other funds, to

1988.

Underwriter—To be determined by competitive bidding.

Inc., Washington, D. C.

Janaf,

Thursday, April 17, 1958

acquire properties. Office—1700
phia 3, Pa. Underwriter—None.

./v"'

Co.

Electric

Merrimack-Essex

redeem

/uly 30 filed $10,000,000 of 5^-8% sinking fund deben¬
tures due Aug. 1, 1972 and 100,000 shares of common

by competitive bidding. Probable
Halsey, Stuart & Co., Inc.; White, Weld & Co.
and Shields & Co. (jointly); Morgan Stanley & Co.; The
First Boston Corp. Bids—Were to have been received up
to 11 a.m. (EST) on March 25, at Room 2315, 195 Broad¬
way, New York, N. Y. Offering—Postponed indefinitely.

—To

$450 per $500 debenture.

4383

April 11 filed 55,000 shares of capital stock (par
be offered pursuant
to company's Employees'

Underwriter—None.

St., Boston, Mass. Underwriter—None.

Park

Underwriter—None.

Lorain, Ohio.

New

of class A common stock to b»
offered to the public at $5 per share and 116,306 shares
of class B common stock to be offered to stockholders
Nov. 1 filed 50,000 shares

(1772)

(letter of notification)

class

23,200
stock (par $1).
Price—$5
completion of plant plans;

ceeds—For

shares of
share.

per

com¬

Pro¬

land; construc¬
operating expenses.
Office—2502 N. Calvert
St., Baltimore 18, Md.
Underwriter—Burnett & Co.,
Sparks, Md.
.
tion

and

Palestine Economic

Corp., New York
of 5% notes, due Oct. 1, 1963
types: (a) interest-bearing notes
with interest payable at the rate of 5% and at an offer¬
March 31

ing

filed $2,000,000

offered

tV'pp

of 100^.

two

of ori^p'nnl

pmount:

/"b)

onnital-

appreciation notes, at a discount from maturity value so
as to yield 5% compounded semi-annually.
Proceeds—
For making investments and loans in companies or en¬
terprises that the corporation is already financially in¬
terested in, or for other corporate purposes.
—None.
*

Underwriter

Volume 187

Number 5734

The Commercial and Financial

Chronicle

(1773)
Pecos
March

Valley Land Co., Carlsbad, N. Mex.

filed 2,000,000 shares of common stock
(par
10 cents), of which
300,000 shares are to be offered for
sale by the company and
1,700,000 shares by the present
holders thereof.
Price—$1 per share. Proceeds—From
sale of the 300,000
shares, to be used to

6% mortgage
notes and interest and to
pay back tax claims, and inter¬
est due on the note to Mr. Harroun.
Underwriter—Wiles
& Co., Dallas, Texas.
pay

•

Penn

March

Dairies

Inc.

(4/21)

(letter of notification) 50,000 shares class A
common stock (par $5),
Price—$3.37V2 per
Proceeds—To selling stockholders. Office—572 N.

non-voting
share.

Queen St., Lancaster, Pa.
Inc., Philadelphia, Pa.

Underwriter

—

Stroud & Co.,

1978 and
offered

$375,000 of 20-year 7% debentures due
45,000 shares of common stock (par $1) to be

of stock.

notes

(4/21-25)

filed

units of $25 of debentures and three shares
Price—$37.75 per unit. Proceeds — To repay

and

mortgage

bonds, for construction, and
other corporate purposes.
Office—Florence, N. C. Under¬
writer—Scott, Horner & Co., Lynchburg, Va..
Peoples Protective Life Insurance, Co.
March 27 filed 310,000 shares of common stock
(par $1),
consisting of 62,000 shares of class A-voting stock and
248,000 shares of class B-non-voting stock to be offered
in

units

consisting of one class A and four class B
Price
$75 per unit.
Proceeds — For working
capital and for development of district offices in the

shares.
states

—

where

the

is currently licensed to do
Tenn.
Underwriter—None.
R. B. Smith, Jr., is President and Board Chairman.
business.

company

Office—Jackson,

Philadelphia Electric Co. (4/29)
April 3 filed $40,000,000 of first and refunding mortgage
bonds due 1988.
new

Proceeds—To repay bank loans and for
Underwriter
To be determined by

construction.

—

competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; The First Boston Corp.; White, Weld &
Co.;
Morgan Stanley & Co. and Drexel & Co. (jointly). Bids
—•Expected to be received up to noon (EDT) on April 29.

Philadelphia Suburban Water Co.
April 15 filed $4,000,000 first mortgage bonds due 1988.
Price—To be supplied

by amendment. Proceeds — To
bank loans and for construction program. Under¬
writer—Drexel & Co.,

repay

Philadelphia, Pa.

•

Piedmont Natural Gas Co., Inc. (4/17)
March 26 filed 51,183 shares of common stock
(par $1)
to be offered for subscription by common stockholders
at the rate

one

new

for

each

held

as of April 17, 1958 (with an
oversubscription privilege);
rights to expire on May 1, 1958. Price—To be supplied
by amendment. Proceeds
Togther with funds from
private sale of $3,500,000 5J/z% first mortgage bonds due
—

Feb.

1983, to

used

bank loans and to
Underwriter — White,

repay

finance

construction program.
Weld & Co., New York.
"

;
'*/
Pleasant Valley Oil & Mining Corp.
Sept. 30 (letter of notification) 2,000,000 shares of com¬
mon stock.
Price—-At par (five cents per share)./Pro¬
ceeds
For geological studies, reserve for
contingent
liability, for machinery and equipment and other re¬
serves.
Office
616 Judge Bldg., Salt Lake City, Utah
Underwriter—Steven Randall & Co., Inc., New York.
Policy Advancing Corp.
—

—

March 25
mon

common

each

(letter of notification) 30,250 shares of com¬
(par $5) to be offered for subscription by
stockholders at the rate of one new share for

stock

debenture

held; unsubscribed shares to be offered
holders

and

others.

Price—$8

per

Proceeds—For

Office—27
working capital.
St., Binghamton, N. Y. Underwriter—None.

share.

Chenango

of one share of stock and

cumulative

date.

share.

Proceeds—To reimburse its treasury for purchase
Office—920 S. W. Sixth Ave., Portland, Ore.

Underwriter—None.

-★Portland General Electric Co.

April 10 filed 300,000 shares of common stock (par $7.50).
Price—To be supplied by amendment.
Proceeds—To¬
gether with other funds, to be used in part to
bank

Price—$100

unit.

per
an

preferred

Lynch,

Pierce, Fenner & Smith; The First Boston Corp.
Expected to be received

Proceeds

—

Nev.
(4/30)
April 10 filed 60,000 shares of cumlative preferred stock
(par $25) and 70,000 shares of common stock (par
$8).|
Price—To be supplied by amendment. Proceeds—To re¬
tire bank loans, and for construction
program. Under¬
writer—Dean Witter & Co., San Francisco,
Calif., and
Reno, Nev.
*
.

Sovereign Resources, Inc.
Nov. 19 (letter of notification) 1,500 shares of 7%

and

working capital. Office—3309 Winthrop St., Fort
Worth, Tex. Underwriter—Reilly, Hoffman & Sweeney,
Inc., New York, N. Y. Offering—Delayed.

due

★
Springfield Fire & Marine Insurance Co. (4/22)/
March 28 filed 1,000,000 shares of common stock
(par $2)
to be offered in exchange for capital stock of Monarch.

The First Boston Corp. and

Life

ly).

for

Smith, Barney & Co. (joint¬
Bids—To be received at 90 Broad St., New
York,
N. Y., up to noon
(EDT) on April 28. *•? V* 7,;.??
.«/•

Underwriter—None.

14,250 shares of 7%
cumulative preferred stock (par $10) and
10,000 shares
of common stock (par $1).
Price—For preferred stock,
$10.25 per share; for common stock, $8 per share. Pro¬
ceeds—For working capital. Office—200
Sayre St., Rockford, 111. Underwriter — The Milwaukee Co., Milwau¬
kee, Wis.

re¬

outstnding indebtedness. Office — Littleton, Colo.
Underwriter—R. B. Ford Co., Windover Road, Memphis.
pay

..
..

.•

(par $10).
Proceeds—For working capital,
acquisition, development, and exploration of oil and gas
properties. Underwriter—None.

chemical

Underwriter—None.

vides

and

any

balance for construction

program.

Power

Co.

(4/19)

Potomac Electric Power Co.
(4/23)
April 4 filed $19,700,000 of convertible debentures due
May 1, 1973 to be offered for subscription by common

record April 17, 1958 on the basis of one new share for
each 12 shares held (with an oversubscription
privi¬

expire
Price—To be supplied by amendment.
program.
Underwriters—
Dillon, Read & Co. Inc., New York, and Johnston, Lemon
on May
6,
Proceeds

1958.

—

For construction

Co., Washington, D. C.

★ Potomac Plastic
March 31

(par

Co.

57,500 shares of class A

cent) to be offered in units of
500 shares of stock and $500 of debentures.
Price—$1,000
Proceeds
For equipment and

per unit.

one

—

working

ital.

cap¬

Office—1550 Rockville
Pike, Rockville, Md. Under¬
writer—Whitney & Co., Inc., Washington, D. C.

Prairie Fibreboard Ltd.
Feb. 28 filed 210,000 shares of common
stock (par $1.50)
to be offered for sale to
residents of Canada in the Prov¬
inces of Manitoba, Saskatchewan
and Alberta and to
residents of the United States
"only in the State of North
Dakota." Price — $2.50 per share. Proceeds
For
—

struction

purpose.

Office

expire

May

Price—To

sup¬

★

Sierra

March
1988.

Pacific
filed

Power Co., Reno, Nev.
(4/29)
$3,000,000 of first mortgage bonds due

Proceeds—To repay bank loans and for construc¬

Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co

(letter of notification) $50,000 of 6% subordi¬
stock

plied by amendment. Proceeds—To repay bank loans
and for construction program. Underwriter—None.

tion program.

nated convertible debentures and
common

rights

—

Saskatoon,

con¬

Saskatchewan,

Inc.; Kidder, Peabody & Co.; Stone & Webster Securi¬
ties Corp. and Dean Witter & Co. (jointly).
Bids—To
be received up to 11 a.m. (EDT) on April 29 at 49 Fed¬
eral St., Boston, Mass.

Simplicity Pattern Co. Inc.
Oct.

Smith,

New

York.

,
>

common

the effective date of the registration statement and the
subscription period will be approximately 20 days. Price
—At par ($2 per share). Proceeds—To pay outstanding
obligations to Ogden Corp. Underwriter—None. Offer¬
ing—Expected in near future.
Tax

Offering—Indefinitely

postponed.

★ Socony Mobil Oil Co., Inc.
April 10 filed $23,000,000 of Interests in Employees' Sav¬
ings Plan, together with 460,000 shares of capital stock
(par $15) which may be acquired pursuant to said plan.

Exempt Bond Fund, Inc., Washington, D. C.
Price—$20
Proceeds — For investment. Underwriter—

June 20 filed 40,000 shares of common stock.
per

share.

Equitable Securities Corp., Nashville, Tenn.
Held

pending

passing

necessary

Offeringlegislation by

Congress.

Technology Instrument Corp. (4/25)
27 filed 260,000 common shares (par $2.50) of
204,775 shares are for account of three selling
stockholders and 55,225 shares are for account of com¬
pany.
Price — $10 per share. Proceeds — For working
capital and general corporate purposes. Business — De¬
velops and manufactures precision potentiometers and
other precision electronic components and measuring in¬
struments.
Office—Acton, Mass. Underwriter — S. D.
Fuller & Co., New York.
Continued on page 74
March

filed

155,000 shares of common stock (par $1)
Price—To be supplied by amendment. Proceeds—To twc
selling stockholders. Underwriter—Merrill Lynch, Pierce
Fenner

Statement effective April 9.

Sierra Pacific

lege);

each

Syntex Corp. (Republic of Panama)
July 24, 1957, filed 1,165,750 shares of common stock
to be offered for subscription by common stockholders
of Ogden Corp. on the basis of one new share for eadh
four shares held and to holders of options on the basis
of one share for each option to purchase four shares of
Ogden common stock; unsubscribed shares to be offered
to certain employees and officers.
The record date for
the subscription offering will be the 7th day following

March 25 filed 57,362 shares of common stock (par
$7.50)
to be offered for subscription by common stockholders of

stockholders of record April 22, 1958 on the basis of
$100
of debentures for each 30 shares
held; rights to

5,000 shares of

Underwriter—Blyth & Co., Inc., New York, San Fran¬
cisco and Portland (Ore.)

conversion

capital stock of
stock of the
Symington Wayne
Corp., and (2) an option to purchase an additional share
at prices commencing at $10 per share. Underwriter—
None.
:

Security Life Insurance Co.

writer—None.
★

for

Wayne Pump into (1) 2*4 shares of
surviving corporation to be known

repay

loans

Inc., Austin, Texas.

Symington-Gould Corp., Depew, N. Y.
Feb. 28 filed 593,939 shares of common stock and 263,973
warrants to be issued in exchange for the stock of the
Wayne Pump Co. under merger agreement which pro¬

common stock (par $10)
supplied by amendment. Proceeds—For
working capital
Office—Bait Lake City, Utah. Under¬

Price—To

Proceeds—To erect and operate one or more
processing plants using the Bruce - Williams.
beneficiate manganese ores.
Underwriter-

Southwest Shares,

share of preferred stock and IV2 shares 01
stock for each White class A or class B com¬

filed

share.

per

Process

★ Security Savings Life Insurance Co.
April 7 (letter of notification) 100,000 shares of common
stock (par $1). Price—$3 per share. Proceeds—For
cap¬
ital and paid-in surplus. Address—P. O. Box
763, Mont¬
gomery, Ala. Underwriter—None.
27

Underwriter—None.

Strategic Minerals Corp. of America, Dallas, Tex*
March 31 filed $2,000,000 of first lien mortgage 6% bonds
and 975,000 shares of common stock (par 10 cents). Price
—For bonds, 95% of principal
amount; and for stock $3

one

Sentinel

★ Stewart-Warner Corp.
April 3 (letter of notification) not to exceed 1,716 shares
of capital stock (par $5) to be offered to
employees un¬
der the company's Stock Pool Plan. Price—To be deter¬
mined by the market price at the close of business on
the day the order of purchase is received. Proceeds—
To purchase securities.
Office—1826 Diversey Parkway,

Chicago, 111.

Schering Corp., BJoomfield, N. J.
19 filed 278,983 shares of 5% cumulative con¬
vertible preferred stock (par $30) and
418,475 shares of
common stock
(par $1) to be issued in exchange for
stock of White Laboratories, Inc.
(which is to be merged
with Schering Corp, effective Sept. 19,
1957) on the

★

(Indiana)"

April 14 filed $70,500,000 of Participations in the Em¬
ployee Savings Plan of the company and certain sub¬
sidiary companies, together with 1,740,740 shares of
common
stock (par $25) which may be acquired to

share.

Sept.

held.

Underwriter—Straus,

said Plan.

Rocky Mountain Quarter Racing Association
(letter of notification) 300.000 shares of common

Samedan Associates, Inc.,
Ardmore, Okla.
March 24 filed 98,613 shares of common stock

shares of Springfield,

offer will

★ Standard Oil Co.
.

Oct. 31

Tenn.

114

St., New York 4, N. Y.
McDowell, Chicago, 111.

Blosser &

notification)

(EDT)

80 Broad

Rockcote Paint Co.
March 21 (letter of

Proceeds—To

share. The

★ Standard Dredging Corp.
April 9 (letter of notification) 33,000 shares of common
stock (par $1). Price—At market (estimated at about
$9
per share). Proceeds—To selling stockholders.
Office—

—To pay notes payable and bank loans and for
working

basis of

Monarch

expire at 3:30
May 29, unless extended. Dealer-Man¬
agers—The First Boston Corp. and Kidder, Peabody St
Co., both of New York.

Resolite Corp., Zelienople, Pa.
4 (letter of notification)!
20,000 shares of com¬
mon stock (no
par) to be offered pro-rata to stockhold¬
ers, then to the public. Price—$7.50 per share. Proceeds

per

Insurance Co. at rate of
each

p.m.

March

share).

cumu¬

lative preferred stock. Price—At par
($100 per share).
Proceeds—For construction, payment of promissory note

$20,000,000 of 6y4%
first mortgage bonds due 1987 and to retire
bank loans.
Underwriter—To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart & Co. Inc. and
Lehman
Brothers (jointly); Stone & Webster Securities
Corp.,

Price—$14.25

working capital. Office—2301 Huntsville Road,
Underwriter—None.

★ Southern Nevada Telephone Co., Las Vegas.

Hutzler; Kuhn, Loeb & Co. and Eastman Dillon, Union
Securities & Co. (jointly); The First Boston
Corp.; Glore,
Forgan & Co.; Equitable Securities Co. Bids—Expected
May 12.

per

Birmingham, Ala.

program.
Underwriter—To be deter¬
competitive bidding. Probable bidders: Hal¬
sey, Stuart & Co. Inc.; White, Weld & Co.; and Shields
& Co.
(jointly); Blyth & Co., Inc.; Salomon Bros. &

Price—At par ($1

v„

BidsApril

able and

Underwriter—

construction

stock.

(PST)

(letter of notification) $300,000 of 6% second
mortgage serial bonds (with common stock purchase
warrants). Price—At par (in denominations of
$1,000
each).
Proceeds—For payment of demand notes pay¬

one

mined by

capital.

a.m.

Southern Electric Steel Co.

apartment house. Office

Puget Sound Power & Light Co. (4/28)
March 21 filed $30,000,000 of first
mortgage bonds
May 1, 1988. Proceeds—To redeem

to 8:30
.

Dec.

★ Public Service Co. of Oklahoma (5/12)
April 14 filed $16,000,000 of first mortgage
bonds, series
G, due May 1, 1988. Proceeds—To repay bank loans and
for

23.

stock

debenture and

one

St., New York 7, N. Y.
Portfolios, Inc., New York.

Sire Plan

Nov.

(4/29)

participating

in units of

finance acquisition of title to
—115 Chambers

mon

of shares.

non-callable

(par $50) to be offered

to Pacific

Lighting Corp. and for construction pro¬
Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Blyth & Co., Inc.; White, Weld & Co.; Merrill

warrant to

one

(4/23),

gram.

★ Preston House Sire Plan, Inc.
April 10 (letter of notification)
$140,000 of 10-year 6%
debentures (in units of $50
each) and 2,800 shares of 6%

March 31

(letter of notification) 25,000 shares of common
stock (par $9.50) to be offered to
employees pursuant to
Employee Stock Purchase Plan. Price—At 92% of the
opening bid price of the common stock on the offering

ness

buy one addi¬
tional share.
Price—$15 per unit. Proceeds—For com¬
pany's capital and surplus. Office—1001 Tatnall
St., Wil¬
mington, Del. Underwriter—None.

common

★ Portland Gas & Coke Co.

Southern Counties Gas Co. of California

March 26 filed $15,000,000 first
mortgage bonds, series
C, due 1983. Proceeds—To repay short-term indebted¬

★ Preferred Life Insurance Co. of America
March 31 (letter of
notification) 5,721 shares of capital
stock (par $10) and
5,721 warrants to be offered in units

preferred

Peoples Natural Gas Co. of So. Carol.
March 31

Canada. Underwriter—Allied Securities
Ltd., Saskatoon,

Canada.

which

The

(1774)

Continued from page

(4/30)

(letter of notification) 40,000 shares of com¬
mon stock
(par five cents). Price — $3.25 per share.
Proceeds—To complete the construction of Station KALI.
Office—41 East 42nd St., New York, N. Y. Underwriter
—Sinclair Securities Corp., New York, N. Y.

*Texas Co. (4/30)
April 10 filed $150,000,000 of debentures due May 1, 1983.
Price—To be supplied by amendment.
Proceeds — To

outstanding 4% bank loans, due Sept. 4, 1959
($50,000,000 plus interest) and to supplement the general
funds of the company. Underwriter — Dillon, Read &
prepay

Co.. Inc., New York.

—

Timeplan Finance Corp.
March 25 (letter of notification) 27,272 shares of 70-cent
cumulative preferred stock (par $5) and 27,272 shares

stock (par 10 cents) to be offered in

common
one

share to each class of stock.

Proceeds

For

—

working capital.

Office

—

units

unit.
111 E. Main

Price—$11

per

St, Morristown, Tenn. Underwriter—Valley Securities
Corp., Morristown, Tenn.
★ Top Oil & Gas Co., Salt Lake City, Utah
April 15 filed 220,000 shares of common stock, of which
200,000 shares are to be publicly offered. Price—$5 per
share. Proceeds—To drill two new wells and for general
corporate purposes. Underwriter — Andersen-Randolph
Co., Inc., Salt Lake City, Utah.
★ Traid

(4/18)

cino, Calif. Underwriter — D. A. Lomasney & Co., 39
Broadway, New York 6, N. Y.

stock (par one
mill). Price—25 cents per share. Proceeds—For land
acquisition, exploratory work, working capital, reserves,
and other corporate purposes. Underwriter—None. Al¬
fred E. Owens of Waterloo, la., is President.
Trans-Cuba Oil Co., Havana,

Cuba

March 28 filed 6,000,000 shares of common

stock (par 10

cents) to be offered for subscription by holders of out¬

per

share.
N.

share for 10 shares owned.

Price

Proceeds—For drilling for oil and gas.
Street, Coudersport, Pa. Under¬

Main

writer—None.
'

common

share for each 10 shares held. Price—$7.15 per shares

new

Proceeds—For general

★ Consolidated Freightways, Inc.*
/'
•/
Office—214-- April 8 it was-announced-company has applied to;ICC
Underwriter —-.None.*" for permission to offer 273,000 additional common
shares to stockholders oil the basis of one share for each

corporate purposes.

39th

St., New York, N. Y.
Offering—Temporarily deferred.

—Blyth & Co., Inc., San Francisco,

Worth

Fund,

Inc.,

at $3 each.

working capital and payment of current liabilities. Ad¬
dress—Wrightsboro section, 3 miles north of Wilmington,
N. C. Underwriter
Selected Investments, Wilmington,
—

$15,000,000 of 6% subordinated sinking

fund debentures, due 1963 to be offered in exchange for

capital stock and warrants and debentures of Associated
Artists Productions Corp.

$45,000,000 of sinking fund debentures. Underwrit¬
be determined by competitive bidding.
Prob¬
Stuart & Co.; White, Weld & Co.
and Paine, Webber, Jackson & Curtis (jointly); Morgan
Stanley & Go. and First Boston Corp. (jointly). Offer¬
ing—Expected in second quarter of 1958.-^ v v
' /.

stock (par $1).

share. Proceeds—For investment. Un¬
derwriter—Cherokee Securities Corp., 118 N. W. Broad

Co. Inc.; Morgan Stanley & Co. and Drexel & Co.
(jointly); Blair & Co., Inc.; The First Boston Corp.; Kid¬
der, Peabody & Co.; White, Weld & Co.; Merrill Lynch,
Pierce, Fenner & Smith and Eastman Dillon, Union Se¬
curities & Co. (jointly). Bids—Expected to be received
at 1401 Arch St., Philadelpehiai 5, Pa., up to 11 a.m.
(EDT) on May 13.

United States Sulphur Corp.
Oct 8 filed 1,500,000 shares of common stock

(par on«
cent). Price—$1 per share. Proceeds—For plant rental,
etc.; to retire corporate notes; for core drilling; foi
working capital; and for other exploration and develop¬
ment work.
Office — Houston, Texas.
Underwriter —
None.

600,000 has been budgeted for expansion and improve¬
of service facilities during 1958.
Indications are
.

petitive" bidding.' • Probable- bidders: Halsey*: Stuartv; & ;
Inc.; Morgan Stanley & Co.; White, Weld & Co. and

Appalachian Electric Power Co. (5/27);^
1957, it was reported this company, a subsidiary /of American Gas & Electric Co., plans to issue and sell

Co.

Dec. 2,

$25,000,000 of first mortgage bonds.
be

Proceeds—To repaj

and for construction program.

determined

Halsey, Stuart &
Corp.; Kuhn, Loeb & Co.
Securities & Co. (jointly);
Bids—Tentatively expected
(EST) on May 27.

Jan. 23 it

Probabl*

gan

some

Underwriters

—

Salomon Bros.

& Hutzler and

Lehmar
„
.

....

~V!V-

Boston Edison Co.
it was reported

company may

Underwriter—For bonds to be determined by Company,

with prospective bidders including

Halsey, Stuart & Co.
Inc.; The First Boston Corp.; White, Weld & Co.; Leh¬
man Brothers and Harriman Ripley & Co. Inc. (jointly);
For

preferred stock, The First Boston Corp., New York.

G. S.

Laboratories, Inc.
March 20 it was reported that company plans to issue
and sell about $500,000 of common stock. Proceeds—For
working capital and other corporate purposes. Business
—Electronics. Office—391 Ludlow St., Stamford, Conn.
California

March 10 it

Electric Power Co.

was

reported company may issue and sell in

Price—$4

(par $1).
share. Proceeds—To purchase equipment

and supplies and for working capital and other corporate

Underwriter-

Uranium Corp. of America, Portland, Ore.
April 30 filed 1,250,000 shares of common stock (par It
cents). Price—To be supplied by amendment (expected
to be $1 per share). Proceeds—For exploration purposes
Underwriter—To be named by amendment. Graham Al¬
bert Griswold of Portland, Ore., is President.

★ Wachapreague
March 31 (letter of

Hotel Corp., Wachapreague, Va.
notification) $150,000 of 5% and 6%

about

Co.; Merrill Lynch, Pierce, Fenner & Smith; Carl M.
Loeb, Rhoades & Co., and Bear Stearns & Co. (jointly).
•

Central Bank & Trust Co.,

Denver, Colo.
April 11 Bank offered stockholders 70,000 additional
shares of common stock (par $10) on a l-for-4.71428
basis to stockholders of record April 10; rights to expire
on

April 25.

Price—$15 per share. Underwriters—BoettWriter & Christensen Inc.; Bosworth,
Co.; and Garrett-Bromfield & Co.; all of

cher & Co.; Peters,

Sullivan

Denver, Colo.
Central Illinois
March

stockholders

were

vote

increasing

first mortgage bonds, dated Sept. 16, 1957.

authorized

plus accrued interest.

shares to 500,000 shares. Underwriter—Eastman
Union Securities & Co., New York.

Price—At par
Proceeds —For working capital.

DigitizedUnderwriter—None.
for FRASER

preferred

stock

(par

$100)

from

the

250,000
Dillon,

, .

„

Industries, Inc.

Equitable Gas Co. ,\x

•

April 7 it was reported that the company expects later
in the year to issue and:isell:additional securities, prob¬
ably preferred stocky to secure approximately
of additional funds. -Proceeds—Together with

$5,000,000
$7,000,000

priyate sale ot 434% bonds, to repay short-term
construction program. Underwriters

from

bank loans and for

—May be The First Boston

Corp.; Kidder. Peabody &

Co.; Merrill. Lynch, Pierce, Fenner
Weld & Co., all of NewlYork.
;

& Smith: and White,
V;

(7/1) '
Jan. 29 it was reported corporation plans to issue and
sell $25,000,000 of first mortgage bonds due 1988. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Kidder, Peabody
& Co. and Merrill Lynch, Pierce, Fenner & Smith (joint¬
Power Corp.

ly); Lehman Brothers and Blyth & Co., Inc. (jointly);
Eastman Dillon, Union Securities & Co., and Harriman
Ripley & Co. Inc. (jointly); The First Boston Corp. Bids
—Expected to be received on July 1.
•

Gas

Service Co.

March 24 -it

was

plans to issue
No decision
to the procedure the company

reported that company

first mortgage bonds later

some

yet has been made as
follow.

notes

U v

V
reported company plans to do some fi¬
nancing,' the typ£ of securities to be announced later.
Proceeds—For expansion. Underwriter—Harriman Rip¬
ley & Co.- Inc., New York
; • - *
•
,

will

Light Co.

March 10.it was

Florida

Feb. 17 filed 375,000 shares of common stock

United States Telemail Service, Inc.

Light Co.

Expected in June;?
Dixon Chemical

issue and sell in
the Summer of this year some additional first mortgage,
bonds and preferred stock (about $25,000,000); Proceeds
—To repay bank loans and for construction program.

Jan. 27

announced company plans to aissue and. sell
$10,000,000 of first mortgage bonds due 1988. Proceeds
—To repay bank loans and for construction program.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; White, Weld
& Co. and Shields & Co. (jointly); Eastmah Dillon, Union
Securities & Co.; The First Boston Corp. and:Blyth &
Co., > Inc. (jointly); Merrill Lynch, Pierce, Fenner &
Smith and Kidder, Peabody & Co. (jointly). Offering-

sell

Offering—Expected before

April 15 it was

(amount not yet determined)

Brothers, both of New York.
July i.

Stanley & Co.

Delaware Power &

Investment Co.

additional debentures

CoipT and
offering of
debentures, offered to
October, 1957, by Mor¬

Co/V(jointly); The First Boston
Ripley & Co. Inc. (jointly). An

$35,156,700 of 4%% convertible
stockholders, was underwritten in

Co. Inc.; The First Boston
and Eastman Dillon, Union
Harriman Ripley & Co. Inc
to be received up to 11 a.m..

reported company plans to issue and

was

Harriman

Underwritci

by competitive bidding.

bidders:

Shields

.■

450,000 additional shares of common stock.
Underwriter—To be determined by competitive bidding.
Probable bidders: White Weld & Co.; Kidder, Peabody

Office—Salt Lake City, Utah.
Amos Treat & Co., Inc., of New York.

Dan E.

$6O;O00,OOO of senior securities may be involved..
Underwriter—For any bonds, "to;be determined by com-,

1958

purposes.

VW
V; WV'VKafir,President, announced that $100,- ;

Consumers Power Co.
Feb.

ment

★ United Gas Improvement Co. (5/13)
April 11 filed $15,000,000 of first mortgage bonds, due
May 1,1983. Proceeds—To repay bank loans and for con¬
struction program. Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart

per

issue and

able bidders:; Halsey,

per

Associates

United Artists Associated Inc., New York
filed

Natural Gas Co. ;s
announced company plans to

it :was

ers—To

N. C.
,

•

sell

*'*

New York

filed 400,000 shares of common

Price—$12.50

Consolidated
Feb.

Proceeds ---. For"
general corporate purposes. Office—151 Adell Avenue,
Yonkers, N. Y. Underwriter — Edwin Jefferson, -'39 V
Broadway, New York 6, N. Y. .V '
V ''
, :
'*•
be publicly offered

are

Y.-

Underwriter
Calif., and New York,.
•'
-U.vV.i- ? ' -V:

Price—To be named later.

five shares<held.

Inc.

April 2 (letter of notification) 72,035 shares of common
stock (par $1) of which 10,000 are to be offered to stock¬
holders at $2 per share and the remaining 62,035 shares

—To

Dec. 5 (letter of notification) 15,000 shares of common
stock (par $5). Price — $4.50 per share. Proceeds — For

March 31

Machine Co.*r bidding. Probable bidders: ^Halsey, Stuart & Co. Inc.;
(letter of notification) 25,500 shares of com-4 1 Kidder, Peabody & Co., -Incv and White, Weld & Co.
(jointly). Bids—Tentatively expected to be received on
(par $5) to be offered for subscription by
stockholders of record March 17 on basis of one v June 17. Registration—Expected May 15.

bank loans

Trask Manufacturing Co.

stock

.Trans-Eastern Petroleum Inc.

Office—203

-r

& Southern

Citizens

•

that

Feb. 27 (letter of notification) 7,500 shares of common
stock (par $1) to be offered pro-rata to stockholders on

—$4

May:.*

St., Southern Pines, S. C.

new

that this Fund plans to issue
1,000,000 shares of common stock. Price—$10 <
per share.
Proceeds — For investment. Underwriter—
Shearson, Hammill & Co., New York. Managers—John ;
P.- Chase & Co., Inc., Boston, Mass. Registration—Ex¬
pected later this month. Offerings-Planned for sometime

Willcox & Gibbs Sewing
March

share. Proceeds—For general corporate purposes,
including exploration and drilling expenses and capital
expenditures. Underwriter—None.

per

one

% ■:

National Bank of ?
Savannah, Ga."-V&<"■'*./"
•■/•■-•--v '',v-1 'v-» ii
Proceeds—To finance the acquis!- ;J
tion of six new Fairchild F-27 "Friendship" aircraft'on:,/ April 9 stockholders of ^record April 8, 1958 were given
the right to subscribe for 100,000 additional shares of
order for delivery during 1958, and related costs. Under¬
capital stock at the'rate of one new share for each 10
writer—None.
;
shares held'; rights to expire on May 20. Price—$30 per
Western Copperada Mining Corp. (Canada)
share. Proceeds—To increase capital and surplus. Un-j
Aug. 30 (letter of notification) 300,000 shares of cornmoi
derwriter—None.r
,> :/<VV V■■■-■■
£*-••:'V.
stock. Price—At par ($1 per share). Proceeds—F6r de/
Columbus & Southern Ohio Electric Go.
velopment and exploratory work, drilling costs and sur- / Dec. 9 it-was reported, company plans to issue and sell
vey, and for working capital.
Office — 1205 Phillipi
about 250,000 additional shares of common stock. Under¬
Square, Montreal, Canada. Underwriter—Jean R. Vediti '• writers — Dillon, Read- & Co.-Inc; and . The Ohio Co.
Co., Inc., New York.
•" " ' . "
;/' • : (jointly)? Permanent financing not expected until late
in. 1958 or possibly early in 1959.
;
•
★ Western Giant-Oil, Inc.
April 4 (letter of notification) 300,000 shares of common * (" Community Public Service Co.; (6/17> (■ r
stock (par five cents). Price—$1 per share. Proceeds— / March 10 it -was reported-that this company plans to
For mining expenses.
Office—672^ Main St.,^ Dead- ,i issue and sell $3,000,000 of sinking fund debentures due
wood, S. D. Underwriter—None.
V ■'* 7 V, 1978. Underwriter — To be determined by competitive

Feb. 21

the basis of

for the year 1958
equity securities

Price—$125 per unit.

standing shares of capital stock and holders of bearer
shares, in the ratio of one additional share for each share
so
held or represented by bearer shares.
Price—50c

Inc.

sell

and

Seattle, Wash.
T
12 filed $600,000 of 6% subordinated debentures
1970, and 150,000 shares of common stock (par $1) tc
be offered for subscription by common stockholders oi
record March 1, 1958, in units of $100 principal amount
of debentures and 25 common shares, at rate of one unit
for each 31 common shares held on the record date

Wilier Color Television System,

Mining Corp.

Nov. 0 filed 3,000,000 shares of common

1958

April 7 it was announced

due

(letter of notification) 120,000 shares of com¬
(par $1). Price—$2.50 per share. Proceeds—
Foe working capital. Office—17136 Ventura Blvd., En-

mon stock

Uranium

Electric Co.,

Chase

•

West Coast Airlines, Inc.,

March 31

Trans-America

Thursday, April 17,

announced that the company s

placed privately.: .
Fund (Mass.)

Office — 3612 Quesadi
Underwriter—Wagner A

Feb.

mon

Corp.

'm ;

★ Thompson (H. I.) Fiber Glass Co. (5/12)
April 14 filed 125,000 shares of common stock (par $1).
Price
To be supplied by amendment. Proceeds — To
selling stockholders. Underwriter—Shearson, Hammill
& Co., Los Angeles, Calif.

For general corporate purposes.

■

and

debt

per

St., N. W., Washington, D. C.
Co., New York City.

...

anticipates the sale of both
((probably preferred stock),
aggregating approximately $5,000,000. Both issues may ¬

program

share and 15,720 shares are to b«
offered to certain individuals under options. Proceeds—
publicly at $1.20

Chronicle

Louisiana

March 28 it was

Oct. 2 (letter of notification) 50,000 shares of commot
stock (par $1) of which 34,280 shares are to be offered

March 31

Central

Washington National Development Corp.

Tele-Broadcasters, Inc.

★

Commercial and Financial

and

Proceeds

loans.

—

this year.

For repayment of

petitive bidding, probable bidders may be
& Co. Inc.; Merrill Lynch, Pierce, Fenner
White, Weld & Co. (jointly);
Boston

short-term

Underwriter—If determined by com¬

Halsey, Stuart
& Smith, and

Blyth & Co., Inc.; The

Corp.; Lehman Brothers.

First

Volume

187

Number

5734

The Commercial and Financial Chronicle

...

(1775)
vGrace Line Inc;
-■
March 20 it was announced by Lewis A. Lapham, Presi¬

Underwriters—Blyth & Co., Inc. and J.

and

"Santa

Paula."

Underwriters

—

Son.

dent, that the company plans = to issue approximately
$21,000,000 of government insured : bonds secured by a
first preferred ship mortgage on the new"Santa Rosa"

• -:.'1

J. B. Hilllard &

;

■

Jan: 27 it
ment

Merrill

Lynch,
Jackson &

this

announced

was

company plans

offer

newly organized invest¬
to

—$10 per share, less an underwriting discount of
Slfc%.
Proceeds—For investment.
.

^// Mercantile National Bank

Great Atlantic & Pacific Tea Co.

March

Feb. 19 it was reported a secondary offering of common
voting stock is expected in near future. Underwriters—•
May include: Blyth & Co., Inc.; Carl M. Loeb, Rhoades

;

Co.; Hemphill, Noyes & Co.; Smith, Barney &
Merrill Lynch, Pierce, Fenner & Smith..
,V

50,000

Jan.

Utilities

Co.

sell

Midland

was

$20,000,000

additional

at 2 p.m. on
To increase

(5/19)'

March
-

28,.

before

announced

was

shares
record

of Miami Beach

that

the

capital

March

share for each three shares

new

Co.;

reported-company plans to kissue andfirst mortgage ' bonds. .Underwriter /
—To be determined by competitive
bidding. - Probable

shareholders

and

-Gulf.1 States

bank

stock
the

is offering
(par $10) to

basis

per

share.

Proceeds—

Enterprises,- Inc.
announced

plans to

issue

31, 1958 $3,200,000 of first preferred mort¬
gage bonds.
May be placed privately. Proceeds — To
repay bank loans and for working capital.

bidders; Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce,

^Fenner & Smith and White, Weld & Co.
(jointly) ;:Salo-!
mon Bros. & Hutzler and Eastman
Dillon, Union Securi- / V: Midwestern Gas Transmission Co.
dies & Co. (jointly);'Lehman Brothers; Stone &
Web-.% March 24 it was announced that this subsidiary of
ster Securities Corp.; Kuhn, Loeb & Co.
Tennessee Gas Transmission Co. has applied to the Fed¬
Bids — Ex¬
eral Power Commission for
pected to be received on May 19.
permission to issue first
<

Utilities Co. (5/19) ; •
reported company plans to issue and sell
240,000 shares of common stock: Underwriter—' To be

bonds,, unsecured notes and common stock.
Proceeds—To build pipe line system to cost about
$111,000,000.
Underwriters — Stone & Webster Securities

was

determined

Merrill

competitive bidding.

Probable

Corp. and White Weld & Co., both of New York.

bidders:;

Missiles-Rockets-Jets & Automation Fund, Inc.
Jan. 7 this new fund registered under the
Invest¬
ment Company Act of 1940. Plans to issue
$15,000,000

Lynch,

Pierce,-Fenner & Smith and Lehman
Brothers (jointly); Stone & Webster Securities Corp.
Bids—Tentatively expected to be received on May 19.

common

stock, of which $7,500,000 will be underwritten
Haupt & Co. Price—$10. Proceeds
Technological Advisors—Include Dr.
Theodore von Karman, Chairman of the
advisory group

i Hackensack Water Co.

■

March

12, George H. Buck, President, said that com¬
pany plans to sell some $7,000,000 in new securities by
the end of this year in the form of first
mortgage bonds».

firm basis by Ira

—For investment.

for aeronautical research and
development of NATO.
preferred stock. Recent bond financing was made
t
Montana-Dakota Utilities Co.
privately: In event of competitive bidding for bonds or
March 24 it was reported the
debentures, bidders may include: Halsey, Stuart & Co.
company plans to issue and
sell an undetermined amount of first
Inc.; The First Boston Corp. and White, Weld & Co.
mortgage* bdnds in
the latter part of this year or in
(jointly); Stone & Webster Securities Corp.; Blyth &
early 1959. Underwriter
-—To be determined by competitive
Co., Inc.;.Drexel & Co.land Dean Witter ^ Conjointly):
bidding. Probable
The First Boston Corp. and White,
/Weld,&.;Cp. (jointly).;, ; bidders: Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.;
underwrote last common stock financing-.:- There-is no
Merrill Lynch, Pierce, Fenner & Smith and
Kidder,
preferred stock presently .outstanding^
;
Peabody & Co., Inc., (jointly); and Blair & Co., Inc.
and

;

Hawaiian Telephone Co.

March IT it

Moore-McCormack Lines,

March 24 it

reported company plans to offer 500,000
additional shares of common stock to stockholders. Pro¬

ceeds

was

Illinois Bell

March 27 it

5 J ■A

announced

($100

par

share).

per

Mountain

tration—Expected
Illinois
Jan. 29 it

May 9.

Power

Co.

tive

Ripley

May 20.

Indiana Gas & Water Co., Inc..

March 25
issue

and

was

sell

announced

that

Co.

Inc.

$3,000,000 of first mortgage bonds.

May

Kansas Gas & Electric Co.

March 31, G. W. Evans,
Chairman, announced that com¬
pany plans to sell some bonds originally scheduled for
1958

but
or

construction

which

sale

early 1959.
program.

may

now

deferred

until

Proceeds—About $8,000,000 for
Underwriter—To be determined

competitive

Stuart

Naxon Telesign Corp.
19 it was announced

March

by this corporation that it
plans to issue and sell 120,000 shares common stock (par
$1). Price — $5 per share. Underwriter
Auchincloss,
—

Parker

bidding.
Probable
bidders:
Halsey,
Co. Inc.; Kidder, Peabody &
Co., and Merrill

Lynch,

Pierce,
Fenner
&
Smith
(jointly);' Lehman
Brothers; Eastman Dillon, Union Securities & Co. and

'March

Corp. (jointly);'Glore, For¬
Co., and Goldman Sachs & Co. (jointly)/

Kansas

Feb.
sell

Power
was

Light Co.

announced

company

plans to issue and

$10,000,000 of first mortgage bonds due 1988.

ceeds—For

construction

program.

Pro¬

Underwriter—To

determined by competitive
bidding. Probable bidders;
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Glore,
Forgan & Co.; Harriman Ripley & Co. Inc.;
White, Weld

Co.; Blyth & Co., Inc.; Equitable Securities
Corp. Reg¬
istration—Expected before Spring. *

Kentucky Utilities

Jan. 21 it

was

Co.

reported company plans to issue and sell

bank loans and for new construction.
be determined by competitive

repay

Underwriter—To
bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; Lee
Higginson
Corp.; Equitable Securities Corp.; Eastman Dillon,
Union Securities & Co. and Merrill
Lynch, Pierce, Fenner
& Smith
(jointly); Kidder, Peabody & Co. and White,
Weld & Co. (jointly);
Kuhn, Loeb & Co. Offering—Ex¬
pected in September or October.

Kentucky Utilities

Jan.

was

also

its

common

company may offer
shares of its common

stockholders

l-for-15

basis.

nature
time

which

financing is

will

underr'

Stuart & Co. Inc.; The First Boston Corp. and
Blyth &

Co., Inc. (jointly); Merrill Lynch, Pierce, Fenner &
Smith, Kidder, Peabody & Co. and White, Weld. & Co,
(jointly); Lehman Brothers and Riter & Co. (jointly);
Equitable Securities Corp. and Eastman Dillon, Union
Securities & Co. (jointly).
Oklahoma Gas & Electric Co.
Feb. 3

was

(6/17)
reported company plans to issue and sell

$15,000,000 of bonds this year. Underwriter—To be deter*
mined byx:ompetitive bidding. Probable bidders: (1> For
bonds—Halsey, Stuart & C\ Inc.; Equitable Securities
Corp.; The First Boston Cor^ Kuhn, Loeb & Co., Merrill
Lynch, Pierce, Fenner & Smith and White, Weld &
Co. (jointly); Harriman Ripley & Co. Inc. and Eastman
Dillon, Union Securities & Co. (jointly). Bids—Tentatively expected to be received on June 17.
A
,

Pacific

Gas &

Electric Co.

March

20 the company announced it plans a common
offering about the middle of this year, first to
present stockholders and then to public. Underwriter—*
Blyth & Co., Inc., New York.
stock

Pacific Gas & Electric Co.
March

was

undetermined
the

reported

amount

plans sale of aq
of bonds and preferred stock in
company

latter part of this year or

early 1959. Underwriter
For bonds to be determined by competitive bid¬
Probable bidders—The First Boston Corp. and

—(1)

ding.
Halsey,Stuart & Co. Inc. (jointly); Blyth & Co., Inc.; (2>)
For preferred stock: Blyth & Co., Inc.
Pacific

Offering—Ex¬

was

announced

(6/11)
this

Inc.; The First Boston Corp.; Kuhn, Loeb & Co.,
Dillon, Union Securities & Co. and Salomon
Bros. & Hutzler
(jointly); Lehman Brothers; Merrill
Lynch, Pierce, Fenner & Smith; Kidder Peabody & Co.
and White, Weld & Co.
(jointly); Equitable Securities
Corp. and Blair & Co., Inc. (jointly). Bids—Tentatively
Eastman

scheduled to
Boston

be received

16, Mass.

New

York

March 7 it

on June 11
at 441 Stuart St.,
Registration—Expected early in May.

State

was

from additional

Electric

announced that

and

Gas

Co.

approximately $7,500,000

financing will be required for construc¬

tion expenditures for the balance of this
year.

agement intends to negotiate

new

The

man¬

line of credit with

banks and expects to sell equity securities later
this year or in early 1959, depending upon
prevailing
market conditions. Underwriter—For any common stock:
group of

The First Boston

Corp., New York.

New York

Telephone Co. (5/20)
company sought approval of the New York

March

Public

Service Commission to

issue and sell $60,000,000
mortgage bonds, together with 1,200,000
shares of common stock, par $100 (the latter to American
Telephone & Telegraph Co.). Proceeds—To retire shortterm bank borrowings. Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
"& Co. Inc.; Morgan Stanley & Co.
Bids—Expected on
May 20:

refunding

New York Telephone Co.
was also announced
company seeks approval
of an issue of $70,000,000 additional
refunding mortgage
March 14 it

last
tive

Telephone & Telegraph Co.
reported company plans $300,600,000

was

Proceeds

a like amount of series J 4J/2%
bonds sold
Underwriter—To be determined by competi¬
bidding.
Probable bidders: Halsey, Stuart & Co.

year.

Inc.; Morgan Stanley & Co.

capi¬

outlay program. Proceeds—For construction program
in 1958 and 1959 ($137,000,000 in 1958).
Underwriter—
To be determined by competitive bidding. Probable bid¬
ders— Halsey, Stuart & Co. Inc.; Morgan Stanley &
Cof

Pennsylvania Power Co.
March 7

it was announced company plans to sell later
$6,000,000 of additional securities. Underwriter
—For any bonds, to be determined by competitive bid¬
ding. Probable bidders: Halsey, Stuart & Co. Inc.; Kid¬
der Peabody & Co., White, Weld & Co., Equitable Securrities Corp., and Shields & Co. (jointly); Lehman Bro¬
thers; Merrill Lynch, Pierce, Fenner and Smith, and
1958

Dean

Witter & Co.

(jointly).

Pittsburgh & Lake Erie RR. (4/24)
Bids will be received by the company up to noon (EST)
on April 24 for the purchase from it of $3,900,000 equip¬
ment trust certificates to mature in 15 equal annual:
instalments of $260,000 each. Probable bidders: Halsey,
Stuart & Co. Inc.; Salomon Bros. & Hutzler.
Public Service Co. of Colorado

England Power Co.
3

—To refund

that

approximately 165,000 additional
stock

bonds, subject to favorable market conditions.

Co.

reported

Co.

$10,000,000 of first mortgage bonds. Proceeds—To

Washington,

company, a subsidiary
New
England
Electric
System, proposes to file
$10,000,000 principal amount of first mortgage bonds,
series H, due 1988. Underwriter—To be determined
by
competitive bidding. Probable bidders; Halsey, Stuart

Redpath,

Stone & Webster Securities
gan &

New

company, plans

the

conditions

(Minn.)
13 it was reported that the company may be con¬
sidering the issue and sale this Summer of about $25,000,*
000 of first mortgage bonds. Underwriter—To be deter¬
mined by competitive bidding. Probable bidders:
Halsey,

pected late in April.

mid-year,

to repay bank

Underwriters—Glore,

•

be placed privately. Proceeds—To
repay bank loans and
for new construction.

late

Proceeds—Will probably be used
for new construction.

and

New York.

securities,

Northern States Power Co.

Forgan & Co. and Harriman Ripley & Co. Inc., both of

the

Corp., New York.

National Distillers & Chemical Corp.
March 3 it was reported company is expected to issue
and sell about $50,000,000 to
$60,000,000 long-term secu¬

Bids—To be received

First Boston

loans

Eastman Dillon, Union Securities &
Co.; White, Weld &
Co. and Merrill Lynch, Pierce, Fenner & Smith
(jointly);
The First Boston Corp.; Harriman

;

writer—The

was

Underwriter—To be determined by competi¬
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;,

Supply Co.

27 it was reported company expects to offer a
debenture issue prior to July 1, 1958.
Proceeds—Among
other things, to repay $11,000,000 of bank loans. Under¬

rities.

(5/20)

reported company plans to issue $25,000,000 of first mortgage bonds. Proceeds—For construction
program.

Fuel

March

Proceeds—For

tal

Brothers, both of New York. Offering—Ex¬

pected this Summer.

additions and improvements. Underwriter—None, Regis¬

plans to spend

taken.

Jan. 8 it

(5/29)

new

expire
shares. Price—At

plans to issue and

share for each six shares held;
rights,:,
on June 30.
Minority stockholders own 5,933 •

Inc.

announced company

Underwriters—Kuhn, Loeb & Co.

plans to offer to
its stockholders of record May
29, 1958 the right to sub¬
scribe for 870,792 additional shares of
capital stock at
the rate of one

additional

determined

aftd Lehman

company

announced company

was

estimated $76,500,000 for construction in the years 19581059. Of this about $55,000,000 will be raised from sale,

$24,000,000 of government insured bonds secured by
first preferred ship mortgage on the liners S. S. Brazil
and S. S. Argentina.

Telephone Co;

was

sell

$5,000,000, to be used foi; additions and
to property.
Underwriter—ivfqneo Offer¬

improvements
ing—Expected in June,

Northern Indiana Public Service Co.
March 12 it

About

—

by competitive bidding. Prob¬
Halsey, Stuart & Co. Inc.; Morgan Stanley
& Co.; The First Boston Corp.
able bidders:

mortgage

Gulf States

Jan. 29 it

writer—To be determined

Jan.

Dec.

company

Power Co.

was

one

held; rights will expire

April 30. Price—$20
capital and surplus.

reported company may issue and sell
$50,000,000 of mortgage bonds, probably this fall. Under¬

bona fide residents of
10,000 shares of capital stock (par $1). Price

California

Niagara Mohawk
March 3

4/ Master Fund, Inc., Fairfield, Calif.

Pierce, Fenner and Smith; Paine, Webber,
Curtis; Smith, Barney Co.; White, Weld & Co.; and F.
Eberstadt & Co., all of New York.
;

(5/21)

April 3 company announced it plans to issue and sell
$16,000,000 par value of cumulative preferred stock.
Proceeds—For 1958 construction program. Underwriters
—The First Boston Corp., Blyth & Co., Inc. and Smith,

Barney & Co., all of New York.

Registration—Planned

about the end of April.
•

Public

March 20

Service
it

sell

plan

This

was

Southern
Bids

was

and

issue

Electric

Gas

Co.

reported that the company planned to
additional debentures on June 17.

some

later abandoned.

Pacific

Co.

(4/21)

expected to be received up to

noon (EST) April
2117, 165 Broadway, New York, N. Y. for
the purchase from the company of $8,220,000 of equip¬
ment trust certificates, series No. 2 to mature annually
from March 1, 1959-1973 inclusive.
Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.

are

Room

Southern Railway Co.

March 20 it

was reported that the company plans to issue
$20,000,000 of bonds. Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Halsey,
Stuart 8c Co. Inc.; Kidder Peabody & Co., Inc.; The First
Boston Corp. and White, Weld & Co. (jointly);
Morgan;
Stanley & Co.; Eastman Dillon, Union Securities & Co.,

about

and Salomon Bros. & Hutzler

jointly).

Tel-A-Sign Inc., Chicago, III.
April 8 it was announced the company plans to file
with the SEC a proposal to issue 200,000 shares of
common
stock (par 20 cents).
Price — To be deter¬
mined at time of offering. Proceeds—For working capital
and other corporate purposes. Underwriters — Charles
Plohn & Co., New York, N. Y., and Clayton Securities
Corp., Boston, Mass.
Toledo Edison Co.
Jan. 20 it

was reported company plans to issue and sell
$15,000,000 of first mortgage bonds in April or
May of this year. Proceeds—To repay bank loans. Un¬
derwriter—If issue is not placed privately, underwriter

about

may

determined

by competitive bidding.

Continued

Probable
page

The Commercial and Financial

Chronicle

1958

Thursday, April 17,

(1776)

Continued from page

Corp.; Eastman Dillon, Union
mon

(jointly); Carl M. Loeb, Rhoades

& Hutzler

Bros.

Equitable Securities
Securities & Co.; and Salo¬

Stuart & Co. Inc.;

bidders: Halsey,

White, Weld & Co.
Tuttle Engineering, Inc., Arcadia, Calif.
Feb. 10, Leo L. Strecker, President, announced corpora¬
tion plans issue and sale in near future of $1,000,000
convertible debentures or preferred stock, to be followed
later in 1958 by the sale of about $5,000,000 of common
The First Boston Corp.;

& Co.;

Proceeds—For working capital and

6tock.

rate purposes.

\;y

Union Electric Co.,
March

St. Louis, Mo.

announced

was

other corpo¬

company

plans to market

of common stock in the latter part of
in the first quarter of 1959. Proceeds—For

about $30,000,000

this year or
construction program.

Virginia Electric & Power Co. (6/10)
was reported company plans to issue

Dec. 26 it

and sell

bonds or debentures. Underwriter—-To be
determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co.; Salomon Bros. & Hutzler; White,
Weld & Co.; Eastman Dillon, Union Securities & Co.;
Stone & Webster Securities Corp.; Kuhn, Loeb & Co.
and American Securities Corp. (jointly). Bids—Tenta¬

$25,000,000

tively expected to be received on June

10.

Virginian Railway Co. (5/1)
April 14 it was reported that the company plans an
offering of $12,000,000 of bonds, subject to ICC approval.
Underwriter—To be determined by competitive bidding.
bidders:

Probable

Halsey, Stuart & Co. Inc.; Harriman

Washington Gas Light Co.
announced company

plans to issue and
which may in¬
clude some preferred stock. Proceeds—For construction
program./Underwriters—Johnston, Lemon & Co., Alex.
Brown &c Sons, Auchincloss, Parker & Redpath and Folger, Nolan Inc. Offering—May be early in Summer.
sell

of new securities,

about $7,000,000

the

& Light Co.
announced that company plans to issue
and sell $10,000,000 of first mortgage bonds. Proceeds—
To retire bank loans and for construction program. Un¬

competitive bidding.
& Co. Inc.; Smith,
Barney & Co. and Robert W. Baird & Co., Inc. (jointly);
Equitable Securities Corp. and Eastman Dillon, Union
Securities & Co. (jointly); White, Weld & Co., Kidder,
Peabody & Co. and Salomon Bros. & Hutzler (jointly);
The First Boston Corp.
Offering—Not expected until

man

bidders:

Reporter

determined by competitive

Government

market

with its

constructive action is evi¬

dently looking to the future, and this means to most money market

specialists more ample credit and lower interest rates. It is the
opinion of not a few money market followers that the reserve re¬

Inc.; Kidder,
(jointly). Bids—
Expected to be received sometime in April.

Peabody & Co. and White, Weld & Co.

And, of course, the Australian
Commonwealth's bonds will be on

Against Time Deposits Awaited

of the

revive the building industry, one

from its current 4%
perch. It is believed in most quarters of the financial district that
the administration, especially its economic advisors, would wel¬
come still easier money market conditions and very soon.

enough to bring the prime bank rate down

election

The

Silverman

Inc., 105-year-old com¬
financing and factoring

Talcott,
mercial

James Talcott,

put away,
cording to latest reports.

great many bank investment officers that a one-year
obligation would have fitted into their plans much better. There
seems to be no question but what a certificate of indebtedness will
be used by the Treasury in the not too distant future if it be only
for refunding purposes.

regular
monthly

had to

well

pretty

been

Now

Chairman and

grandson of
founder,

the

meeting of the

Commonwealth
big offer¬
first mortgage
million under¬

comes

The

2%% Note in Strong Hands

the

four-year, ten-month obligation aggregating $15.7 billion. This

resulted in allotments

subscriptions in

excess

of $25,000 being

24%.

Even though it- is the opinion of Government officials that
there was a fair amount of speculative purchases in the new 2%%

note, it is evident that, by far, the bulk of the new money raising
obligation has gone into strong hands, namely, the commercial
banks.

deposit institutions in making commitments in the 2%s
of 2/15/63, are allowed to pay for these securities through the tax
and loan account and this always adds to the attractiveness of the

security which the Treasury is offering. Also, the belief that the
Government deposits created by this new money raising venture
will be with the commercial banks for a period of at least a month
does not detract from the qualities of the issue.

Large Bonds Seek More Liquidity
in making

offer of

oniy

2%% obligation

due in

1963, did not make ayailable to the deposit institutions (in
this case mainly the big banks) a one-year security, which was
desired by these banks in order to build up their liquid positions.
The successful reception which was given to the 2%% note indi¬
cates that it fitted into the money market picture very well. Also,
the fact that the loan demand continues to decline, means that the
■deposit banks will be putting more funds into tlie securities market.
However, it appears to be the opinion of not a few money
market specialists that the big money center banks will be very
much interested in getting large amounts of money to work in
ehort-term obligations. This would be in addition to weekly pur¬
chases of Treasury bills. Therefore, this is taken to mean that a
certificate of indebtedness would be a very welcome issue as far
bs the large commercial banks are concerned.

comp a n y's
board
of
di¬

Treasury Financing

One-Year Basis

Even though the Treasury kept the recent new money

obligation in the note classification and it had considerable appeal
lor the commercial banks, there is important opinions around that
a one-year obligation should have been part of this
operation. It is
being pointed out that a debt management policy in order to be
really effective should meet the existing needs of the economy.
The fact that the business pattern is very much on the defensive,
and could use an increase in the money supply, means to most

would

eagerly bought by the deposit institutions.
This would create deposits and purchasing power and at the same
time add to the money supply.

The Treasury, by not offering

certificate of indebtedness in
the recent new money raising
operation, may have done so de¬
liberately in order to use such an obligation in a big way in the
next refunding operation which will be coming
up in the near
::

future in order to take

care

of the June maturities.

t t,

Executive Officer.

(Foreign Loans Move

again the market appears

Once

bonds

floated in this market are

finding

former

4*rbert R. Silverman

Presi-

dent

and

Trea'surer,
continues

Chief

changes

executive

other

Three

being

dollar

Foreign

kind of "thin" affair both

announced at the same time:

were

Hooker Talcott and Emanuel P.
good reception judging by reports
Lewis become Vice-Chairmen and
pertaining to The Belgian Congo's
moves.
continue as Secretary and Execu¬
$15 million offering, and Com¬
But from all indications under¬ monwealth of Australia's $25 mil¬ tive Vice-President, respectively;
Harvey M. Kelsey, Jr., was elected
writers bidding for new offerings lion issue due out next week.
Treasurer and continues as Vicehave
been
just a
little more
The
Congo
bonds,
sold to
sanguine in their views than ap¬ finance public improvements, in¬ President.
James Talcott, Inc., one of the
peared warranted by the seasoned cluding
housing for
natives,
market.
And
as
a
result of
a
brought to market yesterday, was oldest and largest firms in the
modicum of over-pricing
it ap¬ taken up in good order.
field of commercial financing and

with

ways,

buying

little in the way of
selling needed to find

in price

reflection

recent emissions have

that

pears

been tending

Market

jjo back up a bit.
fully

observers,

aware

of the direction in which signs are

pointing

are

especially

not

con¬

cerned at this stage by the

matter

inventory.

who

dealers

And

are

position to observe, find prelim¬
inary inquiry for the Australian
dollar bonds suggesting a quick

operation when that issue comes

They

bit

calculate

that

the

will

market

come

abreast

terms fixed for current offerings.

And

the

seems

consensus

to be

that the situation will right itself

fortnight

thus

new

the way for whatever
financing is on the roster in

the weeks ahead.
These

market,
a

before

contend that

the

it is wont to do, moves

given level and under¬
period of consolidation,
taking the next step in a

along to
goes

sources

as
a

current evolution.

Testing
The

new

test

its

issue

market

abilities

faces

and

tempers of prospective buyers
the

weeks

that

when

phone &
tures

ahead.
New

the

recalled

England

Telegraph

were

to market.

Tele-

Co.'s deben-

brought out, priced to

1854
present

factoring, was established in

by the grandfather of the
Chairman.

During the

past cen¬

company has evolved
sales agency for New Eng¬

the

tury
from

textile

land

mills

become

supplier of funds to
growth companies in nearly every
basic industry in the country.

leading

pressure

mounting funds makes itself felt,

market followers that there should be very sizable offer¬
ings of short-term issues, such as one-year certificates of indebted¬
which

transactions.

taking,

feeble sort of way during the

money

ness

Chairman of the Board and

clearing

raising

Mr.

rectors.
T

carrying a 3%% coupon
and priced to yield 3.70%
was
past fortnight. Prices have been
reported
as
"not taking"
im¬
edging
ahead
with
consequent
mediately. But the market was
shaving of yields,
but with a
noticeable
lack
of
volume
in expected to come up to it shortly.
in

within

30-year
This $50

bonds.

putting its best foot forward

been

to be

The

The Treasury

market has

The secondary bond

Treasury's new money operation consisting of $3,500,000,notes was heavily oversubscribed, with offers to buy

ing

the

following

ac¬

Edison Co. of Chicago's

000 of 2 %%

announced

be considered. But
soon
buyers
were
showing
a
willingness to look at the issue
as
the
seasoned market turned
firmer. As a consequence it has

New

Herbert

President of James

firm, has been

maturity

the

course

years

notes have been very well received in spite of the

The 2%%

Advances Four Officers

slow side.

the

James Talcott, Inc.

bit on

yield 3.85%, they were a

present plans.

change

there

unless

market

the

Administration program to turn the business
tide in the opposite direction, it is believed in some quarters of
the financial district that the expected cut in reserve requirements
of "the deposit banks will bring with it a reduction in the reserves
held against savings deposits. This would give the smaller com¬
mercial banks funds v/hich could be used to make or purchase
mortgages with. These loans should help to get the building revival
under way, which would be favorable to the economy.

quirements of the deposit banks will be reduced again, and the
discount rate will also be lowered. These developments should be

Underwriter — To be
Probable bidders:

bidding.

Halsey, Stuart & Co. Inc.; Coffin & Burr,

it was announced company

Governments

By JOHN T. CHIPPENDALE, JR.

•,

000,000 of first mortgage bonds.

Light Co.

reported company may issue and sell $5,-

Feb. 24 it was

(5/9-27)
plans to offer to
its common stockholders the privilege of subscribing for
241,211 additional common shares at the rate of one new
17

Light Co.

Worcester Gas

key features of the

=====

beliefs of

Co.; Kidder, Peabody & Co.

1958 or early in 1959.

Wisconsin Power &

March

Corp.-

Securities

American

and

Brothers; Kuhn, Loeb & Co. and A. C. Allyn & Co. ;
(jointly); The First Boston Corp.; White, Weld &

Inc.

Stuart

Halsey,

by com¬

(jointly). (2) For any preferred stock—Merrill Lynch,
Pierce, Fenner & Smith; Salomon Bros. & Hutzler and
Eastman Dillon, Union Securities & Co., (jointly); Leh¬

To be determined by

—

Probable

Co.,

Loeb

Kuhn,

Power

March 17 it was

derwriter

determined

Underwriter—To

on.

petitive bidding. Probable bidders: (1) For any bonds—
Halsey, Stuart & Co. Inc.; White Weld & Co.; The First
Boston Corp.; Kidder, Peabody & Co.; Merrill Lynch,
Pierce, Fenner & Smith; Eastman Dillon, Union Secu¬
rities & Co. and Salomon Bros. & Hutzler
(jointly);

York.

Cut in Reserves

The

decided

directors authorized

Wisconsin

sell about

announced company plans to

was

$12,500,000 of new securities in the last half of the cur¬
rent year.
The type of securities has not yet been

the sale of $5,000,001.
in debentures.
Proceeds—For expansion program. Un
derwriter—Blyth & Co., Inc., San Francisco and Nev
18

Public Service Corp.

Wisconsin
March 4 it

Natural Gas Co.

Washington
Oct.

With their efforts to

Our

holders, subject to allotment, an

March 24 it was

late in

•

to preferred stock¬
issue of 30,000 shares
of cumulative preferred stock (par $100). Proceeds—To
retire bank loans and for construction program. Under¬
writers—Smith, Barney & Co. and Robert W. Baird &
Co., Inc. Offering—Tentatively expected in May.
shares held and

each

share for

Ripley & Co., Inc.; Kidder, Peabody & Co., Inc., and
White, Weld & Co. (jointly); Shields & Co. Bids—Ex¬
pected to be received up to noon (EDT) on May 1.

Time for Breather

The corporate new

issue market

will get something of a
next week with
only

millions of such

odd

"breather"

sight at the moment.
Consolidated
Edison

Co.

been

set

June 3.

back

the

three

issues

bid¬
ding route. These are Monday's
offering of $10,000,000 bonds by
Atlantic
City
Electric Co. and
Wednesday's award of a $15,000,-

emerge

000

via

debt

Counties
Also

formation
&

man

made

McLaughlin,

of the

Kauf¬

Co., members of the New

York Stock Exchange,

with offices

currently
scheduled for next week, two will
Of

Announcement

$50

have

ditions

Formed in New York

million of bonds
originally were slated "for next
Tuesday, but due to market con¬
Y.'s

McLaughlin, Kaufman

about $70
offerings in

the competitive

issue

Gas

Co.

Wednesday,

at 52 Wall

Partners

Potomac

Kaufman,
Frank

Brady and Cyril J. Andrews.

Gradison to Admit
CINCINNATI, Ohio—On May 1,

Southern

California,

Henry

are

McLaughlin,

John

Street, New York City.

Willis
come

Gradison,

Jr.

will

Dixie Terminal Building,

Electric has $19.7 million of con-

vertible debentures going by the

members

Co.,

the

New York

Cincinnati Stock Exchanges.

negotiated route.
■I

be¬

partner in W. D. Gradison

...

>?»

f.'

and

Volume

187

Number 5734

;

The Commercial and Financial
Chronicle

(1777)

The

Indications of

following statistical tabulations

latest week

Business Activity

week
Latest

Indicated steel

operations

cent capacity)

(per

average

(bbls.

2,313,000

6,250,135

6,264,135

6,327,735

7,613,615

7,038,000

7,488,000
25,294,000

4
4

25,124,000

2,203,000

11,506.000

2,226,000
11,363.000

2,836.000

April

12,136,000

6,785,000

12,634,000

6,984,000

8,001,000

unfinished gasoline
(bbls.) at

(bbls.)

April
April
April

214,754,000

216,647,000

16,912,000

74,545,000
54,750,000

75,125.000"

215,409,000
17,622,000
84,018,000
54,803,000

CONSTRUCTION

(no.

cars)—April

497,118

ENGINEERING

—

April 10
April 10

and

April lo
April 10

municipal

OUTPUT (U. S. BUREAU OF
MINES):
Biiuminous coal and lignite
(tons)
Pennsylvania anthracite
(tons)

DEPARTMENT

STORE

SALES

SYSTEM—1947-49
ELECTRIC

output

AVERAGE

000

6.170,000

..April

100

April

PRICES

Electrolytic

April 12

AND

INDUSTRIAL)

—

DUN

April 10

(E.

April
April

(delivered)
(East St.

Straits

$344,476,000
117,714,000
226,762,000
141,886,000
84,876,000

8,100,000

8,306,000
387,000

417,000

114

11,307,009

105

11,860,000

11,326,000

342

113

11,695,000

352

5.967c

$66.49

$33.50

$34.00

'-'V

5.670c

24.600c

$64.56

$37.33
■'

$42.67
'.

23.900c

22.250c

20.500c

12.000c

13.000c

11.800c

12.800c

10.500c

15.800c

10.500c

April

10.500c

10.000c

14.000c

April

10.000c

24.000c

April

26.000c

93.250c

25.000c

92.375c

96.375c

99.250c

96.90

96.79

13.500c

95.77

95.62

102.13

96.85

101.97

102.13

101.47

99.36

99.52

99.68

94.50

90.44

95.92

95.47

April 15

95.16

86.65

96.85

86.51

April 15

86.51

91.19

89.78

92.19

April 15

97.78

97.47

—April 15

—

98.73

91.62

April 15
April 15

corporate

Atlantic

2.77

2.78

98.09

2.97

3.30

4.02

4.03

3.95

3.63

3.62

3.78

3.66

3.79

3.78

April 15

3.77

—April 15

West Central

United

Manufacturing

March

Total

Public

construction
and

COKE

Oven

MINES)—Month

3.95

3.94

Crude

3.87

Refined

399.5

406.1

Deliveries

395.7

393.8
♦

4.06

335,027
279,404

259,355

321,182

360,476

268,648

265,719

283,101

(net tons)

COPPER INSTITUTE—For month

Copper production
(tons

404,209

351,889

418,353

490,041

110.01

109.98

109.79

2,000

93,029

COTTON

GINNING (DEPT. OF
To March 1 (running bales)

OUTPUT

Month

-Mar. 22

1,480,690
320,550

1,611.960
305,860

1,098,570

972,220

(BUREAU

August:

Gold

(in fine ounces)
(in fine ounces)
Copper (in short tons)
Lead (in short tons)
Zinc (in short tons)

1,316,020

259,680
897,000

833,680

1,156,680

1,019,900

408,250

466,240
45,830

283,000

186,800

61,700

60,000

27,500

376,270

282,420

232,570

422,100

342,420

260,070

MONEY IN CIRCULATION—TREASURY
DEPT.
As of Jan. 31 (000's
omitted)

501,260

440,030

345,088

MOODY'S

.Mar. 22

186,220

508,951
77,730

-128,200

122,900

87,240

473,433

525,620

506,256

474,160

551,163

653,820

629,156

561,400

Mar. 22

2,398,161

2,579,460

1,821,600

..Mar. 22

459.980

479,890

1,504,108
300,960
1,540,410
1,841,370

442,580

2,027,393

2,217,910

1,685,767

Mar. 22

Total sales

2,487,373

2,697,800

2,128,256

•TOCK

TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT DEALERS AND
SPECIALISTS ON N. Y. STOCK
EXCHANGE COMMISSION:
(customers' purchases)—t

100

Industrials

Banks

1,153,211
$50,187,447

1,207,693

989,612

$42,744,976

$43,334,294

.Mar. 22

1,022,426

1,053,547

840,783

Mar. 22

802,018

20,782
1,001,644

20,284

24,098

Mar. 22

6,428

795,590

$44,598,437

1,033,263
$45,271,622

816,685

Mar. 22

$36,482,829

$36,407,533

293,470

248,180

207,030

Mar. 22

2937470

297J)70

248*180

Mar. 22

shares.

20*7*030

423,110

447]470

386,360

363,550

ROUND-LOT STOCK SALES ON THE
N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK

(10)

REAL

ESTATE

SAVINGS

STOCK

Feb.

firms

Total

Credit

LABOR

.Mar. 22

—

748,920

794,480

784,570

.Mar. 22

11,104,450

11,717,540
12,512,020

8,935,380

409,810
8,125,180

11,853,370

9,719,950

8,534,990

DEPT. OF

Cash

Processed

LOAN

net
to

margin

debit

All commodities
other

.April

•Revised figure,
^Includes
of Jan. 1,
1958, as against

Monthly Investment Plan.

119.6

-119.5

117.2

99.4

,98.7

99.8

$2,613,205

$2,763,440

101,741
balances—

Market value of listed bonds

—

Member borrowings on U. S. Govt, issues—
Member borrowings on other collateral

ESTATE

FINANCING
U.

Savings

Insurance

Banks

loan

and

—

HOME

Jan.

trust

savings

.April
.April
-April

110.5

*110.5

109.5

109.7

108.7

108.4

104.6

86.6

125.8

125.9

125.3

201,174,403
111,805,160

204,969,173
106,779,763

207,719,498
101,316,654

261,069

270,630

75,050

1,795,648

1,665,781

2,158,264

$665,816

$658,837

124,674

112,507
260,132

133,612
352,771
116,755
303,865

BANK

companies.
banks

279,850

institutions

GROSS

325,019

343,691

DEBT

DIRECT

362,853

376,440

$1,781,948

—

STATES

828,127

omitted):

associations

lending

Total

UNITED

34,672

322,475

NON-FARM
LOAN

(000's

companies

and

Mutual

126,095

328,325
936,509

110,729
322,407

credit

938,685

97,711

free

311,811

$627,560

in banks in

90.2

1,000,000 barrels of foreign crude runs.
§Based on new annual capacity of
140,742,570 tons
Jan. 1, 1957 basis of 133,459,150 tons.
tNumber of orders not reported since introduction of
JPrime Western Zinc sold
on delivered basis at centers where
freight from East St. Louis exceeds

Digitized one-half cent pound.
for FRASER

foods.

119.G

.April

than farm

2,569

accounts—

balances

customers

Market value of listed

Miscellaneous

Meats

2,852

INSUR¬

Individuals

(1947-49=100):

foods

4.35

EXCHANGE—

hand and

All

commodities
Farm
products

2.99

4.62

(000's omitted):

extended

AREAS

.Mar. 22

Commodity Group—

4.58

3.12

FORECLOSURES-

AND

carrying

customers'

BOARD—Month

6.47
4.85

4.78

$2,681,734

CORPORATION—Month of Dec

Member

REAL

TRANSACTIONS
(SHARES):

4.16

2,877

(24)—

7.06

4.50

Tel.)

4.62

3.08

4.54
4.71

Tel.

TOTAL

sales

4.49

$30,614,000-

6.92

Amer.

Total of customers'

297,070

Mar. 22

sales

Round-lot purchases by dealers—

$31,834,000

March:

(200)

NEW YORK
As

Afar. 22

$30,576,000

92,167
29,389
46,310

(25)

(15)

Average

YIELD

*41,849

179,061
2,969,632

969,320

$52,854,251

AVERAGE

26,994

40,913

STOCKS—Month

(not incl.

Insurance

161,999
3,200,522
*84,757

26,954

(125)

Railroads
Utilities

FEDERAL

Mar. 22

Short sales

COMMON

87,614

4.35

WEIGHTED

ANCE

Mar. 22

164,344
3,082,433

Silver

NONFARM

SECURITIES

Dollar value
Round-lot sales by dealers—
Number of shares—Total sales.

Other

13,151,208

Mine production of recoverable
metals in the
United States:

446,750

Total sales

136,502

MINES—

1,621,880

Mar. 22

WHOLESALE PRICES, NEW
SERIES

101,565

176,287

10,875,297

1,168,910

.Mar. 22

FOR ACCOUNT OF
MEMBERS
round-lot sales—
Short sales

*110,557

COMMERCE):

Mar. 22

Total

134,291

201,223

1,489,460

.Mar. 22

101,449

136,748

(tons

385,050

Other

*108,590

93,784

(tons of 2,000 pounds)
Refined copper stocks at end of
period
of 2,000 pounds)

METAL

Other

Number

2,096,373

128,299

-Mar. 22

Dollar value
Odd-lot purchases
by dealers (customers' sales)—
Number of orders—Customers'
total sales
Customers' short sales
Customers' other sales

3,136,822

A.—

pounds).

(tons of 2,000 pounds)
to fabricators—

Mar. 22

—

3,250,199

6,859,657
6,604,384
255,273

110.85

purchases
Short sales

EXCHANGE

5,164,965
5,090,436
74,529'

February:

-Mar. 22

Odd-lot sales by dealers
Number of shares

288,995

856,936
567,941

Jan.:

-Mar. 22

sales

137,251

780,096

4,721,309

coke (net tons)
coke stock at end of month

3.86

Total

Other

610,635

47,591

(net tons)——..—
coke (net tons)

Oven

3.91

registered—

$1,467,575

613,080
561,711
424,460

—

Beehive

3.85

TRANSACTIONS FOR ACCOUNT OF
MEM¬
BERS, EXCEPT ODD-LOT DEALERS AND
SPECIALISTS:

Total sales

$1,174,791

;

Production

3.89

April

round-lot transactions for account of
members—
Total purchases
Short sales

$335,400

4,768.900

Month

—

municipal

(BUREAU

3.83

.April 11

Total

$793,500

EN¬

omitted):

construction

State

4.43

April

sales

$345,500

619,384

—

3.95

ROUND-LOT

Other

$89,30C

$1,397,691

CONSTRUCTION

NEWS-RECORD

(000's

Private

4.67

April

transactions Initiated off the floorTotal purchases
Short sales

12,900

24,000

*$90,700

160,712

GINEERING

4.06

.April

the floor-

12,700
24,500

617,595

CIVIL ENGINEERING

4.30

(tons) at end of period.

$52,400

12,600

DIVIDENDS—PUBLICLY REPORTED BY
S.
CORPORATIONS—U, S- DEPT. OF
COMMERCE—Month
of
February
(000's
omitted)
;

4.33

activity.

transactions initiated

*$53,500

January

4.67

OIL, PAINT AND DRUG REPORTER PRICE
INDEX—

Other

377,273,810

COM-

...

In U. S.

Other sales
Total sales

Month

$433,748,495
56,474,685

CASH

4.04

■

in which

-DEPT.

67,583,851

370,747,717

$90,000

4.33

100

96,913,026

$438,331,568

$52,900

City.

;

19,993,116
26, 134,773
96,
,135,839

48,482,655
96,048,886
79,268,506
22,249,456
15,161,781
72,826,312

24,500

4.01

April 15

Short sales

York

INVENTORIES

April 15
.^April 15

Transactions of specialists in stocks
Total purchases

82,763,663

21,315,000

$435,700,934
45,210,172
390,490,762

MERGE NEW SERIES
(Millions of dollars):

4.66

INDEX.

(tons)

States

City_,

New

April 15

NATIONAL PAPERBOARD
ASSOCIATION:
Orders received (tons).

$16,947,232

105,917,664
46,375,698
59,189,999
75,262,050
16,552,056
17,963,027

Pacific

.April 15

Baa

Railroad Group
Public Utilities
Group.
Industrials Group

$20,158,048

69,i031,950
87,i
,666.278

—

York

4 321,406,000

48, 446,721

Central

Total

*279,811,000
5,501,000

CITIES—Month

Central

New

310,240,000
16,587,000

Atlantic

South

27,071,000
18,526,000

97.00

98.25

3.62
;

DUN

—

England

95.16

96.85

98.41

MOODY'S BOND YIELD DAILY
AVERAGES:
U. 8 Government Bonds

AVERAGE

February:

South

29,000

76, 027,883

VALUATION

INC.—315

—

April 15
April 15

Railroad Group
Public Utilities
Group

COMMODITY

New

Middle

*17,572,000

$12, 264,374

PERMIT

BRADSTREET,
'

25,871,000

16,000

27,071,000

Z~'

16.000c

11.800c

April

BUILDING

254,494,000

29.900c

12.000c

Baa

228,684,000

export

31.575c

99.52

Unfilled orders

229,667,000
204,721,000
24,930,000

4,000

Retail.

24.450c

21.425c

April 15

Production

3,784

31,625,000
21,831,000

(barrels)_!
domestic
and

(barrels)
;
Increase all stocks
(barrels)™

Wholesale

April

Aaa

1949

Refined product imports
Indicated
consumption

BUSINESS

$66.49

April

Percentage

114,517

2,374

240,197,000
214,793,000
25,400,000

(barrels)
(barrels)

Natural gasoline
output
output (barrels)
Crude oil imports

308

5.967c

5.967c,

April

Average corporate

MOODY'S

20,354
319,580

98,630

458,235

(barrels of 42 gal¬

Benzol

Outside

336

DAILY AVERAGES:
Government Bonds

Average

238,153

1,778

Domestic crude oil output

April

Louis)

Group

352,496
13,339

78,578

Mountain
125

BOND PRICES

Industrials

12,150

INSTITUTE—Month

Total domestic
production
lons each)

East

336,000

April

(primary pig. 99%) at
(New York) at

tin

PETROLEUM
of December: ■■

622,421

192,201,000
153,761,000
38,440,000

QUOTATIONS):

Domestic refinery at

MOODY'S

213,306.000

158,328,000
54,978,000

copper—

Export refinery at
(New York) at
Lead (St. Louis)
at
Zinc

AMERICAN

644,092

$313,098,000
120,897,000

INC.

Lead

tZinc

Ago

263,099

Year

Month

;

37,594,000

550,095

385,189,000

318,000

355,605

Ir oners

75,295,000

•

*7.290,000

kwh.)

(COMMERCIAL

Aluminum

19,729,000

544,173

$598,495,000

INDEX—FEDERAL RESERVE

Pig iron (per gross ton)
Scrap steel (per gross ton)
METAL

$354,588,000
171,649,000
182,939,000
1 42,432,000
40,507,000

April

...

(RON AGE COMPOSITE PRICES:
Finished steel (per lb.)

532,172
510,699

INSTITUTE:

(in

BRADSTREET,

Dryers

-.April lo

55,165,000

construction

FAILURES

25,427,000

516,225

Federal

Electric

Washers

(barrels)

April

of that dates

Month

HOME

LAUNDRY MANUFACTUR¬
ASSOCIATION—Month of February:
Total home
laundry appliance factory unit
;
sales (domestic)
Combination washer-dryers
:

203,310,000

17,222,000

COAL

KDISON

AMERICAN

8,248,000

construction

State

117,214,000

either for the

are as

ERS

-.April

(bbls.)

and

ENGINEERING

Private

90.4

7,856,000
25,683,000
1,880,000

refineries, bulk terminals, in transit, in pipe lines—

52.5

April

NEWS-RECORD:

Public

1,417,000

(bbls.)

ASSOCIATION OF AMERICAN
RAILROADS:
Revenue freight loaded (number of
cars)
Revenue freight received from
connections

of quotations,

cases

Ago

*48.5

*1,308,000

April

Distillate fuel oil (bbls.) at
Residual fuel oil (bbls.) at

Total

or,

are

Latest

.April

Distillate fuel oil output
fuel oil output

CIVIL

that date,

_•

Residual

Finished

production and other figures for tibi

Dates shown in first column

Year

Ago

§47.5

April

(bbls.)

average

output (bbls.)
Kerosene output (bbls.)

Kerosene

Month

§1,283,000

.April

stills—daily

Gasoline

Stocks at

Week

gallons each)
runs

month ended

April 20

AMERICAN PETROLEUM INSTITUTE:
Crude oil and condensate
output—dally
42

month available.

April 20

Equivalent to—
ingots and castings (net tons)

Steel

Crude

Week

4MEBICAN IRON AND STEEL INSTITUTE:

cover

$1,851,001

$1,942,280

AND

GUARANTEED—(000's omitted):
As of March 31

General

funds

$272,728,185
balances-

Net debt

Computed annual rate-.

6,075,602
$266,652,583
2.725%

$274,781,548
4,393,554

$275,108,008
7,673,283

$270,387,d94

$267,434,725

2.778%

2.726%

77,.

The Commercial and

Thursday, April 17, 1958

Investment Trust of Boston
that in the nine month

period, May 31, 1957 to Feb. 28,
1958, total net assets fell from
$43,938,144 to $38,171,855. Unreal¬
ized profits declined by $7,902,694

Don't Sell America

profits totaled
Gross - income in the
nine months amounted to $1,323,995 while expenses totaled $174,197. Net income totaled $1,149,798.

decade ago,

three months prior to
the fund added to its
holdings of Anaconda, du Pont,

plummet severely to

get down to the peaks of ten years
Specifically, he cited the following gains since 1948: „
"Industrial production has risen 26%.

Motors, International
of Canada, Kenneeott

Nickel Co.

"Retail sales have

S. Steel. Holdings

Copper and U.

125,856

INVESTMENT

which have been

FUND

Mr.

Long made the

point that "It is

has

PROSPECTUS TO
DEALER OR

but

one

recourse—to 'take to the hills' and become an eco¬
buying, not investing, not contributing in any

NATIONAL SECURITIES &

to the economic life of the country, but
what he has. If enough people took this course,

Etlablithed 1930

120 Broadway,

New York 5,

merely preserving

permanent depression a certainty."
country's long-term dynamic growth

RESEARCH CORPORATION

Missile Funds To
Exceed $5 Billion

Up Iii Quarter
In Assets,

glad to send you a free

prospectus describing Atomic
Development Mutual Fund, Inc. This
fund has more than 75 holdings of
stocks selected from among

those

companies active in the atomic
field with the objective of possible
of

Development Securities Co., Inc. Dept
STREET, N. W.

WASHINGTON 7, D. C.

Commonwealth Investment
415 Rust

Send

Building

Fro#

of the
funds

has

been :;an-

"nounced

Francis

Randolph,
Chairman and
t President of
the

•

Fox-Martin

invest¬

ment

compa-

nies.

Milton

its 29th

Immediately
Street

Broad

prior to
joining
Sales Corporation,

Fox-Martin was Vice-Presi¬
dent .of Wellington Distributors,

payments that goes back to the
start of operations. The first quar¬

Mr.;

payment of 20 cents per share
the same as in the first quar¬
ter of 1957. The chairman pointed

inc.1,; and manager of dealer rela¬
tions of Wellington Fund.
Pre¬

ter

was

viously, he

was

manager

of the

Department of Kid¬
out, however, that it meant an in¬
crease*
in
income
of 2.4%
for der, Peabqdy & Co., members of
the. New. York Stock Exchange.
'
shareholders
who
maintained
Mutual Fund

investment

their

tional

distribution

1957

gain.

>!/-f

:•

by taking addi-- ;'.Woodford A. Matlock, who re¬
payment1 of the cently resigned as President of
t -from
realized Broad Street Sales Corporation,
of

number

The

will continue to be associated with

shareholders

Street Investing's Accumulation Plan to
build their investment by periodic

making

use

by plowing back
dividends' and distributions into
additional
shares,
continued to
grow during the first quarter, ac¬
cording to Mr.
Randolph.
The
chairman noted that in the twelve
months since March 31, 1957, the
number of Plan .holders has in¬
creased steadily to a total of 5,861,
lor a gain of 30%.
One out of
every four shareholders, he added,
now uses
the Accumulation Plan.

purchases

the

company

sales consultant.

of Broad

and

Group Securities

;

Stresses Low-Risk
Defensive Stocks
The
of

Fully

Administered

Group Securities, Inc.,

Fund,

leading

in which low-risk
defensive type stocks have been
emphasized
during the current
adjustment period, has further in¬
creased this type of holding dur¬
ing the first quarter of 1958 to
mutual

fund,

poration estimates spending will
in scientific fields, re¬ exceed a
$5 billion annual rate
•Commenting
on
the business 76.11% of its totalcstock invest¬
increases in net assets, for
projects now considered es¬
situation, Mr. Randolph stated that
market value per share (adjusted
ment, according to Herbert R. An¬
sential.
National sponsors;; and
it is important to recognize that
for capital gains) and new sales to
derson, President.
:
manages the National Securities
the current recession is different
the investing public for the March
The extent to which this type
Series of mutual investment funds
in both kind and degree from the
quarter of 1958, compared with the with assets of over $290,000,000.
stock has been favored under to¬
two previous postwar movements,
same period a year ago.
Other space projects now under
1948-49 and 1953-54.; The econ¬ day's conditions is indicated by
The
fund, which will be 20
consideration such as manned sat¬
the rise of 9% in the per share
omy,
exhilarated • and then ex¬
years old on July 7 of this year,
ellite
platforms,
manned lunar hausted by 19 years of only mildly value of The Fully Administered
had net assets of $143,794,000 at
rockets and interplanetary travel
Fund during the first quarter; as
March
interrupted progress, he stated, is
31, 1958, compared with
"could easily cost in the neighbor¬
compared with, a gain of about
now confronted by the twin prob¬
$133,207,000 a year ago. Net asset
hood of $25 billion just to attain
2.5%. in the general market aver¬
lems of over-capacity in industry
value per share increased 2.9% in
the prototype operational stages,"
ages. '
<
and over-satiety of consumers. In
the 12 months period (adjusted
reports Robert Colton, Manager of Mr.
At the end of the first quarter
for a 56-cent capital gains dis¬
Randolp's opinion, continua¬
the investment company's Atomic
the Fund was 27.24% invested in
tion of the recession is more like¬
tribution in 1957), despite a 5.9%
and Electronics Division, in the
decline in the general market as
ly than business recovery in the
April issue of the corporation's
first half of 1958.
The situation
measured by the Dow-Jones In¬
"Atomic Activities" bulletin.
calls for a cautious, flexible in¬
dustrial Average.
a timely
These
figures
compare
with vestment
Net asset value per share was
policy, he noted, but at
atomic energy expenditures which
investment suggestion
the same time the basic strengths
equal to $15.59 ($16.15 adjusted
are
currently running at a $2.5
of the economy and their import¬
for capital gains), compared with
billion
annual rate
and which
ance in the longer range outlook
$15.70 a share a year ago.
have
totaled
about
$17 billion
for business and security markets
TELEVISIONSales of new shares to the in¬
since 1942. ;
Rocket programs,
should not be overlooked.
vesting public increased during
"Atomic Activities"' points
oujt,
ELECTRONICS
the March quarter to $3,872,000,
Common stock holders made up
are
only about half as old "but
from $3,845,000 a year ago.
Re¬ the rate of
FUND, INC.
spending for missiles 77.2% of Broad Street Investing's
demptions for the same period de¬ is
net assets at March 31, as com¬
greater and is increasing more
clined to $1,131,000 from $1,717,pared with 76.7% three months
rapidly."
BEFORE DECIDING
000.
National's review of space tech¬ earlier. New common stock posi¬
In commenting on the current
tions were established during the
nology characterizes the self-sus¬
get the booklet-prospectus and
decline
in
general business, F.
record of this Mutual Fund
taining, civilian * commercial * as¬ quarter by the purchase of 15,700
shares of Carolina Power & Light,
Eberstadt, Chairman, and Francis
from your investment dealer or
pects of the space age as "still
S. Williams, President, said that
vague" but expects that the un¬ 8,800 shares of Marquette Cement,
sales of pharmaceutical products
and 700 shares of Brown Shoe. In¬
precedented expenditures should
are
creases in common stock holdings
running well ahead of last
"produce equally unprecedented
included 12,300 shares of Conti¬
year and most of the drug com¬
opportunities
for
commercial
Television Shares
nental Baking, received
in ex¬
panies are looking forward to an¬ growth."
other good year in 1958. Further¬
change for convertible debentures
Management Corp.
of that company, 10,000 shares of
more,
sales of many consumer
C. R. Schneider Opens
non-durable goods are being well
United States Steel, 5,000 shares
ST. LOUIS, Mo. —' Chris. R. of Maytag, 4,500 shares of Amer¬
maintained. A substantial portion
135 S. La Salle St., Chicago 3,111.
of the fund's assets is now in¬ Schneider is engaging in a securi¬ ican Stores, 2,600 Arkansas Lou¬
.

growth In principal and income.

1033 THIRTIETH

mutual

Whitehall
Fund.,' Inc.,; it

ported

ATOMIC

Atomic

largest

grams

investing

We will be

and

oldest

for missile pro¬
have passed the $3 billionper-year mark and by 1959 Na¬
tional Securities & Research Cor¬
Expenditures

Price

Chemical Fund, Inc., one

Interested
in

it would make
We do not believe that our
has come to an end. ;

MXJ

Chemical Fund

paid iits 113th consecutive
quarterly dividend on March 31'to
maintain a record of continuity of

nomic hermit—not
way

te
;•

year,

current recession
will come
the field open to
those who wish to make short-term forecasts and invite you to
consider this question: are you convinced that in 1968 there will
not be plus signs on the economic ledger, compared with 1958?
Anyone who believes that America's growth is a thing of the past

YOUR INVESTMENT

the December

adjusted for

The Corporation, now in

conceivable that talk and

Na¬

Corpora¬
«
and

tors

value increased.,

gain realized on investments.

subject of predictions as to when the
to an end, Mr. Long stated, "We leave

FOLDER AND

poration,

tional;. Inves¬

distribution of 47 cents from

1957

On the

FREE INFORMATION

;

$20.82 at March 31 from $19.69*
the year. Mr. Ran¬

1957,

Street

Broad-

Investing Cor-

dolph noted that this increase
brought per share asset value back
to about the level at March 31,

prolong or deepen a business decline. Psychological
factors affect business and securities markets. If people decided
not to buy even the soundest securities, the prices of such securities
would drop sharply because of lack of demand."

WRITE FOR

•

at the start of

can

worry

elected
Sales

was

Street

Corporation, ■ 65 Broadway, New
York City, national distributor of
shares of

net

assets.;/

Per share asset
to

Broad

improvement in the

market value of

•'!

..This figure

increase

the

Fox-Martin

Milton

President

the balance of $5,509,-.

054 reflected

increased some 50%.

sound for decades."

assets and

ago."

A MUTUAL

and President.

31, 1957.- According to "Mr. Ran¬
dolph,
new
funds invested ,, by
shareholders
accounted for $2,-

has risen 68%.
"Gross National Product has risen 75%.
"Electric power production has increased more than 120%. .
"Personal savings have risen by more than 250%."
He said that "Clearly the old-fashioned business cycle has not
been eliminated from our economy.
The securities markets re¬
flected this fact in the last half of 1957. But a change in the eco¬
nomic level does not mean a change in time-tested investment
procedures. It does not invalidate principles of long-term investing

Illinois

and

Petroleum
Central Railroad.

board

"Disposable personal income

reduced in General „ Dy¬
namics and entirely eliminated in

were

British

sales and

Broad Street Sales

announced April 16

compared with $94,805,240 at Dec.

others, would have to

personal savings, among

retail

28,

General

cis F.

in contrasting

the

Feb.

high

by Fran¬
Randolph, Chairnian.pf the

was

today's statistics with those of a
said that "current figures for gross national product,

Long,

Mr.

Fox-Martin President of

$102,-

mutual fund, it

for the diversified

Short, Says Hugh Long

Louisiana Land

Street In¬

440.150 at March 3i; a record

annual shareholder meeting, Hugh W. Long, Presi¬
dent of Fundamental Investors, Inc., said: "If Rip Van Winkle
had fallen asleep in 1948 and awakened today and looked around,
he'd think we were in the midst of a dynamic industrial boom."

realized

while

tional Lead.

High

of Broad

assets

vesting Corporation rose to

At the 26th

$601,782.

of Bethlehem

Net

ROBERT R. RICH

discloses

shares
shares

At All-Time

Mutual Funds

Of Boston
The

.'Steel, 7,200
& Ex¬
ploration, and 5,300 shares of Na¬

Broad Street. Assets

Investment Trust

Financial Chronicle.

<1778)

•

Company

San Francisco

Booklet-Prospectus

vested

such

duce

companies which
products..

pro¬

ties business from offices at

(Special to The Financial Chronicle)

Neb. — Howard KaiDENVER, Colo.—Ray L. Helton,
S. Seiner and Louis
Weiner
have
formed
-Mutual Melvin ,0. Lindquist and William
Funds of Omaha with offices in E. Widick have become associated
OMAHA,

man,

the

Hal

Karbach

Building

in the securities

business.

engage

Securities

with

Ideal

National Bank Building.

Gas, 2,300 shares of Mon¬
1,800
shares
of
Warner-Lambert
Pharmaceutical
isiana
tana

With Ideal Sees.

Mutual Funds of Omaha
street

1056

Hopedale.

Company,

Power,

115 Broadway, New

York d,N.Y.

Electric.

| Name

Investing's holding
in the common stock of Iowa Pub¬
lic Service was eliminated by the

| Address

and

1,600 shares of Atlantic City

Broad Street

sale

were

reduced

6,700

shares.
Holdings
by the sale of 15,000

Gty-State

187

Volume

Number 5734

The Commercial and Financial Chronicle

wm
bonds, 2.74%. in bank and finance,-ment objective of the fund and.
stocks,'8.34% in food,Tl0.53^in:- identifies 'the fund as aipart of
merchandising, 16.34% in tobacco,'r the :Knickerbocker family," v Mr.
Net income In fiscal year ended Feb. 28 of
: 17.13 %
ih utilities, - and* 1.40 %s in' Pettit stated/;. The. fund-'-was * or- :
$4,786,000 reflects
?' cashft ?
':
•
vr;Paganized in 1953 and its shares are,,
0% gain over previous year. Findings in customer
survey
ri-/portfolio -purchases' during:* the now nationally distributed. Knickinclude opinion that 72% believe a Democrat wfll be
elected
first
quarter
included • $100,000 erbacker. Shares
also
sponsors
President in 1960.
Chicago, Burlington and Quirtcy Knickerbocker Fund, ; a mutual
; 4%s, $100,0000 Chicagot Rock la-xfund^designed.;.;for ; income,ipur-.
V The nationwide investment firm
and all of it is set aside for educa*. land: ;5 lis,,p
$100-,000 ^Oamhlercigl^posesiw. .^-'1,2 ',
a V,'.~
of Merrill Lynch, Pierce, Fenner
tional, religious and charitable orf Credit 4I«s», l,500 Chase Manhat'i
& Smith had record gross revenue
ganizations. Together with firm
! tail Bank; 20OCJ.T.
Financial,2Q0-'--: First- in vectors Fvrkanrlc
in the fiscal year ended Feb.
28, donations of $500,000, this means
Commercial Credit, 1,000 Hanover£!^V™V?8W>rS/"W10*
$1,939,000 of firm income for the
Bank, 1,000 f>iHsb,ury; Mills,v3,h00 ^;:-First Investors Corporation, of
fiscal year will go to
philanthropy,
United Biscuit and liOOO Wrigley.x 120 Wall Street, New York, specThis does not include substantial
i Holdings ^ of- 2,500
American^;alist§.;m Mutual ^ Funds -since
personal contributions of individSmelting and Refining and-of ~ 4,--1930,. Ijaye opened a branch office
ual partners, i
000 Sterling Drug were sold^. r ; ihr-Washington, D. C. ,under the
c*.!
v ,/,'si .--*••• direction of Mr,,Harvey L. NeiDuring the fiscal year the firm

Merrill

Lynch Reports Record Gross Revenue

•

;

•

Worth

Priced
;

The
xne

existence of

jT
ClOSed"

new

Inc.,

Mr. Huffines. was

formerly

intends

Vincent Cullen Pres.
-

m^m mm-

undervalued

■

secu-

•

with, the

investment

nounced.

Cullen
ceeds

an,{l is in the process of registering
its

stock-for public sale.

common

The

offering- is

-public

to
y

securities will' be

made

400,000
has

Until

•

Chairman

foreign offices in 112 cities
world, inched to a new all
allUirtVi
r\4r
<tQ/i Afjo nnrv
1 ti)
high of $84,462,000, or 1%

fiwiA

a^ye fiscal 1957.

derwriting firm, to offer the

world.

stock

basis.

Thomas

President

Corp

the

com-

"best^hfforts"

;

Vice-President

wiU

director•

Vincent Culle„

charge

its

ment

nr{f^{„kn„.

New York office. Mr. Darst is the

contributions

formerly associated with other inhas been

houses.
a

Mr.

Corporation,
0

se-

The
Fund

principal
is

now

Corp.;

office

1407

Worth

New

York City, where Mr. Huffines makes his headquarters.
In

discussing Worth Fund's in-

vestment plans, Mr. Huffines said:
'The company was -organized for
the purpose of concentrating its
investments

primarily in

dustries

which

time

its

investment

based

ners

reasonable

likelihood

in¬

time

allied

source

industries

^MerruTLvnch separated
come

which

Springs

Founda-

intend

65%

^assets

;

Worth

Fund

has

15-man

other

initial? stockholders:

already

subscribed

of stock.

have

47,210
,

Capital Name Changed
and

managed
firm

counsel

Karl

Pettit

Co., 20 Exchange Place, has been
renamed

Knickerbocker

Fund, Inc., it
Karl

Fund,
more

announced

Pettit, Sr., President

Knickerbocker
name,

was

Growth

Shares.

Knickerbocker
was

selected

The

by
of

new

Growth
because
it

closely describes the invest-

the

first

half

report

a
~

the

an-

presentation

the results of an investor survey
m3(le by the firm. Mr. McCarthy

an(1

most

comprehensive

survey

W0/^df> up ^ther than down.
a point

^st ot

ite

of national

<:ust<>mers

in-

think

^ f be elected Preside^ln 1960~? 2/a-to-1 majority,
The firm pointed out it did not

lnvestors " Merrill Lynch mailed "thought" would be elected. Mer-

WOODAI-L |NDUStrils

of the

formerly
of the

President

Insurance

and

director

Society of New

the

able

May

1958, to

1,
of

per

stock, pay¬

common

record

business

per

dividend of
the 5%

declared payable June 2, 1958, to
stockholders of record May 15,1958.

stockholders of record at the

close of business

April18,1958.

BIRNY MASON, JR.
Vice-President and Secretary

A regular quarterly dividend of 30c
per

the Common Stock

1958, to stockholders of record May

15, 1958.
M. E. GRIFFIN,

CORPORATION

UNION CARBIDE

has been declared payable May 31,

Secretary-Treasurer

..April 16, 1958.
WILLIAM H. BROWN

THE SOUTHERN COMPANY
(IN CO It PO BAT ED)

MEETING NOTICE

The Board of Directors has de¬
clared

quarterly dividend of
share on the out¬
standing shares of common
stock of the Company, payable
on June 6, 1958 to holders of
a

30 cents per

ALUSXHAIMERS
MFG. CO.

record

Milwaukee, Wisconsin

Tobacco

Notice of

tomiany

ANNUAL MEETING OF STOCKHOLDERS
to be Jwld

May 7,1151

the close of business

May 5,1958.

THE SOUTHERN COMPANY SYSTEM
Serving the Southeast through:
Ai.ahama Power Company

Gborcia Power Company
Gulp Power Company

Mississippi Power Company

L. H. Jaeger,
Vice President and Treasurer

Southern Services,

Inc.

•

Makers of
NOTICE IS

IIEREBY'gIVEN. that

Comet, Winsten, Salem t Cavalier

the Annual Meeting of stockholders of
ALUS-CHALMERS

MANUFAC-

~^TURING

COMPANY, a Delaware
corporation
(hereinafter- called
the
*V "Company''), will be held at the general
ofihres {if'tHie'Company, 1205®outh 70th
Street, West A'Uis, Wweansm, «n Wed¬
nesday, May 7, >1968, at 11^)0 A.M.
(Central Daylight Time), tfor the following purposes, or any tlwreof:
l.; ,To«leet
•;

Board of Directors;

To consider and transact any other
business that .may -properly;-come

before the meeting or any
ment thereof.
The

Board

Directors

adjourn¬

Prince

cigarettes

,V .Carter Hall

-•*'

;

Albert, Geerge Washington

smoking tobacco

GAS
QUARTERLY DIVIDEND
A

dividend

quarterly

cents

clared

per
on

of 90

share has been de¬
the

Common

TRANSMISSION COMPANY
AMERICA'S LEADING TRANSPORTER OF NATURAL GAS

and
HOUSTON,TEXAS

New Class B Common stodks

has

fixed

of the Company,

payable June

March 20, 1958, as the record date for
the determination of the common stock¬

holders entitled to notice of and to vote

record at the close of business

at this annual

meeting

or any

adjourn¬

ment thereof.

By order of the Board of Directors
ARCHIE

Dated:-March 20, 1958

1958

stockholders

W. J. CONRAD,

Secretary
Winston-Salem, N. C.

April 11, 1958

The

regular quarterly dividend of 35c per

DIVIDEND

May 15, 1958.

DENNIS,
Secretary

Con*

(90*f) per share on the outstanding
capital stock of thisCorporation has
been declared, payable June 2,1958

Vice President and Treasurer

York.

regular quarterly

31%^
A cash dividend of Ninety cents

American

fifty cents (50}f)

Man.

was

dDKlQOK).

Viscose Corporation, at their
regular meeting on April 2,
1958, declared a dividend
of

Treatv

DIVIDEND NOTICES

vertible Preferred Stock has been

the

investment

by the
of

its in-

DIVIDEND NOTICE

shareholders

'•1,

Capital Venture Fund, sponsored
by
Knickerbocker Shares, Inc.,

™ar£ei £n F1?. 1

•

President

ment Corporation. Mr. Cullen

the company's gross,
such; securities.:
'

Board of Directors many of whom
are connected with various
phases \
of the textile industry. They and.

An unusual

Viscose

merger with The Excess Manage-

business

Corporation

agement Corporation, prior to its

up"

general

to4 be about the same as in

American

AVISCOl

director of Th

the basis of long-

initially to;invest

with

managing partner the last half, of 1957. the the rest,
Of market
two-to-one believed

Dec 16 1957
~
'
An unusual feature

DIVIDEND NOTICES

Directors

ana aireclor 01 Ane treaty Man-

term economic and related factors

and

market

who

the reinsurance field

afford

now

the

into two categories:

investment

undervalued

their share of firm

(5)

activity, most customers expected

In 1950 Mr. Cullen entered

capital
appreciation and long-term capital
gains. We believe that the textile
and

reinsurance

^Infantile Paralysis.

judgment fhere exist"
situations
with, the

tliose

from

white

'incom0) net income available to ever made of the attitudes, activi- ask the political affiliation of its
partners amounted to $4,786,000, ties and aims of United States customers but only whom
they

consult-

tdowi,„j„

1949i

Broadway,

and

curities for many years. Mr, Huf-> " He wa£ President,of National
fines is a controlling stockholder -Surety Corporation from
1933 to

of Cherokee Securities

behalf of the firm

tion and the National Foundation

Robinson

specialist in textile

3rSamzation, a trustee of The East
{Brooklyn Savings Bank; the

proprietor- of Thomas Darst & Co.,
Southern Pines, N. C;, and was -Georgia, Warm
vestment

He is

Treaty Manage-

and Roy Robinson

blue

and Michael W. McCarthy,

insurance

JC... -DaBst,:::J]r:>-.is■
-"and
Cherokee Securities ant to The Excess

16-page

report is signed by both Mr. Smith

uual

After educational and charitable

perience :in

mon

The

AY*

time

new

the Board,

with Cherokee Securities corp.- of >
Southern Pines, N. C., a new un- '

•

the

tlSn

in the

peak of 20.3%, compared
with
19.6% in the previous year and
12% ten years ago.

(1) the almost 300,000 questionnaires to rill Lynch added: "We do not jreestate of founding partner, Charles its customers and received 125,000 gard ourselves as political analysts.
Mr. Cullen's e.
Merrill; (2) all other partners, returns for a 42% response. The We simply record the figure as
ac
groun
Merrill Lynch income available
following
are
some
important the opinion of a small army of
includes
ex¬
to the estate was put at $1,439,000
citizens.'
highlights of the survey:
tensive
ex¬
of

agreement

Karl

moves

who

Fund, ; Inc. 'wills' offer
shares at $12.50 a share.

entered into

Mr.

suc-

expected
then,
publicly "sold

of feted for sale.

Worth
It

shortly.

business in the first half
^.° continue "about the
*n
last half of 1957.
Most of the rest anticipated gen®FaL busmess activity would get
better rather than worse.

has

.The ;

companyr

has registered

con-1

Lynch

broaden

Lynch customers were generally
'optimistic: For the most part they

f und. Inc., it of $500,000 and estimated Federal said: -"We have just completed
been anpersonal income taxes of the part- what we believe to be the largest

SEC

revenues

h«

and six
and six

Vmcent Cullen, d l r e c t o r of
Knickerbocker Shares, v;Inc., has
been elected President and a director,fof., Knickerbocker Growth

oneratine

iTSi!

firm

...-

rities and special situations in the

company

- partner
Winthrop
Smith announced April 16.

Total
-

op-

/ textile and other industries.

Winthrop H. Smith Michael W.McCarthy

KlflCkCfbOCKGr FUlfll
■

seek'investment

and Phila-

of odd-lot business reached

Merrill

efforts

with

compared

ownership, the firm's percentage

directing

jooara
Board

portunities in

Reflecting
tinued

are

Haekensack, N. J

delphia, Pa.

Frank G. Biiiswanger, Inc., southi'era division.
The new company

Branches

years.

an(j

Corporation -and,,llf
Chairman-ofcnairman

Amerotron

three

antTStffacuse, N. Y.; Newark

Burlington Mills Cor-

currently
currently

new

••

poration of New York, Textron,'
is
is

•

Exchange,

sixth

the

faIo

Jr., President and Chairman of the
President of

J2 haf security holdings

on?

in fiscal 1957.

iri Manhattan, Brooklyn, Jamaica,
MindAln^'TTfintiihn'tAv-i CfnfDn^
Mineola; Huntington Station; Bu{-

•

Out of the
.total 125,000 who answered, only

12.0%

; the. last

diversified -V'iK
non-djversified--investment
Worth FUnd, Iric •,f is
company,
Fund, Inc.,
anounced by Robert ;L. Huffines,
Board.

almost half have security invest-

Stock

office the ;company has opened in

exi^nce. ox a new ciosea-

end,

folios valued at under $5,000; While
;ments under $10,000.

District.This

;

porate security in 1950 or later,
(3) About one-third of the investors who replied have port-

Street, N. W;, in the heart of'the

<2) More than half of the 125,000 persons who replied (63,400 to
be exact) bought their first co*-

handled 12.6% of all public round-above $100,000.
lot business
on
the New York »
(4) At the end of 1957, Merrill

is third choice.

bIum Manager. Building,' office G
in ' the Albee
The new 1426 U

Fuiltl,IllC.

.(1)
The majority of Merrill
Lynch
customers
<56% J
listed
"capital
appreciation'?
as
their
primary investment objective.
"Safety
of
capital"
is
second
(24%), while "liberal dividends"

share has been declared on the Common

NO. 43

Stock, payable June 16, 1958 to stock¬
holders of record

May 23, 1958.

J. E. IVINS,

Secretary

CD < y,
$0
(17^0)

T/ie Commercial and Financial Chronicle

Thursday, April 17, 1958

Y'
!

•v^-'u

BUSINESS BUZZ
on...
Behind-the-Scene Interpretations

have said

Richard M. Nixon,
the
strong
"vice commander"
of the Eisenhower Administration, is getting ready to leave
on an important good will tour
President,

•

Accompanied

Mrs. Nixon, he will leave
April 27 and is scheduled to
Tetu.rn on May 15. 'Y'CvY,.
/
The Vice-President, whowill
by

will not make

but

talks,

countries.

;

the

not

and

taore

is Mr.

mittee

little, if any respect
Eisenhower. There
several reasons involving the

mighty

game

York.
j

Y'.\

■■■;,.

ica

assignment to Latin Amer¬
into the overall pattern

fit
the

Nixon

this

Vice-President

active

Perhaps more than the Presi¬
dent
himself, Vice-President
Nixon
is
currently
receiving

heavily on him, be¬
complete confidence in the Californian.
has leaned

has

Political

Stature

betwee

Sandwiched

for

assignments

the

Chief

the

Vice-President

;;

d p i n g

political

grow

of his

has
'

own

The

stature,

party.

day,, if necessary.
>.

stature with a
good many rank and file Deinocrats. However, the professional
Democrats in Washington and

.grown

jaundiced

eye.

dent Truman

many

them expect him to be the
President

the

United

any

Denies Truman's Charge
Truman

Ex-Pres.

the

Vice-President

The
■»

was a

"traitor/* in all

the

Communist

infiltration', in

the

Democratic

administration J

(Truman)

dining
World

and

immediately after

War II.

man,

Canada

going to manufacture goods or
drill for oil, or carry on mining
operations, they first must have!
local participation, if not local

control, before they make thehj
'

investments.

It has proven to be

want

Canada
*

say

before
seen

taking

their

place
are

and

Everywhere

and

there

low

officials

said

The

head

of the

gov¬

runways.

officials of the

United States Government turn
fabulous

tious, they

pro¬

tliey

Some of the air¬

in- most

are .more

its

sec-

concerned

with Russia's economic penetra¬

tion than they

are

military threat.

that

red

Stead

economic

They fear
menace

rising and will get stronger.

How

Corporation Works — Il¬
booklet explaining

structure of a modern corpora¬

tion

—

quest)..

Railroads,- Washington

ican
D. C.

Shift of

Leonard

Fanning—Gulf Oil

1166,

Box

Botany Mills
Campbell Co. Com.
"
.

20 BROAD STREET

Exchange

•

GArfield 1-0225

•

National Co.

Co. Inc.

uiwiyji 1

NEW YORK 5, N. Y.
.

i
•

Flagg Utica

SECURITIES SPECIALISTS

TEL: HANOVER 2-0050

Mo.

Power

Petroleum

Morgan Engineering

Carl Marks

SCHERCK, RICHTER COMPANY
St. Louis 2,

World

Away From the United States—

United States Envelope

FOREIGN

SL 456

(paper).

Fashion Park

Sulphur

320 N. 4th St.

of the

railroads—Association of Amer¬

Indian Head Mills

Bought—Sold—Quoted

Teletype

Prevention"—Discus¬

present/plight

sion

;

"Ounce

A. S.

Old Ben Coal

Bell

Corpo¬

American Cement

Koehring Co.

Stock

American Visual

ration, 460 Fourth Avenue, New
York 16, N. Y. (paper), 25 cents
per copy (quantity prices on re¬

TRADING MARKETS

Lone Star Steel

Midwest

■

lustrated

P.
[This column is intended to re¬
flect the "behind the scene" inter¬ Pittsburgh 30, Pa.
pretation from the nation's Capital
and may or may not coincide with
the "Chronicle's" own views.]

Delhi-Taylor

Member

Hamp¬
Washing¬

New

1606

Avenue, N. W.,

Northwest Production

f.,,

Rico—William

National Planning

9, D. C., $2.00.

Corporation,

Anheuser Buscli

Pan American

—

Association,
shire
ton

toward Rps-

sia's

sure.

wealth,

Puerto

ment
r

their eyes toward Africa and

landed at modern airports with

long

re-

Fomento—The Economic Develop¬
-

that

learn

Meantime,
~

wealth.

marked

Liberia.

never

paradoxes, to be
poverty

per

;

anti-American sentiment lies in

continent.

the

N. Y., 50 cents
(quantity prices on
quest). - /
22,

copy

Many Americans will be sur¬

lives had they

—

Devel¬

York

Africa is also wealthy

prised .to

tour by

much construction as

Future

and

Nation's

United

the

Apparently
to invest
developing mineral

preparing

in water and timber.*

that after

Past

Its

money

Capital

States:

Committee for Economic

opment, 711 Fifth Avenue, New

resources.

independent like
independent' from

plane around Africa that

Growth

Economic

ernment in that

Some officials in the

duction,

Olin Oil & Gas

in Africa.

Russia

remain strong.

There

Universal Match

and
red

various provinces.

Britain, yet her ties with Britain

There

Colorado Oil & Gas

the

province speaks
English as good or better than
Land of Paradoxes
your next door neighbor.
Most
The whole of Africa is secth-j.
of his higher education was ob¬
ing. There is a spirit of great
tained in Washington, D. C. For
nationalism prevailing. It is not
some
reason, however, he does
that the African provinces tied
not appear to like the United
to Britain and France want to
States, which played a large part
completely divorce themselves
in founding of this republic of
from those countries, but they
'.43,000 square miles.
-Y

Africa, have learned from ex¬
perience, a good lesson in eco¬
nomics. For instance if they are

that

Amer 1 ca,

that is rising

opening trade negotiations
trade
relations
with the

ex-,

present facilities.

States.

business

and

the building of power
facilities will be tripled over the

anxious to make investments in

Latin

that

says

American

sia is

Bethle¬

Steel,

others have

warn

men

series of

by Frederick R. Kappel,
American
Telephone
&
Telegraph Company, 195 Broad¬
way, New York 7, N. Y. (paper).

Soviet Russia is moving in. Rus¬

has..untold

few years

Africa's Great Potential

never ' has

for hinting

apologized

•

paradoxes in

tremendous, and within the next
»

Nixon has grown in stature.

politically, than probably
American citizen.

menace

vestment"'-participation.- - The
power resources of Africa are

ing Mr. Nixon, both personallyand

States

SteeT and

Design for Service in a Growing
articles

At the same time officials

business

panded operations with local inJ

Thus, it is little wonder that Mr.

hat¬

nearer

United
hem

Presidential

1961, and

are

Africa

Yorio,?16« N. Y.
(quantity

cents
request).
50

Nation—Reprints of

Africa is fabulously rich.

confident that he will be the

but

prices

re¬

The "Red" Menace

possibilities. The Union of South

However, the real truth is, no

nominee

In high

men

bringing back

are

There

Africa,

• •

Republican party's

FoYmer Presi-

comes

are

elsewhere still look at him with
a

Africa.

doubt, thousands of those invi¬
tations come from people who

likewise

Vice-President

make- several"speeches

can

and

New

(paper),

sources.

sibilities in scattered sections of

movements, and they know that
the Vice-President is strong and

'particularly with the members
.

United States

Eisenhower's health restricts his

things, besides presiding over
the Senate, that are causing him

men

vast

are

Management

Avenue,

and the people arc

There

pleasant.

^bright stories of investment pos¬

that General

people know

can

Executive of the United States,

Business

ready for the jet age.
are modern and the

are

The hotels

food is good

places in the government of the

speaking invitations at the rate
of 16,000 a year. They pour into
his office on Capitol Hill by the
hundreds each day. The Ameri¬

Crowing

ports

business, because foreign
governments are not apt to rise
up and drive out foreign minor¬
ity investors.

Much ill Demand

na¬

tion has elected. Mr. Eisenhower

cause

smart

and
Alternate | Headquarters — Pre¬
paredness Program for Emer¬
gency
Operations
in
Bank¬
ing — Advisory Committee on
Commercial Bank Preparedness^
Banking Committee on Emer¬
gency Operations, 200 Madison

ALL!

THE LARGEST SKYSCRAPER OF THEM

boy of

the Democratic
party. He has been an effective
speech-maker and, since 1952, it
has pinched some of the Demo¬
crats, particularly the Northern
wing of the party.

important role that Mr,
playing. There is no
question but that he is the most
of

the chief whipping

wing

one

The New. York speech and the

new

...

Vice-President Nixon has be¬
come

711

Continuity

politics.

In New

24)

(April

week

next
•

address the

will

Nixon

Mr.

American Newspaper Publishers

New

Fifth Avenue,
'York 22, N. Y. (paper).

•

Program
— Com¬
Develop¬

Economic

for

ment,

Presidential

the

1958:

for

Committee of the Committee for

Truman has

dollars,

investing more and more

Statement

Policy

Economic Development

for President
are

$1.00.

copy,

Anti-Recession

accord¬

The truth of the matter

Association,

single

hand, Mr. Nixon has
become embittered by the

ing to some of his close friends.

Americans are

University of
Illinois,
1007
West
Nevada
Street, Urbana, 111., $5 per year;

hing

other

actions of Mr. Truman,

rela-

Eisenhower
asked the Nixons to make the
trip. Before leaving for the visit
to the Southern countries, where
President

tions.

Writ¬

Business

etc.—American

a rage.

Writing to For¬
in English,

eign. Businessmen

friends of Mr. Truman

into

for

Education

Writing;

ness

be patched up.

Mr. Truman goes

from

; It is an important trip
the standpoint of friendly

Letter

patch up their
personal differences, whereupon
-

•

Col¬

and

Writing Reports;-Is the Business
Letter
Obsolete?; - Motivation
Research and the Art of Busi¬

get together and

those

with the heads of states of

Busi¬

legiate Education for Business
Administration;
Education for

suggested that the two men

have

major speech. In all the capital
cities he will visit, he will meet

articles

Communication

ness

The breach, as
far as the ex-President is con¬
cerned, is so wide that it can
Some

1958

ciation Bulletin, February,

—Containing

platform.

same

series

Eisenhower, will make a

American Business Writing Asso*

pate in any function where the
Vice-President appears on the

never

from President

messages

carry

■

Vice-President

publicly and privately

Vice-President never levelled
such a charge at Mr. Truman.
Nevertheless, sharp-tongued Mr.
Truman has refused to partici¬

of Latin America.

JL t/ Cv

the

f
1

m/g~i"W M

■»/j

Friends of the

; ; ■ WASHINGTON, D. C.—Vice-

xJL II/IM/

from the Nation's Capital

TELETYPE NY 1 971

lerner «co.
^

Investment Securities

10 Post Office
Kir wwrr

Square/Boston 9, Mass.
Teletype

Telephone
flUb bard 2-1990

BS 69