Full text of Commercial and Financial Chronicle : April 18, 1957, Vol. 185, No. 5630

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OVER-THE-COUNTER MARKET FEATURED

x&*s

IN THIS ISSUE

&
Re*. U. a

Volume 185

Number 5630

New York
7,: N.

Pa*, Office

Y., Thursday, April
18, 1957

Price 40 Cents

Copy

EDITORIAL

See If
If the
squabble between

master General

Congress and

affairs, it would be
costing. This affair itself

approach usually
have to do with
consideration.

American peo¬

Prominent

the

well

worth

what

typical of the

the

postal; service

Congress did
post

that

\
;

not appropriate funds

provide the service
office—at least not

enough
given the degree of
efficiency actually existing.
This is
hardly an unusual occurrence, and, ordi¬
narily, so-called deficiency 4 appropriations arc

made

less

matter of course.

however, there

are

And

so; we

which

are

edified

with

sham

battle

V ;

page

nomic
the

tial

processes

are

the

One

business

is that

de-

cycle

and

the

lates the speed of the
central

asked prices, tend to dilute
investor confidence.
These occasional evidences of
human

•

the

quantity of the economy's money
in-/
and: its outlays,
implying that

non-auction

pating—either offsetting or
exagger¬
ating—the managerial moves.
is

afforded

simpler
reverse

Dr.

Melchior

Palyi

than

buyer to the multi-billion

out

pour

the flood in

Continued

fraternity should not, however, cause
to lose sight of the basic fact that
the

market is by far the
largest in the
world; that it vitally and
indispensably serves the
needs of
every investor from the smallest odd lot

people would submit without antici¬

Theoretically, nothing

boom.

page

dollar institutional in¬

vestor; and finally, as is true of all lines of busi-

■'

Continued

•

telethone:

dealers and investors in corporate
registered with the SEC and poten¬
Registration" Section, starting on page 72.

complete picture of issues
our

"Securities

and

STATE

DISTRIBUTORS

IIAnover 2-3700

now

AND

«■

State, Municipal

MUNICIPAL

CHEMICAL

BONDS

NOW

BANK
MEMBERS

ST., N.V.

NEW

YORK

ANO

Company

AMERICAN STOCK

15 BROAD STREET, NEW YORK 5, N. Y.
CABLE:

COBURNHAM

Bond

T-LWatson&Co.

120

Dept. Teletype: NY 1-708

Net

State, Municipal,

Members

Dl 4-1400

TH.BTVPE NY t-ZIM

Active

Markets

Dealers,

Banks

BOND DEPARTMENT

AVAILABLE

REQUEST

Harris, Upiyam &

OF NEW YORK

EXCHANGES

•

New

York

Stock

BROADWAY, NEW
offices

from

coast

Chase Manhattan

Exchange

YORK
to

bank

coast

Maintained

and

THE CANADIAN BANK

Brokers

ESTABLISHED 1832

Members

CANADIAN

SECURITIES

for California

COMMERCE

Municipals

Rights

County and

New York Stock
Exchange

District Bonds

Commission

Orders

CANADIAN

NEW YORK 4, N. Y.
FIRST

COMPANY
BRIDGEPORT
DALLAS

DIRECT

WIRES TO

All

1-2270

MONTREAL ANO TORONTO

Goodbody

115

BROADWAY

NEW YORK

NORTH

buy

expire
the

the above rights
May 17, 1957,

current

Direct Private

market.
Wires to

Toronto, Montreal, Winnipeg, Calgary,
Vancouver, Victoria and Halifax

Co.

LA SALLE ST.
CHICAGO

MUNICIPAL BOND DEPARTMENT

Domduox Securities
Grporatioti

MEMBERS NEW YORK STOCK
EXCHANGE
PERTH AMBOY

offer

which

DEPARTMENT

Teletype NY

STREET

Executed

Canadian Exchanges At
Regular Rates

American Stock Exchange
25 BROAD

;

THE

THE FIRST NATIONAL CITY BANK

30 BROAD

Bonds and Notes

review"
ARE

and

Housing Agency

"common stock

SECURITIES

Burnham

Public

COPIES OF OUR

CORN EXCHANGE

DEPARTMENT

and

I NVESTM E NT

BOND

page

UNDERWRITERS

Municipal

Securities

REGISTRATION—Underwriters,
a

undertakings in

State and

marginal members of the Over-

the-Counter
anyone

take

money in a recession and to

frailty

the part of a few

driver regu¬
so is the

regulate

occasionally clouded by the antics
some black
sheep. The black sheep
case are those
relatively few dealers who,
by either abetting the distribution of
securities
of
dubious, mythical* or overstated
value; or by
maintaining inordinate spreads between bid and

shbrt

name

scandals of

in this

car,

authority; to

Over-the-Counter Market is somewhat
like
famous and
distinguished family, whose hon¬

•

Market—

explained.

ored

authority is

Over-the-Counter

U. S. Government,

[
-

reversible

ones.'

at that.

are

regulator

arbitrary

mechanical

notice

SECURITIES NOW
securities

DEALERS

as, a

the

The

greeted with endless argument about the
on

policy

European Experience

diversity of issues from triple "A"
municipal;

bonds down to tired uranium
promotions; from shares ef
young enterprises in their earliest
corporate and market
stages, to the elegant equities of renowned
companies
whose skeins of
uninterrupted cash dividends run, in
some
cases, for more than 170 consecutive
years. Dis¬
tinction between auction and

The

critique

Over-the-Counter Market '

integrity;

quickly
of these services cost, and
Continued

Fiscal

Finance:

concise'

also, the availability of
objective,
scientific criteria to guide their
foresight.
'• w
v'
; A second assumption is that
eco¬

There can not be
any doubt at all that a num¬
ber of the services
performed by the post office
of the
country cost much more than the revenue
that they collect.
Suggest the elimination of any
of these and a heated
controversy is

■

Functional

cisions

country just about every conceivable obstacle
placed in the way of those seeking
light on
the subject.

any

*•

automatic processes. This
presupposes managers of
perfect ra¬
tionality and impeccable

several assumptions.
preferable
to
rule,

this

raging,* Ask what

were

based

antagonists strike past one another
with great vim and
vigor. The truth of the matter
is, as all those acquainted with' the facts wel)
know*, that when effort is made to get at the real
problems of the operation of the post offices in

one

its broad

available; and points out that central
banking
under the old-fashioned
gold standard dealt with short:
problems and "did not try to
play the role of Provi¬
dence" with its
accompanying vacillations and blunders. "

(in

the

Enterprise Economist

run

ap¬

parently believe that they can make
political
capital out of the general public reaction to
the
budget proposed by the President in
January.

By IRA U. COBLEIGH

prophecies.,/
lines,:even if accurate

than does the
projection of trend

many who

country's inability to determine the
right amount and
distribution of
investment; concludes national income
accounting offers no more guidance for sound

data

This year,

;

assumptions jv
length British professor's observations of his

quotes at

ex¬

international;

run
monetary planning. Dr. Palyi notes
sumptions of capitalismY
moribundity and birth rate's
decline have been
quietly dropped without benefit of
any
change in the doctrines based on those

under

are

Money Control
longKeynesian as-

;■

Over-the-Counter Market

By MELCHIOR PALYI

economist refers to domestic
and foreign events in
analyzing the fallacies and contradictions of
contra-cyclical finance policies and of

the out¬ i

say

employed when matters

in amounts sufficient
to

pected

virtually all of

fiscal

the Post¬

to arouse the

were

ple generally to the unrealism, not to
right hypocrisy, that surrounds
our

And Modern

40.

Exchange Place, New York 5, N. Y.

Teletype NY

1-702-3

WHitehall 4-8161

BmtkofiVmmrtt

(

NATIONAL™ vYNCS ASSOCIATION
300 MONTGOMERY STREET

SAN FRANCISCO, CAUF.

|
•

;

The Commercial and
2

Financial Chronicle

Thursday, April 18, 1957

...

(1802)
*'

=?T=

-rr

»*<

e/"

■

For

Dealers only

Banks, Brokers,

TheSecurity I Like Best "
' W'

Their Selections

which, each week, a different group of experts
the investment and advisory field from ail sections of the country

A continuous forum in

Because you can

sure

contained in this forum are not intended to be, nor
be regarded, as an offer to sell the securities discussed*)

they to

Speed
Experience

GERALD M. LOEB

Coverage

■■'v/•/

Executions f

5. 'Primary

Markets in more
OTC Issues

than 400

Survival'
Members New York

holding

Natomas

New Yorit Hanseatic
1920

•

SAN

Wires

CHICAGO

•

The v "Nato¬
been

120

BROADWAY, NEW
TEL. REctor

YORK 5

securities jncreasjng

The
i nc

lyoo.
19o6.

says

and

American Furniture

Industries
of Va.

Commonwealth Natural Gas

STRADER and COMPANY, Inc.

Established

111 Broadway. N.

ownership

owned

time

participate.

July

.■

...

Hplihprntpfv
ucLiucidici^

Exploration

•

abandoned.

was

tinportant element.,
situation is the

been

posted. I, personally, have
reader of tjiis column for

years

many

well

'l.

con-

37 Wall Street,

Natomas

torm

^reetve«j£owpai\^

P—s

December of 1956. The
is that the divi¬

growth. It is obvious
capital
require¬
ments both for reduction of in,
j.
.
.
debtedness and for expansion of
and

profit

increased

Tel. MAnover 24850

J. ROSS

known

the situa-

iNei?bitt, Thomson &

favorable tax consideration. As of Dec; "

£ion

but

results in

very

%
1

management

time,

capital gains.

results are secured

Natomas'

and

Wyoming Uranium

enterprise

pointed primarily at

Acoustica Assoc.

new

aims

underj-

the stock should become
popular. Eventually, a more
correctly descriptive name may
be adopted.
.
r
i

stood,

Dakamount Expior.

Brown Allen Chemical

The

•

1956, the net long-term . debt
was slightly under $5 ^jUion. On
the basis of estimated APL divi-

31,

&a,.?rad;fU;;Le?rin„ ^
book
value of Natomas can be

at
,

2-8570—TeletypeJCY 119

"A"

stock

since

Not

epoch
ant

„

APL

March

-A" remains at

The book value of other Natomas

year

i**» 1 -

•

■

Investment Securities,

j9bi,

very

Canadian economy,;
t a.k e n place.

of the

end

ofT last

amounts to about $1.70 more,

since

early/

days
way

the inter¬

est

dians

Canabeen so

by.a

aroused

project of
such
national
•

significance..
-The

longed

p r p

hearings
Ross

Oborno

for 43 Years

*he financing of the Canadianwith
tribulations associated Fathe
page

National Quotatiou B

of
^1S y^^ture were reminiscent-of

f^.s ^hat dogged the progress

Quotation Servic

and

inter-

Continued

Over-the-Counter

and

opposition
certain

negp-

tiations

debt-reduction -has

The purchase of Natomas :involves going into partnership with

of rail¬
building

has

'the common stock of the American President Lines, Signal Oil
purchased an equal amount. '

"Units"

makinj

history

those

Canadian and Domestic

Canadian. Pacific
financing so import-

reduction is conceivable which if ~
achieved would raise the APL pgirjt
of the Natomas book- value to over ■•>
$7.50 a share under the same conditions.
Since
the ~ originalpurchase of APL by the APL

Associates,

■

the

Oil
-heavy

75.

Lines,

of APL

properties

New York 5, N. T.

Dealers Vc-'

Not

quoted

"A",-works out to
approximately $6 per share,

terms

k'*

.Toronto, Canada

Trans-Canada Pipe Lines Limited

calculated as the debt is decreased,

proceeded at a pace faster than
estimated. At the time the Assor
$75 bid, the Natomas equity in ciates bought a 48% interest in
the APL

With

CAPPER & CO.

principal holding of Nator-

is American President

mas

and Director 1
Company, Ltd.

Estimating an annual reduction
the
business
will eliminate or of $400 000 a year, up to. and ilirestrict dividends tor some time clu(jing March n, i960, wouid reT
to come. In other words,-here, is sult in an increa6e in APL part
an opportunity to participate with
ol lhe
Natomas
book vaiUe' W'
successful large scale ownership;- practically $6.4o a share consider-

OBORNE

Ontario Manager

onjy gj[v6s leverage to

policy in the future will be
to the new outlook for

that

inct-iihnhnt

DreVious holding comoanv

attuned

1930

vprv

by the new management in

dend

Underwriters—Distributors

tributor. I have been alerted to
ill the many profitable ideas contained in
use of it., However, I have- never' ex.

Limited,
; \
~ '

INC. 1

audience of initial

j^eep the same

and

Company

Mines

Newmont

official viewpoint

negotiation.. X3ne such venture

solidated

the

Incidentally,

was

mPflns

Prospectus on Request

Direct Wire Dlgby 9-3424

—

ly, under the old management/ a
dividend Of 60C a share was paid
dividends were de-

Bough t—Sold—Qu oted

HEaderson

|:PIPE LINES"I'Xg
Limited
W/
./

or
oi

GAS UNITS

1 Exchange PU,Jersey City,N.J.

Maintained

the- Securities

All

TRANS-CANADA

-pay

QUEBEC NATURAL

•

mention
Shin

Philippine Oil

Y;6 COrtiandt 7-5680

Trading Markets

Firm
V

?reas?n2Insomewhat hcurre^Rvini dividends received from APL to pected the authors behind keep
the;
creasing
somewhat cu-iently.
t
^e interest and amortization original stories to attempt to
this because large owner-.,
inan uxl&llldl
iu
■ vy
*
littip
if it
is 011 a long-teim installment loan an unknown reader posted unless,
involuofarl^ inherited _i oimer- made at the time APL fetock by a rof course, I made direct contact,
ofathe original, involuntary
inherited. Former
acquisition of th6
"
■
-

FLORIDA STEEL CORP.

Official Films

words,

participation.

ST Wall St., N. Y.

1897

Tokyo — 70 Branches
Brokers ■& Investment Bankers
Office

readers

and Dealers

ESTABLISHED

' "»

Home

^ American flagships w iTeonJ
ablished
vaJd t end ?.
i^inels wuf^' be maintairiid
q/ inH hevnnd
through 19o7 and beyond.
•
The company is increasing its
investments in this basic shipping

here is true
ownership-management with no
discernible
speculative
outside
other

Ii:

TWXLY77

For Banks, Brokers

vr.

100,000 shares. The ag-

directors or'officers

Lynchburg, Va.
LD39

excess

that

Natomas

Life Insurance Co.

write '

WISENER AND COMPANY
sUC
as the Natomas•.f0jj0W jt blindly but rather as a
•
Water -Company, the cqmpany s: ciue for direction in which to Syll;g|C //. LIMITED..;
73 King St West
Torooto, Canada
gregate remuneration paid to all Jand.s ln Sacramento County, Call- make your, own investigation. It directors' and
officers .for
the forma, .and-to investigating pos- is important if an' investor likes
Trading ttefk
"
EMNre
fiscal year ending Sept. 30, 1956,
ateas of expansion, of its an jdea artd makes a commitment
and for the months of October, mining operations in the United
he shouldi live "with his nexv
November
and
December* 1956 States • and foreign countries as investment and personally follow
was
slightly over $60,000. The
elt^er as i°mt ventures with
company's affairs very closely,
company has
no profit sharing,
^on?.P.ail15s or
Information and opinions, change
& Denton
pension, retirement, savings or, *"e.?np oi
several attractive as new developments occur and it
either Projects were under mx^stigatiorir. £g almost impossible to attempt to
similar
plan
in ; which

Trading Interest fin

Basset! Furniture

Securities Co., Ltd.

over

Call

Yamaichi

• —
- -—
paid to mining exploration. The
inter-corporation
relations
are
sucb
such
that
jn
effect
e{fect iow.taXed,
low-taxed,

brightened for a greater ji0iding company dividend income
measure of economic and political can be used to reduce debt. Thus,
stability in countries along the^ botb tbe tax and leverage-situa-

Loeb

■

wili

attention

expert

For current information

Piiiyc

be
■

of American
that-prosthat/pros-

report

Lines

ment
to
exparKj and improve
Natomas' other interests. In time,
^ -ls an ecjLlcated guess to feel that

anv

2-7815

appear to be stirring due *
improved Japanese economy. J

to
:

fio"s
favorable.. This is
truly a high bracket investor s
u
situation- Th? technical position is
st,'ong
m tlme/f Natomas
new activities come to more genera 1 notice . the stock should
gradually grow in popularity,
This will be helped when, as and
because of the complete lack of
As to the older, large scale jf? the name is changed, which I
widespread stale public posi- mechanized > mining activities ot think is certain to come about
tion. Of the 3V4
million shares Natomas, the decline: in decent- sooner or later, ^
outstanding as of Dec. 31,-1956, .years may be improved as aresult -y- jh its pafeticular category, Nato875,000 shares were owned oi new expl°r^toi^. activities _ m. mag js one of the securities I like
by Ralph K. Davies, Chairman of, Py°Svess. The new management is best
propef use of this inthe corporation. Other directors of f'1^0 Paymg attention to subsidiary £ormatjQn
is^ Gf course, not to

practically

now

pects are

occurred. The averprobably still thinks of
it as an unprofitable and exhausting placer mining situation. As
its
new
status becomes understood. new interest should develop,
Therefore, I believe the technical
position is exceptionally strong

(

Exchange

companies, earn-

company

annual
annua

1956

character of

York Stock Exchange

Stock

me ,year
thevyear

tnrougnout
throughout

President

the company

McDonnell&fo.
American

shipping

the
,,

age person

steamship

of $1.04 per share would'.have
been realized if Natomas had h^ld

when a
complete
change in the

RIGHTS & SCRIP

stationary levels for three years ./

earnings of the ability of the new manage-

undistributed

ings

1956,

scope

the

; the

n a 111 e

Imeaningless
since June 1,

Specialists in

.•/.i:-'" :/5V S75 a share bid. A purchase of
Natomas share- Natomas is also a speculation on

i Considering-the
in

relatively

New

JAPANESE
after- remaining

has

Principal Cities

branch offices

out

mas"

FRANCISCO

Members

Mobile, Ala. =./,>/?• •

wire* to

Direct

just been issued.•/•< :

capital gains
purchases.

York 5

BOSTON

•

,/V--

w;iSTocKS/;;

long-term

Teletype NY 1-40

Since 1917

directions/in/ which /jaThe

profitable

out

PHILADELPHIA
Private

f';

ryy. Mmwor 2-0700
NV1-15S7
New Orleans, La. - Birmingham, Ala.

keen group. There are

approximately.-; $1

Exchange *

Exchange '

19 Rector St., New York 6, N. Y.

tial in seeking

Member

120 Broadway, New

Members Netc York Stock

j" Members' American stock

feel are essen¬

Stock ExcJtaitf*

value of*

Corporation

WOrth 4-2300

a ' very ^

AFU stock lifts the book:, value- several :

Natomas, selling at

Established

JBoagfrt~*^rSoidr*-Qnotad*

Canada (Page 2)

;cThe

Stock Exchange relationship is roughly ten for.one.
Exchanges . In other words/ a 10-point rise-in

^un<!s
Ross Ofcwrne, Onta-

'
7% .on +h
the, of .Natomas by 10-point decline m worthwhile profit*i can,uoccur.
and likewise a
< « /
/ :
'
'•
New York Stock Exchange, is a APL "A" drops the book value,-of h10^ , iijiportgnt/ perhaps,
is a
special situation that meets several Natomas approximately. SI. :
' further increase in the
of the important major qualifieabest current sources for .'American' President Linep.. This
tions that I
•complete information on the situ- stock was originally purchased by
.

Associate

company.

and Other Leading

anythingSTEINER,ROUSE & CO.

Natomas' Comoanv

American

■

precisely
the
current
market > •
price. More than
the,-future of the shipping; com-/
Investment pany wiu govern the future of-the% ' Toronto,

for

"Battle

Author

4. Reliable

;

Louisiana; Securities

Gerald M.

—

Loeb, Partner, E. E;. Huttpn
Co., New.York City;;(Page 2)>

total of 67.70, or almost

Huttoii & Co.
New York City /

Partner, E. F.

3. Nationwide

making

Company

N'atomas

(The articles

1
2.

for favoring a particular security.

participate and give their reasons
axe

Alabama &

Participants and

Forum

Try "HANSEATIC"

f This Week's

.1.

Bstabti9he& 1913
'

46 Front Street
CHICAGO

New York
BAN

Volume 135

Number 5630
'■

•

The Commercial
and: Financial
Chronicle

...

■

•

(1803)

Future of Drugs and Biochemicals
;

;

By ALLAN J. GREENE*

■

Co., Inc.i ;

"OVER-THE-COUNTER MARKET

*■

■

t *

Administrative Vice-President* Chas.
Pfizer
c'jv
Brook,yn» New York

INDISPENSABLE
TO INVESTORS AND
THE NATION'S
BUSINESS *

Pharmaceutical-chemical
sales

will continue

executive

predicts

lead the chemical

; '

tain but death and

he left

one

ditional

taxes.

potential

only

that

seen

make

different

the

have
asked

to¬

.into

the

1965

Now

to-

and

'things will be
and

what

i'ield

cals.. Some weeks
a

meeting in New York at which
Morehead Patterson, Chair¬
and President of the
Ameri¬
can
Machine and Foundry Com¬

were

reflected

Let

one

spite

teresting. I claim
in

•ers

this

field

special

and

that any , prediction' made
here in the first quarter of 1957
to

what

will

happen by

OIL

DuMONT

BROADCASTING

Fearing No Foreign Foe

the

tions

1965

our

'may be

the

progress

outmoded by 1958 or even
later in this ~ same calendar

GETCHELL

Future Rail
Passenger Service Can Be
Bright and
—William R. Main

Exciting

MINES
30

The Federal Reserve

System—A. L. Mills, Jr

About the Chemical
Industry

industry and is:
ever-increasing
programs.;/
;^;

Future of Drugs and

fact

are

the

Return

future,

the

pdst

decade.

Spokane Stock Exchange

D. Gehman__

;1 Exchange PI., Jersey
City

___

DIgby 4-4970

new

The New Age of

•»;

^4—Bernard

Refractory Metals

and the Promise of
Ceramics
_i.
1 _L 1 _'_______ 38

KopelmanL__^L1 _J_

•

New Pesticide Bug-Killer
Announced by Hercules Powder
chemist

Jessop Steel

Built-in Flame Resistance for
Cotton

nets, obsolescence is equally rapid.
Since

one

Air Products

health

benefit of

[exceedingly
where
may

the

further

thus

predict

tive ih this

lesearch

are.

only

few

*An address

a
on

best

by Mr. Greene before the

Meeting of the American inst¬
of Chemical Engineers, White
Sulfur
Springs, West Virginia.
-.

all

will

other

the

qualifies

■'4 "■ ;:

things

that
but

all
as

;

and

can

Observations—A.

■

•

HA 2-0270

40 Exchange PI., N. Y.
Teletype NY 1-1825 & 1-4844

—

Direct Wires

:■

Philadelphia Chicago Los Angeles Dallas

things will

not

Reporter

Our

Reporter's Report

doubt

Security

-v

The

certainty^

and

You—By Wallace Streete—j
j

■'

1_— 16

-1

Racing

United Western Minerals

—2
6

—83*

Florida Steel*

'Column not available this
week.
Twice

Weekly

1 * Drapers'
Gardens, London,
land, c/o Edwards & Smith.

Tho

COMMMEflCIAL and

Lucky Mc Uranium

Eng¬

FINANCIAL

have specialized in

; Reg. U.
WILLIAM B.
25

Spencer Trask

&_ Co*

Members New York
Stock Exchange

BROAD

Albany

;

• *

Nashville

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CHRONICLE

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DANA COMPANY,

;

Publisher*

by William

second-class

DANA

SEIBERT,

Thursday, April IS,
Every Thursday (general
vertising issue) and every
statistical

reoords,
state

Other

Chicago

Issue

-corporation

and

city

news,

Offices-

El.

135

—

and

Monday

(com¬

quotation

bank

clearings,

(Telephone

STaU

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Canada,

ad¬

etc.).
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St.,

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year.
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per

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on
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Subscription* In United States, U.
Possessions,
Territories
and
Members

Other

1957

market

news,

matter

Subscription Rates

President

news

Dana

A Publisher

Dominion

WILLIAM

ary 25,
1942, atsthe post office at New
Yjork, N. Y., under the Act of March 8, 1879.

to. 9576

SEIBERT, Editor

1957

Company
i Reentered

Place, New York 7, N. Y...

REctor .2-9570

plete
•

Schenectady

Park

HERBERT D.

ST., NEW YORK 4, N. Y.

TELEPHONE HAnover 24300

Security I Like Best

San Juan

—74

Washington

__70

The State of Trade and
Industry
and You
:

equal,'

..i

Vitro Corp. of America

Salesman's Corner-

Hie Market

predic-;"

Universal Transistor*

•

Offerings-

Continued on page 41

Governments

Securities Now in Registration
Prospective Security

„v

indicated before, it is some-"

Public Utility Securities
Railroad Securities

$4A

equal"

77
24

Wilfred 'May

Our

PnbUshed

many years

Regular Features ^

being"

casts

state with

For

News About Banks and
Bankers-

years

approach

validity of such

tion.- We

itute

sales

being

which
at

equal. It is, of course, that
phrase
"all
other
things

the

make

predict that in 1965 pharma-

billion,

A statistician could
ap-;
""trend-line" to these figures

ceutical

programs

[internal factors which
[prediction of the future
Innual

ply

competi¬

secrets.
a

of growth.

and
so

Sanger# Bean
Mackie, inc.

Serious Business Downturn
Tliis

fact

the

Hycon Manufacturing Co.

op-;

timistically to the

effect.

industry, the

closely guarded

These

through

even

its

complication

that, since

|are

and

to* foresee

break

Pacific Uranium

all, but it is

difficult

occur

difficult

We See It
(Editorial) 1 __1
I____ 1
_Gover
States increased two-andBank and Insurance
Stocks
:
one-half times between
24
1947 and " v U«mlng Events in the
Investment field_____—
1956. This places the
8
pharmacetiDealer-Broker Investment
Recommendations- j. i.
tical industry at the
8
—i
top as regards v. .* Einztg: "British Reactions to
Tax Ctrts"__.-_;.__^_
growth.-.
' •
18 '
::'* *.'■ From
Washington Ahead of the
News—Carlisle Bart*eron____
9 »
This past record of
accomplish- *; Indications of Current Business Activity
68
ment. leads us to look
Mutual Funds
forward

Of course, all
work to the

developments

the value j-i

United

„

these

jjf the Cen-

of. pharmaceutical
preparations
shipped by all-producers in the

such product can drasti¬

cally alter the financial outlook for
| any
single
company,
research
competition is keen.

Tear

Rdport

sus-of^Manufacturers,

protl-

215

Because of this rapid and
spec-

HEnderson 4-8504

Teletype: JCY

Chemical industry 's
importance in* Peaceful Use of the
Atom
—Willard F. Libby___

present thinking about
so let us take a look at

over

Industry—Samuel

Members Salt Lake
City Stock Exch.

Capital Problems in the
Agricultural Chemical
Industry—F. C. Shanaman

present

JLF.Reilly&Co.,Inc.

3
v

Radiation and the Rubber

all

to the future de¬

that

J. Greene

Cobleigh

few min¬

why

Biochemicals—Allan

.Chemicals for Fiber,
Factory, Farm and
Pharmacy ;
—Ira U.

and Rayon Fabrics a
is especially ; true in would like to impress
•/"
upon you a
Reality
drug-- and biochemical area few indices of this progress.
36
Francis fsL Williams
Cites Favorable
^because the field is so active and ;
Prospeets for Chemical
;
During the past 10 years our
< Industry
advancements are made so dra¬ Gross
National Product has in¬
56
matically. The miracle drug of creased
by 65%. Simultaneously,
yesterday is commonplace or even personal income has
kept pace and ' ; Paul W.
obsolete today. But a new one
MeCracken, President's Leading
has
chemical industry sales have
Economic Advisor, :
al!risen to take its
f- Rejects Primitive
Thinking About Debt_^
place, and is the :most doubled. These are
truly ye- ;*:• Waiter E.
talk of the
Spahr Contends Allan
industry, the medicalVmarkable performances.
Sproul Sets CJp Straw Man
However,}
Cold Standard"
profession, andJhe Sunday sup- drugs and
(Letter to Editor)'_
pharmaceuticals ex-,
1 26
.piements.
\
celled even these,
George R. Roberts Sees No
According to ■ *.
emergence

Mankind"—Alexander Wilson___

the

•

"Love for AH

•year*.' This

tacular

HAILE MINES

of American
Nuclear Exports

•—David F. Cavers._

^rst, we have the general atmosphere in which the industry now
ex,sts.:1 The past naturally condi-

con-

cede

and

Knowland_____________4_ jr?_^
investmentCompany Today—Hugh Bullocks

The

Third-Party Liability

nwght be termed, the best ef times
fo.r us here in;.the Gmted States,

in-

pow-

freely

reasons

looking forward

long
be

COMMONWEALTH

Solving*<>ur Domestic Problems
V; --Sen. William F.

This optimism

examine for

utes-the

range

speaking

discussing the
future, then he must

BASIC ATOMICS

The Future of
Railroad Mergers, and
Railroad Finance
\ —David A. HU1j_______

our

the

capital expansion

about the short range
future, then
he had better be
accurate, but if
were

YORK

4-6S51

speaker.
Patterson

Mr.

one

STREET, NEW

10
Recent Developments in
Soviet Taxes and Standard
of Living'
—Franklyn D. Holzrnan

going

confident that

all.

us.

is prevalent in

luncheon

remarks,

WALL

Telephone: WHitehall

jCover

___________

will

benefits for

man

that

future

us!

Chairman J.

—

Hie Most Valuable
Dollar Spent Is the
Research Dollar
—Gwilym A.

bring new sales
records, new products, new proo*
esses, new opportunities, and new

Mr.

the

I attended

ago

research.

Page

irArmstrongs

Basically, the picture is opti¬
mistic, not only economically but

Allan

drugs

_____

be :

setrforth

Optimistic Future

and biochemi-

noted

have

Current Objectives and
Programs of the SEC
Sincla

the

pany was
In
his'

indeed

bring 'em

02)

Functional Finance and
Modern Money Control
—Melchior Palyi

ex¬

Notes

and

around

Obsolete Securities
Dept.

not

dict-how

it ent

that

tN ONE BASKET

Nation's

Articles and News

number of reasons
why we should
attempt to project a picture
of the
industry in 1965, I will at¬
tempt to do so. .'i

pre¬

different

the

page

positive statement as to
future of the
pharmaceutical
1965

and

PUT ALL YOUR "EGGS"
"Over-the-Connter Market—

may
who '"dares

anyone

page,

I...V

way out on that well-known
limb.v

look

•morrow*

industry in

been
to

economic

things will be
morrow.

-A

picture, tax poli¬
cies,
the "I world
situation, " and
everything else up to and includ¬
ing the weather, and, it

have

«.•

cover

Investors

eral

cer-

t ain t y

tenuous thing. Add to these
such external factors
as
the gen¬

ad¬

one

customer.

•V*

I think

thing out, for

the

oil

Business Growth"
^discusses the investment
opportunities inherent
able only in the
in*securities avail¬
Over-the-counter Market as
exemplified in the
tabulations showing the names
of banks.and
companies which have
,;r pirfd eonseCtnive cash dividends for 10 to
173 years (Table
v
I, page
33) as well as those in the
5; to 10-year
category (Table 11,

■.#

every >

individual

Benjamin Franklin once noted
that nothing in this world is cer¬

/ v

abroad justify, Mr. Greene
says, an optimistic, view of the
industry's future in the next decade*
particularly in view of
stress placed on
preventive medicine which would make

Indispensable

—

GROWTH"

ARTICLE starting

through 1965. Impact of continued
emphasis on research,
expanding ^population and rising living-standards here
and

pharmaceutical

industry in growth

rate

I N D E X

> V

•

year.

WHitehall

Bank

and Quotation Record —
Monthly,
$40.00 per year. (Foreign
postage extra.)
!
Note—On account of the fluctuations In

the rate of
exchange, remittances for foretsrn subscriptions and
advertisements must
be made in New York funds.

Direct

PHILADELPHIA
.

SALT

3-3960

Teletype NY 1-4040 &

Publications

wires

4041

DENYEft

LAKE CITY

■

Thursday, April 18, 1957

Financial Chronicle...

Commercial and

The

(1804)

attention to behavioral and mo¬
a public utility, this primarily de¬
tivational human relations prob¬
split; with 4he-rate *of
pends on the structure of the rates lems
these ought to permit a
gain, or loss, thereafter reverting
charged the consumer. Thus, the
to the pre-split pattern.
We thus
growth rate substantially better
proper
recourse
of the Grand than the prewar decade, which
see
that there is post-split fade
Street Boys and Judge Goldstein
pertaining to ownership-broaden¬ for achieving increased popularity included the lost weekend of the
great depression. ;'
<*iing such as we have previously
for their stock, is not to the paper
noted applies to price stimulation.
"In the postwar period the ratio
shears or other mechanics con¬
of the change in total net debt to
cerned with the stock certificates:
;; Popular
Un-Split Companies
Gross National Product fluctuated
but to the real source of their
It seems to this columnist that
frustration,
namely the • Public over a substantial range but aver¬
the numerous .un-split splittable
Service Commission which
ob-^ aged just over 9%; If the savings
issues, which
have nevertheless
and deficits in the economy con¬
struets earnings' growth At their

following

—

Observations
sssss

By A.

WILFRED MAY s===

>►

AGITATION IN THE

STOCK SPLIT

MEETING SEASON
t

companies thus included
Returned to prominence
Allied Chemical, American
by
a
stockholder's proposal Smelting, Chrysler, General
brought before the annual meeting Motors, Lone Star Cement, May
Departmentr Stores, Schenley,
The device

split is
The
this week are —

of the stock

Ameri¬
Telephone

of the

can

Co., Union

Telegraph
that

and

brake,

stock

Company,
the

and

split 4-for-l.

statement

The

made

sup-

Likewise

in its
behalf at the
meeting by

Wilfred May

stock split will result in
broadening the base of ownership
because
of
lower price levels,

:i H

v ■•

study of the 359 splitting and
non-splitting listed companies
which obtained additional stock holders without mergers, suggests
conversions,
acquisitions, or

"the belief page

Goldstein), bases it on
that the

desirable."

which is

the

split in broadening
ownership are the conclusions of
a thorough survey made by Hemp¬
hill Noyes & Co., members of the
New York Stock Exchange, under
the aegis of Harold Clayton, which
was
six months in the /making
and, as a coincidence, released
during the past week.
This 41-

argued

Judge

casting doubt on

efficacy of the

and

lion,

■:-:f

National Dairy.

Confirmation From New Survey

of the
proposal (sub¬
mitted by the
Grand StreetBoys' Founda-r !
p o r

California, Texas
Carbide, U. S. Rubber,
Steel, Westinghouse. Air¬
CIT Financial, Goodyear,

Standard Oil of

that

Expectations Illusory

rise

the number of

company's shareholders may

v.„

well

ownership substantiates the
conclusion that a rise in the num¬
ber of shareholders may well be
importantly due to other factors,

importantly due to other facdesirable tors, as investment quality, manend. But studies of the impact of agement reputation, growth charthe split p$>cess in actual practice aeteristics, and dividend increase.

Increasing the number
owners is, of course, a

the claim of

;show that

share-division

•from

illusory.. /
'

of share- be

that result y/.
,
; , a■ • 7
is largely Importance pf Investment

•',*;<]

the case
comprising Standard
of 50 Indusstrials which were split postwar,
that while the stock split has been
The record
of the issues

shows that in

and Poor's Average

accelerate the
5 growth
in shareowners, such acqeleration has been (1) altogether
a

factor tending to

and
(2)
temporary,
a return back to the previous
of growth soon after the

moderate,
with
rate

^ V

splitting.

Following are the average own-

the consecutive five-year
surrounding the splitting

during

period
time.

Increase
Year

Shareowners

Years

After Split:

8V2
5

years

Three years—

;

from public and/or private debt for other- " /
wise adherence to the twin tenets of fiscal orthodoxy would
place the economy's continued expansion in financial jeopardy.
> .
' Dr. McCracken foresees:
(1) total debt rising from $658 bil/
lion, end of 1955, to $1 trillion in 1965 to permit $565 billion GNP; (2) need for $100 billion increase in money supply
by 1965 and lower member bank reserves; and (3) tighter
monetary policy accompanying larger public debt.
7

The

our

own

analysis

faster

f♦
the Presi¬
dent's Council
of Economic
Advisers,
de¬
clared April
16 in his ad¬
dress before
members of

member

ciation

by« the
amount,

rising

Supply
"We see this same

3loman

^Clie

greatly expand¬
the decade ahead.

cfQowltng Qreen Q=llSO

criterion

reservation

evidence that secu¬

larly the money

Dr.

P. W.

McCracken

"An

increase

GNP Ratio

$565 billion

capital , outlays, more research,
technological development, greater

also been

supply has been

growing more rapidly than Gross
National Product, but suppose we
assume that the current ratio of
that

continues. This sugges

shall need about a $1
billion addition to the money su
we

ply by 1965.
this

counted

And all but 10%-15%
presumably be ac

must

expansion o

for by an

bank deposits.
"Let

explore

of th

some

Wilt Happen

Accidents

current tendency

the latter case.

cannot have

the only

it from

There is some

Total Debt to

"But between now

perfection of cutstne and service

light- by

the point of
view of the money supply needed
4 Council,- wasa • pro¬
by 1965.
There has, of course,
at

looking

ing economy in

mutually inconsistent for
the period ahead. We must have
either unbalanced Federal budgets
or unbalanced private budgets in
the decade ahead, with private
debts
rising substantially more
rapidly than incomes and sales in

oom

problem in a

different

somewhat

that he foresees a

doxy are

the University of Michi¬ been a fairly close long-run rela¬
School of Business Adminis¬ tionship between the money sup¬
tration, told the mortgage bankers ply and Gross National Product.

disturbed by.
for private
debts to rise more rapidly than
incomes.
If economic growth is
not to be placed in financial jeoD-i
ardy,
we
must recognize that
these twin tenets of fiscal ortho-y

opening

'needed'

Increased Money

$100 Billion

about .53

view have

private/debt must
the next decade,
to $733 billion."
; i>

Eastern Mortgage Conference held in New York City. ,/
"The view that the public debt

the

indicated,
net

gan,

with the

income, or
total to rise

almost double in

their

rise in line

in national
about 50%. For the

increase

fessor at

perfectly defensible
view, and it may be that the pub¬
lic debt should be reduced in the
years ahead. But it is fair to say
that many of those who hold this

is assumed to

America at

"This

here

$22 billion, correspondingly; re¬
ducing the net debt of the Federal
Government. State and local debt

the Mortgage

places.

tions

i>rl' McCracken, who until he
accepted' appointihent to the
President's

whole the

Government's administra*
is balanced. T. Trust
holdings of Federal obliga¬
are assumed to increase by

fund

Let us assume

two.

the decade as a

budget

tive

Gross National Product (in pres¬
ent prices) by 1965 ought to be
Hemphill Noyes study that the
Quite feasible. It would actually
greatest increase in stockholders
occurred in the 12-month period is too large and ought to be re- require an improvement in pro¬
duced substantially is a prevalent ductivity only moderately better
and receives support in high than in, the prewar decade. Higher

Oscar's

Federal

already unabout the large voldebt. Yet because

than

one

announces

that for

next decade

fact

American

of the

tion

that the debts of the .are starting into, the
people are increasing with many persons
the rise in their in- comfortable
comes is not the alarming develume of private
the Federal debt is still relatively
opment that
quite large, private debts for sev¬
-many contend
eral years must grow about 50%
that it is, Dr.
more
rapidly than incomes and
Paul W. Mc-,,
sales if private debt is to account
C r. a c k e n,
for the expansion of total debt."
-

Bankers Asso-

in the early part of
this article is the finding by the

One year
Two

;

synonymous.

Confirming

1965

economic

Quality

summarized

split—,

growth musbcome

stockholders faster than lowerpriced issues. Thus, it is evident
that some investors feel that a
high dollar price and high quality

before split

Year of

size,

President's

split. In other
words, til)?, .quajity is more effective than the splitting.
Interesting too are data showing
that among companies that did not
split, high-priced issues gained

are

about the same

tinue

ity companies that

gains for the 16

Most companies that split their
stocks are shown to be those who
have above-average earnings, records, are increasing their dividendsr or otherwisehold bright
future prospects. j,
7. '
+
; - Showing that quality is important along with splitting as a temporary ownership-broadener is the
study's evidence that those highquality companies that did not
split in some instances gained at a
greater rate than the lower-qual-

industrial companies in this group, which had no
significant increase in shareowners or in common shares outstanding other than through stock splits,

in source.,-£.

-substantial increase

relative
should have
accumulated about $430 billion of
It seems also relevant to the
additional debt, pushing the total
discussion of stock ownership to
note the difference in the expense to somewhat over $1,000 billion. ;
such as the investment qualities
of brokerage commission devolv¬ ; "Whether we look at the prob¬
which we have cited. Typical are
ing
on
the split .and un-spilt ably annual increases in debt or
the following companies with their
holder. In appreciably raising the at the volume of debt outstand¬
respective shareholder increases
brokerage commission charged for ing which would be appropriate to
during
the interval
1951-1956: a transaction in the equivalent 1965's Gross National Product, we
American Tel and Tel (36%), Dunumber of split shares involved, reach the conclusion that a $1,000
Pont (26%), IBM (39%), Hiram
a
split
penalizes/ the existing billion debt level will almost cer¬
Walker
(42%), Union Carbide
holder and disadvantages the new tainly be reached in the decade
(17%), and Westinghouse (50%).
- ';;V§-.y ;.
buyer. In the event of a 4-for-l ahead.';
It is the investment qualities,, as
"At the end of 1955, total net
the earnings and dividend return, split in American Telephone, as
debt was $658 billion.
This con-r
is? proposed, the expense of the
which genuinely enhance the gemsisted of $388 billion of private
eral basic welfare of the share¬ equivalent transaction would be
debt; $38 billion of state and local
holder, as well as the size' of the
tripled.
• ; !
' government debt; and $232 billion
shareholder list. ^ jn • fhew casef/df.
of
net Federal debt
(excluding
rj
securities held by trust funds, etc.)
"Now who is going to account
for the
roughly $400 billion of
new debts
(net) to be created in
the
next
10 years?
Obviously
either government units or private
borrowers, and in all probability
the result will be some combina?
One of the,> President's economic advisors avers

enjoyed

stock

it
and 1965 we

both.

possibility that
this will be a particularly inter¬
esting problem
in the decade
ahead. In the immediate postwar
period private debts were*so low
that a rise relative to incomes
"There

the

constituted no worrisone
And

problem.
history

during much of our

private debt has been virtually
equal to total debt, so the ques¬
tion never really arose.
But we

usually

But as someone recently said, it's
becomes trite because of constant repetition
wide-spread belief.

Trite statement, true.
the

truth

based

that

it's no aceylent that Fire and Casualty
cdmppnies; have grdwn Readily over tKcr' years*

At any rate,

sent

For

number of interesting

investment

example, heff J are - some

markets in—or

Insurance

currently repre¬

opportunities.

of these < stocks that we

make

find markets for—

American Insurance

Co.

Phoenix Insurance

' «

Springfield Fire & Marine

Continental Casualty Co.

Co.
Firemen's Fund Insurance Co.
Great American Insurance Co.

Insurance

Federal Insurance

St. Paul Fire

Maryland Casualty Co.
For current quotes,

Co.

& Marine

Insurance Co.

Westchester Fire Insurance

Co.

just call—
Trading Department

Merrill Lynch,
70 PINE

Pierce, Fenner & Beane
NEW YORK 5,

STREET
Offices in 108 Ciiies

N. Y.

Volume 185

Number 5630

implications

this

The Commercial and Financial
Chronicle

...

need

■, c <

for

(1805)
a

per

the

50% increase in bank
deposits by
1965.

will be

useful

that the ratio of bank

Federal

obligations

assume

the

total

1955.

the

administrative

municipals)
rise

higher

interest

rates

come

the financing of
may be¬

way,

risky
more

/'/'

portion to the size of the
economy.
"For bank loans
outstanding to
rise only in
proportion to the rise
in
incomes and sales (as meas¬

extent

ured

y1-

by Gross National Product),
holdings of Federal Govern¬

ment securities

billion

must increase

1965.

This, of course,
simply a* shift in
ownership of the debt, with banks
might

reflect

holding
less.

and

But this

others

their

holdings

The

dilemma

either

must

private debts

the

fact

and

the

-/needed

indefi¬

Reserve

should

will

securities i

primary

reserve

member banks

business

attention

munity

occasional

One

position

that

•

some

j. Sinclair Armstrong

need

mercial
been

banks

since

Record

Y '

are

-;.v,

time

'r/

witnessed
-witnessed

now '

our;

--bl

our

country.

economy
Yott cannot have
only

A pUiV Vjf LU11"
survey con-

presently

•

more
1IIV1C

intend

the

voluntary cooperation of
public, and the work of the

...

LDAUUldlC

Federal
the

securities

essential

laws

factors

rion

yuwuy.wmi-wuvv

the

hZS'

in
in

pay

machincrv for

recent
recent

unit,
time.

years, has
South wick-

Inc.,
as

cAdiapie,

the comnarativelv

tear iq?^to
fiscal year
nscai vear

Dexter-

the

Vice-Presi¬

the

...

—

•

through 1940;
inrough TW
to

borrowing.
are

accustomed

ah^llf

the

full

capitai

f{tflirA0

that the lull

formation

read-

pd„Z as
unnotiCed.

uie

uuxiai

Artof

OIWe(+

the
that

the

During the 1930's
During tne liwu s

dollar amount of

average

registered

fell

hniinn

vear

year.

VAar<!

ington and completed
tion

at" the

his

except briefly

educa¬

School

;more

I gate

University of Penn¬

totaled

all

$600

calendar

$35.1

billion,,

past

five

00unter

were

$200

$5.9

amounts

million

provide

utility holding company
systems; to provide .regulation of

billion,

investment
companies to assure
adherence to standards protective

than

million rand

Continued

•'

;

•

'•

;

page 46

BRUSH, SLOCUMB & CO. INC.

|
'j

announce

Trading-Department

in 1952 and $104 billion in

•
'

Division

our

Established 1892

their admission to

192SL

The latest survey of investment
intentions conducted
jointly by

•

ill

Trading and Ex-

\..

membership
'

••

the

\)
.

changes

and
the Department of
Commerce indicates that business¬

New York Stock Exchange

men

plan to spend $37.5 billion on
plants
and
equipment
in
1957, an increase of 6.5%, above

new

NEW

YORK

AMERICAN

STOCK
STOCK

EXCHANGE
EXCHANGE

*Ar»
the

115

Broadway, New York, N. Y.

Telephone: REctor 2-2820

address

Briefing

Laws

and

by Mr. Armstrong before
Conference
on
Securities

Regulations

The

Federal

tion

with

New

sponsored

York

the

Bar

Association

Bureau

National

City, March 23, 1957,
Duplications eliminated.
.

the

coopera¬

Aifairs,

SAN

FRANCISCO

cor-

public

ranging

fotTon ofThe financial structure^of

am?rted to
aggre-

proceeds

markets-

COLini;er marKeiS, YU provuxe

enrnnratinn«

The value of the gross national
product
totaled* $412
billion in
1956 as compared with $345 billion

the

over-the-counter

available;.

ex!

the

year

market, although unfortunately
are

designed to

statistics

about

securities

the

also

than double the total of $16.7 billion reported for 1953.
It is believed that similar increases oc¬

to announce that

associated:• with

from

The dollar value of securities that

hands

hii<jine«c

they produced ",/
1946,. $3.7 billion of capital.
American *
increased

in "1929,

were

/o/de regubtioC o?

of as

than $90 miHion with

Eleven

31, 1950
31, "1956.1

nnr

each °ne

from $111 billion on Dec.
to $265 billion on Dec.

sylvania.

Wharton

These laws

27se/rXte bon/ „Pfferin°g"

rn/fo 'l950°the mnount/veraged
^4

basic'business

fn C/Z/ aUon'/aTaTar/ fcha»^ mar!:ets s° asrf to, insure
£ operation was a raie free, fair and open orderly marT

commonplace.

se-

below

certain

financiar information

f 5
lnstance- T°day, a $100 million kets; to provide a limited degree
b°nd °r ft0Ck ?fIe!'!ng is 5atber of Ygulatiou in the over - the

recent fiscal

hilRon

1956

nUes

exchanges

4nd

Up to the outbreak of

Wor'd War 11 « offering

1933

and ,y/exe .intended
public investors in

of corporate securities
and
sold
in
interstate

co^er^and in
ues hf^d
an(j traded on national securities

the

process

issues

offered

hiin«r.Q

magnitude
magnitude

«®es on in this country year after

period

provide; to

new

CoUecUv® y
speak of them

nacte

retained earnings, denn/.ni.oin
preciation accruals and tomnnY^r
temporary

irt0

leral
year

'hnoniotUn

bank

o£ orientation

Pniiootiuoiw

couoquiauy,

from

came

At
At

matter

sihtwo
Point, fct me first state brief-

for these expenditures and

working^^ capital^^ during:the

ex-

The aggregate market value of
company.
He is a membei
Past President of the Seattle (ail stocks, traded on all national
Bond Club.
Mr. Van Dusen: at¬ securities exchanges, which never
tended the
University of Wash¬ exceeded $100 billion before

MAB4N & C*.
MEMBERS

the

the °Wectiv«s of the Congress
expressed in the statutes, which

This
ihis

vears
yeais.

1^2

The balance of th>
the money*.needed

■,.

Commission's

aim/imUv

and

".ft'

MEMBERS

one

giving

public confidence in the integrity
Qf the capital markets./ There is
nothing Iri thes^ laws which is de^
signed to impede the raising of
capital. If well administered, they

\ j

irumeased by 75% from $7.5 billion

own

■

TdTfoe Se™es

Eugene G. Statter
is1'

curred

w e

tations and market
trading activreached as high levels as those

;

Mr.

perience, have capital market flo-

Mr. Van Dusen started in the
business with Blair & Co. in 1926
and
later was
a
partner in his

Finance at the

pleased

tremens

well-orffanized

our

1956
i

6%
/O

Activity

changed

cis'

A K

concerned.

Flotations and Trading

exchanges

•

"•'
•
' "i

■

eurities

com¬
have

are

;

5.7%

1950

formatioiV

^OUsl^important to the
of

;Our fluid "capital markets/arid

;

resources.

growing at the rate

&
Co.,
Building,

Horton

business

Campbell
dent.

accounts^of

Capital

past 31

the; firm

get the required increase in bank

quate growth of capital
The total capital

requirements for

which

securities

Seattle for the

"There will
apparently be no
impediment because of an inade¬

Hol-

in tins country in that year..

offered

u..
a.
cf'toP proceeds of
theses securities goes into/ plant

all

United

to somewhere in the'neighborhood
of $2.5 billion
a rather striking
oMMm

all of

corporate SCI.UI
securities
in 1957 than th
did in 1956
,

the

comparison with the $11 billion of
corporate securities 'sold for cash

Wash. —Walter B
Dusen, prominent in the in¬

joined

Germany,

West

an# Switzerland in 1956 amounted

Division of Trading

our

businessmen

with

V;whicfi

SEATTLE,
Van

vestment

"The academic economist is not

y»-

duct

competent to question the wisdom
of these policies. But if
we are to

v v

these j securities

wise.

countries of-Western Europe. We
found that the aggregate sales of

Sll Mllion^another
totaled $fl .billion, another capital formation without willing
investors. Capital i« fnrmM nniv
is formed

sell

;

had

total'

sold by private business or-*
ganizations in several of the larger

Xd^F^hanthe

.?r°and

the

and

TTnit^a-in

all-time lUgXIt
high.

ducted by

ascertain

totaled

new

41V »¥

•

business prac?i5ltices pr con-

,| m; i p
l. _n : pitceeinTreMv/lye short
Souuiwick-Campbell 0pf
ForlaexaJ,l

are as high
they should go relative to de¬
posits. And many apparently feel
that certain
types of loans are as
high, relative to deposits as is

deposits..*

•

cedures
i

is the loser.

the

problems

W. B. Van Dusen With

large, bank loans will almost cer¬
tainly continue to grow relative to

•

City

banks feel their loans

deposits and the money supply,
and the Federal debt is not
to en¬

get

securities

admilJistrativemeth-

relative to its probable
importance
for the
economy
in, the decade
ahead."
'
"...

already hears

comments

Commission

our

amount of stocks and bonds issued

it needs to finance this
th^

com-

certainly
and
monetary
policy accumulating-vast sums of
possibly^ our thinking about debt savings of our citizens 'have
eaual anvwhere in
policy is in a most primitive stage equal; anywhere in the world:
world:

"The question
is more apt to
arise from internal bank
manage¬

policies.

money

Ln.e.

bank

and

limitation.

ment

occasion

;

mem¬

will'impose

Where will business
th€

Recently

aWd equipment, because securities
previously issued are constantly
J,
sh a re.one l)ein« ' i-etired
through
sinking will help, and not
hurt the capital
conclusions.r;
common interest—the
investor. If funds and serial
maturities^ and formation process,, 1 ' '/ K v
any of us fail to serve the
investor,
0 i\e.i.rea^?nsY A? f T ^ 1 £
compounded
doubles
•
n- L
' ;fv■■■.
every
28 or serve him
badly,'our country ne additionS'to capital from sales
years, we must now devote more
Objectives of the Congress
'j

de¬

requirements

that the
of

•

;

two

Europe's Contrast

(-;•({

t' ■///,//

last

underwriting;

Filling Expansion Needs

dustryandthe

free

policy decisions according

and power to reduce
ber bank reserve

in * the

Kingdom,

of $28.7 billion for 1955.,

Commission,

serves

be
ap-

fHfhp

ever

faced if this rate of
improvement
problem in the
'.in< our standard of
mechanical
sense. ' The
Federal
living is to be
Reserve has enough elbow room ■realized.; I
^ [ v. v ;V y';;
"Second,
unlike
fiscal
through its own»' excess gold re¬
policy

there

the

offerings

record

non-underwritten rights offerings
shareholders — the other two
had conventional

the previous all-time
high reached
in 1956, and 30% above the
total

its staff and

strument of control.,i
{,r
"This all leads tov two not
very
spectacular,
F i r s t,
having learned that'r2*/£% per year

supply by
Obviously

money

between

credit, the economic
may well become even
sensitive to changes in Fed¬
eral
Rc£ervet policy.- Federal Re¬
serve
pdiicy should become a mOre
important and -more sensitive in¬

institutional

amount?

proach

that

problems in expanding bank
the

only natural that there will
differences of opinion or of

situation

ahead to provide the
required adr
government securities.;?

posits

difficult

the

over

investor

new

our

to the needs of the
economy, But
with the economy more and
more
sustained by the expansion of

ditional

"face

op¬

to make

nite future rise

erations, and therefore

just' re¬

offerings rartging in amounts of $131 million to
$657 million. Two of these were

,//;y; ;/-■: :new■■Jevel°pment/;/ ^
.tackling
problems it

relieved from con¬
about debt, management

cern

more
rapidly than
private incomes and sales, or; we
must have a Federal bud
get. suf¬
ficiently unbalanced in the years

"Will

than

vate

for the

can

/'/

does

pri*

remains:

Federal

Dilemma Remains

-v

"The

debt

monetary policy?*-1 think it does.

obligationsy (required to
meet
the
increased
bank
de¬
mand)."
V/ '
-

public

execute) to compensate for an
'easier' fiscal
policy. ;
"Does this have
implications for

Federal

the

i»i

the

holding

merely transfers the

that

Indeed,

quired (though also

problem since then the demand
for private obligations
by the nonbank public will be
equal to the
rise in their total assets
plus the

liquidation

interest rates will be

substantial.

enlarge, interest rates
should be higher than if the
Fed¬
eral budget is balanced. A
'tight¬
er' monetary
policy would be re¬

$36

debentures-

look

stock

population, and the lessening'\
of caution.
Citing increasing frequency and intensity of proxy /
contests, with Committees and members of the:;
Congress "/
requiring Commission to report to them for
day-to-day com- :
ment. Terms such
Congressional surveillance "something of a f <

continue to

pressure

very

of much of the

ence

highs in prices, activity,
markets, while
brought in regulatory problems absent
during previous depressed periods. Calls attention to
inexperi-

•/;■

and

all to the good have

"It is doubtful if in
practice this,

bank

of
*

years, we find four

and number of shareholders in the
securities

operations
difficult."

Monetary Policy

cently.

;

Exchange Commission
jj
Chairman Armstrong states
security offerings in 1956 reached
all-time top of $11
billion, and a 6% increase is expected in
1957. Maintains recent
years' record

Or, to put the matter

in another

/' Chairman, Securities

•

compensate for the increased risk
exposure.

pro¬

successfully
sold
at
competitive bidding another $250
million

By J. SINCLAIR ARMSTRONG*
y.

and

Telephone

Programs of the SEC

some

require

about 10%, bank loans will
need
be almost
exactly doubled for
bank deposits to show the
'needed'
expansion.
This
assumes
that
bank holdings of
'other invest¬
ments'
(mostly

will

atively less important in port¬
folios, -private obligations
may

resources

Cuuent Objectives and

capital-to-deposit, [r^tio,

upward pressure on in¬
terest rates? This is
possible.
If
government securities become rel¬

budget,is balanced over the next
decade, and the Federal debt in
the hands of the public
declines

cash

continues,

ate

rate

Federal debt in the hands of the
public will be the same in 1965 as
in

1965

this

should be considerably larger than
at the present time.
•
"Will these developments cre¬

holdings of

year.

April 11, 1957

(1806)

observes this
Steel

The

confidently- at the fiiture.
Steel Corp., Oakland, .yaL*
$817,000,090 to its
current will boost OtITlilPltV to .Y.—
$113,000,000 program
which will
capacity LO 3,-

the United States-for 195L Com- -mgbined United States car-truck out- ' Kaiser

the confusion,

orders are adding to

trade journal, f

last week added

the - put for the year to date totaled
stabilizing effect of the long-term "2,372,-984, compared with 2,374,294
abilizing
ta
>.1
•
IS
AU^
K1KC
; r
steel labor contract.- It also indi- in the same 1956 period,
cates that some users are counting
This

Production

Electric Output

1 _l

Cai'loadings
Retail Trade

defeat

tending

000,000 tons.

ingot

Big boosts in

capacity and finishing facilities at
Price Index
Republic Steel Corp. will be pomProduction
pleted by year's end, it j (pointed
Failures
and Industry
out.
■
7
v
%
Steelmaking scrap prices deJ In the absence of hoppful news - However, with seasonal factors clined for the tenth consecutive
from Detroit, steel people-ar0 be- included, it figured the inventory week.
In the week ended Aprilthe
63,190,000 of the
previous coming resigned to a ^generally increase at only $200,000,000, the 10, "Steel's" arithmetical cornTotal industrial production for
slow market in the second quarter. - same as January. On the season- posite on
scrap prices at $44 a
month.
the country at large last week was
-Automotive companies-apparently.-ally adjusted barometer, stocks at gross toil was $1 below that-of the.
Unemployed workers numbered
for the most part slightly lower,,
still working off -excess, in--, the end of February were put at. previous ,week,. the lowest point,
During the week declines were-, 2,882,000, the report added, a de¬
'7
% V 7 7
'
$88,900,000,000, compared with since September, 1955. Its bas<|
cline, from the 3,121,000 total m .ventories.
registered in steel output, - car/ •;
7 '. .Demand for heavy .steel prod- $83,600,000,000 on the same basis price composite on finished; steel
loadings
and automotive and February,
ucts is brisk.
Orders ;foi^plate,Ya year earUor.% . -•! /►// •/*/ 7-remained at $139.71 a net ton. wk
petroleum production. Modest
The report took special note of / The American Iron and-Steel
Industrial production expanded shapes, ana pipe are holding up
gains, on the other hand, were
the steel ingot rate.; Mills in a this reduced rate of climb in in-, institute announced that the op¬
reported in electric power and seasonally in. March and early
position to supply users of these ventories on a seasonally-adjusted ei^ting rate .-of- steel companies,,
pronounced advances in re¬ April, the Federal Reserve Board
reported, noting that rindustrial products are operating at tabove* basis.. It noted the $200,000,000 in- having 96.1% of the steelmaking
tail and wholesale trade.
ouput rose to 148% of the 1947- capacity. In the pine market, in-, creases in January and/February capacity vfor the ? entire: industry;
A check of the current business
49 average, or a one point rise terest centers on pipeline^projects tyece the smallest since the spring wiii he an average of 89.7% ofreveals a more encouraging
February and five points involving, close to 350,000. tons of of 1955 and "marked" a substantial capacity for the week beginning,
tone than in past weeks.
Among
line pipe, not including the pro- slackening in the rate of business April 15,, 1957, equivalent to ?,<•
above March of last year. v
297,000 tons Af ingot Qnd steel
of invnf and cfopl
v
mrOntnrv Ufrf imi itat.i flTi •
4Q1 Mft
the brightest spots were employ¬
The board figured this increase posed by-pass of the Suez Canal., inventory accumulation
for
castings, as compared with
ment, personal income andt inven¬

State of Trade

Business sales declined $2,500,rush orders
000,000 during February while inshort.7 This could- boomerang in .ventories
edged $1,000,000,000
the event of a sudden upturn in higher, the United States Departthe market.'/'//y;;/'*'/;7 ?^ 7 %% inent of Commerce disclosed. .%%

Commodity Price Index

handle emergency
should they be caught

the mills to

Food

Auto

Business

/are

•

news

over

Cnav

was

usual

In March the number of
So, the seasonally adjusted index
employed rose to an all-time high
of
industrial
production
held
for
the month.
Larger payrolls
steady in March and early April
lifted personal income to another
at
146%—the same as in both
new high
in February- Although
February and January.
A yearbusiness inventories expanded in
earlier in March production stood
February, the rate of increase was
at 141%.
the smallest since the Spring of
The
board ; further noted the
1955. Commerce Secretary Sinclaitcontinued
flattening out of the
Weeks expects employment, per¬
economy last month in its sum¬
sonal income and the inventory
mary of business conditions. "Eco¬
situation to improve again in the
nomic
activity,
incomes,
and
fiecond
quarter,
offsetting any
wholesale
prices in March and
weaknesses in housing and auto¬
early
April
generally changed
mobile sales.
little, remaining at or above ear¬
lier record levels," the report said.
With
respect to the employ¬ "Bank credit expanded substan¬
ment situation in the latest week, tially and
common stock prices

tories.,

One

this time of year,

unemployment insur¬
ance hy newly laid-off workers
fose by 48,400 during the period
ended April 6, the Bureau of Em¬
for

boosted the total

increase

The
to

260,700 but the Agency added
rise
followed the "normal

the

pattern" for the first week in
Michigan, New Jersey and
'Missouri reported that temporary

April.

separations in auto assembly
plants contributed to the claims
load. However, the Bureau noted,

job

the

.claims

number of new
less than the 66,400
the

rise

was

■reported in the like week

of last

In the first week of
1956, the total of initial
Ltood at 278,400.

April,
claims

year.

unemployment,

Insured

the Agency

which

said, has been declin¬

weeks,
total of
1,508,500 during the week ended

ing

steadily

recent

by 51,700

'dropped

"March 30.

posed in South America.> &:;'■:%
An "Iron Age' check on back¬

shows7 that unfilled steel
are^ off slightly
from a
month ago with some firms.. But
with others the difference is in-

increased

Steel

Operations Scheduled To

90.3% of capacity, and 2,310,000
(revised) a week ago.
i','
The industry's ingot production

......Field 89.7% of Capacity/;/
■'7:/;7
„Tliis Week ; 7.;V///-

tons

logs

Steelworks operations are

orders

hold-

rarte for the weeks

in l957 is based

ing up well,-"Steel" magazine re»„on annual capacity of
ported on Monday of the current tons as of Jan. 1, 1957.

significant. Such companies are in
a position to. make ^yariet^ pf
steel produces. Those with'a heavy,

133,459,150

- % - i.
It said that a predicted
For the like week a month ago
dAwntrend "is - developing^ at . a the rate was 93.5% and producslower pace than expected.' For ^ion 2,392,000 tons." A year ago
week.

tiv weeks, .ppgra--* th0;>dtual weekly production-wasdeclined, but*they are-p|ace(j at 2,466,000 tons or 100.2*%;
of capacity.
. The operating rate is not compaweekly said rable because capacity is higher
notice of forward tonnages, coil- steel mill operations were at 90.5%
than capacity in 1956. -The pet—
cludes this trade magazine, v/<. /
of capacity last week, down two centage figures for 1956 are based
77
: points from ..the previous week, ,»n an annuaLcapacity of 128,363,In the automotive indusfry lastt^oi^tjrms -were/ eqmvalent^to 090 tons as of. Jan." 1, 1956. /
7:7
week
15% production 'ctltbSckH 2,316,00# net." tons of steCl -for in- ;
7.7'7'
77
by Chrysler Corp.7 milled 7 total gotsr/ahd; castings, - the smallest ; Electric , Output: Showe^ ,.MIId
United States* "car mitput -down ^o.Meeklyedtput since recovery from
/Improvement the PastWeek '
the lowest weekly 'levdl' bF 'the last summer's steel striker
:
The amount/of electric energy
year,
"Ward's Automotive.' Re-:.';-'Steelmakers now can more ac- distributed'.by...the electric light
ports" stated on Friday, last.
curately estimate the year's op- and power industry for; the week
The Chrysler Corp.
downturn erations. . Much of the • work for^ tmded Saturday,* April 13,, 1957,

capacity for sheets/and
- fiPO secu
e
paving a difficult time setting up7lions have
rolling schedules since many.; of still above 90%"
their customers /are V giving .less 7/The metalworking
,

'/:*;;:/./•/-,;

steel

forcing

mills to reach out for

sales. Some

producers are courting steel users
in areas well beyond their normal
market
zone,
while others are

is com- was estimated at 11,695,000,000
kwh., according, to; the7 Edisoii,
Electric Institute. * This:.. repreT
states "The Iron Age," national
sented a mild advance above the
metalworking weekly, this week.
Meanwhile, "Ward's" noted that;' weekly stated. 7/ v,/ "
:
- 7 : '
preceding week. 7 7 7 '*
"i
What
this means is that the
mills are now willing, to settle .for the 41,064 hew car registration^ m -ri By "this time, construction' cbh^*: ** The - past' week's-; output ~ rose
the greater-Detroit area (Wavne tracts are firmed. : 6il wells to-be 2,000,000 kwh." above that of the
lesser profit margin to maintain
J
^ - •
"
volume production. To compete in County)
followed itrthe"wake of a

United

\vhiph steel, is required

Auto-Workers union order ea>-litnv .mit,ted7 The 1957 output will5 be
in
the
week
banning ^overtime/close to the 120,000,000 tons oriwork at all Chrysler plants. : 7 > ginally e s t i m a t e d,'this trade

getting into the act in self-defense,

this year
areas,- they must
charges. This trend 71956 and c
is
particularly apparent in the like 1955.7by
and
lhe statistical publication. estil5' beverage needs. The road program April) 16, 1955/
7r7 ;
East, where some Pittsburgh and
Detroit mills are actively beating
J1}^®(kPro^l,c^on the past.^'week^at ^
take'an
^
the bushes for business.
126,707 cars and 23,810 trucks, amou,nt 0f steel and will not be
compared with 130,318 cars and-Effected by any flurries iii cle-~
For the first time in over two
23,8.% trucks last week. For/the mand, continues this trade journal: /
;
.
years, exclusive of strike-affected
second consecutive week car out- /. Mn„f
\nnu 'it thf» auto ~ * Loadings.of revenue
periods, the steel ingot, rate .is
scheduled to drop this week to ■iPal lagged beh.-nrt
creased by 50,839-cars
below 90% of capacity. Operations .ing week in 1956.

distant" market
absorb freight

It observed the decline

reflected

moderately."

Competition

Security reported.

ployment
'

advanced

•

being .pro¬

claims

lines is

of these

employment
the
week of 1956

.000,(100kwh. ovec the week ended

'food

is"highri^aced

increasing 7 %

going'to

R^iow'"
Preced<»f7Week^and €1% Below
;Like 1956 Period ^

freight tor

the.cbh^mfr.:;^^^e.^^^--!J^^he.woek.er.ded April 6, 1957, de-

are

scheduled at 89.7%.

reflects in part

The drop

scheduled curtail¬

The only automotiv#ifia,nul'ae:-..0(

turer to schedule Saturday opera-

SSIt &

ment of

for' hardly

the

until

orders

last

minute
tllA

mid-March, it said employ¬
totaled 63,865,000 up from

f in
ment

TRADING MARKETS

^he corresponding -19of>
w,;,;k* a":' ?. decrease^ 6f.;15,125
the corre-

FLORIDA

REPORT ON

L. A. DARLING CO.
New

Unusnal

Schools

Florida's

and

STATE AND

MASSACHUSETTS

due to, a 15% produce

••

week the industry

Last

" 7

Continued

LOCAL STOCKS,

Trading Markets
PT<$taif Distribution
■

•

-*v

"» '.

'■X:-

■

ii.

>■

-<v —

Members

ALFRED D. LAURENCE
&

Midwest
Detroit

Stock Exchange

KELLER BROTHERS

Stock Exchange

COMPANY

1051 Penobscot Building

iMVtsrmtir stevmms

DETROIT

201 S.E. 1st Ave. Miami,
Phone: Miami,

Flo.

FRanklin 3-7716

Woodward

2-3855

Branch

26, MICH.

cj
ZERO COURT

DE 75

Office—Bay City, Mich.

STREET,

Telephone

COL. JNC.

S0SJ0N 9, MASS.

Richmond 2-2530

Teletype

BS-630

V %

RHODES-HAVERTY BLDG.
WALNUT 0316

ATLANTA I,-GEORGIA
LONG DISTANCE 42^

assem-

on page

MUNICIPAL BONDS

CORPORATE BONDS

SECURITIES

MOREUND&CO.

year

tion cutback by Chrysler Corp.

Hospitals

—

"TELETYPE MM51

into

ESTABLISHED 1894g

TRADING DEPARTMENT

the industry gets

vacations and the
,

Sections for Homes

Golden\f I riangle

-mass

Development in

Adjast-A-Bilt Wall

And

slowdown
production speedups.%% f0r auto change-overs,-it further
S'
/Ward s the past week counted noted:
..,.*
' 7
/ >%
7
the. 2,000,000th car produced/ in
steel companies/are still look-

Movable Partitions for Offices,

Invest in

Automotive Output ToUChed

ifreioiwiniwuig auiuurnj;.- j.

dhe«quarter-

-dispute over work standards and

SECURITIES
Industrials

pected second quarter dip will beThe Lowest Level of The-YeariLetoortos .Partially.offset by an upsurge in- - . In Latest Week ;A«.
Chrysler's " Los^ An eelps
niAnf ""?6niall2 in
MaJ7 and June to . . Automotive output for the latest
•'contirmed
fmiHb d*).eat fhe-^anticipated steel price week ended April 12, 1957, acweek 'afle? wkers%>ierhT
•
P m fwlmaking op- c0rting to-"Ward's Automotive
atter_ workers ryected.a^ erations, is expected in the third Reports,", was at the lowest level
of the
company
proposal to settle
•

Bank, Insurance Companies,

ona

WRITE FOR LATE
■.

'' 'i'c

Ptllifnrnia

a serious scheduling
-Willys Motors also shuttidWn-'Mproblem for
producers.
Order
•two.weeks to adtost
revisions, cancellations and re-

and creating

* ',

ApI5l"f' i9,E' Iffw c^rs,
1declinfK
41,28^ c^r^nr0^

:♦

Loadings for the week- ended

Mahwah' N..J7

000.

or-7.3%

under the preceding week, the A?factor^1n,iwdatton of American -Railroads

OetiVity "whitVit is; But they

i~
operations bv some, mills .tions last week was Ford "Motov "cfeel'"mioductioii " A-variation of ^t?poits.,,
.
total for the like
on
Good Fridav, which for the Co. at its truck plants%n Kansas half a rnilKon: ckrs* up- or dOwh was 1,394,400.
first time is a paid holiday in steel
va"d
would account
•Wards-: observed.
With, several than L% "of the year's-output .of
labor contracts.
;
Employment increased by 675,exceptions/the rest of-the indus- finished steel ^'7.7 " v V;" -7'
000 in the month ending in midMeanwhile, users of sheet, strip,
March, the United States Depart¬ bar and wire products are running toy scheduled five-day operations.*'.; steelworks hiierations will conPun-Ant
inrifr.offr.Y,e
^1.0.
^teeiworKS, opeiaxions wiu. con
cars, or' 2.3% below
ment of Commerce reported. their
new-found
independence
ing week in 1955.
Unemployment declined by 239,- into the ground by holding back

in outdoor activities. However,

*7/7:

%of' yt*m1»v

Volume 185

Number 5630:. .The Commercial
and Financial Chronicle

(1807)
'

This

announcement
*

•/

is neither,

offer,

sell

'I,'-;.:*.-■'The'offering

solicitation oj offers to

buy

any

is-made only by the Prospectus. ''

issue>;'K

new

nor

of these securities.
•*

...

'-.y-jv -'
April 17, 1957

;

.if.; ■»'-*,~i-\;
r\h

% >'

\j'.V

;.Zv>i>/l^->^Rrst'Mortgage Pipe Line Bonds, 5%

....

Dated

Series Due 1977

•

April J, 1957
Due

April 1,1977

'i&1
'*

-1

„
•

t
'.+

.<***-

* 1-

Trice 100.63% and accrued interest

/'I

Copies of the Prospectus

■:

liters,? including

the

"White, Weld
"

if.

•

;

'"■? *

■

& Co. V

'."•A

"3
* ^

Eastman

-Glore* Forgan Si Co.

;

"...*"

iJ".

•

;

'■

•'

such

4-A:

& Beane

& Co.:

The First Boston

Harriman
;

if )a,y

;•

•

*;•

Clark, Dodge &: Co.

■'

Homblower &l Wceks

Allyn and Company
Incorporated

Ripley fiI Co.

Lee

....

Ballgarten Si Co.
'■

Fligginson Corporation

American Securities

V•v*1.1'

Dominick & Dominick

Smith, Barney Si Co.

Equitable Securities Corporation

\,ti.-

Corporation

Lehman Brothers

Paine, Webber, Jackson Si Curtis

Drexel 8C Co.

Hemphill, Noyes Si Co.
A; C.

state.

Corporation

•

Lazard Freres & Co.

Lynch, pierce, Tenner

Incorporated

*'•'•.

•

Goldman, Sachs Si Co.

A. G. Becker & Co.

>iV"

securities

Stone Si Webster Securities
*

Dillon, Union Securities

A'g,..;

•

lawfully offer the

^Merrill

«■

only from such of die several Under-

any state

I ncorporated

Kidder, Peabody & Co.
'"f.

may

■

'•

Elyth Si Co., Inc.

y;_r<

be obtained in

may

undersigned, ids

Corporation

Dean Witter SiGo.

;

Bear, Stearns & Co.

•

W, E. Hutton Si Co.

Laurence M. Marks & Co.

•'

v;'T;;"S". Moseley 8i Co.

Spencer Trask & Co.-

Phis

announcement

Salomon Bros. Si Hutzler

Ttxker, Anthony Si R. L. Day

is neither

NEW

The

ISSUE.

Shields Si

:offer

sell

nor

Company

F. S. Smithers & Co.

•

6. H. Walker & Co.

Wertheim & Co.

solicitation of offers to buy
any of these securities.

offering is made only by the Prospectus.

5.s;,'■v.:- "Ki

:■■

•'

April 17,1957

100,000 Share

Cumulative Preferred Stock. S5.96 Series
:

;

( WiThout Par

Value—Stated Value $100

Price SI00 per

per

Share)

Plus accrued dividends from

May 1, 1957

■

Copies of the Prospectus
writers,i including

the

?ii

may

be obtained in any state only from such of the several Under¬

undersigned,

Glore, Forgan Si Co.

may

lawfully offer

White, Weld Si Co.

Blyth & Co., Inc.

Eastman Dillon,

the

securities

Stone & Webster Securities

Unipn Securities Si Co.

such

state.

Corporation

The First Boston

Goldman, Sachs Si Co.

;

Harriman

Corporation

Ripley Si Co.

Incorporated

Kidder, Peabody & Co.

Lehman Brothers

Paine, Webber. Jackson Si Curtis

Merrill

Lynch, Pierce, Fenner Si Beane
Smith, Barney Si Co.

7
Sj

The

Commercial arid Financial

Chronicle

...

1957

Thursday, April 18,

(1606)
Alkali

Diamond

Douglas &

Dealer-Broker Investment

General Investing

Lomason—Report—Dept. CH4-11,
Street, New York 5, N. Y.

Bradstreet,

cording

Company—Analysis—William H. Tegtmeyer & Co>, 39 South La Salle Street, Chicago 3, 111*
Gulf Oil Corporation—Annual report—Secretary, Gulf Oil Cor¬
poration, P. O. Box 1166, Pittsburgh 30, Pa.
>
Gum Products, Inc*—Report—Price, McNeal & Co., 165 Broad¬

25)—Comments on expanded atomic power
program abroad including Euratom, naval program for six
atomic aircraft carriers, official AEC estimates of uranium
demand and supply, South African uranium ore reserves,

Trust Building,

after having

Merck & Co.

Co.—Analysis—Bache & Co., 36 Wall
bulletins on
^

* .

supplement, describing industrial
request—Stroud & Company, Incorporated, 123
t South' Broad Street, Philadelphia 9*
77^77
"Doctors of Ships"—Information on servicing ships with oil—
Socony Mobil Oil Co., Inc., 150 East 42nd Street, Rm. 2400,
►New York 17, N. Y.
*
Ethical Drug Stocks—Analysis of investment opportunities—
Newburger, Loeb & Co., 15 Broad Street, New York 5, N. Y.
Japanese Stocks — Current information — Yamaichi Securities
Co., Ltd., Ill Broadway, New York 7, N. Y.
'
v
Over-the-Counter Index—Folder showing an up-to-date- com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
yield and market performance over a 13-year period —
National Quotation Bureaq, Inc., 46 Front Street, New
York 4, N. Y.
'
Delaware

way.

Aircraft Radio

way,

—

has been devoted
aspects of corporate
financing and the underwriting
and sale of security issues.

—

Goodbody & Co.,
I

A. C. Allyn & Co.,'

;

Illinois Co.,
-

Broadway, New York 5, N. Y.¬

Technology

trogen Company.

New York 6, N. Y.

of Indiana

—

Annual report

—

Street. New Yofk 4, N. Y.

Field

Investment

Analysis — Joseph Faroli & Co.,
-29 Broadway, .Nbw York 6, N. Y.
i: - : *
r Texas International
Sulphur — Report — Makris & Kakouris,
Ainsley Building, Miami 32, Fla.
::v^
■
Three States Natural Gas Company—Analysis—Eppler, Guerin
& Turner, Inc., Fidelity Union Life Building, Dallas 1, Tex.
Tilo Roofing-—Bulletin — Herbert
E. Stern» & Co., 52 Wall
Street, New York 5, N. Y;*- .
■;
Trans Mountain Oil Pipe Line Company—Analysis—McLeod,
Sunrise Supermarkets Corp.

Ltd.—Analysis—Gruss & Co., 30

Street, New York 4, N. Yr
■••r77', -'7.A.^77;
Oil & Refining Corp.—Analysisr—Loewi & .Co., Incor¬

Broad
Clark

porated, 225 East Mason Street, Milwaukee 2, Wis. Also avail¬
able are analyses of Racine Hydraulics & Machinery, Inc.,
El Paso Electric Company and Preway, Inc.
.'>',77
Colonial Stores, Inc. — Analysis —First Securities Corporation,;

—

April ,21-23, 1957
Texas v Group
'

(Dallas, Tex.)

Hotel.

111

Also available is an an¬

Street, Durham, N. C.

Corcoran

Wall Street, New

Power

Connecticut

May 6-7,
•

111.
report—Copperweld Steel
Company, Frick Building, Pittsburgh 19, Pa.
L. A. Darling Co.—Report—Moreland & Co., Penobscot Build¬
Company, 135 South La Salle Street, Chicago 3,

Copperweld Steel Company—Annual

ing, Detroit 26, Mich.
Malleable Iron

—.

general investment securities business,
public revenue bonds, y

Spring
"

brier Hotel.

specializing in municipal

May

and

—

Dayton

16-17, 1957 (Nashville,

annual

1, Ohio.
»'
;
. v
C. Roney & Co., Buhl

Also available are memoranda on
Drill & Tool Corp. » - •

Tenn.)

of Nashville
outing W dinner

Dealers
spring

16 rat Hillwood^ Country
Club; field day May 17 at Belle
Meade Country Club.
•>
May

•

Detroit Steel Corp.—Memorandum—Wm.

Building. Detroit 26, Mich.

Association
meeting at the Green-

Security

Annual statement

Company, Dayton

Hotel.

1957 (White Sulphur
Springs. Va.)

Investment Bankers

111.— The

Dayton Malleable Iron Company

Va.)

1957 (Richmond,

Association of Stock Exchange
Firms Board of Governors meet¬

...

formation of the investment firm of
Nongard, Shovyers & Murray, Inc., has been announced to conduct
CHICAGO,

May .8-11,

Nongard and Robert Showers Merge

Company, 176 Cumberland Ave., Wethersfield, Conn.
Company — Analysis — William Blair &

Continental Casualty

Astoria,

ing at Jefferson

(

-the Waldorf

York 5, N. Y.
•*

—

Security Traders Association
New York 21st annual dinner

alysis of Tecumseh Products Company.
Connecticut Power Company — Annual report

York City)

April 26, 1957 (New

Ltd., 50 King Street, West, Toronto,
Ont., Canada; '*
r.-y
•. ''j.<"■ y. y
'
Travelers Insurance Company — Data— Robert H. Huff & Co., '
210 West Seventh Street, Los Angeles 14, Calif.
United Carbon Co. — Memorandum — W. E. Hutton & Co., 14
"V

Investment

Association <: annual
meeting at the Statler Hilton

Bankers :

Young, Weir & Company

■

EVE NTS

•

Canadian Eagle Oil Company

COMING

Standard
111.
Broad

Roland & I Stone, 120

Massachusetts In¬
with the
degree of Bachelor of Science in
Engineering Administration, Mr.
Lyles5 is a ■ Trustee and Treasurer
of Sarah Lawrence College and
a Trustee of the Berkshire School.
He is a director of Southern Nigraduate of

stitute

•

Aroostook Railroad—Analysis—Vilas &*Hickey, 26
Broadway, New York 4, N. Y.
v'; v ' 7-7*77-7" 7.7-7.'•
Brazilian Traction Light & Power Co.-—Memorandum—Model,
Bangor &

various

910 South Michigan Avenue,. Chicago 80,
Struthers Wells Corp.—Report—Hayden, Stone & Co., 25
*■

Corp.

Memorandum

of the corporation in
member of the exeeucommittee in 1956. His entire

1945 and a

business career

Spingarn,

Vice-President in 1940,

director

'tive

<
—

Oil Company,

■

;

memorandum on Lily Tulip Cup

—

Salld Street, Chicago 3, 111.

Standard Oil Company

Inc.—Memorandum—H. Hentz &
Co., 60 Beaver Street, New York 4, N. Y. Also available is a

Corp.—Memorandum—Doyle, O'Connor & Co.; 135 South
La Salle Street, Chicago 3, 111.
T. L. Smith—^Memorandum—Aetna Securities Corp., Ill Broad-

V-i Corporation, Boonton, N. J.
American Machine & Metals,

elected

Skil

7"■
> "V- -;'T '77:"
Corporation—Annual Report — Aircraft Radio

.;7;-7 7

Inc., 122 South La

•

Uranium—Companies with major stakes in uranium—Francis
du Pont & Co., 1 Wall Street, New York 5, N. Y.-j!"
" -

Ohio.
,
Corporation — Analysis
Co., 37 Wall Street, New York 5, N. Y. •

Signode Steel Strapping Co.—Memorandum—The
231 South La Salle Street, Chicago 4, 111.

45 Montgomery Street,

Analysis — Parrish &

Reading

Broadwav, New York 6, N. Y.
< >
W. A. Sheaffer-Pen Co.— Memorandum
V

.vi>

Forbes

Corporation.
He' was made .^n
Assistant Vice-President in 1935,

115

Stock Averages—Circular—Amott-Baker
Co. Incorporated, 150 Broadway, New York 38, N. Y.

Titanium—Study—Dean Witter & Co.,
San Francisco 6, Calif.
,
'

—

Company, Findlay,

Real Estate Bond and
&

of America

Republic Natural Gas Co.

Lyles

James

.Chase

•h

115 Broadway,

York 5, N. Y/
r ^
^
— Annual
report — Mountain Fuel
V. Supply Co., 36 South State Street, Salt Lake City 10, Utah.
North American Cement Cohp. — Memorandum — Hemphill,
Noyes & Co., 15 Broad Street, New York 5, N. Y.
.•
;
Ohio Oil Company—Annual report—The Secretary, Ohio Oil

Heine &

Co.

Co., 40 Wall 'Street, New
Mountain Fuel'Supply Co.

.Harris

'Philadelphia

is,

6, N. Y.

Molybdenuih Corporation

*■

a r r

Forbes

Inc*—Analysis—Harris, Upham & Co., 120 Broad- 1

Co.—Bulletin—J, R. .Williston & Co.,

New York

New York 5, N. Y.'.

Merck &

Valley illustrated

empire—on

buying

;
t

the-cor¬

with

porate

departments

N. Y. Also available are
Pittsburgh Metallurgical. ^

Street, New York 5,
Honolulu Oil, and

associ¬

been

ated since 1927

120 Broadway, New

Pittsburgh 19, Pa.

McGraw-IIill Publishing

First

Boston in 1934

York 5, N. Y.
Co.—Memorandum—Moore, Leonard & Lynch, Union

Hoppers

Lyles

Mr.

joined
!

Hanseatic Corporation,

Woods, Chair¬
man.

New York 6, N.

Shipbuilding & Dry Dock Co.
and
Canada—Atomic Development
Mutual Fund, Inc., Dept. C, 1033 — 30th Street, N.„ W.,
Washington 7, D. C.
*
Burnham View — Monthly investment letter — Burnham and
Company, 15 Broad Street, New York 5, N. Y. Also avail*
7; able is current Foreign Letter.
*
Common Stock Review—Survey—Harris, Upham & Co., 120
Broadway, New York 5, N. Y.
**
'
^ '
Delaware Valley, U. S. Av—Copy of Philadelphia* Inquirer 1957 ,
Newport News
Foundation Company of

and items on

George

by
*

Y.
Home Aircraft—Analysis—-Blair & Co. Incorporated, 20 Broad. „
Street, New York 5, N. Y.;
.
Investors Diversified Services, Inc.—Revised study—New York ,
way,

announcement

(No.

Boston

First

Franklin Life Insurance

It i*

Senior

Michigan Street,

East

207

understood that the firmament toned will hepleated *
to mend interested parties the following literature: ,

L3des has been elected
Vice-President of The
Corporation,
100
Broadway, New York City, ► ac¬
James A.

Inc.—Memorandum—The Milwaukee Co.,
Milwaukee 2, Wis.
Foote Bros. Gear & Machine Corp. — Memorandum — Richard
Bruce & Co., 26 Broadway, New York 4, N. Y.

Dun

Recommendations & Literature

;

York 6*, N/Y.

Corp., 80 Wall
«

Atomic Letter

Lyles Named Sr. V.-P.
Of First Boston Corp.

Company—Analysis—Ralph E. Samuel & Co.,

•77'- 115 Broadway, Nevv

River Raisin Paper Co. and United

May

17, 1957

(Baltimore, Md.)

Baltimore

Security Traders As¬

sociation

22nd

spring

annual

at the Country Club
Maryland.
>
-'7

outing

Firm

Trading Markets in—r

May

17-19,

1957

Calif.)
„

Southern Union Gas

;
•

and

•

;

■> f

•.'
J

•

other:

many

;

' *>•

„

■

f>";
, -

• Operating Utilities "

Showers

Murray

Nongard and Rowland H.

Richard C.

Murray, former,

■*

Angeles,
7

Security Traders Association of
Los Angeles annual spring party
at the Palm Springs Biltmore,

Palm Springs,

Calif.

h ; r -

princi- '

well-known in the invest¬
business careers with theBond Department of the Harris Trust and Savings Bank, and have *,
also been with other well-known financial organizations.
- '
Robert Showers has had his own firm almost continuously .
since 1925, except for his' service as a Major for three years in

pals in Nongard & Company, Inc., are
ment field, both having started their

Robert

Richard C. Nongard

't-

*■

(Los

DEPENDABLE MARKETS

•

•"

Natural Gas

Companies

Transmission &

Producing

World War II.
.

the

;

•

„

will do business at 105 West
present location of Nongard & Company, Inc.
The merged firms

Adams Street,
j|

TROSTER, SINGER & CO.
Members: N.

Security Dealers Association

With Bennett & Co.
(Special to The Financial

Trinity Place, New York 6, N. Y.

Edward
associated with

HOLLYWOOD, Calif,
Edison has become

Chronicee)

Bennett

Boulevard.
John

6253 Hollywood
He was formerly with
Co.,

Barbour

Co.

McCormick Adds
(Special to The Financial

LOS

ANGELES,

mond J. Audet,

Chronicle)

Calif. —Ray¬

Harry M.

Bennett,
with

and Don K. Yoshida are now

McCormick
Wilshire

and

Company,

Boulevard.

3761

DEMPSET-TEGELER A CO.

Volume 185

Number 5630

The Commercial and Financial
Chronicle

;

-(1809)
harmed
one

From

Washington

Ahead

suburb

of the

the. time of the

most "Federal
cies

are

Government

trying

money to use

agen¬

throw

away

their appropria¬

Post-

tions,
master

when

year

eral

the

-the

He*

somewhat of

bee

had

address

returned
care

letter

New

anybody.".

re¬

with

re*

change - and

it
k

address

York.
was

Mr. Summerfield

this

were

zone'number,

told

not at all.

was

were

taxes
not

Mr.. Summer-

businessman

he ;

sought
to
stamps to four

Wash¬

and

sub-divisions.

govern¬

For two years he has been

that,

them

piqued
to

raise
cents.

Not

wants now. to
five cents.
He

that
this.

hasn't

try¬
cent

getting

His dramatic gesture of
curtail¬
ing mail service until he
got addi¬
tional appropriations from

Con¬

gress

was

going to get something else.

With Lee Higginson

quite
able

uncalled for, and my
that, besides the addi¬

tional appropriations
in the emer¬
gency he has created, he is
also

increase

been

practically

every citizen.

guess

First,

three

What he would
accomplish ast^e
satisfying his vanity is sim¬
ply to raise taxes on

from

David C. Haight is

now:

from

operating at

operated

was

going to be permitted to

and

organized,
Navy

loss

and

loss.
ever

has

since

have the Army

practically

every

City, members

Stock Exchange,
nounced.

Mr.

the

New York

it has been

Haight

was

ously with Blyth & Co. Inc.

*
This advertisement is neither,

The

General is
the

Carlisle Barfcroo

one

less

•

The

•

influential

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

any

of these securities.
*0-

offices

in |

with

the

National

master

of the

make it

ambitious

NEW ISSUE

April 18,1957

Chairmanship of the

Committee

power

itself,

although just
oldest,
and
usually
past
it * has
been
tied

the

Generals

party

worthwhile

have

been

■*Vf

$100,000,000

Most Post¬

man.

■

»'

con¬

tent to let the Post Office

ment

Depart¬
along under its career

run

while

men

they found

for their energies

ly,

outlet

elsewhere, most¬

I have said,

International Bank

Mr. Summerfield

Reconstruction

Chairman of

the National Committees.
*

-atid

Chairman

was

of the Committee in the 1952

cam¬

paign

from

but. he

this.job
he

divorced

was

when

Postmaster
since

took

has

been

Ever

trying

his personality

press

the

over

Generalship.

in this sole

tions

im¬

Twenty-One Year Bonds of 1957, Due May 1, 1978

the public

capacity with innova¬
sort

one

after

Interest Rate 411%

another.

■

I remember reading a magazine
article
in the early New Deal
,

which

was

satire

the

Republican

agitation

should

businessmen

government.
roll

there

the

pay¬

met

never

uals that the New Deal

ing

then

that

the complaint against the
professors and intellect¬

was

college
in.

This

Price 98%

bring¬

was

satire

pictured the
Post- Office
Department having
been turned over to private enter¬
prise.
Well, it turned out that
there were several postal services
competing against one^ another,
there was a price war on the cost
of stamps and then a spirited
fight
which

over

one

the

Plus accrued interest from May-1, 1957.

services

could turn out the most decorative

stamps.

V-

Copies of the Prospectus

may be obtained from any of the several underwriters, ineluding the undersigned, only in States in which such underwriters are qualified

The story was not any funnier
the way Mr. Summerfield
has conducted himself. He seems
.

than

from the

to act as

dealers in securities <ind in which the

Prospectus

may

legally be distributed.

beginning to have deter¬

mined to attract attention to him¬
self. With considerable fanfare be
that

announced

henceforth

there

would be writable pens in the post

offices,

welcomed innovation, of
hardly earthshaking

but

course,

because,
since

the

been

citizens

trained

pencils

own

and

had

long

have

their

The First Boston Corporation

Morgan Stanley & Co.

whenever

pens

they wanted, to write anything at
post office desk.

Bankers Trust Company

J. P.
,

The energetic Mr. Summerfield
then
launched into mail trucks

Morgan & Co.
I ncorporated

•

with

both

drives.
was

costly

wear

trousers
from

left

and

right handed

He had learned that there
lot, of

the

lost

left

There

the

were

But

up.

lot of

Guaranty Trust Company

Chicago

Harris Trust and Savings Bank

N. T. &S. A.

Blyth & Co., Inc.

seat
*

It used to be that
a

citizen, of

letter

Chicago,

Post "Office
address
There
the

used

Post

ered mail to

would
the
to

■

Drexel&Co.*

■'

The Northern Trust Company

Eastman Dillon, Union Securities & Co.

Glore,Forgan&Co.

the

Goldman, Sachs & Co,

• *

Harriman Ripley & Co.

you

say,

and

Lazard Freres & Co.

Lehman Brothers

Merrill Lynch, Pierce, Fenner & Beane

Salomon Bros. & Hutzlcr

the

his

look

lot

could

Kidder, Peabody & Co.

Incorporated

prominent

telephone

of New York

Chemical Corn Exchange Bank

of New York

Bank of America

the service of the depart¬
kept going down instead of

address

The First National Bank

The First National City Bank

hours saved

man

savings in the
postmen's pants.
*
.

and

ment

and

postmen's
having to shift
the right in the

their

motion

and tear

driver's seat.
statistics

the

;

Cabinet
-

an¬

previ¬

Post master

about

associ¬

He^ says

he wants to,, ated with Lee Higginson
Corpora¬
stop the Post Office Department tion, 40 Wall
Street, New York

ridicule, saying
<

coun¬

ing to increase postal rates.

Washington

Maryland

relented

showing activity.

residents of Maryland,
in

pen.

ment,just likes to be doing things,

Chevy Chase residents

flooded him with

Washington with

the

all over the rest of the

field,

The fact that there
in

try he has made people living in
well
known cities change
their
mail addresses to
little, unheard

disturbed the Postmaster General

paid

doubt

and

was no such street

they

but

Maryland

them to

stroke

•'

the resi¬

ago

Washington,

ington, D. C.
;

cut

sections.

in
+

resident would have his mail ad¬
dressed to such and such a street

Only

because: it

without

ago

a zone

addressed

office.

better

now.

years

Chevy Chase,
of

■

petrel

since

ever

has

I had

aeo

that

through.

dential

been

stormy

had

put the afternoon delivery fo resir

neck;

has

Long

country got it
in

you

letter

your

days

was

went

definite

mailed

peo-

pie

But

definite address and

few

"not

Congress

and:the

engaged

in warfare
with

have

number

Summer-;
-

symbols.

turned

Gen-,

field

move

any¬

reduction

a
-

by Mr. Summerfield that hence¬
forth they should have their mail
adressea to Washington with their
street addresses and
zone
num¬
bers remaining as
they had been.
In other words
a
Chevy Chase

By CARLISLE BARGERON
At

was

couple of

dents of

;

inconvenienced

but -it

service..

book.
stories

Office having deliv¬
addressed only

a man

Smith, Barney & Co.

—

Stone & Webster Securities Corporation

White, Weld & Co.

•

The

Commercial and Financial

1957

Chronicle... Thursday, April 18,

(1810)
•«

Valuable Dollar
Spent Is the Research

The Most

Chairman and

participation in the work and pur-'
chase of the result.
/
Today,
thanks to a decision
made more '* than a
half-century

A. PRICE*
Electric Corporation

By GWILYM

Dollar

President, Westinghouse

all electric power consumed since 1900,
consumed since 1948, Westinghouse chief
executive predicts the electrical industry will grow enough by
1905 to power another U. S. A. In describing recent rapid
growth and contributions of research, Mr. Price states 20% of
$6.3 billion spent in this field originates from electrical manu¬
facturers, and that along with chemical and pharmaceutical
industries, they were the first to harness science in order to
design new industrial process and products. Points out: The
utility industry bears the brunt of research-development cost
in atomic power field; first full scale U. S. A. nuclear generat¬
ing plant will be operating at end of 1957; and increased
research should be pursued by all industry.
responsibilities,

the

have

always

*irst, that are

involved in

piving a good economic peifoimance.
This means that we must sell
our

1957, the

research work in our
on
primarily
I hope

manufacturers.

The

productivity of these scien¬
by use of some

is improved

elaborate

—

and very

men

suc¬

top

ceed

management.
We must, in
other "words,

pay"our way
survive.

and

these

re¬

sponsibilities
we are

dealing

with matters
A. Price

Cwilym

time

any

are

mon

terprises under

that

to all

com¬
en¬

system at any

place.

and engineers working on
research in this country; today we

entists

had

which

haps

years,

earning

within the framework of mid-20th

which,

development become

and more

important, as more
companies set up larger
and larger research budgets.
The electrical manufacturing in¬

relatively more

Century American capitalism.

Finally, we have the problems
are peculiar to our industry
alone. These are largely technical
that

well aware, has
major pioneering role in
national research effort. With

dustry, as you are

played

difficulties

here

this

than they have

ever

the

Our

steam

pharmaceutical
the first to
harness science in order to design
new industrial processes and prod¬
ucts.
The scale of our technical
effort today far exceeds that in
chemical and

industries,

with

are

working

finer tolerances, harder
rarer
metals, larger units,

pressures,

and

faster soeeds.

Each time the elec¬

tric utilities double their

generat¬
ing capacity within the historic
ten-year period or less demanded
by our economy, the effort be¬
comes more massive, until it be¬

were

able

work incentives/' Though

Soviet

1947. At that
outstanding currency was
called in and exchanged at the
unfavorable ratio of ten old fo?
each new ruble. //
*>• '-;•
-v.

time, all

it may

crage

Russian

the

price-increasing (sales)

though income taxes are also
levied.
This is, of, course, quite

in the form of

the

taxes

government
ru¬

opposite of the situation in the
States, Great Britain, and

United

of:

out

Taxi

against inflation^
Soviets have relied predomi¬
their fight

nantly on

the

Prefers Sales

U. S. S. R.
In

1953 handed
over

of December,

form

people pay the

household in

dustry will grow
to power

Mr. Price before the
Chicago,

cine.

with

The function of these taxes,

irst tnere is the

administrative

convenience of collecting the bulk;
of the revenue from the relatively

of the state.

succeeded

the

real cost of power by

indus¬

raising

productivity of the men and
the
efficiency of the machines
that make the power.
The elec¬

the

tric

utilities

probably

the

Continued

is being

how much tax

Inflation

•

lowering

have

know
paid—they
only know that prices are high.
Almost all important raw mate¬
The state further obscures the pic¬
rials and equipment are allocated
ture
bv insisting that the sales
directly and are not bought or taxes are not taxes on the con-*
sold on a free market.
The role sumer but simply levies which
of taxes in this picture is to ab¬
skim off into the budget "surplus
sorb the huge excess purchasing
product" due to the increased pro¬
power in the hands of the popu¬
ductivity of state industry.
The
lation and thereby prevent either
importance of such devices for
repressed or open inflation • from softening the impact of taxation
ueveloping.» Looked at. from an¬ and the discontent which it might
other point of view,
the taxes arouse can be easily understood
retailer and consumer never

High Taxes Prevent

enough by 1966

research and

program

considerations are

however, is

turn out
more
product per worker today
today.
-than any other industry in Amer¬
The
truly
remarkable
thing ica. Last
year, the utilities pro¬
about this research effort is that
duced four times as much power
much of it actually is being car¬
as in
1939, and produced it-with
ried on as a partnership between
fewer employees, with good man¬
two industries within the electri¬
agement, hard work, huge invest¬
cal industry — the manufacturer
ment, and some good apparatus
and the utility.
I do not know

development

At least
suggested*

taxation?

tive to income

.four

•

another United States.

The two branches of our

the

continuing, growing

investment in in¬

by. the state on

has

try

That
all

other

dustry, particularly heavy indusrtry, on the military machine; and
on education and socialized medU

developed by research.
how
this
pattern
developed —
I know of no better way to
American industry is whether it was by design or acci¬
Conceivably, r the
utility illusti ate this productive partner¬
stepping up its use of a compara¬ dent.
tively new weapon with which to companies could years ago have ship in research than by citing
attack its problems, whether those initiated their own research and
several projects that one electri¬
problems are eternal or tempo¬ development programs and thus
cal manufacturer has undertaken
rary, economic, or technical, na¬ would be dealing today with the
in cooperation with various utility
tionwide
or
industrywide.
This manufacturer simply as a supplier
companies.
The
manufacturer
instrument is industrial research of
products made to their design.
has to be my own company, since
and development. It is to this spe¬ But from the early days of our
that is the company I know best;
cial technical effort, as it applies
industry the utilities have rec¬
but I ,hope you will consider these
to our own electrical industry, that
ognized "that
the manufacturer
representative
of the
I want to devote the rest of this must be much more than a fabri¬ projects
good research and development
paper.
cator.
They have supported
a
being done by all the manufacaddress

inflation—though this is inde¬

ideological grounds; and an income tax ■>
U. S. S. R. needs "would have a disastrous 4 ; ;

Marxian

the av-

been con¬
When we look
forward, we see future achieve¬
ment outlined in the equally dra¬
matic fact that the electrical in¬

pictuie, one-half
sumed since 1948.

Today

*An

f
vt;

gins to approach the superhuman.

American
Power
Conference,

March 28, 1957.

reveals: Soviets people pay

economy

v i:

amounts to about one-fifth of
money that American in¬
ever-higher temperatures and dustry is spending in that field

complex, each problem more dif¬
We

small number of state*' industrial
not, as is often said, -enterprises as opposed to some'30
to depress the Soviet standard of
or 40 million households. This was
living and make possible a high,
particularly important in the '20s,
level of government expenditure;
and '30s when so many people
anymore than
this.)Was strictly, were illiterate and not competent
be put upon it by boom, depres-;
true in the. United States during
to calculate an; income tax and
sionr war, postwar expansion, coldWorld
War
II.; Essentially the when the peasants had not been
war, atomic projects, and by what :
Soviet Government keeps
down completely herded into collective
someone
has- called "our guar¬
the standard of living by simply farms and tax-evasion was easy.
anteed annual increase in popu¬
not
rationing more coal, steel,
Second, the sales taxes which
lation.
When we look backward
cotton, aluminum, tractors, labor,
are levied in t^e Soviet Union are
we see immensity of achievement
etc., to consumers'; goods indus¬
essentially "hidden" taxes. In the
in
the simple but dramatic fact
tries and to agriculture but rather
case
of many commodities, thd
that of all electric power con¬
directing these resources into sec¬ taxes are levied at an early stage
sumed in this nation since 1900,
tors which strengthen the power
of the production process and the
when turbines really entered the

completed just 60 years
the greatest forward step
in steam engineering in a century,
but it presented a comparatively
simple technical problem when set every other industry except air¬
beside some that face our engi¬ craft. Electrical manufacturers, ei¬
ther for their own projects or con¬
neers and scientists today.
As we push toward the outer tract projects, are spending about
reaches of creative ability, each 6% of their sales income on re-'
new
proposition becomes more search and development programs.

turbine,

ago, was

ficult to master.

seemy

iow-

research and

greater

highest taxes of any people in
the world—probably the highest
in
recorded
history.
Unbeliev¬

exploratory in- >

the problem,

nature.

D. HOLZMAN

Department of Economics,

the Soviet press report- "
virtually the. only taxes/ ;
levied, Professor Holzman shows the various types of taxes ,;
and extent to which each contributes to total revenue; -Points^! /
out misleading effect of taxes upon their price index and that
^ /
not until 1952-53 did living standards reach 1928 levels.
1 / /
impact

expensive-

our

been. For example, the first

■

western nations which fo£
every 100 ru¬
the other hand, may
equity considerations tend to pre/"
bles earned.
than
not pay off at all.
fer income to sales taxation.- So¬
.
The average
laboratories.
viet preference for sales taxes can//
/•The chief recommendation of
w a s;
This is a comparatively hew and
even
the way we do our research, of
not be explained on ideological
higher in the
strange factor in our economy. In¬
course, lies in the results we have
grounds—for sales taxes were con¬
F.
D.
Holzman
dustrial research as we now un¬
early postwar
achieved.
The partnership
has
sistently attacked by Marxist writ-derstand the term began only a
period, reachers.v as
been
an
exceptionally fruitful .
regressive, falling, they
few decades ago, and it began on
big a peak of
;'^V'.:w claimed, with heaviest weight on
one.
Both segments of our in¬
69% in 1948—and has not been
the present massive scale within
the working classes. Why then do
dustry have met the two require¬
below 50% since 1931. —
the past ten years. No nation has
v
the Soviets use sales taxes? What
ments
that are prime;' facts of
ever before made such an incred¬
business
life in America today. > These incredibly high taxes re¬ are its advantages for them rela-?
flect the tremendous expenditures
ible investment in the systematic

laboratories; today, more
4,000 firms maintain such

meeting conditions that are com¬
mon
to
all enterprises working

are

edly insists minor income taxes are

than 200.000.

abnormally high break-even point' procedure in which the research
that keeps rising higher because organization as well as the in¬
of rising fixed costs. Here we are dividual scientist is created. Today

designed to prevent

sufficient to meet

They have raised the quality of
next, of application of scientific knowledge
the product and they have
share of a limited to its industrial problems. /y/y-;/
.
:'?r: The development is not
only ered its real cost.
number of buying dollars in the
." We
see this in the new -and
fastest-moving, most competitive, new; it marks a revolution in
household
appliances
thought and method. improved
most technically proficient econ¬ scientific
and in the more efficient appa¬
omy the world has even seen. We American industry is engaged in
ratus
in today's power systems.
must keep growing in the face of nothing less than the unique at¬
We see it in a generating capacity
shortages in trained manpower, in tempt to mass-produce scientific
that for more than a half century
some
materials, and, perhaps, in knowledge, and the technological
has met every demand that can
money.
We must stay above an end-products of knowledge, by a
have

are

fensible

yestigation$, which may pay
In 1920, in some stunning development off taxes
in
about 220 industrial re¬ insulation or apparatus design—' bles

have more

highest taxes of any people in the world; principal revenue
source is hot income tax but price-increasing
(sales) taxes

The

Parinership

We have spent more

train up

Expert on-U. S. S.
; ;

project.

tists

University of Washington, Seattle

;

discipline.". Experts / of various
specialties — physicists, chemists,
metallurgists, and others — must
combine their efforts on a single

in that field equipment, such as the computers
product for service at a profit.
We must make since 1950 than we spent in the that are being used to make the
efficient previous 180 years of our national calculations in the design of tur¬
use
of our history.
bines. Researchers need freedom
In 1920 we had about 9,000 sci¬ to work for many months, per¬
manpower. We
must

has

research engineer, "Most
are not clean; they in¬
more
than one scientific

Fruitful

■*

By FRANKLYN

solutions
volve

r-f ♦-

Associate Professor,

recommend

of scientists
must work together to achieve re¬
sults. The old-fashioned inventor
and uncommitted scientist "have
been replaced by teams of scien¬
tists conducting programmed -re*
search. In the words of one wellknown

-a'

» • *

Developments in Soviet
Taxes and Standard of Living

the
will

Today large groups

United States will

indus¬

Recent

:/;;■/ J;v; •.;*

C-r

it.

in Our Time

spend about $6.3 billion on
trial research
and development.

you

this arrangement

that

industry-

carried

certain advantages

one-half has been

Growing Research

ago,

agree

pointing out of

After

their disposal:

aids

best

two

make it unnecessary

ernment

have,

for the gov¬
to
resort to

printing money or other means
inflationary finance.

interested in
avoiding inflation for the usual
Soviets

The

the

reasons.

are

early

a
substantial
in
work - incentives
manifested itself in ab¬

experienced

eduction

which

and in
force

withdrawal from
millions
of

workers

such

working wives

and very old. The
and costliness of the

the very young

the

Third, an income

tax of a

sizd

to meet; Soviet requires
would have a disastrous

necessary
ments

work, incentives. It is
the effects
of a progressive income tax aver/
aging more than 50% of personal
income or the huge
gap which

not

difficult to iinagine

earned
Under the
the labor circumstances, a non-progressive
marginal hidden sales tax makes much more

absenteeism and lateness,

normal

age

postwar" impact

period when repressed inflation
pervaded the Soviet economy,
they

half of the aver7
person's income goes back to
state each year. /.
.,
;
;
}

where more than

would exist between wages
and

take-home

sense.

pay.

Soviet Union the
state rather than private enter¬
controls and ra¬ prise manages the consumers'
tioning which were in effect from
goods markets. It is the state's
1940 to 1947 and the inevitable
job to lower the price of commod¬
black market which accompanied
ity A if it is not selling well, to
them provided additional stimulus
raise commodity B's price if it is
to
keep the financial house in
selling out too rapidly, etc. The
order. This they have succeeeded
flexibility of price required for
in doing since inflation was wiped
Continued on page 56
page 54 out in the drastic Currency Reclumsiness

system of price

Finally, in the

Volume 185

Number 5630

The Commercial and Financial
Chronicle

...

(1811)
4.16% and sells about

Chemicals for Fiber,
Factory, Farm and Pharmacy
By IRA

earnings.

the

present
we're

still

chemical

market

the

ficiaries

almost

any

mention

was

.-'buy,"
nearly,

pansion

and

is down

For

■>

this

year

would

look

rialize

sells

1959

may

not

mate-

cash,

governments

and

from

$52

prices.

the

long

however, it is sustained

run,

$2.65 last year, to

with

and

effective

re-

merchandis¬

competition will emerge. Accordwe like the ones that
spend

year.

Common

ingly

dividend

the

should
Allied,

Stauffer

common

sells at

$4-25

earn

money

about

ing

(5.8%)
and
(5.4%).
There's

73,-paid: left for

$1.80 plus 2%; in stock last
a,1(l {should

markets

research

(currently

Ely

—

G. D. Searle (about

metals and fuels and a major producer ot titanium tetrachloride

terrific with

program,

until

mate

com-

Plus^a stock dividend last year,
jStauf'fer is a live company in

last year and new

prod-?
ucts (including
titanium) plus betr

here

net

perhaps $2.90 this

for

.earnings of $4.90 to $5 per share.
Company spent $17.5 million on
research

Potash

ing strategic and exotic mineral; ing that
pays off.
No company
These, added to basic chemical can ride
long on a single miracle
operations, suggest increase of per drug. Either
price reductions or

a 70c
per share slip-r
(in 1956) from 1955 results.

(although the big ter results with the'old
forward swing in Penh Salt, -pred* advance
the fortunes
of
icated on a large scale plant ex- Financial
position is

(assuming

one)
could

you

>■

American

major position in boron,
and lithium, another
up and com-

„

timely comments on^varying
r^tes of progress
retail, in assorted areas of chemical production.

earlier; phases "of,
bull

;

bines

correction for

lome

from retort to

Stauffer.

points from its 1956 high.That'3
,,'more than enough of a market
page

Containing

times

.42

COBLEIGH

Enterprise Economist

13V2

Allied Chemical at 87
V2

Lilly

sales),

7V2%), ScherMerck

plenty

Co.
area

cures—cancer,: high

blood pressure, heart disease
and,
of course, the common
cold.. And

year

share this
salient growth
a

I960)., *
,4 able securities worth
$290 million year. , It presents
tranquilizers
we're
/: This
going
mad
year, as in any year in. the at the 1956 year end against cuiv characteristics.
'
about them:
past decade, a lot of smart, money rrent liabilities at that date of
smart
rent
$73.1
: Diamond Alkali earned
il.
i». mill;inn.
$3.83 i«>
is
Alli.j/S
We would like to be able to
find in
ic
Klim
its way into American niilfiori.*
/VKI.V
Allied .is a blue chip 1956against $3.38 -im1 1955: SdIt single out, from the above
kaleid-someiotCyanami ■
' "
- all
chemical equir
ties advanced

j*i v.

•

t-_'' •*

•

them

quite

Since last An-

junctun
yield of

gust, however;
c h e m l c a 1

pect of

stock

split,^Vindicatedthis year^'over 1956)"with^a "irrst.

gain in net of about 10.%^(4) high

quarter

sales

volume

above

litted
ln

hlalf

product prices increases

the

last

quarter

from

power

.averages, have

suffered
U.

Cobleigh

ion

there

now

plant- at
Fortieiv Lav Union Carbide has picked
up in
price around 77V2, with first quarter Sales
but net slipped
a $3
dividend, well covered. Amer- 4c from the
corresponding period
ican

market

Cyanamid

Asa

presented
d

area

Olin
pf

'lift
llal

in-

Mathieson, classic example

solid ' growth

Cellophane

P°cSS
/.f

oiPinimr

perennial

by merger' had
consolidating to do last'vean
-Benefitting ' bv A
100% » greater

th/v

some

techniques of selectivity in an
where "buying the market"

Si?! °cnl

stjance- of the good getting better,

imique opportunity to winnow the
sheep from the goats, and to apply

the

this

r-.n

production

year; and
"—»

JZZSSZ

capacity
$36 million gov—r

:i0n gov"

eminent contract to construct and

gains.

,> run

■

last year;. Hercules
Powder should
in 1957 turri} in results

quite

and

before 1958.
:

-d

,;We

son's
son's

Well

for

able

missile
missile- fuels.

the

for

coverage

■Diamond

half

high

Olin Mathie-

upon

contract
one

sonable.

*♦'' h

and

touched

plenty

that

and

cannot doy Our

couple

OR-

the

best

state

companies

exciting-

way

each oi:

similar

appears

year, rise by 5V2% to $25 V2 billion.

the
per-

and

%ie last two years,
distribution for 1957

expected
:

CORTISONE;

effort at clairvoyance

plant

perchlorethylene

was Paid ln stock

not

But this

added

new

$1-80 casb dividend/Three

line 'with 1956—$2.10 per share.
More substantial improvement in
earnings should

£ON,-4>r another

polyvinyl chloride. Diversity and cited will increase their net by
good management should find re- more than 10%; and that total
'flection in another advance in net, chemical industry sales will, this

Current

eros-

price.
result

chemical

sub-

stantial

for

DACRON, NYLON

of -1956• and

looks forward

Ira

ments*

spectacularly.

now

between

N. Y. Investment Ass'n

rea-

To Hold

avail-

its

1957

The

low"

Dow is

New

Outing

Investment
York

will

Association

hold

ahead with its'
magnesium but price competitions
in some fields are expected to

its

annual

moving

plant for the development
outing at the Apawamis
Club,
elements ' in
this " category
Our field of discussion
is
Rye, N. Y., on June 28.
today, and production of exotic fuels for boron.
In the United States the
accordingly, will include a swift rockets and missiles, Olin has a
boron producers are U. S.
and sketchy review of
Borax dampen earning power somewhat.
performf "brighter, current outlook. And 111 &
r
Two With Carroll Co.
Chemical, Stauffer Chemical Against a net of $2.5?-for
ances and results in
1956,
1956, together the longer
future, .there's the big and American Potash & Chemical. a reasonable projection for
with some projections of
this
(Special to Thk Financial
capital
Chroniclk)
$23« million aluminum
vcompany .(There was a recentt public offerOutlays ' and earnings trends m
year,
DENVER, Colo — Henrietta
in the
certain companies in 1957.:
tl 1
Borax at $45 a share). 01 dei of $2,30 pef share.
<
Spe?. P.10je5&
Wiederkehr and Stanley G. Bai>
ifM1? W1
Of the
above, our current prefer" Pharmaceuticals
JH.
cifically, this piece will be a Revere Copper and Brass.
can
still
be rett have been added to the
Olin vence
staff
would
swing
short-order search for those isslightly
to dramatic and the prospect of a "of Carroll &
Mathieson at 48 paying $2
Co., Equitable Buildyields American Potash &
sues which, from the
Chemical, and new wonder drug can still ani- ing.
present mar- ■<■'■■■>■
\
;
/
1'f
ket plateau, can
Vlogically justify ♦ '
some hopes for advance
in earn-v
"
ings, dividends and price during;^;
*
.

•

■

womd^seem to be

u„

...

........

;

•

this calendar year,

r ;

and

1956

from

net

$9,26

decline

1955

was

to,

by the

$8.20< 16r%
;

ended

year

1956,

with

■

into

is true, * ^ ^
earnings' gains' <
r

these" some.'just
the
plus column. F

Chemical,
Electrochemical

American

the year.

from

$4.70

tally

the

;

2c,
14c

was

that

;f; V

Common Stock

otff. ff

reached-

earlier.

year

•

(Par .Value $1 Per Share)

high of $5.61—up

the

•-

One of the most im-

6c,:

yilus

per

plus

Cyanamid. plus

pressive performances
Alias
Powder which
new

Fourteen

Stauffer

Hooker

post

but

squeaked

and

6-30-56);

companies,

able to

were

270,000 Shares

;chemical

"f-v.

" f

duPonl

offa- oj.these. Securities for sale. The offer is made only by the
Prospectus.

;

1956; and Allied Chemical froin',
$5.27 to $4.74; «nd in,
agriculturals, *■
Virginia Carolina Chemical- from ^
$2.28 in 1955 to 20c in 1056 (fiscal

■t

not an

...

adjustment

for chemicals is. indicated
per

■This is

The extent to which
year of correction

;

To-

;

advance

in sales'from
$23 billion in .chemical.and allied

industries in 1955; to $24.3 billion'

1956

■

was
not
accompanied by
equivalent advance in .net.

Now

for

this

year,- capital
the

Price $8.50 per Share

ex¬

penditures for
industry will
be
$1,750,000,000 (19% higher).
ample-evidence that managementsare
solidly optimistic about-tile
ability of this fabulous segment to
continue to grow and earn at
rates
well above the national

*
•

'
;

industrial

But chemistry, like other

average.

trades,

squeeze

major

011

feeling

the

margins., Thethen, in citing

for

performance

above

** 7

Kidder; Peabody & Co.

aver-

agricultural

chemicals to

roaring

better

suggest

buy

inventories
mand

that

today.

they're

high, fertilizer doinsistent although a

structure

evident.

Caustic soda, soda ash and
chlor¬
producers, 011 the other hand.'
should benefit
by some rise in
ine

vanced

Paine, Webber, Jackson & Curtis

;

Pesticide

are

not

price

demand,

Clement A. Evans &
"

.•

Company

•

McDonald & Company

•
.

Bache

Co.

Fulton Reid & Co., Inc.
;

Courts & Co.

April 16, 1957.

Goodbody & Co.
Merrill, Turben & Co., Inc.

Pierce, Carrison, Wulbcrn, Inc.

Stevens, White & MeCIure, Inc.

in prices which
ad¬
the-last half of 1#>6.

Hooker; also Diamond
Alkali and
Pennsylvania Salt should be
bene-

lncorpf>rated

Atwill and Company, Inc.

and

...

1957 is pru¬
dent selection. For
instance, there's
not
much- in
the
a

undersigned,

obtained in any State in which this
only such of the underwriters, including
may lawfully offer these securities in such State.

profit

problem,

chemical
age

definitely

Copies of the Prospectus may be
,' announcement is circulated from

low traffic

oi Railroad Mergers
And Railroad Finance

The Future

Railroad

railroads should

disaster, then the Government will doubtless take over
the carriers. In this democracy,
the Government pays for anything

against rail bonds are

railroad bonds

and most

it takes

would then be

guaranteed by the

might receive the average price at
which their stock sold for the past

thrcp

vcars

—

or
—

similar for—
—

.some

—

Nobody would

mula.

gain except

might

bondholders

the

that

rescued.

and

mergers of very
calfiers are
such as Chicago and

was

quoted

order

squeeze

out

After

ex-'

penditure
huge

,it

sums,

the

David

railway

slightly exceeded . the
book value and hence, there was
no
water so far as the industry

property
,

was

concerned.

During World War I,
ernment took over the

they prefer to
have debt reduced rather than in¬
creased— but in most cases, the
interest is payable only if earned

the gov¬
railroads.

maturity

worse

and

to-end

In the case

some

cases,

physical condi¬

ject to income tax, the unsecured
debenture of the Nickel Plate will
automatically become a fixed in¬

the press empha¬ licity in the papers, arid they are
claims that if\ they as follows:
1—C & E I—Monon.
have to pay higher wages, they
>
will be faced with bankruptcy. In
2—Frisco—Central of Georgia.
3—T P & W—P R R—Santa Fe.
fact, they have experts shedding
crocodile tears for days on end.
4—Northern Pacific — Great

wage;adjustment
before the

they go

reached,

Northern—Burlington.- O
5—Kansas City

Commission
and shed more crocodile tears and
claim that bankruptcy will be im¬

Interstate Commerce

-yv

Southern

■

—

not receive

merger

Zlvile Zense' comoet£onbefweeii ^h^^MMdle-West^and
Nortnwest.

lines, and

abandon

Presents an Illustration
For example, there are three

expect to

these

actually see very few
completed, as

mergers

proposed

lines from Chicago

doubie-track

the same

have

For

road

which

1
•

"-U

the

75,000. Shares

Nickel Plate, from

the Canadian National
and other carriers at the Niagara /
Frontier. If it was merged with

the C & O,

1|.

'' ■

Iowa Southern

System •
called the "Erie
System") would extend from Chi¬
cago to Hoboken and traffic offi¬
cers
of the
Nickel Plate, and
Chesapeake and Ohio might re¬
sent soliciting any business that
might go to a competitor. Al¬
though most traffic is routed by
the shippers as we all know; in a
merger of Lackawanna and Erie,
it is conceivable that railroads like
the Nickel Plate, and C & O might
prefer to use their efforts to steer
some traffic over the Lehigh Val-y
ley or New York Central east of

the

buy any of these securities.

ISSUE

is an independent
receives substantial

traffic from the

■

••

April 17. 1957
NEW

example, currently

is ntitksr anoffer to sell nor a solicitation of offers to
'i he rffefing is made only by the Prospectus.

This tolwrtisemenl

Erie, the Lackawanna

Utilities

(which might be

Buffalo. C;

Common
Par Value

Stock

SI5 Per Sljare

Price §21.50 per

Objection

One

Company

Southern

That is one

objection to an end-

arid there is little
Hudson—Erie— to be gained other than the conLackawanna. \
r •
i y..'; solidation of duplicate off-line of¬
cizing the carriers
8—Atlantic Coast Line—Florida fices, duplicate Official and staff
procedure but it has a dampening East Coast.
positions, and in some cases, a
effect on railroad credit.
9—Missouri Pacific r— Texas. & xailroad - shopor yard might be . ,
Today, there are' very few in¬ Pacific.
jointly used permitting the abandividual buyers of railroad bonds;
10—Chicago & North Western— donment of some duplicate facil¬
meaning that when a new issue is Milwaukee.
:
.,-j.
/ r, ;; ities.
....

if they

pending

was

6—Kansas City
Great

ol
& North
& North
Railroad tc
Railroad to

there

Pacific-Chicago
pacific-Chicago

Western-Milwaukee
Western-Milwaukee

two carriers.

the

A.'ih

accom-

in spite of oppothe
gition from their principal com- pacific Northwest
^
petitors ana others
ri
peuiqrs and ouieis.
,
,
.
... ~
The minute a merger story hits
If these two particular carriers the financial page, analysts clasp
could be merged, then the Traffic their pencils and gleefully look
Department and Engineering De- to the future; but in the case of
partment with others could select e r i e-Lackawanna-D & H prothe route having the best profile posal, wait until we hear from the
Plate, from the Lehigh
where severai ws now exiot and Nickel
Valley, from the C & O and other
perbaps all but the principal se - competitors. : There are many
some
step down
hurdles between a proposal and
iected main line to light density
the consummation and therefore,
status.
;':-uvS:£'.

the average

Lackawanna

obligation.

their

Then, after the

if they can

be consummated

haul . . . but it
also might cause a loss of some
traffic handled by one or both of

crease

with the unions,

? cunsouaauoii

Union
v io„

apples. It may be said that
end-to-end merger might in¬

deferred maintenance
The only point I am bringing
had not been made up in many
out is that a change in taxes can
cases before the great depression*
More
deferred maintenance ac- change the style of financing
cumulated during the depression * -- The Press and Mergers
and in the '30s we had an epi¬
Now, then, many are somewhat
demic of bankruptcies. At that
interested in possible mergers; ac¬
time, it was considered proper, in
cording to the press, we might ex¬
a
sophisticated adult family to
discuss
leprosy
at the dinner pect a number of mergers to take
table, but one should not mention place although I have my doubts
that many of them will material¬
railroad bonds — railroad credit
ize as proposed; at least, for some¬
was
than at a low ebb and has
time to come. We might list a few
never fully recovered.
Each time the carriers negotiate of those already given some pub¬
sizes

consolidation

four

Plate,

provision has been written in,
if some tax law
makes income-bond interest sub¬

terest

only

still

would

unless

favor of such mergers

If I have two
hand and two
credit standpoint,
apples in my right hand, I have
are
glorified pre¬ four aPPl®s1 was clever enough
with an eventual to
pile them all in one hand, I
of the Nickel

^ new
plan

^missions, the ICC, labor organizations and others. I am heartily in

plishes very little.
apples in my left

that in the future

tion and all

usually

opposed to the pubijc ♦ course1,
*
the
of
wnu|j
arerai but cmiM-i
would be great w- such a strong
competitor to the Pacific NorthWest wouid be a severe blow to
tbe Mnwaukee Railroad which

^ttoS

opinion that an end-

merger

permitted by the ICC,, as being
interest.

would

be eliminated

faH1itip<; could

would be diminmy

much

wvings ijuxu sucxi d iu^ger wuuiu prepared, m - order to preserve
from $40 to .$50. million percompetition between strong caryear, if unnecessary and duplicate riers the merger of so-called Hill
facilities could be eliminated in railroads should not be permitted

a merger

small sinking fund.;

operation. As you know, the
were
returned
to their

owners

stocks

ferred

drastically and the
physical condition of the proper¬
ties
degenerated during govern¬
roads

bonds

these

down

ment

from

and

Then, although there was a boom
in traffic and revenues, earnings
went

because

practice

Hill

savings from such a merger

acquired by

bshetf

holders

that
value of

termined

was

bonds. A few institutional
look
askance
at that

come

de¬

was

case

Therefore, in very
recent years a number of pre¬
ferred shares have been ^ex¬
changed for a like amount of in¬
5% dividend.

the

comes

merger

ICC

if the railroad
another carrier.
Such
provision
makes such a
merger
difficult to accomplish,
because the coverage of the great-

10% in order to pay

it must earn

water.

the

When"

Z^pfovZe se^ice'STny poTnt ' ^

Railroad
financing has been
small boy, the
little attention to them in spite of
changed, in another respect due to
th*
rn.hiir.ifv
A merwr • .
Senator Lahigh income tax rates. Institu¬
Follette as proclaiming "that rail¬
ni?G conversation niece but it
tional bondholders like to see debt a nice convention piece but it
road stocks were watered" and he
reduced and would much prefer seldom materializes. Let us conprevailed
to see railroads; sell stock rather sider a few of the many hazards
upon Con¬
than
bonds
in order that the involved in some of these particpgress
to ask
stockholders' equity would exceed lar mergers already;referred to:
the ICC to
the total funded debt of each car- i. In
case of Q&E I-Monon,
evaluate all
rier. With the present tax laws, the trust indenture insists that the
property used
general mortgage income bonds of
a railroad need only earn 5%
to
for
railroad
the C & E I would automatically
pay 5% interest on the bonds, but
purposes in,:
if it is in the 50% tax bracket, become fixed interest bonds in the

'When,

headlines

advantageous

^°J0/*d.s offer t?.y.ee
lme^ between Chicago and Milwaukee. If you will examine the
map of both carrieis, you will
,
,...
note a vast network of lines which
could be.served better by one road
then the other ^and thus great

Considered 7

; Few Mergers

line

freight trains of both

of
Northern
Northwestern discussedGreat Northern-BurlingPacific
—Milwaukee,- There are.: actually
£ve possible ways of going from ton-Colorado and Southern — I
Chicago to Madison by rail. The doubt very much that it would be

stockholders

Government and the

let

little,

and route
carriers over
the Milwaukee double-track line
and tear up the freight line run¬
ning up the Skokie Valley.
shore

the

along

opinion that
mergers
accomplish
me
emphasize that
highly
competitive

end-to-end

financial

that by changing the tax laws the style
of financing can quickly shift from bonds to stocks. As to the
future nf railroad credit and incrgers, the rail investment connseior points out depressions make strong bonds stronger and
weak bonds weaker, and that very few mergers ere likely to
be completed. The Chicago analyst would like to ser highly
competitive lines merging if they can be consummated in spite
ofj opposition from principal competitors, I. C. C., labor
..others. Declares there is little value in "end-to-end"- mergers
but ihose of highly competitive carriers would be advantageous.

Competitive Lines

Merge

Having stated

price themselves out of the mar¬
ket or otherwise face impending

DAVID A.

who discriminate

Institutional investors

from the goats.
the situation gets

bad and the

very

reminded, by Mr. Hill,

Moreover,

be great: senger trains route both
practicable to of the

the benefits would not

and small income sep-

arates the sheep

HILL*
Investment Counselor, Chicago
By

Thursday, April 18, 1957

...

Milwaukee and it would be
fast pascarriers

other'very cheap, to

Periods of could buy the

weaker.

bonds

weak

Financial Chronicle

Commercial and

The

(1812)

Western—Katy.

"tO-end

merger

7—Delaware &

criti¬
for this sad

substantial relief. I am not

dealers,

the

only

buyers

Discrimination Against Rail Bonds
>T

Now, let s bring our story up to
date to show that these financial
are

criminating.

proposed issue.

the

Depression

future

;

railroad

credit, I will merely say that
•An address by Mr.

Hill before the 3rd

Michigan Railroad Management
at the University of Michigan.

Seminar

■

•

period
strong

of. depression makes
bonds
stronger and

each
the
the

—Monon merger

the
at

elimination

would merely be

A. C.

Lafayette as the very

Dean Witter &

Hemphill, Noyes & Co.

Co.

(Ineorp<jrated).

fine fa¬

merged and some
management jobs could

which could be

eliminated, by

Quail & Co., Inc.

The Milwaukee Company

Dempsey-Tegeler & Co.

Boenning & Co.

in Danville,

both '
of these small roads.
They have :F»r8t
some
duplicate
off-line offices
* : - '

but unless one

Incorporated

Central Republic Company

Illinois^are adequate to «erve

A. G. Becker & Co.

Allyn and Company

of shop facilities

cilities at Oak Lawn

of the top

Corporation

Effect of

manufacturer of diesel power se¬
a

•!■■■'.'

A few

curing

The First Boston

•
Illinois Terminal Railrqad being ..river, and two shop facilities, two .-W. C.Langley & Co.
three'miles apart.
acquired by ten carriers,
.
.. f
..
From here
The plain advantage of C & E I
out, the discussion

dis¬ should be divided into two simple
of the large subjects: one is the future of rail¬
state
pension
funds
will
buy road credit which, after all, is the
equipment trust issues, if the se¬ keystone of railroad finance; and
curity includes NO passenger cars the other subject is—What merg¬
whatever. A few institutions make ers are
likely to be accomplished?
inquiries to determine who is the
somewhat

institutions

of the several under-

sale,

11—L & N—N C & St.
;
t,: For example, if the Minneapolis
retail
.Xhis list ignores a , fe\y actual and St. Lous and Toledo, Peoriah'.~,
are financial institutions such
as
mergers
or acquisitions
recently and Western were merged, to-.>
pension funds, insurance
com¬
accomplished, such as—Union Pa¬ gether, there will no longer be a
panies,
trust departments,
and
?
cific—Spokane International; Chi¬ need of the transportation yards
banks.
in Peoria, one on each side of the
cago & Northwestern — Omaha;

about

fhay be obtained from any

in' States in which such underwriters arc qualified to act as
in.seaoitk's arid in which•Jhe' Prospectus may legally be distributed.

vrrHers o)ily'

underwritten and offered for

"Copies' of the Prospectus

Corporation

Co., Inc.

J. S. Strauss & Co.

consolidation,

of these two roads

T. C. Henderson &

■

Lester, Ryon* &

Co.

.Volume

^85

Number 5630

The Commercial and Financial Chronicle

,..

(1813)

Solving Our Domestic Problems
And Fearing No Foreign Foe
By HONORABLE WILLIAM F.
KNOWLAND*
•
United States Senator (Rep.,

can

and achievements but from

values

government

Outlines
L7;

t..

..-"i

weak

lion

the

Ki-y-

170

coast

million

peo-

.world

e s s

been

antees

our

ligious,

free¬

Sen. W. F. Knowland

Tl.

opened
-7

horizons.

~u—

fnrni

th<*

the
tne

matenal way
an<? C2

C3f

Hnvoinn

ous

We'
S 7Var°US T
fields and the tremend-

potentials

developments
-bound

.years into the
XXr

tinn
1
tional
tutional
our

take

nf
of

xT.jii

system
".

continue

based
the

law

Subjugate

nor to

talk.

the

year

the

debate.

All

that

Soviet

well

above

faced

decade

This

announcement

for

of concern

In
m

~z~

order
oruex-

to
10

to all

have
nave

our

nPf'PCQQrV

Fathers

were

the first

4-rx

CQPnfinno

every

Othei

prepared

land area,

now

important

the

make

maintain

inner

not

been

°f

its

resources.

As¬

seek

the
free

The

Norway and
7 1 7"'7*•'* 7\Union

Soviet'

'*■ has

useful

purpose

To the contrary

them

and

failing to
remedies, we may endanger
safety of this Republic and
men

everywhere.

;

the

United

States,

doctrine that

the free

far

world

own

con¬

destruc¬

our

offer

to sell

7
Dangers From Within
We also confront a danger

which

and
i

sort.-This does not

armed enemy from with¬
from a foreign-led con¬

nor

spiracy from within.
rather from
the

our

institutions

War

Union

v»joit

nism

people and

have

created.

Apathy on our part or an inclina¬
tion to let the other fellow assume
;

Continued

page

solicitation of an offer to buy these securities.
by the Prospectus.

governments were also accountable.
We have
humbly acknowl-

the

United

the

international

help

The Subordinated Debentures and the Common Shares are
being offered in Units; each
Unit will consist of a $100
principal amount Debenture and four Common Shares. Two
Common Shares will be transferable
separately at the option of the

**J

I/VA

(.jvxms

political

Company

lier than

States

,two

Certain of the Bonds and Units

are being offered in Canada
by Nesbitt, Thomson and
Company, Limited, Wood, Gundy ^ Company Limited and Osier, Hammond €/ Nanton

Limited.
In the United States certain of the Bonds and Units

are

being offered by the undersigned.

(Bonds 100%
Prices

!«

•

/Per Unit $145.60 (United States)

1 '

plus accrued interest

the Bonds and the Debentures from April 1, 1957':

"•

commu-

wni;»*w

chaos

not ear¬

May 20, 1957 and in any event on and after July 16, 1957, and the remaining
Common Shares will be transferable separately at the option of the
Company not
earlier than October 1, 1958 and in
any event on and after January 1, 1960,

world,

advantage of the

(Copies of the Prospectus
J

eeo-

may

Underwriters

be obtained in

as may

any State only from such of the undersigned
lawfully offer the securities in such State.

which

The wartime damage has been
repaired. It is time for foreign aid

Lehman Brothers

to be reduced.
.

neither

their

interests

for nations abroad

♦

Stone c/ Webster Securities

to be

permanently dependent

Allen £/

Corporation

upon

nor

ours

American
tirne

for

financial
.

them " to

within their

otherwise would have existed,

us as a

York, March 31, 1957.--

areas

and

(Par Value $1)

directcxl

others

take

nomic

edged the divine inspiration which

helping

enemy alike, not
matter of humanity but
because it was in our own interest
as
well not to have the Soviet

recognized that there
higher moral law to which

inspired by the action of George
Washington in kneeling in prayer
during the dark days at Valley

should

likewise.

means
-

grants.
start
and

for

is,;

living
ns

t';
.

■

Butcher & Sherrerd

April 18, 1957.

to.,

i—uii—rr~7

come

This springs

own
we

800,000 Common Shares

both Allied and

only

We have

nation,
We have read of and have been

eff0rts

devastated

guided.

.made and preserved

economic

our

ization to this program,
it was a matter of mutual inter- '
est to help rehabilitate the war-

our

Republic recogwhich they were

There has been nothing
compa-•
rable in the world history of civil-

the

founders

world

re-

another

out

V
7.7'
likely, I believe,

nor a

way

be preserved.

5%% Subordinated Debentures due 1985 (Canadian)

the Iron Curtain,

and

values

attempt to

not

from

For many decades the men in
Kremlin
have preached the

must be determined that

be purchased.
we

sought

both

$20,000,000

international

buy

•.

changed its long term strategic
objective. The destruction of hu¬

of life will

the

is neither

is internal sub-

former enemy countries outside ofv

spiritual

intimidate

days,..the

$7,450,000 First Mortgage Bonds,
1980 (United States)

provided over $50 billion in
economic, military, and technical
assistance to allies, neutrals, and

men.

strength of America has

natural[

the

world

The factor which made
America
an
inspiration to the rest of the
world grew out of our Declara.tion of Independence, the Consti-

was

5 /2% Series due

has

great cities, its huge
plants,
its
extended
transportation systems, or its va-

..! J

past

$12,550,000 First Mortgage Bonds,
6% Series due 1980 (Canadian)

people.
foreign
lureign

themselves.
In this private
investment should play a major role,
jn the period since the close of

industrial

nized

the

Quebec Natural Gas Corporation

any more than personal
can

should

toward

produc-

free world of free

This

cannot

qu1.

the factors which alone could
preour freedom or
enable us to

tution

serve

political image,

serve

The

Nor

capacity of our Nation and its
military strength, these are not

the

but

To the

justice?

hide the facts.

conspiracy.
friendship
friendship

popu-

to their people the freedom
and the standard of
living Amencans have
enjoyed.
As

to"

system of international law

by ignoring

Consniracv

aiKu 111 na !Jr1a reso"rcesthey^have not been able to

.give

and order based

sabotage, and espionage
international Communist

the

make

instance.
or

faces.

version,

Founding

nations have been

larger

Yet

law-abiding

,000,000

frce government around the

WOrld

main¬

„r

-7•

Within

the

were

Hungarian orebel-

necessary sacrifices
them
that
our

are

lion? :

indoctrination:

may

more.

sounri
sound

they have faith

students

the

their

man
freedom everywhere.
:" '
big and strong? What kind
X They will be relentless in seek¬
justice is this? Are we building
ing to destroy our institutions.
on
quicksand? What kind of a
foundation is this for construct¬ Fortified by our faith in God, we

obliga¬

the

The offer is made only

be ieft to 0
government alone. It

young

nations

within

•

Communist

leaders - -of

the '7

ever
can

com-

This

;

captive

with

international

continues.

Hungary,
and

other

How

freedom

its

outlaw nations?

Union

Foreign policy is too important
t0

....

®.r seeuro- Each genmust be prepared to make

tain

placed it¬ tains the seeds of its
self above the higher moral law of tion.
7'X V X '
God

when

small and weak countries but not

being strangled to death in
Hungary.
With callous indiffer¬
the

obligations

the

reach?

to the

de¬

was

ence

freedom

nations but not to the totalitarian

Nations

while

After the Hungarian experience
can the Soviet
Union place in the armed forces
how much reliance

Denmark.

not to the

our

passed 10 resolutions in 76 days bf

nist tyranny.

rulers in the Kremlin have

General

United

the

powers?

any¬

under

capable of lighting

was

mandates of the United Nations to
be applicable to the democratic

die while delegates

can

Last

sembly

destroyed

where, a bit of freedom
stroyed everywhere.
Nations

government

coun¬

Egypt.

Are

recbgnize, however, that ing

freedom

latest

even

fire

free press, Great Britain, France
Israel withdrew their forces

still have their forces in

people

any

12 ^
Ca2" Polic.y» ^ is necessary to have an
something that can be Informed public.
LX 7,lL
deP°7 b,0X and
There is also the danger that
thP
the

the

order,

and

free

obligation to the charter, the So¬
ignored all 10 General
Assembly "passed 'resolutions dhd

territorial

that,

police rule and the
brainwashing of a whole gen¬
eration, the spark of freedom still

viet Union

preserve

for'-'ourselves
We" seek

the

totalitarian

Having no respect for the opin¬
ions*. of mankind and no sense of

system

indications

•_•.

but

con¬

destruc¬

that endangered the whole
monolithic structure of Commu¬

from

pre¬
Our ef¬

and

the

organization

and

directed

justipe.'that will

peace

gains

establishment of

international

Foreign Policy Views

our consti-

omrnrnmont

government

the

well be for

many

free-enterprise

ftmrv
f«°7.

for

future.

rfll'm
form

oronf„j

peacetime

of atomic power are

challenge

will

••y
was

world
own

lived and

childhood,

honor.

with

peace

forts

7 We do

double stand¬

morality;

do¬

how

Hungary

international,

light with darkness."

menace

the

International

having freely elected parlia¬
ments, an informed electorate and

power; we can
isolation than

return to

can

Standard of

Against this external danger we
.must maintain strong and adequate defenses—air, sea, and land
-at home and abroad as long as

H„X,

serve

destroy human freeeverywhere
in
the
world.

dom

SSr"make,.f,or
N

and

Communist

incentives inherent in

Our foreign policy seeks to

;

when

cannot

constantly

threat

munism

atomic

return

the

tains the seeds of its

tion.

try

the air¬

age of

that

Having a decent respect for the
of mankind, a sense of
obligation to the charter and the

anywhere in the world.

are

and

adult

international

^ y ^hemselves found,

that

-union has

which

r~"

of each generation
have sought to
leave to their children
a
better
ianj
4K_"
zr~
r
"
7
inct

know,

igether with unbelievers; for what
fellowship has righteousness with
•
unrighteousness and what com-

® new
furnished have

know

this day and

Nations

opinions

Kremlin, has a
though the tactics remain fluid.

children.

The free world should heed the
admonition in Second Corinthians:
"Be ye not unequally yoked to-

dom.

life

long survive

ard

per¬

constantly

instinctively

organization
can

re¬

sonal and eco-

nomic

which guar¬

hnt

..-Xyr-X. ,X; 7,:X

compromised.

of ..gov-

force

Compromising

also

things

tional

greater

our allies and our
Government may for expedi¬
ency forget that these are some

con-

form

own

has

our

stit

the

United

can
long endure with a double
standard of international morality.

Party, as with
fixed objective

know that hu¬

The

the

Morality

Objective

pleasant
recollection might be;

though at times

our

people

»•

ti.\. t'*"

■

Double

Hoover, Director of
Bureau of Investiga¬
recent article clearly

Communist

under

study in duplicity.

plane

Lincoln

than tyranny.

ingredi-

ent;for

nnt

.*>..■

freedom

price-

doing the
during his lonely vigil in the
White House during the darkest
days of the Civil War.

man

has

The

and

known.

ever

granted.

same

Instinctively

the

regardless
;

Forge

Federal

mestic

;

grown

most

'productive

has

Atlantic
of

power

j pie,

t•

ours

which

unimpaired.

for

system

strategic objective.

Colony of three mil-

the

great

7 This Nation of
from

free-enterprise

our

foreign policy views; decries double standard of inter¬
morality, and sees no change in U.S.S.R.'s long term

national

menace

tions

Charter.

alert

outlined and documented the fact
that the Communist "new look"

compromised
of

the

could do great damage though the
outer structure might seem to be

tion,

which, the California legislator cautions, cannot be
nor, he adds, can we take our constitutional form

constantly

against this termite

the

moral and spiritual

our

Mr. J. Edgar

solve our domestic
problems and need never fear any
foreign foe, Senator Knowland advises, if we prune our
govern¬
ment's growth and
spending. Our inner strength, preserving
our
freedom and fostering our
growth, comes not from our
resources

must

Unchanged Communist

Calif.)

•-

Government jndustj'y and labpr

Company

White, Weld

Co.

/
Thursday, April 13, 395'

The Commercial and Financial Chronicle.

(1814;

Do investment companies need vestor does about the "science* of
f more regulation? Now, Who asked investing?
v - ^ ■
As you
know, open-end com- thjat question? ? ! ! No, we are as
,The layman has no concept of
panies or mutual funds have, a regulated—or more so—than al-the thorough research done by
simple capital structure with one most any industry I know.
many of the good investment
class of share outstanding.
The
We are subject to the Securities companies. - -. ;
'
majority of closed-end companies Act of 1933 for the raising of
what does the average inves-

form of

The Investment Company Today
HUGH BULLOCK*

ment

business

are

and

parties

as
constructive

The Act

of
leg islation.

T h

interest.

valid saying would be "The power
regulate is the power to
The constant phrase,
used by
of stocks and bonds and on many destroy."' Overregulation
can be
my
industry during the investi¬
occasions exercise rights to sub- just as serious as no regulation,gational
period
preceding the scribe to new issues. To a limited when regulation is needed,

equitable

was

Buliock

Hugh

you

But

you

can

honesty

ihpW> lias
had

trust com¬

The

Panic

Baring

1890

their test of fire—like

and

were

World
YlUtlU

U1
of

X3UI,

I, the soundness of their
principle had been proven and
they attracted the attention of
Americans in the early 1920's.
War

i-.j

•

„

risk

tion

principle of an inDiversifica-

company?

professional

and

theory

The

supervision.

not

putting
all
your
eggs
in one
icasket. The theory that ownership
10 securities

is less risky than

and ownership of 100 is less
risky than 10. The theory of hav¬
ing trained investment men super¬
one,

While

the

American

Founders

During

rr,

were

and

had

speeches

1931

govern-

investment

made

some

written

and

in the preliminary
hearings, the investigator, in a
friendlier tone than usual, threw
later,

the

article

and

said,

It's

good.

down

front

write this?
might well

"Did you
The SEC

have written this itself."
,

„

growth

form

and

•Hide

century ago.

the

what

funds

that

juarter
quarter of

prophesied

now

many

and

then.

•
?
Nine-tenths of investment cornPany assets are represented by
so-called open-end companies, or
mutual funds. There are over 130
mutual funds today. These, as
Y°u know, are corporations or
common law trusts whose stock
is almost continuously sold to
the public, usually by an independent underwriter at a price

cost and profit.

Federal

Legislation

tears

came

vestment

The

Company

SEC

Act

course

wrote

1940.

the

eral

talk

the

Bar

by Mr. Bullock before the Fed¬
Association,
New
York
City,

March 29, 1957.

billion

other words much of
invested in investment,
company shares was money which

ings are that during every severe

^unds ^3.an fbey sold.baCkthe deto the
funds.
Moreover, during
^
clines, the ratio of liquidations by

tors

buy

all

the

There

are

ions —your

They

that.

alawys

own

and

two

these

Not

are

''We

jje

don't

General

Joseph H. Briggs
President of H.

have in-

just finished buying it."

about 1,000 issues
rest

new

has

capital since
raised by

been

closed-end companies. And, when
it is, it is usually clone in the

traded in

Stock

American

the
or

Factor

Bigness

Are mutual funds too

over

securities

These

big? How

big is

trial

Company,

and

Kneeland

25,000 securities
States available to

solved

will continue
M. Byllesby

Inc.
Co.

of May

will

dis¬

1, but will stop

active trading as of

April 18.

•

George M. Baker Co.
Formed in Chicago

Exchange,

the
listed

counter
011

the
and

issues

minor

(Special to The Financial Chronicle);

ex¬

part

are

Baker

the

most

sophisticated.

What

investors

not

for

they going to buy?

uranium stock? I hope
is

111. — George
M.
has been formed
offices at 29 South La Salle

CHICAGO,

changes.
The

They

Darfler will
trading depart¬

ment.

corpora¬

ferreds, over 1,000 different bonds,

dence

originally formed

Glen

ViceM.

of H.

director

join the Byllesby

own

over

the wrong. in the United

the value of the stocks listed on
the New -York Stock Exchange.

much

Twenties

Byllesby.

are

and

Just after the war I was' these investors: over 1 000 com-

one.

There are 30 or
companies. Almost

were"

President

under $7,500 a year,

There

are-

the Twenties.

try.

comes
-

partner with Mr. Lannan

Kneeland & Co., becomes a

than men.

two-thirds of them

represented
closed-end investare

Indeed, in the
Twenties and Thirties closed-end
companies dominated the indusin

And

never

opin-

held

publicly

tions. More are women

decided

sell the same security?

stock

manage¬

suddenly

once

isn't

Life
do.

what
at

there

who

investors

million

SV2

Now

and

investment com-

Keith Funston tells us

ratio.

ments

are

Byllesby and C. Woolard, Incorporated. Francis Company,
member
Tr^onnic r WooiarH mpmhpr
of the Midwest Stock Exchange,

and
especially
mutual
funds good for the investor?

lower

was

J. H. Briggs

C. Woolard

Francis

panies

purchases by inves¬
than the normal

investors

billion,

investment

companies.

closed-end

question

big? All the mutual funds
combined own less than 3%- of

assets

so-called

Seaboard

Atlantic

the

within

this
subject has been States. In
studied thoroughly and the find-.. the money

Again

Companies

one-tenth,
10

company

the
*A

•

states-omei tnan xnc
North Atlantic Seaboard states.
Surveys of the origin of stock exchange business conducted at the
same time shows that the majorl|jtv. Ql such -business originates

ownShares., V;

;

^^nr lunchinS with one of presidents. -"mon stock listed on the New York
the ablest stock Exchange, about 500 preinvestment company

Upon demand by

Closed-End

About

St g

to- redeem

riJshpri

May I smile?
The

all

the passage of the In-

prigj{.

We have

Our

-f

shareholder, the i n v e s t m e n t Motors. We f wouldn't touch it
company is required to repurchase here." I said. "We like Motors.
the shares at asset value.

ment

Well, after blood and sweat and

its

the

call

principles of the Investment Com¬
pany Act. I hope I can be half as
accurate in my prophecies for the
next
quarter of a century as I
was

stitutions

nh 1 q

dea.
stand

important financial in-

among our

in the case of the. common stocks? T - /
fund industry,
Yes. Recent studies indicate that
self liquidating -feature, £jie
0£ mutuaj fund purchases
£ lt
sharesholders in originate in states other than the
mutual

F
c
a 1 u^Pea 10 "reaeem
shares at the same time.,
Thls °f course wo"ld uto.rce 'th®
1T,utual funds to sel1 thelr P°rt_
folio securities so that they could
redeem their

in over

nrrnunts
decline, including 1929, investors into common stocks. find its way
might not otherwise
investors accounts. lbought more shares of —4.„„l
^ mutual
taken
their
place
My final and most important

million

minion
have

inS^rvJiP? J)eople
still

They

of The Investment Trust." Several

mutual

Glen A.cDarfier

happen

mogt

limp

outside

rm'hlio
public.

investing

the

these

article in 1932 called "The Future

^nduSrv^Sfcl

the

^ t
with

principles,

investigation of

companies.

written

with

the a'r

Henrerl

pvpnt

numerous

Thirties

the

'■*

billion

Dut-never
but never a caitoon. Yet
it may have tended to have the
Pfeet
mv
In
same
effect as my eartonn
cartoon

k[Hion anf| they are held

fundamental

casualties

many

things,

because

violated

years

Com¬

came thick and last. Today their assets are over $10
many
had

loot!

1929,

merit

good

postwar, years investment
the Twenties, invest- companies and, particularly, puas
they were called tual
funds, have grown and grown,
.

Came

Act,' called
Act

group

represents the genuine start of the
movement in this country.

.Cn

would

I've heard the Investment
pany

by strain¬
ing a bit, be traced back to the
yeai
loao, m iv* 1 ine organization
year 1893, in 1921 the organization
the

too!"

self,

vestment company can,

Investment ^Company Act..'13b
mutual funds and 25 closed-end

stabilizing influence in the stock.

It showed a father with his child
across his knee, whamming the
life out of him with a book: The
mother was standing by, horrified,
The title of the book was "Child
run
on
our
Psychology." And the father was is in the realm of pure fantasy, mendous redistribution of wealth
saying
to the
mother, "Well,
Occasionally, as you know,; some- have mutual funds - been. responsometimes 1 have to express my- one asks the question as to what sible for more people owning

in¬

American

first

during declining
buy;i<y:^§Ji^
a£d 1 l^i^^^°^^mt!onai *''Have mutual funds broadened
ld '°5[caly e s
. •
® vthe ownership/of American Intfian .ajl individual stock buye, (}ustry?
especially one who might be sub- ' More people have more money j. Patrick Lannan
-—-than ever before this the history
So t0 ^ mar8in ca11'
this
the bank ^ldea/ of
country. In in
era of tre-

securities.

vise those hundred

firm

111. —The

CHICAGO,

Kneeland & Co. is being dissolved1
and J. Patrick Lannan has become
Chairman of the Board of H. M.

is the

What

vestment

companies / a

§
Byllesby Go.

Gf H. M.

constructive job. It grew out of
.the, group-that cooperated with
the SEC in the passage of tne

^ -

Are -investment

J. P. Lannan Ch'man

Stabilizing Influence

bringing market?

reminded of the

•

issues to

knowledge

suspension by the
investment company.

olf any
am

new

of my children. I have two
Yes. Every study ever made of companies -belong---to-the Associasweet girls. Today one is in Vas- mutual
funds
remember
(and
remember
'
ent're !"?ustrysar, one in Bryn Mawr. I believe they represent 9/10thS of the In-'U ,s a central bureau forlnrolmain discipline.
When they were
little I spanked each of muubbuu.
IHUCO^NCU WU1UI them once.
SPHlfitiptJ nn> hatnrirts''' m<2htal regulatory bodies, and has
a.- salutary influence 011. practices.,
I never needed to again. Because at A
7
'ccul "cLrh
J
...
.
.
z.
j
1
at the time pi sharp i».»keb wilhin th'0 illdustry..
the time ol sharn
I had framed and hung outside
,
.
„,_i- •„^
their door—where they looked at breaks or
ma ^
, , . . ,
it every day—a delicious cartoon, kets. Moreover they
Ownership Broadened.
v

was

1929—
dir»*

our

there

course

But, by the CI1U
uy
Uie end

asters.

•

followed.

others

Many

1873.

Scottish trust came

1868. The first

nnlv

they
com¬

good for the in¬

They are

(4)
vestor.

Not in the area of regulation,
but in the area of self examination and analysis," the trade orties, they free other investment ganization of my-industry, the
capital so it can be used as vert- National Association 0L Investture capital.
//merit Companies, dees , a most

be one

SEC

London in

formed

was

pany

Since 1940

results that count

it is

Trust

First

The

The first investment

And.

0ff the straight and narrow

their merit.

extent they provide venture capi-

penalties for anyone who gets

purchase

they

legis- tal. To a much large extent, by
legis- owning more conservative securi-

can

late

by SEC Chairman Armstrong and
his fellow commissioners increases

passage

still don't think

Acrs

these

dustry?

measures.
measures.

of the Act
"you can't legislate honesty."
and

drafting

administration
of

American industry,

vestment;'' company -securities arc ;?> (2) They are a stabilizing factor

provided

.Do investment companies con- oricc said, "The power to tax is
and tribute capital to American in- the power to destroy." An equally
Yes,

and

b1e

questionably .-have economic and
social justification,
(1) They contribute capital to

mon

f»nn«t.riirtive.
constructive

r.thor
other

public

the

future

business in all states.

Underwriters and dealers in in-

cardinal

combined
— —

v.*

^the Indications markets'
securities
/ (3)
are
^ d statement ol policy broaden the ownershipthat
of
stocks.
ask s<?I"e Questions. - - " - A famous member of the Bar

investment policy

changes in

mucn

very

'most'interesting

es-

have

funds

and oppor-

.. n a
other investment medi'um lean think ol
mum 1.
Yes, investment companies un-

want to

form to the toughest if we

and

companies

mutual

reasonable in-

portion of these
four
principles of investment

various states. And we must con-'

and'pres¬

gives him a greater pro-

company

security holders, major

rights

industry

■my

Investment

peciaiiy

Company Act ol

raising new capital we are
regulated by the Blue Sky laws of

What of the future?

ent.

sound capi-

Accounting

money,

stocks.

„

.majority 3940.
III.

just com¬

.So much.for the past

guards

Act
i s

considered

mon

Own

protection

suppose

all
an

by
stocks, uy

the aver,- the Investment
•

funds

marketability,

CQme>

structures. It provided safepertaining to diversifica- justification that I think they do.

their

1940,

required full disclosure,

ho conflict of interest,

sequel. The
I n ve stment
Company

mutual

approved by both urged its passage by the
both political Congress. It was very interesting
and
constructive example of n
cooperative effort.

pieces
And

haps a hundred or so in
age portfolio. But the

want?

for his prjncipai

for^tr^ns^ tunity f°r appreciation. To my
for transmjn(j
Vvell managed investment

and

listed

iii

end

investment companies.

of securities, more
stocks than bonds, per-

common

concerned

actions

the same type
_

(or

closed

listed

are

much

very

own

capital.

We are subject to the Securities
id
and Exchange Act of 1934 so far;J
as

companies

end

with our industiy and we

Today the ment

quarter of a century.

new

and closed-

mutual funds

Both

Securities Acts

•

trusts.

Scottish

modified by agree-

draft, it was

changed over

have

times

How

outstanding—like the English and

capital, including ven¬
ture capital, to American industry; constituting a stabilizing
influence in the stock market, and broadening the ownership
of American industry, and in being "good for the investor.
-

•

although some
and/or preferred

also,

do,

today

justification in contributing
,

have debentures

and cites the salutary purposes and effects of the Invest¬
Company Act of 1940. Maintains the funds have economic

and social

';/■

of the investment com¬

origin and history

Mr. Bullock traces
pany,

York City

Bullock, Ltd., New

President, Calvin

single orthodox under-

writing.

with them.

with

street,
.

provi-

blue chip

business.

Co.

engage

utility

corporations,

blue chip?

securities
M.

Baker and John F. Baker,
formerly with Baker, Walsh

"control" no "banks brTndus- ' on the®i? Board? All right, what

they can operate effectively; size
would not seem to have any point
in this Trillion dollar era. The
largest fund of all has an excel-

Partners are George

Eastman Dillon

both
& Co.

Branch

If they are buying stocks, aren't
they better off to buy an interest
SAN MARINO.-Calif.-—Eastman
in 100 good stocks watched over Dillon, Union Securities & Co.
every hour of every day by pro- have opened a branch. office at
-

lent management record and a fessionals—by men who certainly
commendably low expense ratio/; know more than the average in*

2374 Huntington Drive

under the

management of Donald M. Palmer.

Volume 185

Number 5630

..The Commercial and Financial
Chronicle

(1815)

**** •

If the American

Third-Party Liability of

install

merely

By DAVID F. CAVERS*

nuclear reactor,

foreign purchaser

•

Associate Dean, Harvard University Law

The sale of

ponent.
*

■.'>*

tional atomic agency

to sponsor

international convention

the

reactor

for the

the

e r

but
com¬

seller

c a n

regarded

as N

having
in the
country where
,

built

was

subject .to its

court's

and

requirements

process

foreign

met.

.were

seller

against

would

of SUch sales.
companies

not

are

more,

.V/ Z

:;jy: ;v;.% attack

country-side, seriously
likely to own or operate many re- contaminating a small
industrial
actors abroad, even
through sub-"city. If the "reactor operator, were
sidiaries.

But

■

Government
atomic

the
and.

industry

American

United
the

States mot the

hope

foreign government itself,
resulting claimsvfor injuries
might well exhaust the resources

manufacturers

that

will

injuries caused by atomic
briefly

that

risk

and

then

component.-.

might

some

be.

taken

the

steps

keep
.

Just

this

■

country,

••

When
-

such

claim

consid-

ered, the first question would be
whether

the

liability-defining;

abroad, private liability insurance

rules of law to bC applied would

cannot

provide the whole

answer

to the

those

force

the

country

liability problem.- A serious
"nuclear incident," to use the An-

where

derson Bill's
euphemism, may be
m£st unlikely, but it could cause

in crowded Europe, harm might
have been caused in more than

the

harm

United

occurred

States.

defendant

foreign

they

United

might

States.

find

Conceivably,

harm to persons and

reactor.

Under

the

and

sue

would

perhaps could
a / valid
con¬

liability. 7.
limited investigation into
foreign law, I have found no law
In my

suffi¬

business if private insurance

adequate.
However,
scarcely
expect
the
States

Congress

deterrent

derson

Bill's

risks.

For:

lions

remove

extending

thi

the

An-:
to foreign

coverage
the
government

tr>'

to pay out hundreds of mil-'
of ; dollars
to
America V

victims of

wei^

we' can
United'

American atomic

thing; for it to

one

out like

pay

victims of

other.

.ae

agre»4

for

sums

foreign
foreign accident, an ¬

Realistically, America

companies must hope that foreign
governments either will take oven
the
indemnifying function or whtimpose limitations of liability t/>

protect their suppliers.

other than

ground

any

negligence.
on

pose

for

Law

plaintiff.

have

few, if any, devices
shifting either the burden of

doctrine of

Codes

res

use

burden

which

of
are

against
the
Analogues to .our,
ipsa loquitur ar,e to
-

use

found, but they

for

the

evidence
for

manufacturer.

probabty most foreign coun¬
tries, the plaintiff need only show

against

designed

seem

persons

Passage of the Anderson Bill

suits

This
ground
would
difficult problems of

the

available

manufacturer's negligence,

producing

could

that the harm complained of
the
normal
consequence
of

are

encountered

operate the
Civil

company

parties

' supplier

blocked

often

defend simply on the fact
own

■....

the government's suit

brought

brought, the

were

'•

the power
injuries.
Instead

non-persuasion

manufacturer

•

power

third

for

derivative

for

that it did not

some

-d'

•

been

never

not

cident is

of the litigation itself.;

seldom

T.'S'.'V

has

liability policies.
The
fear
o*
losing
cases
could
still
deter*

agree

proof

American

negligence or intentional
wrong-doing,
neither
a
likely

proof somewhat more favorable in
this country than in their
own,
however burdensome the conduct

5Wherever suit

lim¬

based

gross

that

Moreover,

the, rules

claims

third-party

lawsuits

liable

course,

the

safe.

that would hold the manufacturer

foreign claimants rem¬
They would- be free to sue

not,

Such

ordinarily be valid

against

tractual limitation of

leave

would

except

judgment

against
ediless.

itation would

against

in getting jurisdiction

officially

ciently comforting to prevent m-j
surance
companies from writing

again,

judgment

•

Where.Could Suit; Take Place-

that

it; to

reasonable size.

consider

major

or. a

•

through the operator.

company

jurisdictional

American

enforcing

the

acci-i struction of the .reactor

dents? My job is first to comment

success

over

reactor
company and
its
in; the forefront in supplying nu- insurers. > The V claimants
might
clear
reactors
and
their
corn-,-, then
turn against the American
ponents for installation .in other suppliers.
Perhaps /a
plausible
countries. Will American firms be hypothesis could be
constructed
deterred from pursuing this busi- that the melt-do\yn was
paused by
hess by the 'risk of
liability." for. negligence in the design or con-.
.

would,,

Free to Sue in U. S. A.

American The

both

-than

the fact that its equipment had

been accepted

sue the government
which in turn
may sue the power
company
or
its
supplier. - Here

against the installing company.

the

over

vulnerable

claiming

they have to

much

American

contract, and this limitation would
iii turn bind third
parties

Under

claim

In such

country, however, the manufac¬ Insurance and U. S. Government;
turer might have limited his lia¬
The probability that the
manu¬
bility to the owner-operator by* facturer would
win

denied the right to

the

then

concessions,

due

However,

.judgment

American

bankruptcy—could

against the manufacturer.

jurisdiction

resulting harm, if, at least,

notice

the operator—or its trustee

ever,
in

hazard.

extending the principle of limitation of liability arising out

;

either

The

caused acts

ing around negligence, the noted Harvard Law School Dean
foreign laws on this score seem more favorable to the
manufacturer than U. S. law. Author proposes a new interna-

might

involve, Dean Cavers points out, a risk
of liability to third
persons should they be injured
by an accir
dent involving that reactor.
Regarding burden of proof revolvmay

believes

;

sold

did not

abroad

so, - especially in the usual case
where the seller had known the
destination of the reactor or com¬

School

major component, to

maker

reactor

ponent for delivery here, the for¬
eign court might not assert juris¬
diction over the absent
company.
Probably some courts would do

American Nnclear
;:

the

lus

measure would be

parallel

governments.

action

stimu

•»

by foreign

This could solve fhn

problem, especially if the indem ¬
nity features, were either unlim¬
ited

tion of

accompanied by a limita¬
liability. However, foreign

governments may not be worried
by the atomic liability problem t>
the point of taking such action fe e
a

good

maybe

many
our

years.

Meanwhile,

government

could

position of the operator.
Of course, in some
cases, the
fact might
plainly appear that the
accident was due to a defect in

was

the

These

countries appear to have short-cut
the long and tortuous

negotiate

bilateral agreements to hobt
harmless not only the U. S.
Gov-,
ermnent for claims based on it: r

some

part of the reactor.

Then its

action

provision

supplying

special

oie*

path which
property far one country.
Disregarding . that
outrunning the coverage that the complication on the-ground that led us to McPherson v. Buick
insurance industry
could
safely ,.we have enough without it, I Motor Co.4 and subsequent cases
write. The deterrent effect of the think the answer to the choice of establishing
the third-party lia¬
liability risk stems from. this re- ; *aw problem is fairly clear. * The bility of manufacturers in tort for
mpte but nonetheless real
chanceZe?
would apply the .law of the nearly all injuries resulting from

suppliers for third-party claimn
sonable care in manufacture and; against them for defective prod¬
ucts.
Adoption of the Anderson
inspection
would
neither

that legally enforceable claims for

Piace whcre

the. hann

was .sus-

tens or
hundreds of millions of
it might also ask
dollars might grow out of a single
)vhethcr the American company
nuclea> incident.
* had failed to observe any applicZzZv:V'.
able
American
safety
standard

*afn®£' a^hough

defective products.
In

manufacturer would
back

and

If anxiety
as
to this becomes
world-wide, local agitation for indemnity legislation,may spring up
in

countries

t iat

now

rela-

seem

tively indifferent to the problem,
Pressure
more

for

indemnity

likely to

come

laws

from the

is
re-

actor

operators in other countries
than from reactor
makers, at least
where the reactors are not aov—

crnment-owrfed

here!

reactor

operators would be the first target
of
claimants, and, in most countries, the fact that the government
owned

and

operated

would not be

•

-reactor

defense. Moreover,
reactor operators would
probably
a

be held to stricter rules

governing

l^maL^actmer01' lhan
manutacturers.

The

citizens

do not

seem

other

juries

lmpressionable

than

American

American
standards,
Europe, the volume of
negligence suits brought against
manufaeturers
by" third
parties
even

small.

But would

these at-

titudes
persist if a $100,000,000
nuclear incident occurred on for-

eign soil and the
was

involved

reactor

of American make? Claimants

and

their

counsel

American

might

ideas.

American

tion has installed
aetor

soon

$200,000,<

":V

corpora-

100,000 kw

get

$100,000,003

incident might produce
000 basket of claims.

"^Suppose

re-

country outside the
Anglo-American legal system,
a

Suppose that,
melt-down

shell

highly*An

before
trial

year

occurs,

later,
by

or two

followed

explosion that cracks the

taining
of

and

sends

radioactive

aHdre«s ,bv
the
5th
Annual

Conference

4 217

N. Y. 382,

If the American company were
longer- doing business in the
country of harm, could it lievertheless be sued there? Probably
if cold, but would the judgment
obtained against it be recognized
an<I enforced in the United States?
no

111

This

naturally,

aided

the

company

official

ap¬

provals, inspections, and test's that

How-

had

N. E. 1059 (1916).

announcement is

failed

discover

the

flaw.

Bill would strengthen our position
to press for such a clause.
:
v
,v The
sticking-point in any sucli
attempt might be the foreign gov¬

ernment's
the

reluctance

American

However, it could not rely simply

of the

reactor

neither

The

offer to sell nor a solicitation of an offer,
offering is made only by the Prospectus.

Continued

buy
Z ;

any

of these securities.

might

be a sufficiently protracted operation io constitute doing business
|n
® foreign country as that
£rm
understood in our law.
Since the claim would have arisen

Overnite Tr a importation

Company

°"t,?frbu/I"eSf
F°"ldflnd l,hat
'?reIg" c0"rt
Tml' iJan'^

(a Virginia Corporation)

Common Stock

jurisdiction in advance,
Even if the court

1udgment

against

B.ard,

con-

cloud

particles
C

National

Atomic

[Conference, Philadelphia

Indus¬

Energy

renderiug the
the

American

Price $13.30 Per Share

cornpany cjid have 1uiisdictimi by
American standards, the enforcement

^he

courfs

can

wouid

run

judgment in

might

Ameri-

difficult.

jnto the clash

ton

ment

Guyot,i
in

the

denying

Federal

the rule in Johnston

prevails in
ment.

New

states,
,If

the

were

announcement

enforce-

courts,

offer these

and

may be obtained in any State in which this
from only such of the undersigned as
may legally
compliance with the securities laws of such State.

is circulated

securities

the

state

York

and

granting

creditors sued
in

Copies of the Prospectus

Hil-

Compaqnie
Transatlantique,2 which

Generale

other

between

Supreme Court's rule in

grounds,

and

perhaps
Tompkins* could

Scott, Horner & Mason, Inc.

judgment

their judgments

courts

removed

few

enforce-

foreign

the

Goodbody & Co.

suits

Erie
he

,v.

invoked

Carolina Securities Corporation

require the Federal courts to fol-

low Johnston. Moreover, the HitIon case is not an absolute bar to
enforcement: it merely requires
the plaintiff to show, if
that the courts of the

country

enforce

willing
American judgments.
1

159

2 242

3 304

are

U. S.

113

Johnston, Lemon &

diversity^

can,

Some

are.

N. Y. 381, 152 N. E.
U. S. 64 < 1938).

Beil &

Hough, Inc.

<1926).
*

Interstate Securities Corporation

United Securities Company

Alester G. Furman Co., Inc.
Apri! 16, 1957.

121

Co.

McCarley & Company, Inc.

foreign

<18951.

Willis, Kenny & Ayres, Inc.

Frank S. Smith &

Company, Inc.

relievo'

manufacturer

126,000 Shares

\ess ceffain- However, the

installation

seems

detected the defect.

Pro°I °f negligence,

juries.

failure

rea¬

would have had to consent to this

countries

and the judges who
damages for personal inappeal less generous or less

assess

such

nor

clear materials but also American

as^claim-conscious

Americans,

rely

this,

would

"Indemnity Laws

fall

have

countries, the injured
parties might be confined to suit
the operator only.

the proposition that

prevented

some

against

have

page

£5p*

Commercial and Financial Chronicle

The

...

Thursday, April 18, 1957

(1816)

from its

because

WALLACE STREETE
other paper shares, erstwhile
favorites.
The
coal shares,

stalled for the

were

ex¬

Securities Salesman Ts Corner

for

higher earnings, at least
the
first
quarter,
but

brains.

session was done
handful of special issues

Pittston

Any given

Today's issue of the "Chronicle" once
evidence of the numerous

e l e ct r o ni c
Its sales are about a

ments

which

large in

loom

Lukens Steel which

Exchange.

actually

company

has

'£\:❖

■

portant to continue its efforts to dramatize the real facts
case.
This, in my opinion, is admirably accomplished in the
starting

interests

the cover page
Indispensable to Investors and Nation's
What's more, the study provides dealers and

Growth."

Business
brokers
valuable piece of literature for an

throughout the country with a
educational and sales promotion

■•'yv•:■ v-'V;.;;v:-'

let

up.

Oils

were

far

unani¬

from

but Gulf which had re¬

acted

throughout

of points

tieup
multi¬
point gains when demand was

Was

Suez

the

able to post some

around. For the oil well sup¬

ply

issues,

about

the

story was

diverse

for any

-f

A. O. Smith was
the issues in special
demand and posted a new scientific works.

other group.
among

high simultaneously with
Halliburton's climaxing re¬
cent weakness by falling to a

Black

Decker

with

its

before it could make
bid

forge into

serious

new

high

in the market

•••".

•%'

James Lees

territory.

so
if

far this year.
if

Sons in the

consecutive

makes interesting

from 5 to 173 years alone

reading, and the information pertaining to this market is presented
in
a
manner
that even the most unsophisticated investor can
understand.

promotion literature is being

This excellent sales

made avail¬

the "Chronicle" as heretofore in an attractive pamphlet
which fits neatly in a Number 10 envelope. "Compliments of" and
the dealer's name in the line below is imprinted in the space proable

vided

this

for

purpose

when 100 copies or more are

Advertising the

Using
copy

double

return

ordered*

Product

card or a newspaper

along this line might be

"Over-the-Counter Market:

advertisement,

productive of interested inquiries.

Indispensable to Investors and

Nation's Business Growth"
Send for

increase in
earnings. Moreover, the trend
is expected to hold through¬
out the year with the polio
vaccine sales expected to be
some three times last year's.

ard

lots from 1 to 199, and 15b each

The list of Over-the-Counter

quantities.

greater

cash dividend payers

•

larger

Sunshine Biscuits and Stand-

cost of 20<* each in

Reprints of it will be

Business Growth."

and Nation's

Investors

available at

free list of sound,

whose common

„•

Counter
Business

growing unlisted companies

stocks have paid cash

BLANK

Telephone.-

or
for your

Blank & Co.,

Without cost
your

sable

CO.

mail coupon below

'
or

U. S.

obligation, please mail me a copy

pamphlet on "Over-the-Counter Market: Indispen¬
to Investors and Nation's Business Growth," contain¬

ing data on unlisted stocks that
dividends from 5 to 173 years.

free copy

Main Street, Anytown,

dividends consecu¬

173 years.; A free booklet, "Over-theMarket: Indispensable to Investors and Nation's
Growth,", will . be sent you,, on request—no
obligation, of course.

for

tively

of power tools is
new low.
'"/OA'-.-'i/--,
a
prime beneficiary of the doMotors Also Stalled
j
it-yourself fad currently prev¬
alent and reports sales and
Motors accomplished little
-Overlooked Foods
over-all. Chrysler's sporadic earnings running well ahead
Issues in the food division
of a year ago even before the
spurts over anticipated fat
have
been
ignored for the
company is fully committed
earnings for the first quarter
to an intensified sales push. It most for a rather long period.
d e v-e loped
little followhas helped the issue put on a Consequently
some
of the
through and the issue was
better-than-average showing - better quality issues, such as
clipped back by profit-taking
wide range

"Chronicle's"

of reprints of the

presentations were mailed by broker-dealers to their clients
and investors generally. However, as already noted, the objective
is still a long way from being completed; hence the brand new
and completely revised presentation in this issue of the "Chronicle"
bearing the caption "Over-the-Counter Market: Indispensable to

quarter and

even

-f

well known, thousands

another

mous,

score

quarter profit should be com¬
special situation fortably above the same
where earnings this year are period last year. The company
being projected to even high¬ has its sights set on achieving
er levels than last year's good
record sales this year.
results with sales expected to
*f
.;■
'
cross the $100 million mark.
The story is different in the
The increased demand both
drug shares, particularly
domestically as well as
those struggling to keep up
abroad for technical informa¬
with
the
demand for Salk
tion assures high-level opera¬
polio vaccine. Parke-Davis re¬
tions
for
this,
the largest
ported a good increase in
publisher of technical and sales for the first

V '

earlier

McGraw-Hill Publishing is

campaign.

Reprint Available

iff

pressure

in the

article
of today's issue entitled "Over-the-

Counter Market:

ranging from
Chemical companies a r e
#
*
armored car service to whole¬
still suffering ffbm a profitAluminums
were
able to sale oil distribution. Its pro¬
pinch and reports so far have
put on a better showing at posed acquisition of a domi¬ shown
higher gross but lower
times. They, too, had had to nant interest in Brink's Inc.,
net
with monotonous regu¬
weather a recent reaction. A is still tied up awaiting offi¬
larity. Du Pont, however, of¬
few, such as Aluminium, re¬ cial approval.
fers a cautious prediction that
bounded sharply
if
if
if
when the
the worst is over and first
wide

"Chronicle" deems it vitally im-

of this feeling, the

Because
f

most

again to historic peaks.

Over-the-Counter Market.

the

campaign inaugurated by the
"Chronicle" to enlighten investors, institutional and otherwise, on
the merits of unlisted securities. The continuing necessity for such
an
educational program is, of course, a source of amazement to
those of us who are thoroughly conversant with the world's largest
market. However, prejudices die hard and it is unfortunately true
that there are many otherwise knowledgeable individuals who are
disposed to look askance on securities which are not listed on an

ing company and while al¬ defense applications and a
two-thirds of its sales third from office machines
Recovered from its recent un¬ are from its coal properties, and
supplies. *t
certainties to plough ahead the
such

again provides a wealth
high quality investment

another chapter in the

marks

This

third from its varied instru¬

basically is a hold¬

only

available

opportunities

Investors

Growth"

of documentary

year's doubl e d equipment to

top of last
earnings.

-----

Most of the better work on

Over-the-Counter Market: Indispensable to
and Nation's Business

sooner
or
later the nonre¬
abbreviated holi¬
after some of them reported curring charges will be elimi¬
day week as the anticipated
nated with profit benefiting
heavy supply of stock mate¬ sharp profit gains last year,
the
newer
favorites, accordingly. Meanwhile th e
rialized when the industrial were
dividend is well covered by
average tried to negotiate the notably Pittston Co. which
485 area. For the rails it was finds business good so far this the earnings being reported.
the same months-old story of year and is almost certain to Sperry's p r e s e n t activities
show a further profit gain on cover a wide field, from farm
no decisive action.

most in the

DUTTON

By JOHN

currently listed as a candidate
for

Stocks

the

of consolidating its
merger with Remington
Rand.
The company is
not

penses

THE MARKET... AND YOU
By

high of'recent ^'Oars,

mostly

have paid consecutive cash
-

Name

Brands, offer yields of 5

Address

5V2%. Sunshine, with the

—

help of some recent acquisi¬
long-neglected carpet group is
<V
Why Advertise?
tions, is planning recordThis booklet should be sent to all clients, and it should be
debate was over both a candidate for improved
breaking sales for this year . advertised in the newspapers for the simple reason that it will
how far the rally would go earnings and a higher divi¬
and
break down sales resistance against Over-the-Counter securities.
fully ■ expects to boost
with
a
rather
large group dend, the company having
earnings. -Standard Bra n d s- Every day that your salesmen are out talking with potential clients
seeing around 490 as about' made something of a turn for
and investors, they are faced with the unnecessary burden of exalso has expanded its horizon
the best
that could be ex¬ the better in 1954 which trend
plaining and apologizing for the fact that some security they may
through acquisitions as. well. be offering is unlisted. If you will only look around and see the
pected at this time if the area has continued so far. Some
as
aggressive merchandising. : ''opportunities for capital growth that have gone across your tradof. congestion' is
breached. estimates of this year's earn¬
A boost of 14V£%
in profit
ing desk during the past 10 to 15 years in the Over-the-Counter
And
if
they are right, it ings run as high as $7 against
Market, there will be no doubt in your mind that something posi¬
last year on a gain of 18%
would keep the rebound with¬ $5 last year and $4 in 1955.
tive should be done to continuously awaken the investors of this
in sales was credited in part
in the confines of a technical The $2 dividend, by compari¬
country to the fact that one of the most important areas for capital
to Lthe- addition
of. Clinton J growth,' income; and for the location-of sound conservative in¬
rally. And
that, in turn, son, is modest and even a
vestments is in this largely unpublicized market.
Foods' line to its own. How¬
r/
would leave the future of the modest increase of 50
?
.vThe only. way. to overcome investor apathy toward securities
been
market up to some external would figure out to a yield of ever, operations have
traded in the Over-the-Counter Market is to mail such literature
running ahead of last year's
as
this "Chronicle" reprint to your customers — advertise this
development not now visible. nearly 7 % on the recent price
article in the papers and send it out to prospective clients—and if
comparable period so far this
if
if
if
against the 5Vfc.% on the pres¬
you want to do something even more constructive along this line
year and hints broadly at an
For individual issues there ent payment,
<,v>
do some affirmative, advertising about such securities
in your
even better performance this
were both bullish and bearish
local papers and make it a cooperative effort backed up by several
IBM Stands Out
year than last. While not par¬
of the leading firms in your community. One of the most remarkimplications that guaranteed
able jobs of "hiding light under a bushel" I have ever seen, is the
International Business Ma¬ ticularly a dividend increase
to
keep the market highly
candidate at the moment.
way that
the investment business has neglected to inform the
one
of the higherselective
for
some
time to chines,
public that some of the most important firms in America have
Standard sooner or later
priced issues, has been busy
come.
their stocks traded over-the-counter; that some of the best growth
would
lard
its payment as
situations in America are traded over-the-counter; and for yield,
posting new highs on fat
Coal Issues Supplant Papers
earnings continue to increase.
comparative security, and breadth of choice it is the Over-thegains but the other office ma¬
Counter Market that offers the investor the largest stock market
\The views expressed in this
The rather sharp decline in chine makers have been far
-in the world.
Yes, larger than the New York Stock Exchange,
article do not necessarily at any
earnings for St. Regis Paper less prominent on sustained time coincide with those of the
the American Exchange and all the regional Exchanges.
and the subsequent dividend investment
demand.
Your customers should know these interesting facts.
Won't
Sperrv "Chronicle
They are presented
this help your salesmen to do more business with less resistance?
trim threw a pall over the Rand has sold down a third as those of the author only.j
tf

■

„

:•

The

big

•

Volume 185

Number 5630... The Commercial and
Financial Chronicle

(1817)

ompan

M. B.

Financial Condition
4:tna Life Insurance

Brainard, Chairman

Henry S. Beers, President

of December 31, 1956

HIGHLIGHTS OF

assets

During 1956 the /Etna Life Affiliated Companies continued

Surplus

2,809,709,862

par

$10

public authorities,

of 10.57%

172,614,285

Contingency reserve
Surplus to policyholders

57,900,000
$

#40,512,163 in above

statement are

deposited with

$595,755,281. Assets
amounted

Total admitted

for

totaling $508,750,000,

policyholders

—

$10

than
1

year's end, almost 14,000,000 policies, bonds and

certificates, covering almost every insurance need,

were

force.

$ 14,000,000

Surplus

84,977,090

Contingency
Surplus

67,171,820

reserve

The /Etna Life Insurance

policyholders

Securities carried

public authorities,

$1,971,206 in above
required by law.

statement are

166,148,910

Company again surpassed all

previous annual records in the sale of
group

$237,774,041. Assets in¬

life insurance. Policies

included

829,000

in force

Company

ness

and

Fire and Marine Insurance

Total admitted

assets

26,606,617

Total liabilities

Capital stock,

$50

year's end
group

life

$400,000,000 in Life

1956, approximately 65%

15,102,595

par

the

hospitalization, sick¬

annuity policies.

Of almost

individual and

individuals, 4.100,000

certificates and several million
gtoup

The Standard Fire Insurance

new

deposited with

Premium income for the
year was
creased $32,996,677.

claim payments

during

living policyholders.

went to

1,000,000

Surplus

7,024,211

Contingency reserve
Surplus to policyholders

3,479,811

Securities carried

$478,350 in above
public authorities, as required by law.
Premium

creased

$
statement

income for the
year was

are

11,504,022

Surplus of the /Etna Life Insurance Company

deposited with

$12,455,272.

$1,806,445.

pany

by $5,809,905, and of the

Company by $116,257
practically

every

was

increased

by $23,195,366, of the /Etna Casualty and Surety Com¬

Assets in¬

The /Etna Life Affiliated
Companies
write

bringing the grand

since organization

payments

323,272,494

par

year.

$ .489,421,404

Total liabilities

Capital stock,

increase

$5,750,000,000.

Marine Insurance

assets

—

in¬

Casualty and Surety Company

Casualty, Bonding, Fire and

made

total of such

$219,403,062. Total insurance in force
$18,637,000,000, an increase of $1,982,000,000.

The AEtna

260,514,285

creased

the

over

$845,984,594

Some 3,000,000 claim
payments,
were

required by law.

Premium income for the
year was

experience sound and steady growth. Total premium

income of the
companies was

$ 30,000,000

v:v'.'

Securities carried

$3,070,224,147

Total liabilities

Capital stock,

Company

Life, Group, Accident and Health
Insurance, Annuities
Total admitted

1956

—

three /Etna Life Affiliated

Standard Fire Insurance

.total

$29,121,528 for the

Companies.

form

of insurance and bonding protection.

m r r- mum i
■

Sliiii
x

it i t
i i
:>i.v

*.>

mmtm

•;*<: ■„< *\>

/Etna Life insurance

SS k

ii li Xm W i
m
* m il
$
MM Mm m * m/ & $

mM-M-

The /Etna

Company

Casualty and Surety Company

The Standard Fire Insurance

Company

Hartford, Connecticut
NEW YORK HEADQUARTERS:

Long Island: 286 Old Colony Rd., Mineola

151 William St.
•

NEWARK:

•

Uptown: 60 E. 42nd St. and

Raymond-Commerce Bldg.

•

9 Rockefeller Plaza

PHILADELPHIA:

•

Brooklyn: 16 Court St.

1617 Penna. Blvd. and Three Penn Center
Plaza

•

The Commercial and

increasing

for

|y; ';;v:

By paul einzig

touched by recent tax

greatly the tax cuts, but seex no basis
outlook for Sterling m 1957.

income

groups

for pessimistic
.,

•

■

«»«•* through private wire to New

£2,000
and
£ 10,000 a year

tax payers.

existing eir-

cum

* ,

,
.

^ •

■

•-

•

mentality today
that many people in the middle
income groups are not likely to
see this.
While they, and mem-

Those who ex-

pected sweepconces-

sions

Robert P. Davis is engaging in a
securities business from offices at
255 Grant Avenue under the name
ofRobertP. Davis Co. ' f
f

But such is the

stances.

ing

J? RANCIbCO, Calif.-*

cessions to them since assuming
office in 1951. In fact, while in
previous Budgets Conservative >
went so far as Chancellors reduced taxation on t
they could middle incomes, this is the first
reasonably be time since 1920 that concessions
expected to go are made for the benefit of surbetween

Members of N. Y. S. L

more than a quarter-century,
1957 need not be viewed
with undue pessimism, unless some
SAN FRANCISCO, Calif.—AdJ. B. Bentley Opens
major strikes
sbo^lf1mission to membership in the New
mg the year. The balance of pay- york Stock Exchange is announced
GADSDEN, Ala.—John B. Bentmerits
figures
certainly do not b
Brush
sloCumb & Co> Inc >
ley is engaging . in > a securities
justify the .absence ,of the^sea- m California street. .
business
from
offices - at
436
- '
sonal firmness of sterling.^ While
.
.
.
.
Haralson Avenue. - *'
there is no sign of any return to
.
s*eP
London
of foreign funds with- ?n *he scope of its
ing and selling orders are exeForms R. P. Davis Co.
the
crfsi the
.
,
, . ,....
. ...
SAN FRANCISCO, Calif.
- very fact that those funds are ab„ ...
• „1,V
:c _ hnrWnl rminf-• York •'as
wel1 aS Wires to Other r.bAJNi

ythprp is less that'can be leading financial centers. The firm
^
!is a*so a member of the Pacific
Conservative Government has in withdrawn trom London when the Coast Stock Exchange) ' : " V
fact made very substantial con- next drain on sterling takes place. \ Founded in 1930, Brush, *Slo-

Mr.

Exchequer,

the

ellor

underwriter and distributor, for

sterl¬

been active
banking field,

Co; Inc. has

investment

the

present Budget will not do much hppa„
for the middle income groups, the

LONDON, Eng.—The tax concessions made by the new ChanS homey croft

Brush, Slocumb Now

marks a_broadening
facilities. Buy¬

bers

over-

Record Year

Copperweld Reports

of the lower income groups,

considered it only

looked the fis-

natural that in

economic previous Budgets everything was
political done for them and nothing for the
difficulties the higher income groups, they claim
Government it to be their right to participate

cal,

$100-Million Mark

1956 Sales Top

and
Einzig

Dr. Paul

sales for the year 1956 exceeded
one hundred million dollars. The continued demand

contend

history when net

mains to be seen whether bybelow election results will be affected' v
l\2,000, he would have incurred by this mentality or by the more
(
large deficit and would have let generous attitude described earlier
J ose a flood of inflation. Had he in this article. In any case as far *
rat out to correct with one stroke as
the general -election is cont\e grossly excessive taxation of cerned, in all probability there
generous on the present
to incom^ groups

jually

(ccasion

income
groups
he will be at least two more Budgets
v ould
have provoked an aggrd- before it will take place, so that
vation of labor relations and would the Government will have oppor(ne

record-high level of

$100

is,

)

than

this point of

view, Conserv-

rom

tive opinion is divided about

effect of the taxation measures on

purchasing

tie attitude of the middle classes,

many

Reaction of

release

power

well

under

and does not

£2,000

therefore to benefit by the

rfand

Hudget to any appreciable degree.
Hut the view is held in many
Conservative quarters that in
this

classes

middle

the

its enviable
-

likely

are

part to

made for the bene-

indications that a high level of national
will continue throughout the

industrial activity

Alterna-

With the additional earnings expected to be
completion of the modernization

year.

realized from the
and

expansion program

during 1957, a year of
be anticipated.

satisfactory operations may

derive com-

and to maintain and enhance
industries served.
year 1957 is favorable due in

position in the

Outlook for the

strength of arguments in favor of
wages demand has become quite
the Government has ceased to try unimportant compared with the

whole

by a

of research in metallurgy to

However, such is now the attitude of the trade unions that the

spite
as

seeks to expand its markets

-develop new products,

-v*

•,

t'ie

the previous year,, not with¬
of 5 per cent
shares of common stock.

continuous program

tively, strikes resulting from resistance to the steeper wages demands might lose for the national
economy output the
value of
which would be many times the
amount of the tax concessions.

the large majority of
middle classes has incomes

It is true,

equal to $4.08 per share com¬

increase during the year

The Company

additional
amounting to

fit of the surtax payers.

in the number

times the sum total of the

tax reductions

Middle Class

standing

working V classes

the

$3,440,872, the
greater

pared with $2.81 for

V )

necessary

record-

applicable to the common

1955. Earnings

stock for 1956 were

much

there

1955 and

of record and 45 per cent

second highest

; Labors Views i;\
economic reflect^ of:'the
pessimism in many Conservative Budget-depends, not on its recep- i f
quarters about the effect of the tion by the middle income groups, S ,
I measures
on
the results of the but on its reception by organized .
I. ext by-elections.
A number of labor. If the concessions made to
middle-class
supporters
of the higher'income groups should stifGovernment have already voiced fen the attitude of trade unions
( \eir
profound
disappointment. in wages negotiations,*then it may
disappointment,
become

earnings for the year were

Net

antagonized the mid- tunities for making fiscal conces?
of the middle sions to the discontented middle
classes on whose political support income groups,
the Government depends for its
7 ' .
.
Y
'Even

cent greater

groups

existence.

of 28 per cent over

than 1953, the previous

20 per

coupled with the

industrial activity, resulted in

year.

I aye further
income

increase in sales

an
MILLIONS

Company's products,

the

for
:'

higher

ale

milestone in its 41-year

Copperweld reached a new

with. - Had the in the first concession made to
Chancellor made an attempt to be the higher income groups. It re-

1957

appointed feelings of the

exceed

cumb

con¬

ing

Government's courage to aid upper middle-classes and dis¬
larger middle class majority not
reduction are contrasted by Dr. Einzig
with labor's reaction to recent tax concessions. The British
economic observer expects perennial increase in * wages to

for

demand

goods.
>-Y.
.Even so, the outlook for

sumer

Cats

British Reactions to Tax

Financial Chronicle. Thursday, April 18,

(1818)

PRESIDENT

CHAIRMAN OF BOARD

fort from the fact that at long last
to

balance of power between employers and employees. A 10% all
middle-classes, round wages demand seems to

produce Socialist Budgets and
mustered up enough courage

to help

the

upper

the

following line:

"The difference between the So-

r'alist

and

Conservative

attitude

Socialist
mobile
cr n

sees

his

that when

matters

expensive auto¬
is

reaction

not have such

that

Dividends

automobile,

robody should have one, whereas
when

Conservative

sees

such

people

some

them."

the

ple

months

higher income

is therefore popular among
income groups, not

also because it is in

but

with

ocordance

basic

Conserva-

tive mentality.

spite

xation

based

ago
was

,2,365,459
1.70

year-end

16,266,620

18,601,781

plant and equipment

8,748,569

-1,835,019

■4,287

3,972

stock—per share

•

Average number

Now they are put
pressed on the sim¬

of employees

Number of

6,687

.6,582,

shareholders
'

that it > was eight
that the last wages
granted. "
•: ' "

Equity per share

of common stock

Compared with the size of addi-

STEEL COMPANY

COPPERWELD

tional purchasing power that has
been or is likely to be created
through wages increases in 1957,
the fiscal concessions in the 1957
Budget fade into insignificance,
The tax cuts are reckoned in tens
of millions of pounds, while the
wages awards are likely to run

$34.56

$36.23

FRICK BUILDING,

PITTSBURGH 19, PA.

COPPERWEI
STEEL
r* DIVISION

WIRE AND CABLE
DIVISION

OHIO SEAMLESS

TUBE DIVISION

FLEXO WIRE
DIVISION ■'

the matter is that,

higher

world!1 rema nS

incomes

in.

e lg es in

And in the course of the Budget
a

Additions to

in productivity,

total of

tax

cuts-is

likely to

We will be

asour

debate

$78,490,150

3,440,872
2.00

on common

Working capital at

- on

int° hundreds of millions. In any
of the concessions, the case, something like half of the

The fact

and

ground

increase

cmly because many people in those
p*oups hope to rise to higher ini

profits.

forward

middle

comes,

of living,

prepared to make tax

concessions to

the

possess

The fact that the Govern¬

ment is now

groups

can

were

arguments about increases in the

rutomobile he is glad that at any
rate

demands

wages

$100,541,926

earnings

cost

Net sales

Net

these

i;i

figures
.

consider themselves relatively
luck.v _if^ey can get In the with
away past
mere 5%
increase.

1955

1956

Ihe.ilory
in

have become an annual event, and
employers and consumers may

Optimistic Conservatives argue
on

:"V

Government

spokesman

that, even though
i'Dinted out

surae the

form of increased sav-

ing' while raost of the additional
purchasing power represented by
likely to be used

the higher wages is

pleased to send

—FLEXO

you

1956 Annual Report on request
Warren, Ohio

Glassport, Fa.

Shelby, Ohio

Otwe^o, N.Y.

Volume 185

«iv"

*>1^
-1

•'
,

-Number 5630

;..

Hie Commercial and
Financial Chronicle

FROM

ANN UAL

1956
Net

was a

income

United

States

year

was

RE PORT

of significant progress for Gulf.

30% higher -than in 1955, with

operations

portion of the increase.

accounting for the major
•••"''

■

Earnings improved in foreign
up

areas, too. Income was
in both the Western and the Eastern
Hemispheres,

with the Middle East

showing
closing of the Suez Canal.
Salient facts from
We'll be glad to mail

Report

our

•

„

if you'd like

presented below.

are

you a copy

;

gain despite the;

some

one.

CONSOLIDATED FINANCIAL

•

DATA

;1956
Net Income—Total Amount;:
Net Income—Per Share

...

(based

1..

Cash Dividends Paid—Per Shore.

Stock Dividends Paid
.

...

'..
:

.r.

....

.'.

...

....

,;,

....

v
,.

Operating Revenues...,t..

etc.

$8.19

69,244,000

57,458,000

$2.25

$2,872,270,000

$2,160,821,000

$2,339,715,000

fnoncash charges)

;

$1,895,670,000

Capital Expenditures (for properties, plants and related
assets)
Depletion, Depreciation, Amortization,

218,064,000

$2.50

.'.

.V,

$9.54

............

1955

282,658,000

year)

Net Sales and Other

.....

at end of each

Cash Dividends Paid—Total
Amount.,....

Total Assets.

THE

465,950,000
*

217,185,000

274,480,000
'

162,626,000

OPERATIONS

DATA-DAILY AVERAGE BARRELS
(Includes Gulfs equity in companies less than
100% owned)
1956

1,087,097
k

Net Crude
-•

7.c

Oil, Condensate, & Natural Gas Liquids Produced
v
..

v..-,;,::

/i _,r

Crude Oil Processed at Refineries,
yj*;.
Refined Products Sold

Natural Gas

Liquids Sol$J.. V.

.-.

".7

.*.. ;.

.v.

'•

971,334
m •

997,777"

897,195

667,806

587,867

..........

695,688

600,956

..........

111,818

10,507

."VV.".
.

1955

Financial and operations data in
and

certain

subsidiaries and aflPHiotes

[For

copy

not

previously included; hence, figures for 1955

are not

directly comparable.

of Gulf's Annual Report, write to the Secretary, P. O. Box
1166, Pittsburgh 30, Pa.)

The Commercial
-

and Financial Chronicle

...

Thursday, April 18, 1957

(1820)

LETTER TO THE EDITOR:

Missouri River
This and simi¬
grants to other roads would

miles between the

Ogden, Utah.

and

lar

The Court

de¬

reaction to the narrow

The

cision of the U.

S. Supreme

Land Grant Rails

would have "negligi¬
ble effect" on its oil and gas op¬
erations.
'

Court ruling

Court

April 8 on oil and gas rights
in the right of way of railroads if
received under land grant turned
on

out

tempest in a teapot.

decision

was
Union Pa¬
had projected one well

Specifically,
made

this

apply to the

cific which

right of way as a legal test,
decision affects only a
400-foot strip, 1,038 miles long,
which is that part of the road's

its

and

the

'There

The

question

decision

railroads

the

retains rights to

grant

involves no land

therefore

question. Secondly, and as hinted
in the case of the reference to the
New Mexico & Arizona Land Co.,
the

applies to all

that

point

"Land Grant"

roads that

fice of the road that the Supreme

right

way

1,000

covering the

railroads
latest

and

based

follows,

Discipline," flow from, and often has flown
in from, the use of irredeemable cur¬
rency.
When nations have gotten
issue of
into financial
difficulties, while
April 4.
redeemable
currency
was
being

Total
-

•

Acreage

•

Atch.. Topeka & S.F.

Northern

Pacific

___

Southern

Paellic

___

9 9

■

-•>

Pacific

"LEME,"

bullion

*•

•.

Offers should be filed With

the Company

;

qji

w4th

Jr.

di Navigazione—Piazza De Ferrari, 1 Genoa

CABLE: ITALMAR—Genoa

almost

CxI11Q^as comPared with tbe

of 1939-

dollar

A continuation of this sort of
necessary disciplines in trade and
finance at home and abroad. It depreciation in the purchasing
_nfr°m
has no useful purpose to serve in power of our dollar can lead to a
sad state of affairs for this nation.
$i8.569,ooo the
pockets or hoards
3.312,000 people."
"j' l » I * A redeemable currency puts limits
•
3,129,007 •
T4!
on the extent to which a people's

of the

one

states precisely the-funcand of

tions of a gold standard,
silver
and
minor

nanor

currency can

depreciate. The ad-

vocates °f "managed" irredeemv^a nfoo
outbid'* if1' able currency dislike this limiting
£22!? kinds of InrrMipv perform influence; they indicate that they
nprfnrm
ferent
currency
up #j.pp q# siirh nitimat#*
deposits

wwf

official

report

1
of

...

greatest

constant

menace

operating:

this

score—the

government's

Assigning Straw-Man Functions
The functions of redeemability

^ a

fe^'' on^ecord^smce
wfSllL
^
^edera^ Reserve
? ®m*i

;

Newton Id B® ■ ^^which ^est enable holders of promeets tbeir needs °r
desires; to
llomllAve a! N V^
• C ^ hndssory dollars to convert them
IViemDerS or 111 I ■ Wi Hi into gold as a means of preserving1

V-

SAN

\ *\\'

follows:

TELEPHONE: Nos. 27,041—28,391—28,771

of
1955.

pf our dollar was down
57%^—<lown to almost 43

power

"•

ANTONIO,

Tex. —Lentz,

Co., Alamo \ National
Building, on April 18 will become
members of the New York Stork
Newton

with the admission of
William F. Cullen, member of the
Exchange

Exchange to partnership. - .
Partners
in the firm will

Applications for copies for the invitation

"ITALIA" S.p.A.

serve

Revenue

Not avail
7,000,000
1,203,835
*7,000,000 t42,40o,ooo

basis

record even when they

operating with the benefits

2* ! redee™able currency. But the
history of "managed" lrredeemcurrencies is much worse
afle currencies is mucn worse.
Tbe current evidence onnothing of
countrv—to sav this point
inis county to say notning oi
^ great volume of similar evidence on this .Issue—has already
invalidated Mr. Sproul s contentl0ns; *n February, 1957, the purour
indexed of
measured oy oui indexes oi
wholesale prices, had reached the
lowest level of record since the
establishment of The Federal ReSystem.
the purchasing

1956 Gross

in fee.

owned

poor

"WALTER E. SPAHR,

within 12 o'clock

the United States be~

cePted

were

ac-

dishdhest,

April 30th, 1957.

should be addressed

has

gold

Court decision may cause are to make promises to pay,
the estabapprehension that other phases which otherwise would be irre- lichrr.„nt
may at least come under scrutiny, deemable, and therefore
0^+^
although competent opinion has redeemable in the coin in terms
been expressed that this is not of which the standard dollar is
/.
Executive Vice-President,
likely to be the case, f
expressed; to enable the people
^Economists' Nat'l Com\
'•
to choose freely the type of dollar
*: mitteepf Monetary Policy

*'•!*iifp"V;

f
<■

inter¬

been

preme

.1
the invitation to file purchase tender dated ^
February 6th, 1957 the text of which is avail¬
able to applicants at the/'Company's Head C
i

cause exnerience had shown that
cause experience naa snown max
domestic convertibility of our currencv
rency Cand our bank denosits)
\ancl our DanK deposits)
was no longer exerting a stabilizi"g influence on the economy
and, at times, was perverse in
hs effects. Discipline is necessary
in monetary management, but it
should be the discipline of competent and responsible men, not
the supposed automatic discipline
of a harsh and sometimes perverse
mechanicgf ^.device: Gofd has a
useful.^mon^tei^ >Yble: < to £ftlay,

earnings of the roads. It remains
to be seen whether the recent Su¬

tonnage

if Genoa^'VC-Si'
:f. •'.V5s•*

standard

What the Record Shows

Management by central banking
history
authorities of the uses of credit

national
has

sometimes

various kinds of functions and restrajnt Thev wish the same
that it is improper to condemn freecj0m as does the government
domestic convertibility of currency who
the-people's purse when
come from
nonrail sources offers because it may not have exerted it inflicts an irredeemable cur¬
a
substantial potential offset "a stabilizing influence
on;, the rency on them.
We already have our evidence
against cost difficulties that are economy" at certain times.
'

and conditions specified in

Office, ^Piazza i De Ferrari
./•
■

and

credit

passed

into
Walter E. Spahr

various other factors,

tally, the gold
coin
standard
has

railroads have
attention from
long-term Investors since the in-*''

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

the

misuse

The "land play"

international

gross

the

honest currency but

use

fundamen-

„n-„

decline from

received
.

"ITALIA" Societa per Azioni di Navigais offering for sale, by

used, the cause has not been

that,

think

5'/o

Mr.

Said

Sproul:

^hiefl^Jas a
balancing
international accounts, and as a
for each road: guide to, not as a dictator of, the

operations

gas

Union

Sale of Motor-Vessel

your

together*
revenues from oil,

1956 gross

with

acres

the

casual

published

available-figures

tEstimatcd

with

currency as a

economies have
because of the
of

♦Approximate total in which mineral rights
are
retained and including over 900,000

tender, the m/v

redeemable

Northern
Pacific,
and Mr. Allan Sproul, former Presi- great heights, and
the oil and ura- dent, Federal Reserve Bank of collapsed,
use
'j. .V..'-New York, in irredeemable
currency. No renium lands of the Atchison. and
his
article, deemable currency, as a casual
the iron and titanium lands of the
"Gold
and force, has ever given rise to the
Union Pacific — have since set
Monetary type of consequence which can
somewhat ,at naught this age-old

—

zione,

the

ruling, being

It is generally believed that the
the day the de-.
these
cision was announced was by far rights of/vyj.e railroads in
"off the line^Kahd grant proper¬
the heaviest in the case of North¬
ern
Pacific shares which broke ties will not be jeopardized. In
over
three points.
However, the the case of the Union Pacific, for
proportionately large drop of lVs instance, the Government gave it
alternate
sections, or "checker¬
points had also been registered by
Union Pacific common before a boards" on each side of the road
statement was made from the of¬ in addition to a four-mile strip for

The

that

Southern Pacific,

selling

In his rejoinder, the noted

gold standard.

production than is an
The latter
casual characteristics,
and have risen, to

the April
confined to right
"determination" is now regarded
of way land grants, does not af¬
as beside the point.
On the basis
fect other lands received under
of what has proven to have been
land grant.
This ruling is inter¬ an erroneous pronouncement, the
construction for the development preted as applying only to a 400- lands were nevertheless deeded to
foot linear strip within the land
of the West.
the roads strictly according to the
granted to the road for its right of law.
The immediate effect of the an¬
way and has no bearing on "off
It is in this property that by far
nouncement of this decision was
the line" lands even though these
the greatest value lies. In the case
a burst of selling of the stocks of
als6 may have been received un¬
of the
Southern Pacific it was
the
"Land Grant" roads which
der land grant from the Govern¬
stated that there is no oil land on
are principally the Union Pacific,
ment. When this point was finally
its right of way except a small
Northern Pacific, Southern Pacific
clarified and was digested by the
portion in California, and a North¬
and the Atchison. The St. Louismarket, a fair degree of recovery ern Pacific spokesman is quoted
San Francisco comes in indirectly
began to take place among all as saying that drilling on the
through its holding of a fraction
the stocks of the "Land Grant"
road's right of way "is not a sig¬
over 50% of the stock of the New
roads.
nificant factor," which is similar
imiccuu
xaciur
which
similar
Mexico & Arizona Land Co. This
♦
+
i
i u *£ tt
While the area involve^ in the to lu
the statement made by the Unsubsidiary holds mineral and oil
Court decision is substantial, one ion Pacific office
In the case of
rights in 1,350,000 acres in New
lu A? 1~?
+i
/i
5
? •+
Mexico
and Arizona which are estimate having placed it at the the Atchison, the production of its
part of the land granted to the equivalent of a 10,000 mile strip oil subsidiarv Chanslor Western
Atlantic & Pacific RR. Co. in I860 400 feet wide or about 500,000 is in land grant acreage that is off
the right of way in virtual or comand which were turned over to acres of which the Union Pacific
the New Mexico & Arizona Land strip represents 50,000 acres, it is plete entirety. As against the relaa
relatively small matter >.com¬ tivelv insignificant acreage repCo. in
1912 by the "Frisco" as
pared with the total land grant resented by "right of way" land
successor to the Atlantic & Pacific.
These lands are said to be un¬ acreage of the roads. Most of this grants and which may or may not
affected by
the Court decision consists of "off the line" property have oil and gas potentialities, the
since they are not now part of that is not affected by the April 8 total oil and gas acreage of three
Supreme Court decision.
of the four leading "land^play"
railroad rights of way.
f
■
The

monetary writer avers

Spahr

points out that this erroneous view glosses over the many
forces at work affecting prices or the economy and misstates
the functions of

construction of
stipulated that "all

sidizing the cost of

stand¬

the Union Pacific. mineral lands shall be exempted
influence has been much less disturbing than irredeemable cur¬
$26.6 million net from the operation of this Act."
rency, and finds the results of our present "managed" systems
revenue from
oil and gas opera¬
Possibly as a matter of necessary
tions of this road last year was
is much worse than the redeemable gold standard it replaced.
public policy at the time, .the Inderived mostly from its Wilming¬
tenor Department made the deton Field in California which con¬
termination that these lands were Editor, Commercial and Financial prices or
sists of lands purchase# by the not mineral lands in order to fur- |;
Chronicle: *
;
. irredeemable currency.
Toad itself, originally fbr an in¬
ther railroad construction. .That
\ should like to comment on has potent
dustrial development, and whjch much of such land—the oil lands certain contentions advanced by Prices can rise,

Federal Govern¬
oil and gas
deposits underlying such conces¬
sions providing a
right of way
which had been made to several
western roads between 1862 and
1875 in order to stimulate railroad
that

for this

which
authorized
these "off the line"
grants for the purpose of sub¬
Act of Congress

the

since

refuting Mr. Sproul's contention that redeemable gold
stabilize prices and the economy, Dr.

ard's function is to

First is that the

right of way which was received
land grant for that pur¬

ment

two reasons

are

the case of

under
pose.
holds

pronouncement of the De¬
partment of the Interior many
years ago that these lands were
not mineral lands. This clearance
had to be given in order to con¬
vey these lands to the railroads

of the

GERALD D. McKEEVER

Decision and the

Spahr Contends Mr. Sproul
Sets Up Straw Man Gold Standard
Dr.

clear as a result

to be in the

seem

Railroad Securities

the government.

New York 10,

N. Y.

April 12,, 1957.

L. V. Campeau
BUTTE,

Du 1 1

Mont.

—

Opens

Lucien V.

bushels Tromoffkes aTl447
^^?asiness trom ottlces at 1447
^ewey.
E. & O. Underwriting

-(Special to The Financlvl Chronicle)
which give rise to a
Jr., Dion. R. Holm,, Jr., William E.
DENVER, Colo. — E. & OJ. stable index of prices are many
Jauer, P. J; McNeel, Harold
and varied; it is not the function Underwriting Co. has been formed
Sigler, and Mr. Cullen.
of redeemability to stabilize prices with offices at 170 West Virginia
or the economy, although the eviAvenue to engage in a securities
With Harris, Upham
dence is that in so far as a rebusiness. Partners are William D.
Leslie L. Lentz, Frank R.

;

be
Newton,

the dollar value of. their wealth;
to enable the people, as individ-.
uals> free to act alone> and to the
extent of their wealth, to maintain control of the use of the peoPle s money by the government
and central banking system, and
hence of the public purse and of

1 Madison Ave.,

The forces

(Special to The Financial Chronicle)

BOSTON, Mass. Todd Baldwin
is now with Harris, Upham & Co.,
136 Federal Street.

deemable currency has a casual
influence it is a much less disturbing influence in respect to

O'Neill and Edward D. Erickson.
Both were formerly with Allen
Investment Co,

Volume 185

Number 5630

...

The Commercial and Financial
Chronicle

(1821)

WZM
;::x-:;:::;>x<^:'

■

Rick Bruhn

Rick

specializes in preventive "medicine."

the

delay—that as a passenger you arrive and depart >

Mobil marine

engineer in Hong
Kong. His counterparts work in every major
Free World

port—more than 400.

«I

schedule—that

;

every voyage isa Bon Voyage.

■

i- •»

o',

tit •.**

•Mr

<•

This master's touch in oil services the world's

;■

mightiest warship, the world's fastest boat, every >
flagship of every leading ship line, two-fifths of r
all the world's
freighters. It was the choice for
the maiden
;

submarine.

For

voyage

of the first atomic-powered
f

information about these doctors of

ships, write to Room 2400, Socony M obil Oil Co.,
Inc., 150 East 42nd Street, New York 17, N. Y.

-■

e»

and Financial Chronicle.

The Commercial

•:

Thursday. April, 18r l957

(1822)

Unselfish

The World Requires

Mankind

"Love for All
By

Indian's supposed usurpation of their prior
rights in this land of the free and' r

"How" are picturesque terms.?•

home of the brave:

feoit there be any spiritual appealjn such a salutation as "I love
is Love, lots of Love, the kind of Y°u'
d might be fitting to adopt
unselfish Love that Jesus Christ a Parting salutation
May God be
practiced during the short life that with You, for vve are taId in the
He spent among us which is epito- HolY Wnt that, God is Love.
mized in His preachment "Greater
Never in the writer's lifetime
Unquestionably, what this unworld sadly needs today

so the great question, our relations with soviet Russia, must
perforce resolve itself into a stand-

civilized

ALEXANDER WILSON *

of inducing a reciprocal

examination of the problem

A critical

American

io"v and...the

Love

friendly attitude from the U.S.S.R. leads the author to con¬
clude that there is no better policy than one based on
"unselfish love." Advises we try whenever possible to praise

life

his

down

lay

Man

and deeds, if any; and believes that
this approach will help to bring peace nearer, prevent future
wars, accelerate efforts towards liberty, freedom and human
welfare, and promote national and international relationships
to
a
friendlier moral climate.
Writer scores Washington
U.S.S.R. good intentions

However, there is a great lesson
interna- f0 be learned from my young
his tional law and international trea- friend's reasoning and that is, inties meant so little or been so stead of excoriating and berating
of

than this that a

love hath no Man

ing questionnaire: What would
Jesus do in the circumstances?

for

l'riends."

over,

has

years,

wantonly violated both in letter an outlaw nation like Russia, that
and spirit. ,.-f > ,
We should try, if possible, to praise
place to live and work in if its
- - Hateful Cold War
^ S ^ her good intentions and worthy;
2,500,000,000 inhabitants, or even
.
, „
.
actions, if any, and Pray! Pray!
fraction of Christendom, used 'v For
foll°wmg the Pray;
the RUSSian leaders and
V
press conferences for wasting the President's precious time.
such a loving and friendly saluta- Sec°nd World War, we continue pe0ple will in the course of time
tion as "I Love You" in our daily :
be confronted witn a bitter^ turn to sanity and reason when
This gladsome Eastertide /sea- that the folksy expression "I Love
intercourse?
' hateful Cold War with our former we extend the hand of friendship:
son, during which all Christendom
You" should henceforth be a
The love that is meant here is
s0"called
Russia. Now the admonishing them to follow the
lne love that is meant nere ks
braggart and
most intransigent orecepts of the Prince of Peace
celebrates the blessed Resurrect spoken greeting in man's daily
not romantic love but Mother love,
nnw^ in th*> wnrlH enntestin.* -ill i
f/
j
Tu
i
^eact.
tion of the Saviour of Mankind, contact with his fellow creatures.
We are creatures of habit and fol¬ proineixy rove, the self-sacrificing Powe,r,m theworld, contesting ail for then, and then only,, can we
brotherlv love ine sen sacinieioj,
people s right to Life, Liberty, and hone to realize our "Love for All *
and when the
lowing our usual custom, we con¬ disinterested love that Jesus Christ
Plir<.llit nf Hanniness
V?
•
J*r
*
old Earth re|
fine our salutations to the conven¬ taught and lived by in His life- >h®Pursuit f,
PP " f;
' Mankind."
^
;
sponds at the
tional endearments: "My dear Mr., time
r
*, Our peaceful .way of fife, as the
• / .
• , ;
s a me
time
will

Who

would

that

deny

sweeter

the world
and better

My dear Mrs. So and So" in
correspondence whether we are an
or

with the Res¬

urrection

clothes
world

How

beautiful

to "Hello," or

do?" or "How are

you

you?" or the traditional "Good
Morning," "Good Evening," "Good
Day,"
"Good-Bye"
or
"Good
Night"
when
such a friendly

flowers, green

and

of
well
as a thousand
other welcome
the songs

birds

limited

sometimes

salutation

meaningful.

and

manifestations
to
help commemorate Jesus
Christ's Ascension and Victory

would
expressive

"I Love You"

certainly be far

Wilson

Alexander

and

natural

Marx-.:

feSiowman

our'

™id

regenerating- force >than
regeneiating
lorce than-^

greater
greater

other thing on this earth to
bring Peace nearer and tb prevent
future

'
words

Few

late

our

unless

years,

'■
'
.language

"mnrriar/p "
marriage,

have
nave

or'

it may be
easier to ex-

death and sin, seems to prethe writer of this article change such a greeting as "I love
thought for meditation that may you" with strangers and members
hasten
"Love for All Mankind" of the opposite sex by repeating
and the eventuation of Peace on the title of the old German love
Earth and Good Will among na- song viz: "Ich Liebe Dich." \
tions. Or, as George E. Sokolsky
The reiteration of a love greet-

.pver

songs,

cheap radio and
or the witless

aptly expressed, nature's
contribution to springtime: "The
annual miracle of spring is here
once
more, and the rejuvenation
so

ing like "Ich Liebe Dich" .by your
fellowman

may

bring

nearer

realization of Peace on Earth

„

...

of Mother Earth serves to revive
man's faith in the eternal order of

and foster a good will urge to follow the Golden Rule in the attain-

tflings"

ment of the

Brotherhoodflof Man.

"Journal-Ameri-

if a referendum of all the na- - The New York
in

tions

Christendom

were

today, what is it that the
of the world most desire?

held

peoples

editorialized

can»
.

its

Feb.

t tttt

thrff

it not be the

,feSue- that just THREE LIT1LE
WORDS —"I love you" —"have

which

done more to, influence the course

Would

Brotherhood of Man,
vvould
mean
Peace
and

Will, the end of Wars and
our common
hatreds, the accept¬
ance
of the Golden Rule, or in

Good

words, could it not be summarized as the Prince of Peace's
fondest hope and aspiration—

four

"Love

(eruational

the

ethical

comes

than

mind."

anything

The

"Journal-

American" editorial continues:
What

fine

world it would

for all of us if the

mutual

esteem

phases

could characterize our daily lives
throughout the world."
f

questions.

of the old
"Ich Liebe Dich".

1 The

in-

song:

title

German

love

REPUBLIC OF COLOMBIA
BANCO DE LA REPUBLICA
(Colombia)

"P,

1957

scribed

United

States,

ments)

of claims arising out

ul.,Iuuuv-

;

.t.here no ^'^rnative

except ultimate war?

^'have forgotten the wartime writ-,

It should be said here that no tion during World War I, were
has
endeavored to' find
a
masterpieces of statesmanship and

tne

What

man

wit h

peaceful, solution

vigorously

grealei

zeaj and wisdom than John Foster

deserves the

Dulles, who

Mnn"

Phristmas

faultless diction, significant
dramatic force and fervor.

lasting

While

some

with

doubt the

us may

vlino

out of Congress.
;
admitted that there is no nation,
P???e! Peac,e* Peac?; 18 tb?.cry no matter how big and powerful,

vear"

the

National

international

and

re-

lier

moral

the

writer

would,
accelerate' the
and

climate

efforts that

thinks

Deade

How

can

can be attained is rf such statements are impartial
*
r
uum.
throughout the world todav
Mr' Dulles' our Patient and in¬
How
^iendshin he deviser? ^fatigable Secretary of State, has.
-W ^rnetuated with
outlawthe diPlomatic training and these
legal
talent to
present forcibly
'

1 1,1KS' atceitraic inc still the riddle of the universe and nresentations of the truth'
the world
thfl hfmp of all nnd-fearing neonir

are sweeping

today towards liberty, freedom and
: ■

human welfare.

The German poet,

Friedrich

toph

humamty"> y"et there' which would long willfully ignore
be attained i« ?be m«ral power of world opinion

^SS

Jationships would enter a Mend-

von

Jobann ChrisSchiller. ,uf-

can

factual
that

cause

country

its

and

impassionate

denun-

pro-

declared'that "There is no Free- vocativeTMderTto
ciations to the world when per¬
the
occasion demands it. This, if
friendly overtures without
tub»<»><-VOtal,Ve leadetS re"Procatesub- sisted i n, the writer believes,
Love."
demand= ,t Th„ ,f nerThe Writer Answers Skeptics
n?SmS/liTTaS«5WA1 would finally wear Russia down

"I™and say that anyone who
HkeP"fh1fPer?0nS-n'hr

1
laugh

expects to

flood the universe,

which is full of hate and

distrust,

"s beneficences, other natjon, ways andjoin, the family of nain our countions in
endeavor to effectuate

t
-s
t to heI
try's quest to help

and

enjoy free

riLmpnt?

dreamer, and
for thinking that

self-

unmolested

with cordiality, is a
to

pitied

words

Love

this

Turn

mil.ciclo,

the

Other

peace

The

Cheek'

and

tranquillity on Earth*

Travesty
Press

You"

sncl yet
happened.
May I remind the critic that one
man, IVIahatma
Gandhi, recently
work

Por

answer

to this

of Washington

Conferences

question

thcit is worrvins Christendom since

In the writer s opinion it is 3

precious loss of time and effort
waste our Executive's views at
Washington pi ess conferences to
won India's independence by pasfriend Qf his made before this ar- provide front page newspaper copy
sive resistance without firing a tide Ws written
With a religious 011 national questions when the
single shot! Think that one over!.;'Sant, ttaHyoung man Mrnertty^ President's utterances should be
It is indeed interesting tp know
suggested that we will not attain international in scope and worldthat some of the salutations and
peace until we stop berating Sowide in their application. This is;
greetings that have come down to vipt p1]<5cia fnr her delinniipnries no time for small town meeting
when people met or departed
and inhuman methods and that we methods.
From his vantage point
occasions
of ceremonious should
miiitantly follow the Sav- -in the White House, Franklin D.
approach liicluded (1) embiaces, iour's biblical*preachment bv turn-" Roosevelt at times certainly made

stranger

things

have

World War II ended

wrjter
come

was

quite

the

1945

interested

observations which

voung

(2)

principal
of $70,000,000, are issuable, on the terms de¬
in the Prospectus, to banks and exporters in the

The above Notes, authorized in the maximum

settlement

and Good Will Toward

of "Peace

•"

tnat;.now at the break- mg solution and believes itsto coroui relationships cation would cause Russia apphare

4% Notes, dated March 1,

amount

protest?v. The^

I .Love Ylou

is NO! j

«ratitHrip nf
hicj muntrvmpn nnH
r
•
■■
u
uuuul V ,
Dnv snirif g
/:
countrymen arid efficacy of using such a peaceful
Christmas Day sPulj not the partisan criticisms of pica- method as worldwide prondirid
nn1itif.ian(! nnri Pr;f;,.0 in nn,i
meinoa as wouawiae proclanlathrniuyhnnt thf»
Hnvc nf
.vune politicians and critics in and tions, it will, the writer thinks, b.e«

likp

thing

will

offer of these securities. The offer is made
only by the Prospectus.

faiths

all

violations* in- -

- .'
- * V
The writer suggests the follow—

answer

crusade. Would it not create some-

three

tbem

...

will,

you

would

propagandized

This is not

mere

churches

that

generated by St. Valentine's Day

for all Mankind

Perhaps the writer will be conpidered naive when he proposes
•Writer

mankind

.»

imagine,
cnange

It goes without saying that mod- mgs and messages written by extelevision frn war is unthinkable and must President Woodrow Wilson, one of •
quips ao- ,je avoided by our country and thertl t-\ r-c p/4/4 great statesmen whose
"
r»Aiinfi<inci
t
nl I
Wncel
vG i-» world s viAPPAn n-n
< nr a»»1 rl ttri /*! A

programs
.

'° ftf8'"

•

Allev

Pan

Tin

heard

sent to

has

sn
so

often

•

our relations with
soviet Russia and its satellite
Prmntri-«c
th-u
™ir
reiatinnchins

left

8- 8 . 8Ulls' * ix
promises and treaty

differences have become definitely without

deadly

:so

the word
nhused''
abused

been
been

•.

and a denial mentnepolitically, meekly and submit to Soviet Rus-.?/.
ot
sovereign sia's insults misdeeds broken
0]
iree

«nriaiiv

wars

„

£ £ st^?v

whSet^eT
naU£l

any

•

person,

instance,

for

-'woman
more

...

diffident

absolute

an :

stranger to the person addressed.
Our casual verbal greetings are

the
with

foliage

friend

intimate

and

Spring

t hereupon

writers belief-that ,a

the

leading exponent of free enter- Peaceful Methods to Insure Peace'
prise and Capitalism,is openly and ' ^Someone may^ask the writer
hatefully m™** bythe
the

(together with cash pay¬
of commercial transactions

rubbing

the

Polynesians,

(employed by
Bur-

noses

Ma ayans.

and other Indo Chinese);
Kissing (it was .customary in

mese,

(3)

1!2ek,pen.<?<1

ing our «other cheek"* again and
acraiu even when the nrovocation

our

S
us

humans,

however,

there

klS8

,to
must be a limit to this biblical
hand, the breast or the .knee of, procedure which Secretary of
a superior).
Kissing, of .course, is state Dulles knows better than
umv rsal to this dav; court cereanv mamaP've today for we would
e

the most of his verbal opportunities as the nation s leader in the
realm of world diplomacy in actinS as America's spokesman in

international affairs,
Whoever

heard

of the

press

Prospectus.

interviewing the Pope or the King
or Queen of England or head of
monials, for example calliug for jn a sh0rt time be reduced to serf-, any principality -or other importhe kiss on the cheek by soverdoiT»|
r
:
.
.
taint personages in the undignified
dgns and kissing on the hands bv
Then*, too. the^e are many world manner that some of our newsmen
subjects. In partings 01 farewells observers who think that there is occasionally indulge in.

Copies of the Prospectus and of appropriate Claim Forms

which

Colombian banks and importers

which are subject
provisions of Decree No. 10 of January 24. 1957
of the Republic of Colombia. No claims should he
presented to the Fiscal Agent until receipt of approval
thereof by Banco de la Reptiblica as described in the

with
lo

the

may

be obtained from SCHRODER TRUST COMPANY,
Fiscal Agent, Trust Department, 61 Broadway,
New

York 15, N.

Republic of Colombia
April 17,1957

Banco de la Republica

mlante ^Peacebfon W'Ao no PO^ible. wav that the free
their retdv is "WJalikim United Nations can pacify Soviet
raKS Russia without war!
*j**
be the
of God " Id ancient'
Yet in G°.nt/ast
tbe Paclilca;
times Romans apoHed "^alve" (be tl0n of Soviet Russia- lt must not
in health)^ and "Vale" "fbe well v" be for^otten that we Americans
In S®. 85he
peace

"Adieu " the

the

German

are

beautiful

eQulIable understanain,;, XVltrl trie chooses.
^
Wiedersehen"' *****% Indiars,^vho-riahtlv
puWic.has ndt forgotteh.the
exnressive sen- wrongly, resented the Whrte Man s i^pudppnt quP?t!on one reporter
English''Cheer--'- tsee Matthew 5-39.
- /
. recently asked, the questiop which

<snanit!h"AHin<;" nnd

"Aui
and

timentsNvhile the

if the President must debate his
policies with the members of the
press, the newspapermen should
submit their questions in writing
prior to the conference, when it
will be optional for the President
t?' anSWer SUCh qUeSti°nS 35 h'

Volume 185

Number 5630

The Commercial and Financial Chronicle

...

(1823)
angered the President —- whether
he would; recommend the discon.-*

which

amount

totaled

about

tinuance

feet

to take
in order to

helicopter

him to the golf course

reduce the national budget!

u'l dream
f

"i-

world where Man

No other
And peace

customers

For

will scorn,

man

its path adorn."

resale

billion

13.4
the

billion

1956,

year

Watson

operating •75;

Federal:

Lawrence

to¬ ; John

-'v..

■

will

securities business from offices

company amounted

$11,980,508.

,'T. L. Watson Admits,

BOSTON, Mass.—Chase Distrib¬
utors Corporation is
engaging in a

approxi¬
cubic feet, -.

$88,330,209 and net income

taled

Chase Distributors

cubic

industrial

aggregated

revenues of the

223.2

for

and direct sales to

mately

Where love will bless the Earth,

sales

Street. .Officers..

May

•

1
become
&

Henry B. Cross, Jr.
a
partner in T. L.
Co., 25 Broad Street,

are

New

York

City, members of the

President;

Kirk,

Chase,

New

York

Stock

Treasurer

and

-William J. Kirk* clerk.

;

On April

will

retire

the

CHICAGO,

firm.

the Midland Hotel.

Pipe Line 5% Bonds v~
Weld

Webster

& Co.

and

Stone

Securities

Corp. as
managers of two underwrit¬

joint

ing groups yesterday (April 17)
offered Transcontinental Gas Pipe

Line

Corp. \ securities; in> tne
of .$50,000,0C0 first mort-

amount

kage pipe line bonds, 5% series
due

April

khares
stock

series

stated

—

arid 100,000
preferred,
(without par-

cumulative,

$5.96

value

1977,

•

value

$100 r per

share). The bonds were offered
at 100.63% and accrued interest
from

April 1, 1957, to yield 4.95%
maturity, and tne preferred
was
priced at
$100
per
share,
plus
accrued; dividends
from May 1,: 1957. > '
.:v% >'
) Net proceeds from the sale of
to

stock

the

bonds and the

new

ferred

will

stock

the company

tion

new

toward its
and to

program

pre¬

applied

by;,,;

construe-

repay

out-.-

standing bank loans.
The com-,,
pariy estimates that it will spend
approximately $113,000,000 after
Dec. 31, 1956 ill completing con¬
struction
date.

/■

\ The
to

■

work

«'■

scheduled

*:■

that
•

bonds will be entitled

new

sinking fund in the amount
$1,125,000 on April 1, 1961 and
semi-annually thereafter to and
including April 1, 1975.aad in the
a

amount

$2,250,000

1975 and April

Oct.

1,/

1 and Oct. i; 1076,

leaving $10,625,000 falling due on
April 1, 1977.
/
'
} The new bonds will be redeem¬
;

sources

able at optional redemption
prices
beginning
106l2
during the
first year

and receding to par at
except that the com¬
pany does not have the right- to

FINANCIAL

maturity,

redeem

any

period

the

years

bonds
as

for

refunding operation by the appli-

The

new

entitled to

ing

V-y,

par.

2.5k

sinking fund amountshares

for

each

100
:

outstanding on May 1, 1,962, /
beginning with the
12
month ;
period ending May 1, 1963 and in,'

for

standing

each

100

thereafter.

1956

•

DOLLARS)

•

10,945,859
40,195,249

1955

12,276,309

Total

revenues

..;..;.2;,.L.;.i......;.^..:^..;^v...;'.$246,204,246

$205,798,315
25

Net

earnings (Note

Net

earnings

A)■

7,438,038

3,947,962

6.30

3.06

1,961,345

1,501,717

2,926,980

1,607,620

4,898,648

4,152,774

23,037,405

9,180,287

;*' .""-Total Assets ...:.I....:.^..^.;,..;1..>1;..;„..':;...$150I059I645

$121,458,752

share of

per

common

stock

(Not* A)

out¬

Common stock dividends:

May 1,1962 thereafter.

The stock will be callable at $110
for five years; at $106
sixth year,

PITTSTON

-Barrels1 of petroleum products
sold4>.;.;..;<.5'.• '43,832,166

each 12 month period thereafter
through May 1,1972; and tb five
shares

(IN MILLIONS

HIGHLIGHTS

Net tons of coal sold

preferred stock will be
a

revenue

ANNUAL REPORT

cation of funds borrowed at an in¬
terest cost to the company of less
than 4.95%. The sinking fund call
..

gross

part

prices for the bonds will

THE

during the;
and at declining
prices/;

sources

Cash (Note B)

stock

Depreciation, depletion and amortization.'.,/

•

V'.

Transcontinental Gas Pipe Line;
Corp. owns and operates an in¬

net

income

(IN

MILLIONS

DOLLARS)

Expenditures for property, plant and

terstate

gas/. Its main

tends
arid

New

phia
a

pipelme system
Gulf

Coast

ex¬
-;

the

Jersey-Philadel¬
metropolitan area, and has
per

capacity of
day, exclusive of

eral

recently granted by the Fed-',
Commission. An apis

pending

before

will

increase

the

-•<

,1...

» v

:-~/:(A)-^A*ijust*d

„

to give

service.

from

present

(-B) Including dividends

former 'minority stockholders of Clinehfield Coal

Corporation/and--cash in lieu of fractional

including deliveries

from

stock dividend.

199#

THE

'♦

total

PITTSTON

storage,:

for the year 1956
totaled approxi¬

mately. ,236(6 billiomeuhi£. feefc-yof

COIVIPANY
\

250 Park

•.

sales,

■

storage

The company's
gas

48,579,062

effect to merge/ with Clinehfield Coal Corporation.

allocated capacity to 945,317
MCF,:
exclusive of 136,452 MCF
per day
available

54,931,550

daily allocated

capacity of 111,381 MCF which if
approved

•

-f'
....

the —;

Federal Power Commission for
further increase in

,1,1

■

Stockholders' equity (Not* a;,....:....

/ /

•

Power

plication

gas available from storage.
Authorizations to increase the
daily
allocated, capacity by 80,396 MCF
were

;

allocated

753,550 MCF

;

.«

York-New

present

AT YEAR END:

1,842 miles from the Texas

Louisiana

equipment

pipeline sys-em for the
transportation and sale of natural

Avenue, New York 17, N.Y.

Clinehfield Coal Company
Division, Dante, Va. and Clarksburg, W. Va. • Lillybrook Coal Company, Lillybrook, W. Va. • Amigo Smokeless Coal
Company,
Lillybrook, W. Va. • Metropolitan Petroleum Corporation, New York • Maritime Petroleum
Corp., New York • Globe Fuel Products, Inc., Chicago, 111.
Metropolitan Coal Company, Boston, Mass. • Greater
Valley Terminal Corporation, Philadelphia, Pa. - Pittston Clinehfield Coal Sales Corp., New Yo/Jl
Davis-Clinchfield Export Coal
Corporation, Hew York :• Routh Coal Export Corp., New York • United States Trucking Corporation, New Yor*
*
Baker & Williams, New York •
Tankport Terminals, Inc., Jersey City, N. J. • Piattsburg Terminal Corporation,
Plattsburgh, n. Y.
^
v

Valentine Tankers

Coloration

New

York.

Hii\
President of Air
Reduction Company, will address the
luncheon
meeting of the Investment Ana¬

And Preferred Offered
White,

to Hear

111. —John

Transcontinental Gas

lysts Society of
Chicago to be held
May 28 in the Adams Room
c.i

Exchange.

30 William C. Farley
from

Chicago Analysts

April 18; 1957

The Commercial and Financial Chronicle;Thursday,

(1624)

Wil¬

Assistant Vice-President and

Assistant Cashier
The
addition of the Newport
Harbor Bank as the Corona del
Mar
office
of
California Bank

V-

»«**«»

"*• -

* 'S

•«

liam D. Sexton,

Banks

News About
CONSOLIDATIONS
NEW BRANCHES
NEW OFFICERS. ETC.

„

Millie

ET^V„\AJfAtLnaeTe1^t
of Athens, Tenn.,

ace

C. Flamgan,

Chainnan of the tlonaI Bank

Bank Stocks

—-

York City banks.
The following are their pershare figures for the 1957 first quarter and for the 12 months'
showing to March 31, both compared with,-a year earlier.
leading

operated as

(^rn^Ban^

Y'.-

New

•'

• ;t

-4

»..

•*

....

' V

■

Fint Q««rter

■

Norwalk
commercial
and ■ ;'
gavings Bank> j„ a j0intr statement-, • i

7:/r/;/7vZ;'/;'

/•

7 i9«;

»•

J°,ned. ^™faHc;

Sten8??

$1.20

•

$50.)

present, Mr. -Stengel is a
Pension Consultant in the Bank s
At

banks.

*
•

•

•.

.1956

■:

5.31 '

0.89

6.27

0.91'

;-n 20,42

1.00
1.10

4.06

•

27.06/-

•

7 -3.87

;

,3*66

3.99,

$5.13

4.08

♦

14.94?;

716.24

•

■

5.61

t./

quarterly -*1*
i

„

5.67

r',' 1 •

•

3.70

v" 25.97

•

■

'->■

Morgan was elected a

York Savings
Rfl«ir 0f Brooklyn, N. Y. on April
15
♦

The

Vice-PresI-

Trust Com-

County

White

Plains,

dent

York,

New

March 29,' the merger of
of Laguna Beach, Laguna
elected Beach, California,- with common
ness
Bank

$25.)
*

[

David L. Treadway was

This tabulation follows:

$500,000

from

$700,000

First

stock dividend effective April 3,
A plan for the consolidation of
(28 000 shares, par value $25).
the Union Trust Company, Spring*
*
« '
field, Mass. and the Springfield
^ Ali„p National Rank Ali^

Bank

National
4.

Bankers

•

rvimnf^nipr

April 5 by the

prl?/" tP

and Walter E.

Godfrey, President
nfSpringfield National.,
The

Farmors

title

(Tvnst Company.
Mr.
•

PrMirionf

become

^Be^>me Ex
vL^esid^ Both

would be
wuuia oe

uireciors.

would

Fi^ Natll^al

■-j.

use

wm"

of more funds.

borrowers were

accommodation

»arfW ment department as. a . Security. ...
Shircliffe have been/ elected Analyst. In 1937 he was promoted /
to the office of Assistant Cashier

.+v

2,084,000

1,519,000

;

;?'vt

;

v*■

■

1,673,000 .<:/

4^ /7729,000

632,000

7r
V-'-i

Farmers Trust Co.

in earnings-from,

increase

This

1,944,000
3,226,000
4,769,000

1,716,000

; -

■f'

roughly, $54;000,000 in the

quarter tp ahout $61,500,000 gives us a 13.9%. increase. As deposit
volume was.lower at ^the quarter date than "Oh Dec. 31, -1956;-.this commendable increase in earnings Was not accomplished by the

transferred to the banks lnvftst*--.,

2,016,000
7 4,235,000

;/-iy 7;

v /

-14,090;000 v;7

7,020,000

^-uu

'5,839,000
422,000

7,560,000 .v

//- 2,875,000

•»''

;

12,945.000
:

12,337,000
:

1,003,000

4—

Indicated eaniinjfs.

t Include City Bank

1022

YorkrTrust..,—

United States Trustw-

JTegan^i'ik teSwne"1"''

;v i

^ partment of California Bank, Los
Vice-Presidents in the trust de-

directonf

* ^

}

»?,"

First

——

-V»,<
«■''
r

eaiUve

•

;

tKo

^G^dfrey

Bank.

S«<M.kKr»wers

effective March

Security Bank. •

MacLeod swould

;

Empire Trust

7New

10,901,000 \
4,713,000
415,000

Exchange,

Manufacturers Trust--Jr~i'
J. P..Morgan & Company.

/ Louis.-J. ; Rice,1 Vice-President •
and; Director of The First Na,
tional Trust and. Savings Bank of /

Glasgow/Mont., has changed its.

the- Valley

Cashier, R. W.

organization would be
Bank and

new

known

1957

$5,290,000

$4,842,000

days, according to
/announcement by Bruce H. MacLeod, President of Union Trust,

Fir»t Q**rter r

850,000

York

next 90

New

%Firs t National City-—..^ _
; Guaranty Trust____
*Haqov.er Bank
/_
Irving * Trust- _1 /2- -

frurrpnrv

of thfr

•

■

wa^s^edTch^toby tlfe divided- into ;4,7« 000 shares of
If common.stock of the par value of ,
boards of directors of both banks;al
elo^f bSSness $12'50 each; gurpIus of $59,262,500; .
The plan will
be presented to
*££?'SSMSK and undivid^d profits of
tess ,
stockholders for
vote within the
S5MOOOanda^Lrolus than $57,164,867.
^
on

Manhattan

Chase
*

.Kstfenali Bank, Springfield, Mass.

approved

Trust

Chemical Cornr

Los

Bank

effective date of merger,
the receiving association will have
capital stock of , $59,262,500
At

•

was

1956

the

;

with

dividends.:

Operating Earnings

-into Security-

stock

Currently in charge of the per- a Vice-President of the Republic stock of $150,000,
sonal credit division, Mr. Nathans National Bank of Dallas.
First National Bank of Los Anat one time managed the Scarsdale
*
*
*■//;./../;
geles, Los Angeles, Calif.,
office of The County Trust Com; The common capital stock
of common stock of $59,000,000. The
pany
and has worked in
the the Wichita National Bank of merger was effected Uhder
bank's securities and savings de- Wichita Falls, Texas was increased charter^and
title of becuritypartments.

for

April 15. He has been an officer
of the Bank since 1940 and was
elected
Vice-President 10 years
„

adjusted

periods

completed 25 years of service on

ago.

Guaranty

Ela. was increased from $1,250,000 of business will take place about
20c,w; -Hanover 20^
• ,v.y. /y^ r
'
to $2,000,000 effective March 30. June 21, 1957/Norwalk Commer-^y
It is probable that in this tabulation the quarter earnings of
(20,000 shares, par value $100.) . ; cial
and, Savings ^ Bank has /
sj>
*
#
resources in excess of $8,000,000., Empire and Hanover, as given, have little significance. Indicated
By a stock dividend the Fidelity * California Bank's resources total uJ earnings are merely; u reflection of the change in the period in
National Bank of Baton Rouge, more than $900,000,000.
capital funds, plus any dividend paid; and a bank may utilize
La„ increased its common capital :7:Z777'iV'7
only two quarters for crediting profits. The other two quarters
stock from $1,250,000 tb $1,375,000
Merger certificate was issued
would then not be representative. r < :
; :
■
v :
by
a
stock dividend, effective March 14, approving and making ~
If we ..use total dollar earnings of these banks for the first
we get an increase over the first quarter of 1956 of about
April 5. (55,000 shares, par value effective, as of the close of busi13.9%; '
? Earlier

trustee of East New

pany,

Empire A"c;

v. -

v.-."

•

-5.38
J;/:, / 4.5T^;/;
1.41
.
t
1.23 7/
/-/" 4.79
^Guaranty Trusti____ 7 71.17"/-7 /^ 1:26 /
/
Z3.76
0.54 ■&^ 3.27
0.56 V.:
Hanover Bahk__;_._
r 0.64
/ -0.57 c;
2.30 v? / ' 7 2.63 ;
V

1957

3.56

John A. Nathans, Jr.,

■

Security Commercial Bank, Bir•'
Personal
Trust
Department, 45 mingham, Ala.,, consolidated with of the -NorwalkCommercial and
..^Irving/
* 3.28 >
0.95
Beaver Street.
'
•
Exchange Bank, Birmingham, AIa.,;vSavings. Bank Mr. King said. A. O. ^
Manufacturers Trust / 0.84 6.95
:
22.39
;
5.72
v:
J. P. Morgan Co..___
;
*
*
*
effective April/2, under charter giverson>; Executive *• Vice Presi- >
5.01 r A
1.39 '
New, York Trust. _j-i r 1.27;; V
Morton Downey was elected a of the latter bank, ana; new rtitie ^ent / and -Earl . B.
Myer, Vice/// " 5.21
1.46
/ United States Trust f 1.26
director iof lhe' Federation Bank' Exchange-Security,'Bank. >..<>■
'president, ; will•• .become " Vied?
1956 on 12,600.000 shares; 1957 on 13,000,000. '
and Trust Company, New York
•■/'■•
*
*
<*
V
Presidents of California Bank.
r */ : • J t Indicated earnings., Hanover and Empire do not-publish
it was announced by Thomas J.
By a stock dividend the com- * Subject ; to
the approval of v
/T:. J/ income- accounts.
;;v''
-V -i-.v.
•••; > •Shanahan, President.
mon
capital stock, of The Ex- stockholders of both banks, it is
tjncludes City I Bank Farmers Trust Co.
A-*-£ -vv
*
*
change National Bank of Tampa, expected that the aetual transfer ~
Alfred Y

•<

•."!*

•

-$4:74 *;•'

$1.31

■

MW ■», *

I'i yus. to March :U

1957

tSEmpire Trust.
tFirst National City.

- ...

The merger is not expected to
resun
any changes in personnel
.«

-York

Chemioai Com

toeciSS

I®5®*

of- New

^Chase^ Manhattan.

City Banks

■'

Bankers Trust___.
Bank

recently that the ar-

in 1952. He stock dividend and-from..$150,
rannements
for
the ' proposed .
was appointed an Assistant Trust
to $200,000 by the sale of new m^rger have been approved by
Officer of the bank in January, stock.
(4,000: shares, par-value:
of
of both'
Trust Company

•*
' •

n'-

Operating Earnings Thirteen New York

turers

earnings of the

Surely there is no complaint with the current

in- (he>

capital stock

creased its common

Board-

Week

This

;/:•;/

Los

be merged with and

Vice-President

»e

oi Charge of Corespondent Banking., an^ffice of

officer

By ARTHUR B. WALLACE

Angeles,
and the Norwalk Commercial and
Savings Bank, Norwalk, Calif, will
California, Bank,

S^efTnamTrJ

Cali¬

:!■■/

-V; t:

CAPITALIZATIONS

the total number of

fornia Bank offices to 59.

Bankers

and

REVISED

brings

Bank and Insurance Stocks

the fact that more

One important factor was

*
•

paying the current higher interest rates for loan
7
than was the case .at the start of. the quarter. ,r

of these banks was little j, .
the higher earnings must come..;

Generally speaking;-total loan volume
changed

"from:..the year-end,

from more borrowers

paying the higher rates.
term loan written 10 years ago

;

and matur-7 7
Angeles. ;.■
ing about this time probably was paying about 17«% to 2%, for it
7
Austin E. Penn, has been elected'
The announcements /were made President. V In. 1943i the Board ^ was about a decade ago that such rates ruled on term loans; But 1
a
director
of
the
Union r Trust by Frank L.: King, President Of; elected
him Vice-President and : a renewal of the loan would today probably be at twice the old
rate.
■' v
%
; 7, •; •• *•
^ •.*•• •
'J
{
Cwnpany of Maryland, Baltimore, the Los-Angeles bank, following head of the bank's investment
Md.
/:
a meeting of the
bank's board of department, and in 1944 elected
Bank earnings will probably do moderately better as we go: ;
I
/
directors, April 8.
/
him a member of the bank's board / further into 1957. There may well be a tendency for money to be /
i
less tight, in which case rates could stabilize in the present areas. 1
Henry W. Jones, President of
From 1925 to' 1930 Mr. Car- of directors.
4
.
.
the Lenox Savings Bank, Lenox, ruthers was associated with the
• ; • * *
*
Mass. died on April 11. He was New
York Trust Company.
He
The appointment of R. Wayne •
/ First Georgia Securities
7
Form I. L. Brooks Sees.
84 years old.
was Trust Officer with the Union
Fillpot and Walter J. Krarup, as
ATLANTA^ - Ga.—First .Georgia =
*
*
♦
I
Trust Company, Rochester, N* Y.,,: operations officers at the main
SAN FRANCISCO, Calif.—
*

For

•

by the board of directors, and in
1940 was made an Assistant Vice-

example, any

;

Broad

■

^Street Trust Company,;from

Philadelphia,
election of
a

Pa.,

announces

Frederic E. Benton

the
as

member of its board of directors,
^

•

The

and

National

erick, Md.,

capital

Mechanics-

Bank

increased

stock

from

par

value

its

Fred¬

common

$550,000

$750,000 by the sale of
effective March 29.

new

stock,

(75,000 shares,

$10.)
a

1930 tb

Trust

Diego,
Anderof the

bank.
In
January of this year,, Mr.;;
^r* Krarup is Manager ofjihe
Carruthers
joined the
staff of bank's central proof department
California Bank

Trust Admin-

while Mr. Fillpot serves as

capital

stock

H200.M0-

-j

President

King,

California Bank, Los Angeles, has

Newport

shares,

par

value $10.)

from

$4.-

(420,000
'

the

Harbor

merger

Bank,

the

men

the

main

Mortgage '.
in a;
securities
business. Officers are/.
Richard W. King, L. L. Bowman, '
M. E. Littlefield and L. W. Size-offices

with

the

Guarantee Building to engage

enf "ufies.

Mr. Fillpot joined the staff

Corona First National in 1954 as a traihee.

Securities Co.

became

effective

business Fridaj^

the

April

12^

Mri

King stated.

both the 11th and Market Branch
and the main office.
.

Mr.

Krarup

joined

the bank's

ier

the

bank,

was

named

partment.

New

Our

Bulletin

West

Available

End
in

(L.

Teletype—NY

A. Glbbs,

1-1248-49

Manager Trading

Dept.)

Specialists in Bank Stocks

Square. S. W. 1.
Pakistan, Ceykm,

Tanganyika,.
Somali-

Kema,

Aden.

Uganda, Zanzibar, and

Protec;orate.

£4,562,500

Authorized Capital

American Stock Exchange

Brancht

(London)

India.

land

Telephone: BArclay 7-350®
Bell

Burma.

Stock Exchange

BROADWAY, NEW YORK 5, N.

Government

the

13, St. James's

Laird, Bissell & Meeds
Members

Kenya Colony and Uganda
Office: 26 Bishopsgate,
London, E. C. 2.

Head

Branches

Members New York

LIMITED

of INDIA,
Bankers

BANK

NATIONAL

t-.

appointment of Frank

Securities Corp. has been-formed'

more.

Christiana

; f

nounces the

Brooks, formerly with
&
Co., and C. L.

Witter

Brooks.

will continue in their pr'es-

\r Jl.
*
J. T. Van Dyke, President of transit department in 1953, and in
McKmney, President the Newport Harbor Bank, was 1f,cc
,
. . ..
•
of
The
Fidelity Bank & Trust named a Vice-President of Call- 1955 assumed his present duties fcs
Company, Indianapolis, Ind., an- fornia Bank, H. L. Hetrick, Cash- Manager of the central proof dei

to
engage
in / a
business. Partners are

Irving

120
r«

with

Building

securities

common

formed

Both

Teller

Frank

fhe FiRtV,NanOonl^nt de' Mar' W"h California Bank" Since that time, he has served in
Akron,
Ohio,
increased
its shlrehokie'rTo^bottr'bankr^nd
,he c'ommercial' departments at

April

Russ

Dean

Securities Co. has
offices in the

Brooks

been

Chief

branch.

,strator*

announced

;;

1944. ,He was , a branch of The First National

member of the staff of the Lin- and Savings Bank of San
c°In Rochester Trust Company Calif, was announced by
from 1944 to 1956 and advanced to son Borthwick, President

' the position of Vice-President.

Farmers

Citizens

Capital

Paid-Up
The Bank

-_£2,851,562

Fund

Reserve

conducts every

£3,104,687
description of

and exchange business. ■ .
Trusteeships and Executorships *
also undertaken
'
,
j...
banking

Volume 185

Number 5630

...

The Commercial and Financial
Chronicle

(1825)
tion

depending

I stances

main

By DR. SAMUEL D. GEHMAN*
Head.

which

Physics and Electronics Section, Research
Division,
The Goodyear Tire & Rubber
Company

here

able with research and

tomers
of

and

progress.

shows the interest and

tion

the

awareness

long-range implica¬
tions of atomic

devel¬

energy

the

water

com¬

are

participating
in

some

phase

radiation
atomic

search.

re¬

radiations.

the

Co.

This flexible

Rubber
re¬

cently coris

Gehman

r u c

radiation

cent to its main research

building

in
is

(2)

the

cross-link

initiate

produce

use

vul¬

or;

the

ir¬

must

new

synthesized

rubber

service

environment.

arrange¬

for

components

radiation

for

need

optimum

the

5th

ference

dustry

talk

Dr.

Annual

National

Board's

products

rubber

relatively

are

The

production

radiation

merization

evaluated

resistance

are

Energy
Philadelphia.

the

There

has

signed

for the ABC Radio
Network.

light

been

first

results

reported

the

secure

radiation

cheap

rubber

sources.

intense

industry

is Doremus & Co.
"The

radiation
can

available

for

concurrently with the
application research.

th^ fabric

member,* 'But
link in

weak

compositions

the strength

the

fabric

far

In¬

to radiation

the

resistance

damage is concerned.

Joins Keenan &

ness

•

■

•

■■, •

compiled from the fi¬
world each afternoon after

the

closing of the New York Stock
Exchange.
• ['1 ?.♦>■' - i ,2'! ■ ■•.
■;
.

radiation

Earle C.

Clarey

(Special to The Financial Chronicle)

PORTLAND, Oreg,
May

Minneapolis, Minn.—Norman M.
Gaynor is now with Keenan &
Clarey, Inc., McKnight Building.

business

from

•

j the packaging.

you

COMPARISON

EARNINGS

the full

No crushed

loose tobacco in

cigarettes—each

pocket

fresh, firm, and straight

or purse.

•

;

3 MONTHS ENDED MARCH 31

the firsts

NET SALES

*
NET INCOME AFTER TAXES

;
;

Look to Philip Morris for the pace-setting pattern. Look to
Philip Morris to bring more pleasure to more smokers everywhere,,

PHILIP MORRIS

INCORPORATED

;

EARNINGS PER COMMON SHARE

811

was

formerly with Walston & Co.

days things are different in the market place.
*
•
drugstores, tobacco shops, supermarkets, and vending machmess
sales have responded to
products with the "buy me" built in
Philip Morris pioneered the colorful Flip-Top Box to bring
pleasure of each of its richly blended brands.;

offices

Earle C.
securities

Southwest Sixth AvenUe. He

—

conducting;/a

These

May: Opens *

(Special to The Financial Chronicle)

AND PACKAGING FOR YOU ?

Financial

news

nance

in¬

and

pre¬
sents the latest financial and busi¬

extent that
abundant
radiation

become

Business

News," with Don Gardiner,

ma¬

only to the

and

Financial

(ABC Radio, Monday
through Friday, 5:55-6 p.m. EST)
effective April
8
on
Mondays,
Wednesdays and Fridays. Agency

graft polymers.
potentialities here for

applications

and

News"

se¬

new, special purpose rubbers.
These promising prospects for

the

"The Business

sors

unusual
are

terialize

The investment firm,
making ita
use of network
radio, spon¬

poly¬

WHATS IN PHILIP MORRIS PACKAGES
.

Cur¬

sponsor "The
Business and Financial News'* on
the ABC Radio
Network, it was

especial

intense

being explored. ;/Many

rubber-fabric

with

before
Industrial Con-

Program

Paine, Webber, Jackson &

tis

elastomers

catalysis

reactions

which have

curing

products of the rubber industry

Gehman

Atomic

Conference,

"Fin. News"

relatively large radiation dose re¬
quired. Improvement is also de¬

damage. The possibility of adding dustry. It is important that de¬
protective
agents
to velopment of such sources proceed

beneficial effects of intense radiaa

possibilities

easier to realize

be found to reduce the

radiation

susceptible to both damaging and

*From

has

in /an

meantime, compounding practices

large volume of radiation ex¬
periments to be carried on simul¬

industry

will
can

appeal

entirely

the rubber

which

radiation

interesting

many

ways

polymers and
synthetic rubber

prolonged

permits equipment and ex¬
periments to be set up without
remote manipulation and enables

and

Vulcanization

polymerizations

graft

varieties of

tomers
use

ment

lab-

/:■>.oratory adja¬

products

types of radiation resistant elas¬

well

surface

The

has

new

the

source

elevator for

taneously.
Goodyear Tire i The materials
and

filled
The

cave.

above

and

resistant elas¬

for special purposes.
It is possible that

storing the

source

water

for

Co60

shielded

raised

panies

bottom
a

All

rubber

provision

curie

large

opments.
of

2100

especially important
(1) the develop¬

radiation

Vulcanizing By Radiation

three

research

sirable in the physical
properties
elastomers
and
improve of radiation
cured
vulcanizates
physical properties of plastics
announced
by
George Comtois,
but this may follow
automatically Vice-President in
(3) the application of radia¬
Charge of Sale*
if the dose can be reduced.
i

and

at Akron, Ohio.
One of the out¬
standing features of the installa¬

radiation

canize
the

Current activity with radiation
research in the rubber industry
there

the circutn-

dose." The

with

radiation

tion

development

upon

the
of

are

deal

ment

Goodyear physics section head briefly reviews some of the
promising prospects resulting from the application of intense
radiation in the rubber industry. Dr. Gehman is
hopeful that
cheap and abundant radiation will become increasingly avail-

and

lines

1957

1956 '

$80,189,588

$72,218,615

2,556,860

2,530,436

90.80

$0.79

The Commercial and

Financial Chronicle

.Thursday, April 18, 1957

(1826)

£6

industry.

chemicals

Capital Problems in the
Agricultural Chemical Industry ;

Retain

SIIAXAMAX*

By F. C.

Salt Manufacturing

President, Pennsylvania

described by Mr. Shanaman, is
such that much must be done to improve it. The Washington
manufacturer characterizes the industry as still immature,
capable of improving itself and its statistical data; and out¬
lines the industry's economic base which shows little room for
price concession due to several inherent practices. Author
believes better business judgment would prefer risk of a sales
loss rather than carry excessive inventory or grant too liberal
terms; and explores need to reduce manufacturing costs, raise
price, eliminate low margin items, alter formulations and install

tural chemistry industry, as

there doesn't

time

such

industry

seem

will be

which

the

will

contend

•

distortions,
to

season

season,

and for

longer periods
time

business

subject which we are to
x

the

ability

repay

the

build

plus-interest;

meals

luck.

assurance

job for tomorrow. Elim¬

Obviously,

dis¬

multiplied by turnover and which
is 1 readily - portrayed - by ~v the

formula in wihch certain rounded
figures are used for purpose pi
illustration:
V x
*
>

solesence,

net»

tributes

results

the destruction of the

usual

the

after

proms • during
the years when
rapid write-offs are being taken,
but regardless it is a hallmark of

quick and easy portrayal of what
we are returning from our efforts
and
on
our
capital
employed.

motive in times such as these, con¬

good

truth

these

practice in this business to

take

Supplementary charts which have
been' prepared may
provide an
insight into what may be wrong
and where the areas of correction

such

write-offs

the

comr

is involved with newer type
pesticides. As plants and products
pany

become obsolete,

might exist. We know, of course,
that
decreased
costs,
increased

ally

additions

would

engaged in

company

employed

we get exactly
but by so doing

prices or otherwise increasing net
and subtractions have been made
sales and reduction of the capital
it won't at season's end. No plug for the required will greatly assist in
difficult there
hurt to review a few fundamentals professional manager is intended, making improvements which may
is
a
regret¬
and perhaps a few related facts. although it is intended to point be sought. With regard to capital
table
scarcity
out that in recent years, industry
The "Yankees" and the "Bums"
necessarily employed in the agri¬
of facts and
Fred C. Shanainan
seems
to be accepting the prin¬
cultural chemicals industry, these
are
doing something similar at
statistics to
ciple that someone must be re¬
this time of year, so we will not
improvements are assisted greatly
use as a back drop from which to
sponsible for satisfactory return
be
conspicuous by indulging in
by better inventory control, re¬
judge how well our own com¬
on capital necessarily employed.
duced accounts receivables, better;
some Spring Training ourselves.
pany may be doing, or how well
use of generated
By way of preparation, a few
cash, and more
the agricultural chemicals indus¬
Different Fluctuations1
careful consideration of additions
might be appro¬
try compares to allied industries, ground rules
Maybe
at
times
it
appears
or
to industry at large. At the priate. In the first place, agricul¬
facetious to refer to agricultural tc^ fixed capital.
moment we seem to be at some tural chemicals industry wherever
chemicals as a business because of
Problems Peculiar to Pesticides
used will refer to the pesticide
point in one of the valleys so
its unpredictability. It has such
Before highlighting our industry
typical of our peak and valley portion of the chemical industry.
Second, return on Investment will peaks and valleys of activity, in¬
business. At such times, manage¬
through the use of charts, it might
be
before
taxes
and will refer cluding profit and loss, that only lie
ment appropriately becomes more
appropriate to make a few ob¬
the
fearless
or
misguided
are
return on
all of the dollars
conscious of simple standards re¬ to
servations which may be- of in¬
expected to be found among our
employed in the conduct of our
terest. if not pertinent. Bigness in
lating to sales, profits and capital
associates. To use the term loosely,
employed. While in one of these business and not just to a portion
agricultural ' chemicals, ; in - one
of those dollars. Third, fixed as¬ therefore, we include agricultural
form
or
valleys, emphasis on sales volume
another,
is sometimes
chemicals as a business and in
alone
will
not
guarantee satis¬ sets, unless otherwise identified,
desirable, but is not necessarily a
doing so submit that' it can be
will
be
undepreciated and un¬
factory profit. Furthermore, ex¬
and should be judged by yard¬ panacea for what .may be wrong
written
down
dollars.
Fourth,
nor will it necessarily accomplish
pansion of plants and broadening
administration charges
will in¬ sticks, similar to those appl'ied to what
may
be desired. Further¬
•An address by Mr. Shanaman before
businesses
or
industries. more, without more than mere
clude costs of research performed other
matters

capital

agricultural
chemicals,
particu¬
things begin to happen because the same answer
larly at the basic producing level,
regardless of well-told hard luck; we would be disregarding twd can have unfortunate experiences.
stories, the
use
of scintillating rather important facts: first, costs The quantity and quality' of re¬
sales personalities, or the admitted and their relation to income frorrr search
being conducted by the
disruption in the love-life of the sales and. secondly, the import chemical industry, internationally
bugs, those with money invested tance of capital employed versus speaking, is such as to make the
in agricultural chemicals will, by. sales volume. This formula can be factor of obsolesence extremely
necessity, compare their earnings a workaole tool, if we seek a important. It can adversely affect

years

done, nor as good as most of us
like to do. If there is any

well. To make

return on

;

Capital $500,000,

b y;; id f v i d i n g

in short order profit by capital

profit and

fectiveness of capital necessarily
employed? Our capital, particularly that identified as current
assets, is large by accepted standards of other segments of industry,
and, therefore, it must be'of real
^concern to us. Simply stated, percent return on capital employed is
the percent of profit -from sales

Sales $1,000,000

Net Profit 8100,000 x 100

day

too,,., if -Sales $1,000,000
also gives
10% x 2 equals 20%
that there,

garage

the "Gossip system which, supported the
Mill" has been claiming that our theory that the sales "force tasks
care
of sales, production people
portion of the chemical industry
schedule
and
manufacture, and
has not been "doing so good" or
between them, somehow, a profit
at least not as good as we have
several

For

difference whether the concern

with

money

upon

cuss.

wide

cause

percent

that

say

return on investment is a reasonable yardstick for measuring ef-

using accumu?
within a

and

these standards and
"AEC's" can be
with what is available to them
and to an extent
elsewhere. Recognition of profit
reviewed within the meaning of
difficult,

touched

must

increased invest¬

other

variables

with

car

are

inate

comparisons may.

and the extent

.of

the

reasonable

investing money,
or

generated

being

three

means

reasonable

money

ments. Whereas

make an analysis or to'
comparisons. The number

make

sordid term, but io, most of

and

the necessity

tion

that

are

point
of
view
requiring . the
responsibility by one individual
for making a profit on the capital

involves recogni¬
for earning

distribution

ours

to be any best

businesses
from

can

you

funds

lated

more company, but it is axiomatic that
operated each will want to know what the
professional management return on capital will be. Jt makes

observation

better management.
In

that

hoped

Although not what for those
rule, it is lending money,

ground

employed, whether it is the man¬
ager's Pwa capital, or capital: en* ace.omplish certain objectives in
the internal affairs of a company;
trusted to him.
r % • '
No^laim is. made to^aiithorghip a common denominator does exist
of
the
idea
that
the object of and basically it is the factor of
busihess, ai?d this could include, return: the very thing we are disagricultural chemicals industry, is cussing. From the business experito make a profit. To some it may ence all of us have had, is it not

and fascinating agricul¬

The earnings return in the exciting

equity and earn dividends; or.to

Washington

of Washington, Tacoma,

] V

Company

offered

claims,

orderly retreat
rapidly than the

decline of

the

usu¬

company

so more

executes

and does

product or products in
place. Not to do this

market

the

more than a
the funeral—it be¬
comes
a
participant in the15 cere¬
mony.
As a product reaches the
end of its life cycle, orders are
scattered, irregular, and turn more
and more toward unprovability*

makes

company

spectator

also

has

observed that

been

experiencing

when

agricultural chemicals eco¬

our

nomic

are

frigid

diversified

dollar

each

from

turn

climate
cool to.

with respect to 'new capi¬
In

tal.

the

down-swings,

inclined

one

company,

agri-f

for

requested

cultural chemicals is judged more

critically

before

than

activities.

other company

its

ability to earn in comparison

with

Outside

the

National

San

sociation,

Agricultural Chemicals As¬
Francisco,* Cal.

purchased

agricultural

These

yardst icks

may vary

some-

consciousness

ob-

word

the

enthusiasm

ficult

i* » s sc

avsTttar:

show

willingness

come

great

any

vest, and borrowed money

KAKDOH jmUlCUlTUlttl CimaCAl CCMHUff

MTOW on

doesn't

capital

in¬

is dif¬
under

except

2 2 2
■■

«.

(typlotl of Agricultural ctumid laHuatay)
r

f of Towl Ut*'4

(Coav«rl«ca of Ajriaiitur.1 Cbatlooli vlth Jcaw lodi»tr!«

•

ZztmbrtM . 195= J

Ap-lfilOorM. Taa-.bt-t *ia> -ibtmr

l?3o}

I
x;
xT
x

IX
s

•

'
'

■

c ■

X'
■4

X
•VlZf.

lov««rae:t 1, gram Mm acjreoutiot

«ni lUblUttM,

fATX*

fidiflctloo.

AOHCTliOTAL

CB3COAL

RECSIVA3LS3

COW* lit

ludleatm by

WWW on iFVisyMDrr
to

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VOQS

PAaXR

AG. CEOU

Volume 185

Number 5630 .The Commercial and
Financial Chronicle

(1827)
terms

and

interest

seem

what

happens

reflect

these

chances
alone

rates

knowledge of
during one

bilious:

periods.

that

are

which

cost

The

reduction

tomer

has

sold

the

products

for

perience

which the sellers'
goods have been
used.
In such cases

heavy

requited and

also,

prices

guaranteed

are

reported

against

|to

decline.

■

costly
and

ures

cause

discloses little

extravagant

room

administrative
it

evident

of low ratio

for

overhead

judge the effect

that

be¬

and

little

coal,

steel,

other

lumber,

segments

perhaps

the

chemical

industry,

Complete

immaturity in

must

admit

of statistical data.

the

This is

our

way

broadly

true of all

groups within agricul¬
tural chemicals. It is hard to
de¬
cide whether we are

suspicious

one

another, do not keep rec¬
hate to admit
it, or just
do hot believe in the
disclosure
of basic facts and
figures to the"
ords

and

extent practiced

by contemporary
it to say, the

industries.

Suffice

great

famine

data

tremely

impossible,
talk

and

advice

and

turn

consider

pocket costs
for

current

many

the
and

and

particularly if
high
out-of-

substantial need
fixed

capital.

instances it

months

(2)

investment after; four
the

receivable.

sellers

Whether

books
we

(3)

and

the

"ball

about

our

Making
chart

freight

park"

return

Profits and
;

In the

tors

readily

may

ourselves

creating

such

the
the

use

earning

probably

cents

sales

every

leaving little to

J* and provide

profit.

for

70-

each

sales

costs

Total

: V"

capi¬

high, amounting
between 70 and

average

cents

dollar,

fixed

cover

tal required is
the

Rubber

less

sales before tax. Outcosts are

dollar.

The
■

major
and

investment is not in

equipment

assets

but

namely

.inventories

^accounts: receivable.

packages,

mediates
j

inventories, there

terials,

and

finished

nature

the

found

are

'•

and

Jfc

large

Further¬

•

finished

outside

•

pro¬

ducers'

warehouses
in ^bonded
warehouses and in the warehouses
of resellers

stocks.

consign
made

rials

owned

some

level

certain

material

the

case

instances

mate¬

the sup¬
or

con¬

may

>•*.'

thereby
extends
the
consignment to the dealer or the
grower

•
.

centrates

•

products

raw

concentrates and
raw

•

consigned

labeled

consigned

plier of the

»
•

formulators

cases

their

from

vV
Y
r

•
^

be.

inventory

[

placed in resellers' warehouses is
not only consigned, but the owner

pays

the

reseller

storage

j The evident effect of
tices

increase

pf dollars tied
increase

sold,

the

and

the

cost

such

fee.

♦Vv

prac¬

number

inventories,
goods

considerably

increase

the paper work for the seller.
In

the

able

case

accounts

record

our

receiv¬

abnormally

high when compared to the aver¬
age of all
industries.
Terms of
30 days
net are the
exception,
rather
made
30

than
at

day

the

time

rule.

terms

Invoices

shipment

but

carry

frequently, by

agreement, payment is not
quired
for
60-90-120
days,

lohger.
voicing
60-90
time

other

instances,

actually

days

re¬

120

in¬
for

delayed

days- beyond

shipment, and after mak¬
ing use of such liberal credit, the
buyer still has 30 days in which
to

pay. ~

the

invoice

time

make

price

against decline.

has

been

seems

the

but

We
of

fortunately,

not

which

shipment,

industry practice
which

matters

worse,

price

Among the other products which Cyanamid chemical research

helping to improve

are

Textiles

...

and application are
Drugs and Pharmaceuticals
Paper...
Surface Coatings
Adhesives.
Metals

Plastics

...

Leather

...

Petroleum

...

Food

...

Explosives. For further information, call
30 Rockefeller

•.

also

have

Plaza, New York 20, N. Y.

;

"crop terms"
in the past,

growing.

C FAiVAM I J>

but

This

practice

usually calls for invoic¬
ing at time of shipment but pay¬
ment is not required until the
end
of

the

season

and

after

the

cus¬

HELPING

AMERICA

MAKE

write AMERICAN CYANAMID
COMPANY,

protected

widespread
be

■

BETTER

USE

ITS

RESOURCES

•:

:i'

fre¬

seasonal

business.

inventories

goods

inter¬

which

the

<•>*•«,.

ma¬

labels,

case

concentrates

because

more,

the

accumulate

amounts

and

raw

are

products

quently

plant

current

;

others.
we

admit

poetic license in
factual

Continued

of-pocket
90

are

chart

some

absence

Better

Costs

em¬

evaluate ■[, and

compare

talking

is today.

Engineering-News," Sept. 5, 1955,

•■I

is that better than

guess

of; them

than 4%

capital

in an article
which appeared in "Chemical
and

pro¬

of national formula-

case

our

50%

described

support

when
as

invest¬

of the Dupont type

use

for

ployed

industry

ment.

McKinsey
and Company, we feel
reasonably
certain that the
following data are
in

percent of

return

•

particular

•

(4) Before tax

;

some

data

percent of

sales.

assistance

the

percent of total

the

with

general

very

Inventories

cost of

can be assumed
justify if we consider accepted: observation
could be the differ-;
can
be made at this
good credit policy,
ence between
today's costs
a
profit and a loss
point, that many times it prob¬
of money
and low profit
mar-:
although it has been surprising,
would
be
gins ; estimated to be prelavent ably
better
business
to find that
industry .records are
throughout the industry. Let lis judgment to risk the loss of a
woefully inadequate to guide sales, assume
that there are some en¬ sale
rather than carry excessive
managers in evaluating profitable
joying much higher' profit mar-"
inventory or grant such liberal
products or areas.
Investigation gins than average.
The picture terms that
they would be diffi¬
tempered with a measure of ex¬ for them
doesn't look too gocd cult to
duplicate with institutions

that

assets.

agree

with his arithmetic or
not, it is
with the fact that each
of his- sales- safe to say that uncollected re¬
dollars requires an investment
even
of ceivables
on
high margin
between 70 to 75 cents.
Long-term sales have tremendous effect on
credit along with
practices used both ;investment and return on
for credit extension are
hard to capital necessarily employed.: An

Receivables

net sales

almost

such

with

ex¬

concession,

factual

cross-section

some

vided

not

prepare

However,

excellent

subject

assigned.

makes

difficult

price

for

room

fo!r

margin

upon

investment

soft

lowed.
that

their set up for the
purpose of lending
a' sale'
money.
credit' terms are al¬
Charts
One
analyst has stared
(1) Current assets as a percent
product showing a 40%"
of total assets.
i •
provides only
10%
re¬

proced-: when

fixed assets,
give
improvement
the agricultural
Little Price Concession
chemicals indus¬
reduction-in capital
Room
try has little to gain by
employed may come hard because
pricing
If the foregoing observations to cover
of competition.
overhead. *
'V)
V are a reasonable economic
base:
If we attempt to
An average
manager in this in¬
compare our-; from which to take
off, it would
selves
with - industries
dustry V is .: unquestionably
such
as
seem
to indicate
faced
won't

desired

return

t;*

•

data

page

for

The Commercial

and Financial Chronicle

Thursday, April 18, 1957

(1828;

fi#<

uranium-235

burned,

per-

It is
even
possible.that some reactors
will produce more fissionable material than they burn.
The fact
is that in power reactors which do
not use highly enriched uranium
a great deal of piutonium will be

haps as little as 200 grams.'

the Atom

In Peaceful Use of

.i-

F. LIBBY*

DR. WILLARD

Atomic Energy Commission

t'ommissioner, United States

the observation that many "unborn uses of
the atom are chemical ita nature/' AEC Commissioner invites
chemical industry to participate more fully in developing the
Concluding with

made.

is in atomic
weapons and no country has yet
developed the technology of burning piutonium for atomic power

of the atom* Dr»

uses

fields and reviews programs await¬
ing further chemical participation. Envisions an important
combination of chemical manufacturing and atomic power
whereby, for example, roentgens will be used as raw materials.
,

will help give us

chemist

The

can

kilowatt hour and

mill per

atomic

will be his job

hold

.'^■■■1

things^

1 i

c a

lated

for

that

at the time

accident.
tions

ble

mind

chemical cri¬
teria

expect

of reactor,
reactors

.actor

pro¬

sider

w e

which

■«

premiums.

T*
a P
i ikku
Dr. wsii
WilUnt F. lJbby

and/or ura-

fabrication

possible to recycle fuels with
only a small amount of deconbe

lamination.

■>

This work sounds heavv

vievv^of

I think

the experience in our

ttie

lutonium-239

to burn,

forth

various devices tested to prevent
the escape of piutonium m case of
accident

an accident.

the

reactor
experience in
reactors has been

Value of Plutonium

vaiue oi i mionium

a given size

The principal area where

the chemist may play a role in re-

power

Judging, however, from

with

experience

operating

temperatures,

that the situation is
one.

we
a

at
see

can

Very hope-

ducing reactor hazards is probably
the

p0wer

cttrntipgc

must have as-

reactor

core

itself

insured

and

couia

the fission prod-

that

strontium

radioactive

uct

that

ence

have

university medical center which is
currently giving 900 to 1,000 treats
ments per month with its cobalt60 unit as compared with some 300
per month with con¬
high-voltage X-rays. All
of these present savings and ben¬
efits through;the use of radioiso¬

treatments
ventional
,

services

would

one

cannot imagine economic

■

has been an indispensable one —
the Manhattan Engineering District never could have operated
without du Pont and Union Carbide and Carbon and others, arid
the AEC could not have carried
its great; responsibilities for the
nuclear arming of this Nation
without them. The whole country
is grateful. The patriotic motivation did it for us and we know
that we can always call on the
chemical industry for help m national pmprppniis anH in matter*
.lonal emergencies and in matters
'
r
ti
r..i tt„-_
of the Atom, we must depend in
part also on other considerations.
Nevertheless, the AEC has been
successful in interesting some of
the chemical firms to engage in
this
see

than to get the chem-

We have announced

Lee Chairman of

;ndpx " The purpose of the new
D0iscy as Announced this past
Fund for
February is to give further encouragement to the* development 3 Barnard College has announced
the appointment of
C. Lee
*of prjvate atomic energy indus- as Chairman of theCharlesof 1957
Class
trv by giving reactor operators an
Parents' Fund.
:
T.¬
acSured means for recovering the
Mr. Lee is a partner of George
Valuable constituents which remain
the spent fuel elements D. B. Bonbright & Co., members
nfipr thpir rPmoVai from the re- of the New York Stock Exchange
and the Chicago Board of Trade.
3Ct0r
"
"
' . .
.. . .j. chemical His daughter, Mary, is a member

important work. Our job is to
that it is done and there is no

other way

fhe^iSis5^^!! a^p^opriat^price

ana

ine

one

normally

Barnard

■' i/i

l"d'

industry will pursue the possibili(jes of usjng atom;c ladiation for
the promotion cf tc furtherreacchemical this
tions.
^ We desire
.....
program

We know that

fi\^Vobalt'will'"hkelv^be

radioac-

needed,

and bope t0 be able to supply this
need though I do want to empha-

cize that such radiation is in many
potentially much cheaper ff
squired as a by-product of atomic
p0we»\

contributed

Gifts

con-

If the strontium

ate

strontium-sulfate
strontilim-sulfatp

Wduld be
the

fallout

there
thprp»

great damage, since
would be much

then

tion in the fiolri of atnmin power
tinn in fhp field rvf atomic nnuroi-

that the uranium-235
furnished by the U. S. Atomic En-

stipulate

Commission will not exceed
mals.
It is not
20% in concentration except for
can see, to imagine the advantages
limited amounts to be used in reto be gained from increasing the search and development test reprobability
of
strontium
being actors.)
.,
u
produced in such insoluble forms.
xn most power reactors that are

less

available to

plants and anidifficult, as you

the

1957

Parents' Fund will be used for the

library and classroom
building at Barnard.
The gifts
from; parents of the senior class
will be used for a room in the li¬

proposed

tne

bear

brary

"1957

name,

Parents' Fund."
A

campaign is currently under

way at' Barnard to raise
for the new library. The

$2,000,000
construc¬

We thus see an example of what tion of the building is the first
during the may deveiop into an important
step in Barnard's plan to expand
j

liv pYnnnmir?

ergy

five-year period. You will
gain some idea of the magnitude
of industry effort required in this
procurement program when I tell
you
that private industry .had
been nmnlvintr to
koor supplying +n. the AEC only
a
200,000 pounds per year. The original solicitation was for proposals
to supply two million • pounds.
However, when the time to negotiate contracts arrived, the AEC
requirements had increased fivefold. Ten firms submitted proposals. The final award was split

over a

rnn^Sahle. wav to eo
^ TS L fnr phJ.

is plutonium-239, which in itself als to supply zirconium metal and
is fissionable and therefore burn- all of the by-product hafnium

Bilateral Agreements forCoopera-

insoluble

at Barnard.

of the class of 1957

ways

envisaged the Commission solicited propos-

the form of strontium-carbon-

1,500, or 25%
normal
1,200, to help in

the student body to

were

produced in

dition, then it would do much less
harm when it fell, for example, on
farm land.

their

power

able as a fuel. Most power reactor
designs operate with uranium containing less than 20% of the isotope 235 on the average.
(The

w£ich

medicin£.

there is a trerftl
cobalt-60 in prefer¬
to high voltage X-rays.
We
learned recently of one large

than The
of

enrollment
example,

ror

affectgd. /.

towards using

bpnere.

persons

other ways in

are

example,

Fob

building up a nudear

that renrocessina

^o the

.There

radioistopes are helping

industry because the op-

craters cf reactors

The role of chemical industry
,n the warlike uses of the atom

The cost of uranium-235 is such

our

production. reactors

ful

savings
;

firm numbers

setting

extensive

lower

know how
plutoiiiurn-239-to produce

toe: moment; we do not

other-tasks-also. We

The possibility of utilizing plutonium as a fuel in atomic power
piles certainly exists. The necessity of doing so is not so obvious,
Let us consider this for a moment
to illustrate how vital is the chemist's role in the Peaceful Uses of
the Atom.,

minimal.

physician. However, with the
thousands of cases of hyper¬
thyroidism annually, there appear
to be 'possibilities for significant
the

dustry, establish the basisthe same
we undertook at for firm
time to

piutonium will be generated. At,

many

oi reactor naz-

moment

atomic

a-by-product,

not
of

being that of

surgery

versus

apy

radiother¬

choice, the decision of

iV,_

of
/ =

compounds must be prepared and

are

probability of
accident, for

our

necLsLv

plav in the matter of reactor haz-

There

VJUlc

Y Radioiodine,
however,
is
necessarily
the
treatment

%£*$££££££oce°sorl

The chemist also has a role to

be true.

id ft~iafl$Lr Sel
^ ' T At0n,iC
r.
;
■
tlon of the sPeclal nuvleai mate- Commission has assumed, very flpfprm;nin(, wWhpr nrice^ to be potential benefits, v
ftcmitoa™fuel etemens justifiably^on the basis of past
Many of the unborn uses of the
is a chemical procedure,
in addi- successful experience in analogous
/pn£:rmahie the Commission is atom are chemical in nature and
tion, the introduction of pluto- situations, that we can and will
of the fact that it mifiht await your interest, attention* con¬
mum as a fuel into atomic power learn to do so in time.
It has
to make allowance sideration and approach. It will
reactors is a very important step therefore set a fuel value of $12 £1 Lnitional posts not exneri- pay you and like the other oppor¬
in which the chemist must play an per gram in keeping with its en- pnr.pH hv thp riovpmmont hut nor- tunities I have mentioned will un¬
doubtedly bring you closer to un¬
indispensable role. From knowl- ergy content. I hope the chemical
seen
opportunities which we in
type. ;v
edge gained from atomic weapons, profession will prove us right!
Contracts with private industry our ignorance cannot even vaguely
we understand how to make pluYY;V'YYt-'
will be negotiated individually to describe.
*?.
Y;'U * V ■i-iYY '
tonium metal parts, but it is not II. The Problem of the Peaceful
U'il
''Y;"...
so clear what the irradiation ef- . < .
■ ,Atom ... t • ■ ,n
: establish firm charges for the if.-",.

atomic power.

ards

cases,

...

hospital. In severe
however, the reverse may
the

stay

shorter

patient because of a

to the

is' successful' char^eF for the Pressing of spent,
^
f-f?fuel elements. As yoq realize, a
and. £ 11 "ses uramum of mod?st t
of timing is very imennchment, enormous quantities

it is possible fccts and changes in crystal structo say that it sounds heavier than tures, especially at high burn-ups
it is, and that close chemical at- may amount to, and it is not at
tention to the problem shows that all obvious that piutonium with
the principal difficulties are radi- its toxicity can conveniently be
ation
and the strictures of the used as. a fuel.
A very considpoisonous nature of piutonium. erable task remains for the chemThere are presently no other ways ist to establish the basic chemical
to accomplish the separations than forms used in manufacturing pluby chemical methods; therefore, it tonium. fuel elements and for procwill be the chemist who performs essing them after the irradiations
these tasks so vital to economic are completed.
Many alloys or

net

savings in out-of-pocket expenses

atomic power

plants,

production

ir.

by about $100, rep¬

cases

resenting for the most part a

nrp

form suitable for re-

If experiments ort pyroprocessing and remote
are successful, it may

chemical

successful bidder had also developed a short-cut process,
We are continuing to explore the
feasibility of extending to lndustry an invitation for proposals for
processing of fuel elements from
non-government reactors.
Such
processing constitutes an integral
Part of the fuel cycle of nuclear
reactors; It is hoped that these
chemical facilities will be ready

the

lower

topes are small compared to

235,

piutonium

cycling
_.

•

Some Other Tasks

There are

unburned

average

duction ^ about 30,000 kilograms
of

considera¬

should be borne in
by the designers of the reand by those who will set

separate the

33
nium-233 in

kilowatt of electricity

for one year corresponds to one
gram
0f uranium-235 or plutoj^ium-239 being fissioned. There-

...

solutions and

some

speaking,

Seven firms responded with iooividua) and joint proposals. The

radiotherapy appears to
cost of treatment for

iodine in

which

uranium

Let us connumbers.
Roughly

probably is not true.

of any possible

These are all

insurance

ducing fuel el¬
ements or fuel
to

but, in the long run, this

select the most
p p

the type

minor way.

very

seem

tonium

•

together
chemically, t o
a

ons

that the atomic weapbusiness could take up the plu-

may

duction of feed materials in the
form of uranium hexafluoride.

tion, i.e., the homogeneous type o coun^ry about 70 million kilowatt der to provide a base load during
leactor; ,wlM !?ava
years, if this were all generated the period of transition, the Cornamount of the long-lived'J5?. "J'from atomic power, the fission of mission will furnish to industry
products-name'y and the other,^?* 70 000 kjlogra^s 0f Uranium- ment-oWned reactors.
radiostrontium gbbut
fuej elements _from governand radiocesium,
^
tn a»»Hin onnniir
most woreisome types
a
In order to encourage and re¬
would be involved, with the pro-

makes

power

economical.
to

Needs Chemists

what

The Atom

except in

in various important

engage

the only known

piutonium

for

use

Libby delves into the crucial
role of chemists and the many tasks only they can solve m
order to make possible economic atomic power. Indicates where
the AEC has succeeded in interesting some chemical firms to
peaceful

At the moment

government-owned plant.
Con- dio-isotopes, it is possible to iden¬
tractr for 500,000 pounds of beryl- tify some areas in which savings in
the
monetary
sense
are
being
liuni metal, at an average cost of
made. The cost of removal of the
about $47 per pound, have been
signed with two firms which are thyroid gland by surgical means
establishing new facilities to pro- varies widely, of course, but a
rough estimate by one of the lead¬
duce this material
Similarly we solicited proposals ing hospitals in the United States
from private industry for the pro- indicates that the use of radio-

-,_1

vmf

intn fuel re-

S make use of
}Linton Tn^ther
beein to think

^pp'
L Sprlki
g* Isotopes—Consider materials.
toentgens &s x«w this wonder-

development. Isotopes are
ne^rly paying the way ri£ht ^°^^e. have just completed a study
which shows that at the present
time American-industry is making
savings approximately $400 milhon annually in the application of

College's

meeting the increasing number of
high school graduates. Mrs. Arthur
Hays Sulzberger, a trustee and an
alumna of Barnard, is the over-all
Chairman of the campaign.
-

Y•
Mac Robbins Co. Formed
(Special to The Financial Chronicle)

-Mac
been

formed

Co., Inc. has
with offices at 760
&

Robbins

Brady Avenue,- New York City, to
engage

Officers

are

securities

business.

Mac Robbins, presi¬

dent; and Ida Robbins, secretarytreasurer.

Murray J. Ross Opens
(Special to The Financial Chronicle)

hazards.
Reactor

hazards

depend

some-

MIOSES
Chemical

they count additional nsa^^s and
sioned.
Thus,
benefits in the field of medicine.
235 atom fissioned
kilogram of uranium-235, on
,
No attempt has been made to
average, makes 500 grams of plu- $14 million per year. - put a dollar value on human life
tonium. This yield will vary with
The Commission has also turned or health or medical services.
design and it may be that some to private industry for the produc- Nevertheless* with an estimated

uranium-238

Society,

Miami,

Fia.

April

io,

for

every

ernment a total of 2,000,000 pounds
one of zirconium metal per year for
the five years, at an average cost of

uranium-

NORTH HOLLYWOOD,

Calif.—

Murray J. Ross has opened an of¬
fice at 12622 Sarah Street to en¬
gage
was

in a securities business. He
formerly with California In¬

vestors.

'•Volume 185 ^ Numbcf 5630..

The Commercial and Financial Chronicle*

(1829)

No Serious Downturn

U. S. Bank Resources Reach AlhTime

This Year: Roberts

Rand

First National City Bank official's

Combined

ratiocinative

optimism concerning
the general outlook is based par-

ticularly

the economy

'•

strength of consumer,

ernment.

and

provides

business

basis for

serious

business

The

'.V'

The

gov¬

demand

anticipating

downturn

this

shows

the

First

National

City

Bank

New

York, de¬

clared in

Dec.

$252 billion

•.//—'

the

Directory reveals.

31,

1956, U.

totaling

banks made

almost

$112

Pennsylvania
and

Minnesota

with 686.

„/<"

from

facturers

<Fla.,

^.George B. Roberts

The

view

branches

loans

the

trend

There

na¬

10 years
ago.

demand, particularly in three

major sectors of the economy.v

proved

citeduthe

fact

that

shown

record

retail

recent

'■

i-,

outlook

and

stores,
to

the

their

Federal

7 per cent

gen¬

most

have

the United

Lumir

Garrow

been

Carroll &

foreign countries.

and

Beran,
Wiley

William

added' ¥d* the

Whita

staff

Co., Equitable Building,

billion

1955.

over

Expanded demand for

MuU

di £ iv."f

57'rV-

a.i).

day

over

the

year.

;!
-

of $91

million in

total

our

keeping

wages

prevailing rates in the industry,

•

borrowings. At

•*'{

h/i

*•;•'}

.8)

.'.'1

Av.-U;.

as
V y>l

and salaries competitive with
a general wage;

year.

; ".**■'

x.r;;

Hill.

■

Museums, libraries, colleges, hospitals and
serving the needs of many people were among
receiving regular Standard Oil dividend checks.

other institutions
those

and domonstratos the splendid support and
cooperation of

s«rv« our customsn,

plant and equipment during 1957,
increase of 6% over the record-

•-

i-i-V'"

employees.

our

THE

breaking 1956 outlays.
Mr. Roberts concluded

though the economy
entering
periods

one

nothing

the

inconsistent
advance.

the
i

CONSOLIDATED

STATEMENT OF

For tha Years

picture

idea

the

FINANCIAL:

there

present

with

crest

now

EARNINGS

1956, 1955 and 1954

Sales

and
.

ofierating

1955

Form SBK In v. Corp;

$1,781,317,827

$1,660,343,193

.. .

$1,911.540,141.

...

taxes

neous

1954 collected

customers

'".

for

909,613,641

tization

Kiser

and

Walter

-A.

day,.

per

A
*w'»

•

52,652,573

'I" ;"49,622,854

■

;

products' sold,* 4.
barrels iter day
v/.. i." '<
.

93,943,392

87,607,924

,v'

77,195,905

Retail outlets server!.
Natural
''

gas

sold,

....,

51,575,756
11,987,179

11,301,377-

43,290,000

;

barrels

day

Beverly Drive, -members';0f the
New York- and Pacific
Coast-Stock '

Exchanges. Mr. Maguire

was

for-;

Qu-inCy .Cass^Associ¬

ates.

a
•

'•>).*>

•"(

10,080

9,764

1,855

i,763

'.j

•i\' ix:.' tit
yr

1-'

•

i:VV'UI/fU

yoJhJf
642,343

■

•

r"
.5

•

601,482

WlM'TQ 'Kl

579,500

■

703,500

J'W

',«

655,800

'V.

'f.

29,471,000

45,935,491

TRANSPORTATION:

664,046
29,890

640,145
30,140

1,264,370

.......

'•

657,700

:irnfJ

•

593,855:

30,710

Oiiy

in.
,

1,189,068 >

(Mi!

1,077,803

336,930

32L765.

310,142

Pi[x?lines built, miles.
Pi[>elines owned, miles
.,

(year end).

250

315

........

17,480

17,400

17,550

156,400

146,200

c-:>

*1,163

140,500

687,095

1.228.709

3.406.021

Pipeline traffic, million

$1,762,108,431

$1.656.836.187

81.3.59.382.079

"'1

249,564

•

sarid cubic feet per day
per

62.119,970
9,368,824

■

thou-

Crude oil sold,

36,478,000

Befitted

of emergency

\
.try

274,083

MARKETIN0:

''44.552,531
;

amor-

hit

48.48

' /

Tanker and barge-traffic,
% million.barrel miles,..

149,431,710

157.117,828

117.156.766

■

!;'t"

.t.ti'i

94,870

f"».

Copies of the 1956 Annual Report

ore

pvpilahle

■>

ilt-'*;

■n- * t

V*.:

request as,long,V>>t™i supply

legs. Write Standard Oil Company, 910 S. Michigan. A'jei,

Ckicjigo.idj liliaaut*

143,200
52,010

(yeajr end).
Employees (yea/end)....

it*
i

Stockholders

Wages and benefits
'.I'-'yt : V£i

• 4
.

barrel miles

PEOPLE:,-

Co., 393 South

"■

■}.

hj&r"
■

1,973

Crude running capacity, ».
barrels |>er day (year
end)
end). ::V.v\'.V;..v.-.-.
ig
q y ' ' r -*m

V'-V

4":

rels

-Mr

■

\csri

10,451

•

liquids processed, bar-

+Y-Xx V
'

'v*

gas

68,380,000
284,300,000-r
2,187,000,600
1,574,000,000-

294,855
i-

.....

Crude oil and natural
•'

merly with

M AN UFACTU RINGr

-Vv

.....>

Net earnings

101,150,000

■■■

48,780,000
-4A
2.083:, :

229, IKK), 000
2,332,000,000
1,701,000,000
iv'-44v.- 51.46

per

wells owned, net
(year end),

''1

interest in net earnings
of subsidiaries

Ma-

•

3.73

55,970,000

dy.:('

Gas

553,307,658

Minority stockholders'

guire have been added to the staff
of Daniel Reeves

(year end).

794,^12,096

561^31,812

'r ••"*.

Total deductions.

53.71
*■'

Interest expense
Federal taxes on income.

Calif.—Su¬

2.403

Crude oil and natural gas

ment cofits, and loss on
retirements and aban-

The Financial Chronicle)

••

in¬

HILLS,

849,891,953
,' »

597,244,936

donrnents

$
*

from

facilities,

Daniel Reeves Adds

share.

.........

Depletion, amortization
of drilling and develop¬

have joined the staff of Boren &
Co. Securities
Brokers, 9640 Santa
Monica Boulevard. 1 ' •. •
n

Book value |>er

govern-

rnenfc^agenciea),

Depreciation, anrl

;

■

day, net...
wells owned, net

cluding taxes araounting to $326,779,000 in
1956/ $288,354,000 in
1955, and .$264,952,000
in

(not

„

117,160,000-

4.81

55,360,000
:
2.307

$1,900,000,000

PRODUCTION:

State, local and miscella-

Bishop and Alph N. Thayer

(Special

vM6.195.654
$1.676,538,847

y,j\

1954
1,677,000,000

i-j 157,120,000;

Oil

ministrative expenses.

BEVERLY HILLS, Calif.—Ron¬

BEVERLY

Operating, selling, and ad¬

'(Spec-'aj i«:The Financial Chronicle)

san

$1,813,954,015

,st

•

32,636,188

$' 94,070,000
$ :29l,ikK),00()
$2,425,0(K),000

.,.......

liquids, barrels

Purchased crude oil, pe¬
troleum products, and
other merchandise....

With Boren & Co.

4.33

...

Capital oxjiend i tures....
Total assets „•,, . .

DEDUCT:

Weiss, Secretary-Treasurer.

ald G,

1.49,430,000

Net worth

21,312,568
..

Fairchild.
President; Harvey P.
Wallace. Vice-President; and Elenore

busings
'

$1,890,227,573

Total income

(

DENVER, Colo.—SBK ! Invest¬
ment Corporation has been formed
with.-j offices # in the ,< Centennial
Building to engage in a securities
.James

1,814,000,000

Earnings retained in the

reve¬

/.V,

other income.
.

are

...

outstanding share....
Dividends paidf
i .H
$
Dividends paid per sharef; $

1954

Dividends, interest, and

Officers

...

nues

-business^

1955

$1,912,000,000

■

Net earnings i»ee average

1956

\.v

(Special to The Financial Chronicle)

FIGURES

Total income
Net earnings

prolonged

1956

temporary

adjustment,

■long, flat

may

those

STORY

that, al¬

358,600,000

94,130

)■

.■

•-

put into effect

during the

end,

year

STOCKHOLDERS NUMBERED 143,200 at
year end, the largest in our
history. We have stockholders in every state of the Union and in
35 foreign countries.

rtfUcts constantly improving ability to

of 6 per cent

increase

<(4%;

EMPLOYEES AT THE END OF 1956 numbered
52,010, of whom thou¬
sands. are Standard Oil stockholders. The
loyal service of our
employees is one of the main factors in our continued
progress. In
line with our
policy of

;

total, which included, as was pointed out
nonrecurring net profit of $9,235,000 from the sale
of an oil
property interest. Excluding this nonrecurring item, our 7
1956 earnings were about 1
per cent higher than last year. Per share
earnings were $4.33, compared with $4.81 the year before. While

new

borrowings amounted to less than .13 per cent of total assets,
compared with a peak of 21 per cent in June, 1949.
*

This rmcord of progress

work, drilling and refinery expansion.
Capital expenditures for 1957 are expected to
(be up about 20 per
cent. During the
year, $30 million principal Amount of our con¬
vertible debentures were
called, and an additional $57.6 million
were
voluntarily converted. These were the principal factors in a

out

per

CAPITAL EXPENDITURES FOR 1956 totaled
$292 million, compared
with $230 million in 1955 A
good part of the increase went into
additional leases, geophysical

new

time,

1 -i

share. These
dividends were valued at $80,041,000. Dividends were
paid in 1956
for the 63rd consecutive
year.
"
;
4
■.
; .
-

at the

-"a>;

the market value on the date of dis- .v
fourth-quarter dividend in Standard Oil

gas

■

•/>

-•)

Company (New Jersey) stock, anjpunted toi $$.31

products
liquids,

our

throughput of crude oil and natural

per cent. Our dollar volume of chemical s&letf increased
by
21 per cent to a total of
$17,500,000.
• r*' i
V:»
;
■
*
r1
*■'
.-,v -s
...
tv
NET EARNINGS FOR 1956 WERE
$149,431710. This was $8 million
less than 1955's record

expend¬

•>

":tS fit'

DIVIDENDS IN 1956,
including
tribution! of the special

5.4

planning to

are

all-time

":"-o

pointed

increase

record

SALES set

expenditures

high records — both in volume of products sold and
value despite intense competition. Total sales
volume
increased 4 per cent over 1955 and 84
per cent over just 10 years
ago. Total value of sales increased 7 per cent over 1955 and 174
.per cent over 1946. Total income increased to
$1,911,540,141,

itures for public works and other
purposes., Third,
that businessmen
$37

^earnings were indicated because of our increased investment
higher volume, our industry has been Tess successful than
others in
getting repaid for higher wage and other costs through
increased prices. A factor in
reducing 1956 earnings was heavy
depreciation charges and starting-up expenses for two
plants. The
consolidation, of nine principal subsidiaries into
four, which was
completed in January, 1957, also involved substantial
expense.
However,' these consolidations will si
significantly improve efficiency
and
reduce, overhead.,

in dollar

personal

but also in state and local

over

brook,

bank.,

every

company in

reduction

positions.
Second, gov¬
spending is also on the
rise, not only in national defense

spend

;DE N V E R, Colo.—Elmer Ben.

Directory., lists

trust

(Special to The Financial Chronicle)

better

During the

averaging 642,343 barrels

vol¬

financial

other

'*•'

and

reserves

required

ernment

and

Four With Carroll

Production, Refining and Sales for 105&

REFINERY RUNS, which
actually were held below capacity much of
the year because of the nation's excessive
gasoline stocks, showed

surveys

consumers

mostly optimistic' about
eral

published

country.

State" and

14? 275 baiiiks

■

Sectof#] of Strength

spending at

the

have

and

At year'end the

and

Dec.

year we added 42'million barrels to our:
after replacing the 108 million barrels we
produced. • "
company's proved reserves of erude oil and natural
gas liquids were 2,140 million barrels. A
subsldiary has been formed1 ;
to
engage in exploration and production in Venezuela and is hopeful
.of acquiring concessions from the Venezuelan
government in 1957.
The company also is
drilling wells in Cuba and Jamaica. • K
v
7

"v?>

another,- but the strength of .fi¬

The

high. At the end of the
year, which was a successful one in
development of new production L
and reserves, our net
production was about 316,000 barrels per day,
of crude oil and natural
gas liquids, including about 10,000 barrels *'
per day in Canada. This is an all-time
high fbr our company and
marks about, a three-fourths increase over bur
production of just

appraising the
in Mr. Roberts- view, is

First, .he

Were

1956,

present
<

PRODUCTION in 1956 reached

the-soft spots which reflect
^inventory; adjustment or shifts in
demand from one type of
purchase

ume

first

was

In most

not

during

in the

information

1,450.

Rand McNally & Company, in 1872
when there were only 6,097 banks

increased

respects, 1956 was a good year for Standard Oil
Company
(Indiana). Production, refinery runs and volume of sales all
showed
increases.
V':
'■ V' M ;
7

show

■.

Three

rectory"

up-to-date

American and foreign
banking.

fJLrd.

Record Highs in

tos/.

The real issue in

nal

requiring

organization

with

compared

Mc¬

firms,

companies,

other

,.aiid Subsidiaries Report

the

evidence that the rise id
gross
tional product has halted.

with

1,909

insurance

and

TS®IRr.

of weak¬

areas

generally sidewise.

outlook,

California

branches

The "International Banker's Di¬

$19.8 bil¬

toward

continued

;

Roberts

continued

the

hotels,

Directory shows.

strong spots. On bal¬
he said, the strong sectors of
and.

California's

consolidations, and

31^1^56, there

my.
■*

re¬

picture,. Mr.

business offset the
ness

trend

bank mergers,

business

•M

both soft and
ance,

number

banks,

(INDIAN A)M.'7

con-

April

1957.

'*<

se¬

total

from

rose

distributed
Rand

nPalm Beaeh,

that

$67

other

is
by

year

fourth

runs

New York has passed

Directory
each

with, Nally to
railroads,

is *v third

In-

"slitiite's

business

decreased

The

"f entioh

stated

securi¬

billion

tion.

na¬

with

address before

7/ -■■■i'Ki'ir-

and

capital funds

tM.; 'the1 American
f;;?CottOn Manu¬

$72

loans,

lion to $22.3 billion.

Dec.

billion,

banks

798,

for

Although total deposits declined
million,
to
$228.4
billion,

increase,

As of

number

933,

funds

$800

''".V
the

total of 957. Illinois is second with' twice

the

billion

date

same

also

are

the

i .?"*

curities by $900 million.

little

obtain

tion

billion

ings of U. S. Government

$254 bil¬

with

: r

ties

re¬

nation's banks reduced their hold¬

1956,

than

compared

Loans

31,,

than

Mc¬

•

the previous year.

over

•

resources

rose

1955,

Roberts,
of

Rand

for

that

banks

lion,

Vice- Presi¬
dent

increase

all-

Directory's consolidated

capitulation

over

George

year,

United
an

Nally "International Banker's Di¬
rectory."
:■
■;

demand in three major sectors of
t-

the

Texas continues to lead the

according to the first

edition

the United States, Alaska and
it
also lists officers names:
£iwl
HawaiiIV fewer'thanSr ytiftf * provides a financial
statement for
earlier, while branches increased each bank, along with a
great
from
7,508 to 8,025.
deal
of
supplementary informa¬

McNally Directory Shows

resources

States banks have reached
time high,
1957

the strength of final

>'■

81,290
if

'T i

132,800

122,100

51,520

330,800,000'

C. i-H)

■

51,270
323,100,000
.,4;^

>•'

q".Dividends paid" include the'Value on this Company's bo<)ks 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,
'*
'
"

itl

.tut

consultants both within

analysis,

and without the-company,

Service

Future Rail Passenger

able

Can Be Bright and Exciting
By WILLIAM R.

New York Central System

ts!

tation

handling long-range transpor¬

serve

two-fold formula

problems and private ownership are the

service between cities 600 to
•

now

ing

some

the many rea-

for

the

about

future

of pas¬

senger

service,

would

The
tion

state

senger

serv¬

years

come.

Then

dwell

William

ices will be in
the

fut'ure

this

because the railroads will be creating a service where its productivity is at its highest. In pro¬
viding this service all of the cornponerit parts of the public will

transporta-

rail

country,

I see it,

length

more
many

still

stroboscopic

this

pic-

larger

York
will

centers

operation
Such
an

City.

changes

New

operation

exclude the handling of through trains to the present centers of the cities served,
will

approximately 50
to 75 miles, according to the size
of the suburban area.
Y Y
/ox

range

^nn
to 600

1 he 200

"tailored"

the

carefully

the

demands

public.

operated.

This
unit

....

.A1

balanced to the most efficient
of the

such

ton,

areas

large

New York

potential.

Washing^

and

New York and

Buffalo, DeChicago; thereby tying
together a large market on each
and

troit

end

which will

ice.

This

contrast

support the

concept
with

concept

the

branch

serv-

in distinct

present

line

riav

"ill

service

dooms

no r tin g
porting

itself

self-min

o d era tion
operation.

Overnight

Lrwrw C?oaaS
600 to

service

between

y':

Broad-

jfc f«

i.-Qx/Ai
.

•

service

will

°ISleep!ng kCT
designed sched-

make full utilizasleeping hours for

lrl accePtaoee of the fact

tne

♦An

future

address

pattern for travel

Mr. Main before
Railroad Management Seminar at

University

but

noted,

-"will

the

some

new ag^
be

nation's

this

farmers

year," the speaker
The pesticide will be

predicted.

produced for application in either

Re¬

pesticide

thp

will

dusts

or
sprays and is said to be
economical to use. It is reported

citrus

grapes,

Michigan.

Irving Wasserman

some

the
the

Co.

Avenue,

engage in a

with

New

offices

re-orient
so

lulose

„.

York"

City to

nntir

Txat„

the

been

bas carefully examined
ices,

with

the

help

its serv- Investment
research .Center.

Mile

Company,
•

■

High
Y

Textile..

with

not

fully

been

preliminary

has

produced flame

The researchers

glow-resistant cloth by start¬

ing with standard textile material,
Mr. Schwenker reported. He said

they performed successful experi¬
ments with cotton fabrics rang¬

4.6 ounces to 9

ing

from

per

square

ounces

yard, viscose rayon of
yard,
samples

about 3.6 ounces per square
and

All

linters.

cotton

Institute,

Research

Schwenker

Mr.

project, which

The

new

"permanently
resistant

was

Modified

technique
flame

cellulosic

produces

glow-

and

fabrics

•

reduce

flammable

building

"certain

into

elements

products"

the
that

Flame-resistance is imparted to

series of chem¬

the cellulose by a
ical steps

which result in the sub¬

stitution of bromine or iodine for
some

the

oxygen-hydrogen

fragments of the molecule, accord¬
ing to the .scientist."'He added that
"excellent
glow resistance" has
been

achieved

molecule

adding

substances

certain

the
con¬

by chemically modifying the cel¬
lulose chain in such a way as to

New York Central, for example, been added to the staff of Allen

but

professor

Fabrics Are

(Special to The Financial Chronicle)

slow, costly and frustrating
DENVER, Wlv^. — ^
Colo. —Claude R.
v
« c
u.
situation but a necessary one. The <MaeHogan and Harry Singer have

have

Research

sponsored
by the Office of the Quartermaster
General, Department of the Army.
the

(Special to The Financial Chronicle)

I believe that the railroads have S235 Wilshire Boulevard. •
been on the right track in discontinuing many, of the unprofitable
With Allen Inv. Co.
services as has been
done in the past few years. It has

Princeton,

Paesu,

worked

BEVERLY HILLS, Calif.—Arn-

passenger

reseach group

Textile

the

flammable

brushed rayon and

were
given two laundering cy¬
J.
Dr. cles, using both soap and ueterof or¬
gent,
before they received the
ganic chemistry at Princeton Uni¬ llame test.
.
versity and research associate at

old Moses and Del Negri are now
with Daniel D. Weston & Co., Inc.,

flare-ups—they

who
at

Eugene

and

facilities

and

afterglow, said ihe

Institute,

Wttc.

1 WO Wlttl..WCStOIl

fiberboard and in¬
promised by the

cellulose

leader

test4
indicated that no ap¬
preciable losses occur in fabric
strength."
ing

chemist,

Bennett & Co., 6253

W-fi

also snuff out

Smith and William H. Stephenson
m-m+H Ronnotf Xt Co
fWxl
utyj

materials

are

hazardous

highly

and

evaluated,

fire-fighting substances in
structure
noc
only

The

for even very light¬

occurs

chailis.
The mechanical
properties of these new textile

Hotel.

the

Only a small
weight (10 to

rayon

of Cel¬

reported by Mr. Schwen¬
ker at the meeting in the di Lido

HOLLYWOOD, Calif.—Thomas
£ Edwards Louis Fine Robert F.
are now

12%)

weight

research

avoid

and

fabric

yard) can be
glow-resistant

equal facility.

increase

^Flame-resistant wood pulp prod¬
such

heavyweight

square

per

flame

with

mole¬

backbone

fabrics produced

fairly

'made

Such fibers as
consist of cellu¬

lose, the chemical
plants and trees.

securities business,

to keep in tune with

their

Chemistry.

cotton and rayon

(Special to The Financiai. Chronicle)

want

into the position

yard)
uuuees

F. Schwenker,

told the ACS Division

Jr.

suoerior

succeeding, in get-

cellulose

properties, 'Robert

511

Join Bennett Staff

industry is striving, and
extent

v
retardant
chemical

of "the

Audrey A. Weltz has formed A. sulation, also

} J
l / 1;ail0n w in a superior H n
Rnulovarri '
form of transportation under Bollywood Boulevard.
sound economic conditions. The '
,
:
•'
railroad

"The modified

by this means are found to have
good 'hand.'. Fabrics ranging from
lightweight (3.6 ounces per square

cule without destroying the fabric, fabrics such

•

in.

wTth

explained, adding:

properties,", the-speaker

hibiting

flame-

make

witn

the

on a

commercial scale.

changing

has become associated with the
.firm, • Mr. Wasserman formerly
was 'wit-h Bond, Richman & Cos
Msns^cr of the trsding dept.

Weltz

Rayon Fabrics

new

fiber to combat
the
new
materials are
made permanently flame-resistant

ucts,

in thjs picture and

way

fabric,

coating
flames,

•

■

chemical coating by

present fire
textiles which rely on

there is today- Tile railroads have
the nation

Unlike

popi!latlO" ithere )vin ^ an e^en
uum
greater .u.u.e for travel than
future ....
ci

new

meeting.

pPases °1 0U1 living. Tiansportation as a basic and compelling need
will be- fulfilled some way.
Wlth tthe continued growth of our

p,ace

Research Center.

chemical
tire-lignter built right; info the
fiber, was described/ April 9 at
Miami,
Fla.,- at
the ->American
Chemical Society's 131st national

wjoreto e*,?eTsJ" ™a"y

a„

resistant

A. A. Weltz Co.. Formed

economy and toda.\ s
llvin§ aiY extremely dynamic and

t0'SGrve

Mose*

•

Dr.

and

chemists at the Hercules

all

including mildewproofing and rotproofing cotton fabrics

Lohr

ley,

method to make fabrics flamegroup leader of the
Textile Research Institute.
Other advances in chemically
modified cellulosic fibers are described by other chemists,
told of

are

resistant without any

■'J'

i?A.„ac

Todays

report was prepared in collabora¬
with Dr. A. H. Haubein, Dr.

tion
A.

"unusually long-last¬

.Chemists

American btpek Exchange,

the

Dynamic Forces

the changing times.

-This

Reich* & company, . 29 ^road:

picture,

services

A? 1 fUl11 reservation

•

Company,

Reich, &

undue interest in the short-ranee'v
interest in the short-range

etc.

ii1p<?

chemist

chemical

available

Cotton and

way, New York city, members ot

undue

York-Chicago, Chicago-Den-

ver

whole

population from ting themselves

1,200 miles apart, such

J\ew

weight to
longrange transport picture than they
Qpg
giving
present because of

(3)

miblio

^es

which, b.y its very dearth of revonue
potential
and
surfeit
of
miles

the

Built-in Flame Resistance for

>-"'•••/■? *'Y

uniess.

use

Such transpor_-T~
tation would be operated only be-

useful

fruits,

to force changes that may

equipment.

tween

the

ricultural

the

Center.

the

Joins Reich & Go,

;

hands of private enterprise and if
the Federal, state and municipal
governments would give serious
and impartial attention to much
-tk&t is being said and is beings
advocated t°day concerning the ,;
future of the situation. The mexorable laws of.economics are
going

high speeds and few
intermediate stops, with schedules
.

Research

seivlc^ |n not be for the best public interest announced that Irving Wassermah

zone,

meet

travelling

trains

"I" °
mile

will

vice

chemist

research

indicate

Irving Wasserman

this dynamic factor is
the other aspects of

the causing inform our Imng.

generally

and

f J believe that there is a bright- '
body. We have and exciting future for rail pastoday's Transport' senger transport'if' left in the

form

Authority's

•>01

who

Hercules
sults

for the civic

this

according
/ Yy;

shown

have

Named ."Navadel,"

and

ernment

and electronic, that are ours to use
today to make a better tomorrow.

operated by some
Transport Authority or "opera-

for"

far

animals,

ing effectiveness." No damage to
the treated plants was observed

upon

country,
of

Hercules

today's statesmanship in in-;
tegrating into perspective all
™v. mpnagerial. political

upon

being

the

R.. Diveley
of the
Powder Company, Wil¬

and to have

back and ture would be a real help to betthe ter understanding of it, but this

can

directions.

with

action

(1) Commutation service in and

;

William

business in this countrv denends

about

Tests

when

tests

used

was

pesticide to have relatively low
toxicity to man and warm-blooded

scientific report by

profound belief that the future of,;, mite. It was said to destroy not
the rail passenger-transportation only adult mites, but also the eggs,

beleaguered'-'* road is impossible because of the confollowed to. that stant interplay of forces upon it.
-Wv. V In
other
words/- one -should
,'frV
make no broad generalization^ as
Sees Three Rail Services
to the ,/uture
of rail passenger:
In
the
future
rail
passenger transport
without carefully! and
rervices will generally be thought at the^lame time considering all
of as three Distinct and separate of the other forms of transport as
services, based upon a distance well as the ground swell of napoint of view:
tional growth and the inevitable

'is

that

Dr.

extensive

to recommendations.

fruit and

revealed at Miami, Fla.,

was

the

material

tne

compound of economic, socio-

different

Main

YY..-../s.Y

some

future.

cattle

during

against

university agricul¬
tural research centers, the new
bug-killer has been recommended
of
provide a
passenger service
by various state authorities lor
which we all will be proud. This use on cotton, said Dr. Diveley,

and

"rocky

enemies of cotton, citrus

analyses and of electronic im¬
provements here with more to
come, the railroads can and will

ing Y simultaneously
and
oft£n than not pulling in

rail pas¬

what

rail¬

the

activity"

he advised following the normal
heavily losing suburban serv¬ mington, Del., at the 131st na¬
recommended
for
ice by transferring the loss to the tional meeting of the American precautions
Chemical Society. phosphorous - containing
insecti¬
proper civic agencies; and when
'•*
1
Tested for three years at gov¬ cides.
with the aid of modern market

logical and political forces work-

concept

"excellent

April 10, in

when

up,

with

Company research chemist.
pesticide

•

believing

an¬

long-lasting

new,

the

service.

Transport

Other

procedure, and
instead of giv¬

s o n s

sum

fruit

Powder
A

needs and

yesterday's

agricultural chemical pesticide for use on
and cattle is announced by Hercules

new

citrus

cotton,

to be effective in quantities
and decidurang-t
vegetables and ing from one-quarter pound to
It may seem that I have over- have been better served than they ornamental plants, he added,
it one-half pound of active irigredi-y
simplified my "look-see" as to are today, because the nation will also has proved effective in con¬ ent to the acre, depending on the
the future of rail passenger serv- have a superior' transportation trolling cattle ticks.
type of pest and the form in which
ices.
I
have
purposely painted system, the employees will have
Other pests the new agent ef¬ tne material is applied.
the
situation
in
broad
strokes, sounder working conditions and
Dr.
Diveley spoke before the
fectively controls, according to
leaving the many and complex the owners of the companies will the' - report,
are:
leaf-hoppers, society's Division of Agricultural
problems as to how it got there own a better company,Y Y. 'V-# thrips, leaf miners and:a number and Food Chemistry in the S'nelfor later discussion.
In closing. I Wish to restate my of mites, including the citrus red borne Hotel, Miami Beach.
His

reverse

normal

the

"Navadel,"

roads have divested themselves of

1,200 miles apart.

I would like mon carrier passenger

If I may,

job in the future
required of it. Cor¬

Summary

largely what we will become more and more: "Go
make it today, and this is doubly by
train, return by plane," in
true
of the future of passenger other words, an integrated comservices.

the

ticipate tomorrow's requirements
and succeed in either endeavor.

future is

The

requirements of the future may be
provided and maintained. The rail¬
roads cannot at the same time

prescribed by New York Central official to effectuate a "bright
and exciting" future for railroad passenger service.
This is
said to require: (1) transfer of heavily losing suburban serv¬
ices to proper civic agencies; (2) adoption by rails of modern
market analysis and electronic improvements; and (3) integrated service such as "go by train, return by plane." Mr.
Main predicts passenger service will fall under the distinct
and separate groups: civic commuter service; high speed, few
stops, limited service in 200-600-mile zone; and overnight

Bug-Killer
Announced by Hercules Chemist

that it will be;

porate credit must be maintained
so
that the equipment and plant

Director, Passenger Train Service

Governmental statesmanship, in

order

will

that

MAIN*

Thursday, April 18/1357 •

...

New Pesticide

and by

other means is striving to put its
house

Chro.uicle

The Commercial and Finaticial

}

,(1830)

and

molecule
possess

-flame-extinguishing and glow-in¬

taining phosphorus
reaction."
The

have

chemistry
wide

elements

chlorine

similar

involved

may

such
bromine, iodine or
carbohydrate mole--

use

for

adding

Volume 185

Number 5630

The Commercial and Financial Chronicle

...

(1831)

cules, noted the speaker. Carbe-*
hydrates
comprise -sugars
and
starches
^

well

Mr. Schwenker
spoke at a sym-~
posium on "New Chemically Mod-,

James

Kellogg,

,;SAN FRANC [SCO,'Calif.—Ed¬
ward

New Coast Exch. Member

fSpecial to Thf Financial
Chronicle)

Greater N. Y.

ified Cellulosic Fibers" conducted
by Dr. J. David Reid of the U. S.

Schwabacher Adds

Corp. Committee of

cellulose:

III, ...Chair¬

Conde, Wiffard Daggett,

SAN

ald E.

nounced that Edward A. White has

F> Everett, Robert B.
been.elected to membership in the
man
of
the
Board,- New YorkJohnson, Charles W. Knapp and San Francisco Division of
Pacific
Stock Exchange;
Sterling S.
D e p a r t m e n t of
Stanley E. - Sherman have been Coast Stock
Agriculture's
Exchange.
.
Adams, Assistant Vice-President Added to the
Southern " Utilization
staff of Schwabacher
y Research. of
Mr. White, a general
Commercial Investment Trust,
partner of
&
Co., 100 Montgomery Street,
Branch, New Orleans, La.
An->
Francis I. duPont &
Inci; and David J. Greene, David •members of
Co., acquired
other * chemist
of
the New York Stock
the
Southern
J. Greene &
this
membership by the intrafirm
Company, are mem¬ Exchange.
Utilization Research
Branch, Dr.- bers of the
transfer formerly in the name of
Corporations Commit¬
Elias Klein, reported on research
tee of the 1957
Alfred Rhett duPont.
'
campaign of The
which dealt with chemical modi¬
Greater New York
This transfer does not change
Fund,, accord¬
to Hear
fication of cellulose-—similar to
ing of Percy J. Ebbott, Campaign
the status of the firm's member¬
the procedures discussed
CHICAGO, 111.—Shelby Cullom
by Mr. Chairman.
'
*
Davis, Shelby Cullom Davis & ship standing in this Exchange.
Schwenker—to produce a variety
Donald

Chicago Analysts

"fibers "capable of
in

should

they

erties."

is James E.

/Research

;

Colo.—Hilan

affiliated with

now

tain States Securities

New York, will address the
luncheon meeting of the Invest¬

He^

the

•

Analysts Society of Chicago
April 18 at the Adams Room

will

Midland

discuss

Hotel.

Mr.

insurance

Davis

stocks.

the

Yarrow.
new

management o?
Also associated

office is

Jensen, Stromer

MARYSVILLE,

Calif.

—

Gordon K.

Beath. "
Mr. Yarrow and Mr. Beath wen
both previously with Hooker Cs\

Fay.

Two With Walston
(Special to The Financial Chroniclk)

SAN

ler

FRANCISCO, Calif. —Ed v

ward I. Austin and

Two With

ment

Moun¬

Corporation,

Denver Club Building;

have

Walston

Robert

become

Leroy Chand -'
affiliated

with;

Co., Inc., 265 Mont -a
Street, members of th>

gomery
O. Heiken-and Charles M. Kim-!, New
York and Pacific Coast Stoc'c
erer are now affiliated with Jen¬
Exchanges.
Both were former!/
sen &
Stromer, 426 East Fifth St. with Hooker & Fay. '
,

promising

rotprool

commercial

on. a

Co.,
<

under

nue

Paul W.
with the

Fabrics

advances

mildewproof and

DENVER,

cox

laboratories.

Mildewproofing

such

novel 5 prop¬
of this paper

Snowden, also of the

New" Orleans

fabrics

Joins Mt. States Sees.

possess

Co-author

being
applications

textile

office at 329 South Ellsworth Ave¬

9f new
utilized

New Walston Branch

SAN MATEO, Calif. — Walston
FRANCISCO, Oalif.—Ron¬
Kaehler, President, has an-' & Co.; Inc., have opened a branch

:xvxw-!;:

cotton

scale for

uses vas

awnings,'. tenting,
clothing, ironing board

tropical

and

covers

sandbags also
reported at the symposium.
material, which looks and
like

ordinary

produced

cotton,

Such
feels

has

small

;

were;

been

scale

process—known as "cyanoethylation"— which cnemically modifies
the cotton.

lonitrile

By this method, acry¬

(a 4 substance

from natural gas and

produced

used also in

the production
of the synthetic
fibers Orion and Acriian) is united

with

cotton,

but

drawback

been the formation

has

of useless

by-/

products contributing to liigh
erating costs.
;

.'V.„ >;,;f'

op¬
v.\^v.vxv.\v>yxv/>^>/>xy\v///'v:<yv.*.<ayav.vx\^v.v.ry^'^v.v.%vxvx-/vxv;:!v

Norbert

chemist

M.
the

Bikales;
American

research

v. v.vxvx4v. v.

cyanate or sodium iodide,

chemical
with

shorter

uct is very

proceeds

\i/" f/<,

abled

also

has

-x;:

V<'/

' 1
;'

••

•

■<

•

■<

•

'',<*•*

,
•

SMS

-A

■

r' ~

r
,

' to

increased

amounts

This

"no

observed
Mr.
Biproduces a material

longer

character

has

fibrous

any

behaves

and

cellulosic

plastic."

The

plastic

substance

can
be molded, he con^tinued, and it is reported to have

potential

use

electrical

tne

field. Co-authors with Mr. Bikales
Arnold

are

chemical

Gruber,

engineer,

and

research
Dr.

Lor-

Rapoport, chemical research

ence

leader, both of the Amer¬
Cyanamid Company.,
-

group

ican
A

method

second

cyanoethylation

for

costs

reducing
dis¬

was

closed

by H. J. Janssen, chemical
engineer of the U. S. Department
of
Agriculture's
Soutnern
Re¬
gional Research Laboratory in New
Orleans.

described

wherein

dure

bined

with

proce¬

acrylonitrile
in

cotton

com¬

mercury

bath.

"Reduction
cost

was

factors,"

the

said

Mr.

Janssen.

used chemicals because

the

with the cotton.

the
side

reactions
reduced

Mr.

Janssen's

and

evaporation

report

was

with

Haydel

these

with

researchers
the

en¬

engineering aides C.
and

Southern

F.
are

Seal.

All

associated

Regional

Laboratory.

The American Indian is credited with
many
should he added the

True, it

Re¬

was

firsts,
discovery of oil in America.

had

learned

skim oil

Indians, oil

precise medicinal
priate, their idea
But far
is the

use

off certain

use
was

many

streams

that flowed

was

medicine

may

sound

and

although their

always have been

not

appro¬

for tod a}' oil is actually

drugs.

overshadowing its
of

which

w ho, in 1859, brought
long before, the American Indian

through Pennsylvania.

ingredient in

Colonel Edwin Drake,

in the first oil well. But

To the
pre¬

Vix, supervisory, chemical

gineer, and
H.

undesirable

minimum."

pared in collaboration
E.

combined

Secondly, loss of

acrylonitrile' to

was

un¬

essentially

acrylonitrile

Man

"One

elimination of

system for recovery of the

all

Early American

processing

achieved by two separate

of these lay in the

-K

petroleum

en¬

addition

;

salts

chemical

kales.

'fa

'■

vf
H

substantially reduced."/

acrylonitrile,
that

stated.

the

cotton

%■> »

time,'"'he

these

in¬

/Moreover, the amount of by prodUse

'
+

into the; process, tne
combination »of
cotton

acrylonitrile

much

are

*'✓>'*;

-Vli

——11

sodium thio-.

sucn as

vx'x'xvx'x'x'x'x'x'x'x'x'x'x vx'x•'v"*'*"*v
/

XvX%*Xv.<\tt*XvX\X-x*x*x*x4yX4xXcx:xxxs%y.%<vxvX<vX*XvXvX<%v>XvXvXvx*>:\

/ "We have now found that when

corporated

'. V

CyanaCompany, ~ New York, * ue-scribed a technique
which, he in¬
dicated, could reduce the cost of
cyanoethylation. j
salts,

t
,

mid

certain

',/*

form of diesel fuels

petroleum in the form of gasolene.
Here, above all else, Cities Service is proud to take its
place as a leader
the only oil company that now offers
.

totally

new

to power a

growing America

gas

'petroleum in the

every type

car.

Literally fuels of the future, these new gasolenes are the
crowning achievement of the finest men, methods, and multimillion dollar
are

part

refining equipment. More importantly, they

continuing series of petroleum "firsts"

offered and yet to come from Cities Service

for drugs and by-products

petroleum in the form of natural

grades of gasolene for

oil progress.
use

CITIES

...

now

leader in

The Commercial and Financial Chronicle.;.

(1832)

Thursday; April !18, 155/1

Over-the-Counter Market—Indispensable to Investors
And Nation's Business Growth
Continued from

the overwhelming majority of its members

Ttess,

individuals of the highest

are

ethical standards.

just take a swift look at the showcase of
securities that unfolds before you when you veer

from

established there.

tive

Bow Jones averages.

the

Treasury and Local Government
For the very

Mercedes

rich

—

league—there

bond, you'll find what you
and only there. The new¬

■'

that

'r-

•

policies
only a very slight percentage of this gropp
has the slightest knowledge of life company capi¬
tal shares. To tell the truth, because TO % of all
life contracts are written by mutual companies
(with no publicly held shares), most people have
never learned that
they could buy shares in stock
companies. Actually, in the past ten Years, origi¬

McGee,

Har-

all of these

—

first

market

nal

annual level investment in life insurance

and with

purchase and sale only over-the-counter.

share in the forward motion of these

company
some

overseas

sider these British

expanding earnings. To buy them, how¬

ever, you

Among

have to enter

the

Dutch,

Now

over-the-counter order.

Phillips

Gloeilampen

some

life insurance market for the

and

'■*

,•

Interested.

Over-the-Counter Securities

any

For latest

stock

Wi maintain

Bank and Insurance Stocks

trading markets

U 77
"7 7

Trading Department

NEW

70 PINE STREET

& Beane
YORK 5. N. Y.

Offices in 108 Cities

".'"1

Railroad Securities

7. 7 7'7',7"77VV7

o7;7":7

information,

Merrill Lynch,Pierce Tenner
U

;■

Utility Securities

Industrial Securities

in selected issues of

Public

these pages?

prices, quotes,

simply contact—

past 15 months may

■.

ii v

who have been watching this

-.-A

•

of you

\x- 'H
JW

105 million Americans have life insurance

British Motor

Northrop 4s of 1975; Douglas Aircraft 4s of 1977;
Consolidated Edison 414s of 1972; and Phillips
Petroleum 414s of 1987, to name just a few.

Kerr

importance of life
of life. More than

but

enterprises is over-the-counter. For example, con¬

W. R. Grace 314 s of

following,

capital shares would have produced
perfectly amazing capital gains.'Merely by
lodging, for example, $1,000 in the Lshares of
Franklin Life, Lincoln Life, Travelers or Aetna
in February 1947 (ten years " ago) would have
created, without any additional investment, capi¬
tal gains of from 500% to 1200%. And all of these
shares are (and always have been) available for

can

1975; General Dynamics 314s of 1975; Bethlehem
Steel 314s of 1980; General Telephone 4s of 1971;

gaining stature,

an eager

entries: Borax Holding Ltd.;
Corp., Ltd.; Rio Tinto, Ltd.; Vickers
Ltd., or Rhodesia Broken Hill Development Co.
Ltd.
These are all fine companies, well heeled

fascinating hybrid flourishing

and

Life Company Stocks

apprenticeship over-the-counter.
Especially in the past thre^ years there has de¬
veloped a broad American interest in foreign
securities. There are some amazingly progressive
corporations abroad, whose future prospects are
quite intriguing; yet the only way in which you

entire

ill

power,

Of course, you recognize the
insurance in our American way

Chemical, Schering Corp., E. J. Korvette,

served

twilight zone between debt and equity. In
history of corporation finance there
have never been so many big major issues of con¬
vertible bonds as in the last two years. Just look

'■'i

Favorites

power

Oklahoma Natural Gas

and

subject of bonds, consider the

at the breadth of selections:

as:

Lab;

exciting field of elec¬
tronics some of the most
interesting, long range
situations simply have to be appraised (and ac¬
quired) over-the-counter.
;

British Petroleum,

tecatini,
shaw

in the
the

Instruments

Electric Co.—all these have been

ed; Royal Dutch, Argus Camera (since merged),
American Potash, Columbia Broadcasting, Mon-

Corporate Convertibles

—

had in mind such issues

borne

via the $64,000 Question, was a
over-the-counter performer before being list¬

earning

star

counter.

convertible

inspecting the unlisted entries—many of
offering vistas of romantic profitability. We

prestige, earning

its

the very

the

them

stocks has the Over-the-Counter
Market served faithfully and effectively for years
as the
proving grounds for shares which later be¬
came listed favorites.
Revlon, which "revved" up

largest classification of
bond issues, the governments, is traded each day
in multi-million blocks, almost entirely over-the-

has been

Aerovox Corp.; Air¬
Burndy Corp.; Collins
Radio; Electronics Specialty Co.; Electronics As¬
sociates; Hycon Mfg.; P. R. Mallory: Sprague

Proving Ground for "Listed" j

of tax-exempts is, of course, the
turnpike variety. There are a couple of dozen
large issues to choose from here, varying in price
from premiums on New Jersey and Pennsylvania
issues, to rather heavy discounts on some of those
obligations where some gap exists between ad¬
vance
projections of traffic and revenue, and

While still

trading creates the market on a "when
This is a vital service to investors,

Equally

est major genus

course

market

our

While the

over-the-counter. So in this

want oVer-ihe-counter,

And of

alluring sections of

levels.'

the tax-exempts. This

actual results.

Canadian Bonds

i:: ■ i

;

Struthers Wells

Corp.

Common
'

7:7- ;:.;

The

fl;

j||"

Common

T. L. WATSON & CO.

CORPORATION

Established 1832
members

•

* J-'

./'•

New York

Philadelphia

Boston

Pittsburgh

Cleveland

■

Valley Mould & Iron Corp.

FIRST BOSTON

Ii'-'
la

avail¬

issuing companies. It
provides -the technique for market stabilization
for the underwriting firms; and it very often
gives investors the opportunity to buy "converts"
before broad public acceptance and popularity of
the issues has impelled them to higher price

over-the-counter
investment in a
Southampton School District bond, a N. Y. State
3% bond, a Port of New York. 3% obligation, a
Chicago Transit Authority 394% coupon carrier,
revenue

are

unlisted markets.

position of Gen¬
eral Electric, Sylvania, R. C. A. and
Westinghouse
in this area is well known, the more
perceptive
and far seeing wing of the investment
fraternity

investment bankers and the

lions of securities, is strictly an
affair. Whether you propose an

toll road

our

Interesting Electronic Issues

relates to electronics.

issued" basis.

municipal market, with several hundreds of bil¬

or a

Many of these issues were orig¬

prices, and during the days or weeks in which
subscription privilege remains open, over-the-

counter

Bonds

the mink, mansion, and
are

Some

One of the most

inally offered to stockholders at especially attrac¬

concentrated contemplation of the

able in American dollars in

Their basic dollar value is

out over-the-counter.

Let's

away

Unilever N. V. shares (stated in florins!

These, you will immediately recognize as qual¬
ity items; and although bonds of this caliber
usually wind up as listed securities, they all start

first page

"Chicago

San Francisco

. ,

New York Stock

American
,

BROAD

Exchange
Stock Exchange"

ST., NEW

Telephone WHitehall 4-6500

YORK 4,

Teletype NY 1-1843

Volume 185

Number 5630

...

The Commercial and
Financial

Chronicle

(1833)
say that

cycle

ended.

nothing has happened here

—

that this

ica

phase of capital gain in life equities has

Very well.- How

is that
assump- •«

correct

tion?

True, many issues were bulged
by the zeal
buyers^ many of whom were
entering this mar¬

ket for the first time between
1947-1953.
shares advanced

inordinately.

But

some

does that
deny the share advance potential
suggested by the impressive amount of new insur¬
ance
being written month by month?« There is
nothing in the recent lull in life equities to
sug¬
gest that managements have
deteriorated, that

book values will not
advance year
that cash dividends will

creased. So reexamine the

today, particularly

surance

relates to

life

shares of

ers

only

one

just

stockholders, but these

never

stocks

century

or more.

Morgan & Co.

those

doing

(branch)*banking business

such

a
as

tables appearing
hereunder, we
discourse on the difference
between the

and

Over-the-Counter

benefit of those who
the

all

renowned

course

the

the Counter Market.

J. P.

Bank of Amer¬

OVER-THE-COUNTER
DIVIDEND

Upjohn

PAYERS

for

7- ■■,:

10 to 173 YEARS

com¬
.Cash Divs.

bond

No. Consecutive

write on quite end¬
issues, and the over

12 Mos.to

«.

Retail

Electric

Transformers, radio, TV
Acushnet Process Co
Molded

rubber

SURETY

CO.

WOODCOCK, HESS, MOYER
123
&

S. Broad St.,

CO.

•

See

and

WILMINGTON, DEL.

44 WHITNEY

NEW

CO., INC.

AVE.

HAVEN, CONN.

650

South

Company's advertisement

Details not

t Adjusted

complete

page

3.4

122^

2.2

17.

possible longer
for stock
dividends, splits, etc.

SCHIRMER, ATHERTON

CO.

Hartford, Conn.

TEMPLETON

Spring St., Los Angeles, Calif.

PHILADELPHIA NAT'L BANK BLDG.

WALDMANNSTRASSE

ZURICH, SWITZERLAND

record,

Continued

49 Pearl St.,

PHILADELPHIA, PA.

2.70

marine

Teletype NY 1-1248-49

MITCHUM, JONES

Mississippi Valley Bldg., St. Louis, Mo.
DU PONT BUILDING

t0.95
•

insurance

Philadelphia, Pa.

Casualty, surety, fire

DIRECT WIRE CONNECTIONS TO

50 Congress St.,
Boston, Mass.

0.1

6.1

AETNA CASUALTY &

YORK 5, N. Y.
Bell

•.'

EXCHANGE

6.7

0.05

*20
.

MEMBERS: NEW YORK STOCK
EXCHANGE

products and Golf

balls

LAIRD, BISSELL & MEEDS
BROADWAY, NEW

0.30

Corp

Inquiries invited in all Unlisted Issues

Telephone BArclay 7-3500

1956

2.00

Abrasives

Acme

Preferred

STOCK

1956

Paymts. t*
Dec. 31,

CHRISTIANA SECURITIES CO.

AMERICAN

31,

sporting goods

Abrasive & Metal Products..

Specialists in

120

1956

tion

Dec.

Based

OVER-THE-COUNTER SECURITIES

Trading Department, L. A. GIBBS, Manager

31,

X Yield

Quota-

The record could
go on and

Common

Dec.

Divs. Paid

Abercrombie & Fitch

solid and almost
unassailable hold

Extras for

Years Cash

amazing range
quality securities, but individual
companies

which have

Appro*.

^Including

7',

BANK & INSURANCE STOCKS

WHITE

the

Consecutive Cash

but we'd get tired
listing all the items and
you'd get bored reading. So
why don't we just
wind this article
up by saying that
despite all
the glamor and
public relations scoops scored
by
listed securities, the
Over-the-Counter Market is,
and remains,
many times as large, and presents
to
diligent investors not only an
on;

are

for

Over-the-Counter Market functions.

30,000 share issues traded
regularly in the Over-

fabulous retail

SCHIRMER, ATHERTON

Market,

not conversant with
how

are

could of

lessly about

From big single
as

Remarkably Steady Dividend Payers

buy; but you
place — over-

office wholesale credit
institutions such

TABLE I

and Transmoun-

;;

listed—even though
many have paid

dividends for

listed

Now

they hold

present

stockhold¬

probably be

the-counter.. You
may list your richest friends
bank

Difference Between Listed and

with five
in units at the rate
of $156 for

4500, and
$700,

sells at
.

local bank.

Farther

from 250 to

mon

Well,' to get a bit statistical, there are about
14,000 commercial banks in the U. S. Most of

buy (or sell) them

counter-argument
Over-the-Counter Securities, let us know.

$100 bond. So what
happened? The issue
caught fire and the units were bid
(2/28/57) 184
—over-the-counter! Unlisted
drugs are fabulous,
Eli Lilly has in six
years increased its

perceive that the shares of these institutions
(commercial banks) are
top-drawer investments.
Fact is,, if you were to
jot down the four most
financially influential citizens in your own com¬

can

common

each

these have
capital shares you can

by virtue of uninterrupted
dividend payments
ranging from 5 to 173
Please inspect this
list; and if you can
think up
any real valid,
years.

Following the

golden for their shareholders
only as recently as Feb. 13,
1957, Trans Can¬
ada Pipeline offered
publicly in the U. S. its
5.60% debentures played back to back

porch or a play room to our homes. So
all patronize commercial
banks; and most of

their shareholders

cash

Pipeline Issues

tain. Both have been

screened

of them would

and

thrift accounts; and here
many of us borrow to
buy a motor car, a deep freeze or to add a

one or two

We're glad you

Lines—Interprovincial

important, of even greater
impact on our daily lives is the commercial bank.
Here we have our
checking accounts, many of our

munity,

North, everyone
has been excited
about the
progress of the Cana¬
dian Pipe

■!.

major shareholders in

security buyer?

ing over-the-counter.

in¬

While insurance is

is
.

Oil and Gas

The "Elite" Bank Stocks

Arizona, there

wide choice of these
most elite investments.
Now you
may say at this point that the unlisted
market has
special merit for those interested in
municipal and convertible bonds,
electronic, bank
and insurance
shares; but what does it offer to
the diversified

Everyone knows that oil and gas
pipelines have
been
amazingly successful ventures. Well if
you
want to
buy Tennessee Gas
Transmission, Trans¬
continental Pipe Line or
Texas Gas
Transmission,
you could only become a
shareholder by purchas¬

regularly be in¬
Over-the-Counter Mar¬

shares.

Bank of

Over-the-Counter Trading

not

ket

Valley National

asked!

and

year,

page

Financial Chronicle

The Commercial and
34

...

Thursday, April 18, 1952

(1834)

ble

Reporter

Governments

there is nothing sure
that this announcement will come

going to do a great deal
in either direction as- long- as the
uncertainty of the projected re¬
funding offer to holders - of the
maturing F and G savings bonds
is overhanging it, in the opinion
not

even

not be in

Dull

because as sopn as the
of'the

others

into registration or announcecl, as in the case of tax free
issues and the International, Bank

••••

way,.

put

are

if the announcement were

will

rection

which will be

offered to holders of the F and G
bonds

will

that

evident
xrery

have

rumors

strong from time to

time

week

mouth"

"open

were

manent

the

indicated

bulk

ex¬

change offer. This was done pretty
in a negative way by stat¬

them

mium

much

now

great many
at pre¬

the information

during the coming month.

would

make

0.99

page

5.0

1.00

4,00

0.60

Co.

fl.67

2.7

0.45

7.5

2.25

Ship

Dock

Building Co.

Shipbuilding;

and. repair
Works.

Iron

Alamo

iron A*

Machinery,

Colo.—Rex

with

National

First

...

Alba Hosiery Mills, Inc
and

nylon hosiery

Albany & Vermont RR. Co.
Local carrier Jj
V" v
Alexander Hamilton Institute

;

1.00

6.7

0.28

1.0

*15

1.00

3.3

2.50

4.9

t0.99

Inc.
Courses in executive

Class

Co..

Cement

Installment

Portland cement
Allied Finance

:.vv

Albs

training

Portland

A1 lentown

Co...

financing

(Louis^VCo—l-.-.L

Medical supplies

Mon-

Gravel

Filters

Bank

and

:•

: •:
22
■'
16

1.55

d 46

B';

3.4

Filter Co.

Air

miscellaneous

and

ventilating

1.20

i.eo

35 Ya

heating

equipment

CSpeclftl to The Financial Chronicle)
—, Alonzp
J.
with Empire In¬
Company, 711 * Seven-

DEN V E R,

vestment

Colo.

paper

containers

District

American

teenth Street.

possi¬

1.33

S314

5.4

1.50

4312

3.5

*14

2.75

4.3

Co. *32

3.00

3.8

1.90

1.575

3318

folding

boxes, corrugated and fibre\

shipping

d li:

^Manufacturer paper-board,

now

4.1
'

Ame n cam Pox Boa rd Co

Grapes

Rivers

and Mississippi
[:

Operates on Ohio

4.3

insurance

American Large Line Co._._

Joins Empire Inv.

;

-■»*>.

3.8

Corp..

A2S&V

American Auto Insurance

•

2.5
.

1.00

sand

and

American

•

*20
;

'Ash■■

Aggregates

American

Generators and electric motors
'

5.0
r'..1 '"F:

Aloe-(A: >.) Co

c -

".''J

•

Lac-kner

8j2

steel products

Antonio)

(San

Skinner are

John

and

affiliated

5.9

7.1

Alamo National Bank

Diversified

the non-Government bond market
because

;

Building.

thesg bonds are concerned. How¬
ever.
a
short
breathing
spell
would, be a constructive thing for

Company's

See

Ohio carrier
Alabama Dry

prices.

opment as far as the market for

the Treasury, the
terms could be given out anytime
out

evi¬

WUh Lackner

Company,

Based

April.
handed

•

Railroad

favorable devel¬

4.7

f0.24

Akron, Canton & Youngstown

fMA'ddxA

DENVER.

tague

selling

,19'i

;

equipment and accessories

fSnecial to The Financial Chronicle)

grade

issuance

has been

This

ing that there would be no offer¬
ing made to the F and G savings
bond holders during the month of

found

the

*»•*-

■

4.6

navigation

■■■»'.Communication and

high

now

are

above

5.9

23u

financing

Commercial

— Sidney
J.
connected with

become

Two

been

coroorate bonds and a

r
A1'ADiscount,
19

Inc.

Silk

Building.

the

V' '

AIRCRAFT RADIO CORP...

PAUL, Minn.

has

have

homes

for. the

likely there would be tangible in¬
formation

Flo

recently, especially the large of¬
ferings, such as the
American
Telephone
and
the
Aluminum
Company of Canada issues. Per¬

Investment

Aid

Smith, La Hue & Go., Pioneer

capital market is in the
process
Of
digesting the bonds
which have come into the market

opera¬

1.70

4.3

•

insurance

Diversified

;

With Smith, La Hue

Well

Going

I'"'

fL43

finishing equipment

rate

especial to The Financial Chronicle) ;

The

announcement being made
strong that Treasury of¬
ficials found it necessary to make
a
statement as to when it was

.such

Issues

Corporate

face

2.0

steel mill

Design and manufacture

securities.

ST.

just what the Government will
announce with respect to the type
to. be used in the refunding. And
tions about the imminence

be. taken

4;?

3.49 :

Engineering

Aetna-Standard

value.

last

are

Dec. 31.
1956

;>*- '[ -;u

health

accident,

group

Agricultural Insurance Co.

companies have been among the
more
important buyers of these

past declarations and
of Administration of¬

go,

ficials

It is
been

be made public.

There

masterful job of
maturities, which is

utterances

61U

^ee Cojppany's advertisement on page

•

not ; exactly
the
direction , in
which refundings were supposed

Treasury

the kind of security

Life,

into
the
market
recently.
Savings
banks
and
quite a few of the
medium
to
large life insurance

very

shortening

continues to put
off the time when the terms and
The

doing

tion

/■

(HARTFORD)—.——

rate bonds which have come

doubt but what the Treasury

Delaying "F"
and "G" Refunding Terms

Treasury Purposely

1956

INSURANCE

LIFE

AETNA

-1;,:'

further

been

Paymts..tp_

Deu tL

2.e°;

chases of the new issues of corpo¬

most likely

be made available to them.

portant to the money market.

issue will

short-term

% Yield
Based on

„

tion which will bp offered- to the
of the l%s, since another

down.

have

There

/ v

1956

Paid"

AA Diversified insurance "V-*

dences of larger institutional pur¬

owners

The di¬
that it takes will be im¬

move

Acceptance

Bankers

Approx,

Portent

not surprising.

was

of. There is hardly any ques¬

tion about the kind of an obliga-

give evidences as
the business pattern

whether

care

should

months

this issue will be taken

to how

prevailing
opinions that the next two or three
the

the

the monetary au¬

actions

12 Mos.to
31,

vecutive

Years Cash.r De:.

Divs.

Including ,,
Extras forQuota-

No. Con-

are

cerned

Cash Divs.

i-j.

;

out

are

ones

Nation's Business

impendingy

situation and the
put off for another period of time.
The increase in the Bankers Ac¬
money market, according to some
ceptance rate by Ys% is not looked
money market followers, appear
No Doubt of Terms on
s of
upon as indicating a new tighten¬
to be about on dead center and,
May 15 ing trend in the short-term mar¬
until there are indications as to
The 1%% due May 15 is now
ket.
Because
of the somewhat
iiie direction in which they will
actively in the money market higher yield that has been avail¬
move,
there is not likely to be
picture because the Treasury will able in Treasury bills, the rise
any change in the existing policies
soon be making an announcement
and

% A Indispensable to Investors and

The business

thorities.

Over-The-Counter Market

■

■'..

Telegraph

Co.
Electrical

supervisory

-anu

systems
- •
-■
American .Dredging

aitum

•'.

;

Dredging operations

American

Active

Fire

Trading Markets in

Druggists

Ins.

insurance

Equitable

Amer.

Assurance

Co. of New York..

•-

;23

5.9
~

Fire

American

Northwest Nitro-Chemicals,

Hospital Supply Corp.

Arizona Public Service Company

Money

Peace River Natural Gas Co.. Ltd.

Colorado Interstate Gas Company

Republic Natural Gas Company

'•

Colorado Oil and Ga« Corporation

Southern Nevada- Power

4.8
\

Commonwealth Oil RefinUs: Company, lac.

Southern Union Gas
Suburban

Food Fair

Suntide Refining Company

Properties, Inc.

1712

5.7

1.20

2434

4.8

felt

National

Fletcher

Bank & Trust Co., Indianapolis
-American Forging & Socket.

yh\

Manufactures

Company

Texas Eastern

International Refineries, Inc.

Texas Gas Transmission

LeCuno Oil Corporation

45
'14

1.10

0.50

0.20

3 '.8

2.8

3834

C. G. Glasscoek-Tidelands Oil Company

6.9

automotive

hardware

American Furniture

Transcontinental Gas Pipe Line Corp.

Tfansmispiou Corporation

♦ ...;

Large furniture jnanufacturer

Corporation

Fire

Volunteer Natural Gas Company

and

casualty

5.i

■ *

G£0

General Insur. Co.

American

Supply Company

1.00

v..-

Propane Gas Corporation

Tennessee Gas Transmission

Company

insurance

Diversified

American

Company

eneexs

Felt Co

Manufacturer

Company

Delhi-Taylor Oil Corporation

tiaveleiS*

orders;

American Fidelity & Casualty
—.

Nevada Natural Gas Pine Line

insuarnce

express

American
-

Mountain Fuel

lines of

Oklahoma-Missisdpni River Products One* hie.

The Gas Service

allied

and

American

Ltd.

American-Marietta Company

1.40

1.7

insurance

American. Hair &

Felt

8.8
"■

Westcoast Transmission Company

Company

Western Natural Gas

Nevada Southern Gas Company

Miscellaneous hair & felt products

Limited

1.20

2034

5.8

1.25

3312

3.7

7.20

t0.76

133i

f 1.25

23%

American Foist & Derrick..

Company

0.30

Hoists, cranes, cargo equipment

American

Hospital Supply

Large variety of hospital supplies

•

Eastman Dillon, Union/Securities & Co

American Indemnity Co
(Maryland)

EXCHANGE

BROAD STREET, NEW YORK 5,

N. Y.

HARTFORD

•

CHICAGO

•

CLEVELAND

SAN MARINO

•

LOS ANGELES

READING

LAS VEGAS

• •

•

EASTON

BALTIMORE

•
•

PATERSON

SOUTHERN: PINES

Insulator

Insur.

•

Maintains

SAN DIEGO

5.5

5.3
-

Cla^a, B

public

ter¬

10.0
i

' *

Maize

Manufactures
5

(Newark)

lockers

minals

American

CARLISLE

•

Corp._^«.

insurance

American Locker.

BOSTON

•

5.5

moulders plastic materials

American
Diversified

PHILADELPHIA

131

Fire and casualty

American
Custom

- -

•

\
MEMBERS NEW YORK STOCK

Products.

various

2.00

42 U

cord

products

•' "• *•' '
'

Correspondents in
ST. LOUIS
NEW HAVEN

DALLAS
PITTSBURGH

HOUSTON
•

TORONTO

American-Marietta Co
RICHMOND

NORFOLK

SHAMOKIN

■

f 1.08

Points, chemicals, resins, metal
'

powders,
ITHACA

pressed by the existing bonds. Because of the more favor¬
conditions.
Right now, with a able yields that are available in
i
great deal of confusion and un¬ these securities, there is not likely ; f
certainty in the business picture to be much, of a pipk-uo in invest-,
and the money market, the Treas¬
ment
purchases of Government
ury appears to be in the driver's
bonds.
'
seat.
It might turn out to be a
Increase in, Acceptance Rate
good thing as far as they are con¬
they

money

many

will

hurry to make it until

Continued from page

•
r

market special¬
ists.
Also, the capital markets
continue to get a large amount of
die money which is coming from
the maturing of, or the cashing in
of Government savings liondsi ;

during May, because it seems

though Treasury officials

Continues

Market

Up to now there has been no
important let-down in new issues

that,

market

bond

Government

The

sucb;^;

long-term

Treasury

JE. =p

By JOHN T. CHIPP EXHALE,

by strong holders,

investors of the institut;ona 1 ...type.,;-%. * \:dAyd'
as

Our

obligations

these

for

absorbed

cement

household

and

building

products,

materials

__.';*.Details not complete as to possible longer record
(Adjusted for stock dividends, splits, etc.-

49%

2.2

.Volume 185
\

Number 5630

...

The Commercial and Financial
Chronicle

(1835)

Over-The-Gounter Market

Cash Divs.

Including
No. Con-

Indispensable to Investors

secutive

and >
Nation's Business Growth

Cash Divs.

secutive

Quota-

12 Mos.to

Years Cash

Anchor

% Yield

Extras for
Dec.

Divs'. Paid

Based

1956

American
V

;:27

National
_

Manufacturing
own

Bank

retail

pianos,

Power

12.00

275

4.4-

Apex

2.00

f5.45

335

47-

.1.00

;

and

tanks, pipelines

•

£:•

2.7

•

16c-•

3.00

::/

•17

1.65

I Electric

6.2
y

23 %

Screws

and

American

5.2

Inc.

•

Pressed

wire

Holly,
10

American

parts

and

1.00

Thermos

10.00

425

2.4

Atlanta

f0.825

4.6

:v.

1.50

2.50

(San Francisco);
American Vitrified Products-

___

40%
21%

5.3

Steel

Insurance Co.

Auto
1.25

Life insurance

1.7

0.50

Auto

Service

t Adjusted

-12

0.95

191/4

stock

4.2

1.00

151/2

6.4

0.50

8.9

■

and

E-Z

Stores

1.20

2.5

1.25

241/2

5.1

personal

as to possible longer record,
dividends, splits,., etc.
•

Details

noi

t Adjusted

1.00

31%

stock

fl.69
1.00

Guaranty Co. of America.
Mortgage financing
Bankers Commercial
Corp.__
Installment financing
Bankers & Shippers

0.30

2.50

2.20

49%

4.4

•2.80

63%

4.4

0.50

7.3

8V2

7.1

and

2.5

4.3

'■

3.2

20%

4.8

3.7
30

8.3

■

I'.:.

*47
toys

1.88

0.10

1.2

f 1.46

/ 19%

7.4

10.0

141/4

4.6

2.8

Furniture Industries

Complete line

1.20

16%

fl.01

7.3

381/z

domestic

furniture

Manufacturing Co.____

Cotton

and

rayon fabrics

Manufacturers of

2.6

0.725

0.65

Laboratories, Inc.
pharmaceuticals

"Details not complete
t Adjusted, for stock

possible longer record,

dividends, splits,

We make Markets

Continued

to:

_Pallas Union Securities

Detroit
111

■

Cq.k Inc.
Company

Baker, Simqnds

Grand Rapids

& Co.

—_—King qnd Company

Hartford

__r.-.Coburn and Middlebrook Inc.

Houston

.i •"1

_—__Mnderwood, Neuhaus &

Los

Angeles

Philad elphia

Securities

St.

Louis

&
Co.

Security Dealers Association
NEW YORK 6,

A. Riecke &

Co. Inc.

---Arthurs, Lestrange & Co.
Fusz-Schmelzle

San Francisco_

Troster, Singer

Co.

Harbison & Henderson

Pittsburgh

N. Y.

Teletype NY 1-376; 377; 378

CO VERA GE

A{. Russell

Dallas

■

Glore, Forgan & Co.

Cleveland

TRINITY PLACE

etc.

Private Wires

195
280

Products, Inc.__

balloons

Bassett

Bates

dividends, splits,

Telephone IIAnovcr 2-2400

Baxter

Members: New? York

3.4

Chicago____—

•

3.1

Virginia (The)__
Bpnd & Mortgage

SPEED-DEPENDABILITY-NA1IONWIDE

; f

Na¬

vV.'

2.40

Association, Houston

Southwest

Over the Counter

to.59

12.00

the

(Jacksonville)

3.2

0.60

complete

for

4.5

f4.82

Balls,

toiletries

38%

■y

Barr Rubber

loans

Avon Products
and

5.4

1.75

172

(The) of New York

Banking Corp.__

financing

3.4,

33%

*21

•

43%

„

Multiple line insurance
Bankers Trust
Co., N. Y.___ 1
/Bareco Oil Co._____
Macrocrystalline wax
*
Barnett National Bank

.oyfr

3.6

___

Insurance

largest bank

■

1.825

J.,

Insur...

-•

storage

1.49

5.0

of the Commonwealth

Bankers
)

Building & Equipment

tional

4.9

Cotton fabrics .and yarns

4.9

and

complete

for

29%

producing and distributing

Cosmetics
not

1.45
3.00

0.40

Bank

;>'■

-/.V

Avondale Mills
aircraft

electronics industries
Details

6.7

Company

Automobile

6.9

and

Amphenol Electronics Corp.-

"5.3

35%

*20

Finance Co.___T

and

15
alloys

products

for

34V4

2.40

Inc

(bronze)

parts

f 1.83

Investments, automobile financing

Precision

4.0

3.3

Bank

Corp._

Atlantic Steel

bricks, tile

Copper-base

61/4

1.50

•

Bank

//■•'/;/

Atlantic National Bank
of Jacksonville

3.9

1.16

Bank

cold

Corp. of America
Building design and construction
Bank of
California, N. A.____

5.7

5.4

' /

company-—bknks \

___.

18%

4.00

Operating public utility

Bank

8.0

1.00

(Detroit, Mich.)_____

liqueurs

Spring

coal,

Curb

2.6

1.60
•f

5.2

11%

paper

Bank Of Amer. NT&SA-.

con-

service

Atlantic

5.0

Ice,

5.2

Georgia carrier
Sewer

•

and

Holding

4.8

0.90

Bangor Hydro-Electric

0.25

1956

BancOhio Corp.

0.925-17%

3.00

t§

Dec. 31,
.

hardware

Basjey Building Corp.______

f 1 -21.23 %

*12

and

;

4.5

* 28

1956-

v..'

■

Detroit real estate

/ 22%
•/./■•v's
;

and

Sulphite pulp and

5.3
11

Trust Co.

Ampco Metal,

Operating public utility
Atlanta & West Point RR. Co.

Products

(Charlotte, N.C.)

devices

enamels

Nation's

Badger Paper Mills.

38
*.'

Atlantic City
Sewerage Co.

Amicable Life

Detroit real estate

7.1

1.03

Gas Light.

___

Sewer pipe,

Precision springs

7.7

stamping

Co.
Vacuum ware
Amer. Trust

•

4.2

7.3

Paymts.

Dec. 31,

1.20
<

Badger Paint & Hardware
Stores, Inc,

,13%.
;//

*20

Liqueurs Corp..

Office furniture

6.8

.20

wiring

•

utility, produc-

transmission

Associated

insurance

;

American

Great Lakes

Surety

Diversified

American

f 0.57

forms

Steamship Co
on

utility

Art Metal Construction
Co.__

Stamping Co

steel

Electric

Arrow

1.00

Western Gas

and

Cordials

_________________

Freighters

7.0

bolts

and

American

481/2

;'>vr- '-jy-i'?-Z"<

Arrow-Hart & Heg'eman
Electric Co.

5.5

3.40

ticin

trols

Springs

23%

gas

5.3

2.00
,->■ /

gas

and

1.30

Restaurant chain
B. M. I.
Corp.i_

Paints,

-r:
-

tion

31,

1956

25i/2

0.3,0

Dec.

store

'41/4

fl.07

'utility ' ;.'.j' ;
Arkansas-Missouri Power Co.
Arkansas

Spring

American

and

2.2

•

insurance

Screw

»Natural gas public
*

transmission and other

Diversified

Public Service

Electric

American Re-Insurance
>

0.80

Coast -dairy

Arizona

equipment

American

5.3

Smelting Co.______

West

1.6

Ayres (L. $.) & Co..____
Operates Indianapolis
dept.
B/G Foods, Inc.

3.1

Aluminum jynelting

1'9%

Arden Farms
40
22

outlets

American Pulley
'

1.00

12 Mos.to

Years Cash
Divs. Paid

% Yield
Based on

Quota-

1.20

1956

Extras for

secutive

Dec. 31,

and Wrenches

No. Con¬

;

Approx.

Including

Paynits.

1956

mechanical mfg,

and

Moss berg

Tools

•

Boilers,

;Apco

/';■/
American Pipe & Construc'n
V-

1.6

Denver

Chemical

liy4

Amer. Natl. Bank & Trust Co.
1/ (Chattanooga)
Amer. Natl. Bk. Tr. (Chic.)__
Amer. Piano
Corp., Class B__
>

0.18

tion

Dec. 31,

Large variety of traps

Based

Ansul Chemical Co

_____

insurance

31,

" 1956

Leading brewer

Company

Casualty Insurance

Animal Trap Co. of
America

1956

American Motorists Insurance
Diversified

and

Anheuser Busch Inc.___

Paymts. to
Dec. 31,
Dec. 31,

31,

Casualty Co. • "
Paul)_____._________

(St.
Fire

tion

1956

Dec.

Divs. Paid

•

Cash Divs.

% Yield

*y
Quota-

Extras for
12 Mos.to

Years Cash

Approx.

Including
No. Con¬

Approx.

Co.

Carl W. Stern &
Co., Inc.

page

The

Thursday, April- 18, 1937

Copmiercial and Financial Chronicle.

(1636)

-36

•I :

Sy8tem

Member, B«rd

the
fKat:,
to^bwtog-Jiqiiidity;>;.%? f J£f^ sort of .distress "situation 'fhft-:-.
elastic currency and short-term ?
problems in 1913 and 1933-1935 in determining whether a new
borrowing privileges at the Fedmonetary commission should be created. 'Mr.-MiHs notes Fed- eral Reserve Banks were designed
eral Reserve monetary and credit policy is more far-reaching
to cope with.
In this instance, the
commercial .banks were faced with
and effective than appears on the surface; and believes such
abnormally heavy deposit with¬
commission may contribute as much to the workings of all

solution*

Reserve Board member recoonti

■*»£

.«

■

CashDta.

.%•'.ft-; Upprox.
'■{ -% Yield

Including
No. Con-

Extras for
12 Mos.to

-tion

Divs. Paid

The Federal Reserve System was
on the anvil of crisis and
turning points in the evolution
of its functions have likewise been

the product

that

the

crystallized

1907.

crisis. It is im-

portant

nancial

evolution

contract

try, and agriculture

con-

l. Mills, Jr.

of pub¬

Looking back into the

outgrowth

agricultural paper for their mem¬
ber banks against the proceeds of
which
Federal
Reserve
notes

the

could be issued and put

The damaging ef¬
that crisis on the national

panic of 1907.
fects of

and

short-term commercial

count

financial

history of this century reveals that
the Federal Reserve System was

Then

lation.

in circu¬

the discounted pa¬

paid off, the Federal Re¬
notes
originally issued at

per was

a demand for de¬
serve
and means of pre¬
the time of discount would flow
venting a similar crisis at some¬
time in the future. Answering this back
into the Federal Reserve

economy

vising

roused

ways

demand,

public

Congress

a National Monetary
mission in 1908 to ferret out

pointed
in

our

submitted

Commission

was

Federal

times

when

heavy

discovered that an

Reserve

they

pressure

were

*An

Bank

address

Boston,

Mr.

April

Mills before the
Federal Reserve

the

from

their

authority

Reserve

commercial

member

the

8.00
0.50

12.00

275

f0.98

;

4.1

0.75

15%

4.8

1.00

10%

9.5

fl.82

3.5

2.00

33%

6.0

other

affiliate

__________

Hathaway, Inc.___
Limestone

Bessemer

Ce¬

ment Co.
,

"Portland"

Bibb Mfg.
Cotton

cement

Co._____,_
etc. ■'

sheeting,

goods;

Cash Dividend

Over-The-Counter Consecutive

Payers From 5 to 10 Years Appear in the

thereby starting a
liquidation of
bank assets and the destruction of

Second

forced

Table Starting on Page 62.

values.

All

there is good reason
repetition of the

told,

believe

that

liquidity problems with which the
banking system was afflicted in
the 1930's has been eliminated by

these amendments
Reserve

under elastic

Act

currency

to the Federal

effectively as the
provisions of the

original act have prevented a re¬
currence

Reserve

of the kind of currency

Continued

page

36 x

5.00

102

4.9

1.25

5.9

1.25

22%

5.5

Trust National
(Birmingham, Ala.)

fl.10

4.)

Electric Co

1.00

6.2

3.00

73%

3.8

1.00

24%

4.1

1.40

2 sy2

6.0

1.40

24%

5.8

1.30
" 7

14%

9.0

0.80

is%

4.4

2.50

57%

4.3

0.50

3.3

0,70

12%;

5.7

Biddeford

Co.

Saco Water

Operating public utility

Bird Machine Co
Machinery for paper mills

Bird

Son

Asphalt

shingles

Birmingham
Bank
Birtman

Household

20*

Black-Clawson Company

Makes paper and pulp mill

? V

equipment

POWER

HILLS

LIGHT

___

Pressure

a28
tanks

vessels, valves, and

Blue

Pouch"

Bell,

'
65.

page

Bloch Brothers Tobacco Co._
"Mail

Black, Sivalls & Bryson

chewing tobacco

Inc
of

Manufacturer

work

and

play

clothes

Boatmen's Natl. Bk. St. Louis

Book

publisher

Bornot, Inc.
Chain

of.dry

Establishments

Boston

well directed program of

Insurance
and

Rubber

especially if it is properly geared to attract
a

and

cotton

;

which

"name status" in the Securities

well recognized-as is the simplicity with

we present

each client's story to the investment

opinion-makers

across the country.
Write—or call—for appointment.

{^AgcuuQatum/
Stockholder and Financial Relations

lOO Broadway,
.

New York 5, N,Y.

WOrth 4-6056

5.5

0.25"

12%

2.0

5.2

5i"
•

Louisville

stockyards

4.00

7.3

0.80

16%

4.8

'
' '

Boyertown Burial Casket
Miscellaneous

.0.30

*32

funeral

supplies

Branch

Banking & Trust Co.
(Wilson, N. C.)_
53'
Bridgeport-City Trust Co.
(Conn.)
a103
Bridgeport Hydraulic Co
67

7.00

250

2.8

1.30
1.60

■

3.9

5.2

Supplies water to several

Armored

Metal

communities

car

1.80

37%

4.8

1.40

5.0

3.76

112

3.4

66.

service

Bristol Brass

SAN FRANCISCO

32%;

•

Bourbon Stock Yards Co

Brinks, Incorporated

de witf/conklin

•

1.80

and
•

Connecticut

NEW YORK

5.4.

hose

Operating public utility

with stockholders and with members of the financial
are

18%

Bound Brook Water Co._„___

capable of earning for a

Community. Our methods of handling corporate relations

community

1.00

insurance

belting

corporation

Co.—

casualty

Boston Woven Hose

STOCKHOLDER RELATIONS—

reader attention-and

Newspaper publisher

business-building
a

cleaning
'
:

Boston Herald Traveler Corp.
*vv

Fire

Bobbs-Merrill Co: Inc._i

power

2.8

Hotel, office building, theatre

Operating public utility
• See Company's advertisement

tremendous

•

Appliances

Bismarck Hotel Co. (Chicago)

BI^ACK

There is

4.4

Fine cottons

banks,

5.4

public utility

Operating

preserving commercial bank
liquidity in a way that, as applied
to any single bank, will prevent
concern about its condition
spreading contagiously to

6.4

125

Trust Co.

Gas

Berkshire

for

from

______

textile

paper,

(Reading, Pa.)

col¬

qualified assets. The
great value of this legislation is
in the means that it has provided

broad-scale

5.6

Finance Company

Berkshire

lateral of any

public

2.00

Philadelphia hotel

banks

Co.
mkt.

terminal

Corp.

Berks County

advances

make

6.8

erector,

Benjamin Franklin Hotel Co.

only

paper

company

Beneficial

Banks

discount

J.4

bags •

plastic

Holding

enlarging the lending powers

mechanisms

Federal

the

and

1935

Federal

livestock

Beneficial

ingly, Congress amended the Fed¬
1933 and

2.50

and

Stock Yards

Manufacturer

sacrifice the value of
their assets in doing so.
Accord¬

eral Reserve Act in

RR.

Operates

un¬

13%

steel

structural

having to

from deposit with¬

The elastic currency

set

1957.

meet

.12

fabricator

Designer,

time of economic tension without

drawals.
Central Banking Seminar,

0.50

Belmont Iron Works____

investi-1

withdrawals

0.85

Pumps, tanks and valves

Bemis Bro. Bag Co

banks

deposit

6.2

commercial
usual

1.25

wholesaler

furniture

Hardware

Bell & Gossett Co

Sacrifice

from

6.8

Belknap Hardware & Mfg.__

Belt

it was
discount

Banks

clear

became

■

preparations

gating this situation that perma¬
nent
emergency relief
measures
must be devised that would allow

establishing
would also

currency,

their

of 1913.
then

elastic

this

Without

provide member banks a means
for making emergency loans from

re¬

port that was the basis for fram¬
ing and enacting the Federal Re¬
serve Act

that

besides

mechanism,

Borrowing

4.7

20%

1.70

toilet

Cosmetic and

Wholesaler:
•

23%

fl.io

Beauty Counselors, Inc

spiraling of all values.

Inc.i.__

Holding company—small loans

liquidity crisis were a wave
of bank failures and a downward

time

that

believed

also

faults

financial system and pro¬

reforms. On January 8, 1912,

pose

the

circulation.

from

withdrawn

Banks and

ap-

Com¬

only be realized upon at forced
liquidation and at distress - values.
The cum,ulative results of what

short-term

key to working this plan
was the
authority granted to the
Federal
Reserve Banks to
dis¬

usefulness.

of the nation.

The

has set out on new courses

created

all times in

Discounted Commercial Paper

and

lic

demand and would then
the demands subsided,

possession of just enough currency
to carry on the commerce, indus¬

adaptability to
changed

use

leaving the public at

has
its

ditions

seasons of the year
of currency was in

the

greatest

crisis that the

proven

the

when

gained from

System

expand automatically

during

to
'exper ience
response

ordeal

would

that

evolutionary

the

aggravated

less

Federal Reserve Act
provided for an elastic currencyj

has

from

been

before

into the panic
this kind of fi¬
which had oc¬

the

form,

be¬

cause

cure

malady,

curred

mark the word

our

corporation

Bank holding

Beacon Associates,

was a

to carry on
caused the break¬
financial machinery

had

business
down

cur¬

which

with

rency

forged

actual

shortage

extreme

Bay state Corp.

sets had become frozen and could

the field of credit.

operate in

time when their as¬

Dec. 31> * Dec.3t,- Oec. 31,
1956
:.»56 - j ' W56

Years Cash

drawals at

Based

Quota-

secutive

credit-granting institutions as in proposing any new authority
for the Reserve Board or creation of new governmental body

Tf.t

Nation's Business Growth

fabricator

British-American Assurance

Company
Insurance

/:*

other than life

Brockton Taunton

0,90

5.3

Gas Co.—

0,75

2.8

Operating public utility

•f

Brockway Glass Co.
Glass

containers

Name
♦

;•

Brockway Motor Co.

changed to Cortland Co.

Details

not "complete as

t Adjusted

"-'X a Including predecessors.

.j,

£..*.

to possible longer record,

for stock dividends,
-

splits, etc-

'185 ' Number 5630

urrte

The Commercial and Financial
Chronicle

...

(1837)
'

Over-The-Counter Market

Contimied from page 36

-///

Nation's Business Growth
;

Cash Divs.

Including
Extras for

Quota¬

secutive

12 Mos. to

tion

Dec.

Divs. Paid

shortages

Appro*.
% Yield

No. ConYears Cash

Based

tor the
In

Dec. 31,

Paymts. to
Dec. 31,

1956

31,

1956

ments,
Own

operate

two

"Gordon"

6.00

___

hosiery and underwear

Machine tools

0.40

Wholesale Urugs

'»

•

Manufacturers

/•

26%'

f 1 -07

4.5

0.80

4.3

11%

7.0

•

was

internal;

•

Buchanan Steel Products

•

1.75

Continental

Oil

group

• •••■•>';•

Hotel

Poconos

Bullock's Inc.

*32

Burdine's

5.9
*

specialty

stores

2.50

/ 41%

■

2.3

radiant

21%.

7.0

4.00

-t

ce.il-

Burnham Corp.

1.30

6.5

0.50

66%

1.60

0.575

2.50

6.0

20%

12.3

Bank

California

Oregon Power

(L. A.)_.

public

2.00

1.60

Pacific

Title

In¬

./ '■

______

California-Pacific
public

4.00

Cement

Utilities__

lime

and

SERVICE

45'

1.50

3.50

utility

Portland

CALIFORNIA

Sec

that- is

use

i'V'V" •/!;"
•

products

WATER

CO.

5.4

op-

.-:r'

credit, the

Reserve

to
a

through

may %:T .e ^ v*
^ new National Mon18

Feff.ral i\?serye
L° f.y

a ^

^ S

venting; the

"c V

,r- V '

1.8

- ■

•

restrain

the

economic

J-:;. Vr,s&;

System

policy

Reserve

part

fotf

developed
1.00

19%

5.1

California-Western States

effective

market operations had

credit
are

unions

not

whose

subject

opera-

directly

its regulation and control.
then

National

should

Monetary

be created

things

and

reforms

ever

and

mrctomofmino

systematizing

and- inconsistent

granting institutions
ing any new

in propos¬

creation

body

operate

new

governmental

the

field

Our

discourse began with the
National Monetary Commission to

strengthened
that

the

first

tary Commission

full

creatine

new

that

and

Co.-_

1.50

2.25

4.6

0.60

6.0

National

its

efforts

thn(,p

storage,

Metal

warehouse

will

(A. S.)

Co.-______

LEE HIGGINSON

Campbell Taggart Associated
1

Bakeries.

Inc.

Bakery chain
Cannon .Shoe
Retail 'ifnoe

*11

Co.:

-V ;

stores

1.25

0.45

;

Boston Stock

6.7

10.00.- 530

1.9

v.; ./•*.

•

* Non-participating life

Carolina Telephone and Tele-

ANGELES, Calif.
t

—

graph,; Company
Operates

Renard, Jr. and Gerard H. Wayne

contention

have become affiliated with Dan-

the

National
was

set

Mone-

only

iel

Weston

Co.,

Inc.,

South Spring Street.

Distributor- of

products;-

and

paper

4..

1.90

36%

5.2

NEW YORK 5
.9.00

138

' :

2.00

25 %

6.2

Teletype NY 1-917

Owning arid operating
tW^hingtqm

Central

Bank

Corp.-

0.70

10%

Hudson

4.1

C.V.

P. R.

;'"j

...

Trust Co.

FEDERAL

STREET

(DenverJ
Central9tbal
Leases

& Coke Corp.,,

rnlr.es

Central

*11

Cold

royalty

Storage

0.74;,

4.0

1.25

18%
35

3.6

CENTRAL

Co.___

2.00

GAS

several
1

See

0.85

&. gas

states

r.ot

t Adjusted

16%

CHICAGO 4

5.1

complete

page

•.

SALLE STREET

Continued

2-4500

Teletype CG 175

on page-

Corporation
Company

Rice Mills,

Inc.

Ages Corporation

Shea Chemical

Corporation

St. Croix

Paper Company

Speer Carbon Company
Williams

and

.'■>

■

Company, Inc.

T.;:

Including predecessors.
Dividend payment includes
27?ic "adjustment dividend" paid on
Nov. 15 with change in
schedule of
quarterly payment dates.
Normally pays -55b quarterly. :
:
.» "
'
i

FRanklin

it?«s is r k'

Brand

„.,■

5S.

possible longer record.
for stock
dividends, split3, etc.
»
as

Aluminate

National Blankbook

Shuiton, Inc.
231

Morningstar, Nicol, Inc.
National

River

35% / 5.6

utility and through
telephone service in

Company's advertisement

Details

Teletype BS 452

Mallory dc Co., Inc,.

Electric

Company

The Meadow Brook National Bank

Rock

ELECTRIC

subsidiaries

Liberty 2-5000

basis

Refrigeration

;•

Keystone Portland Cement Company

BOSTON 7

apartment

Jersey City

Pulp & Paper Corp

Jones dc Lamson Machine

6.4

2.00

;

Company, Inc.

■

for containers

Apartments

;*,•

The Fort Neck National Bank of Seaford

STREET

The Kerite

sheets

bouse

BROAD

HAnover 2-2700

Plate Company,

1 /'

•/

Research, Inc.

The First National Bank of

7.8

" 10

2.00

Plywood
Metal

Rendering Company

6.5

Incorporated

The Duriron

Plywood Corp.__

Caspers Tin
Cavalier

Cameo
14-43

Dixon Chemical dc

coverings.

Cascades'

Sharpe Manufacturing Company

Bryant Chucking Grinder Co.

Cary Chemicals, Inc.

5.3

*25

•"

* '

••/•■

■:."/:

paper

Co.____„_

Carthage Mills, Inc
.Floor

•

Underwear

152

Brown dc
•

Manufacturing Co*~t

paper

Manufacturing of

(William)

the following

Product*, Inc.

Consolidated

■products

Carter

inquiriee

Altiton Steel

Exchange (associate)

"■

telephone exchanges

Carpenter Paper Co.__-^~

8.00

•

David

7. Te
T1
i>unnipgnam,.
^^ahu>riLivingstoh, a Charles A.
4

Avon

Investment Banking Service Since

...

Exchanges

American Stock

Capitol Life Insurance Co.__

argument

We invite

Members: New York, Midwest and

4.9

25V2

(Special to The Financial Chronicle)

LOS

CORPORATION

stampings, plating, castings

Daniel Weston Adds

2.0

business

that

:t„

insurance

minals Co.
Cold

Mnn-

We hope
hnnp

Camden Refrigerating & Ter¬

Campbell

com-

proposal

•

what-

trulUul 35 those ot lts Progenitor,

new

scheme

new

has

and

circle

Commission will be created

fri1jtfni

Commission

found

paternity

etary Commission.
ptsrv fmmmissinn

are

owes

'V/

■>-

credit.

by Congress to

recommend

Their

necessary.

that/a

argue

study the entire financial

of open

with

onH

tin

pleted

tions

System

to do

tlHirincr

w"ich the Federal Reserve System

and

legisla-

use

who

companies, savings and loan associations, mutual savings banks,

the

however,

granting activities of such other
financial institutions as insurance

responsibilities

which

for
eco-

that the direct influence of
Federal Reserve System policy on

evolutionary changes in

from

„

commercial bank operations tends
to be adulterated by the credit-

Federal Reserve
System, it
interesting to note that the kind

of crises

those,

are

They

and

fear

of the
is

51.

20 /

seem

authority
di*J\ /"V Jiew au"lorJiy for the
Ior
Reserve System or the

Reserve

There

or,
use

far-reaching influ-

Federal

the functions
6.3

in P*®-

causes

ev*"

mon-

a.n®w Natl<>nal Monetary Commission may lie as much
tidying
conflicting

nomic fluctuations that in the past
developed
into
financial
crises.

power of the

stimulate

important

making

sible

>1V:
'-*>

b2.475

page

Telephone Co.

Insurance

'4-£ '' />

•

in
in

as
a
stabilizing instrument
ironing out the kinds of wide

■'periodic crises have been respon-

Water &

accident fa health

remains to be
^
:
1

measures

fi¬
nancial practices
among all credit-

eral

Turning back to the theme that

Operating public utility

Life

corrective
seen.

generally agreed that FedSystem
monetary
and credit policy has 6
great merit

the

tive history.

8.9

190

Adequate?

amount of busi-

transacted

Reserve

played

i..:

Cemcnt_

Company's advertisement

California

policy

•

It is

•

type of financial crisis which has

;;

Public.utility-water

Life,

regulate
credit through its

5.1
./

■•■-■'?

Co.

Operating

■

's Federal Reserve Power.

insurance

California

•

surance-

;

3.8

52%
31

utility

test

economic'Jcousirilcuveness of the

penetrating

effects sought from System

prevent the sort of credit excesses
that end up in the boom-and-bust

Jands

California

Title

volume

eral

California

•

the

actions.

general economic activity,
This power is
particularly useful
where it is the
purpose of Fed-

chain

Corp.

Operating

are

con--accent

powers

System

of credit has

3.9

Calaveras Land & Timber
timber

depressions

ence on

Butlers, Inc.

California

kind that leads

economic

market transactions in U. S. Gov-

lessened that any active use of its

conversely,

products
shoe

••

Federal

0.7

health

Manufacturing Co.___

Southern

the
23

and

to forestall future financial

open^n

.tained in the Federal Reserve Act
and, therefore, the possibility is

ness

etc.

of America

Metal

ex--

new

unforeseen experience and unexpected
weaknesses
to
produce

■.

sidering the vast

Business Men's Assurance Co.

Butler

composing ; our- national
helpful tools for carrying
out that policy for^
as
is well
known, monetary and credit policy is effectuated through
debt

for the proposal
Whether the product
Commission's labors can

whether it takes the acid

credit, policy
_are held to be
useful, so it is that the instru-

ments

and

enacted

are

support

disturbances of

the

ends of Federal Reserve monetary

erations in the open market. Con-

radiators,

serve

use-

as.*

correc-

is in order.

accomplisned

Therefore,

administrative

Reserve

accident

rather

emergency-provisions wilLprove
necessary,'Reference is, of course,
/' made to the power of the Federal

10.5

ing, recording and controlling in¬

Life,

explore
defects

take

National Monetary
persuasive
and

a new

Commission

strong

merely

fact that has been turned to
tul purposes.

such

then

There-

Co.

Industrial acoustics,

:% 1.50';

a23

struments

Greenhouses,

takes account of

cor-

but

war,

financial

should

where

and

crisis

new

our

action.""The"se~'ari'oiiiente* for

creating

redeeming side in that the:" ^

the

■

Burgess-Manning

Dry cell batreries and battery
using devices
■

evil

-6.0

r. 19% '

0.45

/ 18

Burgess Battery Co.____
"f

tive

Re-

3.9
10.5

33%

_~_

the

exist

busteminent securities.
Furthermore,^
7%*:
the very sfee of'the national debt*
a
Open Market^ Operations
has its

Inc.

Federal

advance

may

Florida retailer

/ /

8.7

0.60 "1514;
3.50

t • v
25

;

^ ;

-V-

and

subsequently

the

should

wars

the

wait for

of steel -castings >.

Department

0.26".

Buckeye Steel Castings Co._i^ 19
Production

tor

-•

v~.

the

its
and

then taken dealt

Buck Hills; Falls Co.._______
,

0.20

steel'forglngsv

Buck Creek Oil C6.--Ci--J,--4.:
In

that

world

presented

financial " crisis,

not

expose defects

mechanisms,'- but

That

System with improved tools
conducting its-open market
policies does not offer an apology

bust, but at correctdiig the difficulties that stem out

■

-I..'"

1933

aimed not at
preventing

boom to

5.0

•

Corp.

and

tivo

finance.

for

/cesses of the kind that lead from

- . . -^

serve

activity had preceded a
crisis, and the remedial

-financial

/ legislation
23

led

not

have

than with the causes of the
crises,
In each instance a period of
high

1.20

;

grinding machinery

evident

crises

Federal

and

war

two

which

the

19X3

measures

economic

Bryn Mawr Trust Co.-------

Manufacturing

these

primarily with the effects

8.4

•

Bryant Chucking Grinder Co.
,

434

Brunswig Drug Co.__.l___::_.:
,

19do,

5.8

rective

Brown & Sharpe Mfg./*21
.

103 %

Brooklyn

Act

amendments

•'

Brown-Durrell Co.
.

enactment

major

Inc

and

garden apartments

•

responsible
'

back at
financial crises

the

severe

should

were

panic of 19U7.1

Reserve

Brooklyn Garden Apart¬

that

looking

great
to

•

«f te* the nation had
suffered from

The Federal Reserve System

>*:?+ * ♦. »;■* •

Indispensable to Investors and
i

,4 .1

•

618

The Commercial and Financial Chronicle

r1833)

als

The New Age

of Refractory Metals

the metallurgist.

turbine, rocket engines and nuclear prower reactors require,
according to Sylvania's Chief Engineer, the metallurgist to
develop a whole new field of refractory metals and ceramics to
withstand higher and higher temperatures under varying condi¬
tions, Mr; Kopelman describes the possibility of molybdenum
becoming

if not

as,

more,

important

development of rhenium and several
earth metals; and the great promise of ceramics.

the next few years we

Within

will leave the
—

of the wonder

age

titanium

enter

zirconium

and

—the age

era

new

refractory

metals and

ce¬

long

attractive

perature

Over-The-Counter Market

use

■

perature environments, have a
practical limit of only 1700°F for
most
applications and, in a few

the

Cash Divs.

alloys will

secutive

It is

mmercial

and

military
necessity.
Perhaps the

most

chal¬

lenging prob¬
lem facing the
materials

properties

which

are

even

materials

capable

them

this

useful
as

temperature

the

Central

♦An

ence,

nuclear

steels,
the

nickel

cobalt

and

base

alloys

super

Annual

Board's

Mr. Kopelman

National
Atomic

before
Industrial Con¬

Energy

Confer¬

power is dependent unon
maximum
temperature that
be reached. In the special case

of nuclear power reactors,

particularly
nomic

so,

eco¬

are

involved

in making atomic power

competi¬

tive with fossil fuel.

the

attempt

review

Periodic
these

the

Chart

criteria'In

metals

Elements
mind

the

solve

this

problem, the metallurgist has

re¬

Cleveland

nium

refractory elements and their al¬

ful

rare

above

Continued

met¬

2000°F..
on

Central
of

1.80

38%

4.7/.,

140

f5.00

129

National

Soya

2.00

3.6:

Bank

Co.

1.60

5.1/

39%

5.4

29 %:

•

livestock feed

Central

Steel & Wire Co._l

3.00

5.9

J->

Metal

processing and

Central

/12

Co.-

1.00

■

2.40

Trust

1.00

16%,:;

6.2 /

Vermont Public

Co.

(Cinn.)

'•{*/ Service Corp,/. J-__

4.1'/;

Electric and gas utility
Central Warehouse Corp.,
19

1.00

16%

6.1

Class A

0.30

4.8

8.3

Operates warehouse in Albany

Central

West

Investment

Central

Co.

trust

West

Operating public

2.50

5.00

%/ 5.9 ~

2.00

6.1:

Utility Co.—

.1.20

20%

b.8

utility

Chain Store Real Estate Trust

' Retail iiitore /properties

;

Chambersburg Engineering.
.'"•-T'orglnrg harpmers/ hydraulic, '
"
_

.//

•'

presses

Chance

.."n

(A.

B.V Co.....

Manufacturing products for Utility
Line Construction

Maintenance

Gate valves,

1.00

1.9

0.90

25%

3.6

*■

110

2.25

£10

0.16

3%.

4.4

/■;

129

2.00

47%

4.2

5,0

6.1

4.8

(W.Va.)

■' 4-5

Manufacturing Co.,

Class A—,
Woolen

6.4

•' /'S.

Paper products

Chase Manhattan Bank..

Chatham

fire hydrants

Charmin Paper Mills, Inc.
i

•' /

3.00

-21

Chapman Valve Mfg. Col..
/ Charleston Natl. Bk.

—

blankets

Chemical Corn Exch. Bank__

Chenango & Unadilla
;

Operating telephone

1.20

5.50

/ 90

7.50

156

5.00

150

Telephone Corp.

use¬

Both

company

Chicago Allerton Hotel Co.__

Chicago, Burlington &
Midwest carrier

2.50

5.0

1.25

23%

5.3

building

Chicago Mill & Lumber
Wood

3.3

ing Corp.
Office
-

—

boxes

Chicago Molded Products
Corp.;
;
_/
_____'

Canadian

Exchanges

Publisher

■*

Commission

Rates

Traded in New York

Combed

88%

1.00

3.3

2.00

4.2

*32

485.00
4.00

3.25

135

2.4

t3.90

114

3.4

2.25

1.60

1.50

36%

1.60

3.5

0.90

13%

6.9

3.00

mo-"vines

yarn

Christiana
Holding

Secur.

3.5

13,700

company

Circle Theatre Co

United

6.3
5.6

business

^__

China Grove Cotton Mills Co.
,

5.00

molding

Chicago Title & Trust Co
Chilton Co.

Regular

f0.76

_ _ _

Plastic

all

•/;.

Chicago hotel

Chicago City Bk. & Trust Co.
Chicago Medical Arts Build¬

/' 4.9//;

•20%

Telephone service

Central

Ouiricy RR. Co

Orders Executed

>•

distribution

Telephone

Central

CANADIAN STOCKS & BONDS

6.4

Soybean processing and mixing

•

with

page

21%

(Philadelphia)

presents

be considered

can

material

4.4-

Central-Perm
Vr

interesting possibilities. In
Group IV which includes titanium,
zirconium and hafnium, only haf¬

cently turned his attention to the

Co.-—
-

certain

loys. These include such

Philadelphia.

this is

because of the

factors which

Power

Central National Bank & / "
Trust Co. (Des Moines)___

air

33%

1.40

Central National Bank of *

reactor

can

address

5th

Maine

Electric -utility

that it also have a
low neutron capture cross section

are no longer
requirements of
resistance to corrosion

in present jet engines, which have
*

ference

1.45

Electric, gas and wlater Utility"'

would require

propulsion a high strength to
weight ratio would be of consider¬
able advantage.
■
/;/• '-"/// //

materials

alloys, the so-called

♦ he

material

6.1-

whereas to be used in the fmlq of

ability to withstand stresses.

Fven

the

ferritic

strength,

the

above,

of commercial power, tem¬
perature plays an important role,
since the degree of efficiency of

area

4.7

13 %

15/

Natural gas public utility
i5
Central Louisiana Elec. Co.__

ment, high temperature strength,

attaining

able to meet

and

practical

30%

0,80

22// /

/Central Indiana Gas Co.__„_

These include resistance to

the sustenitic

construction such
and

and

conventional

for

structural parts. At

1.45

17..

board

Operating public utility

iKopelman

applications

wall

and

5.4

Central Illinois Elec. & Gas_

■

make

.1956

should meet certain basic require¬

for 100-hour periods £ low creep i
standing jun to. day development of gas turbine,
and
the stringent and rocket engines from the theo¬ rates, high tensile strength
demands made retical standpoint has already sur¬ goo.-f hot ductility.
The material
by the use of higher and higher passed
the maximum operating should also be metallurgically sta¬
temperatures. Because of this, a limits of conventional materials. ble; that is, it should have a high
temperature
s o
very large and concerted effort is Temperatures
above 2000°F are recrystall ization
being made by both government being exceeded, and the need for that cold work strength is not lost
in service. In addition, specif ire
and industry to develop new ma¬ materials to operate in the
range
terials
with
properties at tem¬ of 20000 to 40000 F is increasing applications may impose other re¬
peratures above 2000 °F that will rapidly.
However, even in - the quirements. For 'instance; use of *
Bernard

Dec, 31,
1956

27%;

*20

mechanical proper¬
ties such as strength which
are
essential for their use at tempera¬
tures above the present 2GOO°F

This problem is most evident, of; good stress-rupture characteristics
(that is the ability to withstand *
course, in the field of propulsion
where size is important. Present-, stresses of the order of 15,000 psi

1956

Paymts. t«

31,

1.50

___—___

corrosion in its operating environ¬

Metallurgist Faces Propulsion

tion

Dec.

31/

Central Fibre Products Co.,

•/// Voting
„•Paper

necessary

ments.

en¬

gineer todav is
that of finding
new

ture

Dec.

Based

Quota-

inferior to these super-alloys.

12 Mos.to

Divs. Paid

have

'
specialized cases, to 2000* F. Above barrier.
this temperature, no material has
Specifies Ideal Material
yet been found satisfactory. The
The mechanical properties re¬
wonder metals, zirconium or ti¬
tanium, which have shown such quired of anv structural material,
promise in the aircraft industry naturally, will be dependent Pri¬
because of their favorable strength- marily upon its specific applica-tion. However, the ideal material
to weight ratio have high tempera¬

Extras for

Years Cash

ramics.

ApprOX.
% Yield

Including

potential high tem¬
materials.
All arc

their

and

;

No. Con¬

ments

;

Nation's Business Growth

Equally important, there is good
reason, io believe that these ele¬

rare

Indispensable to Investors and

cer¬

high melting point metals, rang¬
ing from hafnium which melts at
about- 3100°F to tungsten whose
/ melting point is about /6170°F./

used in elevated tern-

been

tain properties which make them

titanium

and zirconium; the

///',/

All of these elements have

and niobium

Continued from page

18,1557

Thursday. April

re¬

being looked upon with favor by

Gas

*—and

tanta¬

which until

tively small quantities. In addi¬
tion to these exotic elements, mo¬
lybdenum and tungsten are also

Chief Engineer, Atomic Energy Division,

metals

niobium,

have been available only in rela- ;

I5y BERNARD KOPELMAN*

Sylvania Electric Products, Inc.

hafnium,

cently have been regarded merely
as laboratory curiosities and which

And the Promise of Ceramics
*

has

lum and rhenium

...

44% '..8.9

States Funds

Indianapolis

Citizens

theatre

Commercial

Sav¬

ings Bank (Flint, Mieh.)__
Citizens Fidelity Bank & Tr.
(Louisville)
Citizens Natl.

ings

Bank

Trust

(Los

Sav¬

Angeles)

3.8

Citizens Nat. Trust & Savings
Bank

(Riverside, Calif.)__

2.5

Citizens & Southern National

CHARLES KING & CO.

Bank

Toronto

Stock

Exchange

455

Craig

St.

Stock

Montreal Stock Exchange

Exchange

Bank of S. C. (Charleston)

Citizens Utilities Co., CI. B

MONTREAL
UNiversity

1-5886

American Stock Exchange

Broadway

NEW YORK
WHitehall 4-8974

City National Bank & Tr. Co.

3.6

Royal Bank

Bldg.

City National Bank & Tr. Co

•,

■*

Builders

Manufacturers

and

building
,

0.80

0.40

3.6

0.9
5.9'

insurance

leveland

EMpire 4r6407

TORONTO, NEW YORK, MONTREAL

1.00

*29

(Columbus, Ohio)

TORONTO

Title

Wire Connections

•

utility

Direct

4.1

Public

Canadian

(Savannah)

Citizens & Southern National/

MEMBERS

not

2.50

material^

* Details

Supp!

distributors of

Adjusted

complete

possible longer

for stock dividends, .splits,

etc.

record.

'•

'■-

6.1

.Volume 185
*

Number 5630

The Commercial and Financial
Chronicle

...

(1839)

Over-The-Gounter Market-

Continued from
page 38

oxidation
:

Indispensable to Investors

and

Cash Divs.

secutive

Dec.

Divs. Paid

tion ""

Dec.

.31,

Baseo

1956

•

their successful develop-

.:vi,

Cleveland
i

Quarries Co.

Buiityng and refractory

Cleveland

___

Coca-Cola (Los
Angeles)____.
Coca-Cola (New Yurk)___-_
Coda-Col a (St. Louis)k-ii
'L
Collins
{ "Farm

Cfc\X?-£2---r*t
arid

//y/.

Life

C
-

•

Retail

and

Colorado
i'

light

Colorado

stem

-1.00

ti:o5

261/2

4.0

and

z23

1.20

25%

4.8

1.25

116 j.A

1.40

19% 1

1;0 —;
c .%

•'

Southeast

V>.'\

suj

7,1

Columbian

" '261/2

1.00

3.8

;

National Life In-

/".-Life, accident and. health
Commerce Trust :(K.
Commerce Union Bank

•

(N a sh ville >

2.00

Commercial Discount Corp.__

tP-96

'22

0.30

11 -i

propulsion

19 %

3.50

this

72V2

£
-

Non-paiticipating

16
and

cdnfiniied

York

which

23%

0.9

1.125

6.00

Operating public utility

2.40

43%

5.5

142

1.60

36%

4.4

•

2.8

/ 91

Pa., hotel

Concord Elect. (New Eng.)„_

Insurance Co.
Life,

accident

ance

(group

and

health

f 1.675 257

Power^

have

must

first

Connecticut Printers,
Commercial

rosive

5.8

result

2.25

40%

5.6

1.50

0.30

r11

1.30

34%

4.3

10.0

Warehousing
Owns
and

office

buildings in Chicago

Consolidated
'

20%

5.3

3.625

even

equipment

Naval

11.875

Consol.

Water

Manufactures

6.00

t2.375

iri*oducts£

Pwr.

and

1.00

40%

1.2

■

Paper

Life,

accident

••

Diversified

)

-r

Gin

Manufactures cotton

eguipruent'

£ -" / Chicago
„

t
-

Adjusted
Also

one

..-held,.-

fl.lo

for

120

cfl.34

80%

2.50

41/

.3.2

but

carefully con¬
results cannot

will.

Efforts

these problems

are

Still

being

are
are

also

alloys

oxidation

having

resistance.

investigated./'

being

made' to

improved/Some

im-.'

1.7

-•

provements have
been
made
in;
this direction, but a solution
to,.
the lack of resistance to oxidation

•:

6-1

of
v

-if

•
! :

molybdenum,) whether by alloying, cladding or otherwise, has
not

r,-

Kidder,Peabody
r

t3.83

•

83%

-4.3

'a;

Niobium
Boston

A second metal which is

100

*-•*

start-of-.10^7/

Continued

page

rapidly
attention
in
the
high
temperature
materials
field
is

gaining

niobium.

'.v~V

-t6

Sxchatiges

yet been found.

•

JMembers ~N.eic York and '^American Stock

17 Wall
.

FOUNDED 1865

/.'

...phone

the

laboratory,

these

industrials?

been

actively considered and
different kinds of protective

develop

dividends, splits, etc.
share of Continental
Assurance Co.-for each

the

have

its

impurities.

welds

conditions,

Efforts

stock

'embrittled

minute

under

coatings

*~L0;

possible longer record.

..f.-f/ i ,z MonUriykuivfdond. jncre'afeed to

public utility stocks?

the

been

^___=,___v—-;_rv-

Details-not comnlete

molybdenum against oxidation

•

Continental Illinois: National
Bank
and
Trust
Co.
of

■

with

materials

has

1^'
ginning

1500 °F

2.7

insurance

Continental
"

insurance stocks?

oxide

1.40 "

Continental Casualty/ CoL___"

i-"

Co._l:

and. health

oxygen-

being made. The use of clad¬
dings or ceramic coatings to pro¬

stocks?

*32
-

bank

continuing, however, and progress

paper

Continental Assurance

the

other

duplicated

many

".i|v Participating .life

8.3

ler-

-1/ Insurance Co.-

■-

28%

Continental American Life
-

4.6

500

...want to buy or

most

tect

Co._

scrap,
skins

paper

ductile

overcome

Stores

Holding company, diverse interests

tilizers, hides and

joining

Molybdenum,;

an attempt
catastrophic oxi-

occurs

become

trolled

patents

Consolidated
Rendering
b Tatlow, grease, meat
I

not

produced

4.9

Products
22

railroad

chain

Corp.
Owns

Consolidated

5, N. Y.

re-

are

Some

Dry Goods Co.k

Department store

with

itself, J

below

that

presence

Newark

Consolidated Metal

YORK

the

vicinity such as clad¬
rapidly attacked. A sec¬
ond disadvantage inherent
in the
use
of molybdenum is the diffi¬
culty of producing welds which
dings

(it.

Dearborn

NEW

immediate

page

•

appears

which ;
forms only to sublime off at tem¬

,4.7:

peratures

Connohlo, Inc.
Consolidated

nature

17%

jnc

printing

air

dation which

1.00

STREET

overcome:

particular, because of its

and
gas publi" "MP*-'
Company's advertisement

INCORPORATED

20 BROAD

This

associated

metal

19%

Electric
See

0.94

(Bridgeport, Conn.)

imR

bearing atmosphere. This problem
aggravated by the cor¬

Connecticut National Bank

•

upon request

the

success

barrier.

CONNECTICUT POWER CO.

Duir Descriptive Booklet

metal

is further

Operating public uti'itv

0.6 y

insur-

individualY

Connecticut Light

•

in"

work has been done in

//'/;■'

appear

to counteract the

exemption and quality '

Will be furnished

desirable strength and stress-rup¬
ture properties, has been inten¬
sively
investigated,
and
much

6.6;

Connecticut Bank & Tr. Co.
Connecticut General Life

■

0.20

the

(Pa.)i,

operating
temperature and, specifically in/
the case of
molybdenum, the dif¬

;

Co.

offer both tax

development.

chance

ficulties

(Pittsburgh)
/./ •Community Hotel

School District Bonds

likely in spite of certain problems,'

the

they afford—with quality. /'

New York State

importance

MoIyhAeinim

perature
£

industrial

Commonwealth Trust Co.

higher tax brackets deserve

tax "refuge which

breaking through the present tem¬

life

■

•■■/"/"'

.Co. (Ky.)

ance

Insur-

in the

Of the remaining three elements 1
in
these
groups,
niobium
and

4.8

Page €2.

and

increase

sistarlce
Life

Starting

available

.vnamely,jthe lack of oxidation
Commonwealth

customers

/%
.

Second -Tahle

total,

However, ductile

amounts,

greatest

Where

nOw

molybdenum,

•

■

seg-/

4.6

Over-The-Counter Consecutive Cash Dividend
V
Payers From 5 to 10 Ytiars Anuear it\ the
;

promising.;

important factor.

chromium

with

(Jersey City)

frre'ht Of 'the Over-tlie-COunter market and
your*

which"

other hand, although a light elenient, has the disadVantag< ?. of

sliould

Commercial Trust Co. of New

Jersey

page
'

small

2.8

t0.90

metal

being extremely brittle and diffi-

2.1

products, hydraulic
equipment and f org in ^

oil

m6st

kctilt to fahricate.

[

working capital

Commercial Shear, &
Stamp.
Pressed

2.3

;

2.5

Provides

2.00

2-1

_'_ L

the

VI, however,

the elements

..thhi

tantaium ;

Continued

J-

tiiei'r other desirable
properties in'
range. - Chromium, .*•. on
the

Bak-

£ durance "Co.

■;

titanium

this, both are currently
undergoing re-examination as high '
teihperature materials because of.

Name changed t<> Southern
eries Co. on April
1, .1957

the

Tax-E)remiyt Bonds constitute an.important

are

air

spite
/

•

Columbia
Baking Co._.L£_L_
^ Southeastern baker-

zirconium,
aluminum,
molybdenum", iron;
chromium, nickel, vanadium, tung->

upion too favorably in the
/ past tor applications in toe field

/ Weight IS

Milling & Elevator

,/ / Flotir and rt'eparqd mixes for"
>
baking
- - '■ ..v. '

looked

Interstate Gas Co._

ha&
through the additioA

amounts

;■■■>

and for this reason have not been

,-r.:

pov, er

Studies

vanadium,
niobium,
.tantalum,/chrdinitim, molybdenum
and tungsten.
Tungsten and tantalum are both high density metals

16
in

he found

can

These

Natural gas - transmission

Colorado

v"3:h Gfori^s V and

7.r/-/;/--

small

'of

• its
separation from
zirconium with which it is fduh'd
l/atuidally. •/
•

J.:

6.4

non-volatile.
■

/dated/with

' 6.2

2.75

does

6.4

temperatures up
represent orte 'Of the
important commercial ad-

varices

4.0

insurance

Central Power Co.

Electric

■;

8.00

oxidation

Oxidation resistance at 1800°F

the past decade.
: Haf¬
nium, however, is still relatively;

life

stores

Midwest

141/2
125 ,

Stores
food

0.90

;

*.
to

oxidation

catastrophic

niO-

being
improvement in

3000°E

_■*!__./

Nonwparticipating

;

Colonial

231/u

•24%

some

also

are

•

6.9

1.50

2i0

v.V
Co.

Insurance

kf,.;. of America

t0.99

1- *42

cutting implements

ttidu.triev

Colonial

296

0.625

Collyer insulated Wire__^_^_
"•} Supplies utilities and construction

;

6.00

•21>

Operates livestock yards.:

4.6

10%'

Qomnany:

Trust

Clevelnnd Union Stock Yards

-merit and use

0.50

T
'
'
resistance

alloys

been reported

SSK^^^notOccurintHatthe^ideformed^en,
although

■

•*

Paymts. ic
Dec, 31,

31/

1956

'./„ ■ \
' •
-and
zirconium

/titanium
lose lacks
strength too rapidly at temperaa|r

% Yieul

Quota-

•12 Mos.to

Years Cash

»*"

Approx.

including
Extras for

characteristics

base

made, and

Metals and Ceramics

i's Business Growth
No. Con¬

bium

school

bium.

When
this

many of us went,

was

Although

called

this

colum-

metal

also

Street, New York 5, N. 1.

Chicago

Phii.adelphta

San Francisco

Financial ChronicleThursday^ April 18.

The Commercial and

(1840)

with

Continued from page

zirconium-containing

erals such

and Ceramics

Refiactoiy Metals

must

from

protected

larities

min¬

Continued

the

chemical

between

simi¬

zirconium

hafnium,

separation

seems

elements

rather

potentially

promising

Rhenium, for instance, al¬
though widely distributed in na¬
is ductile, it can be cold worked
ture, occurs only in very small
easily and is of medium density.
amounts, principally in the ore
It has also a fairly low cross-sec¬
tion to thermal
neutrons which molybdenite which is also a source
of molybdenum.
At the present
makes
it attractive
for use in
atomic

prices.

addition, this metal

time

reactors.

Cook

Tires

Wall

nitrides

stress will

'/'■

8''-.v..'■; ,-y._ v"

Research

vf >v'.

'."A,

■■•■v.''*

mal shock
are
-.

the

refractory
to protect

curities among

have

the growing interest in foreign

se¬

investors in all parts of the country,

Wide

recently broadened the facilities of

our

but

ductility

have

pre¬

and

ties for which American

limited.

now

are

applications

elements

members

our

Men's

Department, further, will be glad to

ramic

international securities.

some

here,
our

London office

our

•

the

Dean

which

oxidation

Members New York Stock

provements
elements

Del

20-24

•

protection

Teletype: NY 1-2525

denum

and

also being

•!

perative.

It's

and

air high

•*> '1

headed

2.60

2.00

nuclear

energy

7.5;

in-

Monte

Properties Co.___
Railroad

operated

Electric

and

other

and

5.1,

19%

;

type

Supply (N. Y.)
teeth

1.50

auto

P.R.R.

Co.___

lanterns

5.1

■'^

fl.20

7.7
11

18%

6.5

*31

;1.00

•

,16%

-6.2

dental

„

•

Denver

Union Stock Yard Co.

4.00

*11

0.55

7.3

Cto.__ a21

1.66

46%

3.5

1.00

15%

6.4

1.20

16%

7.2

1.05

5.8

0.075

1.15

16%

7.0

1.25

3.9

1.20

24%

4.8

6.00

Livestock

Detroit

" '

Bearings

Owns

Trust

Canada

and

5.6

bushings

and

Bank

Detroit

0.2

Aluminum & Brass__

Detroit

operates

Tunnel

;

international

tunnel

Detroit Harvester

Mfr.

auto

farm

parts,

and. power

Co
equipment

lawn mowers

Detroit International Bridge_

de¬

Operates bridge

Detroit
Co.

to Windsor

Mortgage & Realty
—...

Real

ce¬

estate

Detroit

metal

parts &

Manufacturer

Portland

Cement

Dickey (W. S.) Clay Mfg. Co.
culvert pipes, tiles

Dictaphone Corp.
sale

and

dictating,

of high
strength

Dealers
ties

and

2.00
8.00

of New York

0.20

8.0

1.12

18%

6.1

6.3

126

»'

- t

acceptances

theatre chain

Crucible Co.

(Joseph)

Crucibles,

graphite,
and

paint

. ■

—

fl-86

34%

—

1.00

10%

lnc

Houses,

Restaurant

airline

5.4

catering

Products, Inc

Doeskin

n.a.

Treasury securi-

bankers

Operates

Dobbs

2.7

0.15

(Akron)
U.

District Theatres
Dixon

company

Bank

Discount Corp.

and

Dictograph Products Co.__—
Holding

3.7

162

Dicta¬

recording
transcribing machines

Dime

2.7

specialties

Cement__

Portland

phone,

financing

Stamping

Pressed

Diamond

;

9.8

Tissues

elevated

reactors,

propulsion

dp\ices.*~^ "•"***
„

0.30

cold

732

Dollar

.r»v I

Trust

Co.

Donnelley (R. R.) & Sons___
commercial

Largest
United

* Details
♦
a

not

complete

1.4

0.475
v

to possible longer record.

Adjusted for stock dividends, splits, etc.
Including predecessors.
Recent Quotation not availatu.

6.6

■*""

and house-

3.1

27%

**24
.

162

„

Co.

hold products..,

0.40

Manufactures soybean,

5.00

printer in

States

Drackett

n.a.
■»»

Savings

(Youngstown)

Jbarrier is im¬
roadblock to prog¬

aircraft,

3.5

1.40

A break through the

*33

thermal

ress

0.60

fasteners

Artificial

pursued. Results to date

future.

materials

6.3

64.

(Denver)

very

;near

23%
:'y'.:

page

Natl. Bank

encouraging and a break
through the 2000 °F temperature
barrier is predicted for the very
are

1.50

castings

supplies

temperatures against oxidation is

Moorgate, London, E.C. 2, England

3.5

Denver

unalloyed

6.7

'-v..-..

eouipment

Dempster Mill Manufacturing
Farm equipment
1

reported in
study of clad¬

niobium

■

fO.46

*10

Dentist's

metals like molyb¬

7.7

0.35

15
■;■■■.

switches, bicycle lamps and horns

2000°F is be¬

the

15
!

lumber and wood products

Leased and

en¬

metals

3.6

■•••-

dings and ceramic coatings for the

1.15

display

0.40

Nut Manufacturing

Delaware

been

The

cases.

many

Telephone: WOrth 4-5300

over

have

6.3

Co.

dustrial

ing intensified and substantial im¬

Stone

Exchange

BROADWAY, NEW YORK

above

cabinets

Co..

improve

the

resistant

temneratures

Model, Roland

will

8.6

0.60

*15

Co.______.___

steel

Manufacturer

substantial

resistance

metals

wood¬

Company's advertisement

Veneer,

for Alloys

oxidation

strength

120

See

Decker

refractory metals picture,
however, the immediate future is
considerably brighter. The search
alloys

other

CO.____

and

Iron

In the

for

0.60

facilities

transit

Manufacture

correspondents abroad.

6.00

and

Manufacturing

the nature of these materials.

frequently able to obtain it through

7.3

Metallic Door Co.

Sewer and

we are

1.0

*;VO...

also

overcoats

and

doors

Transit

IRON

resist¬

aimed

6.6

DAYTON MALLEABLE

low

unless

19
155

sickness;

and

mouldings,

Local

retical work, to better understand

readily available

1.55

Darling (L. A.) Co

Also needed in the

field

1:25

"-V '■

Dallas

amounts of fundamental and theo¬

Where this information is not

suits

Doors,

and
compensating for
inherently poor mechanical

their

questions and provide the latest financial data'
on

specifically

pronerties.

25
*37

Corp.
Co

public utility

Dahlstrom

avoiding

answer

5.5

work

use

ceramics

therefore,

are

36%

Telephone Co

Windows,

This

is not too

sign®

Foreign Investment Re¬

2:00

coolers

Curtis Companies, Inc

component.

couraging,

The

1.6

3.1

Operating

The possibility of practi¬

structural

16%

Curlee Clothing Co

ductilitv, but results have been

cal

available.

*r0.50

Operating public utility

resist¬

the

impact

poor

Cumberland Gas Ccrp

Some work has been done to
pro¬
duce ceramics having some degree

pared statistical summaries of many foreign securi¬

Depositary Receipts

retain

their ceramic

ance

service to investment dealers,

pronerties

oxidation

still

Knowles

accident

Cuban

against

in metallic matrices.

cermets

4.6

1.40
t0.49

annuities

cermets, that is, ceramics dis¬

persed

30%

?32

variety of looms

Life,

compromise has helped somewhat

Foreign Investment Research Department.
As

the

1.2

them

mechanical

42%

processing and refrigerating

Crompton

com¬

of ceramics has led to the

ance

In response to

Chemical

Delta

with

6.7

0.50

trucks

Crown Life Insurance

attempt to combine the de¬

sirable

containers

and medium

Hand

metals

5.0

1.00

paperboard

machines and farm

oxidation.
An

Manufacturing chemists

They also
coatings
metals in an

considered

3.00

Creamery Package Mfg

to impact.

being

for

attemnt

Department

Cowles

ponent will not be subject to ther¬

Foreign Investment

: 18

(Paterson, N. J.)

encoun¬

tered and where the ceramic

6.7

tubes

County Trust (White Plains)

minimum

14%

Paperboard Products

Heavy

being used

are

13%

0.95

County Bank & Trust Co.

several of the bo-

applications where

fO.24

Cortland Co

In spite of this,
as silicon
beryllium oxide, magne¬

amount

and

Cornell

products.

rides and

1956

Relrigerators and air conditioning

however, ceramics such

for

Dec. 31,

V.J"

Coffee Co

Corduroy Rubber Co

of nuclear applications, are
impermeable to the escape of

boride,

Paymts. t»

1956

Operates Pick-N-Pay Supermarkets

Copeland Refrigeration Corp.

heat conductivity and, in the

sium oxide and

tion

Dec. 31,

31,

1956

Use of Ceramics
by-product of molybdenite and
Vanadium
is recovered in the flue dust pro¬
Another approach to the mate¬
The third metal of interest in duced by the roasting of the ore.
rials problem can be found through
this group, vanadium, is relatively As a result, the metal can be ob¬
the use of ceramics. Their use is
new to engineering and its potentained
only in small quantities
expected at temperatures above
tion at elevated temperatures has and at a cost of about $15 per
2500 °F. These, of course, present
not yet been fully explored.
Its gram. Unless more
abundant no problem as far as oxidation re¬
melting point is about 3450CF, and sources of rhenium are found, then sistance is concerned.
They are
it has fair tensile strength and
it is unlikely that this metal can relatively abundant and their cost
good ductility at high tempera¬
ever
be considered seriously for is a fraction of that of the more
tures.
However, its mechanical
promising refractory metals. How¬
Hafnium, also,
properties are aopreciably altered widespread use.
ever, they lack ductility and the
by small amounts of impurities does not occur naturally in rich ability to carry stress. They also
deposits but is found generally have poor shock resistance and
such as oxygen or nitrogen, and

fission

Dec.

Divs. Paid

case

Approx.
Based on

12 Mos. to

Years Cash

Food

not

Quota-

Extras for

secutive

picture.
At
the
present
time,
molybdenum powder can be ob¬
tained at about $3.25 per pound,
whereas tungsten powder is some¬
what more expensive, selling at
about $4.50 per pound.

poor

% Yield

Cash Divs.
No. Con-

is obtained only as

rhenium

Including

tions that vanadium may have a In
contrast, both tungsten and
service above 2000 °F
for claddings
or significant place in the high tem¬ molybdenum have long been used
in industry, and their technology
perature materials picture.
other
protective
coatings. The
With the possible exception of is
fairly well established. Use of
metallurgical properties of nio¬
molybdenum, all of these metals either of these metals as a high
bium, although not as attractive
are
relatively rare in abundance, temperature material, therefore, is
as
those
of
molybdenum,
still
and, as a consequence, the pure not expected to result in any ap¬
make
use
of this metal above
metals command exceedingly high
preciable change in their cost

2000°F

Nation's Business Growth

need

material.

Indispensable to Investors and

con¬

tion to be of

without

page

Over-The-Counter Market

and

the two
costly. How¬
of

ever, should the demand for haf¬
to improve
tamination by air during hot work¬ nium increase a substantial de¬
somewhat the oxidation resistance
ing.
At the present time, not crease in the cost of this metal
of several of the binary alloys.
enough data on the hot properties should occur. Substantial reduc¬
It seems likely, therefore, that a
of vanadium have been obtained tions
can
also be
predicted for
systematic study of the binary
to permit one to predict the future vanadium, tantalum and niobium
or ternary alloys of niobium may
of this metal with any degree of once use of any of these metals
produce a material which may be
reliability, but there are indica¬ grows to commercial proportions.
sufficiently resistant to air oxida-

also

Titanium

from

zircon and monazite.

Because

•-

•

}
.-

•

--* *

*
-

1957

STclume 185

'Number 5630

The Commercial and Financial
Chronicle

.;.

(1841)

Over-The-Counler Market

Continued from page 3

earned and added almost
and

Indispensable to Investors and

Futuie oi Drugs and

Nation's Business Growth

what difficult to
predict whether
conditions will be
better,

Cash Divs.

'•

■'

:''

•

■

•

Heavy
rine

equipment

Drexel

Drovers

■r

Steel

Bk.

nonferrous

Paymts. to
Dec. 31,

Dec. 31,
1956

*21
v
•

Frankly, I

1956

(Chicago)
& Supply

46V2

4.3

1.50

27%

7V..7 "v

....

ter

0.80

23
22

products ""

5.7

2.50

6.9

Industrial jacks qnd lilting
equip-

7"77'7;, 7 ]ri YlY./
7.; 7 '
■•'77'77v/^/77/7v/77 "7.7/; -7V;7 /7/: 7-7;,/'
Dun & Bradstreet Inc
24
1.50
28
5.4
Credit and
marketing reports and
publications
-'"7777' 777.777:7 7 7.7//'7
7'/•/./' 7
7-;
Duriron Co.
17
1.00
18
5.6
Corrosion resistant equipment 77
777/7 ' 7 7'
Eason Oil Co
15
0.50
*

ment

■

whole
At

production

gas

Racing

.,'7 Suffolk Downs

/v/:/-

Assn

7...
'■■■.7"
7/7.
Eastern Utilities Associates._
29
•.

typewriter

record

ness

social

''.777'"-:';

time

squeeze>

<•

/•':

•

34%

6.4
-7yy.7

7„7,7-7/7i

4.50

7j"0.45

2.8

1.00

wheels

and

rolled

steel

3.10

55%

tires,

steel

forgings

rings and

and

Class B

industrial

Paso

Electric

1.85

Paso

Natl.

(Texas)

2.40

1.50

Neon sign
manufacturing

Manufacturer

0.56

abrasives

(Consolidated)

1.40

4.2

4.1

fl-60

38%;

Empire Southern Gas Co
public

gas

utility

1.25

3.5

Oil

production

rather

0.30

than

expounding
President

own.

better

over

Democratic

would

Dr. Leon Key-

speech

national

summer

reach

to indi-

seems

this

that

conven¬

level

felt

these

3.00

190

future.

amount

$1,468 billion.

ditures

$1.5

for

1957

also op¬

over

sums

have

1960.

industryindirectly
an
directly to this trend. At.

contributed

new

medical discoveries have in¬

creased

the

lation

adult

for

to be

dustry

is the

which

and

Although
the

in¬

fl-17

27%

4.2

has

that

need

have

(Wilmington)

161

4.00

v0.99

3.00

6.2

0.725

15%

phenomenon

ist

throughout the world, to
extent that experts

our

two thousand.
000

Textile

Erwin

holding and

Mills,

Textile

operating

individuals—the equivalent of

city almost the size of Hunting¬
ton, West Virginia—the largest in

this states—are added to

At last report, these 845,000 people, who might otherwise
have been reduced to mere death
grave.

Inc.^

Water

0.60

11%

but

will

also

present

Continued

and

only

power

Excelsior

Life

4.00

6,9

mills

Insurance

(Toronto)

*29

4.00

750

0.5
1.

2.60

5.5

1.00

2.3

1.75

33%

5.2

Operating public utility

Exeter Manufacturing Co
Co.
artificial

magnetic

Fafnir

Bearing Co.____,

Manufacturer

Dairy products

ball

and

frozen

7
1.35

21%

6.4

how

and

large,

serve

"HANSEATIC"
to

your

Next time you

32.50

1.30

OVER-

400

private wire system

dealers

the

across

put*

you

in touch

nation.

experienced

your

OTC

Trading

Department

really

requirements.

combines

its

seasoned

benefit, providing

better

knowledge
markets,

and

reliable

faster.

need maximum OVER-THE-COUNTER

service,

22%

5.7

0.80

10%

7.4

400

8.1

••

New York Hanseatic Corporation

ch&plets and

; Established 1920

chills

Associate Member American Stock

foundries

Long

Merchants

Beach

Bank

(Calif.)„
Co.__

Heavy machinery & machine

120 BROADWAY

'22

3.00

4.3

2.00

37%

5.3
.7

tools

•

not complete-as to possible
t Adjusted for stock
dividends,"splits,
-

longer record.
etc.

page

Telephone: WOrth 4-2300

^BOSTON
;

•

Continued

•

Exchange

NEW YORK

■

•Details

than

why not Try "HANSEATIC"?

utility

Farrel-Birmingham

"HANSEATIC'S"

service

4.4

public

Manufactures

'■

52%

*23

—

Railway Motors,

Operating

6.2

„

foods

Fanner Mfg.

r2.31

bearings

Inc.

•

bankers, brokers

knows
4.

3.10

Railway motor cars
Fall River Gas Co

Farmers

market*

separators

Fairmont Foods Company

for

wholesaler

Fairmont

primary

"HANSEATIC'S" nationwide
with

abrasives

Faber Coe & Gregg, Inc.
Tobacco

make*

glass fabrics

Manufacture
and

"HANSEATIC"

THE-COUNTER *ecuritie*.

Company

.Exolon

Because:

Participating & non-parth-ipating
&
Hampton Electric

and

Try "HANSEATIC"

Co.

Exeter

Cotton

5.4

yj.i-jt

; n

CHICAGO

•

•/

•

'''

5, N. Y.
Teletype: NY M0-1-2

•

PHILADELPHIA

friomtm Wires to Principal Cities

•

our

map^

This is bound to present problems,

Your Customers Get Better Service When You

mills

yea^

co.

Essex Co.

have

planet's popu-i

Every 24 hours 85,

4.7

Leased by New Yoik Central

Erlanger Mills Corp

the

wish

1.8

108

not

about

lation will be doubled by the

indicate/ that

If it's Over-the-Counter

4.5

Equitable Trust Co. (Balt.)__

many

talked

reinsurance

Erie & Kalamazoo RR.______

for

change

this

predicted that

medicine literally saved
845,000 American people from the

For Banks, Brokers, Dealers

uses

present product;

2.5

which

group
our

States,

such

For example, dur¬
ing the period 1947-1954, the best

had, worked

becoming

population

ing

expanding popula¬

tioned before.

certificates,

popu¬

elderlysignifi-;

confined to this country. It is
go¬

tion of the United States and the
world as a whole. Of
course, this
is one of the factors reflected in
the Gross National Product men¬

records

our

The

more.

imply

our

great deal of

belief

group

pens

this

reason

change in

distribution.

cantly large—in fact, has quad¬
rupled since 1900—and this hap¬

1955

future potential of

life-span, ii

average

has created

Expanding Population
second

United

Thest-

well

magnitude do
not represent a general
feeling of
optimism among those who are
guiding our industrial activities.

in the

will

census

The efforts of medical scientist-,
the pharmaceutical

and

outlays.
Although such spending is in part
a
necessity, since to stand still is
actually to go back in this com¬
petitive field, it is inconceivable
that

should experience
increases based on
population growth alone.

expen¬

billion, which represents

increase of 48%

result,

which

estimated

spirals

increasing rate.

at least modest

are

the

citizens will need their share:
of our products and services and,

evidenced

Similar

population

our

an ever

new

and long

money

invested

Thus

exceed 200 million in 1965.

Business

are

short

This

than

are

babies

1.6

2.00

Medi¬

pharmaceu¬

health

upward at
Some feel

1955—that

5% increase.

about the

modern

so.

indicated

Equitable Security Trust Co.

.•

industry

the

3.5

*33

Employers Reinsurance Corp.
line

much

industry leaders

timistic

and 1956 certainly

Casualty Insurance

Multiple

and

available

tion last

4.0

and

refining

Empire Trust Co. (N. Y.)___
Employers Casualty Co
Fire and

their

consensus

not alone by any means in

theory

the

■-

and

1.00

Empire State Oil

one

industry.

j cate that this is

4.2

Glass industry machinery
Natural

the
en¬

serling
11

is, about

ative and the performance in 1955

Emhart Manufacturing Co.._

most unusual

was

Gross National Productr of
$500
billion in 1965. This figure is con¬
sidered by many to be conserv¬
i

.___

re¬

Eisenhower, in 1955, predicted

-34%

not government

business

must

feeling of optimism for the
future for tfye nation and our in¬
dustry. In f<ict, I am being guided
by leaders in government and

"Y-•777777

distributing utility
Elizabethtown Water Co.
gas

Operating public utility

•-

general

1956 was

this

6.1

13%

" 7

whole

1956

the

Elizabeth town Consolidated
Gas Co.
i
__1
Natural

.■

27%

the

being

Electro Refractories & Abrasives Corp.
7

7.. ;>/7

the

year,

5.4

hose
'
777
.../ V'.77- 7.77" 77-7,.
Electrical Products Consol.__
23
1.70.

million

the 1937 rate.

over

science

tical

Product

appears to be that 1957 will be

sales manager, it
that
it
does

Other Optimistic Views

3.9

Rubber

cal

estimating sales

Gross National

eager

4.3

Electric Hose & Rubber Co.__

are

since this product had

Bank

increase

admitted

1.3

43%

pharmaceu¬
products

fast that for the first
there is a slight

based

range

registers

Public utility

the

new

tical formula for

this

longest decline records in the

instruments

0.25

increase

mathema¬

only 1.7

million births in 1956 constitute a.
new record
and represent a 10%

ing.

years

tire chemical
18

ing News," this

fO.78

machines, air¬

Egry Register Co
Autograhic

7''777

some¬

is the recent increase in
the price
of penicillin.
As you may have
read in "Chemical and
Engineer¬

(Thomas A.)

craft

4.7
16%
77 "77 7 77. 7, 77
,7/777 .,7..
33
1.40
39%
3.5

Operating public utility
Batteries, dictating

5.6

;':7>: '/■"77/v.

77 v/7/7 777 7.

Edison Sault Electric Co

Edison

railroad

'.';7:.,- 7

■

*12

level

may

pealed— operation of the law of
supply and demand. An example

9.1

Holding co.—brewing interests

Edgevvater Steel Co.___
Circle

inevitable—if

(Bahamas)

developed

disparity between,
deaths is more apt tf>
than decrease.
The

births and

cor¬

expansion
have programs everywhere.
The joint
compensating advantages from the report of the Department of Com¬
general industry standpoint. One merce and
Exchange Commission
such advantage is
rectification of places chemical industry expen¬
the cost-price
squeeze through the ditures during 1956 for expansion

77\7

Ecuadorian Corp., Ltd.

even

77///77/7v'7/'7/;7:7':/7"
20

cleaning compounds

direct

contrasted

relation between its own sales and
Gross
National
Product.
They

have

perating from the point of view of

8.6

■;"-,77'7/7

books

found

United

deaths and this

industry—the scientific apparatus

the

7>v' /7

are

optimism along
These predictions
of Gross National Product
are not
merely idle numbers. At least one
lines.

makers—has

the

approx!—
mately 2% million per year. Therer
are
4.2 million births each
year.,

not divided in our

production facilities.
Although this can be very exas¬

stationery,

Economics Laboratory, Inc.__
Mfr.

2.20

7-".7.

social and busi-

paper,

appearing

"'77.

6.8

England

Eaton Paper Corp.______.___
Manufactures

■'■•7, r:'

■

Holding company, Nsw
public utilities
77- 77

end

business

2,6

0.30

Compe¬

forward.

moves

77.'v7

increasingly keen

19%

and

our

industrial

present, in fact, in the bio¬

tical

Oil

was

profits

chemical

____

Eastern

any

leveling off in

American

that

;

see

increasing by

keeping more
alive, protecting
what and any one
throughout
their
specific com¬ as the dependent variable.
lives, and enabling them to live
pany could be adversely affected.
Economists share this optimism.
longer, so the death rate per
But
new
products
follow
new
Although there is some conserva¬ population unit has been
decreas¬
products and the
industry as a tism concerning the latter half of

3.5

1.25

yet

compared to 1955.
tition is getting

not

excellent year
compared to 1954, and all indica¬
tions are that 1956 was even
bet¬

5.4

This indicates at least that

national

population

States

political
can

the

1955

scene.

supplies

___

area

2.00

7.7/

equivalent.

finite signs of

■

industrial

Duff-Norton

tion

worse,

ma-

Metals

and

Based

.v>;.7

Natl.

Metals

manufacturer

Ducommun

31,

1956

___

projects,

Furniture

.-.r

engineering

Dec.

Divs. Paid

.-7

Quott

12Mos.to

Years Cash

Drayo Corp.

% Yield

Extras for

secutive

Approx.

Including

No. Con-

The

billion

half dollars to the

income.

SAN FRANCISCO

opportu-

page

The Commercial and Financial Chronicle

(1842)

the hunt for

Continued, jrom page

processes,

knowledge,
techniques,
anything else

new

products, and

Future of Drags

and Biochemicals
of

talize on them.

the third

And this brings me to

for my optimism concern¬

reason

ing the future of my industry—
and that is the growing awareness
the people
in the so-called
underdeveloped
nations of
the
World of the standards of living
and health enjoyed by all of us
here in America. This knowledge
cannot but be followed by the de¬
of

sire

attain to the level which
reached—to live in the

have

style, if not the manner, that we
tfo__to possess the same products,

devices,

processes,

that

gadgets

and

do—to enjoy to the same

extent the leisure that we

do, and

last, bift tfot least, to benefit from
the same standards of health that
do.

desire

this

the satisfaction of

It is in

the

that

American

neither the pharma¬
nor the chem¬
ical industry, nor any other one
industry will proceed alone, but

these

countries

develop

eco¬

nomically,
more

new markets will open
less simultaneously for

products in the foreign field. Evi¬
is already available of the

dence

increasing
foreign

importance

markets

of
these
American

pharmaceutical concerns and in¬
dustry in general. > Pfizer prod¬
ucts,

for example,

are

dis¬

now

for

is there.

that

our

One

way

can

countries

the

wishes

his

market

products there. This
naturally presents problems, but
the challenge is being met. Pfizer's
foreign
trade
subsidiaries
now
have basic

plants as well as com¬
plete marketing organization in
England, France, and Japan. An¬
other
is
being
constructed
in
Argentina and there are plans for
more.
Facilities
for
processing

many

out

operations

our

past five years

confidence in the

importance of these outlets.

Simi¬

larly other companies are also
locating facilities on foreign soil
as they too strive for their share

The

S. Research Laboratories

final

reason

research.

I will not

now

7, "

trained

people.
for

tures

for

basic

attempt to de¬

Cash Divs.

Perhaps

now

Fate-Root-Heath

$5*

Faultless Rubber

te.

Mr.

has

tion

phenomenal

Cotton

Federal

reach

Federal

rate.

;

all concede it has.
look
at

around

leisure,
its

see

We need

has

been

150%.

Name
Natl.

Foundation,
States

mates that the United

for

and

back $2,000 to

development

the

oast

Fiftv

$5,t)00
$100 spent for research

earns

every

esti¬
as

3.00

f 1.27:

203,4^. 6.1

0.90

-322.8

1.50.

.1834..

8.0

41%

2.9

4.65

5.2

0.30

•'834

:f,

-1.20

fine this term which

Bank

Natl.

real .-estate

Bk.
2.00

4.00

7''V '7777

4.7

68 V2

4.6

f2.60

4.1-

2.00

3.1

600

3.2

3.6

sales in

these

today has an

Continued

page

33%

3.7

'1.80

ifire underwriter

Firemen j? Ins. Co.

1.25

First Anter.Nat. Bk. (Nashv.)

f 1.27

1.70

Diversified

3.9

50.00

>,•

19.00

Western

Bank

(Newark)

insurance

holding

4.1

;

3.15

Fireman'$ Fund Insur. Co,

The Minnesota Mining and
Manufacturing Con-many substan-

49^4

Finance Col.of Pennsylvania
28 Rea'l estatefand securities 77 7777''

6.7

1957

/•

• s

Fidelity-Bait.

January

3.4

0.40*

(Baltimore)

produ

screw

changed

Co.

Asfogjates (Boston)___ *11

Boston

years.

all-inclusive connotation covering

and

2,7

•

newspapers

First Bank,Stock Corp.:.—___

tributed directly in 57 major for¬

eign markets,

110

„

13
22

Fidelity-Philadelphia Trust—
92
Fidelity Trust Co. (Pgh.)„73
Fidelity Union Tr. '(Newark)
63"
Fifth-ThirdUn. Tr. (Cirm.)
20,

Raymond Ewell, of the Na¬
Science

Works

and Trust Co.

cited

9.T

Co.

Fidelity-Baltimore

only

estimated

The

effects.

nationwide

Screw

Manufacturer

yearly return on the research dOl-7
lar

5.7

A 20 ;t:

Cap & Set Screw

Ferry

place, to

any

1.15

0.40

Fetterst -7^7' *16 '
Pressed leltfrlfnon-woven)
;

work, at home,.

time,

any

1144 7 8.6

werehououtg.
Co._____.'

Insurance

Michigan

I think we will1

off?

(Newark)
Federatetl Rublicatioris, Trie—

Has all this pre-occupation withresearch paid

Screws srhd' machines

V /. '

1.00.

7
13

& Warehouse

compress and

Federal

billion, and by 1975i
$20 billion annual.

■

—

7..'
16

Muitiple lirfe insurance-

will be

1956

-T.

Engineering Corpora-;
1965.

the rate of $10

will

Fertilizers

Fed. -Compress

to: continue.

expenditures

Paymts. to

51/< Dec. 31,

1956

estimated that, by

research

tion

v Dec.

31;

1956

Feaeral bake Shops,
Ch^in ofyetailbake shops \
Federal Clteinieal Co.__7._—

Duerr Reeves of Esso Re-j

search and

Dec.

-?7
32

—

MiScel. ruttber gobds,v«pongfcs*

be realized from the fact thai
expenditures from 1950 to 1955
almost equalled the grand total

1950.
This
is expected

774-

•

4.1

3414

4.9

company

Over-The-Counter

Consecutive

Dividend

Cash

-Paydrs From 5 to 10 Years Appear in the

WE GREW

Table

Second

HERE

machinery, and lawnmowfer
sharpener?/ /, ;7.'V!7,777?'''/7

being in¬

may

to
growth

Co.—, 23

Manufacture® locomotives, ceramic

vested in research in this country

Based

better ideabf therafe-

12 Mos.to

secutive

,
•-

Quota'

Divs. Paid

billion annually.

at which money

Extras for

Con-^

Ywrs Cash

Current expendi¬

^xceed

Approx."

% Yield

Including
No.

technically;

research

Nation's Business Growth

not including'

million

Indispensable to Investors and

r* /

States,

one-hall'

over

whole

optimism concerning the future is

Over-The-Counter MaAet?

the
suf¬

tional

of this world market.

5,000 U.

meaning
7 '/ V-;--,

'.:k.'7.
are

United

the

located

This has all come

the

within

reflects

and

are

for

other countries through¬

the world.

about

and

intermediates

■

There

new

endeavor."

purposes,

government, colleges and univer¬
sities and non-profit institutions.;
These industrial laboratories hire;

longer

merely^&kpbf% but muste carry wit
full scale operatidris within many

finishing

industry,

awareness

life)
has brought about a change in the
mode of operation of American
concern within them, but has not
seriously
affected
the potential
and. desire

its part.

Of course,

economic

increasing

pharmaceutical industry will play

ceutical

another

but

various

;

of these countries (which is
indication
of their

many

of- human

new

than 5,000f
industrial research laboratories in
•

nationalism

growing

,V The
Standards Drive

World Living

V.V..7--\

total.

our

fields

ficient.

make up a* good percentage

areas

who wish to capi¬

nities for those

in all

However, for
broad r general

Continued from page

new

Thursday, April 18, 1957

...

Starting

Page 62.

First Bank & Trust Co.

(Madison,

General American Oil

n.a.

J.)

f 1.14

5.00

First Bank & Trust Co./v

(SoutbcB^nd)

Company of Texas lias filed application for listing

FIRST

BOSTON

CORP.

j
-

„

3:6

51 Vi

9.8

Investment banking

its stock

tire New York and Pacific Stock

See

•

Exchanges. We hope

listed

the

National

Trust Co.

0.80

2OV2

3.9

1.50

2.4

(N. J.)_.

First Natl. Bank of

thirty largest oil companies in

Atlanta

1.00

37 l2
36i 2

4.4

2.50

many

First Natl; Bank of Boston

things. Marty people have helped and

5.0

1.35

441-2

3.0

173

2.85

655s

4.3

contributions has been the wise and

First Natl, Bank

con¬

(Chicago)

First Natl. Bank

contributed. One of the major

handling of

our

First

stock

ceases to

over-the-counter security, our

friendship,

respect

Bank

not

diminish and

welcome this occasion

tribute

Nati

3314

4.2

2.8

1.00

¥2

3 2

1f54i4

114.1

H2.25

3.00

1.40

133

1.00

*32

4.50

Portland

2.00

533i
62

3.8

2.6

1.20

n.a.

First Natl. Bank (Wichita)

6.00

300

•

-7

Co.

—

2.0

Trust
21

1.15

2844

4.1

t0.94

3014

3.1

Bank

'V\

Trust

.92:

Paterson, N." J:___;^l

First National Bank

/v...

—

Bk. T. (Okla. City) -30

First National

(New Haven)„

Natj.

Bank

•

3.7

3.00

First

-f

3.1-

Co.

4.0

*38

Bank (St. Louis)__

First National

2.0

4914

First Natl. Bank (Shreveport)

* •

3.9

113

__w

■

2.2

3522

First Natl. Bank (Tampa)
I

575

C.)-

(Mobile)

First Natl. Bank of

them.

3.2

Fort

First Natl. Bank (Omaha)
First

pay

381^

1.40

First Natl. Bank (Miami)

2.6

305

16.00

First Natl. Bank

for these dealers will

Natl, Bank (Jersey City)

First Natk Bank (K.

and appreciation

*40

First Nati; Bank (Memphis)
an

First National
Worth

our

11-22

First Natl/Bank in Dallas

securities by the fine securities dealers who

specialize in over-the-counter trading. When

8.00

-94

(Cinn.)_____

First Natl. Bank of Denver..^

structive

•

___

2.7

1.60

*28

First Natl. Bank (Baltimore).
First Natl. Bank (Binning.)__

America has been based

32.

pare

Bank

First City 'Natl. Bk? (Houston
First Natl.; Bank of Akron

"Big Board" by the end of this month.

Our twenty-year growth into one of the

Company's advertisement

First Camden

t2.90

...

Trust

—T 00 -r1 10^

-r•

(SCranton)

2.20

3.7

71;

5.5:

DALLAS

TEX AS

\l-

First National Bank and

«'T-'

Trust

^ERICAN

Co.- (Tulsa

32 4

.,4.20

2.60

I___r 144

New York

rrrf

i-'M-

v' *

,.
'

Bank

Roanoke...^

First National

Trust

2.50

■

Sav-.

ings Bank of San, Diego

J| | I

First Pennsylvania Banking &

.fl-30

Trust

Details

Co.
not

Adjusted

(Phila.

"■ '■

3.37 "

142

•

2.15

complete «s_tQ possible longer record.

ftor stock- dividends,

4.0-

'■

GENERAL AMERICAN OIL COMPANY of Texas

•

3.8

68)3

v
■

First National Exchange ' >

3.8i;.

First National City Bank.of

splits/ etc.

5.1
+•

•
.

;
...

f>abjisl>ed information. regU'rdihg recent -'dividend-payments..
iBtock dividend ;or"2.94V "(3,600 shS.) was paid on. Jan. 25, 1956.

n.a-.No

Volume

Number 5830

185

The Commttcial and Financial Ohr&nicle

CI843)

Qver-The-Counter Market

Continued from page 42

Approx.
°b Yield

secutive

12 Mos.to

Years Casti
'

Dec.

Divs. Paid

Quota-

tially corroborates this estimate.
Company after company reports
that 50 to 75% of its current sales

tion

Dec. 31.

Paymts. to
Dec. 31,

1956

31,

1956

come

Security Corp.

1.50

hoiking c-'fli'-ny

First Western

Trust

98
Serves

Massachusetts

5.6

products
where

i 21

Telephone

■

•

.'-,1.00 i

•62

1.6

0.625

11V2

5.4

0.84

1734

lor

4.7

count for well
our

industries

and

gas

Gears

167/8

*■

7.1

16 /

iio

17% ;

^ii-^i^._-i_tapping

.,
ftr T

Antibiotics

certainly look forward

hopefully to the benefits to be
derived from research,
although I
certainly do not wish to give the

Pfizer
un¬

case

some

research

companies

reservoir at

open the

industry is

this

concepts
which,
to us only 15
years ago.
In
antibiotics, for instance, new
and more powerful
agents are still
being uncovered and will continue

new

then

and

one

tap at the other to have

products

also proud of

asments, many

flow

out.

which

could

beginning

are

••'

t0.49

'-.:V

just

combinations,

appeared

aimed

directly
I

the

these

Continued

■

•>

1.1

1.50

2712

5.4

1.00

3.3

301V'-

3.3

■i-A

' 21

Mass.

fabrication

AJ A-/

Corrugated

Pa-

w—A^-A/

1,00

•

Corrugated shipping containers'

.Fort Wayne National* Bank >;■.

(Indiana)'
Ft.

A-

Worth National Bank——

Fostoria

Pressed

Industrial

Steel

.2.00

3.4
4.0

7.7

1.00

Corp.

1.00

25?.' A-

2.00

lighting units
"

Fourth Natl. Bank of Wichita *
::32
Fownes Brothers & Co.—A—
10
(. Gloves %
-A,./
A.v

•

1.3

0.15

3.4

0.95

16%

5.7

'2.50

79%

3.1

0.30

0.50

0.6

2.75

25%

10 9

2.25

GENERAL

...

Fram

Corp.

Manufacturer

watei

filters

Franco
Oil

of oil,
'

%AA/A////%'"/*/

Wyoming Oil Co.—

—

CORPORATION

and

development

Largest American multiple line market dealing exclusively in Reinsurance

FTank (Albert)-Guenther

Law,. Inc.*
1

Advertising

CO.—A—

insurance

Sec

•

FIRE, CASUALTY, ACCIDENT AND HEALTH, BONDING AND MARINE LINES

Company's advertisement

Franklin

ALL

LIFE

INSURANCE
Life

2.5

agency

FRANKLIN

REINSURANCE

air, fuel and "

"production^, exploration

Process

Co._„

FINANCIAL

4k.

pa^c

STATEMENT, December 31, 1958

V.Yarns dyers and manufacturers

Frick Co. ______..A A

equipment

ASSETS

7.5
t."

Refrigeration and air conditioning
*'

Cash in Banks and Office

";/A
A
A//
Friedman (Louis) Realty Co.
,

New

York

Petroleum

production,
marketing

Fruit of the
Cotton

Investments:

4.4

16%

1*1.67

2.00

C-"

8.4

ment Bonds

/
.

Manufacturing heavy duty trausmissions, forgjngs and axles
Fulton Natl. Bank (Atlanta)

1.25

Galveston-Houston Co.

1.00

49,670,970

fl.89

34%

5.5

58%

3.7

29,672,320

Funds Held under Reinsurance Treaties.

.2,433,395

3,567,058

26,770,983

Reserve for

Other Common Stocks

3.4

Expenses. $ 41,665,708

8,676,925

Subsidiary
Companies.

11.8

GARLOCK PACKING
CO.-; 52
I Mechanical packings, gaskets, oil*,

f 1.96

Reserve for Claims and Claim

6,928,589

$23,926,324

Stocks of

2.8

Manufacturing Co.—

Reserve for Unearned Premiums

...

Preferred Stocks

Brushes

Fuller

-T

Other Bonds
11

Loom, Inc.——

goods

United States Govern-

1.5

refining

Fuller Brush Co., Class A——
'

_4'0.24

Frontier Refining Co.j:_,_and

0.40

City real estate

LIABILITIES

';A

Commissions, Taxes and

•

other Liabilities

8,225,103

♦

Holding

seals
•

and

Sec

Bits

company.

Total.

Gary Natl. Bank (Indiana)

page

Natural

Kansas,

distributor

gas

Missouri,

450.

1.36

24%

5.6

fO.SO

33%

1,169,377
.

Surplus to Policyholders

.$124,753,525

Total.

35,023,336

41,623,336

......

.$124,753,525

.........

8.8

8.6

Securities carried at $6,410,723 in the above statement
stocks owned
ance

are

valued in accordance with the

Commissioners; if valued

are deposited as
required by law. Bonds and
requirements of the National Association of Insur¬

at market quotations, Surplus to

serving

Oklahoma

585,002

0.9

company

Gas Service Co._,__
.

4.00
0.60

Surplus.

.4,591,960

...

.......

Total Admitted Assets

holding

90 days due)

Collection

Other Admitted Assets

61.

—

Gary Railways, Inc

over

Accrued Interest.

,1'*

mechanic." 1

Company's advertisement

Transportation

(not

industry

Capital ....,..$ 6,600,000

.111,478,597

Premium Balances in Course of

Policyholders would be $36,551,633.

and

Nebraska

GENERAL AMERICAN
Crude

OIL

oil producer
p ->ge

EDWARD

*18
Automatic
and

controls

for

DIRECTORS

4>.

1.00

20%

2.6

pressure

temperature

General Industries

Plastics.

Also

HENRY

Co,

makes

small

BRADDOCK

1.65

CATHCART, JR.

President

N. BAXTER

JACKSON

Chairman of Executive

WHITNEY STONE

Committee,

President, Stone A Webster, Inc.

Chemical Corn Exchange Bank

tric

ROBERT I

Executive Vice President

General Crude Oil Co.—
Southern producer
^

JAMES A.

Chairman of the Board

4.9

1.00

G. LOWRY, JR.

C. BRUNIE

President, Empire Trust Company

4.5

FREDERICK K. TRASK, JR.

RICHARD K. MELLON

Payson A Trask

Chairman, Meilpn National

elec¬

motors

WILLIAM

Bank and Trust Co.

E. HALL

ARTHUR

General

Manifold & Pig. Co.

Commercial

Metals

Marine

and

19%

6.1

REINSURANCE

LUTHER

casualty,

bonding,

fire

1.85

45%

Vice

4.1

Boring, milling and

end

ETHELBERT
CARL

N. OSBORNE

WARFIELD

Satterlee, Warfield A Stephens, Esqs,

G. HOLBROOK

J. DUGALD
DONALD B. SMITH

President,

WHITE

President,

Economic Consultant

White Securities

Corporation'

i.i.

f 1.19

i39%

3.0

Tool

.2.00

31%

6.4

llome

drilling

turing

Bennett

OJfice: 90 JOHN STREET, NEW YORK 38,

Midwestern Deportment:rt012 BALTIMORE BUILDING, KANSAS

machines

Manufac-

Co.

■

1.00

1.4

cloth

—1

Details

not

-1 Adjusted

complete

for stock

possible

dividends,

tii' £

•

Kidder, Peabody i Co,

HETTINGER, JR.

T. Mellon and Sons

Gilbert

BUSKIRK

production

Giddings & Lewis Mach.

Wire

B. VAN

President, T. Mellon and Sons

lines

Marble

Vice

FREDERICK L MOORE

Cleveland, Ohio

page

„

lazard Frires t Co.

rpachinsrv

CORP.

Hall, Haywood, Patterson & Taylor, Esqs.

7.8

>1.20

Corp,—

other

GENERAL

allied

ALBERT

General

All

0.49

printing

splits,

longer record.
etc.

7;,

Continued

on" page

'J.

*»

i, •

now

staphy¬

lococci, a .group of disease-causing
organisms with amazing adaptive
resistance.
New antibiotics, and

5.0

just

defeat the

synergistic

are

past accompllsh-

our

to be uncovered.

Wayne

per

have far from

the

•

Springfield,

steel

forefront

Furthermore,

Bridge Works_—__

Structural

Fort

;1.35"

Wallace, Inc., Class
/ B, non-voting
store,

can

pharmaceutical

exhausted

■

;

>Forbes &

Pitt

impression-that-it is only neces¬
two-thirds of sary to pour money into the re¬

over

past prog¬
dramati¬
realized
that,

most

within the life-time of
most of us
here in this room, the
average life
expectancy has been increased by
20 years.

somewhat

com-

antibiotics,

industry's

A:'/.--A •/

Mineral Co.—:
Chemicals omi minerals

Dept.

our

is summed
up
when
it
is

•

A,AA-./

.•

the

7.5

transmission..equip, V'-p:**

Drilling, reaming,
r machines

were

-Newer

effort, dedicating 4 to 5% (and in

Foote

Fort

and

Foote-BurtvCo.

1.20

chemical,

Foote Bros. Gear & Mach._—

were new

business.

The

14 /
oii,

which

products

This

panies.

The4

cally

7%) of each sales dollar

thie electrical equipment

and

from

unknown.
exists

■

Corp.____

Fluor Corp.
Plants

yet

situation

come

research.

known less than 10 years ago~ac-

Telephone company

from, products, that did not
RCA estimates

60% of its income will

same,

►

Operating public utility

Florida

4.2

comiiiuiii.RS

Florida Public Utilities Co.z_

■J

:/ 3.00

37(2

National Bank

(Jacksonville)

1.60

such

tranquilizers and
health drugs.
However, I

believe
ress

higher than the chemical
industry
-average and is probably exceeded
only by the aircraft manufacturers

that, 80% of its business results
from products which were not on
the market 10 years ago. duPont
has predicted that in 1970 at least

3.8

Bank

Florida

391,2

much
to

exist 15 years ago.

First

enumerated,

Drugs and Biochemicals

Based

Diys.

Including
Extras for

•*

• •

mental

Future of

Nation's Business Growth
Cash

corticosteroids,

Indispensable to Investors and
No. Con-

N. Y.
CITY

5, MO..

have
market

specific

page

Financial Chronicle

The Commercial and
44

1&;:195$

Thursday, April

...

(1844)

combined, microbiological and
techniques. It has been

Continued from page

found that the

and Biochemicals

Future of Drugs

It is reasonable to ex¬
pect that still newer antibiotic
agents will become available for

organisms.

diseases caused by
bacteria and even viruses.

other infectious

viral diseases are now un¬

The

attack and they

der

The

science.

is,

Salk

will yield to
polio vaccine

course, a prime
is only a start.

but this

underway

now

example,
Work is
oral, live

preparation to replace the
present series of injections. Also

virus

antibiotics

may

tion in the cure

The polio
in

interest

tions,

phases of anti¬
Vaccines for the

other

infec¬

respiratory

cold,

common

find an applica¬
of this disease.

vaccine has stimulated

research.

viral

too far into Ihe distant future

let

return to the

seeable again.

here,

ly than

fore¬

tremendous

activity in the cancer
is attracting
government, academic, and indus¬
The

field.

And

together with other
experimental results, is lending
more
and
more
support to the

ventive

medicine

make

would

individual a potential cus¬
tomer, the healthy as well as the

every

sick.

amount

the

success

sults

this

entire program

Medicine

re¬

may

of science.

practiced. According to this
theory, the body is in a state of
equilibrium and disease is a dis¬
tortion of this equilibrium in any
one

have

fest.

of which
previously not been mani¬
The treatment of disease will

of many ways, some

involve

than elimination of

the causative organism.

This will focus more attention

hormones, vitamins, enzymes, the

system, the reticulo¬
endothelial system, and the entire
endocrine

complex chemistry of the body, its

and cells.
This
could result in an uncovering of
many of the secrets of life itself.
Maybe I have wandered
glands,

little

foods

the

There is some healthy

being
will

hydrocortisone which in
phar¬

turn followed cortisone. But

maceutical companies do not con¬

this

sider

the

end

assume

and

newer

there will

and

able at lower costs has led to the
industrial

-V

we are looking
to 1965 with confidence.

application to synthesis

why

3.2
8.6-

75%
"

•■.

2.9

fl.00

Multiple line insurance
underwriter

Glens Falls Portland Cement
Portland and masonry,

Globe

/. .7..I.

7^,7 7

Hose, belting and packings

Employees

"0.35

d0.50

1.30
-l.du

Insurance.

Insurance—casualty

,;r«

Storage Co.

*'7

5.9

■

2.4

o*V2

" '

fire

and

Warehouse

Trunk

6.00

260

2.3

2.00

3.1

——

manufacturer
—

;

6.3

0.80

16%

4.8

1.70

Graniteville Co.

1.50

32%

4.7

fabrics

Cotton

Great American Indemnity

Company
Diversified

insurance

Co.

(N.Y.)

insurance

Diversified

0.60

*32

1.60

2.0

3.00

277

Works
Shipbuilders

engineers

and

Southern

Great

accident and

Life,

Co.

Ins.

Life

health

West Life Assurance

Great
Co.

(Winnipeg).

1.1

accident and health

Life,

Green

*20
*33

1.05

Griess-Pfleger Tanning Co...

*16

(Daniel)

House

Co.

7.3

23:

5.60

Green Giant Co., Class B____
Vegetable canning & distribution

76%

4.6

slippers

Leather

tanning

Grinnell

■

7.1

1.00

"77

Corp.

,4.00-

85%

4.00

3.5

4.7

18.00

;

2.3

.,1-13

fl.95

Sprinklers «fc plumbing equipment
Guarantee Co. of North

America

I Fidelity

(Montreal)

(N. Y.)_
(Dallas)

Guaranty Trust
Gulf

forward

Insurance

Fire

and

360

5.0

surety bonds

and

Co.

casualty

insurance

Gulf Life Insurance

Co..

1.6

0.50

30%

f0.40

31%

1.3 v

141.40

Fla.)__.

37%

3.T

1.00

37%

2.7

f0.95

27%

3.4

accident

and

•

Glass

fibre

insulation

; u

products

Hagan Chemical and Controls,
Inc
•

Water

Hajoca

chemicals

treatment

Corp.

■___

merchandise

distributors

...

copying

papers,

processes

steel

products

52%

■

fO-93

1-4

16%

" 0.75

5.6

;

Hamilton Mfg.
and

■

Haloid Co.

Wood

(

Halle Bros.

Photo

supplies

Building

Ohio

.* ;•

Hamilton National Bank
-

(Chattanooga, Tenn.)

3,3

10.00 7 300

*52

Hamilton National Bank

(Knoxville,

Industrials

—

Co., Class B...

refiner

Producer,

Tenn.)
-

Oil

Hancock

Public Utilities

marketer

<fc

8.00

fO.59

325
r

2.5

1.5

;;

petroleum products

Hanes

and

(M.

72.20

•'3.00

105

g2.00

43 %(

104

2.00

36%.

*14

Knitting Co..

(P. H.)

Underwear

Hanna

0.10

40 7
.

^5.5

sportswear

A.), Class B

124

Coal, Iron, steel
★

★

Hpnover Bank (The) (N. Y.)

Fire Insurance Co..

Hanover

Multiple line insurance

Hanson

•

CO.

Harrisburg Hotel
.4Penn-Hartis

Grain

INCORPORATED

(Chic.)

Co..

^2_

Fire

Diversified

11.40

.1.1

455

f'3.00

•-

Insurance

:1.00

11.1;

--i

'<;■
.....

2.5

-it1

3.00

;

•7 2.2

135

insurance

107

Hartford

Gas

Hartford

NEW YORK 6

-;21

Hotel !•

handling- equipment

Hartford

BROADWAY

.: 8%

Electroplating and polishing
equipment

Hart-Carter Co

5.5

FRANKEL &

v4.6 I

.....

Winkle...!

Van

Harris Tr. & Svgs. Bk.

Natl. Bank & Trust

Hartford

Steam

Co.

2.00

38%

5.2,

127

1.325

3 9

2.50

tl.90

WHitehall

3-3960

Teletype NY 1-4040-4041
'

Private

Wire*

Boiler

PHILADELPHIA,

DENVER

and

SALT

LAKE

CITY

Details

not

t Adjusted
d

Boiler

Insp.

machinery insurance

•

to:

and

Harvard Trust
•

•

(Cambridge).

complete

for

3.2

~—

'*7

4J2

to possible longer record.

stock dividends, splits, etc.
stock dividendr authorized

Adjusted for 200^.

...

;

c-Y

by-sharehoJaprSf

27, 1956, Earlief, on'March 15, 1956, company paid ^ stock
dividend "of one shar-t of class A common for each "10 shares"held,
Dec.

g
•1

•

•'

;
;■

4.8

Gustin-Bacon Mfg. Co.__

Securities

.;•••
•

(Jacksonville,

Unlisted

'•

Great Lakes Engineering

Life

Dealers In

(. •*'*"

;:-7

-•

Grace Natl. Bank of New York

ice

6J2-.

'f 23

Well-known ice cream retailer

Goodall Rubber Co. (class A)

Cold

5.6

-^53 r^l-50 < 24'

—

elevator

Grand

1.00 71

Transit;

Good Humor Corp

Govt.

20%7;4.2-

Elevator &

Co., Ltd.
Grain

1.- 'J.

allied lines of insurance

and

Goderich
•

fO.85

*£

America

Fire

cement"

Republic Insurance

77 Co.

and better agents for

5.6

0.45

11 '

•

~•

manufacturing

Brick

seems

that one or all

We could, of course, go on and
the on
speculating about what lies on
treatment of this dread crippler.
•the
other
side
of
the horizon.
The development of processes for
However, it is hoped that this may
making these compounds avail¬ be sufficient to
give you an idea

tools may come

investigated

r;; 12

Glens Falls Insurance Co

increasing

All these techniques are

61%

'■*'

tools

Glen-Gery Shale Brick Corp.

result of

our

successfully developed.
may also assist us
squeeze the last drop out of
our
petroleum reserves. Experi¬
ments are now underway utiliz¬
ing these small servants in terti¬
ary oil recovery after all second¬
ary methods have played out.

with

followed

against arthritis are even now
us.
Delta-1
hydrocortisone

use

certain to be

4.7.,

Pulp and paper manufacture

to¬

1.95

Co...______

lathes and

Turret

Microorganisms

for

compounds

•'

1956

•

Glatfelter (P. H.)

Great Amer. Ins.

new

logical to

to hope for success.

steroidal

demands

bacteria.

prophylactic as well as
therapeutic lines, and we have
reason

get

from
algae, higher plant tissue, animal
tissue, or iron or sulfate reducing

New

two

cultivation

almost

seems

These

spice to the search for new
knowledge in this area. Cardio¬
vascular diseases
are
being at-

every

these

when

population.

little

taced

growing

are

practical reality as

succumb to the advances

soon

about

Machine

Gishoit

Detroit

controversy now as to the etiology
of this
disease, but this adds a

The whole

patient will be treated and many
weapons brought to bear in order
to return his body to the equilib¬
rium
state
as
soon
as
possible.

organs,

also

Dec. 31,

about transplants

gether?
Microbiological

Atherosclerosis, another major
killer of the elderly adult, may

reality, we shall see the concept of
maximum health established and

surgeons

future

years.

Probably before preventive
medicine is a complete practical

learning more
and
implants. Who can say what the
results may be sometime in the

next five

be available within the

Preventive

Payrots. t.»

31,

1956

3.15
1.00

120

(Philadelohia)

Bank

artificial;conditions

under

and

cancer.

Dramatic

coming.

are

treatment

the

and

chemi¬

been had with a handful of

cals

exciting

and

cells

already

has

A limited

way.|

tion
Dec.

31,

Exchange

Trust Corn

Girard

This

discovery
as
the
finding
that
infectious
diseases are caused by microor¬
ganisms, and would open whole
new fields for chemotherapy.
The future
may
also see us
growing entire new organs as re¬
placement parts for our bodies.
Tissue
culturists
are
learning

could

in the blood. The
could
have
exciting

disturbances,

metabolic

ment of enzymes

Based on

1956

Oivs. Paid

theory that mental disease and
psychotic states may be caused by

Wroblewski at the recent annual

well

drugs,

new

This could bring

pharmaceutical industry, but these
changes need not be destructive;
perhaps quite the opposite. Pre¬

Dec.

Years Cash

Quota-

12 Mos. to

secutive

also

can

in the field of mental
disease. Activity in this field has
been stimulated by the advent of
the mental
drugs and tranquil¬
izers.
The effectiveness of these

estimated that half of the cancers
are now curable by present tech¬
niques if detected early enough.
But early detection, has been the
major problem.
Now the possi¬
bility of detection in the premalignant and pre-invasive stage
has been opened up by workers at
the Sloan-Kettering Institute. This
method
was
reported
by
Dr.

technique

advances

Extras for

expected

has

The American Cancer Society

Approx,
% Yield

Including

Further

optimism.

possibilities in the war against this
major killer* Over and beyond
about radical changes in the entire
this, chemotherapeutic agents may
of disease.

Cash Divs.
No. Con¬

Chemotherapy

prevention rather than the

the

cure

and

chemistry.

measles may be just meeting of the American Asso¬
This all fits ciation for'the Advancement of
the coming theme of pre¬ Science
and consists of measure¬

medicine, wherein more
and more emphasis will be placed

Nation's Business Growth

greater

microbiology

Indispensable to Investors and

yet able
that the

even

see

all fronts-

tremendous

will

integration

program

trial attention.

there

our chemists are
I personally feel

do.

future

and

ventive

p.agp,43.t

Over-The-Counler Market -^77'¥:/7:;

these molecules more efficient¬

There is at present

tiny organisms can

out certain transformations

carry

"around the corner."
in with

Continued from

chemical

Plus 20Sr stock dividend paid on Aug. 31,

1956.

^duiJl€ 185

Number-5630

The Commercial and Financial Chronicle

-,vv

Continued

<//'//'"J"?"

/' "• h' ■*•'■■*
JkKaEkakAM)iuk|gE|p4|i 1—lailllH ' ■Mil U'^-- '-V...

'*£'£

' Nv

■

,j"

K-

from'page 2 7;
'.r

■

(1845)

C ^
4-*-

•

and eliminate sales in

,;\-

■

/ "* •-' *"''

(

"••*«'•

i.-.v,-'

■:«>.

'i,

\
•

-i,;

Extras for

^Vv-

Years

d»*s. Paid

•»

1954

%y v;;;..• ;,/'j/./^■ - ■:.;■•
I
Co._______ -52
2.50.
New-'■■' /■■-:•':"■•/" »"'•' •*'"'■

v,*■

Opevaxm 1»

.Bale ofjgas

*/-}-a \ 'v'^

■

Haverty Furniture Cos
Holding,

■■?:. !
•

company

Beer

and

jl.16

/,'

:,r*,;-•'••

5.8

;•■'>

0.20

5.9

dairy products in

fO.47

'/■'/' Pennsylvania

Co._

1.6

1.00

Heywood-Wakefield Co

--I"

2.50

Maker of furniture

- : 5.7

17i/2

v-1'' /•/'■'"'

6.9

C22

fl.92

2.3

__________

fl.16

25V2

4.5

Department store

Hines

(Edward) Lumber Co.

show

4.8

tural

0.80

8!4

with

9.7

distance

2.00

40%

4.9

,.y

0.34

5%
vw..-:

?■.

h0.85

14i/2

Drugs, Inc

15.00

2.10

front

23.1

18.00

470

13
2.65
7/ '"'''

/ V'; /

3.8
5.0

Consecutive

Dividend

22y4

food

(F. C.)

38%

fabrics,
and

fl.90

its

total

sales

were

have

the dollars

in the

form

same

been

used

other

phases of the company's business,
at

comparable rate of return.

put it another way, if this diver¬
sified company wanted the aver¬
return

age

the

for

chemical

in¬

dustry of 15.2% and, at the same
time, wanted to continue with the
manufacture

and sale of pesti¬
cides, the latter would have to
produce 19% profit on sales of
pesticides to offset the low turn¬
over
rate of only 0.8, which is
typical of the agricultural chemi¬
cals industry.

What Can
In

Done?

industry with major seg¬
ments paying as much as 7% of
sales for research and develop¬
ment, including expenditures for
an

tolerances

for the

the

Miller

Bill,
for

the

chemical industry and allied
products, it has been important to
large expenditures

know how such

handled

order

evaluate

total

capital necessarily
employed. Admittedly, it has been
on

difficult to
did

expense

tive

these items but

assess

notice

that

when

such

is added into administra¬

sales costs, it had the
reducing return on in¬
vestment by 10% to as much as
and

effect

then

existing competitive
,/

Conclusion
There is nothing new or start¬
ling in the idea of making profit,
responsibility for
a
profit, or of portraying results
of management's

with charts. All of what has been
said could have been more effec¬

tively and

simply said

emphasis,
homespun fact that what ap¬
plies to a peanut stand, or to a
the

colossus

such

General

with respect to

earning

able

dollars

return

expected

apply

engaged
in
chemicals. A simple

pany

■

consider

judge ourselves professionally
same as others. We can
keep
records
and project
from them.
can

the

have good business prac¬
to sales, credit, in¬

can

tices

ventories, and profit as is the case
with our contemporaries, in or out
of the chemical field. Agricultural

chemicals industry is a fascinating,
exciting business. We have been
immature but there is no com¬

pelling

reason
why
we
must
continue. Maturity will require us

chart

our

course

emotion.

being

sively with the best of them.

earned

such

research

agricultural

important

and

legal

items

expenses

must be included.

Referring again

formulators, the

willingness
needed.
better

specifically to

average

percent

of profit is so low as to indicate

the dollars

jet

and

area

the

average

chemicals

industry,

profit on sales for the entire

necessity
tunity

to look

reduce

for the

oppor¬

manufacturing

enginek

0.70

i 2.00 /

' 37%

that

time

many

will
us

have

;

2.8

/V.C

,<■: 1.55

f2.00

2.1

h,65

•''

V.''

f»; 4.7

and

3.1

' *

GAS

0.98

20%

and

water utility
„.#•
Company's advertisement

Singer, Bean &'Mackie, inc
40
i;

WATER

CO., INC

page

4.7

New York 5

Exchange Place
•

••

HAnover 2-0270

NY 1-1825 &

1-4844

56.,

Indiana National Bank of

Indianapolis

123

t2.20

3.2

0.50

3.1

tO.67

20%

3.4

;'.2.00

5.7

*30

Indiana Telephone Corp

4.00

4.6

31%

3.7

3.3

Operating public utility

Indianapolis Water

FIRM TRADING MARKETS

Operating water utility

Industrial Bank of Commerce

(New York).
Industrial Mortgage &

IN OVER

350

STOCKS
XV
V'

Trust

(Ontario)

•f

: "
>t

Savings, trust and mortgages

Industrial Natl. Bank (Prov.)al65

Insley Manufacturing Corp._
and

cranes,

sale

fl.18
.

1.00

shovels, etc.

Pennsylvania

Direct Wires

con-

Philadelphia

Insurance Co. of the State of
37

1.40

3.9

Eeynolds & Co.

Los

Angeles

Fewel

& Co.

Diversified insurance

Dallas
not

complete

t Adjusted for
a

as to possible longer
stock dividends. sDlits. etc.

record.

Dallas Rupe & Son, Inc.

Including predecessars.

h Effective

March

31,

quarterly.

1957

dividend

rate

was

changed

25c

MPlus 5%
<

*»

return

can

do
on

da;at—

stock dividend paid on Dec. 31, 1956.'
Listing on NYSE scheduled at. time of going to press.

Continued

page

will not survive.

2.7

and

(Boise)

wallpaper

Sugar refining

.♦Details

urgently

will want to do it—and in

fl-04

industry

pigment colors

-struction

our

deci¬

employed is essential.

Imperial Sugar Co.____^

Manufacture

sub¬

Imperial Paper & Color Corp.

Co.

plan

commitment

in " the

It is certain
that

and

2.8

Ideal Cement Co._

INDIANA

ac¬

understand

can

better

•,

Manufacturer

curately and with somewhat less

in¬

equipment

agricultural

approach is *
net profit, turnover,
and return on capital
necessarily
employed.
Regardless of our volatility, we
to

4.0

58 *

radar

>A leader

Motors,

a reason¬

used, can
to a com¬

problems

chemicals,

others. All that has been in mind
to restate with some

20%. Obviously, to know what is

time,

under

compared to less than 2%

condition.

4.0

1.40

devices

Idaho First Natl. Bk.

See

turnover
on

by 18% assum¬
that these dollars

face

felts,

precision

control

assemblies ' for

1.60

Xl-T-E Circuit Breaker Co.__

•

Its return

agricultural

3.2

papermakers'

industrial

Gas

could

dollars

course,

service to customers to the extent
that it could be afforded in the

products

& Sons______

struments

with

di¬

the

rendering of sound and reasonable

Bank of

Columbus (Ohio)
Confection and

1.25

the

Huston (Tom) Peanut Co

;

company

and,

pesticides and if, at the

6.3

utility

Huntington National

Electrical

chemical

circumstances,

fined to better inventory
controls,
improved '•• credit
policies * and

steam

Texas

Manufactures

upon

1.01

these

Houston Natural Gas Corp.__

Huyck

1.40

activity has

sales

capital.

com¬

electric and

and

gas

' "

this

average

ing, of

return

therefore, had
15% earnings on

was

such

are

Firm's

invested capital for
chemical company.

diversified

Housatonic Public Serv. Co._
pany,

Chemical

necessarily employed would be
15.2%. If this company had 25%

.s-

Southern

50%

approximately

Cash

Payers From 5 to 10 Years Appear in the
Second^Table Starting on Page 62.

utility

evident

industry

looking at these data, it
be appropriate to reflect
the effect that an agricul¬

Suppose

public

for

than

tural chemicals

Connecticut

us,

der

versified chemical company would
have reduced its return on its

com¬

While

might

6.9

return

resulting in a return on
capital employed of 12.55%."Un¬

invest¬

previously
relating to re¬

charts

the return

Over-The-Counter

Random

investment and also Chart

Diversified

City

Syracuse, Inc

606 rooms

bring

disclosed

the

upon

Barbizon, Inc
York

prepared to
which
could
be

at
higher
than in the case of Random Agri¬
cultural Chemical Company.

5.1

301/4

Vacuum cleaners

New

been

Obviously, from the

large

twine

Hoover Co., Class B____

Return

Hooven & Allison Co.r._____

Hotel

has

respect to return

that

5.9

11%

0.60

Indiana drug chain

Hotel

5.9
V'.'j

^"/

insurance

and

exhibited
B

phone

(Brooklyn, N. Y.)

Ropes

Assuming

percent of sales

■:/;/"%///•//:

parisons
turn

Home Title Guaranty Co.

Hook

1956.

Chemical

ment.'

(N. Y.)

service

Title

would have dropped from 1.01 to

invested

years.

Agricul¬
Company in line
with the average for all industries

insurance

long

changes

made

cafe-

Telephone and Tele¬
graph Company of Virginia
and

existed

6.2%;-./,

6.6

Home

Local

typify

capital investment of $12,
with a turnover of 0.79;
the resultant return on investment

45y2

Co.

believe

sales volume of $10 million with

:/ 24%

1.20

______

markets,

Home Insurance
Diversified

•Electric and hydraulic power,
industrial steam and real estate

Operation of food
terias and bakeries

Chart

3.00 '"

processing

Holyoke Water Power Co

Home Dairy

which

construct

8%;

y .;-:} 7;; ';

•Timber logging and

sources

600,000

Hibernia National Bank

(New Orleans)
Higbee Co.

and

earnings

company would be reduced from
15%-to -13.25% and the turnover

Chemical- 0.947,

Chart A shows Randoms return

'"v1")-.

form

the

on
investment, which experience
is considered to be typical for the
Agricultural Chemicals industry

Canvas products

to.

We have used certain
figures obtained from

number of

" 37 /../■ 6.8

.''"/T

Hettrick Manufacturing

Company.
facts

Agricultural

experiences of recent

6.2

29V2

vV :,
2.50

;

believe

and

average

results

v., ,v...•

manufacturing

>:•••-•

.••;;•>■: y." -K-:.-,

created

Random

• ■••-

industry. C However, what

our

have

5.5

+»;

„

good medicine. This would in¬
clude, but not necessarily be. con¬

.,■/.

Hershey Creamery

;

■':

0:"'.'

•

ale

Produces

"•'•'

•

*«».

1954

••

>>-^v;/ :..•■•.•*
1.25

Hercules Cement Corp
Cement

1956

Heidelberg Brewing Co

Based

/45%'

•

Haverhill Gas

♦.

v,,,,^

Quota-

12M©s.to'
tion
Paymts. to
Cash
Dec. 31,
Dec. 31, Dec. 31,

///: Haverhill Electric

-».T-.---j,:■<><*.

No. Con-

r—

-s««ti»e

"'•'":.J*''-"■
'•'.
^

•■

' "

'-,'40

management extended Tight down;
the line to the' grass roots would -

m t/ ■

unprofitable

industry,1 better

^^lliiS«ii^^nliie^^0r«iirlli £ ^
'*.'■

^nmjdatiiQhiB^

f-r ^

;•

.eliminate

,
t.

■*

rw-

Chicago
Burton J. Vincent &

Co.

)

The Commercial and Financial Chronicle

(1846)

Continued

forded is to put the investor

from page 5

informed

position

own

of public

investors; and to provide

to tell

registering securities to state
"pools," rig¬
the
required information in its
ging of prices, insider advantages,
and misrepresentation and fraud registration statement and peri¬
odic reports. It is the responsibil¬
fn the purchase and sale of secu¬
ity of the person soliciting proxies
rities.
/ I
tion

against manipulation,

listed

Positive and Negative

Responsibilities
The Commission's
in

both

positive and
negative in
Affirmatively, it is our

job to see to it that the responsi¬
bilities of persons subject to our
jurisdiction are assumed by them;
in other words, that the securi¬
ties laws are complied with. It is

that

fil¬

stock

latest

Nation's Business Growth
Cash Divs.

glibly

seem

the

Congress

secutive

legislative decision
in enacting the Federal securities
laws which should always be re¬

important

the

public
and

statutes

these

but

protect,

the

investor that membered in considering the re¬
seek to spective
responsibilities
of
the
protection af- Commission, of the securities in¬
dustry, and of the investing pub¬
lic and corporations and others
subject to these statutes. This de¬
cision gives emphasis to the word
"free," when we use "free" in de¬
the

securities

these pages?

Reinsurance—multiple lines

and I hope

the

/li/;:

(Bridgeport)
Real estate,
,

5.7

394/2;

3.8

1.00

23%

4.3

••

'■

■

0.10

'*■.

,.v

1.3

;

en¬

281/2

investment

merits

8.8

Ivey

(J.

public

then

mission.

Chairman
To

his

Com¬

the

Water

Island

Long

James

DEALERS

Bonds

that

should

not

sacri¬

then seeking, and we still

vvere

Since

the

stantly

capital

markets

are

necessary

Commission

the alert to

are

the contrary

for

statutes
which

under

find

markets.

New York 5, N. Y.

Philadelphia

the

and

past

several

have

is all to the

achievements

mations

Ins.

"Y**//

/"/

•

for

this

over

good

and

capital

period

*22

women

Co._

Supply Co.
line

the

for¬

administra¬

these

conditions

Julian
1

Kable

the

under

have

conditions

many

new

war.

1955 was

8,630,000—an increase of
33% since early 1952, with about
half of this increase occurring in
1955 alone. Clearly, many of these
new
investors are inexperienced
.ajqd in particular need of the pro¬
tection

crease

3,994
these
■

}

2.00

7.5
*

been

June 30,

new

likewise

compared

1952.

broker

in¬

now

—

printer

and

specializing

paper,

181/2

5.4

4.8

V'Jv'1''

1.60

""f*

V-

•■•v'-

1.70

•

•;

4.4

381/2

*72

8.00

200

4.0

1.25

3.4

6.00 1,150

0.5

(Charleston, W. Va.)—__

2.50

5.0

1.65

4.7

1.00

City Fire & Marine

Insurance

Co.

Multiple-line

insurance

Kansas

City Life Ins. Co.___

Non- participating

Kansas City

Company
Title

Insurance

...

insurance

and

tille

abstracts

Kansas-Neb. Natural Gas Co.
Natural

sion

gas

*33

page

life

Title

production, transmis¬

distribution

and

6.4

151/2
^

Utility

equipment

0.60

10%

5.6

1.50

331/4

4.5

2.00

5.4

1.80

27%

6.6

1.00

37%

2.7

5.00

105

tl.44

machines
in

dry

cereals

■

Kendall Company

(The)__^_

dressings, elastic
specialties

goods

textile

Kendall

Refining Co.

Producing, refining and marketing
of

petroleum

and

its

products

Keunametal, Inc.
Hard

carbide

compositions,

ting tools and specialties

cut¬

Kentucky Central Life & Ac¬
cident

Insurance

4.8 :

.Non-participating life
14

Kentucky Stone Co
Crushed

3.8

stone

Kentucky

Utilities Co.___

1.26

24%

5.2

2.25

6.6 "

Electricity supplier

Kerite

(The)

Company__^_
insulated

Manufacture

wire

and
•

vcable

Kings County Trust
67

4.00

K^ngsburg Cotton Oil Cp.___

0.02

110

1.2

t0.76

17%

4.4

0.17

9.1

3.6

Cotton

seed

Kingsport

products

Press,

Inc._

Printing and book binding

Kinney Coastal Oil
Crude oil produced

.
.

are

some

papers

Details not

7.6

161/2

iliOO

protection

Kansas

with

Many of

dealers

inexperienced, and
Continued

!■

1.25

shoes

Corp.

Pulp
food

4.5

Company, Brooklyn, N. Y\

marked

broker-dealers, which
4,700

//'

'' U-4 rjt -1ft

Kanawha Valley Bank

the statutes.

has

pole

operator
• v /
/
| .
Kalamazoo Veg. Parchm't Co.

also in the number of reg¬

exceeds

all Offices

8.0

According

Exchange, the number of
people owning shares in publicly
held corporations at the end of

istered

11 %

,;4 Hotels, restaurant and laundry

investors in

study made by the New York

There

Wire

1.00

a-'

Printing

Kahler

Stock

Richmond

—

Kokenge Co

Women's

involves

problems not present in
depressed markets of the '30s

Raleigh

6.2

Kellogg Co. (Battle Creek)__

Problems

time,

same

the securities markets.

Asheville

equipment

and

CHICAGO

4.00

■

clothing

Electrical and communication

Surgical

the

YORK

4.7 V

Joslyn Manufacturing &

reflect

certain

NEW

421/2

7.3

men's

Manufacturers

tion of the Federal securities laws

Exchange

2.00

4.7

81/4

threading dies

under

Members Midwest Stock

0.30

30
•

controls

Lender

INCORPORATED

1.40

Kearney & Trecker Corp.___

Accompanying

R. S. Dickson & Company

5.6

0.60

Shoe Co

Kearney fJames R.) Corp.___

1819

;:,j;

Service

Milling

Established

a24

ed with it.

Securities

2.00

1.0

credit upon the securities
industry and all who are connect¬

Corporate and Municipal

128

Life

Inc

Bros.,

Johnson

the

reached

great

DEALERS

1.25

6.0

3.2

manufacturing

Standard

Corp.

Shoes

securities

prices

markets

course,

the

DISTRIBUTORS

22%

Refrigerators and stove hardware

highs unprecedented in the ex¬
perience of the Commission. This,

Teletype NY 1-724

1.20

f0.73

farm equipment

Johansen Bros.

our

conditions

the

activity

years
'

the

For

securities

Telephone REetor 24949

6.1

Multiple line insurance

con¬

adapt

our policies so as
accomplish the objectives of the

120 Broadway

32%

Inc.

Magazine

procedures and

Unlisted Investment Stocks

7.7

;-v.'-.

Manufacturing Co.___

Jervis

changing, it is,

ever

and

words,

of the essential safe¬
for the protection of the

not .static but

Common

31/4

2.00

Joseph & Feiss Co

Preferred

0,25

;

insurance

Life

any

effective.

Leased Line

0.3

Temperature and air conditioning

use

seek to make the^ programs con¬
form to the statutes and be more

RAILROAD SECURITIES

Jones & Lamson Machine Co.
Lathes, grinders, comparators, \T

guards

t0.06

supplier

-Valves,

investing public which had been
built up over the years.
Rather

Exchange

5.1

Supply Co.—

water

sized

and American Stock

19V2

Photo-engraving

Jamaica

"The

fice

Members New York Stock Exchange

5.0

1.00

utility

Oilier Engraving Co.

government should not interpose
unnecessary obstacles to the rais¬
ing of capital." Lie also empha¬

Adams & Peck

33%

Jersey Insur. Co. of N. Y

was

5.6

1.70

0(.80

Corp._

Jenkins

H.
Ralph
Demmler,
a
distin¬
guished member of the Bar who.

22 y4

—

chain

Gas

Jacksonville

ap¬

laws

4.9

1.24

B.)

Department store

and
in
dealing with the
problems which are presented to
us,
was
well stated in 1953 by

Beane

I6V4

(N. Y.)____

Irving Trust Co.

Sportswear

basic

Electricity supplier

Manufacturers

Commission's

Co.

Service

supplier

Electricity

Operating

securi¬

2.50

Iowa Southern Utilities Co.

Jahn &

will, give

never

*31

insurance and mort-

igages
Iowa Public
•

proach and philosophy in admin¬
istering
the
Federal
securities

Offices in 108 Cities

1.50

*.*

chain

Restaurant

Jantzen,

NEW YORK 5, N. Y.

Direct

0.80..

Investors Mortgage Company

ties.

The

70 PINE STREET

Greenville

1956

Interstate Co. -.--A----?;---..--;.*

Jefferson

Fenner

Merrill Lynlii, Pierce,

Atlanta.'

1956

■:vtv '

Holdings/LtdL.

//>/

interests

the Commission power to pass on

Trading Department

CHARLOTTE

■j-:

trust—-hydro-electric

Investment

Federal! securities laws do

The

UNDERWRITERS

PaymtS. to
Dec. 31,

34-

utility
> V
Reinsurance Co.

International

markets

speaking of the "free"
terprise system.

Private wire

tion

Dec. 31,

31,

Company.
'public

Operating

Inter-Ocean

Basic Approach

Based

rules

and in

simply contact—

Guaranteed

Dec.

Quota-

prices, quotes, or information,

;

12Mos.to

Divs. Paid:.

us,

% Yield

Extras for

Years Cash

assume

gave

Approx.

Including
No. Con-

should give us, some such power.
The Congress made an extreme¬

not,

For

sell

"raiding"

Indispensable to Investors and

investor what security to

scribing

Interested.
in any

the
The

ing them, not of the Commission,
and our job is only to see that the
informational requirements of the
statutes and our rules are met.

character.

...

state

4he statements of the persons

laws

page

Over-The-Counter Market

and

which side to vote
for in a proxy contest.
It is not
our responsibility
under the acts
we administer to prohibit or pre¬
vent
the purchase
of securities,
though many who charge that we
should do something to prevent
buy

registration statement, the proxy
statement,, and .other filings,' are

responsibility

these

administering

companies

required by our rules.

facts

free

from

but not to prevent

responsibility of the corpora¬

the

Continued

decisions, to as¬
fair markets,
him from mak¬
ing his own investment decisions
and certainly not have a Federal
agency to make his decisions for
him.
It is not our ; responsibility

Objectives and-Programs of the SEC

Current

him

his

investment

sure

make

Thursday, April 18, 1951

...

Acnusted -for

Including predecessors.

complete
stry>v

possible longer record.

ri?rui,e»ds,

splits,

etc.

...

'Number 5630...The Commercial and Financial Chronicle

Volume 185

Over-The-Connfer Market■/' •

Indispensable to Investors and

-i. •

4'-'

■

"Vv

Iqcludihgu

Dec. 31,
1456

Kirsch

v'.iy

'\AT

Company

Manufacture

•'/>- >

Operating, public utility

:v;

Creamery

Wholesale, dairy
ern California

____

products,

moving
equipment

5.0

metal

231s

4.0

3.1

18%

f0.53

3.1

Makes

;

8.0

bottled pickld.s

Kupenheimer Co.
.•

0.30

1.00

wholesales

a n

Tuesday
April,
23

g e,

5.9

clothing

and

men's

investors.

Laclede Steel Co
Basic

steel

Public

5.2

;

utility

-/V'

Railroad

1.175

1.75

5.3

*37

7.50

360

2.1

113

4.50

5.2

0.50

Cochrane, President, who will

re¬

tain after this

ceives

dividend

any

his stock.

the

sale 49.6%

outstanding stock of the

company.

Charles Grant Opens

The company operates an inter¬
state motor freight service in Vir¬

ginia, North. Carolina, South. Car¬
olina, Georgia and Tennessee with
750 pieces of rolling equipment

BROOKLYN, N. Y.
is

Grant

conducting
from

business

—-

Charles

securities

offices

494

Crescent Street.

1.45

17%

8.2

0,30

YY-"

Gregory & Sons, 72 Wall Street,
New York City, members of the
New York
Stock
Exchange, on
May 1 will admit Samuel Sloan,
III, member of the Exchange, to

Savings

(Chicago)

Lambton Loan &

Co.

(Ontario)

First

Investment

mortgages

___________

Retailing Over-The-Counter Securities

5.6

View Trust

Lamston

stock

Admit Sloan to Firm

Operating railroad

Bank

of I 126,000, shares
common
Transportation Co*
priced at $13.30 per $271,547 or $1.09 per share in 1955.
The company, which* started/|n
share was made on April 16 by
1935, with one. tractor trailer und
an underwriting group headed by
Scott, Horner & Mason, Inc. Rep-, one pick-up truck, has financed
resenting the first public distri-. its growth from earnings, and no
bufion of the shares, the under-, dividends were paid prior to 1955.
waiters are reserving 25,000 shares Under a dividend waiver agreed
for purchase by officers oe em¬ to by Mr. Cochrane the stock npw
being offered to the. public is ini¬
ployees of the company,
v, None of the proceeds of the sale
tially entitled to dividends ag¬
will go to the company.
85
cents
per
share
All of gregating
its stock is owned by J. Harwood annually before Mr. Cochrane re¬

offering

Overnight

common

Gregory & Sons Will

Ishpeming

Superior &

Lake

and 24 terminals in four states.

and

(electric, 'gas

water)

Lake

Service Stock Offered

reported operat¬
$7,926,375 in 1956
$5,843,153 in 1955.
1956 was $327,841,
per share on the
stock
compared
with

ing revenue of
compared with
Net income in
equal to $1.31

:/"'

4.7

153

manufacturer

Lake Superior Dist. Pwr. Co.
■

8.00

The company

Overnight Freight

smelting

Co.

Canned vegetables,

beginning

furnaces

Kuner-Empson

x c

';:

and construction

and

fO.99

fO.72

Hardy

>■

Kuhlman Electric Co._
Transformers

46%

5.3

SouUi-

Earth

19-

2.35

the market, special emphasis, will
given y to
'/Knowing. Your
;J Stocks'! and "Understanding the
:
Market." Samuel C. Greenfield,
YInvestment Adviser, will conduct
; the
nine lectures.
!
Mr. Greenfield plans to spend
'several
sessions
analyzing
the
oil, chemical, cement and road
building groups. The course, to
be conducted partly through lecture and partly through a work¬
shop, will give special attention
to such matters as security analy¬
sis, timing, portfolio management
and the errors commonly made by

•t

offered

V;: be

on.invest¬

course

Because of the uncertain state of

1956

1.00

10 r

•Koehring Co.
:

Dec.
1456

evenings,

blinds,1

Kittaanin& Telephone Co.___
Knudsen,

Stock

Paymis. to
31,
Dec. 31,

___________

Venetian

drapery hardware

& Co., members of the New York

tion

Divs. Paid
'

% Yield,

Quota-

12 Mos. td

Years Cash
I'M

•"•v"*,

will

ments

Based.on

•

Extras for

secutive

-r

post season

Approx.

No. Con¬

Investor Course

Nation's Business Growth
Cash Divs.

I1'.

Hardy & Go. Sponsors

(1847)

Since 1939

partnership in their firm.

(M. H.)

Inc

Variety store chain

Landers, Frary & Clark
•f

Lang
:

Co.—

High

;

speed,

Blower

•

die,

and

•.

7V8

fO.63

107

1.10

301/2:

3.6

3.50

65 V2

5.3

f0.49

12%

4.0

351/2

and

STREET, NEW YORK 4, N. Y.

Tele:

BOwling Green 9-2956

Joins Kidder Staff

DETROIT, Mich.—John J.
has joined the staff of
M. Kidder & Co., Inc., Guard¬

Michael
A.

Starting-light equipment for autos

ian

and- aircraft

1.15

Liberty Life Insurance Co.__

1.00

1.50

0.6

165

________

321Y

Building.

4.6

;

With Central

Non-participating

Republic

/y/// Specialists in

CHICAGO, 111;—John A. Ladd.
Trust

Jr.

2.30

men's

Details not complete as to possible longer record,
t. Adjusted-for stock dividends, splits, etc.
y/Y

Continued!

Republic Company, Boat¬
Bank

Building.

formerly with A.
on

page

was

STOCKS

Edwards &

Sons and FuszrSchmelzle &

BANK and INSURANCE

with

become, connected

ha3

Central

3.5

;

(Special to The Financial Chronicle) '

business

Liberty NatL Bank &
Co. of Louisville--

BROAD

Podesta

(Special to The Financial Chronicle)

play

Co.____

Liberty Bk. of Buffalo (N.Y.)

loan

con¬

now

3.8

■

clothing

Small

Cruttenden,
Co., McKay Tower.

8.8

Liberty Loan Corp.

Walker

Joseph Mayr & Company

Mich.—

with

Lee (H. D.) Co.____

Leece-Neville

Financial Chronicle)

RAPIDS,

equip.

utility

Lester

3.8

air moving

Electric

work,

■

Operating public utility
of

fl.28

stain-

Manufacture of

Mfr.

GRAND

nected

______________

tool
%

Lawrence
'

grocer

less steels

Lau

V-Y;V" (Special to The
'

Wholesale

Latrobe Steel
■

Cruttenden, Podesta Adds

Household electrical products, etc.

Co.

Edwin X. Tatro
50

Company

BROADWAY, NEW YORK 4, N. Y.

Teletype: NY 1-3430.

Telephone: DIgby 4-2420
Direct

Telephone

BALTIMORE—BOSTON—HARTFORD: Enterprise

Aircraft Radio

7846,

Corporation
Established

1928

NEW JERSEY

BOONTON,

Offer

COMPREHENSIVE INVESTMENT
;

AND

•:

DEALER SERVICE

;

Designers and Manufacturers of Dependable

ALL

CLASSES OF BONDS AND

STOCKS
j

including

♦.

PUBLIC UTILITY—RAILROAD—INDUSTRIAL

Airborne Electronic Equipment

FOREIGN ISSUES

Since 1928

to Service
With Retail Distribution

Particularly Adapted

are

Your

P.
»

Copy of the Annual-Report for 1956 on Request

■

'•

•

F.
120

Inquiries Solicited

FOX &

Firms

CO., INC.

BROADWAY, NEW YORK 5, N, Y.

T.k.bon,

REctor 2-7760

;

Tefetype.
NY 1-944 &- NY t-943

(1848)

The Commercial and Financial Chronicle...

Continued

from

of offerees, which the Commission

'exceed

making

the hope of

are

area

ket rather than with the expecta-

ness

fact

The Securities industry

such stockholders receive new

No-Sale

contrary

the

curities Act, is deemed

persons

where

state

the

poration

statutory

ized and doing business.

suant

are

occur

cor-

involved where, purstatute,
there is
to
the vote of such

submitted

state

stockholders,

a plan for merger,
consolidation, reclassification of
securities, or the transfer of assets

organ-

This

shareholders

are

ex-

resident within
issuer

rather

than

exists

There

from

in Commission Rule 133 under the

they

protections

registration,

the

concerned.

state

Again

Other relevant factors must be find securities issued in reliance Securities Act, presumably is that
a

case

found

have-accordingly

that

the

operates

the

ments of

dealers

and

kers

inspection

our

and

tributed

broker

than

the

Commission

before

ever

history.

We have in recent years
tightened our net capital require¬
ments for registered broker-deal¬
ers primarily
by increasing from
10%

30%

cut"—that

the

"hair

so-called

0he [franklin J2i(e cInsurance

is, the deduction from,
of stocks in in¬

the market price

ventory which is required to be
in computing the net cap¬

made

ital

brokers

and

insisting

are

with

rule

this

dealers.

Chas. E. Becker, President

registered
brokers and dealers, particularly
jn connection with underwriting
tate

into

and

when

District
injunction

Federal

find

broker-dealer

with

of distinguished service

J3 years

do not hesi¬

seek

operating

Home Ofpjce: Springfield, Illinois

commitments, and
Court

•

compliance

upon

insufficient

ital.

Statement

;

cap¬

of Condition

of January 1, 195J

Av-Vvy.
Diminished Caution

Generally, rising markets have
created

conditions

favorable

cAssets.

the marketing of speculative secu¬
rities and would appear, unfortu¬

nately, to have diminished to

Cash

degree the caution and prudence
of many

lhat

people
purchase an

willing to

First

who are
unknown

are

These

joroduced

conditions

boiler

rooms.

room,

sure

consists of

salesmen

group

Loans

have

resurgence

fashioned

Real

somewhere, selling securi¬
ties by fraudulent high pressure
methods over the long distance
telephone. We are making every
to

ities

stamp

and

which

these

out

despite

the

encounter, I

gives

avoid

distribution

179,775,874.82
.

Housing Administration Real Estate Loans

Policyowners

Estate

Legal Reserve
Other

19,599,138.47

the

problem
that

sense

boiler

related
room

Reserve for Taxes

Expenses

Suspense

Other

14,516,428.88

New Paid Business

2,502,676.35
$601,323,364.00'

Asset Increase

$43,817,766.77.
Outstanding Contracts

♦

Payable in 1957

♦

$32,090,663.00V-

2,357,520*00

•

Increase in Reserves

8,533,214.70

21,465,302.33

$297,680,659.00

Accounts

Liabilities

597,609.64
Increase in

3,923,212.28

$6,500,000:00V,..

Surplus Tunds
Capital

quirements of the Securities Act,,

«ee

that

Securities

Surplus

.....

28,343,750.00 *

•

■ ■

during

year

38,750,000.00

$375,774,855.51

Payments to policyowners and
beneficiaries since 1884,.

Bunds

are

valued

prescribed by the National Association of Insurance Commissioners.

plus funds currently held

insurance in

Exemptions

make

every

investors

where under the law

force

oier

$2,380,000,000

effort to

receive

requirements
Act

for their benefit

the

protection of the registration and
prospectus

$21,663,126.64,.

rooms.

Policy

$10,406,2503)0

istration

We must

beneficiaries

........

General

every case some

distributed, but the possibility of

to boiler

Payments to policyowners and-

exemption
from
registration
is
claimed for the securities being
abuse of the exemptions from
regis by no means limited

•

$337,024,855.51

must

viously does not sell them in com¬
pliance with the prospectus re¬

practically

Surplus Funds

2,467,337.56
; '

have securities to sell and it ob¬

and in

1956...

year

•

The

during the

17,415,322.29

2,221,013.16

Policyowners' Funds

Accrued

attempted resort to some of the
exemptions provided in the stat¬
ute.

our i

32,161,209.29

progress
to

Premiums and Interest Paid in Advance

compliance

securities

igh
points oj

96,300,965.23

$375,774,855.51

with the registration requirements
of the Securities Act of 1933 in
the

Real Estate

us cause

effort

J[liabilities

to what appears to be an increas¬

ing

$ 11,282,227.02

$ 33,397,735.66

activ¬

optimis- •"

related problem which
for concern. I refer

,yy ,V
on

Other Assets

tic concerning our progress.
There is another phase of what
•nay

Interest and Rents Due and Accrued

obstacles

(Liability included in Reserve)

room

effort

Premiums in Course of Collection

back

•

(Including $15,935,917.24 of properties acquired for investment)

know,,
of fast-talking
in

(Secured by Legal Reserve)

old

boiler

you

assembled

\,i

Mortgage Loans

Federal

speculative security upon the basis
of
a
telephone
call
from
a

stranger.

♦Other Bonds

investors. We have found

there

♦»

*United States Government Bonds

some

those

they

the
cases

are en-

the largest legal reserve stock life insurance company
in the

united states devoted exclusively to the
underwriting

of ordinary and annuity plans

stock¬

transaction

the

securities

require¬
be

thafc

redis¬

the investing public
Continued on page 4$

inspections

dealer

immediately

can

the element of in-

impression

use

free

current fiscal year we will make
more

registration

expand

program.

the

the Securities Act

necessary to step up our enforce¬
ment efforts with respect to bro¬

ha*

reexamine

holder's vote in such

rude.
We

Commission

to the scope of the rule,.

seems

abroad

underlying rationale
interpretation, expressed

The

this

the

occasion

study,,
This reconsideration has brought?
forcibly to our attention the fact!
that widespread
misunderstanding

feror.

by
law

corporation

soundness of this proposition and
that question is still under

tion for voting stock of the trans-

clearly

by individual agree*

Recently
had

of such corporation in considera-

se¬

ones

ment.

ex-

emotion

operation

sale, for the purposes of the
registration provisions of the Se-

part 0f an issue offered and sold

oniy t0

Policy

insofar

curities in lieu of the old

A Commission interpretation of
long standing has provided that

public
reliable

result which

—

volition

part of the ordinary con¬
sale is not' present, a»

being supplied.

considered, including the number upon this exemption finding their in such

magni-

increasing

contract

cept

the

liave^^e^^found3 in^ increasing
and

which is

the

designed for
purely local financing which is
rity, and accordingly to not need subject to the effective control of

fcory scheme to protect the public

numbers

dividual

information

without

encountered

channels

entered

seems

suer

vital part of the regula-

have

into the interstate securities

called for under the Securities Act

confined

not involving any public
organizations, such as the regis- offering. The Supreme Court has
rered exchanges and dealers asso- indicated that this exemption was
(nations, have made a valiant ef- intended for situations where the
fort
to
audit and
inspect their offerees had access to all matemembers, and industry coopera- rial information about the secution is

There is, for exaniple, an ex- intent. Similarly, there is an
emption for transactions by an is- emption for securities which

dealings.

one

a, number
of situations where
securities issued ostensibly in reliance on this exemption have in

them to operate.

establishing a sound busibased on just and equitable

lion

25.

in which Congress intended being available

-quick profit in the existing mar-

least

and that distribution without any
to the information concerning the issuer

titled to this protection

exemptions

and

years

Programs of the SEC
business in

markets

past

Congressional Committee recently
felt by "rule of thumb" should not

Cniient Objectives and
of them have been drawn into the

way

page

Thursday, April 18,195*1

$535,877,429.83

Volume

185

Number 5630

The Commercial and Financial Chronicle

...

(1849)

Continued,

from

page

Continued
++. M

Over-The-Counler Market
I

-»

-jt •'

«;

jrom

Cash Divs.

Current

Approx.

Including
Extras for

Quota-

12Mos.to

tion

Years Cash

Dec. 31,
1956

Based

1956

sumption

Paymts. t«
Dec. 31,
Dec. 31,

Life,

3.5

stockholders of

0.45

20%

2.2

concerned."

Missouri, I 11

0.60

CO rH

1,9

exemption for re-sale of a secu¬
rity to others.
The Commission

accident

Co,

insurance

Bank

Fort

Bank

2.80

Rochester

Trust

Dept. store chain in
Paper matches

Lock

Joint

Water

2.40

,1.00

15%

6.5

0.40

2.7

70.00

950

Intensified

21
14

0.20

f 1.59

4.4

0.90

36 %

2.5

1.40

4.4

1.30

8.2

15%

the

0.60,

by-products

Consecutive

Insurance

Cash

32 y8

Lucky

3.6

and

4.2

1.00

4.8

*32
12

Jute

and

Ludlow

3.25

5.4

60%

first

0.60

3.10

4°V4

7.7

3.00

5.8

0.70

11%

1,00

6.2

Cast

iron

_*<14

supplier

gas

Manufacture
and

and

MaeGregor

distribution

Sport

Products,

athletic equipment

Wire,

rope,

I
publisher

rr"

Houston

1.60

5.0

for

the

ground rules
solicitations
prior to

often

had

atmosphere of

Now With

appar¬

hostility among various par¬
ticipants, and under circumstances
tiality in

Also, Committees

of the

our

election

•

Goodbody & Co., 140 Federal St.
He

was

Moss

and Members

previously with Preston,

administration of the

Co.

WORCESTER, Mass.

participants

and

■M\":

•

the

I believe it is

—

Wil¬

liam Ryder has become associated,
with Gibbs & Co., 507 Main St.

fight and members of the
Congress have commented both
favorably
and
unfavorably. on

proxy

various

directors and

actively

the

corporation,

£..

)

and

some¬

(Special to The Financial Chronicle)

surveillance

Congress

during
fight.
'

DETROIT,
White
pany,

bers

the

Lewis

Dick,

Dick

HOT

President

Company,

delphia, passed

away

the

60,

Phila¬

following

age

the

Carr

Com¬

Building,

Detroit

mem-^

Stock

Ex¬

Argodale Inv. Sales

Lewis C. Dick
Lewis

with

now

Penobscot
of

Bruce

—

change.

particular

Mich.

April

tine G.

securities

10 ht

brief

name

illness.

SPRINGS, Ark.—ConstaiiArgodale is engaging, in a
business

925 Greenwood
of

from

offices

firm

under the

Argodale

Investment

Sales.

■

!-l

■

'it

lit, Y •:

Interested.

•

...

any

stock

these pages?

i't

'mM

4*1;..
For

latest prices,

'•

quotes. or information,

simply contact—•

Trading Department

Merrill Lynch, Pierce, Fenner & Beane 1
70 PINE STREET

NEW YORK 5, N. Y.

Offices in 10tt Cities

certain

3.00

35
.

1.00

1934

8.6

32%

1.60

25
•

which

5.4

0.60

ar¬

rules

made

PRIMARY MARKETS IN

.OVER-THE-COUNTER

also

statements
the

heat

SECURITIES..

fights

upon

and which, de¬
the particular facts,

be misleading,

The

rules

new

worked

4.6

may

proxy

may

D *

revised

examples

pending
6.4

t
„

The

Contain

5.1

1.75

reference

well

and

have

generally

have

been

Vmierwriters and Distributors

marked assistance to the Commis¬

drug chain

•

-'v;

■.

sion in the

•Details not complete-as to-possible
longer record.
J,Adjusted for stock dividends, splits., etc.

tory

created

Continued

\ ;

page

discharge of its statu¬

duties

under

the

conditions

by hotly contested

proxy

Contests. However, in recent proxy
l{

PRIVATE

WIRES

vtr 3/.

G. A. Saxton

Schneider, Bernet
&

Hickman, Inc.

Co., Inc.

f.f.T'

Teletype NY 1-609
&

Eastwood,

San

Francisco

NY 1-610

70 Pine St., New York 5, N. Y.

Philadelphia
McAndrew & Co.,

Inc.

We luwe direct wires

Albany

Asheville

Boston

Inc.

WHitehall 4-4970

Greenville

Joi'lin

Trading Markets in Public Utility, Natural Gas and Industrial Securities

Rome

Houston

Kansas City

Gal>

St. Louis'

Seattle

Sr. Pall

eston

Louisville

San Francisco
Ujica

\ n n

^pids

Jackson, Missi

Philadelphia
:

Detroit

Denver

Los Angeles

Spartanburg

Cincinnati

Chicago

Indianapolis

New Orleans

Beverly Hills

Beaumont

Dallas

Fl lleiiton

1691

the following cities:

Charlotte

Columbia

Fayettev ille

Municipal Teletype: NY 1-

•

Baltimoke

Burlington

Cleveland

Nashville

\ Telephone WHitehall 3-7600

Corporate Teletype: NY 1-865

Dallas

Hendricks

Members New York Stock Exchange

■■

With Carr & Co.
•

understandings
with respect to the acquisition of
securities and the financing of the
Contest.

with

Joins Gibbs & Co.
(Special to The Financial Chronicle)

enforcement activity on a day
day basis during a particular

Commission.

5
'

Congress have for the first

time in

Goodbody

BOSTON, Mass. — William R.
Kitchel has become affiliated with,

proxy

but vitally important.
>

was

(Special to The Financial Chronicle)

traditional impar¬
contests difficult

our

con¬

Leazes

Wabash Avenue. He

ent

that make

become

partici¬

irpcontests, both the nomi¬

ticularly

13
-

Mading Drug Stores Co._
1

establish

4.5

\ :y.

cables

1.00

r*'

jVIacwhyte
-r.

has

Mass.—Anthony

has

tity and background of such per¬
their interest in securities

/i*,

Macmillan Co.

uniform

rangements

products

book

This

ers.

with

Co., II
formerly
with Palmer, Pollacchi &
Co., Inc.

their proxy statements basic ma¬
terial facts
necessary for full and
fair disclosure to the stockhold¬
done in

Mastrovito

nected

•

Well-known

re¬

disclose

con-

5.3

Inc.
and

other important information, par¬
67

Lyon Metal Products, Inc

Golf

tl.00

electricity in Mass.,! ;

Fabricated steel

participants

(Special to The Financial Chronicle)

WORCESTER,

sons,

Lynn Gas & Electric Co
gas

_w~

products

Lynchburg Gas Co
Natural

powers

cludes information about the iden¬

ing mechanisms

Lynchburg Foundry Co.

With F. J. Leazes Co.

■

they relate to

participating
in
their election campaign. This in¬

tim¬

and

to clarify
specific the intent

information

those

clocks

designed

were

for

nees

4.7

products

Lux Clock Mfg. Co

Savage, Jr. has become connected 4
with Keller & Co., 31 State Street..

Commission has had

investigative

Raymond A,

—

>7,

furnishing of a formal proxy
statement and to provide specifi¬
cally for the furnishing of detailed

factual

Typesetting equipment

Manufacturer

dis¬

Among the more
changes made by this

time

pants

electrical

the

mislead¬

and

fi the

Luminator-Harrison, Inc.__r_
&

false

governing

5.0

11%

burlap

Automotive

rules

make

revision

northern

Sales

Typograph

provides,

important

California

Ludlow Mfg. &

necessary,

f" tests for control.

Mass.

Stores, Inc
chain

statute

of the rules

2.30

lood

BOSTON, Mass.

Retail

After
two
years
of
intensive
study the Commission, in January
1956, adopted a revision of its

Co.___

where

ing information.

goods

Operating public utility in

courts

semination

Dividend

(Ky.)__

Lowell Electric Light

the

proxy
1.15

Bleaches and dry cotton

quire

proxy

Federal

Bleachery; Inc.____

Lowell

intensity

prevent, by seeking relief in the

Payers From 5 to 10 Years Appear in the
Second Table Starting on
Page 62.

Louisville Title Mortgage Co.

i»f;

••

)■<>

the utmost to obtain and then

such

Louisville Trust Co.

in¬

disclosure of material facts and to

2.6

Over-The-Counter

its

use

investors and stockholders the fair
16

Title

and

the

under this Section is to obtain for

Louisiana State Rice Milling
and

Federal

been

securities exchanges. A basic pur¬
pose
of the Commission's rules

Co.

-s

our

development in

has

laws

contests

licitation of proxies in respect of
securities registered on national

Operating public utijity
12

thing of a new development for
change! Act of 1934, the Commis¬ administration of the law hitherto
sion
is
granted
to left to the Commission and the
jurisdiction
prescribe rules governing the so¬ Courts to have been the object of

Manufacturer of Portland Cement

Bice

recent

creasing frequency

6.2

company

i.v

rules required us to report to them

Contests

proxy contests for the control
of major corporations. Under Sec¬
tion 14(a). of the Securities Ex¬

Lager beer

Traction

Proxy

7.4

candy field

Los Angeles Transit Lines

ex¬

securities
'

pipe

Telephone Co

does

To^the

Longhorn Portland Cement..

regis¬

itself

the administration of the

England

Lone Star Brewing Co

Lorain

from

Act

8.3

sewer

the

which the

Act

in effect do
this, its validity in my opinion is
open to serious question.

4.8

145

are

tent that the rule
may

0.8

12.00

Loft Candy Co
Leader

208

New

the

exemption

Another

Pipe Co

and

f 1.65

3.8

Lion Match Co.

39?4

estate

Lincoln Stores, Inc.

/ '*

under

not expressly provide.

1.50

111. real

corporation

It does not afford any

power

tration

Co.

Square Building Co.

Springfield,

5.1

(Rochester)
Lincoln

.'.r

Trust

Lincoln Natl. Life Ins. Co._. " 38
Lincoln

grant
16

has

Trust

Syracuse.

insurance

»■<

Wayne

Natl.

health

Natl.

Co.

Commission

0.80

Lincoln

the

rule

Lincoln

Hi /f,

that

the

'"A-

into

Oklahoma City_4__

Life Insurance Co. of

;

as¬

The rule express¬
ly provides that no sale is deemed
to
be
involved
"so
far
as
the

Life, accident and health

.ilL

Casualty Ins. of TennJ

Life &

Life

Such

did not intend.

Trust

»if

Objectives and
Programs of the SEC

reads

something
,

1956

,*• ■

j* .*+• "4

wcutive

Co.

without registration.

% Yield

No. Con-

/ Liberty Natl. Bank

Nation's Business Growth

Divs. Paid

page

)►

(Special to Thi, Financial Chronicle)

Indispensable to Investors and

■

48;

Muskogee
Rook Island
Santa Ana*

Washington

garding profit margins is the ap¬

Favorable Chemical Prospects

by the

higher cash accumulations^ for improvements and expansion,
and continuing pronounced new product growth. On balance,**

Fund President Williams states, there may be little, if any,
further decline in profit margins, and immediate future cash

j
j
;

cal

flow should increase.

for

occasion

the

and are estimated at $1,750

recent

million

Chemical

19% increase over last
year.
The present tight money
conditions are expected to have
little retarding effect on chemical
manufacturers' plans owing to the

Inc.,

Union

the chemi¬
Francis S. Williams,

cal Progress Week by
cal industry,
President

Fund,

1957,

over

Railroad

stated -that

Total

experience
of the chemical industry has been

in-

high

vestment

standing
chemical

before tax of 26 chemical
companies and of 200 manufactur¬
ing concerns; as reported by the

gins

fully
justified
to¬
day than at

Federal Reserve Board, have

follows: "

any

time

other
the

77777 >■■:•> 1

1955

than

recent

period, one

slightly receding profit margins
most manufacturers, the per¬
centage
reduction
in
chemical
of

profits per dollar sales has been
materially less than the average
of
all
manufacturers.
Superior
sales

growth for chemicals has
made aggregate profit experience
for
the
group
even
more
fa¬
vorable.

billion

$12%

million

most

A recent

1956,

re¬

20.7%,

tion

future.

means

tion

for

Cascade National Gas

Company

without

larger

and

the issuing of

Southwest Gas Corporation

McRae Oil & Gas

Langendorf United Bakeries; IncY

for

tificates

changes

ciation

chemical
1957

experience,^

company.

Mr.

firm at

are

than

"for*

prospects

;

sonogwhathigher-*

labor

offset

are

the

flow

should

increase.

Y7;';7;

The

rapid introduction of new
and improved products is one of
the

UNDERWRITERS

PACIFIC

COAST

AMERICAN

SAN

AND

EXCHANGE

MIDWEST STOCK EXCHANGE

(ASSOCIATE)

FRANCISCO

LOS

647 South

300 Montgomery St., Teletype SF 885

ANGELES

Spring St., Teletype LA 533

and

will

contribute

1.25

—

7.0

3.87

7.7

;

•

' 2.00

3.6 '

YY; Y

•

5.7

28%7

% 1.60

•
-

56%

sociation, Inc.

3.00

2.3

130

4.35

insulating

105

0.30
,

•

4.1

5.4

„.:7 sulphuric

7:
11

1:00

1.40

Y 3.7r.-

26%

Hegeler Zinc

zinc,

acid

zinc

5A\

products,

and-.ammonium

Mayer (Oscar)

V '
-

'•

Co., Inc.

t0.64

2.1

processing

McCloud
Western

Manufacturers

1.40

25%

5.5

distributors

5.0
7.3

1.50

24%

6.1

0.45

13%

Inc

Co.

4
65

lumber

softwood

McCormick

Co._

4.75

River Lumber

0.20

McCandlessiCorp.
Itub'BPr'g^ods

spices, extracts, tea, etc.

Meadville

Telephone Co

Operating

public

Mechanical

utility

Handling

Sys¬

tems, Inc.

;

Design,

):.<

growth.
significance of new product
development may be illustrated

lation

The

manufacture

Medford

and

■■■>•

3.3

instal¬

conveyors

7.00

180

3.9.

Mellon Natl. Bank & Trust__

3.70

109

3.4

Melrose

1.50

4.0

increased

ALL DIVISION OFFICES

Offices Serving Investors Throughout California and Nevada

by recent sales trends in the im¬
portant plastics division of the
chemical industry. Sales of resins

PRIVATE WIRES TO NEW YORK AND

Mercantile

Mercantile Natl. Bk. (Dallas)

1951

Dallas

$669 million in
approximately $1,125 mil¬

1956.

Such

sales

are

jected at $1,750 million
Growth

due

for

the five years

that

and

anticipated

duction

1961.

volume

plastic

counted

for

Trust

1956-61

Mercantile

materials

about

75%

1961.

Increases

the

INCORPORATED

total sales

is due to

particularly

should

639

THE

SOUTH

SPRING

DISTRIBUTION

STREET*

SUITE

SECURITIES

achieved

by
and

1956.

5IO

ANGELES

14.

CALIFORNIA

•

TELETYPE

LA 1534

can

made

combination

pletely

new

with

almost

chemidal

the

all

com¬

allied fields.

fO.91

26%

3.4

1.65

6.6

1.90

3.8

allied

and

lines

fO.Sl

16%

4.9

0.65

10%

6.1

126

1.80

40%.

4.4

insurance

of N. Y.__

National

Bank

National

Bank

Boston

of
—

■

;
Merchants

1.50

3.25

4.0

*32

0.80

46%

1.7

___.

National

Bank

National

Bank

►

Mobile
Merchants
Trust

3.6

18
55

Merchants
-

Co.

(Indianapolis)

horizons,

illustrates the pronounced growth
characteristics
of
the
chemical
and

Chicago

phases of chemical activity. This,
in

TRINITY 7761

items

other

relatively

Analogies to the plastics experi¬
ence

LOS

volume

4.0

_——_

Merchants

linear

polyolefins, urethanes
plastics
which
were

4.2

59%

Corp.

Insurance Co.

growth

small

WHOLESALE

95%

2.40

Fire and allied lines of insurance

SPECIALIZING

4.00

Merchants and Manufacturers

growth of

good

Bank

(Colorado)
Fire

materials. Over the next five

years,

4.2

Merchants Fire Insurance Co.

new

3.5

(St. Louis)

National

Merchants Fire Assur. Corp._

big

plastics are projected to
1961, but the declining proportion

1.18

Small loans and general, financing

volume

1.80

Deposit and
(Baltimore)

Trust

Acceptance

Class A

ac¬

five

Bank

Chicago

Merchants

plastic sales in 1951, 64% in 1956
and may account for only 50%
in

Co.

Merchandise

total

hotel

Mercantile-Safe

improved '
five big

The

National

1951-56

for

and

new

materials.

Hotel

residential

Chicago

pro¬

in large part to the intro¬

plastic

Corp.
manufacturer

Lumber

from

lion

'." .'77:;7-7" 7-7:;

Producer

Meat

future

1.75

Finance

Co.

upon

the chemical sciences and provide
frontiers for the industry which

7.4

insurance

Matthiessen

many

rely heavily

12
7

sulphate

medicine

3.10

areas

lines

important characteristics--.
industry.
The

new

3.0

7-v

Conveying equipment

chemistry remai n Y
Atomic " energy, high
fuels,
new
metals," ad¬

other

2.5

370

11.00

Mathews Conveyor Co

* 7:

vances

DISTRIBUTORS

EXCHANGE '

STOCK

Imprinted brick and

promising.

INCORPO RATED

5.7 f

sidirjg

chemical

horizons

18%

Mastfc Asphalt Corp

- *

energy

First California Company

Accident and health* insurance

future-cash--';

1.05

*12

wholesales

Co,

suranee
Diversified

Y 3.0

1.75

Massachusetts Real Estate Co.

immediate

the most

MEMBERS:

little, if any, further
profit margins,
and'!.:

Massachusetts Protective As-

materials-eoetsY

and

•

|0.69

3.9

Massachusetts Bonding & In7

• ■

103

777 Maryland Trust Co. (Balti.)_

those

revenues

Corp

Co.

7';

e4.00

bearings

Credit

Drydock

777v-

'•

3.7
3.9
3.9

j^'yYY'-Y 77 *7

Corp.__'____

Ship construction,
conversion,
repairs. and
manufacturer
of
industrial products

are,--''

.7,

Corp.;
Anto linahcing
Maryland Shipbuilding &

• .•*

there

0.8

fl.71
44%
•
7'7;Y7-- -77;;
7 7
0.80
13% 7 6.0

■

kindred

and

Mills

Maryland
.

prevailing dut% ./• v
ing most of 1956. Physical and. .7-7
dollar volume of sales are-a4ao *higher. At least part of.thesaacU yYr
in

Ilsley Bk. (Milw.)

Cotton .products

Williams- -addedr^

immediate

(N. Y.)

This

commences,

always,

mixed

vO.98

(Los- Ang.)__

roller

and

hardware

Martell

unique. It is repeated in ^
greater or lesser degree in almost-7
As

1.65

*30

___.

Manufactures and

not

every

>20

(Buf.)_:

Marsha 11-Wells Co.

Necessity
and * by - | tax-allowable depre- 7

methods.

ball

Mfr.

Marshall &

Automotive Prod-

Mariin-Rockweli

' "7'>:%.77;

(Detroit)

Retail market chain

earlier, but is writing off
plant investment at the much ^'7 ;
more rapid rate permitted
by ac- ~
/
celerated amortization under Cer--Y

over

3.3

27%- *- 4.0

45
25

Market iBasket

of cash per %
expansion
and*
"

there may be

Corporation

43
products

249

7:- -'

•

parts
'
77.
Marine iNati. Exchange Bank
of Milwaukee

decade

decline

C. G. Glasscock—Tidelands Oil Co.

and

2.10

•*

Auto

by further increases in depr-e-.*'
ciation
allowances. ;On
balance,- Y-

parts

*48

its

higher

Nevada Southern Gas Co.

4.8

j 1.12

ucts,Jnc.

and

Southern Nevada Power Co.

8.0

24%

1.40

Metallurgical

ahd

Manufacturers Trust

4.3

and

steel

Mfrs. ^Traders Tr.

ex¬

recourse

25
;

insurance7
Mfrs. Natl Bank

proportion

sales

vances

Nevada Natural Gas Pipe Line Co.

1.20

•

structural

electronics

Maremont

stock. This company has available

icals

Corporation

2.00

accumula¬

cash

improvements

pansion

levels

California-Pacific Utilities

1.80

21
stock

Lite

deprecia¬

Higher

1956

;Y-YY.¬

Hoists, cranes, gauges, valves Manufacturers Life Insur. Co.

19.6%

compai^g
Y '
and for individual product lines'.* 7,
In the
aggregate^ prices for chem- * Y "

Bank of America

Dec. 31,

1956

metiff products

EleO^ric,

individual chemical

OVER-THE-COUNTER GROWTH STOCKS

tolling

(RYC.) Co

Mallory (E; R.) & Co. Inc

things

the

for

of confusion

source

dividend purposes in 1955-56 than

lor

scheduled for 1957 are
tangible expression of the indus¬
try's
confidence in its
growth
prospects. Post-war capital ex¬
penditures by the industry have
$1,468

the

•*'

8.G

being equal, their
shorter the period of depreciation 7
and the higher the rate in a company, the better are its prospects

dollar

14.7

12.7

1956

11.0%

17.7%

Other

programs

13.2%

19.3

(9mos.)

billion was achieved by
the industry
in 1956, and esti¬
mates indicate a further gain for
1957. Accelerating research efforts
combined with record expansion
$24.3

including

Concerns

21.2

________

volume

totaled

Manufacturing

17.6%

1947

Williams

Francis

1956

sales

borrowing

.■200

26
Clu-mlral

Companies

record

New

been

post-war

period.

generally. Profit mar¬

ufacturers

almost

profit

over-all

favorable than that of man¬

of
se¬

curities

The

1955

8.8

Paymts. to

Dec. 31,

Manning, Maxwell & Moore^

erated* funds.

the

Mahon

Fabricated

11.9%

3.2

tion

Dec. 31,
1956

Magor Car_Corp

sheet

1947

etc.-

12 Mos. to

Divs. Paid

Wisconsin-utility

14.5%

Incomc_—_

Extrasfor

Madison Gas & Electric Co.—

Percent of Sales "7-

Depreciation,

...

YY s

how

Approx.
% »'leld
Based on

.No. Consecuiive

Carbide,

Cash Flow Items

Net

Y Y

;

Quota-

Cash Oivs.
Including

Years Cadi-

expanding level of internally gen¬

for

nationwide observance of Chemi¬

„

the recent past
significantly this ■
accounting device has altered the ,
nature of cash flow.
V./y
example,

indicates

3,;.

►

Indispensable to Investors and
| ^: Nation's Business Growth

companies.

Experience

,7:

Over-The-Counter Market

the

page

amortiz¬

ing new plant and equipment, ac¬
cording to Mr.
Williams. New
depreciation methods, when com¬
with
bined
rapid expansion of
physical plant by chemical companies, have created an illusionary cost squeeze for many chemi¬

chemical industry favorably situated

profits, compared to manufacturers generally,

terms

sees

permitted

now

Government for

from

favorable accounting

Federal

Depicted by Chemical Fund Pres.
Chemical Fund head

Continued

parent squeeze on earnings caused
methods

Thursday, April 18, 1957

The Commercial and Financial Chronicle...

(1850)

t
e

Details

not complete

to possible longer record,

Adjusted for stock dividends, splits, etc.
A

100c>;

are

stock dividend

for old shares.

was

paid

Jan.

15, 1957. Figures shown

yolume 185

Number 5630

r. The Commercial and Financial Chronicle

(1851)

Over-The-Counter Market

■»

Casti Divs.

•

% Yield

secutive

12 Mos.to
Dec.

Divs. Paid

cific

Approx.

Including

Years Cash

Quota-

Based

tion

Railway

successful

stacles.

National

/Trust Co.

Meredith

Bank

1.32

1.60

has

3.3

Syracuse..___

Publishing Co..,

5.5

A; A 'A /'.•
.

Calendars
and

Metal

''22

____

(religious and

cial)

0.60

8.0

Corp._T__

2.65

148',

1.8

house Co.

Storage
._.i_/

Ware¬

__________

2.25

0.50

6!k

8.2

Natl. Bank (Lansing)
Michigan Seamless Tube Co.

160

47IV

3.4

tO.95

t0.875

a/a.

4.0
~yf-

■

Illinois

18'

0.90

19 Yi

4.7

t2.24

3.00

5.4

1.25

1534

7.9

Miles

Reclaiming.

-a

1.04

Millers
A.

and .engine

Falls

*20'A As 5.1

gas

Rolled

7.1

*20
1

138

1*0.91
1.30

•!'

"?/

•

a-/

26 :!4

4.9

distributor

Glass

1.95

34V4

1.15

1'81/2

Mississippi Shipping Co

6.2

Commercial

freight

carrier;

oil

and

With

plenty

the

line

from

the

draw its

the

after

will

has

until

feet

;

0.90

5.9

151/4

a?'.' 7'V"

Mississippi

Valley

Public

Service Co.

4.5

107

billion

cubic

ducers

$400,000,000. Of this amount
abouit
$120,000,000 will be pro¬

over

Operating public utility

Missouri-Kansas Pipe Line

3.00

Holding company

•

Missouri Utilities,
Electricity and

natural

AAA
•'

gas

Mobile GastService Corp

4.2

1.00

151,8

6.6

0.75

2.6 '"r

children's

Petroleum

.23 a

a.of)

'•.

been

areas

products

Monarch Life Insurance.

5.9

SO'/}

t0.375

the

finance

provided

monies

the

Monarch Mills

0.75

Sheetings and print cloths

Canadian

have

shares.

common

1.75

2.3

32%

centage
-

would

reoresent

annual

sale

Of the

large per¬
placed in the U.S.A.
small number of insur¬

Canada

•

this

far

the

20-year

worked

This

186,656,000

sold west of

tributing

the

only.

anticipated
M.C.F.
20,219,000
M.C.F.

total

Eight
been

were

companies.

the

markets

Ontario.

have

contracts
with

out

utilities.

largest is

Of these, by
with the Con¬

the

earnings

run

5.8

Canadian

addition,

Flour

and

Mills

Co.____

1.60

(Bait.)

1.40

the

0.80

11 Vl

Life insurance

Moore

time when

yields

are at

Drop

forgings

and

machinery

the

Pipelines

good value and
of

means

growing

1.9

£..

■

0.60

B»/4

0.30

23Vi

10.00

*11

1.19

EFFICIENT CENTRALIZED MANAGEMENT

•.

7.3

wholesaler

Morgan Engineering
Produces

•

mills,

Co.____

FOR 29 WATER SYSTEMS

1.3

etc.

cranes,

Morgan (J. P.) & Co. Inc.___
Morris Paper Mills, Inc

362

3.3

3S'/4

3.7

34! ■/

5.2

Paperboard and boxes

Morris Plan Co. of California
Thrift
sales

accounts,

Sulphate pulp and

Co.

Murray Co.
Cottonseed

33 Vi

4.5

4.00

systems in 29 growing

California communities.

4.2

4.7

We have found that centralized headquarters control of such

1.25

250

2.375

results

purchasing,

billing and sanitation

engineering,

6.2

laboratory

efficient

water

service

for

227,000 customers.

printed cellophane

papers,

Water

and

petroleum

Industrial

National

Corp.

1.05

32Vz

3.2

treatments

And

chemicals

American

Orleans

Bank

substantial

of
:_

*26

16.00

405

4.0

Comm.(Houston)

3.00

105

2.0!)

2.05

3.20

! 05

3.0

1.54

achieved

through

3.4

savings

centralized

benefit both stockholders and customers.

3.6

management

2.9

Natl. Bk. of

National

Bank

Commerce

in Memphis I
National Bank
in

New

National
of

Orleans

Bank

•

Details

not

Adjusted

complete

possible longer
splits, etc.

4612

3.3

record."**"

for stock dividends,
1

•

•-

CALIFORNIA WATER SERVICE COMPANY

Commerce

Including predecessors..

ft.

374 West Santa Clara Street

Commerce

of San Antonio

<•/

Commerce

Norfolk

National

our

3.7

gummed, coated

National Aluminate

New

1.50

operations

Texas__

oil

waxed,

11.89

insurance

Nashua Corp. Units.
Makes

paper

and

water

_____

Motor Finance Corp.__i
financing

California Watier Service Company owns and operates the

time-'

loans,

engineering
Construction—heavy
Mosinee Paper Mills Co.

and

1.80

financing

Morrison-Knudsen

Auto

31;

Continued

'Hf
on

page

San Jose,

California

-an

participating

economy

5.0

Moore-Kandley Hardware
Hardware

.'•»

and

interest
a

good in¬
;

opinion

Trans-Canada
are

•

;*/7a

7.1

their peak

in Over 30 years ensures
come.

•/.

;

line

■■■

Drop Forging Co.____

the

high

feeds

;v"-

the

the.debentures issued at

machines

Montana

Government

Calculating and bookkeeping

Monumental Life Tns.

that

high

Calculating

extent

with its blessing lends further at¬
traction to the securities.
A

dis¬

gas

for

operating at full capacity.
The
obvious stability of an undertak¬
ing financed in partnership with

the initial transmis¬

bank

line

through

re¬

at such time

ance
*)';•/

$1.65

within

prior

protection

insufficient to meet

are

Estimates

rate

Would

among

,1.2

'Life, accident & health insurance

7 xk %

interest requirements.

common

com¬

tures and
V

full

pany expects it- Will have achieved
its initial development stage based

first mortgage bonds a
Co._-

rubber

settled

loan, first mortgage bonds, deben¬

production

Mohawk Rubber
Manufacturer

balance

quired

apparel

Corp

over

of.gas to the East, the

sparsely

The

0.975

earns

By November of 1963

Northern Ontario.

5.0

company

common

agreement between

notes

earnings

capitalization.

The government support was given five
years of
for this link running through the* sion
more

271/4

Operating public utility
Mode O'Day Corp
and

;

.1*

1.36

its

bearing

subordinated to all

are

vertible
pro¬

per

company

certain original
shareholders obligating them
to
purchase up to $21,000,000 in con¬

the

border

sale

the company and

M.C.F. No price renegotiation
will take place until 1968 unless

Manitoba-Ontario

and

the

to the U.S.A. the

earnings is

M.C.F. will be
progressively increased beginning
on
Jan.
1, 1960, J/4C per M.C.F.
annually to a maximum of 15.75c

Al¬

Toronto

without

generate full earnings to en¬
the value of the securities

feet.

l()c

Even

indebtedness.

quantity of 183

price to the gas

'■•■'/

southern Ontario and

between

The debentures

daily
or

/aa:,

of the company.

trillion

M.C.F.

620,000

The basic

4.35

maximum

maximum annual

Kapuskasing in Northern Ontario.

2.8

fl.30

can

granted for
fields in Al¬

the

additional

hance

com¬

vided by the Government of Can¬

rivers

of gas

been

1981

area

Province of Alberta.

export from

cubic

areas as

the

will

This

If export
mean

border south of Win¬

Montreal.

Pipelines

a /

ized

5.60%.

Trunkline.

rapidly growing Canadian
economy, the use of natural gas
will grow at a rapid rate partic¬
ularly in such highly industrial¬

Nov.

carry

allowed,

In the

supply from the Al¬

gas

Gas

berta

and

Minnesota

nipeg.

pany's feeder lines will tap 13 gas

building

border

U.S.A.

fields in the

heart of Montreal

two

the

amount

cost

of natural

via

to the U. S.

period of months and the

Trans-Canada

scarcity in the east, the stage was
set for the Trans-Canada Pipeline.
estimated

Of the five com¬
shares, three are detachable

interest rate

had

west

with

value of $1.

sued

electricity.

the

common

pany,

reserves

of these companies faced

export

U.S.A.

200,000 M.C.F. daily from Alberta

five

increasingly difficult to Permission
with

the

would

1, 1958, at the option of the com¬
but in any event prior to
Jan. 1, 1960.
The debentures is¬

build¬

gas

possible

transmission

within

were

years

The
gas

reality.

ada to build the 675 mile link from

■

Monroe

these

the

may be nearer

berta

Miss. Valley Barge Line_____

Oil

reaches

mon

in Western Can¬

space

line

East.

1987

Trans-Canada

con¬

due

sup¬

market could be built up in
Montreal to be ready when the

Canadian

and

the

Steamship operators

Women's

increase

found

the

■

5.7

Co._^_

glass, wire glass, etc.

Mohawk

reserve gas

then

unit

debenture

par

the

made

was

tremendous

The Canadian unit

balance

project

additional

export

ply the Quebec Natural Gas Corp.,

common

sold

through Niagara Falls to

and

The

■

Mississippi

many,

Minneapolis Gas Co
Natural

0.300

repair

•A/,;.-i-'A/;v:A:/A

'.Tools

ada.

Commission
gas

ing interest at the rate of 5.85%

uninspiring future.

auto

for

around

been

American

The average rate

in the denomination of $100 bear¬

Without the advent of natural gas

Laboratories, Inc

Tools

distance

whole

compete

Alka Seltzer

Miller Mfg.

the

and

sists

pipeline.
line is actually

gas

have

both

by 1963.

Toronto, who
51,191,300

least

If immediate permission can be
obtained from the Federal Power

pur¬

companies

investors.

west

oil

and

distributed manufactured

rubMSP

reclaimed

America,
the

were

years.

debentures

In Eastern Canada, utilities who

4.5

_________________

Operating public utility

The

successfully

and

bonds

insurance

through the

east.

Middlesex Water Co

Mfrs.

have

east

the

the utilities varies from 20.8c
65.7c per M.C.F.
depending on
location and load factor.

unity

its

has made feasible their movement
to the large industrial areas in the

Operating public utility
Middlesex County Natl. Bank

Midwest Rubber

The

rapid

tubing

(Mass.)

possible

1.7

.22

Av/';//:.
Middle States Telephone Co.
of

.Sheet

areas

Co.

take

This type of support has been the
bulwark
of
Canadian

the others.

utility

Mich.

the

that the

tenth

7.8

public

help

States

railway

Now

-Decalcomanias

Michigan Gas & Electric Co.
Operating

ingenuity
the

world, will be completed

General warehouse

Mcyercord Co

al¬

underway, this third link cover¬
ing a
distance of almost one-

Strip metal

Metropolitan

United

linked

with almost every
company across
the whole Dominion
participating.

have

part¬
the United Kingdom and

ners

the

With

Canadians

tubing

Controls

A8%

AAAA//:

Forming Corp

Metals

0.50

taxed

the

5.7

commer-

greeting cards

Mouldings and

climate

bridging of remote

people.

Publishing

Messenger Corp.

the

and

been barriers for Canadians

ways

Merchants

//:

Distance

1956

balance
chased

Gas

sumers'

plan

before it, too, was
overcoming all ob¬

Paymts. to
Dec. 31,.,

Dec. 31,
1956

31,

1956

•

The Security I Like Best

Nation's Business Growth
Extras for

M.C.F.

Indispensable to Investors and

No. Con-

Continued from page 2

■

units

Limited
excellent
in

Canada.

the

But

Continued from first page

there

another

type

even

lar.
been

and

were

lead

would if he could do
out

regularly pnded with nothing
being done about the prob¬

wrath of

one

form

elements

population which

Types of Unrealism

with¬

his head the

some one

various

the

vested interests in
Other

taking steps which would

bring down

move¬

fiscal reform, or

ment for real

charges, and all the rest have

lem.

the

enjoy
largesse in

now

another—or

even

The

really unfortunate part of those professional liberals
that much the same who think we can spend our¬
type of unrealism prevails in selves rich. As things stand
virtually all of the fiscal af¬ there are
very few who are
of

fairs of the nation. Just at the

good

but

of this sort,

anything

any

wish

being done and

doubt all but astronomical. Of

smaller.

may

Cash Divs.

Appro*.
% Yieli

Including
No. Con¬

Extras for

secutive

12 Mos. to
Dec.

Years Cash

Based

Quota¬
tion
Dec.

31,

1956

Divs. Paid

1956

tician

because

provides

(or which is
thing to com¬
national Treasury) in

Paymts. ta
Dec. 31,

31,

61%

?0.80

3.2

2.00

1.9

I'-

(Tacoma)
By-Products,

Animal

2.00

0.40
1.50

/'"■

3.5

ton

ational

57%

8.9

products

2.7'

Accident,

healthy- casualty insur.
National Chemical & Mfg. Co.
Paints

0.80

2.20

(Albany, N. Y.)_

102

->'2.60

Ins. Co. of Hartf'd

3.00

f 1.03

4.5

17%

and

products

Natl. City Bank of Cleveland

•

it/i

3.5

National Commercial Bank &
Trust Co.

Natl. Fire
"Diversified

Holding

insurance

National Food Products Corp.

23%

.y*

chain food

company;

stores

surance

Mortise

locks

| ;,f,

0.60

88iv;:o^?:

1.00

19%

153

f2.93

57%

5.0

0.60

5.4

2.1

health

Lock

■

'■

*32

.Co.,^-^

accident ahh

Life,

National

u-3

Vi*

<■>

National Life & Accident In¬

it appeals to the poli¬

course,

—

5.x

way to spend
about the same

National Newark & Essex

mit the

National Oats Co

which

amounts

in-the
-

they

would

have the face to

never

o u

standing example of this type
financial
legerdemain is
in

social

security. By

of trust funds and certain

it is

liabilities which if fully un¬
derstood would make many a
citizen

gasp and
the budget

search
to

end

hint

any

all

this

If it

cerned.

Yet
from end
year, and no
be

0.30
2.75

'60*60

2.10

0.90

;

Participating & non-participating

Screws, holts and nuts
Natl. Shawmut-Bk;

Co.

(Boston)

National Shirt Shops of

Del-

•:;46%.,;,t 5.9if
:46 ^

Tank

Manufactures

6.8

vjj' vx ■

L45
145

y2.20

1.00

25%'" 3.9

1.25

19%: % 6.5

0.40

Fire Insur.—

2.00'

2.00

National State Bk.
National

4.8>.

13%
r

chain, men's furnishings

(Newark)

Co-___-_
sells

and

50%

4.9

field

oil

equipment

National

Terminals

Midwest

storage

Corp

facilities

National Tool Co.___

'f :5%'

■

Precision

cutting

tools

National Union
Diversified

insurance

Pennsylvania

' 7.3

5.5
a

Nazareth Cement Co—^

'■*

,( 35

■>

5.7

producer

-51 -'u-:

1.30

1.85

2.65

7.4-

1.00

5.5;'

Paper.___

f 1.12 f

2.00

5-3

Nekoosa-Edwards

dis¬

possible to

were

14
67

Co.

ance

stare.

is to

■■},

v.■

Reserve Life Insur¬

National Screw & Mfg.

accounting procedures
possible to incur future

animal feeds

Cereals,

National

■

t' doubt the out¬

(Newark)

Banking Co.

place

ordinary budget.

W i t h

use

other budget they

were

about this

•

found

and

Nation's Business Growth

but it is without

much consequence

to complain,

reason

what is

eral Government in ventures

tacks

great ado
about the President's budget
for the next fiscal year. There
is

tingent liabilities of the Fed¬

willing to get down to brass

moment there is a

195^

Indispensable to Investors and

devious devices have been

ous

politically unpopu¬
The
postal deficit has
around for a long time,
talk, charges, counter¬

Thursday, April 18,

51;

Over-The-Counter Market

distressing. Vari¬

what is likely to be done? It found or invented
by which
apportionment of costs—and
is evident that members of it is
is tempted to leave
possible to keep the truth
by the
same
door "as in he went." Congress, by and large, are wholly out of any budgetary
There probably is not a cor¬ fully as reluctant to take the figures presented to Congress
porals guard among the legis¬ steps necessary to a real over¬ or acted upon by the national
lators now so critical of the hauling of the budget as is legislature. One of these de¬
Postmaster
General who the President or any of his vices is, of course, that of
little
may
be guaranteeing all ventures
would
agree
to the discon¬ advisers. A
tinuance of any of the serv¬ lopped off here and there, and undertaken by
private citi¬
ices now rendered.
There foreign aid, which is not po¬ zens or private organizations.
would, of course, be no more litically popular a n y how, The sundry housing schemes
who would really be willing may feel the knife in a mild are cases in point. Sometimes
to
take the steps necessary sort of way. Almost any mem¬ similar schemes are called in¬
ber of Congress would like surance. No
to
one, so far as we
get politics out of the
operations of the system. Any very much to have the polit¬ are aware, has seriously un¬
increase
in
postal rates is ical prestige that might be his dertaken to estimate the con¬
as

Continued from page

...

of unrealism in the handling
of these fiscal affairs which is

We See

about

Financial Chronicle

The Commercial and

(1852)

0.75

2.2

Pulp and papers

New Amsterdam

Casualty

Diversified insurance
New Britain Gas Light

4.4

40%

put expenditures, all of them,
on

some

for

sort of accrual

thea purpose

basis

of? giving

picture of what is taking
place, the result would bear
very little resemblance to the
budget about which a good

deal is

ELECTRICAL

RELIABLE

COMPONENTS

ELECTRONIC

Sprague manufactures
paper,

film

AND

diversified line of

electrolytic, mica, ceramic, and plastic

capacitors for

use

in the electronic, elec¬

trical, and automotive industries. Sprague also
manufactures

printed

circuits,

radar pulse-

forming networks, radio interference
sion

suppres¬

filters, carbon film resistors, wirewound

because

high temperature magnet wire, which

military applications. It is half

of the Ferroxcube

owner

magnitude.

Corporation of America,

rials for television and
,

Sprague maintains
most

complete

military electronics.
one

Research

of the largest and
and

Development

not

Whatever

•

deceive

another

■

ourselves

about the

way

cost

government. We think the
of

government to the
people of the United States is
measured

the funds

that

Publishes

Newark

taxpayers or the buyers

of its bonds turn
and

ernment

over

inclusive.

have

already

the

liabilities
from

Federal
name

as¬

year

Government

year

social

Joint

ple

the

cost

tried to

the peo¬

MASSACHUSETTS

the United States

keeping the records that

required

are

of-', employers,

iii-

page

6.1

3.25

4.7

3.20

41%

7.7

4.00

65 2,,„' »

Yorker"

>
.

fl.10

^'
'

utility

5.8
F-H ; '

2.00

71.

1.50

22%::, 5.7

1.00

16%

1.70

35%

4 3

f 1.50

26%

5.3

——

f2.25

•40,

Insurance Co—_

119

1.40

•32

0.90

16%

5.4

0.33

4 4

Engineering Works *17

0.60

6.5

1.83

36%

5.3

4,4

of Whirlpool

File

{

Co._

Manufactures

900

files

Michigan

and

> u,;

rasps

*-■:

Corp.

21 Hf-v
■

Chicago real estate

Norfolk

and

bedding

North

American
brick

North

Diversified

North
in

refractory

6.1

materials

variety of hardware

River

'V.

«<

Refractories

Judd

Wide

4.3

springs

County Trust Co.

(Brookline, Mass.)
North

North,

Ave.,

No-Sag Spring Co.j.^.;:

5.3
V.

;

4.4

•!

insurance

Shore

Co.

Gas

distributor

Illinois

(111.)

—

natural .gas

;■'

Northeastern Ins. of Hartford
Reinsurance

Cranes

hoists

and

Northern Indiarja Pub. Serv._
and

gas

Diversified

Y.)

Details

Life

not

Adjusted

*47

f2.74

14.00

insurance

Insurance

Co.

Life, accident and health
*

public utility

Northern. Insurance (N.

♦

Continued

24%

.—

Rapids Bridge

Nicolson

Northern
•

Co.

New

operator

Electric

estimate

1.50

insurance

Telephone Co. (O.)i

Northern

security.

But has any one even

ADAMS

Magazine

Island

Retail

being

5.1

Niagara Lower Arch Bridge.alOO

Fire

government! But such
amounts are very far from all

525

58%

in Conn.

Insurance..—

Operating public utility

to gov-,

spent

are

35%

in Conn.

lines

"The

Furniture

components, dielectric materials,

NORTH

allied

and

Rhode

; Deceiving Ourselves

sumed

SPRAGUE ELECTRIC COmPIMY

Fire

York

Fire

1.70
3.00

utility

public

Operating public utility

•

future

and related
apparatus.

Operating

06
106
78

New Haven Gas Co

Newport Electric Corp.
v

5.8
•

Yorker

remain.

Carton

folding boxes

and

New

even

•

year,

employed in the develop¬

are

j >-

Haven Board

York Trust

Some 325

people

New

insurance

New

with
this
this distressing and
dangerous situation will

—

companies

Hampshire Fire Ins

Diversified

Con¬

spoken of the incredibly large

new

New

order of

laboratories in the electronic components field.

ment oi

operating utility

New

the

leading producer of magnetic ceraihic mate¬

same

—_

Owning investments in several

gress may or may not do
the
President's budget

cost

has wide

would

two

—

tools

England Gas & Electric

New Haven Water

resistors.
coated

the

Co.—

gas

Machine—

Association

resemblance

be in the

even

only producer of ceramic-

New

Paper board

precision resistors, and power-type wirewound
It is the

being said at present.

It would have

utility,

Britain

Machine

true

MANUFACTURERS

Public

New

5.5

complete

for

stock

as.

1220
Tl-—*.J

pos.sibler longer- record.
splits, etc.

dividends,

Including predecessors. " * *

—

1.5
,5j.ViS»~.

!'5.1

^dlUJXie 185

Number 5630

The Commercial and Financial Chronicle

...

(1853)

Continued

Over-The-Counter Market ;~a777:7::;a

Indispensable to Investors and
Cash Divs.

secutive

12 Mos.to

tion

Years Cash

Dec.

Divs. Paid

Dec.

31,

the

1956

Based en
Paymts. to

1956

that

Operating

1.55

4.3

public in the

1.00

18%

5.5

operating Dublic utility

Northern Trust

Insurance
Fire

(Chicago)

Co.

Northwestern
Insurance
A

1.00

3.0

2.25

3.3

Some

cost
21

1.00

104%

Public

Service

1.00

16%

6.1

Iowa

•23

producer

■.

>'Noxzema" shaving :^

.' '. Distributes
•

■!

and

cream

1.00

medicated -cream

6.00

Insurance Co. *26

i Title insurance

Ohio

the

i,53

1.75

have

it will not be

significant

•'7- 'AAA

V A Real estate

Oakland Title

If:-so,

5.7

17%

Noyes (Charles F.) Co...
.

2.3

7 43 j

AA 77.

jNoxzema Chemical Co., CI. B
'

t0.99

5.8.

24%

t0.50

the

proceeds will go
The shares of¬
being sold for the ac¬
certain
selling stock¬

stock after

2.0

the cost to the

all

required

Rothschild

Co., 120
Broadway, New York City, mem¬

completion of

bers of the

sur¬

New

York

Stock Ex¬

change, announced that Jacob Hel¬
ler

associated

now

their

with

firm.

Gruss to Admit

Gruss

....

New

Co., 30 Broad Street,
City, members of the

York

New

May

York

Stock Exchange, on
will admit to partnership

Leonard C.

tion

A-A

The marketing area is in Florida
and other Southeastern states. The

77;

7,:;,7;::7^7

-7 7
7.

purposes, steel joists, metal ii
culverts and other steel products.

Charles Connfelt

;

•

Scruggs.

A.-

Charles M. Connfelt passed away
has 10 plants and is 7 April 10 at the age of 82.- Prior
constructing a plant at Statesto 7his
retirement
in
1948 7 Mr.
ville, N. C.
7 77^::-v7.7;'777'
Connfelt had been a partner in
a
A pro-forma consolidated state¬
Hayden- Stone & Co. for over 30

reports

company

insure

With L.F. Rothschild
L.

forcing
bars, mesh and allied
materials for concrete construc¬

this

Plankinton, 1637

South Broadway.

company
fabricates and
distributes structural steel, rein¬

private citizen

him

x77'.7777,'7

Kirchner,
Wiesner, Inc., First

staff of Walter R.

77. The

paid in in¬

of all the records and

\ ' Diversilied insurance
Ohio Citizens Trust Co.

tion.

DENVER, Colo.—B e r n a r d S.
Friedberg has been added to the

viving corporation of four Florida
corporations and in addition owns
all of the outstanding stock of
Dominion
Culvert
and
Metal
Corporation, a Virginia Corpora¬

regarded as in¬
if compared

Add

come-taxes.

30 ^

per

organized in 1956 and is the

even

Casualty Insurance Co. *31

common

that

rest

doubt that

with the billions

11.3

$8.50

Michael J.

—

Plankinton Adds

the current sale. The company was

along with the system.

goes

Cement Co.

■

Corp.

with

(Special to The Financial Chronicle)

all

and

turns

gas public utilltv

Northwestern States Portland
i

April

stock

holders who will jointly continue
to
own
more
than 35%
of the

this

Ormsbee

company.
are

count

country of the record keep¬
ing, the preparation of re¬

0.9

Multiple line insurance
Electric and

the

fered

Life

Co.

Northwestern
f

citizens

publicly

common

Steel

None
to

the

value

Colo.

now

National Bank Building.

share.

day perhaps some one
a
good guess at the

offered

issue of 270,000 shares of $1

Florida

the

of social

will make

"lines

National

sums

from

name

par

cated

In¬

allied

and

Then, too, take the compli¬
system of taxation, par¬
ticularly income taxation.

2.4

insurance

(Milwaukee).

automobile

Fire,

410

.Northwestern National

which

10.00

Fire & Marine

and casualty

surance

Brum

Peabody
&
Co. and
&
Company
jointly
an
underwriting
group

headed

any one
order of

Kirchner, Ormsbee

(Special to The Financial Chronicle)

I DENVER,

McDonald

security?

public utility

Northwestern

exacted

are

Northern Oklahoma Gas Co¬

Can

magnitude equal to the

1956

Northern Ohio Telephone Co.

nation?

doubt that it is of

Dec. 31,

31,

With

Florida Steel Corp.
Common Stock Offered

eluding the self employed of

% Yield

Quota-

Kidder,

Appro*.

Including
Extras for

page

As We See It

Nation's Business Growth
No. Con¬

from

' (Toledo)

i.._

Ohio Forge

Machine Corp...

Gears, speed reducers,

4.00

•

4.2

compliance -with complex

40-7

10.0

•laws of the land, and the total

16^4

1.60

6-2

88
7

etc.

Ohio Leather Co,

25 ;

Upper leather for shoes

1.00

a relwould
have been regarded as r quite

tfii:

Consecutive Cash Dividend

few

years

ago

income

net sales of

proportions which only
.ative

for

months ended. Dec.

without doubt would assume

Over-The-Counter

ment

three

the

31, 1956 shows

7: years.777777777. 77;; 7 7

Henderson; Harrison & ,v;

of $436,530,* equal to 54 cents Aj.
share on) 800,000 outstanding
ti

come
•

per

common

$4,71)6,121 and net in¬

shares.

the

For

Struthers

fiscal

Admit

bl Henderson, Harrison & Struth30, 1956 sales
j7:7;^ 7 7777 a were $17,684,957 and net income Jers, 40 Wall Street, New York
7; Compared to
all this, the $1,411,438, or $1.76 per share, City, members of the New York
postal mess does not bulk compared with $13,687,051 and Stock Exchange, on May 1 Will
$763,298, or 95 cents a share in the admit Henry C. Van Rensselaer
very large, but it is typical
to partnership.
7
7 (7
.preceding year. ;, v,77.7
and 7 therefore
doubly disL
year

fantastic.

"Payers From 5 to 10 Years Appear in the' 7:;
Second Table Starting on Page 62.

ended

Sept.

Qhio National Life Insurance

Company

*32
*33

2,0d

1.25

1.50

36%

3.4

heartening.,

Participating oijly

Ohio State Life Insur. Co

Ohio Water Service
Retails

treated

26%

5.7

untreated

The firm

Oilgear Co.

*15

2.40

5.3

Coal

0.75

4.2;

Formerly Old Kent Bank
Line Life Insurance

Old

tl-375

4.3

Now

■

2.6

1.85

31%

Bank

Oneida, Ltd.

21
sterling,

and

1.60

2.4

1.25

20%

6.2

With Joseph

•

silverplate

*29

Omondaga Pottery Co—
China

1.05

20%

5.1

staff of Joseph

City,

of the New York

7-——

1.00

7*
21

fl.15

a'V " " 7

fibre
pipe, conduit and underfloor

■■■'

:|:

0.40

San Francisco office-theatre
bldg.

Manufacturers
brushes

foundry

not

complete

t Adjusted

1.40

Adds

A7.7

29.

Richard

7.4

4.8

splits, etc.

York

page

Providence, R. I.

System

Enterprise 2904

•

■

V. ,Z.

NEW

Stocks

Teletype: BS 338

FRANCISCO

England Branches:

BEDFORD

NEWPORT

TAUNTON

PROVIDENCE

WORCESTER

*V-- A"?.

V-":

Salembier

«..

and

20 Broad Street, New
City. Mr. Salembier was

.*' t

business

Howard

name

Howard

Pill

in NEW ENGLAND

for

than 100 YEARS

Now Allen Schwarz
business

ment

Howard

Schwarz, 210 East Redwood Street,
is
being
continued
by
Allen
Schwarz.

Teletype—BS 142

Portland, Maine—Enterprise 2964

Co.v

Estabrook
'

15 STATE

Joins Carr & Co.
»

to New York

Boston——HUbbard 2-8500

Hartford, Conn.—Enterprise 6800

•..

Staff

(Special to The Financial Chronicle)

Open-end Telephone Wire
Bell

•

SAN

SPRINGFIELD

May, Inc.

Milk Street, Boston 9, Massachusetts

Hew Yorh—CAnal 6-1613

7;; 7

•

BALTIMORE, Md.—The invest¬

CO., NEW YORK

B.
MAGUIRE & CO., INC.
31

•

CHICAGO

MONTGOMERY, Ala.—The in-

firm

•

CORRESPONDENT

-•

•' '

Now Pill & May
on

NEW ENGLAND SECURITIES

sociated with Lee Higginson. Cor¬

UTILITY and INDUSTRIAL STOCKS

previously with Bache & Co.

PRIMARY MARKETS

KIDDER

•

poration,
•

vestment

BOSTON

PHILADELPHIA

New

Pill, Old South Life Building, is
being continued under the new

' V:

7,:,.y.;,:...7,7

longer record,

Continued

7 k

■

George W. Ward have become as¬

machinery
as;to possible

for stock dividends,

;

NEW YORK

Higginson Corp.

3.9

industrial

and

Details

Lee

29%

bituminized

Manufacturing Co

7-■:

!""

Trading markets in
7. '

...

•

75 Federal Street, Boston

LOWELL
v

>..

Orpheum Building Co._-.____
Osborn

.'-A

.-.

: •'•-.

New England Bank, Utility and Industrial

Ay7-;7

3.3

Operating public utility

Co.

Stock

•

■f Manufacture

and

Exchanges

Faroll & Co.,
York

Exchange.

Electric

Orangeburg Manufacturing

Telephone: Liberty 2-6200

Faroll

New

Broadway,

members

tableware

Orange & Rockland
Company

iSu est

American Stock

7-V-,

Arthur P. Rockman has joined
the

tableware

stainless

5.9

Brewing

Manufacture

Bradshaw, DuPuy

of B. A. Bradshaw Investment Se¬

accident and health

National

-w

7 .AA--.

curities,
Lufkin National Bank
Building, has been changed to
Bradshaw DuPuy & Company.

0.60

Founded in 1865

Members NetcYork, Boston
•

-A...

Olympia Brewing Co
Omaha

A"7'*.;
;

2.0

1.25

health

Republic Life Insurance
Company
*12

Life,

7"7t7'';" •77:-;, '7.

KidderyPeabody & Co.

LUFKIN, Tex.—The firm name
*32

accident and

Old
'

—

Co.

of America
Life,

has

777.7 j .,7; 77

MAR, Calif.

of Advisers Fund

been changed
Boyd, O'Bryon & Co., Inc.
Highway

mining

Old Kent Bank and Michigan
Trust Co. (Grand Rapids)

DEL

name

Distributors, Inc., 2515 East Coast

Hydraulic machinery

Old Ben Coal Corp

Now Boyd, O'Bryon
'CORONA

wholesales

water;

0.7

JLife, accident apd healrh

285

DETROIT, Mich.
Cornett
Carr

Co.,

now

—

affiliated

with

Telephone LAfayette 3-2400

New York

Hartford

Teletype BS-288

Ponghkeepeie'

Providence

Springfield

Penobscot Building,

members of the Detroit Stock Ex¬

change.

Boston

Ray A.

STREET, BOSTON

Members New York and Boston Stock

Exchanges

The Commercial and Financial Chronicle

(1854)

Continued from page

magnetic material named Hipersil.

The effects of this
have been most

The Most Valuable Dollar

Spent Is the Research Dollar
turing companies in our industry
that have facilities for such work.

number of hightemperature materials designed to
of

opment

meet

Research

specific needs for steam tur¬
bines. We are working on molyb¬

Metals

The first project involves

metals.

denum and

titanium, high-strength
The future of your industry and
alloys, resistance and expansion
mine is bound up in peculiar and
alloys, and nuclear alloys.
probably decisive ways with the
The metals pilot plant is pro¬
advances we make or do not make
ducing components from
which
in metallurgy.
Further improve¬ nuclear fuel elements are manu¬
wait

must

in much

ments

further

improve¬

That

will take
develop¬

alloys.

considerable

equipment

our

research,

factured.

These

made

are

largely of a zirconium "superalloy" which is highly corrosion

millions

Nation's Business Growth

into

Cash Divs.

dollars.

among

years

under

high

the

Now,

steel

link

between

duction

commercial

Projects
metals

the

laboratory pro¬
alloys

new

their

and

production.
under

this

way

pilot plant include

devel¬

companies,

ment work

steel.

con

develop¬

began

grain-oriented sili¬

extra-

After ten years of work,

practical methods and techniques
were found for the mass produc¬
tion

and

handling of

truly

new

■

utilities

nuclear

Pabst

' v.*'-'...

'/>'"■ \'v

•//• /. y:';

the work
.,#•

: ■•••..

reactor

Municipal • Corporate

central

Securities

the

try,

Underwriters

—

happy

proceeding

Brokers

itself

eauioment

tell

you,

reactor fuel has been coin*

John C. Li:«r. & Company
Established

about
ful

1S99

■

Members

Exchange

will

program

y-v

1.48

4.8

1.00

151/2

6.4

1.00

21%

4.6

7.50

1681/2

4.4

*28

0.45

7.7

BALTIMORE

NEW

YORK

get

and

first time in several

Peden

suitable
the

uranium

for

the

fuel

reactor designers

Correspondent

Johnston, Lemon

& Co.

feet in
We
port.

within

Formerly
New

MEMBER
STOCK

its

EXCHANGE

DISTRIBUTORS

•

DEALERS

its

Steel
leal

than

Jan.

Alexandria,

Ya.

only in

course,

which

design

terms

t*w

to
are

and

specific

bein<*

solved

construction.
a

develoo-

design and operation of this
will

509

come

invaluable first¬

hand knowledge of the

mills;

Voting

refineries;
'

fo.76 .1,151/4

1.00

4.5

1.20

23%

5.1

1.05

3.9

f2.24

53%

4.2

chem-

Penn¬

soda

and

sulphite

pulp

Peoples First National Bank
& Trust Co. (Pittsburgh).
Peoples National Bank of

10.57

2.1

41%

9.6

0.60

11%

5.3

2.00

8.7

22%

2.6

Telephone ; ;

Pepsi-Cola General
Soft

4.g0

Service

1.50

31
Public

Bottlers,

drink.;

Machine

Precision

Cement

Co.

Gear

gears

and

products

gypsum

manufacturer

Permutit

Co.

Water

24%

5.2

0.15

3.3

softeners

Small

Peter

1.30 ;

■

Personal

inuustrial

Bankers,

loans

Paul

Co..

2.40

351/4

6.8

2.75

3.7

2.75

116

f 1.14

Popular candies

Petroleum
Producing
natural

Exploration
crude

petroleum

and

gas

2.4

Chemical compounds

Pettibone

Mulliken

Railroad

ing

and

track

equipment,

2.4

forg¬

machinery

18
Corrosion

Pheoll

—

resistant

Manufacture

metal

and

office

5.5

15%

4.4

3.5

'21

Transportation

1:50

114

5.00

113

—

1.00

building

Philadelphia National BankPhiladelphia Suburban
Co.

Operates street railway lines
motor

43%

0 70

fasteners

Philadelphia Bourse
Exhibition

2.35

equipment

Manufacturing Co._

33.

4.4

3.0

and

buses under charter

29%

1.6

3.00

4.3

0.60

6.0

7.00

122

0.17

8.00

Operating public utilitv

Phoenix Insur. (Hartford)
Insurance carrier

(except life)

Pictorial Paper Package Corp.
-

Paper boxes

Piedmont & Northern Rv
Operates Diesel

Pioneer
Mobile

line

Finance
home

not

4.7

financing

Pioneer Trust &

Details

5.7

Carolinas

Savings Bank

system

page

5.0

•

,___■

bleached

wood

Continued

10.3

oil

technology

and of the component and

2.9

stock¬

Philadelphia Suburban Water *18

mental and experimental tool. Out
&

341/2

1957

plants.

Mfr.

Shirming-

of the
Teletype: WA 28,

1.00
4.75

v-i

Penobscot Chemical Fibre Co.

cyl¬

plant

Bell
Office:

6.3

Company.

approved

Operating public utility
sylvania and New York

con¬

uniformly

circular

Shipningnort is. rather,

Building, Washington 5, D. C.

Corp

Tool

Plomb

name

holders

Our

then called

measure

contributions

problems

8.8

2.40

Pennsylvania Engin'g Corp.. *10

height.
cannot

12 %r

Pendleton Tool Industries,
Inc.

inder six fe*»t in diameter and six

Branrh

Steel

useful

material.

were

14 tons of fuel material

Telephone Sterling 3-3130

vears.

devise methods for

distributed

1.10

distribution

colors

and

chemical

and

taining and supporting

1920

5.0

5.9

Porcelain, enamel and ceramic frits

had to demon¬

phvsical

reliable

and

upon

Southern

radio

for

reactor.

properties whjrh make it

Loeb, Rhoades & Co.,

Michigan producer

shapes

oxide

use

time,

same

strate

•

Iron

papers

and

Pemco Corp.

com¬

had

1.50
1.00

and

waxed

Hardware

develop the techniques for manu¬

SECURITIES

Bk.

*13

made

custom

the nuclear fuel

use

example;

facturing

UNDERWRITERS

National

parchment,

Furniture

a continuing succes¬
of research and development

itself

bottling

Peaslee-Gaulbert Corp.

field. the Shipmmmort Proj¬

activities.

Firm Markets

PHILADELPHIA-BALTIMORE

Bottling.

provides

sion

ESTABLISHED

Coca-Cola

ect

New York

wrapping machines

Vegetable

new

our

and

Manufacturing Co.__

Beverage

Westinghouse
night's sleep

carefree

3.2

utility

trading

Passaic-Clifton

people at the Duouesne
the
Atomic
Foergy

Commission,
will

Fabrics

Panama

Liko the first major step in any

Wire

oil

Automatic

Pacolet

Co..

for the

Direct Private

operating

Permanente Cement Co

some

4.4

products

fore the end of this year. At which

Light

Carl M.

mill

Perkins

time

Philadelphia'Baltimore Stock Exchange

7.2

Western States

unforeseeables,
the plant will be in operation be¬

American Stock Exchange (Assoc.)

WASHINGTON

(N.Y.)
Exp.

Package Machinery

barring

and,

4.5

"2: loo

carried

2.9

manufacture

A very care¬

summer.

2.20

Electric

the

1*1-15

freight;

Vegetable

will be finished

and

vear

test

out

New York Stock

during the

manufacture of the

pletion.' The

5.8
/ 7.0

Pacific Vegetable Oil Corp.

full-

approaching

are

Pennsylvania Gas Co

installation

7%:

Pacific Power & Light Co.___

schedule. The nlant

the

and

27%

273

tion generating plant in this coun¬

—

0.525

12.00

scale nuclear powered central sta¬

Dealers

1,60

insurance

Peerless Cement

first

5.1

f 1.08

Generating Plant

Construction

line

Planning

stations.

power

Nuclear

First

271/4

•

en¬

devoted

1.40

6.5

Pacific Natl. Bank of Seattle

and con¬
struction of reactor plants for use
•

cars'

Pacific Lumber

the design, development,

Government

1956

Motor

going on in the field of

technology

Foundry Co]

railway

Multiple

important to utilities. As a matter
of fact, a considerable segment of

INSURANCE STOCKS

;___r

Pacific Intermountain

are

of nuclear

1.75

Pacific Fire Insurance

generation provides
research and
are or will be

power

Dec. 31,

Well-known brewer

Makes

examples of
development which

many

Brewing

Paciiic Car &

power.

application

ergy

1956

Paymts. to

31,

Utility; Dakotas and Minnesota

making
great contributions to the develop¬
The

.«

Otter Tail Power Co

from normally established policies

ment

1956

Based

line of work clothing

Mfg. of paper containers and
closures
\

with
a
number of
manufacturers, built a full-scale
outdoor
laboratory,
including a

many

tion

Dec.

21,

Oswego Falls Corp

cooperation

and

Dec.

Quota-

and'matched sets

radio influence

conditions

B'Gosh

Complete

order to deter¬

amount

12 Mos. to

Divs. Paid

Oshkosh

lines, the American
Electric Co., working in

and

secutive

Years Cash

voltage

Gas

Extras for

number of elec¬

ago, in
loss and

corona

trical manufacturers and utilities.
mine the

Approx.
% Yield

Including
No. Con-

■

resistant, has nuclear character¬
istics making it especially suitable
special for use in
5,000-kva bank of transformers.
reactors, and is both
metals involved in our products
Over a period of three years a
strong and workable.
is relatively small—too small, in
great amount of data was accumu¬
The second research project also
lated under various conditions of
fact, to be of much interest to
concerns
metals.
Back
in
1930, of
the metals industry. For that rea¬
operating voltage, conductor
scientists agreed that only by de¬
size and shape, and weather con¬
son, much of the metals research
new
magnetic ditions. The information has pro- "
that
is
done
for, the
electrical veloping entirely
materials could they realize sub¬
duced a better understanding of
industry has to be done by the
stantial gains in magnetic char¬
the perfbrmahce, economic desigil,
electrical industry itself.
acteristics. But who would under¬
and operation of exti'a-high volt¬
Two years
ago,
to help meet
take such a development?
The age lines and
this situation, Westinghouse built
substations.
market potential for .electrical
The final project I should like
a metals pilot plant
a Blairsville,
steels at that time was too small to
to describe concerns atomic power.
Pa. The plant, which covers 205,greatly interest most steel manu¬ In introducing this subiect, I wish
000 square feet and employs 650
facturers.
This again was a job
to point out that the utilitv indus¬
persons, has facilities for vacuum
which had to be supported in a
try is today bearing a substantial
melting, hydraulic forging, hotmajor way by the electrical indus¬ part of the research and develop¬
rolling, cold-rolling, conditioning,
try itself.
ment costs in the atomic power
pickling, and heat treating, as well
field. The great national need for
as
for manufacture of powdered
Ilipersil and Tldd Experiments
speeding up the development of
metal
parts, shell molding, and
In 1930, Westinghouse, in con¬
atomic generation has caused the
the development of new casting
junction with one of the major electric
utility industry to depart
techniques.
Blairsville is a new
ment, and operating experience.

Indispensable lo Investors and

sav¬

The third project I would like
to mention—the Tidd experiment
—involves a high degree of coop¬

Ten

improved transformers and
ings to customers running

eration

page

Over-The-Counfer Market

transformers.

completely new ap¬
proach to transformer design. The
over-all result has been greatly
required

from

material

new

widely felt in the

manufacture

Continued

.Thursday, April 18, 1957

complete

t Adjusted lor

stock

possible longer reeorrf.

dividends, splits, etc.

240

3.3

Number 5630

Volume 185

The Commercial and-Financial Chronicle

...

(1855)

Over-The-Counter Market

Continued from

Cash Divs.

•

Extras for

secutive

12 Mos.to

Years Cash

Divs. Paid

Dec.

Owning and operating
.::{■■■. f *

1956

Owns

Finance

Operating- public utility

(The)

Tool*

hand

4.3;

2.50

4.3

0.76

151/4

5.0

r___
.

Lightweight

3.00

6.7

tio

0.60;
2.00

3.0

: "v

papers

(H. K.)

Co. (Pa.)___

•711/2

2.8

Manufactures

high voltage electrical equipment, hydraulic presses
and related products *
'
?

Porter

(H.

K.), Inc.

!19

(Mass.)

tools

purpose

Portland

0.40

5.5

Electric

Owns

utility

103/i

Corp.,

Potash

Interests

Iron

and

Co.,

1.15

231,4

5.0

191/2

3.1

Corp

and

Princeton

companies

oil

2.25

6.2

Water

Co..

4.00

5.Q

1.80

/18%

9.6

____

1.00

18%

5.4

Laundry and dry cleaning

Savings Bank' &
(Cincinnati)

Provident Trust Co. of Phila.

2.90

,581/2

5.0

Provincial Bank of Canada

0.87

29)4

3.0

Trust Col

1.75

4.5

Public

Publication Corp. vot

Cuban

Purex

6.1

0.68

13%

" 5.1

3.00

8.3

1.50

17%

8.4

Corp.

_ .

"Purex"

and

Filters

2.00

32%

6.2

10.00

f0.80

i62

0.20

Quincy Market Cold Storage

this

192

the

nor

in prog¬

possible to withhold

new

development

are

examples

some

and

two final

The

continued.

and has

Our

say
can

this
move

can

several

move

Our

economy

for

one

are

doing business.

manufacturers

spending 6%
on

But

even

so,

it does not

It is like the

average
annual
temperature of
Amarillo, Texas. You don't get the
whole
story until you break it
down. The large companies
spend

with
that.

are
operating in that situation,
to a dynamic free enterprice system, in which we have to

other

Foundation

close correlation
effort

our

tomer pays for everything. Those
who pay the research cost of the
electrical manufacturers are those

growth

industries and

they put into research

customers—including

develooment. A high rate of
growth and improving productiv¬
ity. are both clearly associated
with high research activity. It fol¬
that

certain

actually comes from. In
capitalist economy, the cus¬

money

with

and

lows

have to obtain this money be¬

ers

indicates

between

rates of individual

the electrical manufactur¬

fore they can spend it on
research;
and I am well aware of where the

study made by the National

convincingly, along
evidence, that there

great deal more than 6% of sales
their technical effort.
Now

faster to stay, where we are,
and much faster to move ahead.
run

pretty

In the words I have chosen for
the title of this paper, we hav« a
mutual
stake
in
industrial re¬

search.

It is to the interest of each

branch of this

partnership that

utility

cus¬

tomers—who buy the products.
As

manufacturer, I should like

say

money

industries—and

to
you

the

The money invested in research
the
1920's
arid
early 1930's

brought forth products that have
given

life to

our industry. The
invested 5 to 10 years
ago
is only now beginning to
produce its new developmentsluminescent lighting, central sta¬
tion nuclear power, and a host of

new

money we

others.

customer, that no
soend will bring

can

you so great a return as this money

If the research dollar continues

;

to be
it

productive in the future

has

been in the past—and
firmly convinced that it will

—then

the

tremendous

new

*the

Boston

the

-Ground

Boston

and

—

121/2

known up to now. New products
will
expand our markets. New

and equipment will im¬

processes

quality, raise our effi¬
ciency, and lower our costs. Some
of the great basic problems that
remain in our industry may be
solved.
Major technical break¬
throughs may open up whole new
avenues of expansion and advance.

prove

our

have

scarcely

the

Rent

can

build

and

electricity
of Man's

for

estate.

The most excit¬

ing and most rewarding work re¬
to be done, and there is

mains
no

doubt at all

gether,

can

that, working to¬
do it.

4.0

Trust

Real

Estate

UPSON,

Trustees

Red Owl
Midwest

Reece

Stores, Inc
retail

Corp.

food

(Mass.)

Makes button

1.20

chain

1.10

Writes

varnishes and

14%

3.5

ship of the best silicone formulated masonry paints. They have
completed preparations to market new products of their wholly

1.50

0.60

1.40

Fire

f 1.61

56%

2.8

1.00

38%

and

National

f0.93

16%

0.05

1.3

Bank

Dallas

and ojl producer

gas

0.60

8.4

infinite

3.5

manufacturers
shoes

2.6

Suppliers

and

distributors

industrial

Resistance

program

».

■

5.6

oil-

supplies

Welder

Corp.....

High production wplding machines

Revere

Racing Assn.

Dog racing,

near

Boston

Rhode Island Hospital Trust.
battery

1.00

14%

6.9

0.70

14%

4.7

Wide

Heavy

line

doubled the

new

output

textile

Despite tight

1.25

27%

1.25

17%

1.50

34%

and other deflationary

pressures,

show the wisdom of its diversification

Upson

policies

7.1

money

4.5

4.3

products

gratifying results begin

to appear in

the profit column.

metal stampings

Rike-Kumler Co.
Dayton department store

opportunities for the increased sales of Upson Board to
making folding doors, furniture, luggage, spools,
and all manner of things.

looks for 1957
19

Rieke Metal Products Corp..

machinery,

;

packaging and expanded
of picture puzzles by
another subsidiary, The Tueo Workshops, Incorporated. Intensive
cultivation of Upson's industrial markets have opened almost
sales outlets last year

parts

Operates Atlanta department store

stabilizing discovery, Stab-u^cel.

plastic products

Riegel Textile Corp

f3.33

23
}

cellulose

90
25

Manufacturers
and

owned subsidiary, The Upson Chemical
Corporation and have
pressed for commercial adaptations of this corporation's patented

Modernization of

...

Republic Supply Co. of
;
California
well

6.6

yi
53

....

Republic Natural Gas_______
Natural

or,

casualty insurance

Republic

2.6

enamels

Republic Insurance (Dallas).

manage¬

leveling off of the building boom embarked on
of diversification. Tliev liave secured the distributor¬

0.50

only reinsurance

Paints,

fiber

6.0

foreseeing

Reliance Varnish Co..'.

wood

1957. Upson

ment.

class B

laminated
to

6.3

Crepe papc-:

Reinsurance Corp. (N. Y.)

optimism

17%

hole machines

Reed (C. A.) Co.,

largest manufacturer

wallboard. looks forward with

THE

UPSON

COMPANY
UPSON

Details

not

Adjusted

complete

for

stock

possible

longer record,

dividends, splits, etc.

Including predecessors.

Continued

page

do, in harnessing
the improvement

1957—KEYNOTES OPTIMISM

Trust,

Estate

Real

Western

than

scratched the surface of what

1.6

29%

formed in June
result.of a merger of

now

2.5

con.pany

sums

investing will inevitably
result in a series of developments
greater even than those we have
are

breasfast foods

of America
A
;1956

electrical industry as a whole.

Real Estate Investment Trust
(

industry.

5.2

31%

industry

research and

tell the whole story.

research

closely bound

industrial

country

dustries.

reasons.

research,
backward, but we

still.

paid for

development. This figure is high—
the second highest
among all in¬

effort

forward in

stand

work is too
our

for

their sales income

industry be

research

electrical

this

must be increased.

general

The other point I would make is
simply that research is expensive

represen¬

research

the normal costs of

major

any

from

use.

These, then,

our

market, the

cine, where it is neither desirable,

another

now

hazard

whole could face would be

new develop-" have both technical leadership and
ment quickly spreads
throughout sound economic health for the
the manufacturing
industry.
In

large devel¬

greatest

oper&tion

Ralston Purina
Animal feeds,

4.3

'Trend"'

oil, gas and air

Boston

fO.78

sal¬

proprietary name, but the advan¬
tage accruing to the developing
company is short-lived. Once it is

develpment work in the electrical
industry. I should like to make

the

plants

Purolator Products
'

16%

holding oompany

Makes

(•

rotogravure printing

Punta Alegre Sugar Corp
1.,

1.00

utility

Owns

Since

pioneering project,

Science
20

utility

Service Co. (N. Mex.)

Public

The

use.

before it turns up

core of slightly
enriched ura-1 this respect our practices are al¬
nium oxide contained in stainless most like those of ethical medi¬

tubes.

research

the
as

end-product. The result may
be presented to the trade under a

Public Service Co. of N. H—

Foreign and domestic banking

Electric

station

keep

able

normal

Multiple line insurance

hittiifipfifi

central

electrical

Some

program

panies that make up the Yankee
Atomic Electric Co. will show us
the technical
feasibility of using

cannot

Providence Washington Ins..

for

Progress Laundry Co

The

developed for
Pennsylvania
Co. plant, for

134,000-kw. reactor being built for
12 New England
power com¬

5.2

f0.93

keys

organ

Provident

being

now

reactor

designs.

research effort in our

interests

Operating, public utility

later

true

the

Detroit

Pratt, Read & Co
Piano

What

points about this work.
First, it is not enough that the

of America

and

steadily increase

effort

involved.

different

research

invest

you

than you do for any other invest¬
ment you can make..
I should like to say further that

electrical manufacturers drive to cut the cost of
electrical
spend very little on research. Oth-r
equipment and apparatus to the
ers spend a
great deal. There is
point where research and devel¬
an
extraordinarily high degree of opment must suffer. Such a drive
interchange of technical informa¬ would
perhaps produce shorttion in the electrical industry. A
range cutting of utility costs. But
research and development depart¬
it would bring long-range losses
ment may spend years on a
long,, that would be highly detrimental
tedious, research and development to the continued
progress of our
;

Power and Light
example, will determine the tech¬
nical feasibility of
building a large
aqueous homogeneous type reac¬

7.0

0.60

related 'fields ~

Co.

other

tative

Steel

Cleveland-Cliffs
Steel

0.75

Light Co._^

public utility

substantial

Potash

factors

is one—must

their rapid rate of growth.

and

ress.

General Electric.__

Portsmouth

plants,

Shippingport is also

opmental program is

;

Gas

Operating

Portland.

future

the 150,000-kilowatt

steel

Bolt and wire .cutters and special

the

plants
reactor

give us a better understand¬
ing of both the economic and the

tor

Port Huron Sulphite & Paper
Porter

tools

Manufacture of rope, harvest.
twines, twisted paper products

;3.00

;

->"\-

Mechanics

3.0

Jan.

Plymouth Cordage Co
•

.44

Inc.

evaluation

1.25

Pendleton

1957

'4.1 :

Tool Co

Industries.

changed

49 '

products

Name

their

will

building

Planters Nut & Chocolate

Plomb

1956

ours

vide

is true of

Building

office

design.- This knowledge will pro¬
a firm, factual basis for the

31,

technical

Plainfield-Union Water Co.—

Peanut

Dec.

operates

Based

Paymts. to

2K)0

apartment

building- ;

(

Pittsburgh
Corp.

tion

1956

Pittsburgh Fairfax Corp..:

QuotaDec. 31,

31,

ing expended in : America today.
You get more value for the dollars

Spent Is the Research Dollar

% Yield

No. Con-

;■
'.

-Pi:

Approx.

Including

•.

on your re¬

The research dollar is in¬
deed the most valuable dollar be¬

The Most Valuable Dollar

Nation's Business Growth

spend, indirectly,

you

search.'

.Indispensable to Investors and

page

LOCKPORT, NEW YORK

The Commercial and Financial Chronicle

(18561

Continued from page

the bonds are inconvertible
(20 years) unless
subscriber happens to win an

until
the

be adjusted up or

can

case

only

State Enterprises' Profits

price-rais- on incomes in excess of 70,000
the So- rubles whereas workers and salaviets. The most important by far ried employees, constituting probis the famous turnover tax which ably 98% of all taxpayers, pay acis a traditional-type sales or ex- cording
to
a
schedule which
cise tax. This tax is levied at pres- reaches a maximum rate of only
ent almost exclusively on goods 13%
on all income over 12,000
sold to the public and is highly rubles.
In the case of the rural
differentiated with rates ranging population, the tax (called agrifrom 1% of selling price on some cultural tax) discriminates against
commodities to as much as 90% the peasant who has not joined
on
others.
Viewed as a markup the collective farm: he pays at a
over cost, the tax is much higher,
rate double that levied on the

lent to

tax

which

collective

of price con¬

the

400% markup.

population

are,

litA

budget

I assuming the

*3x•

prices1 to make
ily

seen

stances

profits tax is not

sales tax.

The
in

price-increasing tax
a payroll

Per

the: Soviet arsenal is

tax

which

similar to

social security tax.
average,

dustrial

own

our

It amounts,

to about 5%
payroll.

Per

of the in¬

Per

modity taxation under Soviet con¬

Direct taxes

ditions, the people are also re¬
quired to pay an income tax. The

Sales

Per

private

professionals

is to

practice

(doctors,

Button

Granite

1.55

4.8

Light & Power Co. *43

0.70

1744

shore

vest

electric

supplier

Rockwell
Meters,

Mfg. Co

Manufacture

(5.1)

cent

■

Operates

Ross

145 stores

(J. O.)

Corp.

19, .6

Oil

and

lawyers,

1956: from

1.50

24%

6.2

;

1.73

2.4

i;;

0.20

5.0

1.65

steering

gears

royalty interests

gas

Shops

23 %

Consecutive Cash Dividend

Payers From 5 to 10 Years Appear in the

(8.5)

(7.3)

Starting

32.8

(7.6)

Table

Second

(8.7)

31.0

(5.6)
Industries,

Inc

and

25%

4,9

1.00

13%

7,3

railroad

Safway Steel Products. Inc..
Manufactures

steel

scaffolding,

grand stands and bleachers

Sagamore

of Indiana
and you'll find Indiana Gas & Water Co., Inc.
playing a dependable role in this growth.
We're proud of our role and the service
we've been giving
and obviously a great
many Indiana people are happy with it, too
—more and more
every day.
Our growth picture, since the
company
was
organized in 1945, tells the story:

St. Croix

Jv- ■ -?

Mfg.

broadcloths,

Sateens,

Look into the economic vigor

1,25

the following markets:
general industrial, food, chemical

Page 62.

Supplies

Planned Economy." Harvard Press 1955, p.

"Fravda," February 6, 1951.

5.0

dryers and

Over-The-Counter

Safety
tary Problems of

_____

(4.8)
50.7

SOURCE—1946, 19150: from Author's "Soviet Taxation: The Fiscal and Mone¬

1.05

the South

Manufactures textile machinery

28.1

(4.6)
35.8

(7.0)

total

4,8

Engineering

(17.4)

24.7

cent

Royalties Management Corp.

(44.3)

(3.6)

total

1.15

distribution

plywood doors and lumber

Saco-Lowell

22.7

population

4.3

101.2

(9,.6)

11.6

46%

Corp

and

2.20

f .59

tools

power

Rose's 5, 10 & 25c Stores, Inc.

(66.4)

total

18
13

valves,

Roddis Plywood

258.1

total

cent

5.9

Affiliated with producers of many

(70.0)

•

5.4

nations

236.1

(155.8)
40,.4 4

13%
17

mfg.

Royal Dutch Petroleum (NY)

(67.3)

■

1.09

1.00

Boston

Manufacturers

190.9

14
17

Corp.__

Corp.—*

quarrying and

Hudson

387.4

16.5

S.«

Rockland

583.0

(58.7)

3.3

■

Ross Gear & Tool Co. Inc

296.1

42
:

Rockland-Atlas Natl. Bank of

1950, 1956

422.8

total

1.09

air systems

219.0

of bonds
Per

income tax is not very important

Its main function

page

325.4

Payroll tax
Per

discourage

1.60

Insur¬

insurance

Operating public utility

population;

total

7042-4.8

■_

American

Rock of Ages

JOf.O

—

cent

Profits tax

Despite the advantages of com¬

fiscally.

cent

Turnover tax

3.49

3.0

'Mi

natural

Buttons

minor m

194«

budget receipts
Price-increasing taxes

Taxes

packager

Rochester Telephone

Soviet Budget Receipts, 1946,

Total

third

the

Continued

TABLE

13%

0.39

and

Manufactures oven,

enterprise but simply serves to
raise the price paid by consumers
—hence is analogous in effect to
Other

levied

1.50

Co.

Rochester

tax

taxes

5.9

3.75

;

ance

come taxes are virtually the only

high enough
bon<1s because: the people are
profit). It is eas- tipo poor to voluntarily subscribe
that under these circum- such a large portion of their in-

post office charged

634a

miller

utility. Distributes

Diversified

by itself, regu¬

uiai uie veiy

Pressure is required to sell diUIins>

3 0

rice

Rochester

profits of state en-

nnst nfficp

thP

20^4

•

materials

0.60

t9»

Manufacturers of construction

profits, and payroll taxes
together
typically
account
for
_

1956

a24

Mills

Rice

Robertson (H. H.)

between 40 and
of total revenue. The turn-

1956

burn¬

Manufacturing Co

Leading

over,

in effect, an-

fuel

gas

other form of direct tax on the from 60 to 70% of total revenues,
terprises is next in importance to Soviet population.
Considerable Direct taxes on the population,
the turnover tax.
It is not to be social pressure is brought to bear on the other hand, never total as
confused with a profits tax on on the public to subscribe from much
as 10% of receipts, and
private enterprise, however. It is two to four weeks wages a year, sales of bonds tend to bring in still
much more akin to a transferring and
subscriptions are with- less revenue. It is worth noting
into the budget the excess of re- he*d
from wages eypry month ^hat the Soviet press vigorously
ceipts over costs of an institution Just aJ ln the case of the income
t th
minor inThe tax

tion
Paymto.4#
Dec. 31,-Dec. 3*.

31,

vSm<ill metal stampings

brings

60%

bonds

Risdon

River Brand

for selected years in the
postwar period are set forth in
Table I.
The predominance of
price-increasing taxes is obvious.
larly

and

generators

Based

ing equipment

Revenue

sources

The turnover tax

government

Steam

Quota-

Riley Stoker Corp

revenue

farmer,

Dec.

Oivs. Paid

Public

major

12Mos.to

Roanoke Gas Co

Breakdown

The

secutive

Years Cash

with taxes,

case

% Yield

Extras for

'•

bonds

off; finally the

paid

Appro*.

Including
No. Con-

two-thirds (exchanging one
for three old bonds). Under
these circumstances no one in the
Soviet Union would have bought
bonds unless forced to—as is the

Bona sales as a rax
Sales

Cash Oivs.

ex-

new

„

100% markup over cost;

tax which is 80%

stitutes

50%.of price is equiva-

amounts to

Thus

and

Three major types of

course.

rates

dates at which

were

Nation's Business Growth

bond1938)

Currency Reform of 1947 reduced
the value of all outstanding bonds

ing taxes are employed by

Indispensable to Investors and

bond at maturity

interest

the

tended

respectively,

reaches 55 and 65%,

series of forced
(1930,
1936,

lowered

urban
private

priests,

(e.g.,

population

;

...

Qver-The-Counter Market

fraction of its original

conversions

shopkeepers). These groups pay a
discriminatorily high tax which

be.

may

Tax

down as the

value

real

"non-

is facilitated bv ex- etc.) and other so-called
which worker" elements in the

purpose

page

consumers'

value;
isteuce of large sales taxes

from

maturity

interest-lottery prize; until ;1948,
goods
prices
sky¬
rocketed
annually reducing the

Recent Developments in Soviet
Taxes and Standard of Living
this

Continued

come;

Thursday, April 18, 1051

...

- „•

3 09

twills

1.25

100

3.0

3.7

;

Paper Co

Maine producers
•. ;.-v
/•••
St. Joseph Stock Yrards Co

33%

„

Livestock

Diversified

7.00

St. Paul Fire & Marine Insur.

149

/./;

1.175

•

45%

2.6

insurance

Minnesota

;

1.60

operator

0.60

3.1
J *

13%

4,4

1.20

14%

8.4

2.80

45%

tutra-city busses

San Francisco

19%

San Antonio Transit Co.-

<■

Brewing Co.—

■;

■/%

■>

St. Paul Union Stockyards—

•

Operating

have

revenues

Burgermeister" beer

increased

•

Public

".26

Fire

shareholders

100%

have

in¬

*•.

—

Sugar Refining___ 4 33

*■ 5.00

Locks

happy to send

we are.

you a copy

and

Schuster

Three

proud, we'll be
of our 1956 annual

builders'

(Ed.)

Milwaukee

hardware

3.1

L00

17 /

2.10 \

"
-r

2.3
I I
-5.9

•

dept. stores

;

> •

•

Lace

Department

Co
table

and

stores;

St. Louis.

Pharmaceuticals

Name
•

NC.

II (NUDH AIN/AiPOiLllfS

2, II IN ID HA INI/A

-Trust

Co.

Transports
Details

,■

.2.3

„

4.3

14
.

2.00

3.1

1.00

35%

2,8
'

;

January

cars

f2,20

Including

».

3.1

*16
by

/ -

1957

______

freight

not complete

t Adjusted
a

changed to Sears Bank Sc.

Seatrain Lines

♦

7.3

insurance

Sears-Community State Bank
; .(Chicago)
1

0.60

Surety Co

Diversified

add

covers

Searle (G. D.) & Co

4 u

0.60

32%

City, Denver

Seaboard

2.40

knitting machinery

curtains

Kansas

41
*41

;

•

v7.8

Scruggs-Vandervoort-Barney
%i

fO.,97

17
L'

.'<*

'5,9

2.00

«T5

Scott & Williams, Inc.—

Lace

STREET,

53
;

& Co

Vacuum cleaner attachments

Scranton

G&ime^W Offices: 1630 INORTIH MlEIRIIDIIAIN

V '

Builds

WATER

5.3

Scott & Fetzer Co.—

report upon request.

'GAS

6.7 "G

Schlage Lock Co._____,-i_;

serving 134,338 natural gas

Co., Inc.

and water customers in 60 cities and towns

>6.2

1,00

Schenectady Trust Co. (N.Y.)

Proud? You bet

\, * •"

Hardware, locks and tools.

Sayannah

in Indiana.

4.00

:>■

••

Georgia operator

(INDIAN A

insurance & real estate maps

At the close of 1956, Indiana Gas & Water
was

Sargent & Co.__^____'

Dividends
creased

utility (water)

Sanborn Map Co

Natural gas customers have increased

69%.
•

■

San Jose Water Works.

339%.

0.50

11%

ships

to possible longer record,
for stock dividends, splits, etc,
as-

predecessors.

J *

! TIO

Number 5630... The Commercial and Financial Chronicle

Volume 185

Over-The-Counter Market

;

Continued

(1857) >57

from

paae

reached once again the level,at

which it stood in 1928.

The yeari f
1928, it will be recalled, markec(;
i' the launching ^of - the-- First- Fiye^4 [
Year Plan to industrialize the na-1::
-

Indispensable to Investors and

Nation's Business Growth
Cash Divs.

tiqn.> So the substantial achieve-4

Taxes and Standard of

Appro*.

■% Yield

Inch)ding
No. Con*

Extras for

Quota-

secutive

12 Mos. to

tion

Years Cash

Dec. 31,
4456

Divs. Paid

Based on

1556

Second Bank-State St. Tr. Co.

•

Co. of
i

Saginaw_„

Feb.

>1957

Securities

63%

3.00

4.0

•

".'I', >-

Security Insurance Co. of

' "

"57

;

2.00

:'>50%

Bottler

...

+0:925

;. ■

1.20

Tho rfeoline

tht
the

decline
sold to

part

,}• 3.5.

3.50

6.8

Electric cranps

*•

0 40

11%

3.5

.22

*: 2.00

25%

7.8

■

General

v.,:

+1.38

Seattle

Brewing

Malting Co.

3.60

Asphalt laminated

•

papers

r -Iowa livestock .market

>•-

Castings

Skil Corp.
N!

•••

Manufacturer of jsoda fountain

ice

fruit* and flavors

cream

■

8,5

.
.

.'"■' 'and

valves

;

5.6

.6.7

-•41%,

'.
*
I
,4 Smith Kline^ & French Labs..

Mining machinery

it;

1*50

••

; ^

and

56.6

224.3

been

y'vv,r

47.2

in the immediate future i

> .

142.

kho/.iaistvo

SSSK"
p.

(National

' '*

The crisis in the Mid¬
dle East plus the Hungarian up;-:)

lomuni5

the

:»6l.-

rising and general unrest in ~ the
satellites may soon be reflected irv
an

•

the
"

■"

•

-V *

■

Xi*„

u'* /*'

■

' •' *■

V "

USSR),

' >>

1956:3,

20.

will-be reflected, of course,

1950

-1949

1951

>954

.43

1955;
.

and no further

drop in prices andj
even some

1956

rise. It

will be interesting to check thi^i

in te- -

supplies of consumers' goodni

taxes—-perhaps

State Retail Stores

J9ft8

!WKf

;

'•;'.•+y;'v

•'

Price Index of Commodities' Sold by
1948

military build-up '

increase

Any substantial military build-up

"Snvlet Taxation," p. 222. v

"Naaodnoe khoxlaiatv* SSSR,

pp.

when

hypothesis

210-211.

year%

budget, is. published, .-iv I.

}

V. i

>'•4.4 •:

■ ■

Ir"

■

•

*; >

mechanics'. hand service tools and

related itema

V,V

r.?

Sohoeo Products Co.

Paper .and paper .products

•••.

32
r'*12

•> •• -

V South Atlantic Gas Co
>•>-

Operating public utilUy

3.4

;

'wn and Comp any

5.6

13%

21
.15

/:
.Chicago-real estate; V '• •
Southeastern Telephone Co..
Operating public utility
<■> >
So. California Water Co

' -i'

"* ~

3.50

Waterf electric andi.ce
Operating company

0.90
0.79

13%

0.70

0.40

Municipal

•

insurance

•»*;;

..•>

5.1
4.5

Weaving Co...30

1.00

tapes and

and

dis-

natural

New York Stock
•
...

American Stock
-

+0.90

1.0

0.20

2.00

1.12

4.7

39%

5.0

5.6

15%

3.2

supplier"

gas

Drug Corp....

Electricity supplier

+0.49

+1.53

100

>..

•

;

States Tel.

122 S. LaSaHe St..

NEW YORK CITY

Queen Corp

1.12

Manufactures home laundry
■,

Aurora, III.

-J

Details

' 30

Federal St.

BOSTON

1.00

18%
33

3.0

Kansas

not

complete as to possible longer'record,
t Adjusted for stock dividends, splits; etc.-

Kockford, 111.
South Bend, Ind.

Nantucket, Mass.

Spokane, \*kash.

Omaha, Neb.

City, Mo.

Tulsa, Okla.

;

Lexington, Ky.

Peoria, 111.

Waterloo, la.

Philadelphia, Pa.

W ausau,

Continued

Minneapolis, Minn.
Moline, 111.

Madison, W is.

Portland, Me.

k Milwaukee, Wis.

Concord, N. II.

i
3

■

page

t'r

'
t-

CHICAGO

Flint, Mich.
11

Co.

6.1

Operating public utility

equipment

44 Wall Street

I-

1.5

Non-participating life

Southwestern

•

Decatur, III.

and personal lo»ns

Southwestern Life Insur. Co.

L-.'V

Southwestern Investment Co.

Speed

, f

Exchange (Associate)

accident

Southwestern Elec. Service._

Midwest Stock Exchange

Exchange

2.0

bindings

drugs

financing

^Mcmbcr

Southwest Natural Gas Co...

Sales,

v.:V,

......

Southwestern

-D'

'•

insurance

Wholesale

>
.

Southland Life Insurance Co.
health

;'V
i

24%

5.9

39%

production

1.12

■■

5.0

2.00

•

Southern

Southen

5.8

gas

Industrial Securities

England Tel. Co....

tribution

Life,

14
-

•-

Communications services

Fabrics,

i.--

•

Southern Unipn Gas Co
Natural

•

So. New

Public Utility

Electricity supplier
;
*
*.
Southern Fire & Casualty Co.

Underwriter: Concord Fund

interests,

Southern Colorado Power.

Diversified

•.

V'-;*;

6.1

14%

4,3

Investment Bankers Since 1912

;

.►

Corp.

•

yv"

4.0

2.50

'-•{jf-'-

Incorporated

•

(Charleston)
South-Parkway Building
:

*0.75

4>' •'>!> J

South Carblfna National Bk.

not bright.

3.4

:40

l.OO

■.j

...*

4.9

+1.77

> 1

Conclusion

1954__^_^ "Flnansr S8SR" (Finances
1955-1956 "Pravda," Feb. 6, 1957.
"

1.947

2.00

to have

appears

cut in the work week from

•

The .
Sovie t;

the

48 to 46 hours*

48.3

258.1

in ,1956

worker

46.5

242.4

"Sovloi Taxation,"

1946-1953

SOURCE:

•

distribution

>62.7 >

USSIW, Moscow 1956,

100

Pharmaceutical:manufacturers

Manufa'ctn re

consumer

concession

only

duced

8.7

Snap-On Tools Corp

•

246.9
243.6

TABLE

"l>': i

22%

2.05

Vort-lived emp^ *
break.

emphasis on heavy industry. Tfefc*.
•change in policy is not fully re- '
fleeted in our figures until 1955
In 1955 and 1956, for the first time '
since 1947, no cut in consumers? *

65.2

•*.
rvrt: r h

—

Smith Engineering Works

7*0.5

" a

Heavy manufacturing, turbines ;

Vmw

l954

-'65.7 —---: i^oods .prices was announced.

•t

"Narodnoe

;

74.5

1956-—'— "Pravda," Jan. 31, 1957.

2.75
-

77.8%

247.8

Turnover Tax—

5.7.

27%

> 0.45

'-..y...

•«

?•

Smith (S. Morgan) Co.____._

236.1

547.0

'1947-1&49

•

■

501.5

—

19A0-1955

1.55

TVia

un-

The outlook for the Soviet cor>-

•'v

: ;

481.9

—_

source:

6.2

30%

of Prlee"

245.5
-

-asFerCent

247.3

430.7

1955____

Smith Agric. Chemical Co...
33
Chemical fertilizers ,;4>
•'/;f' '.V
Smith (J. Himgerford) Co
34
./•

379.8

2.4

i-V",

»• 20

V. :-Portable tools'

•

21 ;'. 1.50

•

'Average'Rate of Tax

■■

sumer

1.90

•

Sivyer Steel Casting Co...—J

359.6

—'393.6

239.9:
>

Vkiue of Retail Trade Turnover—

53
-

348.0

Sioux City Stock Yards

v
-

'•

+0.19

Simplex Paper Corp

maHp

nart

giving the

5.5

21%

1.18

Operating public utility
I

332.0

1956

Sierra Pacific Power

308.0

1954—__

6.7

beer

require-

''>Wheii* Bulganin arid KJirushcLeV

'■

Tax.
t billions of rabies)

(billions Of rubles)

1952—

5.7

0.20

Turnover >

Cooperative Retail Trade

1953

and

Malenkov's

standard

" '/"'■

hpp-n

ig53

•

:! '-

...

GG"

•

1950

3.4

line of ophthalmic goods

"Ranier'°and "Brew'

1951*—,

Rochester, N. Y. department store

Sicjcs'

•'

'v•'♦

]948-

—

Sibley,.Lindsay & Curr Co...
y,

;

«•

1947____.
4.4

.0.20

refrig¬

Shurou Optical

nnw

was

TV1',1?5? ^ ^
of living finally

Soviet

Value of State and
*

;

......

—

fact, the

even

best estimates indicate that, it

TABLE H

1949

I.'..

Co
commercial

Manufacturer
eration

hoists

and

Sherer-Gillett
•

durables

Average Rate «f Turnover Taxation, 1947-1956

'•

•

consumer

...;

^rSn boS '

attributed to the military

;
..

Vuloanizers

ntht

^cinal method of altering eonpnncipal meth^of aft^^

8.9

j 8%

*0.60

Shepard Niles Crane. & Hoist

thn

in
price of
the pppula-

;

______•

..ti

acne...

hat

make^>

regime to

»u0n!ie c!ose.
ments of the Korean affair and ir» ;
1! •< °^Cr ra*
c ,e s'"®e part-to a feeling on the part of titcs
low by Soviet leaders that the-worst ar- :
T? '
nretseW,nacand Ar^rs Vin; consumers' ' goods " hatl i
European irem
Soviet standards.. In

Shader Co.
>

the

commodities

fav

7.5>>

The biggest dro» '

pa^ma, ^

^. difficult to understand.
Ve

(St.

Co.

presented in Table II.

are

"Fishing reels, rods and lines

-•

fa^ering offo?curfinl95rami''

Effect Upon Price Index

; 13%

" ' .;

■

beverages

Shakespeare Ca

"•

Even though the standard of liv-

4o;

29 '

1.00

carbonated

21 I
_

insurance

Bottling
Louis) iVir-

•

Sovfet

indicating what fleeted in the above figures, while stocks of
it constitutes of the perhaps surprising at first glance,

Sarveys for oil and gas industries

Seven-Up

•

total valueof this retail trade. The

percentage

1.50

*Select^Risks indetncfity Co, *24

•

have

ter visualized by

2.6

•

Diversified

must

intolerably low level

discernible"

military and investment goods to by the
high prices.. The tremendous consumers' goods.
The^^ increase'magnitude of this tax can be bet- in standard of living crudely re-

•

21
"I v

-' Bank of I San ;Diego_
SeismographrServiee^ Corp..
:

USSR

while the changes in hnth

3.5-

30%

;

:: Security Trust. & Savings '; "

the

'andDri^

III).

data

tl.07

"•

•

>> Rochester

;

cate (Table

3.2

56%r

S'ftffeensbciro XN^Q.)

Security Trust Co. of

al-

paid by the population in the form

180/

:■

VNew-Haven ::....,..
Security 'National Bank of

the

Security-First National Bank V

Vv;

is levied

turnover tax

at the end of World War II.

exclusively on goods sold to
The decline in taxes and prices
population through state and has reflected a relative shift, in
cooperative retail stores and is the USSR, from production of

4.3

V- I.;V'

9V4

Vt-; of Los Angeles^.- 76■)'

patriotic support of
the government by the peopte.

Needless to say, living con-

most

0.40 *

been

are

indicate

and

The

Acceptance Corp..

financing: an<l
.V. personal loans
V.I

2.60

79
79

Instalment

■v

ditions-

find that the price index of consumers' goods has declined substantially since the end of the
war as the official figures indi-

and that the
purchased voluntarily

;

Natonal

Therefore, it is not surprising to

productivity gains;

was

name

changed -to- Second
Saginaw-

ago.

at which it stood almost 30 years

is by changing the turnover tax.

state enterprises and represent

bonds

Second National Bank & Tr.

Living

sumers' goods prices in the USSR

are

4.1

the
past
decade
hafc
more' than
raised
the
standard of living above the levet

the

price-mcreasing
taxes
levied not on the people but

1956
on

that

Paymts. to
Dec. 31, Dec. 31,

ment

hardly,

W is.

The CommerciaFnnd Financial Chronicle...

(1858)

Citizens'

reduce

costs.'

continue

Public

Arizona

V'.f/

Continued

power

its

Citizens Utilities
annual

Company, with
of about $7 mil¬

revenues

increased

have

nues

past decade, while

tant)

earnings

150%—from

1946

$1.12

The

its

1956.

diversification, geo¬
graphically and by services. While
type
of holding
(properties being owned
with some exceptions)

outright

plants are operated in seven states
and

Alaska.

portion
the

Based

states

Colorado

Vermont and Maine
23% and Alaska 2%.

breakdown

The

about

services

follows:

electricity 42%
of revenues, gas 26%, telephone
19%, water 10%, and ice, cold
storage and wharfage 3%.
as

The

200

communities

served

by
Citizens are small, Bangor
(Maine) being the largest—in fact
only 14 municipalities have popu¬
lations of

2,500.

over

Operations

Natural

Colorado

that

for

purchased

Interstate Gas and

Nogales

Recently

the

that

ruled

Board

Utili¬

Citizens

and;California-PacificgUtUi--

ties

Company are entitled to re¬

ties

damages

cover

from

the Federal

Government for refusal to renew
contracts

their

for

amounts

undetermined—the

remain

nal suit asked for $16.6
but the

from

power

Hoover Dam in 1954. The

origi¬

million—

decision should naturally

Utilities

Citizens
bund

took
In

1946.

over

and Subsidiaries

with

any,

which

share income for

per

1947

dividends

stock

Operating Revenues:
Telepkone
Electric

15,085,962
'

957,514

&6,357,860

Operating Expenses and Taxes—see Note

31,032,222

$33,341,868
28,851,666

Income...

$ 5,325,638

$ 4,490,202

71,337

62,020

Net Earnings
Interest and Other Income Deductions..

$ 5,396,975

$ 4,552,222

1,249,798

1,174,031

$ 4,147,177

$ 3,378,191

1,752,807

1,385,318

Interest....

Minority Interest
Electric

Balance

$ 2,394,370

for

Common

Stock

per

Common Share

$ 2,148,098

$ 1,819,307

$1.59

$1.37

which

•

and

Thus the

new

favorable than the old

■

CI.

around

low

retreated

Operating Revenues:
Gas

$15,887,927
Total

$15,085,962

957,514

Electric

916,786

$16,845,441

Operating Expenses and Taxes—see

ing

Note

dividends

15,332,750

14,633,858
$ 1,368,890

from

subsidiaries)

669,661

Net Earnings

$ 2,182,352

173,566

$ 1,490,359

Balance for Common Stock

$ 1,506,175

246,272

Dividends

399,195

$ 1,736,631

Stock

$ 1,905,370

445,721

Interest and Other Income Deductions...

Net Income

$ 1,332,609

Earnings per Common Share onAverage number of shares outstanding
Number
of

of shares

Central

standing

$1.11

$1.00

end

Electric

Gas

Stock

The

has

1956

$ .99

"15,
13.5
age

age

Coal

The
the

stock

approximates
6V2%

compared with 5.1%

West

1955

1,340.904

and $9,517,737 in the respective

set

Investment

ical

annual

report

to be

mailed

annual audit and confirmation
later

date

all

shareholders.

business.

and

2.20

0.10

1.85

& Sons, Jnc.___' *12

0.40

Trs.

2.2

(Richmond,

associated

3.7

1.8

items

Lithograph
boxes

and

9.2

;

5.3

;"4%

4.4

3.4

0.20

4.00

117

-21

chain

0.60

2.25

fO.99

2.0

7.0

■

;

and

;

3.9

25%

'a-:

Corp._//__^-^

Sun

7.5

Also

Wholesale

1.20

4.60

247

1.20

distributor

gas

large annuity

1.9

hose

plastic

1.10

21%

5.1

2.00

20%

9.3

1.70

31%

5.4

7J3

]■/

Rubber Co.____^

Manufactures

3.4

distributer

343/4

food

business

Super Valu Stores, Inc._
Swan

>•••

6.4 />/

chem¬

Life Assurance_________

Life.

'•*•;

1.60

refinery equipment

:;/"'

tires

small

and

(rubber

Syracuse Transit Corp
bus

operator

Tampax, Inc.
Miscellaneous
<

cotton

products

*22

1.40

19%

*30

2.50

29%

8.4

0.80

11 ->

7.3

2.00

68%

2.9

5.00

0.75

Transmission^ -i.1.0

1.40

Tappan Stove Co._____
Gas

ranges

;

.
*

Taylor-Colquitt Co.
Railroad

■

ties aiHl

^____

peflfes

Taylor & Feno Co._____
Grey Iron allay castings

has

engage

Refi«ige.ration

compressors,

etc:

Railroad

common

Tennessee Gas

carrier

Terre

Haute

Malleable
-

Details

6.8

2934

4.7

;
,

&
6.2

reduction

0.90

*49

.11.00

145

7.6

*33

2.50

3.5

1.00

6.7

14%

•'

gears

Texas Natl. Bank (Houston)/

Spatt; President; Harold
Siegel, Vice-President; and Derry

21
.

Textiles, Inc.
Makes cotton

castings
and

:ii

3.9

♦"*

Manufacturing CTorp.

Turbines

a-.-}

Natural gas transmission p'.

128

v-^

TeniL, Ala. A Georgia Ry. Co.

Terry Steam Turbine Co.J_

been

Officers

Mfr. of" scientific "Instruments
Tecumseh Products Corp.r__

Richmond

-Stanley,

275

5.9

143/4

lumber

Thalhimer

3.1

fabrics

are

Arnold

'52;

6.00

textiles

Propane

offices at 7813 Sun¬

Boulevard

securities

8UbJ®c^ to completion of

6.0

,of El Paso_

Suburban Propane Gas Corp.

Corp.

6.4

45 V4

business,

Fabricated metal products;

on--

ANGELES, Calif.—Golden

; formed with

2.70

1.60

Struthers Wells

aver¬

for the industry.

LOS

1,351,951

2.25

0.80

At*;,' /.*
". Taylor Instrument Cos
ratio is?
-

st—

1956

6.5

packets

store

ap- v, <

Form Golden West Inv.

out*

3.3

11%

Large Philadelphia department

Iron

Company

0.75

Strawbridge & Clothier_____

share.

and

fO.26

—

Strathmore Paper Co.____
Writing paper "
/
' •

larger growth com¬

yield

________

and

Restaurant

price-earnings
general utility aver-;
around 14.3 (and 18 times or.
for the

0.0

the

vs.

66%

*35

and

Local

would

the

cents

•;

•

not

proximate

r/Stouffer Corp.

alike.)

which

■

Co._

Stonega Coke St Coal Co.___

report to stockholders

California

4.00

Chemicals, Inc.

lacquers

finance

(J. L.)

Dies

to J

yet been released, but
earnings for the 12 months
ended Dec. 31, were $1.12.
The
company is seeking rate increases
in

17.

Manufacturing Co.__<

Cotton

last

12%

•

;

Stonecutter Mills Corp., CI. B

IncIUd€S *** Purchase^ <>' $9,386,032

detailed

low

states

equipt.

Stifel

the A
$1.10

Shares of Common

December 31,
December 31,

years'*

outstanding

stocks are quoted

panies).

year

Number of

536,480

2.50

7.3

mops

Labels,

relatively
gradually

page

13%

INSUR¬

___

Stecher-Traling
Corp.

year, from which it has currently
recovered
to
around
15.
(Both,

$16,002,748

$ 1,512,691

Net Operating Income
Other Income
(including

Preferred

1955 showed

1.00

Manufactures concrete' block mak¬

company's strongly diversified
setup and consistent growth in
share
earnings.
However, r earn¬
ings in

merce

high of nearly 19 in 1954. This
market
recognition of

small gain and the stock

Va.)

the

SUMMARY OF CORPORATE EARNINGS

and

rind

Stearns

indicated

CENTRAL ELECTRIC & GAS COMPANY

^' *'

machine products

screw

State Natl. Bank

means

1949

3.8

State Planters Bank of Com¬

in the debt ratio.

47%

1.80

insurance

and

Southern

adjustment for the 3-for-l /
split in 1951 and the stock
dividends,
the
stock
advanced
from

4.7/

Loans

1945) has now been raised to over
with a corresponding de¬

$1.36

1.80

;

Hardware for building trades, etc.
State Bank of Albany
State Loan & Finance Corp.

stock

$1.59

year

5.2-

fl.33

colorings and seasonings

Brushes

41 %,

crease

25%

M. *

••

and
-

FIRE

Stanley Works

1935 and 19%

5.4

fire

and

(Wm. J.)

Food

reducing cash dividend pay-1
out. The equity ratio ( which was.
in

4.5

46%

Stanley Home Products, Inc;
(Nonvoting)

less than 7%

443/4

2.50

beans

Company's advertisement

Varnishes

other

setup is

See

Stange

than the method of dividend pay¬
ment.

2.00

utility

_____

Screws and

the
divi¬

'■

threads

and

Standard-Toch

There is no distinction be¬
the

;

Standard Screw Co.

„

are

stock

pays

52.

soy

bonding

insurance

SEY

ttie,

page

ANCE CO. OF NEW JER¬

ex¬

After

on—

Average number of shares outstanding
Number of shares outstanding at end
of

dends.

Electric & Gas Company..

Earnings

three-quarters
now
outstanding1

series

173,566

Central

Yarns

funds.

even

and

STANDARD

years

stock, in

common

$ 1,992,873

246,272

Stock Dividends

the

3.4.

35%

;

104

operating

corn

Diversified

paid both- in .casii

Roughly

Gas

Company
Preferred

tween
I

stock

5.5

Standard-Coosa Thatcher Co.

change for their old holdings; the
A stock pays only stock dividends,
and
the
B
pays
only in cash.

916,786

TotaI\.....r................

were

1.20

1952-55.
Early in 1956 stockholders were
given the privilege of taking A

$17,339,120

15,887,927

construction

raise

1.50

■

(Detroit)

marine

pay¬
on

6.6;

components

Casualty,

stock has been

common

and

$19,512,419

Gas

Co.

to per¬

so as

15 %

Operating public utility/
V'
Standard Accident Insurance

sold

1955

m ()*

the

4.5/

carrier

Company's advertisement

Processes

decade.

was

33%

1.00

goods

Stamford Water Co
v-

Rail¬

____

Massachusetts

special policy adopted by Mr.

Rosenthal

dress

Multiple line Insurance

show

can

equally consistent uptrend

and

Staley (A. E.) Mfg. Co—-

1956

;

Paymts. to
Dec. 31,

31,

1*56

;

1.50
"

Springfield Gas Light Co

annual trend in'
share earnings — probably there
are only a small handful of com-

panies,

"•
:

Springfield F. & M. Ins. Co.

upward

Dividends,

Year Ended December 31

for Central

Electronic

un-

____

International

Co.

See

1956

■n

SPRAGUE ELECTRIC CO—

beginning

been

has

there

1946

broken

decade

SUMMARY OF CONSOLIDATED EARNINGS

Income

road

had

However,

shirtings

Northwestern

•

larger plowbaek of earn¬
ings, thus avoiding the dilution
of equity financing.
In the past

CENTRAL ELECTRIC & GAS COMPANY

Net

Yarn

tionDec.

31, •'

-•

Spokane

President

Co._-

products

mori-•.

Carbon

Based

Quota¬

€ I- i'A

;T''i

Sprindale Mills, Iric

prior thereto,;,
been quite /

years

earnings

irregular.

was

.v.-'";'*'/',

...

Carbon, graphite and electronic

been.

when Richard

company

Rosenthal

mit

before Minority

estimated at $3.3. million..

were

/--?■

Speer

regulatory approval. System con¬
struction expenditures last year

ment

Net Income

w"'.

acquired. / Shasta
Telephone Company in California
V
was also recently taken over/ In
all, six properties were acquired " f
in 1956—the heaviest acquisition >

regular annual basis

Net Operating
Other Income

•

recently

were

Dec.

Divs. Paid

•*'

water business
California and two properties

Paso

from

Gas.

Natural

Claims

the

for

gas

system

from Colorado

revenues;

contribute

also

has

12 Mos. to

Years Cash

its

Extras for

secutive

last year installed a
period in Citizens* history.' Two
addition to more
acquisitions arer awaiting
facilities in

operating

own

Vermont;

contributed,

California,
Idaho—
three-quarters

Citizens

No. Con-

by the time development Is finbuilding

Approx.

% Yield

including

fa-

of these
to^triple

business
expected

Chicago; the
companies is

Cash Divs.

near

area

»■

Nation's Business Growth

op¬

sewerage

suburban

■

* V-

v /

V..,

small hydro plant in
its

pro¬

—

Power.

Canada

Southern

from

The company

and

about

for

account

the

revenues

Western

Arizona,
of

ity, and in Vermont a small part

usual

the

company

Company,

and

water

ished.

much of its elec¬

In Idaho it buys its entire
power
supply from Washington
Water
Power; in Arizona
part
from the Arizona Power Author¬

two-way

not

minor role—a stabilizing factor.

tricity.

is also noted for

company

predominates,

business

Citizens buys

cents

cilities

many

with industrial customers playing

in¬

have

Resi¬

dential V

(more impor¬

creased

erating

economic frontier areas.

in the

167%

them

character,

Utilities

Suburban

town"

lion, is one of the smaller "rapid
growth" companies whose reve¬

"small

mostly

therefor

are

Indispensable to Investors and

properties. Last July it
bought all the capital stock of
Northwest Utilities Company and
new

Citizens Utilities Company

..*,•?

Over-Tbe-Gounfer Market

pansion— productive

By OWEN ELY

page

productive ex¬
of increase
per share earnings — Citizens
has
been
aggressively
seeking

Utility Securities

from

'''

Thursday, April 18, 1957

yarn

0.60

Brothers, Inc.____ *11
department .store..

no.t complete

;

6.5

••

to possible longer recdrd.
-

-If,-*

/>„

Volume 185

Number 5630.J. The Commercial and. Financial Chronicle

;

(1859)

Continued

Over-The-Counter Market-

bled

Cash Dfvs.

% Yield

No. Con-

Extras for

secutive

12Mos.io

Years Cash

Dec.

Divs. Paid

Therm atomic Carbon
"Thermax"

Quota-

Based on

tion

Paymts. to
Dec. 31,

Dec.

31,

1956

31,

1956

duction

total

/amounted

and

cars

18.00

260

'6.9

10.00

375

2.7

1.00

2.30

5.1

1.25

6.6

Industry

stocks

low
5

for

the

year

far

reaching 286.99 (1930-1932

prices

receipts

and

steady. Small

prospects

would

the

Light
buying of

the

were

that

local

dwindle

shipments to Canada

through
encouraged

purchases of soybeans.

April
100).

stimulated

stocks

street daily wholesale commodity
price index fell to another new

trucks

continuing
prior week.

the

oats and

commodity price level down
again last week. The Dun & Brad-

sales

Trading in

rye

irregular.

was

Although grain

transactions

3.1

*16

level

eral

cars,

150,517 units, or a
decrease of 3,697 units below that

1956

the/preceding

states

Third Natl. Bank in Nashville

•

(Dayton, Ohio)

week's

output,

Sf, „^pril 8
inctex stood at
comparing with 287.67

"Ward's."

Last

Third National Bank & Trust
Co.

126,707

compared with 130,318 in the pre¬
vious week. The past week's pro¬

blaclr

carbon

estimated

Appro*.

Including

futures prices dipped
moderately,
cash prices remained firm with

The State ol Tradeand

Nation's Business Growth
"

page

export

Indispensable to Investors and
V

from

week

287.33,

the

week earlier and with 292.45

agency reported

the Chicago Board of Trade

re-

vived

re-

-last

mained

week

and

less

than

the

preceding

they

year

ago

Third National Bank & Trust
-

Co. of Springfield

(Mass.)

Thomaston Mills
;

Wide

,._

Last

Thompson (H. I.) Fiber Glass
Fiberglass,
insulation,

.Ed 24,2426a'nye^aPgroeV10US T*/ 4S o/oocoa^L™^-^

of cotton products-

ronge

l'abi-icators

fO.49

1.8

Temp
reinforced

/..Tplasfcip parts ,•
Thomson Electric Welder Co.

Electric welding machines
300 Adams Building, Inc.____

Chicago

office

of
&

0.40

3.50

"Life."

•

;

bronze

1.00

1.75

7.01

Business

Failures
The

1.40

Co.

Corp.

a49

2.40

4° 3

St.

1.80
*•.

6.a

<-26 Vz

Trust

Co.

i;5o

5.4

28.

/./

■

1.25

29%

1-2.85

313

10.90

3.0

211/2

4.2.

Cash

1 v,i

-•

Starting

machinery,
blades

■

All
had

10.95

28Va

3.3

industry

Townsend

2.00

.12

1.20

4.3

/••■

iVi^

1.20

20V\

Manufacturers

1.10

68Vs

1.6

________

2.875

631

4.5

Insurance

_________

insurance

.; /./•/

Troxel Manufacturing Co.___
Bicycle saddles

Trust Co. of
Flee trie

gas

-Diversified

insurance

Clutches

and

Theatre and office

Steel

display

mcnt

and

0.60

103*;

0.60

5.1

equip-

Union

Gas

2.15

Union

.\.

•

2.00

45%

Metal

Co.
Power

1.16

23'/
»/•
r*

1.10.

* Details
♦

3.00

6.1

level

1956

North

private wire system enables

give prompt and efficient service

for all unlisted

well

system connects all
with
in

one

the

as-

our

than

buying

listed securities. This

another and with active

same

and

other

cities.

trading houses

invite

selling inquiries.

your

■/■"

A. G. Becker & Co.
INCORPORATED

120 So. La Salle St.

and

States

had

orders

offices, coast to coast,

Broadway

New York 4

Chicago 3

Russ Building

San Francisco 4

ago..

year

And

Other

Cities

but the

Food

The

Dun

1.30

year

rye,

the

Week

Bradstreet

whole-

at this time,
were

or a

Stifel, Nicolaus & Co., Inc.

rise of 3.9%.*

moving higher in
flour, wheat, corn,

SINCE 1890

oats, beef, hams, lard, cotton¬

seed

oil, cocoa, potatoes, steers
hogs. Lower in price were
barley, bellies, sugar, coffee, eggs

5.2

67 YEARS OF INVESTMENT

lambs.

total
SI

Index

price index rose to $6.19
on
April 9, from $6.17 the week
before, but was moderately lower
than the 1957 high of $6.22 rec¬
orded two weeks ago.
The cur¬
rent level compares with $5.96 last

The

59%

Price

index
of

3.6

raw

the

foodstuffs
use

show

BANKING

represents the sum
price per pound of
and

meats

and its chief function
the

general trend of
prices at the wholesale level.

CHICAGO 3
20 '

sale food

food

050

SYSTEM COAST TO COAST

oc¬

Central

Advanced Moderately

and

Youngs*2.25

\6IV2C

Wholesale

page

Further

ST. LOUIS 2

Commodity Price Index

Further New Low For

Year in Latest Week

'
i

Continued

3.7

Registers

possible longer'record.
splits, etc.

Adjusted for stock dividends,
Including predecessors.

The mildest

Central

failures

general
*32

not complete

Our extensive

and

town, Ohio

4.9
>

Pitts¬

burgh

poles

Bank

3.7

^___;

Union Natl. Bank of

4.4

3.9;:

>10./

Inc

1.45

Manufacturing

distribution

Natl.

East

South

the week

*32

the

Commodities

Chucks, hoists, and castings

Union

4.3

Manufacturing Co

Union

50*2

to
Union Com¬
in January 1957

utility

RAPIDS

CLEMENS

Trading Department

the

manufacturers and

Past

y /

System,

gas

MT.

only sharp rise from last year oc¬

changed

Natural

TELETYPE

T routing

groups;

during

Casualties exceeded the 1956 level

2.7

11%
'

-/
/

stationexy

(L. A.)

MILWAUKEE
GRAND

Unlisted

of the nine major geo¬

Wholesale

Union Bank & Trust

trade

and

from

among

seven

West

5.9

Bank

TELEPHONE

failed

tic, East North Central and South
States.
Only the New

goods

Corp.

(Cleveland)
merce

3.9

Storage

STREET

3, ILLINOIS

ANdover 8-5700

of $100,-

England and East South Central
States
reported week - to - week
declines. These two regions, along

371/2
V.; /.
0.90 :. !'15*4
,/

Union Bank of Commerce
Name

3.2

1.00

building
rubber

EXCHANGE

(ASSOCIATE)

curred in the Pacific States.

4.00
.

Inc.——

Business

4.0

Uarco,

3.1

30.

___________

Tyler Refrigeration

SALLE

STOCK

EXCHANGE

Retail

graphic regions, failures rose dur¬
ing the week.
Casualties in the

fewer

715'

1.20

;

Co._______

Tyer Rubber Co.__
Manufacturers

3.5

22.00

gears

Baglcy Corn,

CHICAGO

STOCK

concerns

in the other five regions,

SOUTH

McDowell

MIDWEST

rose

and

excess

in all lines.

with the

8} 2

0.30

utility

Twin Disc Clutch
220

3.5

■

Twin City Fire Insurance Co.
.

-54:

Georgia

and

f 1.92
//::'/v/;v

•"'"■/ .>/,."•/-/V/.

/.■■'/

•.

Tucson Gas Elec. Lt. & Pwr._
-

Company
'-Divers! i«d

YORK

AMERICAN

&
•

the

Atlantic

automotive

Universal

•

52, while more moderate increases
lifted the toll in the Middle Atlan¬

.91

equipment

Trinity

Unlisted Securities

Pacific States jumped to 106 from

accident, health

Trico Products Corp.

;or

5.9

products

(Hartford)

'■■■'

.VJ;.

•___

Travelers Ins. Co.

EXCHANGE

wholesalers.

9.5

Co.

EXCHANGE

KANSAS CITY

More businesses failed than

curred

Corp.—
truck

STOCK

PRIVATE WIRE

$5,000,

casualties

increases

%.;///'.// / -/'^/

blower

Sterling silver tableware
Fork-lift

STOCK

ceding week.

•

Mfg. Co._—_________

Towmotor

YORK

al¬

were

204

week

last

Twenty-nine

last year

under
27

from

week.

Torrington Mfg. Co.____—__
fan

000', increasing from 23 ind:he pr'e-;

Page 02.

$5,000

against

with liabilities in

Dividend

Payers From 5 to 10 Years Appear dn the

Manufactures

page

previous week and 222 a year ago.The toll among small failures with
43

r :t„9

Consecutive

Second Table

Failures

liabilities

NEW

involved in 265 of the week's

were

4.3

wheels and

DETROIT

equal to the prewar level of
in the comparable week of

1956.
•'

Listed

Straus, Blosser

Sharply

two-week decline by

Liabilities

-■%' ;■>///

Over-The-Counter

•S

____/_

and

mowers

stationary power tools

Rose

Past Week

DETROIT

casualties

Toro Manufacturing Corp.
lawn

•

Toledo Trust

Life,

U nderwriters—Brokers

NEW

5.5

Continued

corn

1939.

1.00

;

M^at. pac'-'i-

Corp.

Although

Tobin Packing Co.

pumps

ended

most
27'

____________

and

heavier than the 255 last year and

•

(Los Angeles)

Wire

cars

the 204 in 1955.

*
.

cars
com¬

ing week, Dun & Bradstreet, Inc.,
reports. The toll was considerably

insurance

Insurance

Power

slightly.

climbing to 308 in the week ended
April 11 from 231 in the preced-*

Mtn-

______

Louis

Ga-olin«-

Commercial and industrial fail¬

ures

Insurance-,
Insurance

insurance-

3114' •"4.4/

rods

Title

Tokheim

; prices fell

5.0

*11
•14

in the comparable week last
year.

week

9,020

price declines in

some

basic commodities pulled the gen-

but

week.

MEMBERS

Title- Insurance

Towle

built

parable 1956 week, 11,646
trucks.

Inc.___

plants

week,

56,000,000 bushels

2,752

'lG

Products,

Brass .and

Title

Dominion

the

was

busheb from

1,831

and 1,892 trucks, and for the

5.0

and

cars

Nuts"

/ nesot a

•*

9,485

„

assembled.

were

Compared
with
a
week
Further precipitation
ago
/
in
growing areas resulted in slug¬ trading volume in wheat, corn and
gish buying of wheat futures, and oats expanded noticeably, but de-

corresponding
135,918 cars and

year

trucks.

:.v//

Titan Metal Mfg. Co._

Title

/placed

"Time,"

"Sports Illustrated"

Men's suits, coats, gtc.

Title

4.3.

;
•

Timely Clothes. Inc.__
Tinnerman

Title

"Fortune"

last

24,242 trucks

5.3

loans

Publishers

13 V2

7.7 /
•

Canadian output last week
V

Time, Inc.

;/// "Speed

0,575

Time Finance Co. (Ky.)

building

drug si ore chain

Personal

3.oo

week

Thrifty Drug Stores
California

2.00
:

compared with

Most grain prices weakened the

-Reclined by__ 86the
vehicles during*past
this week.
In

000

seed oil and rubber exceeded
those of the-preceding week. "*

output

car

dipped
below that of the previous week
by 3,611 cars, while truck output

fiberglass

«■

10:

week's

105 W.ADAMS STREET

314

N. BROADWAY

Continued

from

cotton

page

exports

Continued

estimated at

were

The State of Trade and

bales

the

prior week, but
noticeably higher than the 78,000

Industry

soybeans

and

rye

buying of steers and
vanced

at the end of the week and prices

Following

Flour trading was lim¬

prices

ited, but supplies of soft wheat
baking flour dwindled. Late in the
week sugar rallied holding prices
.at the level of the prior week.

estimated

leveled

There
future

later

out

the

last

Cash Divs.

prices the past week on the
Exchange. Trad¬

nels

close of

Union Oil and Gas Corp. of

Lifted

Past

Bank of

encouraging sign is the re¬
cent rise in consumer interest ip
durable

BANKERS BOND s

slings

LOUISVILLE
Bell

Life

Bidg.

Machine

ISN'T

BID

THE

BEST.

TRY

OUT.

TRADING

DEPARTMENT

Diversified

the

from

4-1

re¬

the

Federal

dex

MARMON-HERRINGTON

the

for

week

ended

TEXAS-ILLINOIS NATURAL GAS PIPELINE

ing week,
of

crease

the

Doyle, O'Connor & Co.

istered

multifocal
and eye

UPSON

York
2-6161
.

CG-1200

•

that

City last week

in-

rose

due

largely

•

According
sales

store

1957

*•-*

•

"
.

-r

Sheboygan, Wis.

• * ;

Milwaukee,

last

1957

Wis,

;t
4

1957.

gain of 5 %-

For

tered.

the

April

period
6,

1957

was.

;

iam
•• -•
*Members

jt\_*;

.j-

of Mid-wist- Stock' Exchange '4

209 s. LA SALLE

ST.

Tel. DEarborn 2-5600

•

CHICAGO

Teletype CG 146-147

mitted
&

the

will

•

,.r

> 4

;

6.7

1.00

heating systems

2.50

counting devices

Freeze, Inc.

: 10

0.40

y *

1.40

•

550

and Kentucky

Vlchek

and

; , 6.00 •107414: 5.6.
'* i'~'Vr

•

10 ;;;/

: •>.

,,,

Non-participating only

Ingot moulds and plugs

Wachovia Bank & Trust
,

!■

...

•f

/';

A r\oW*VLfir\4c?

;

1. 0.50 / 10
,'*
H' y

-:/"v
.21 y-.

Manufacturing Co. of <
• ■

—

/'•./

consin
parts

0.3;-

Y"T" • "•>

.7*

(Winston-Salem) •-.il--.—

Walker

Vulcan Mold & Iron CoL——

/■}

-j •
iT'/vm

5.0
J

,:r/'4
2.2.

1.00

3.6,

t0.95 :26

•"

vJk

9. M

S H

outdoor

storage-

Warner
Sand,.

Warren;.

and

ad¬

Taving

Warren
Printing papers <fc allied products

Washburn Wire Co

—:—-

Wire and springs

418

May 6.

,* Details

not

t Adjusted

complete

for stock

to possible

'V.lf--}.

\ r *;;/

index
Warehouses

;;
•/.

f0.50 ,4:65

6.0

-'C-

•"

Insur- k;t

—-

"...

0.60

22
7

State /Life

Co.

•

5.0/r

'41*

Virginia

plastics

Volunteer

4.5;,/;

28A1;

' *

C04—i—

Tool

Tools

*4"'- r

New York City real estate

land

4% / 3.6

vV"

.'Z

coal

5.0

-50

25.00

—

61
■.'**

23 C

Icecream

Rotary pumps

„

3.3

3.00

■

regis¬

Co.,. 122 East 42nd Street, New
City, member of the New
Exchange,

4/.; 3.3

/4442-

3.00

Owns' soft

the

partnership in Buckner

Stock

4 30

York

1.00

*23

—--

6.8

/1134,

v:-,v

Fire/ Insurance

Viking Pump Co.—

/•->>

IrWin

■'/-A:

23 --^40.80

Victoria Bondholders Corp.—

4/*\

Charles

Car

Velvet

1957,

y: Bucknejf Partner

"'44'

7.7

advertisement on pafire 55.

wire rope,,tackle
rope fittings
?■-

Home

Makes

periodin

:•

1.20

wall-

fibre

Jan...'I,

:V-

....

15»/2

interior

and

•";;-'4

ance

above that

41956.,* v 4-

jpuiier

4.4

blanks

lens

Veedor-Root, Inc.

0.05,.

Vapor Heating Corp.-——--" 23 r.

■

rise of 3%

5.9

distributor

and

opthalmic

Virginia Coal & Iron Co._—

corresponding

recorded

of the

l..

201/4

'• ;

.! Phoenix

decrease

' ieV,. *

1.20

Valley National Bank of

shop¬

year.;

5.0

5.6

•1.275

Ingot moulds and stools

the Federal Re¬
index, department

6.4

;/f69%:
.

;

Valley Mould & Iron Corp.21

7% 4 was reported. "
For the four weeks ending April
a

Angeles, Cal. .Paul,
_

period

V 21%

0.45

Disaster insurance

New

preceding week^ March 30,

With Own Private Wires to

Company*

in N^w York City for.
period ended April 6,.
8%'.above that of the

rose

:v'-

See Company's

Utah

the weekly

BROKERS and DEALERS
"

Board's

serve

103

f3.50

glass frames

blocks and

reg-4

ping, trade observers reported.

L8*

Manufactures

8 to 10%

Easter

1.40

— _

Upson-Walton (The) Co.----

above the corresponding period of
1956

100

specialties

board

1956.

volume

trade

(Del.)

(N. Y.)

(THE)

Exterior

March 30, 1957, a de¬
was
reported. For
ended
April 6,

above

Retail

CHICAGO

V.:

candy

Manufacturer

April 6,

was

1.80/

22",

soaps,

Utilities, Inc

Matches and

weeks

increase of 1%

tests textiles,

and

Univis Lens Co

no change was recorded. For
period Jan. 1, 1957 to April 6,

1957,

\Wz '-V4.4

Universal Match Co

1957,
the

3.1

/ 0.60

Corp.

industrial
radiation
panels and name-

Holding company

four

3.6

2.00; 4 56

-584;-t3<54

dials,

and metal

Wire

United

in¬

1957, advanced 9% from the like
period last year.
In the preced-

8.0,"

V-;4

4';44444

United Steel & Wire Co._____

from

Board's

■.4h40'y>'»5

V-.

U. S. Trust Co.

1% higher, than

Reserve

♦

Department store sales * on
a
country-wide basis as taken from

JOHNSON SERVICE

Inter-city motor carrier

year's similar level, the De¬
partment of Commerce reveals, v-.

CUMMINS ENGINE

U. S. Truck Lines

last

Primary Markets:

;

7.0

12?/*

0.90

oils

plates

compara¬

dropped

4.0

1.00

"4"V

S. Radium

Research

4-1 and Pacific Coast 4-4 to
4-8%.
;
Bookings in apparel were high
and steady the past week, with
buyers -• primarily
interested
in
women's
Spring
and
Summer
clothing. Total wholesale volume
was

Co.—

United States Testing Co

—3 to

February

3.2

2.00

Guaranty Co. 4 18

Denver4-334

Pnosphors,

West South Central

January, but

-Natl.;Bank '(Portland).

sources,

lantic 4-5 to 4-9; East South Cen¬

4.1

paper

•

South'At¬

4- 5;

7.9;

;

Insurance

Lumber

of'

New England 0 to
Middle Atlantic
4-6 to
4-10; East North Central —1 to
4-3;
West
North
Central
and

tral —4 to 0;

S. Fire Insurance

U. S.

4-4;

Mountain

30%

United States National Bank

percentages:
:

2.40

Storage

of envelopes,

eral interests

the following

5.5

Holding toompany, land and nrfp- Vl

levels

8.5

•

higher than a year ago, ac¬
to estimates by Dun &
Bradstreet, Inc.
Regional esti¬
varied

81,4

0.10

Insurance

Diversified

cording

1956

f0.69

United States Loan Society— . 50 ri
Lends on gold, silver,
diamonds -4 *'- y~('
4 J and watches
■:■
-44 .44.4h 4'.

Wednesday of last week was 2 to

ble

*11

etc.

U. S. Fidelity &

mates

5.0

and other paper products

cups

pliances was close to that of the
week.-J, ... V - ' /■-> ' : dollar volume

26%

Manufacturer

prior

The total

f 1.325

Co.—___

Cold

U. S. Envelope

.floor

tail trade in the period ended

/■*>

chain

retail

icc,

Car-iciiig,

quickened too, as did sales
coverings, linens and
draperies. Interest in major ap¬

5.3*

equipment

•

States

Corp.

niture

Hector W. Bohnert

V;.

Markets, Inc.—

Massachusetts

United

Turnover in Summer outdoor fur¬

Charles C. King

1.60

3.5

—

Greeting cards

buying boosted retail trade. Ap¬
parel sales for this pre-Easter
week were even to slightly ahead
of the pre-Easter week in 1956.

MARKET, WE WILL GIVE-UP IF OUR

4.2

21V4

5.6

United Printers & Publ., Inc.

pared with a $29,000,000 rise last
February.
Once
again increased apparel

IN THE LOUISVILLE

IF IT IS TRADED

misc.

tools,

United Public

$65,000,000 in February. This com¬

Long Distance 238

Connecticut operating utility

re¬

debt

installment

1.20

'4 1v'"

■

United Illuminating

period

Consumers

1957.

their

duced

2, KENTUCKY

Teletype LS 186

1956

1.80

United Drill & Tool

daily sales rate for this period was

Home

1.2

1.60

Manufactures wire, wire rope and

Much of this has
to price adjust¬

goods.

attributed

the highest for any 10-day

Exchange

Kentucky

66 Vz

Maryland

Union Wire Rope Corp,

of the gloom around some auto¬
mobile showrooms.
The average

INCORPORATED

Floor,

0.80

Memphis—

Union Trust Co. of

days of March helped dispel some

1st

Union Planters National

Week As Easter Approaches

is expected to be 600,000

Stock

natural gas

and

oil

production

Volume

Trade

the sea¬

bales
larger than it was at the begin¬
ning of the season. Last week's

Midwest

1956

Louisiana, class B__
Crude

ments, extensive sales promotions,
and seasonal trends. The last 10

Member

Dec. 31,

1956

wool fabric market.

been

Paymts. to

Dec. 31,

1956

Divs. Paid

was

at the

tion

Dec. 31,

secutive
Years Cash

in the

best-sellers

12Mos.to

Extras for

some

the

% Yield
Based on

No. Con-

Woolen and worsted flan¬

were

Approx.

Quota-

Including

year.

scattered or¬
print cloths, trans¬
cotton
gray
goods

for
in

lagged.

close to that of
the previous week. The carryover
son

period

comparable

ders for cotton

New York Cotton

of cotton

Nation's Business Growth

5,669,000 bales com¬

pared with only 1,178,000 bales in

Except

the

slight rise in cotton

was a

ing volume

Indispensable to Investors and

through April 2 were

season

actions

since early

week

any

rent

early decline, lamb

week.

Despite a weakness in vege¬
table
oils,
purchases
of
lard
climbed noticeably, resulting in a
moderate rise in prices on lard
f utures. Cattle receipts in Chicago
fell
considerably and were the
for

prices rose

appreciably.
Prices on hogs ad¬
as receipts
were reduced.

Cocoa futures activity expanded

lowest

Traders increased their

February.

oc¬

curred.

advanced.

Thursday, April 18,

page

Over-The-Counter Market

bales of the similar week last year.
Total cotton exports for the cur¬

from

...

153,000 bales, down from the 248,000

creases

Chronicle

The Commercial and Financial

(I860)

2.00

5.9

longer record...

dividends^,, splits, «to.

;

■

;

195/,

Number 5630

iVolume 185

The Commercial and Financial Chronicle

...

Over-The-Counfer Market

Continued

Cash Divs.

Based on
Paymts. to

Quota-

secutive

l2Mos.to

tion

Dec.'31,

Divs. Paid

1950

National

Dec. 31," Dec. 31,
1980

195S

0.60

0.8

Life, accident and health

Washington Oil Co.__

2.25

2.00

■

*13

0.90

13%

6.7

0.20

2.6

9.7

-v

founders

knew

Paints and

•.

glass

Store lixtures,

fountains

0.75

1.00

17%

5.7

installation

and

1.00

0.80

15%

5.2

7.1

8.3

Sanitation products

West Mich. Steel Foundry

1.40

7.4

Steel and alloy castings
West Ohio Gas Co...

0.90

17%

5.2

*34

2.50

48%

5.2

Public

Both

operating utility

and

ing company

West Point
Textile

West Virginia Water Service

1.20

7.0

retails

gas;

water

Diversified insurance

1.40

6.1

1.20

25%

4.8

Co.
23

Pire, marine,
casualty

aviation,

auto

1*2.515

3.7

67%

Casualty
Company

P6n

f 1.17

28%

4.1

Western Electric Co._l'_i

3.6

2.20

130

1.85

supplies

electric,
telephone service

water

gas,

Massachusetts Cos..

Holding company for
ing electric utility
Manufacture

5.3

and

sale

•2.20

1.00

0.80

;"v i2:y: ■; ::

a
a

the

foreign foe

government

large defense

tion

Govern-

need

mel

way

take

the

ftftft

2.50

'WA

•

has

become

associated

some

part

General Offices and

La Salle Street. Mr. Hammel who

in Chicago for many years
recently been with McDougall
Condon, Inc.
*

ness

has

Gino Giolli has also been added

voluntary
of citizens

to the firm's staff.

U::C
"THE

Wyckoff Manufac¬

turing Co.

0.60

f 1.54

1.40

21%

6.6

Portland

1.00

34%

2.9

2,000"

2.8

stationery & greeting cards
Cement Manufac¬

turing Co.

GARLOCK

3.5

Whitehall

Machine

Factory, Palmyra, New York

4.6

Paper products and cordage

Manufacturer

COMPANY

30 sales offices and warehouses throughout the U.S. and Canada.

AAA

two

thousand different styles of;

cement

Works

Textile machinery

PACKINGS

MECHANICAL

Whiting Corp.
Whitney Blake Co

.for rods, plungers, or
to seal

fO.49

Whitney Natl. Bk. (New Or.)

4.00

Will & Baumer Candle Co...

1.00

16%

0.75

9.1

;

....

j.. ;

against steam, air, gas or liquid

... ... ... ,.r

6.0

*17

cylinders

Cranes, hoists, foundry equipment

2.8

17%

GASKETS.

Insulated wires and cables

Candles and beeswax

321

1.2

OIL

both die cut and sheet types

...

for rotating shafts

SEALS...,.

MECHANICAL

Willett (Consider H.), Inc.—
•'

V». r

Williams &

Co., Inc.—

1.50

Williams (The)

RUBBER
72

0.40

8.00

197

*32

0.95

1.20

13%

0.80

1.3

1.28

26%

Winters

Natl.

Bank

(Dayton, Ohio)

fO.91

19%

2.75

EXPANSION

JOINTS

.for large

molded forms

small pipelines

4.7

..in sheet, extruded

4.8

(J. B.) Co...

5.0

5.2

FLUOROCARBON

Manufactures toilet articles

Wilmington (Del.) Trust Co.

ry,y:->y>

■..

GOODS....

"z".

4.4

Supplies for industrial safety,
welding, refrigeration, etc.

RUBBER

INDUSTRIAL

Maple and cherry furniture

„

for all types of shaft bearings

SEALS. .J,

4.1

PLASTIC

PRODUCTS........seals, laminates, and

molded parts

of Teflon*, Kel-F** and other plastics

Trust

„—

Wisconsin Motor Corp

;

3.6

j::DuPont

Company trademark

V **M. W. Kellogg trademark

8.9

Air-cooled engines

Wisconsin National
surance

Life

In¬

Co.

Life, health and

CASH

accident

Wisconsin Power & Light

DIVIDENDS

PAID

Electricity supplier

WITHOUT I INTERRUPTION

Wisconsin Southern Gas
:

Company, Inc.
Operating
Utility

Wiser

Oil

Crude
••

oil

natural

ducer

WJR

Company
and

natural

gas

Goodwill

Net Income

pro-

Station

(Detroit, Mich.)
Detroit

controls
propellers

Speed

fO.48

12%

1.75

Net Income
per

Cash Dividend
per

1955

5.3

$1,622,609

$3.61

.$1.50

1956

4.0

for

engines

and

Worcester

County Trust Co.
(Mass.)
Wyatt Metal & Boiler Works
_

York

1905

2,292,308

4.64

2.00

broadcaster

Woodward Governor Co

Sheet

The

SINCE

public

gas

and

steel

2.80

66%

4.2

2.34

39%

5.9

1.40

18%

7.5

plate

Corrugating Co..

Metal stamping,

15
15

wholesale plumb¬

ing and heating supplies

Details not complete as to possible longer reoord.
t Adjusted for stock dividends, splits, etc.

Continued

page

'i.ri ■'

with

has been in the investment busi¬

■

2.8

Benjamin Lewis & Co., 135 South

PACKING

GARLOCK

CHICAGO, 111.—Joseph F. Ham¬

our

will

fear.

(Special to The Financial Chronicle)

expendi¬
preserva¬

at Washington.

This

ever

Joseph Hammel With
Benjamin Lewis Co.

ProbIem by concentrating more
an(j. m0re power in the govern-

rests
rests

of life, to take
growing needs for
public and private facilities and
ayofa
tendency to solve the
our

restraint

products

Whitin

the

tures necessary for the

country de-

Federal

•,

Whitaker Paper Co......

this

them and spends it

The challenge we face is how to
meet

national economy ment

sound
solvent

6.7

we as a free peo¬
ple cannot solve, and there is no

forest

Manufacturer of automotive cable

Social

our

THE
30

problems which

ment

merit.

operat¬

Whitaker Cable Corp

not inflationary. Govern¬
spending is a major infla¬
tionary factor.
?
'

the

our

care

products

wise

ArmeT ForceTalonr0!!
aione.
11

and

Weyerhauser Timber Co.____

White

that

generation will only use the same
and courage that motivated'

5.6

41%

convinced

States, I

faith

& non-participating

Western Light & TelephoneWestern

3.60

American citizen and

Senator of the United

that

half

gave

takes it from

power.

strength of

upon

'
As
a

cnonri
organizations spend
earnings, it is inflation¬

own

whereas

ary

all

Western Life Insurance Co.._

'Participating

repository

Armed forces

our

Multiple line, fire & casualty and
fidelity and surety bonds

equipment for A. T.

the

their

and

»
foundation for further tax reduce
tions next year
•1
,
.

hiietnM«;;
business

nr
or

coordinate

Constitution.

Surety
.

nonessential

C^honahdeb^nd^ay

eral Government in any year be-

subordinate branch.

are

who

The

Western

reduce

aro^^e raraenfe

spending te

nual interest charge is larger than
^e total tax receipts of the Fed-

Republic
and as those who helped to main¬
tain it, we will see to it that no
administration,
Republican
or
Democratic, departs from the let¬
ter or the spirit of the American

(Toronto)

men

and

Western Assurance

made

ice

Westchester Fire Ins. (N. Y.)

Makes

legislative

Mfg. Co,—

manufacturing

Wholesale

Congress

not

was

hold¬

and

be*5 made°'to

Republic
The national debt has grown
of the from $48,900,000,000 to over $270

The

utility

West Penn Power Co.—____

■■;v ■-v,

growth of the Federal GovernConstructive^ support is

legislative, executive, and judicial,

Operating public utility

Disinfecting Co.——

of power

H ou^ erjtire
lia,close look at

tween the founding of our gov- the men who sat at Philadelphia
but they also made the Federal ernment under the Constitution and under what I believe to have
Government one of limited and J"
1789 and when we entered been divine guidance, gave us first
of specified powers and reserved World War II in 1941. ;
^ r.
Independence;
all other powers to the several
Now, frankly, I do not subscribe
°Vr ^onstitution, there
States and to the people"/hereof, to the theory that if individuals
domestic

West Coast Telephone Co....
West

history

As a result they not only ereated three great coequal branches
of the Federal Government
the

1'..'...

Welsbach Corp., class B_.
Maintenance

14ft;

,street lighting systems

this

the

prudent

?2^orLun ^"culture,
5' !n5.e

single agency greater than the total cost of all
of national government that the functions of the government (infreedom they sought to guarantee eluding national defense) as late
could be easily
lpst.
as the fiscal year 1938. The an-

Wells-Gardner Co..
Electronic manufacturer»'

™s ^ ♦&§ «me

K t0.Kheir was a Th6y k?eW interest alone tta the 1 Kllion of
time' concentra- bil"°nV T,he aTU?t debt is now

tion

Fixture.

soda

can

and responsible citizens m private

that where there

Watson-Standard Co..
Weber Showcase

well

Makes metal working machinery

♦

•;r

The

6.4

Crude oil and; gas producer

and

responsibility that each citizen
For the fiscal year ending June
has an obligation to undertake can 30, 1941, the budget expenditures
well lead to a chain of events that amounted to $13,262,000,000. The
would undermine both our gov- 1958 proposed budget is $71,800.ernmental and economic systems. 000,000.
\
■

Waterburyi-Farrell Foundry. 103

\. ;•

Insur¬

Go. (Evimston^ 111.)

new

the

f
ance

generally, in requesting

Appro*.
%\
■-% Yield

Extras for

Years Cash

Washington

page

Solving Odi Domestic Problems'■ *
And Fearing No Foreign Foe

Including
No. Con•

additional programs until we

Nation's Business Growth

■

/row

Indispensable to Investors and

(1861)

The Commercial and Financial Chronicle

(1862)

Continued from page

Cash Divs.

Over-Tbe-Counter Market

-y'-v

Including
secutive

Inc.

Quotation
Dec.

31,

Based on

Operating public utility

*14

American

Manufacture

3.7

1.20

American

0.30

6V4

4.8

4.50

561/2

8.0

1.00

Department

California

21/2

16.0

0.85

221/4

mines

Illinois

3.8

Atlanta

Fire
9

Fire

and

Auto

0.075

complete

Shoe

t Adjusted for stock

to possible

longer record,

5.3

.TABLEII

16%

0.60

2.6

0.20

1.00

191/4

0.75

4.4

CI.

and

Co.___

0.65

0.80/

1.05

141/2

3.8

Phonograph

4.5

Inner

tires,

PAYERS

tubes,

brake

lining,

Manufactures

coated

Mfrs.

oil

Chicago

10 YEARS

Co.

6.2

51/4

0.57

51/2

and

Oil
oil

2.00

5.0

5.3

t0.33

0.225

3.5

h.od

traffic

and

0.8

40%

0.45

t'0.30

20% ;

2.2

12%;

2.5

signals

0.40

2.3

0.80

20%

3.9

»*1.18

5.4

production

Corp

products

Sign & Signal Corp.
Natl.

Bank

of Trenton

10.4

City

Fort

5.0

foundry

Worth

Fort Worth

4.3

0.70

10%

6.5

Iron

1.45

Ornamental

Ornamental metal

90%

1.75

carrier

frozen

Resistor

Flour

equipment

1.6

6.6

etc.

First-Mechanics

wells

_____________________

50%

Signaling apparatus

0.9

Railway Equipment

Railway

and

Electronic

fabrics

Cedar Point Field Trust, ctfs.
Texas

0.05

0.80
6.00

Corp.

Federal

pumps,

pumps

Crude

bicycle

7.0

Industries, Inc..

Equity

6.6

Erie
8

6%'

Variety chain In South

etc.

Carpenter (L. E.) & Co

for

0.50

4.8

«■

Eastern

records

Carlisle Corp.

•

coal

common

Canned

Operating public utility

Consecutive Cash

l.OO

Eagle Stores Co.*^

5.3;
16

4.4

0.45

Dulany (John H.) & Son

toys

Capitol Records, Inc

•

i; /v.-.'.

Coal

Portland, cement

insurance

(Milton)

Games

261/4

7.9

9%
225

Dewey Portland Cement Co.

boring mills

1.00

12.0

Chicago Trucking Co.,

Motor

Shoe Corp._

tngines

gas

Turbines,

5.2

10.00

Laval Steam Turbine Co.

7.3

Engine Co.___

and

Bituminous

Bardeleoon

Denver

Co._

;

manufacturer

Diesel

instruments

Bradley

3.50
0.75

1.00

6.3

De
,

1.3

tubes

appliances

■

f0.44

17%'

Motor Conch

>: Manufacturer of domestic ga:P

9.1

bags

Brooklyn Borough Gas Co.

OVER-THE-COUNTER

4.8

stun?

Cribben & Sexton Co.__

Cummins
0.15
.

Blue Ridge Insurance Co

16%

Denver hotel

1.00

;

Bausch Machine Tool Co

Diversified

fO.30

Products

Cosmopolitan Realty- Co

3.3

repair machinery

and

Rock

Cooper Tire & Rubber Co.__

financing

Drills

4.0

Kentucky bus service

5.7

Shoe

Paper Co.___

Optical

dividends, splits, etc.

DIVIDEND

0.80
f'■

Bausch & Lomb Optical
not

Tires and

1956

'■;;

Freightways, Inc.

Cf addock-Terry

Auto-Solet' Co.

2.7

proof building materials

Details

20%

1.40

conveyor systems

Cartons and

and

Cfyntinental

In¬

Atlas Finance Co

Kentucky

Zonolite Co.

Gravel

0.09

Co.

Mechanical

gold dredger

Zeigler Coal & Coke Co
Owns

0.40

Anchor Steel & Conveyor Co.

Yuba Consol. Gold Fields

National

1956

11%

freight

Consolidated

Mineral wool

5.6

351/2

2.00

Midwest

stores

;

.1.20

cards

Assurance

American Rock Wool Corp._.

*10

Younker Bros

greeting

Diversified insurance

5.5

3.5

insurance

American

Railroad cars and equipment

0.25

0.60

work

Transit

12.6

bus service

(malleable)

Fulton

Churchill Downs, Inc
Cash Divs.

Approx.

Including

% Yield

No. Con-

Extras for

secutive

12 Mos. to

Years Cash
Divs. Paid

Dec

31,

Quota-

Based

tion
Dec.

1956

Gas

Tennessee

Alien

1956

chines,

C.)

Foil

Ma-

Inc.

1.10

20%

5.3

Natural
0

gas

5.3

251/2

0.50

Co.

f0.50*

2.0

12.3

0.95

15%

0.60

6.3

8%.

6.9

7.8

1.00:" 2oy4

4.9

2.50

2.8

1.00

4.0

Auto

0.40

3.6

2.00

5.3

15%

6.1

•

0.70

Parts

Fire

Insurance

Company

8.7

Fire

and

5.7

allied

linos

insurance

Pumps, Inc

Pumps and

0.80

...V.

parts distributor

Gould
6

0.525

products

Germantown

financing

(Dallas,; Pa.)

distributor

Brothers, Inc

Genuine

coverings

Dealer

5.0

(R. E.) Co._.

Lumber

Commonwealth Telephone Co.
8

1.00

Sheller and packer of pecans, wal¬
nuts and almonds

laminating

Commercial Banking Corp.

Foil

rolling,

Color-Craft Products, Inc

Adding machines, typewriters, etc.

Allied Gas Co._

lacquering

Wall

Business

0.80

Storage

Chicago cold storage

Gamble

Cochran

?.■

(R.

Cold

trench excavators

Natural

Co.____,r

Pipeline

7.2

Manufacturer of mechanical

Alabama

Market

Funsten

Cleveland Trencher Co._____

Dec. 31,

1956

1.30

"Kentucky Derby"

Paymts. to

31,

water systems

Great Lakes Steamship Co.

Telephone service

Freighters
Details

not

t Adjusted

complete

possible longer record,
for stock dividends, splits, etc.
as

Details

not

t Adjusted

complete

possible longer
for stock dividends, splits, etc.
as

record,

Green Mountain Power Corn.
Public

utility, electric

and gas

t0.93

Vermont

Greene Cananea Copper Co._
Metal

3.50

0.70

12%

5.7

t0.39

12%

3.1

0.70

11% <

6.1

2.00

5.5

10.0

mining

Greenwich

WITHIN CONNECTICUT-DIVERSITY

Gas

Distributor of natural

gas

■

Gregory Industries, Inc
Stud

Natural

Gas Service (Straight 1000 Btu)

Stamford, Torrington, New London;

welding equipment and
welding studs

is supplied in:
* *" *

Hagerstown

;

supplied in:
Torrington; 'New London, Manchester, Middletown,
Thomastoiv Darien, Waterford, Montville, Portland, Cromwell,
Durham, Middlefield, Farmington, Avon, Collinsville, New
Hartford, Lakeville, Salisbury, Sharon, Canaan, Norfolk and
Falls Village.
use

our

Brass, American Cyanamid, Cheney Bros., Collins
Company, Conn Broach & Machine, Ensign Bickford, Fitzgerald

Gas

Co.

supplier

Sugar
9

8
production

Details

not

t Adjusted

;

complete

for

stock

possible longer record,

dividends,

snlits.

et».

Ifit's Connecticut

Manufacturing, Goodyear Rubber, Hayden Manufacturing,
Laboratories, Nelco Metals, Northam Warren Corp.,

We invite you to use

Machlett

gas

service:

American

Natural

Stamford,

Nationally known manufacturers who

Haytian American Sugar Co.,

Electric Service is

Norma

Hoffmann, Pitney Bowes Postage Meter, Plume &
Atwood, Remington Rand, Robert Gair, Robertson Paper Box,
Ronson, Russell Mfg., Seth Thomas Clock, Sheffield Tube,
Sidney Blumenthal, Stamford Rolling Mills, The Torrington
Co., Torrington Manufacturing, Turner & Seymour, Underwood

for

both

listed

kets—and also

our

and
our

complete facilities

unlisted

security

mar-

;

statistical information

Corp., U n i o n H a r d w a r e, U. S. Gypsum, Yale & Towne,
Warrenton Woolen, Whiton
Machine, Wilcox, Crittenden & Co.

Chas. W. Scranton & Co.
Members New York Stock

Exchange

"
I

209

The Connecticut Power
„

General Office:

—

176 Cumberland

-•

STREET
'

Bridgeport

Danbury

NEW

HAVEN

Branch

■

•

CHURCH
A

Company

Avenue, Wethersfield, Connecticut

Annual Report on Request.

Paymts. to
Dec. 31,
Dec. 31,

;

Lines, Inc.
7

Based

tion

f0.22

Motor

Corp.,

31,

1956

Co.

Diversified

f0.99

•

0.475

Top manufacturer of band
instruments :'rr._.\' .t'.v'-/;.'.

3.6

*■

Home

surance

18%

Mart

________

Corp.

paste for tobacco

Youngstown Steel Car Corp..

f0.66

Greetings

Class A and

Operates hotels, camps and stores

Licorice

Divs. Paid

Products

Furniture

Dfcc.

(G. C.), Ltd..

Consolidated

Chicago real estate

4.2

Yosemite Park & Currv Co._

Years Cash

1956

Quota-

lumbering;

Building Co.

1956

Operating public utility

Young (J. S.) Co

12 Mos. to

Logging and

York Water Co._—

1956

% Yield

Extras for

secutive

markets

Forest

American

Dec. 31,

;

No. Con-

Ccnn

Corp.
>•

Paymts. to

31,

1956

2.00

County Gas Co.

Dec.

31,

Paymts. to
31,
Dec. 31,

V/;, Approx.

imuiuiiig

Markets,

super

Based

tion

1956

Food

—

American

% Yield

•:

12 Mos. to
Dec.

Beta

California

Approx.

Extras for

Divs. Paid

Dec.

Quota-

Cash Divs.

No. Con-

Alpha

Nation's Business Growth

Years Cash

Divs. Paid
-

•

■>

Cash Divs.

% Yield

Extras for(
12 Mos.to

secutive

Indispensable to Investors and

York

Approx.

Including
No. Con-

Thursday, April 18, 1957

...

CONN.

Offices in
-

New London

New York Rhone: REctor 2-9377

Watorbury

Teletype: NH 194"

....

Number 5620

Volume 185

...

The Commercial and, Financial Chronicle

Cash Divs.

Over-The-Counter Market-

y-:

■

•

No. Consecutive

Cash Divs.

Natural

Extras for

Quota-

'secutive

12Mos.to

tion

Paymts. to

Dec. 31,

1956

Dec.

Divs. Paid

31,

1956

Finance Group, Inc.—

0.25

Home

New

0.80

Norris-Thermador

Pulp,

and

paper

Indiana Gas & Chemical Co,

16%

0.40

71/2

yyff-;
Inter-County Title Guarantee
Mortgage; Co.

,%.3

International Textbook Co.

Interstate Bakeries

2.30

Mfgr.

Co:n mon

1.20

4.8

1.40

0.80

11%

0.50

71/2

mowers

0.40

501/4

Natural

3.00

Corp

Kansas City

■k

Edible

6.0

1.00

0.25
1.00

4.5

51/2

180

5.5

5.3

121/2

Plastic

8.0

Portland

I8V4

6.6

1.20

6.0

West

fO-34

1.83/

331/2

19%

1.00

4.2

0.70

->2.2

Louisiana

20 %

:1.7

■*

1.25

and

tools

%.7

IOV2

0.60

t0.39

0.40

1.25

4.0

1.35

5.6

4.00

5.3

t0.50

223/4

2.2

0.70

10%

6.4

1.00

16%

6.1

1.00

15%

6.3

2.00

140

1.4

t0.70

8.7

1.50

4.2

Engineering

kraft

and

5.0

South Jersey Gas Co._

0.95

11%

8.2

South Texas

6*%

gas

Development Co.

Class B

fO.29

1.8
7.6

papers

rag

2l3/4

drug store chain

0.95

Texas

4.7

royalties

Southdown

Sugars, Inc

Operates Louisiana sugar

0.60

2.9

plantation

Southeastern Public Service-

/"■'

cable

and

0.50

—

Natural

0.5

108

27%

1.20

4.3

Nevada

Power

Co.

utility

■

Southern Utah Power Co

0.40

Inc.-

8.2
1

Southland Paper

'/*"-/

ment

Bar

main-

1.00

9
storage

16%/

Diversified

6.1

Standard

0.15

1.50

250

■*l;2

Tobacco

6.2

1.00

4.2

and bulk candy
not

t0.19

t Adjusted

6
bonds

Details

not

coated

complete

papers

Corp

4.50

10.7

to possible longer record.

splits,

etc.

Continued

splits, etc.

sure

your

page

participate in

Limestone

t0.09

1.50

Maxson (W. L.) Corp

30%

-i. 4

DELAWARE VALLEY, U. S. A.

Electro-mechanical and electronics

apparatus

ing

Engineer¬

Metals

powders

chemicals,

0.40

Disintegrating Co.—-

Metal

■■

Jfe'A-

industrial empire

Here, in what is now the world's greatest

4.9

J- Vulcaniters

;

customers

electronics

accelerated schedules

and

—

others

are

steel, oils,

—

planning future productions on

in order to meet

constantly increasing demand.

Mexican

Eagle Oil Co., Ltd.
Ordinary

Property

Moore

0.52

0.10

Stroud

.a*

interests

(William S.), Inc

Retail

chain

stores

•

■

y.o

Manufactures furniture

'National
'

181,2

0.75

Morganton Furniture Co..

Company, Incorporated, is playing an important part in

this dynamic development

'""1.4

—

;

Ask

—

and will gladly render any service to you

customers, too, may benefit from it.

that your

about

—

Bank of Toledo

1.50

(Ohio)

3.6

Nazareth Cement Co.

Beryllium Corp.

»■■«...
*

Details

not

complete

to possible

t Adjusted for stock dividends,

Phila.

Hajoca Corporation

longer record,

splits,

etc.
tSSiZ.

South Jersey

Hercules Cement Corp.
■

'JkSLti-i

I. T. E. Circuit Breaker Co.
Penn Fruit

Rambo, Close & Kerner

Warner Co.

Company, Incorporated

Alan Wood Steel Co.

Philadelphia Bank Stocks
"

PHILADELPHIA 2, PA.

•

vi£"r
Phila.
"7

New York

Telephone

REctor

PEnnypacker 5-2800

Gas Co.

Strawbridge & Clothier

Phila. Suburban Water Co.

Incorporated

1518 LOCUST ST.,

Transportation Co.

Smith Kline & French Labs.

Hamilton Paper Co.

Telephone
2-2820

/"**'

Teletype
PH 63

■

■'

•

■

Copy of the Philadelphia Inquirer 1957 Delaware

Valley illustrated supplement

sent

request.

W**--

Corporate and Municipal Securities
WALTER CiHELSON

EDMUND J. DAVIS
Vice

President

Charge

Corporate Department

Manager

Municipal

STROUD & COMPANY
INCORPORATED

j&h

Bond Department

•"

to possible longer.record,

for stock dividends,

3.3

Paper Manufactur¬

t Adjusted lor stock dividends,

complete

"v"*"ffV*'

merchandising

Sulphite

0.10

sheetings

ing Co.

insurance

McNeil Machine &

■

insurance

Material Service

Commercial

Standard

Tobacco Co.

.0;

Marine
—

.4.8

3.00

1.8

./"'M;-v;V:;

operations

Spartan Mills

r;:'

warehouse

Co.

Mills, Inc.—

Southwestern Engineering Co.

storage facilities

♦Details

2.5

0-40

Co. Inc.

Maryland Casualty Co
Diversified

Newsprint

Heavy duty trucks; mining equip-

./ ■■

supplier

gas

Southern

mills

Queen Anne Candy Co.—

Marmon-Herrington

1.3

cold

Diversified

and

6.4

/;5

Retail

-;/:/{'

wire

lumber

Insurance

r::'
9

construction

tenanco

0.40

mixing equipment

Natural

and

fl.53

doors

Oilfield

Sorg Paper Co.

•

Quaker City Fire &

alumi¬

Macco Corp.
/■!

Cold

31/2

f0.09

jalousie

7.8

Quaker City Cold Storage Co.

;

awning type windows. glass
and aluminum Venetian type win¬
dows

Sommers Drug Stores Co

films

and

Co.

Public

num

5.1

(T. L.) Co

Cloths and

t0.95

Ludman Corp
"Auto-Iok"

19%

Special machinery

Oil

Coast

age

Pharmaceutical products

Manufactures

5.9

Produce Terminal Cold Stor¬

j
2.25

baker

1.00

products

Snyder Tool

1.7

heat transfer

Corp.

Portable

(Chicago)

Coast

insurance

Co.

Portable Electric Tools,

Cement

Langendorf United Bakeries.
West

2.0

Paints and varnishes

Smith
5

Pope & Talbot, Inc

.5.7

Laboratories, Inc.—

La Salle Natl. Bk.

4.0

26%

Operating public utility

Lakeside

22%

fO.525

Smith-Alsop Paint 8c Varnish

1.20

8
of

covered

Cameras

etc.

Co.

■'i.

1.20

Manufactures cement

0.90

Shedd-Bartush Foods, Inc
Margarine, peanut products and

Electric

Keyes Fibre Co
Keystone

12.8

Co.

gas

Polaroid

Organization

trays,

12%

•

—

plastic

1.60

(NYC)

insurance

1.00

Service station equipment

plates,

5.5

Inc.

10.00

Plastic Wire & Cable Corp.

nuts

Paper

Co.

surance

Diversified

electric

Lighting equipment

Security Title Insurance Co.-

Pittsburgh Reflector C., CI. B

Structural Steel

Kent-Moore

1.00

Sulphite,

California,
holdings

0*8

4.00

12.3

dairy products
Fire & Marine In¬

Seaboard

—

Pickering Lumber Corp

Buildings, bridges and tanks

Kelling Nut Co

5.3

salad

Petersburg Hopewell Gas Co.

Pacific Coast

products

■*6.7

Mortgage banking and real estate

Leader

fO.96

Beer and

technical journals

Manufacturer

1.5

suits

and

Miguel
Brewery,
(Philippines)

6.1

Title

Publishing Co
and

0.40

San

0.10

Perfex Corp.

aircraft

Jersey Mortgage Co
Kaiser Steel

Women's coats

Concrete

Business

t0.58

fields

automatic

6.2
7.0

Rumford Printing Co.,

Controls, Inc

Penton

different

5.1

Regional super market chain

Manufacturing Co._

lawn

Power

producers

0.40

5
'

0.25

6.6

Appliance

controls

estate

heating equipment

Rothmoor Corp.

Penn Fruit Co. Inc

utility

Precision parts for

real

Gordon

3.50

4.9

controls

1.00

Jack & Heintz, Inc
i

Manufactures

Electric Light &
Power Co

Jacobsen

time

5.5

Rochester, N. Y., bus lines

electric

fans,

Rogers Corp., CI. B

1956

pumps

14%

0.50

doors

core

Brewing Co

Beer

carrier

public

5.5

system components

Penn

————

Operating

131/2

Gas

and

Rochester Transit Corp

Pearl

Iowa

' >V-

Manufacturer of hydraulic & fluid

f0.38

and vacuum

motor

V-

0.25

Magazines

Park-Lexington Co._

^6.1

371/2

iX?/ cleaners ;
:
Interstate Motor Freight

System

8.3

y'-'y-y-

Paymts. t«
Dec. 31,

"J-

paint

motors,

cranes,

Corp.

Five

31,

1956

Roberts

5.0

' V"

f0.72

Paragon filectric Co.-lj.iui-^

Baking bread -and cakes

•

0.75
•

Parker Appliance Co

Interstate Engineering Corp.Aircraft parts

" :

Pantex Manufacturing Corp.

home

Corp

23%
v

Ui-

Corp.—

linens

hollow

Trailers

cement

Manufactiming

Laundry 'equipment.. '•
105

5.00

and

fl.18
.

7/■ ,•

■

Palace Corp

:§.8

—

Printing,
publishing
fcttidy schools

and

openers;

4.5

production

2.6

Radio, TV-electronics; garage door

Coke

bp Title insurance,

> '.<■

screening

1.00

Packard-Bell Electronics Co.

27% ^43

0.75

Indiana Limestone Co.
Limestone

6
5

fabricating, appliance
manufacturing

products

paper

metal

:Towels

1.26

5.9

hoists

Metal

5.3

171/2

Reardon Co.

Jersey Natural Gas Co.

Opelika Manufacturing Corp.

Class A
v

tion

Dec.

1956

0.50

Operating public utility

"a'

Hubinger Co.—.—.
Corn 'refining
/;./■*.•/7.;///
Hudson Pulpf & Paper Corp.,

Dec. 31.

Divs. Paid

% Yield
Based on

Quota-

12Mos.to

Years Cash

1956

Robbins & Myers, Inc.—

4.2

secutive

Dec. 31,

"Bondex"

manufacturing

""Insect

Holding company—auto financing

Lime

3.8

Paymts. to

and Pennsylvania

gas

N. Y. Wire Cloth Co.—

3.00

tion

1956

1.025

New England Lime Co

Hibernia Bank (San Fran.)__

Extras for

Dec. 31,

31,

1956

grade crude oil
-

Years Cash

No. Con-

National Gas & Oil Corp..

Approx.
% Yield
Based on

Including

Dec.

Divs. Paid

Approx.

Including

% Yield
Based on

12Mos.to

Years Cash

No. Con♦

Quota-

Extras for

Indispensable lo Investors and

Cash Divs.

Approx.

Including
'

Nation's Business Growth

(1863)

PHILADELPHIA 9
NEW YORK • PITTSBURGH • ALLENTOWN • LANCASTER •

ATLANTIC CITY • SCRANTON

«4

The Commercial and Financial Chronicle

(1864)

Continued

from

Cash Dfvs.

page

Over-The-Counter Market

Warner & Swasey Co

Based

Quota-

12Mos.to

tion

Paymts. to

Dec. 31,

1956

Gas properties
State)

Dec. 31,

1956

Dec.

31,

195*

10%

4.8

36%

1.4

1.25

5.2

22 %

2.5

Wiggin Terminals, Inc., v.t.c.

13%

3.6

switches

and

vinyl

1.00

16%

6.1

0.85

7.7

plas-

fl.43

25%

5.6

1.30

9.3

Wyckoff Steel Co

tisols

Cold

Stuyvesant Insurance Co

v0.16

0.5

0.82

18%

4.5

0.60

4.0

Auto and marine insurance

Suburban Gas

Service, Inc.__

Tejon Ranch Co

0.60

3.3

holdings
Television-Electronics

line

Fund,

Inc

3
invsetment

lines

Texas Eastern

Transmission-

Operates natural

f0.92

0.50

12.75

Corp,

gas pipeline
Guarantee & Trust

1.40

25%

fO.98

21%

1.20

6.3

Gas

Pipe
5

0.925

17%

5.2

1.25

2.4

redwood

U. S. Realty & Investment Co.

f0.15

28%

0.5

1.25

Sugar Corp.—

0.90

5.0

Sugar production

and

gas

Wood

because

stock

focal point for the concentration of
offerings of potential purchasers and

sellers for all securities listed

Genuine

it.

auc¬

of $12.75 shown here is the

that figure.

traded

cases

on an

where less active securities

exchange, it devolves

upon

are

the stock
a

8.1

2.50

1.3

of XYZ stock and the

0.70

7.0

anyone else to buy that stock, he himself would
be expected to enter a reasonable bid on his own.

selling price and the yield

One, five, ten, fifty
dealers

different

.'7., ' V. ' 7

...

of the country
given security,.

a
,

■

;

of the

parts

7 ■'

over-the-counter

country may

interest themselves in

"making a market" for a
given unlisted security. Prospects known to the
contacts

market, in the absence of sufficient public orders
to buy or sell, by, in effect
though not in strict
parlance, putting in
words, if

you

order for his

own

account.

wanted to sell 100 shares

specialist had

order from

continuity of

largely dependent
and his

any

upon

locally

The process of
constantly seeking out buyers
and sellers
is characteristic of the
Over-theCounter Market.

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¬
of a buy or sell order is the incentive for

ence

"counter"

dealer

his financial

limitations.

own

may

believed

are

selling interest in the instanfi
investors who might be induced to
'
; ,

Over-the-Counter

willingness to thus risk his

in other cities),
who

market thus created is
resources

individuals

buying

security,
buy.

the
The

(either

include

have
In those

12%

often

possible longer record,

offering

buying interest in

in it.

1.05

dealers in all parts

first dealer, or known to those other dealers he

marketing in a security cannot be main¬
tained, however, unless there is sufficient activity

3.8

It is his business to know

exchange

t Adjusted for stock dividends, splits, etc,
fThe 1956 dividend payments were $0,366 from income, and $0.55*7
payable in cash or stock from capital gains. The Dec. 31 value
on

market

inventory positions in the

assume

involved.

might have

Corp.——

to act

In less active stocks the over-the-

narrow.

which other

quite

securities

0.50

producer

complete

choose

course,

brokers and not dealers.

nqt wish to

5.5

heels, bowling pins, etc.

is based

and

In other

not

28%

hotels

Details

Pipe¬

1.57

Lingerie

Vulcan

plus

cents,

Co.

Virginia Hot Springs, Inc.—
Resort

Northwest

utility

Vanity Fair Mills
.''

firms, of

Because of competition, the spread between the
bid and the asked figures on more active stocks

held.

specialist for each particular stock to create

Upper Peninsular Power
Utah Southern Oil

Some

tion

5.2

Real estate

Oil

Pacific

exchange market is often referred to

provides

and health

public

1956

common

auction

bids

U. S. Life Insurance Co

Electric

The

4.3

Corp.

States

in January
May of one share of
for each 70 shares

payment

"quoting" and maintain inventories

are

possible longer record.

Over-the-Counter Trading

5.5

Union Lumber Co

United

solely
to

4.2

Natural gas

accident

cash

dividend

Corp.

dividends, splits, etc.

Difference Between Listed and

insurance

California

complete

for stock

they

them.

counter dealer must find contra-orders if he does

Co.

(N. Y.)
Transcontinental

not

7:2

Natural

Life,

caskets

pipelines

gas

Texas Gas Transmission

Line

ties
in

truck

co.

Tennessee Natural Gas Lines,
Inc
+———

Title

specialized

burial

Represents
stock

California land

mutual

Details

t Adjusted

Matcrlais-handling equipment

Title

Corp..

Manufacturing
and

....

steels

York-Hoover
bodies

As an integral part of
operations dealer-brokers stand ready to
buy and sell substantial quantities of the securi¬

their

gases

■Superior Separator Co

Pipe

finished

cities from coast to coast.

department store

Wayne

instan¬

wires

Thus many

oil wells

Operating public utility
Wolf & Dessauer Co.__
Fort

each other

private telegraph
their disposal.

New York, for instance,

Boston harbor

0.50

with

through

un¬

Most of

over-the-counter dealer-brokers, in
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

0.50

f0.50

70.57

communicate

can

market for

listed stocks and bonds.

other facilities at

Services

making

some

4.7

8.6

tremendous

are

26%

1.25

Waverly Oil Works Co.-

Here there

them

2.6

15%

Wisconsin Hydro Electric Co.

cars

Open-end

e0.40

0.80

spring;
seats
for
and
buses,
motor

quite different.

interest themselves in

6.4

31%

number of dealer firms from coast to coast that

taneously

distributor

Petroleum

2.00

Manufactures
control

1956

Stainless steel

and

Stubnitz Greene Corp
trucks,

Paymts. to
Dec. 31,

(Washington

Washington Steel Corp

Silk, rayon and nylon fabrics
manufacturer

31,

1956

On the Over-the-Counter Market the situation

listed and

Oils, greases and soaps 7
Welex Jet Services, Inc.

Pharmaceutical

tion

Dec.

31,

1956

Washington Natural Gas Co.

Appro*.

Extras for

•Stuart Co.

Dec.

Thursday, April 18, 1957

The Over-the-Counter Markets-*-"

tools, earth moving ma¬
chines, textile machinery. etc.

% Yield

secutive

Textile, Inc._

12 Mos.to

Based

Quota¬

Machine

Wo. Con-

Stern

Extras for

Including

No. Con-

•

Divs. Paid

Cash Divs.

Di/s. Paid

■

Years Cash

Nation's Business Growth

Years Cash

secutive

7,-7

Indispensable to Investors and

Stern1

Aoprwt.
% Yield

Including
"•"7 7

...

money.

find

Market

the

thus

opposite.

has

The
physical

"'7";;'

practical matter, though, individuals in
city of 100,000 or more can frequently pick
a phone and call a dealer-broker and get an

any

execution

an
order for an unlisted
security
momentarily—often while the call is progressing.

Versatility in casting production in the
heart

Some "Counter" dealers sell

directly to inves¬
they may have a
dealer following
throughout the country consist¬
ing of retail firms that are always looking far
securities that present
good values to sell to their

of industrial America

tors themselves.

DAYTON MALLEABLE
IRON

•

Dayton 1, Ohio

In other

Numerous

exchange firms also deal in over-the-

counter securities and
any
or

sell to

Dayton, Columbus, Ironton (Ohio), Buffalo
and

Cedarburg (Wisconsin)

exe¬

cute customers' orders for unlisted securities.

Many listed securities,

that do not must buy

over-the-counter dealer to

counter when the blocks

PLAN 15

cases

investor clientele.

from

COMPANY

quick orderly sale

on an

An investor need not

intricacies

enumerated

too,
are

are

sold over-the-

too

large to make
exchange possible.

himself with the

concern

above,

since

his

dealer-

broker will obtain current market
quotations on

over-the-counter stock

any

CASTING IN gray

iron, malleable

all details of

malleable, steel, aluminum and magnesium

The

bond, and handle

purchase and sale..

longer trading day in the Over-the-Counter

Market is often
On

vestor.

distinct

advantage to the in¬

exchange, securities

can

only be

sold in New York between the hours of
10:00 and

Annual Statement available

3:30; in the Midwest between 9:00 and 2:30, and

request

the West Coast between the hours of
7:00 and

2:30.
ties

However, in most instances unlisted

can

in the

be sold any

Midwest, and

time between 9:00
on

securi¬

and 5:00

the West Coast it's

longer than that. Dealer-brokers

even

in the Over-the-

Volume 185

Number 5630

•

...

The Commercial and Financial Chronicle

Over-The-Counter Market

(1865)

Merrill Lynch

Indispensable to Investors and

Reports Record Gross

of
,

Bui Slight Bip in Profits in Last Fiscal Year

bonds from the proceeds

which,

together with internal
funds, it will repay the balance. c>2
its bank loans and finance its

struction

Nation's Business Growth

Candid report issued

by Directing Partner Winthrop H. Smith.

Underscores need for still
Counter Market there

the

Exchange Commission Rates
Counter Dealer

When

for you

the cost
mission

vs.

profits

exchange-broker executes an order
exchange-listed stock, he tells you
price as well as the amount of his com¬
on
your confirmation slip.
On the other
more

"net" basis

you "as
it is termed in

head

Merrill
tober

Winthrop
'

H. Smith

;

has 116 domestic

now

foreign offices,

rose

the year ended
3% above the pre¬

$83,497,000

and

Mr. Smith

increase

almost

double

Commented "Our

revenues

despite

was

slow-down in the financial

munity

as a

com¬

dealer, be¬

including

expenses

deductions

a n

income

Federal

mated

esti¬

taxes

individual

partners, final profits
$4,514,000 or exactly $41,000
below the previous year.

were

The firm's net worth

12%

000,

record

new

rose

about

First

The

manager

member.

An initial

Corp.,

Co.

Utilities

$15)

(par

price

stock

per annum,

1948, $1.10

yearly

and

used

$1.24

fer

for

sale

paid

was

able

ap¬

1955,
quar-

Mar. 1,1957, and a like

June

declared,
to

pay¬

holders

May 15, 1957. The

stock

participate

first

share in 1956. A

has been

common

year

1950

through

dividend

record

$5,000,000

$1.20

terly dividend of 32 cents

this

later

proximately

1949,

from.

expects to of¬

company

cento

paid in 1947 and

initially to reduce bank loans,
presently
outstanding
in
the
of
$4,500,000,
through
which the company has financed
its
construction
program
since
The

being paid during
Quarterly dividends ag¬

amount

1953.

the company'?*
June 15, 1.946, &

gregating $1.00
were

sale

will

stock

common

the

from

paid

was

that year.

$21.50 per share.
proceeds

dividend

total of 65 cents

common

offered publicly yesterday
(April 17) 75,000 shares of Iowa

stock

yC'-Y

lot trading on

the New York Stock

slight

decline, from

by specialists for their own ac¬
count, other member trading and

lic

trading

odd-dot

excludes

dealers

retail distribution

transactions

trading

lots.

of securities

of the southwest..

round

7,.'

NORTH

SIMMS

Reflecting Merrill Lynch's tra¬
ditional emphasis on the small in¬

-•

firm's percentage of
all odd-lot trading reached a new
the

vestor,

high of 19.6 compared
the

LOBBY
BUILDING

ALBUQUERQUE,

MEXICO

TELEPHONE

TWX

18.7 in

NEW

3-4614

AQT65

previous year.

Merrill Lynch

one

of the very

few investment firms which makes

financial

full

page

annual report is

firm.
survey

public.
of

the

16-

We Maintain

complete

because
we

Gas

Western

Company

completed

just

Trading Positions in

Arkansas

year-long "selfby the
Mr.
Smith
explained the
was
undertaken "simply

analysis"

well

feature

unusual

description

report to its cus¬

the general

tomers and

Oil

Aztec

Gas Company

Canadian Delhi Petroleum, Ltd.

wanted to know how

fulfilling

were

our

Electric Co.

Central Louisiana

fore-

Delhi-Taylor Oil Corp.
General Minerals Corp.
Southern Union

BLACK HILLS POWER AND LIGHT COMPANY
7"

•

Rapid City, South Dakota

►'

;

•

Service

Co.

Southwestern Financial Corp.

Gas Company

Electric

Southwestern

* fv

1'r

' •>

r" 7

Supplies electric service to the rapidly growing Black Hills Area

Texas Industries, Inc.

Petroleum Company

Texas National

in Western South Dakota and Eastern
Fiscal

Gross

Year

Electric

Revenue

Net

Income

Wyoming
Dividends

Preferred

•7v-.:

••.

■

Three

Paid

•

States Natural

:;.'

■

;

Gas

Company

Common

1951

3,169,838

469.325

80,747

3.463,445

503,552

78,046

291,491

3,841,185

549.210

75,891

RAUSCHER, PIERCE & CO., INC.

259,110

1952

302,285

Member
New York Stock
'

1953
1954

4.229,342

604,797

74.230

4.939,382

704,305

141,808

MERCANTILE

320.333

1955

American

350.928

1956

5.235.396

749,696

137.549

Stock

BANK

Telephone Riverside 1-9033
Austin, Forth

375,750

Exchange
BLDG.

•

(Associate)

DALLAS

I, TEXAS

Bell Teletype DL 196 and DL 197

Worth, Harlingen, Houston, Lubbock,
San

Direct

Midwest Stock Exchange

Exchange

Antonio, Tyler,
Wires

All

Victoria

Midland, Odessa,

and Waco

Principal

new

being offered will

in this dividend.

ankersley, Elliott & Morris, Inc.

$1,394,938 in 1955.

group,

Southern

revenues

amounted

company

net income of

Boston

the

$13,458,095
and
net
income
to
$1,498,369 compared with operat¬
ing revenues of $12,526,392 arid

During the fiscal year the firm
handled 12% of all public round

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."
The
mere
fact
that
under
the
"exchange
auction-specialist system" the spread between bid
and ask prices is close or narrow is no indication
that the investor gets good value when he buys
or that the seller obtains a
price in keeping with
page

investment banking

com¬

distribution

security and com¬
exchanges of which the

modity
firm is

one

utility

bodies of the 46

Values

Continued

communities
'

RE A

one

cooperative.
The
company • alifo
distributes natural gas which it
purchases under contract. 7 Y

Utilities Common Stock

the previous record of 12.3%; Pub¬

For

to five

public

above"
regulatory

Exchange,

panies and

Group
'

server

located

"comfortably

requirements

any

communities

lour;. other

of $40,500,-

figure which Mr. Smith de¬

scribed

157

Iowa

at wholesale

so,

,Y- Y.

•

Net

whole."

all

eharitable

frequently necessitating his taking the risk
of an inventory positioft, include the extensive
searching for matching bids and offers from
potential buyers and sellers.
When a security is taken from the Over-theCounter Market and listed on a stock exchange,
over-the-counter dealers 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'
profit rates may be somewhat higher, they may
afford investors "better" prices than the less
expensive service of exchanges.

!■. Y"

counties
having a
population of approximately 425,-000; it also sells electrical energy

un¬

Offers Iowa Southern

the

After

reports.

Firsl Boston

the

year

and

retail

Co.'tr

transmi?;-

During 1956 operating

offices and six

1952.

re-stated,

cases

firm, which
to

some

Complaint?"

annual

reve¬

nues

Utilities

electric

1956.

Total

interconnected

the

survey>

Southern

sion.and distribution system

and

Oc¬

the

Iowa

firm's policies have been modern-

Charles

result

our.

first.'"

come

please
write. Mr. Smith pointed out this
was an
approach seldom used in

large firm following
the
death

the

policy: 'The interests of

customers must

cally asks its customers "Have You

Smith became

sides

■

company dotis
presently expect to issue any
common stock prior to
i960..
••

In order to get additional "grass
roots" sentiment, the firm specifi¬

Mr.

11.

February,

over-the-counter

The

not

service.

but in essence they remain
changed, Mr. Smith stated.

the

con¬

until the early

program

1958.

ized

Win¬

ceding

dip

year

announced

exchange commission rates more
often than not are lower than the profit rates
over-the-counter dealers are obliged to operate
on.
An important reason for this is the fact that
services

throp H.Smith

often than

most

operat-

slight

the

Partner

It is true that

the

but

Directing

April

"counter" dealer.

record total

ended Feb. 28,

buys from and sells to

Lynch, Pierce, Fenner

income

fiscal

principal" or
the 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¬
firmation. "The over-the-counter dealer usually
acts just as a merchant does in other lines of busi¬
ness.
In other fields when you buy a set of dining
room furniture, a fountain
pen or what have you.
the merchant sells it to you at a flat price and
does not add any commission thereto. So with the
on

Merrill

ing

Charges

hand the over-the-counter dealer
not

The nationwide investment firm
of

additional

& Beane had

Stock

investor

part

the

job from 7:00 in
morning until 5:00 in the afternoon.
are

t>5

Markets

The

0866)

Continued

from

exposed
to
all
the hazards of
navigation
in
crowded
waters.

page

Here

Nuclear
"202" hearings,

recent

bility

In the

liability for negligence.

insurance

civil

aviation.

itself

concerns

license

make

foreign

nuclear

reactors

their

and

limiting liability for

maritime

injuries

dentally,

cover

(which,

land

inci¬

damage

caused
American

danger

Business

Reputation

reputation

American
and

good

marine would present.

business

land-based

from

will

over-assiduous efforts by our gov¬
ernment to get legal
our own

need

atomieally'rpowfered
would

problems,

but I

give rise to
submit that

have provided grist enough for
us to grind for the time being.
I

far

immunity for

manufacturers from lia¬

Intelligent "investors
fact

prices and values
ferent things.

dif-

two totally

are

•

3
V.V

pointed out before, the assumption of invem
tory positions is an integral part of the over-thecounter, dealers' task.
They must take the initia¬
tives in ias^irurig such positions. Although they-

% -a"

must btr

aware of and,
responsivev to the foibles:
theip customers, they cannot without unwar¬

■

Jn'v

hazard buy securities for inventory pur¬
^unless they - take cognizance of ' basic
economic "Values.
,

CHICAGO, 111.—John J. Weiss,
Albert

and

come

Klee

have

be¬

associated with Bear, Stearns

Co., 135 South La Salle Street.
Mr.
Weiss
was
formerly VicePresident of Arthur M. Krensky &

Arthur L. Devens

which

come

For 27th Consecutive Year

Supply Co.

Basic economic values may

elusiveybut they
sist

are

and

■.v

somewhat

appear

nonetheless real. They

mathematical

con¬

ele¬

non-mathematical

Some

ments.

insights as to the re^l value of a
be gained by checking such things as

stock may
its

earnings and dividend records, book value and
liquidating value. But the first three of these are
tied tor 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.
Tlie anticipated future average annual net
incomef of a corporation may be capitalized nu¬
merically^ but not without reference to many
non-nufrierical concepts. These include the acu¬
men, Initiative, imagination and forcefulness of
the officers and
directors
of the -corporation.
Speculation as to how the present and possible
future products of a corporation will fare on the
markets vpaay be handled numerically only to a

certaimextent.
When

Sets New

quick to recognize the

are

that

poses

from

Mountain Fuel

the intrinsic value of the stocks he wishes to sell,
i

Bear, Stearns Go.

Unlike the

reactor

power

located

■%'

ranted

J. J. Weiss With

Arthur
L.
cities,
Devens, ' associated
atomically-powered vessels would with Draper, Sears & Co., passed
sailing into large seaports, away April 13 at the age of 77,
can

Nation's Business Growth

;

by vessels) brings to mind Co., Inc., with which Mr. Klee was
the
liability
problems that an also associated.
atomically-powered merchant

somewhat troubled by the

Obviously,
anti-aircraft

not,

My reference to multi-national

equipment.

shall

Indispensable to Investors and

negligence

maritime nuclear incidents.

injury to its own residents to
extent it thought prudent.

conventions

sels, regulating their access to
populous ports, requiring appro¬
priate measures of indemnity, and
otherwise
limiting
liability for

Jr.

might prefer
companies to

color

and

transport
would

Over-Tfie-Counter Market

interna¬
tional convention governing the
use
of atomically-propelled ves¬
we

prevent any country from
providing
indemnification

course,

be ob¬

the

maritime

field

than risk devastating losses,
American

ably

its

under

auspices, setting limits on the lia¬
bility of foreign suppliers of nu¬
clear reactors, their components,
and materials. Such a step would
have important precedents in the

for

convention

national

En¬

Atomic

It could initiate a
drafting a multi¬

Agency.

ergy

conference

reasonable cost. Rather

tained at

International

the

and

could

coverage

Will

Thursday, April 18, 1957

Continued from page 65

could be raised against him. Prob¬

of American products? If
this risk is real, may we not do
better to enlist the good offices

shrink
from
exposure
to
unrestricted
atomic damage claims, whatever
their
basis.
Absent
government
indemnity, damage claims should
be kept to some amount for which
negligence

wherever

bility

ling Cole is reported favoring a
foreign indemnification provision
in bilaterals "except, of course [in
the case of]
any
proven negli¬
gence on the part of the American
producers." But doesn't the ex-,
ception take away the assurance?
American producers
might still
worry about what would pass for
proof

fault.

and Financial Chronicle...

traditional

actor manufacturer would be sued

Exports

we
seeds of distrust in the relia¬

sow

Rep. Ster¬

based

the

principle of
limited
liability may leave too
many people unprotected.
More¬
over,
in
this situation, the re¬

Third-Party Liability of
all

Commercial

individual i

consistently

purchases

stocks Without

High Records in

regard to basic econorryc values,
may "at iimes make money, but sooner or later

he will book losses.

>,1

"in

Utah-Wyoming Area

And

thoriparket" for

not do

after his

although he

may

remain

extended period, he

can¬

capital is exhausted.

Inventory Positions
■

Xv
1
So it is With the over-the-counter dealer.
r

C'
assumes

habitually

Operations of Mountain Fuel Supply Co. in 1956 reached
highs, with marked improvement over 1955.

If he

inventory positions at prices

new

Number of customers increased from

135,665

increased

1956

7,6%.

the

For

65.925 billion cubic feet

billion cubic feet sold in

1955.

126.081 in

1955 to

same

peripd gas" sales
compared with 59.218

11.3%.

Volume of gas run
through the Company's system in 1956
was more than double the volume of six
years ago and more
than three times the volume of ten years
ago.

Brief

Comparison 1956-1955
1956

Total
Total

assets

(depreciated basis)...

revenues

.....

Net income

Net income per

share...........

...

24,335,808

22.502.983

3.631,295

3.293,656

....

1.66

ton

Dividends

$69,032,138

1955

.$73,913,112

2.188,891.4 shares)

1.59
(on

2,076.584.4

shares)

1.20

.....

Number of stockholders

1.10

12.449

11.498

CINCINNATI

The
Company owns and operates 94 miles of
gathering lines, 470 miles of transmission lines, 2.112

BELL

miles of distribution mains and 702 miles of customer

service lines.

per

COMPANY

other Cincinnati Securities

and

System capacity is 291 million cubic feet

SUBURBAN

AND

TELEPHONE

day.

Members

New

York

American

Dividends have been

■

Company since 1935. Present
per

quarter.

Listed

dividend

the

rate

■

area

■

request.

Ogden- Provo

Salt Lake City 10, Utah

MAin

Direct
Hamilton

——

Dayton

Wire

—

Francis 1. du

Athens

—

Pont

Charleston

•

OHIO

Teletype—CI 585, CI

1-0560

Private

„

STREET

WALNUT

CINCINNATI
Phone

„

".Chicago Mercantile Exchange

322-326

CO.

of Utah and southwestern Wyoming.

General Office: 36 South State Street

(Assoc.)

Exchange

Commodity Exchange, Inc.
r

SUPPLY

Serving 73 Communities in the Salt Lake Citv

Exch.

Cincinnati Stock

Chicago Board of Trade
r

Copy of Annual Report
will he sent

FUEL

Stock

•.

Exchange

Midwest Stock Exchange

is $.30

Pittsburgh Stock

Exchange.

MOUNTAIN

•

paid continuously by the

Stock

—

232

Co.

Wheeling

Volume 185

Number 5630.

.The Commercial and Financial Chrorticle *: *

(1867)

interest

Over-The-Gounter Market

$29,500,000 Issue of

drive him from

must be

which

the

securities

bonds of Montreal Coke & Manu¬

facturing Company and

delphia

determinants of the real value of the

ciate

in which

The

own

account do

almost

4s,

3.5104%

business,

is with

counter dealers.: It is not necessary

have

million dollars

Illinois

counter firm

those

participating

National

...

Bank

and

Securities

firm to

contemplate

good reputation.

•

economic life.

tions and the like flows into

-and makes it
1-

vital to

18)

less

ever

human

today

the

Brothers
whom

and

Allen

associated

are

•

ever more
an

asset to

remuneration.

that

Co.

If it

were

offered are $12,550,000 of 6% first mortgage bonds
due

it almost

1980

5>/2%

(Canadian);

$7,450,000

(United States); $20,000,000
5.34% subordinated debentures
1985 (Canadian); and 800,000
of

priced

would find

and

bonds
accrued

subordinated

The

the

and

tures

This is

corporations.

of'the

one

amount

common

many

The

stock.

per

Quebec Natural

organized

'mmmm wmmm.I

in¬

four

and

units

are

unit (United

City E. 6th Building

CLEVELAND 14

Teletype CV 443

Telephone PR 1-1571

the

Gas Corp.

Commission,

the

gas

\irginia Securities
i

*■

timated

population of

Proceeds

000.

securities will
the

■'

"tf

Securities
Local Industrial & Utility Stocks

Retail Distribution

STRADER and COMPANY, INC
LYNCHBURG, VIRGINIA
ID 39

5-2527

TWX LY 77

facili¬

The ter¬

from

1,600.-

over

the

sale

used to finance

properties for the distribution of
natural gas.
Until a supply of
natural gas is available the com¬
pany will continue manufactured
gas operations and will continue
to distribute manufactured gas.

Sinking
first
m

Wi & Co

the

Scott, Horner & Mason, Inc.
Lynchburg, Virginia
for

1960 and

INCORPORATED

it's

bonds provide for

payment on or before June 30,
semi-annually thereafter

North Carolina

West Virginia

provisions of the

fund

mortgage

Virginia

acquisition of these facilities
to prepare and
develop the

and

OVER-THE-COUNTER ISSUES

sinking fund equal to 2% of

the

SECURITIES

INVESTMENT

v*1

was

treal, the largest city in Canada,
and 35 municipalities with an es¬

Wisconsin Market Place

LoE

Municipal Bonds and Corporate

ritory to be served includes Mon¬

■

distribution

ties in Montreal, Quebec.

maximum

amount

bonds

For the sinking fund
will be redeemable at

Corporate Stocks and Bonds

outstanding.
225

EAST

MASON

MEMBERS

NEW

ST.,

YORK

N£
IDWEST

II M"

MILWAUKEE

STOCK

the

STOCK EXCHANGE

bonds

par

EXCHANGE

hmm. m mmmmm mz

.......

m /

mm m i; t wm

The

Unlisted Securities

and accrued interest.

not

CV 444

§2

for

to acquire principally
Quebec Hydro-Electric

facilities and other related

Exchange

are

States).

from

priced at $145.60

why it is socially important that those

•

Corporation

deben¬

stock

debentures

engaged in the investment business thrive.
1 mmmmmssmmmm mmm m m

Municipal and Corporation Securities

are

being offered in units, each unit
consisting of $100 principal

impossible to quickly retrieve the capital

Distributors

Trading Markets

stock.

mortgage

100%

terest.

exchanges and Cver-the-

common

first

The

they put at the disposal of governments; munici¬

reasons

Dealers

first mortgage bonds due

palities

Underwriters

due

problem. The beauty

Counter Markets, investors of all types
.

Exchange,
Carol R.

Ltd.

securities

The

capital needs of both- big and
alike can be 'thus served.:

not for the

admit

Cohen to limited partnership.

ad¬

will

Ltd.; and Osier, Hammond &

Nanton

the

small business
.

1957, and

May

company

Co.,

The Canadian offering
being made by Nesbitt, Thom¬
son
& Co., Ltd.; Wood, Gundy &

Savings thereby become

society and not

March 31,

the

Stone

Securities

Webster

1980

industry

effort and

of the New York Stock

Capitalization
as

National

Sherrerd.

possible for business to obtain the

workers at

share.

&
Stern,
30
Broad
Street, New York City, members

funds.

Member Midwest Stock

Corp.;
White, Weld & Co. and Butcher &

our

wherewithal with which to provide jobs, for ever

Herzfeld

payable in Canadian

are

The First Cleveland

United States
and Canada;
The offering in this
country is being made by a group:

With

banks? iristitu-

trade and

value of $1

of underwriters managed by Leh¬

■ -

Through the medium of stocks and

bonds, idle capital of individuals,
:f

are

Principal and interest of the de¬
bentures

Public offering of $48,000,000 of
of Quebec Natural Gas

and the Over-the-Gounter Market

par

Herzfeld, Stern Admits

ing fund net income.

securities

(April

"jhp ^aggeratipn
■

stock

smaller of $500,000 or 50% of sink¬

Market

Corporation-is being made

- •

*•

common

Trust

Quebec Natural Gas

.ve

man

v>doing business with has

& Co.; First of Michigan Corpora-

the over-the-

sure

544,986 shares of class B stock,

each of

tion;. Hornblower & Weeks.

thoroughly trust-

individual dealer you

$2,500,000; and

Company of Chicago; Dean Witter

worthy "and to have good judgment with respect
,--av-7 to investment values;' Just be

and

March 31, 1966 and annually
thereafter an amount equal to the

4% note

yield of 2.30%

Co.; Goldman, Sachs & Co.; Sal¬
Bros. & Hutzler; Blair &
Incorporated; Stone & Web¬
ster Securities Corporation; R. W.
Pressprich & Co.; Mercantile Trust
Company, St. Louis; Continental

be¬

fore

amount

805,014

company

into the fund

the

being reoffered

are

omon

over-the-"

for

the

net

values from both large and small stores in

other lines of

pay

sinking

carry a

which

Co.

entirely

indifferent treatment

Just a's*you get good or

-1 and

must

under

the

panies.
:

funds.

dollar

Among

dealers for. the account of their banks iand com¬

fund

funds

the underwriting are: Harris Trust
and Savings Bank; C. J. Devine

through over-the-counter dealers. Investment
officers, of these institutions, too, are continually
buying and selling government, municipal and
corporation bonds and stocks through "counter"

Canadian

The debentures

price of 99.50 for
the 3y2% coupon in 1982.

stock for their

cost

scale from

out

companies of the country
selling their own institution's

bid

combination

The, bonds
on

over

buying

asso¬

States

bonds

mortgage

city. ';v;y v'v

major insurance

when

tor

interest

quotation consciousness.
Officers and directors of the 14,000 banks and

the

awarded

3y4s, and 3.%s, representing

positions results from the fact that their market
pricing must be influenced definitely by intrinsic
corporate value factors. They must stress value
consciousness

Bank

was

submitted

group

100.056

the-counter dealers who take important inventory

National

managers,

with Halsey,

and The Phila¬

17 an issue of $29,500,000
City of Philadelphia, Pa., various
purpose bonds, due July 1,
1958
to
1982, inclusive.
y:.\: ./•;

into the mak¬
ing of the real value of a security in which he is
to assume a position, he must, as a
general rule,
have knowledge superior to that of the lay trader.
Therefore, an important; contribution of over-

•

York,

Co. Inc.

April

non-numerical elements whibh
go

New

Stuart &

he is taking inventory posi¬
prices cannot consistently be out of
line with real values. Particularly in regard to the

justed to give effect to completion
of the present financing, consisted
$20,000,000 first mortgage bonds;
$20,000,000
subordinated
deben¬
tures;
$2,100,000 first mortgage

the

United

Bank

His

tions.

and of the United States bonds in

first

payable

are

underwriting syndicate man¬
aged by The First National City

cognizant of the elements, listed above,

are

interest

and

Offered lo Investors

capital

For survival

scene.

Canadian

and

bonds

Philadelphia Bonds

Nation's Business Growth
nomic forces will in due time exhaust his

the

redeemed.

Principal

Indispensable to Investors and

than

rate

first

bonds may
prior to Jan. 1,
of refunding
bearing a lower

mortgage

redeemed

1970 for the purpose

them

with

debt

Municipal Bonds

The

(1808)

The following statistical tabulations cover

Indications of Current

latest week

Business Activity

week

IRON

Indicated

STEEL

AND

INSTITUTE:

Week

operations (percent of capacity)
Equivalent to—
Steel Ingots and castings (net tons)
steel

oil

Crude
42

BUILDING

2,466,000

fuel oil

Residual fuel oil

8,076,000

26,007,000

26,667,000

25,579,000

2,431,000

2.342,000

12,634,000

2,170,000
12,296,000

13,328,000

12,174,000

8,248,000

♦8,651,000

8,578,000

7,559,000

203,489,000

205,782,000

20,168,000

20,711,000

CIVIL

CONSTRUCTION

ENGINEERING

Total

Cther

60,808,000

624,122

Social

685,378

644,115

Bituminous

Farm

S. BUREAU OF MINES):
and lignite (tons)-

coal

anthracite
STORE

output

Electric

153,933,000

237,437,000

153,711,000

141,886,000

124,888,000

149,950,000

109,657,000

84,876,000

25,050,000

87,487.000

44.054,000

Apr.

8.350,000

387.000

#'•$.700,000

"10,570,000

Apr.

(tons)

386,000

buildings___^_

Public

428,000

—

Apr.

112

113

Other

(in 000

kwh.)

Apr. 12

(COMMERCIAL AND

INDUSTRIAL)

—

DUN

11,693,000

11,695,000

11/650,000

Sewers

BRADSTREET, INC

231

308

Apr. 11

and

265^^

,/•;

300

913

::t 19

304

301 *

service

buildings

195

institutional

194

215

„

a;;-;

J
t

240

205

104

__________

811

•

345

•

,-j

i.
„

._.

water

systems

25.1

301

100
240

42
_

>-33
.

Military facilities
Highways

10,918,000

37
109

373:

.-12

and

JL8 •..

13
_____

nonresidential

25
'

269

_________

buildings

and

Y-

371

/ 115

—

—'

—

Administrative

104

105

419;

construction

Hospital

100

telegraph
utilities

Educational

462,000

29.

Nonresidential buildings
Industrial

8,502,000

'v;,., 35

Residential

,34

private

172^

public

other

160

■v.-

,*36

—

recreational

and

195

191

—____—___________

construction

Other
All

INDEX—FEDERAL RESERVE

SALES

257

122

131

Telephone and

376,133,900

INSTITUTE:

ELECTRIC

FAILURES

$412,284,000
174,847,000

$529,844,000

127,546,000

Apr. 11

SYSTEM—1947-49 AVERAGE
EDISON

$281,484,000

117,714,000
226,762,000

(U.

Pennsylvania
-DEPARTMENT

$344,476,000

118

garages

Miscellaneous

650,191

Apr. 11

OUTPUT

_j_L

warehouses

and

Educational

672,386

655

226

■*' 240

Religious

32,651,000

642,210

y/*Y 30

270

249

83,331,000

Apr. 11

Federal
'COAL

705

269

nonresidential

36,383,000

694,922

~86

'36

709

2,260

restaurants

75,855,000

Apr. 11

and municipal

State

.1,000

buildings and

37,098,000

644,092

-Apr. 11

810

Railroad

construction

1,116

890

;

Public utilities

construction

926

alterations

Stores,

ENGINEERING

construction

Private
Public

2,110

NEWS-RECORD:
-

units__.

Hospital and institutional

—

$2,910

1,013

(non-farm)_

;

37,594,000

freight loaded (number of cars)—
—.—Apr.
freight received from connections (no. of cars)—Apr.

Revenue

dwelling

$3,071

$3,172
2,259

Commercial

17,644,000

Ago

millions):

building

75,295,000

Apr.

Year

Month

Nonhousekeeping

197,322,000

19,729,000

(in

construction

Office

203,310,000

DEPT.

Nonresidential buildings
Industrial

ASSOCIATION OF AMERICAN RAILROADS:
Revenue

March

Additions and

7,517,000

1,880,000

Apr.

;

8,0)9,000

25,683,000

Apr.

(bbls.) at—

New

7,171,100

(!7,856,000

(bbls.) at
Distillate fuel oil (bbls.) at

7.812,850

(bbls.)
Apr.
(bbls.)
Apr.
Stocks at refineries, bulk terminals, In transit, In pipe linesFinished and unfinished gasoline (bbls.) at
-Apr.
Kerosene

7,786,300

7,599,500

construction

Residential

output

Residual fuel oil output

CONSTRUCTION—U.

Total new
Private

gallons

Distillate

100.2

2.392,000

of that date:]

are as

Month

Ago

93.5

"2,310,000

52,297,000

Apr. 21

of quotations,

cases

either for th«

are

Latest

condensate

and

or,

LABOR—Month

output—dally average (bbls. of
each)
—.—____________—
.Apr.
Crude runs to stills—daily average (bbls,)—
—Apr.
Gasoline output (bbls.)
Apr.
Kerosene output (bbls.)
-Apr.
.

Ago

"90.3

589.7

r—Apr, 21

Thursday, April 18, 19

production and other figures for th«

Year

INSTITUTE:

PETROLEUM

AMERICAN

Month

that date,

...

Dates shown in first column

month available.

month ended

Latest

AMERICAN

Commercial and Financial Chronicle

225

93 V>

■r-ii,

42 '

-:.:■■■■

$16,947,232

$17,087,185

Y.;;

■

Water

-IRON AGE COMPOSITE PRICES;
Finisned

steel

(per lb.)

PRICES

(E.

$64.56

$64.68

$60.29

Apr.

$42.67

$44.17

$49.50

$54.83

Apr. 10
—-—
Apr. 10
——-—Apr. 10

31.575c

31.550c

33.525c

47.525c

30.100c

30.175c

30.950c

49.175c

QUOTATIONS):

!—

(St.

Zinc

Louis)

—

at—-

(delivered)

Apr.
Apr.
Apr.
Apr.
Apr.

at_

(East St. Louis)

at—

Aluminum

(primary pig. 99%) at
Straits tin (New York) at

All

16.000c

15.800c

14.000c

13.500c

25.000c

22.500c

98.875c

99.000c

102.250c

New

15.800c

10
10
10
10

101.375c

VALUATION

INC.—215

90.19*

96,69

96.85

101.47

Apr. 16

99.52

; 99.20

_____

96.69

96.85

96.54

Central

101.47

99.52

101.31
Y

Total

108.70

New

AND

PAYROLLS—U.

89.92

89.78

101.14

95.16

95.32

95.47

104.66

97.00

97.16

96.69

106.56

07.94

97.64

97.62

106.04

3.32

3.25

3.28

3/10

/,;• 3.96

3.95

3.97

3.41

Employment Indexes

3.66

3.67

3.24

3.78

3.80

3.30

All manufacturing
Payroll Indexes (1947-49

3.95

3.97

3.41

MOODY'S BOND
U. S.

AVERAGES:

DAILY

YIELD

Government

•

Apr. 16

Average corporate

3.66

* ,-Y;..,".

Apr. 16

3.78

Apr. 16

3.96

Apr. 16

4.44

Ai)rApr. lb
APr- 10

4.06

4.05

4.04

Public

3.93

3.96

Industrials

-—-...Apr. 16

406,4

MOODY'S

Group

■

COMMODITY INDEX
'•

•\

NATIONAL PAPERBOARD

■■

"O" »%"***

Apr.
Apr.
Apr.
Apr.

activity
at end of period

Unfilled orders (tons)

Nondurable

/, £

3/88

; ■

.407.9

YYJ;'

..3Y-

W 'r y-.'1*'

3.68

3.90

I'V'V

AVERAGE

360,476

275,692

302,893

274,516

280.314

276,703

490,041

408,271

478.942

647,160

ACCOUNT

FOR

BERS, EXCEPT ODD-LOT DEALERS AND
Transactions of
Total

Total

318,150

933,960

1,555,890

1.019,900

9)5,110

1,154,390

186,800

270,470

33,100

Other

260,070

252,750

265,680

395,240

345,088

391,441

437,800

Mar. 23

87,240

94,950

115,810

474,160

545,420

397,996

866,105

Mar. 23

561,400

640,370

513,806

965,735

sales

654,620

purchases

Short

99,630

Other

Mar. 23

sales

1,504,108

1,702,521

1,763,510

2,879,240

Mar. 23

sales

300,960

289,050

369,340

446,400

Mar. 23

Total sales

1,540,410

1,599,180

1,564,536

2,788,615

Mar. 23

1,841,370

1,888,230

1,933,876

3,235,015

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT

DEALERS

AND

SPECIALISTS

Customers'

short

Customers'

Number

sales

Other

$46,511,275

$51,821,805

$86,427,561

807,074

6,428

10,757

9,225

8,383

795,590

803,785

797,849

1,318,369

$36,407,533

$37,037,054

$38,759,855

$67,600,841

207,030

203,880

185,560

$590,900,000

(10)

—

THE

_____

UNITED

ON THE

industries

labor

Total

—

DEPT.

transfer

PRICES

and

?ZV

30.6

29.2

19.6

FARMERS

—

farm

DEPT.

INDEX

AGRICUL¬

Feb.

296/470

363,550

418,670

447,560

565,450

Food

412,400

494,730

8,390.760

8,390,410

8,534.990

8.803,160

8,885,140

569,630-

14,546.840

15,116,470

117.2

♦117.0

116.9

113.4

Apr'

andfoodsIIIIIZIIIIIlApr!

90.2

♦89.2

88.7

88.0

104.7

♦104.0

103.7

100.8

86.6

Apr

84.2

82.2

76.5

125.3

♦125.4

125.4

121.3

and

hay

cent

pound.

256

;

Western
,

Zinc
•

sold

•

266

Dairy

animals

•

212

239} 1

175"

ESTATE

AREAS

on new annual capacfty of 133.459.150 tons as

orders

not

reported since introduction of
from East St. Louis exceeds

BOARD—Month

HOME

—

Jan.

(000's

and loan associations
Insurance companies
and

trust

257

188

'
<

226

;

BANK

omitted):

1
<

$658,837

companies

$659,895

133,612

137,622

365.589

352,771
-

$664,760),,

147,859

banks

lending

institutions-

;

435,439

148,461

130,761

-303,865

savings

Individuals
Miscellaneous

220

215

155

262

NON-FARMLOAN

Savings
Bank

254

157

FINANCING
U.

452' :
*

269
j

26T

eggs

'•

237

249

—

;

*
-

*57

266

products

Meat

173

'■ 220-

162

262

227 *'

Y264r i

•

* 236

-453"

/ 234

227 i

•'

•/

187

260

Livestock

233

249

235

crops

239

s;131

—

grains

Mutual

832,000_barrels of foreign crude runs. §Based
1957, as against Jan. 1, 1956 basis of 128,363,090 tons. +Nuinber

*>ne-hali

233
225

fresh

255

grains

233

*234 * "

products
vegetables,

tt„

••

409,810

-i

301.6
~

15:

;

REAL

lilncludes

18.2.

"318.8

tPrime

28.5

—

Poultry and

;

49.4' *

*19.3

320.0

income

153

5.7
73 '

7.4.

dividends___i_

wool

products

Investment Plan.

•:

6,0

*5132

Cotton

Processed foods

Monthly

6.7

51.2

payments-——

TURE—1910-1911—100—As

Tobacco

Apr,

iigure.

36.8
■

■

7.5

income

RECEIVED

NUMBER

Oil-bearing

—Mar!

commodities

29.5- n

•38.4

_____

rental Income

nonagricultural

185,560

Commodity Group—

Revised

•31.3

57.9

In-

income

Personal Interest

203,880

8,125,180

60.9*-S '

31.2

special

for

219.0

94.8

38.6

contribution

employees'

$3,167

—

*232.9

221

Mar. 23

other then farm

"$3,340
y.

61. 4

industries

STOCK

sales

commodities

3,86

101.8

Government

207,030 /

AND

Total sales

All

2.72

233.0

Farm

3.10
4.44

Short sales

All

4.36

$3,352

______

total
industries—

producing

Distributing

5.02

4.53

COMMERCE)—Month

Wage and salary receipts,

Feed,
.Mar. 23

JTHOLESALE PRICES, NEW SERIES
LABOR — (1947-49= 100);

3.68

4.52

STATES

ROUND-LOT STOCK TRANSACTIONS
FOR ACCOUNT OF MEMBERS
(SHARES):
Total round-lot sales—
•
•
Other

4.27

4.33

(24)—

4.82

4 .Oti

<fe Tel.)

6.55

4:85

2.99

Tel.

_______

INCOME

Service

$522,800,000

Marcn:

4.16

Amer.

•

6.47

Commercial

dealers—
SALES

117,100,000*

296.470

Mar. 23

TOTAL ROUND-LOT STOCK

176,300 000

1,326,752

802,018

Mar. 23

Round-lot purchases by
Number of shares

76,900,000'

—_.—

Commodity

All

sales

EXCHANGE

1,598,596

814,542

$43,334,294 1

1,055,443

Mar. 23

sales

94.900,000

1,003,696

by dealers—

of shares—Total

YIELD

STOCKS—Month

Proprietors and

sales

54,400,000

(125)

(199)

Other

969,320

Mar. 23

1"Mar.

Short

AVERAGE

January (In billions):
personal income

Total

other sales

Round-lot

10,200,000

38.100,000

Mar. 23

Dollar value

59,300,000

8,900,000

122,100,000

:____

(DEPARTMENT
of
Total

63,700,000

10,900.000

(15*

PERSONAL

STOCK

sales

66,500.000

—_

61,500,000

(not incl.

Insurance

Less

EXCHANGE — SECURITIES EXCHANGE COMMISSION:
Odd-lot sales by dealers (customers' purchases)—t
Number of shares
-—Mar. 23
Dollar value
-Mar. 23
Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales

$204,900,000

LIFE

98,000 000

COMMON

Banks

Total sales

$209,000,000

WEIGHTED

Average

„

INSTITUTE

—

dividends

Utilities

floor—

Total round-lot transactions for account of members—
Total

100

366,620

Mar. 23

sales

7,048,000

$236,900,000

PAYMENTS

values

Industrials

28,620

232,580

Mar. 23

the

35,200

217,550

Mar. 23

off

27,500

232,570

purchases

9,776,000

"6,986,900

Railroads (25)

396,990

207,600

16,824,000

*9,948,000

6,986,000

payments

MOODY'S

1,874,040

Mar. 23

Total sales

Short

"16,934,000

9,922,000

Total

1,827,630

Mar. 23

sales

Other transactions initiated
Total

220,430

836,210

Mar. 23

sales

Other

16,908,000

$595,900,000

Annuity

the floor—

purchases

Short

1,118,110

158,900

833,680

Mar. 23
on

1,040,610

186,220

Mar. 23

Total sales

157.7

___—

Matured endowments

108.45

Mar. 23

Other transactions initiated

106.8

*164.8

■

manufac¬

benefits

Policy
972,220

"106.1

164.8

INSURANCE—Month of January:

Surrender

Mar. 23

sales

;

■if:

105.8

Average=100)—All

goods

POLICYHOLDERS

SPECIALISTS:
registered—

sales

Other

INSURANCE—BENEFIT

Death

MEM¬

specialists in stocks in which
purchases

Short

110.77

5,520,000

Avge.—100)—

goods

Nondurable

380,425

283,101

110.87

7,692,000

"5,413,000

•v ■

6
6

110.85

13,212,000

♦7,713,000

manufacturing

Durable

3.39

6
6

Apr. 12

"13,126,000

5,412,000

Disability payments

100

TRANSACTIONS

EOUND-LOT

(1947-49

number of employees in
turing Industries-

All

)IL, PAINT AND DRUG REPORTER PRICE INDEX—
1949

13,091.000

_______

Estimated

423.0

412.4

89,172,555

DEPT.

-—

goods

manufacturing

LIFE

(tons)

Percentage

3.88

4.43

ASSOCIATION:

Orders received (tons)
Production

4.42

SERIES—Month

(production workers >_.

manufacturing
Durable goods

3.36

Group

Utilities

LABOR—REVISED

All

3.47

3.64

Baa

Railroad

•

Apr. 16

348,610,194:,

February:

Apr. 16

Bonds

$437,782,749 r

50,783,539
365,210,857

7.679,000

EMPLOYMENT

89.64

•

$415,994,396

18,495,762
66,499,347

56,474,685
—

Apr. 16
j

20,888,474
-

375,932,317

City

Apr. 16
,Apr. 1

16,699,709
13,405,693

York

Apr. 16

—

44,015,042

•

90,055,712

$432,407,002

States

City

New

Public

Group

27,236,207

22,249,456

Railroad

Industrials

•78.464,404

90.388,169

15,161,781'

York

67,022,799

72,326,312

United

Outside

39,121,583

79,268,506

92.41

105.69

116,267,63ft

82,213,541

96,048,886

_____

105.69

90.69
96.54

:
,

$15,915,875

83,355,413

Central

West

46,549,416

________

Central

South

y/Y-::'

__'

Atlantic

East

107.62

Apr. 16

Group
Utilities Group

DUN

—

■

CITIES—Month

Pacific
91.06

Apr. 16

—

PERMIT

Atlantic

South

angianu

Middle

Mountain

Apr. 16

—

Average corporate

development

public

BRADSTREET,
of February:

16.000c

Apr. 16

S. Government Bonds

other

•:

enterprises

Conservation and

MOODY'S BOND PRICES DAILY AVERAGES:
U.

service

BUILDING

Lead

Public

5.179c

Apr.

Electrolytic copper—
Domestic refinery at
Export refinery at_
Lead (New York) attZinc

5.670c

Apr.

Pig iron (per gross ton)
steel (per gross ton)_

Scrap
•METAL

5.670c

•

270,588

274,651.

376,440

368,716

405.622

$1,942,280

SI.950,871

$2,059,032

116,755

delivered basis at centers where freight

Number 5630

Volume 185

The Commercial and Financial Chronicle

...

(1869)

or-funds

sources

$100 Million World Bank Bonds Marketed

able

for

Bank

International

Reconstruction

and

reasonable

issue
$100,000,000 International Bank
for Reconstruction and Developoffering of

new

(World Bank) 4^4% 21-year

ment

bonds

1957, due May 1, 1978,
made April 17 by a nation-

was

wide

underwriting

163

group

'nvestment firms and banks

man-

aged jointly by The First Boston
Corp. and Morgan Stanley & Co.

foreign

private

mote

guarantees

(b) to

investment
participa-

and

case

bonds in January

of World Bank

sale

for

bonds

been

have

arrangements

1957,
made

investors.

tional

be:at

will

Such sales

public

the

Birkenmayer & Co., Denver
Building. Mr. Tweeddale in
the past was an officer of Honnold
and

Company, Inc.

Colo.—John

tive

Syl¬

Seventeenth Street.

out of its

purposes

re¬

the

members

addition

firm

served

two

Johnson

of the staff of the

1953.

investment firm.
lace

They are Wal¬
former member of

Cooper,

the

Missouri

Co.,

524

a
partner in the law
Guffey and Cooper, and
as
state
legislator from

the

Missouri

State

Legislature,
and William H. Griesedieck, for¬
merly director of public relations

from St.

degree

upon

and

Directors of the

Chamber

Blair Branch
corporated
office

■

the

between

bank

the

Burrows.

•

and

providing for de-..1
livery in instalments on one or
more
quarterly dates from Aug.
1,1957 through Feb. 1, 1960;:A-

purchasers

commitment
will be

fee

ThelPhlo Oil Company

~
/

♦

•

'/ '

•

year

paid by the bank to pur¬
under

chasers

delivery

delayed

•

contracts; payments will cover the
period from May 1, 1957 to . date
of

delivery, and will be made to

purchasers
The

delivery.

bonds will

new

that

after

redeemable at

if redeemed

before April 30,

1969, down
redemption is after

100%

April 30, 1975.
Beginning in

1967,

will be in

fund

of the

the election

interest

accrued

they will

date

prices ranging from 101%

bank at
and

not be re¬

1, 1967. On

deemable before May
and

\.,

retire

par

sinking

which will

effect

$4,000,000

the

; l

bonds in each of the years 1967 to
and including 1971;
1972

and $5,000,000

bonds in each of the years

of the

The

1977.

including

sinking fund is calculated to retire
50% of the issue prior to maturity. >
The subscribed capital of the

;
"

$9,250,000,000
of which 20%
has been paid in
dollars and other currencies. The
bank is in excess of

subject to call

balance

but

bank

only

by the

when required to

obligations of the bank aris¬

meet

ing out of its borrowings or guar¬
antees.

call

Payments

such

any

be made, at the option
particular member, either

may

the

gold, in dollars, or in the cur¬
required to discharge the
obligations of the bank for which
the
call
is
made.
The United
in

company of

rency

States

has

Government

ject to call.
entitled

Our greater

The United States is
cast
approximately

funded

tomers

debt/giving effect to this
will consist of $851,-

Net Income

records in production, trans¬

new

product sales

lent

continued

and

cus¬

public.
1956

1955

;

'•

Net Income per

currencies.

in other

payable

with employees, shareholders,

FINANCIAL

278,000 payable in United States
dollars and $201,193,912 equiva¬

progress

and the

financing,

refined

sharing of this

outstanding

total

abroad

and

portation,

ent members.

bank's

effort in 1956 brought, stepped-up exploration

home and

30% of the total votes of all pres¬
The

people...a record of progress

total

subscription , of $3,175,000,000 of
which $2,540,000,000 remains sub¬

•

$41,216,000

•

$41,255,000
$3.14

$3.14

•*•••>

•

••••••

•

$1.60

Capital Expenditures

•••«••

•

$52,440,000

$39,049,000

Exploration Expense

$24,544,000

$21,982,000

From its establishment in

Dividends per

June,

1946 to Feb. 28,

1957 the bank had
entered into loan commitments in

principal amount
equivalent to $3,052,766,464 to fi¬
nance programs or projects in 44

•

OPERATING
11!-

Net Crude Oil and Natural Gas

The loan commitments

Produced

effective and held by the bank as

—

Barrels per Day

Liquids
•

•

V-

Natural Gas Produced and Sold
—-Thousand Cubic Feet per Day

Crude Oil
—

Transported

Million

•

232,284

•

the

reserves

bank

as
—

1957 were $261,040,291

•

been

The

mental

reserve

loans and
same

allocated

net

income

against losses

guarantees.

For

had

During the

accumulated

reserve

provided

the bank's Articles of

Major

purposes

copy

THE

the

for

—

our

Barrels per Day
—

1,435

1,225

42,421

•

41,112

40,817

•

Barrels per Day

complete 1956 Annual Report, write the Secretary, ..."

are;

OHIO

;

OIL COMPANY

Findlay, Ohio

■

;

•

Agreement.

of the bank

23,150

period the equivalent of $87,-

854,663
special

Barrel-Miles

Refined Products Sold

supple¬

25,837

Transported

Crude Oil Refined

equivalent. From June 25, 1946 to
Feb. 28, 1957 the bank's net in¬
come amounted to the equivalent
$173,185,628.

Million

255,513

Barrel-Miles

Refined Products

Total

105,111

31, 1957 total $10,600,000.
of Feb. 28,

.•••„;•'*•'

108,355

•
''

of. Feb. 28, 1957 totaled $2,342,028,940 of which the undisbursed
balance was $652,708,808.
Addi¬
tional loan commitments to March

has

$1.55

aggregate

countries.

Producers

•

Transporters

Refiners

•

under the management of Walter

was

and deliveries will be made under

contracts

: *

has opened a branch
South State Street

—
,

Com¬

225

price

offering

DOVER, Del.—Blair & Co. In¬

graduation

economics

Brewery

Louis University with a

State

merce,

y.ly

ing firm in 1949

County from 1949 through
addition/he is a member

Board

„v

—

own

with the National Labor Relations

Board,

Mr. Griesedieck joined the brew¬

vester has become associated with

Podesta

announced
new

Co.;,

V * (Special to The Financial Chronicle)

DENVER,

LOUIS, Mo.—The partners
Dempsey-Tegeler and Company,
10th and Locust Streets, members
of the New York Stock Exchange,

for the Griesedieck Bros.

Joins Cruttenden, Podesta

Cruttenden,

delivery to certain institu-.

*yed

associated

Club

and (c) to make loans for produc-

de-

for

Colo.—-James

with

pro-

anddIceTuVl Jntere?t^ tions( ln ^ and other investin the
<of
offering ments made by private-investors,

98%
.

of standards of living,

DENVER,

is known in St. Louis for his work

ST.

(Special to The Financial Chronicle)

Tweeddale has become

Cooper, graduate of the
University of Virginia Law School,

Dempsey-Tegeler

Birkenmayer & Co.

"public relations

1955.

Mr.

With

(a) to assist in the reconstruction
and development of its member
countries by facilitating the investment of capital for productive
purposes, thereby promoting the
long-range
growth
of
international trade and the improvement

haifted SifefctdFOf
in

James Tweeddale With

Morgan Stanley Group.

terms.

Cooper, Griesedieck'

Development

21-year 4J/4% bonds offered for public sale by First Boston-

Public

borrowed by it
capital is not avail¬

when private

Marketers of Marathon Petroleum Products

The Commercial artd Financial Chronicle...

(1870)

Thursday* April 18, 19*5

ADDITIONS

* INDICATES

Now in

Securities

★ Acme Tool & Engineering Corp.
April 4 (letter of notification) 100,000 shares of common
stock
(par 10 cents). Price—$1 per share. Proceeds—
For
leasehold
improvements; purchase of equipment,
inventory material, etc.; and for additional working
capital. Office — 4142 Howard Ave., Kensington, Md.
Underwriter—Williams, Widmayer & Co., Washington,
c.

Inc.
(letter of notification)

$300,000 of 6Vz% con¬
vertible debentures due 1972 (convertible into common
stock at the rate of $1.50 per share).
Price—At face
amount (in units of $100 and multiples thereof).
Pro¬
ceeds—For the purchase of equipment and hangar space
and working capital.
Office — 302 Texas Bank Bidg.,
20

Underwriter—Creson, Sledge & Co., Dailas,

Dallas, Tex.
Tex.
"

Agricultural Equipment Corp.
March 1 (letter of notification) 500,000

shares of com¬
Price—50 cents per share.
obligation, purchase tools and for
working capital.
Address—P. O. Box 322, La Junta,
Colo.
Underwriter—Mountain States Securities Corp.,
stock

mon

(par

cents).

reduce

Proceeds—To

Registration

of record April

•

Cincinnati

the basis of one new share for 514

Underwriter—None.

St., Pittsfield, Mass.

Denver, Colo.

★ Alabama Power Co. (5/9)
April 12 filed $14,500,000 first mortgage bonds due May

Gas

Underwriter—To be

gram.

Probable bidders: Halsey, Stuart & Co. Inc.;
Dillon, Union Securities & Co., and White, Weld
(jointly); Blyth & Co., Inc., and The First Boston
Corp. (jointly); Morgan Stanley & Co. and W. E. Hutton
& Co. (jointly); Merrill Lynch, Pierce, Fenner & Beane
and Lehman Brothers (jointly).
Bids—Scheduled to be
received up to 11 a.m. (EDT) on May 7 at Irving Trust
Co., One Wall St., New York, N. Y.
-

it Bonanza Oil & Mine Corp., Sutherlin, Ore.
11 (letter of notification) 71,710 shares of common

Feb.

stock

10 cents).
Price — 75 cents per share. Pro-*;
ceeds—To1 go to selling stockholder.- Underwriter—L. D.
(par

Friedman

Co., Inc., New York, N. Y.

it Brantley Helicopter Corp.

Clark Oil & Refining Corp'. /
March 22 (letter of notification) 5,000 shares of common
stock (par $1). Price — At market (estimated at about
$20 per share). Proceeds—To Emory T. Clark, President

•

/
April 2 (letter of notification) 21,818 shares of common
stock (par 50 cents). Price—$13.75 per share.
Proceeds
—For
working capital.
Office—24 Maplewood Ave.,
Philadelphia 44, Pa. Underwriter—Drexel & Co., Phila¬
delphia, Pa. No public offering expected.
•

(Province of)

British Columbia

of company.

Office—8530 W. National Ave., West Allis*
Underwriter—-Loewi & Co.; Inc., Milwaukee/ Wi£

Wis.

Colonial Aircraft

Corp., Sanford, Me.

March 29 filed 250,000 shares of common stock (par 100),
to be issued upon exercise of warrants to purchase the

(5/1)

following number of shares and held as follows; Glick
& Co., Inc., underwriters of original offering,
140,000
shares; and by three individuals 110,000 shares.
Price—

April 3 filed $45,000,000 of debenture issues, viz.: $25,000,000 of sinking fund debentures due 1987 of British
Columbia Power Commission and $20,000,000 of sinking

Shares to be offered at market. Warrants are exercisable

10 cents per warrant.
sellers of warrants.

N. Y.

writer—To

completion
for

serve

the corporation's proposed lumber re¬
operations.
Office — 2413 W. Harrison

Underwriter—None.

Dec.

Inc.

•

14 filed

400,000 shares of common stock (par one
Price—At market. Proceeds — For investment.

cent).

Underwriter—Fund

Corp., 523 Marquette Ave., Minne¬

apolis, Minn.
American Hardware Corp.. New Britain, Conn.
'
April 8 filed 118,000 shares of common stock (par $12.50)
to be offered in exchange for common stock and class B
stock of Kwikset

common

Locks, Inc., at the rate of

share of American Hardware for each two Kwikset
shares

mon

shares
stock.

for

and

55,500

150,000

The

offer

American

Hardware

Kwikset

conditioned

class

its

upon

one

com¬

Pipe & Construction Co.
(letter of notification) 9,731 shares of common
stock (par $1) to be offered to employees pursuant to
two Employee Stock Option Plans.
Price — $16.36 per
Proceeds—For additional
3428 Terminal

working capital.

Ad¬

Annex, Los Angeles 54,

Underwriter—None.

American

Provident

Eastman

Corp.
(par one
cent). Price—*$2 per share. Proceeds — For working
capital and general corporate purposes. Office—Dallas,

Underwriter—Peoples Securities Co., J. D. Grey,
Orleans, John S. Tanner, of Dallas, and C. L.
Edmonds, of Houston, three of the 22 directors, are
Chairman, Vice-Chairman and President, respectively.
New

Apache Oil Corp., Minneapolis, Minn.
March 25 filed
50,000 shares of common stock (par
$2.50). Price—$6 per share. Proceeds—For investment
in stock of APAF

Co., a subsidiary; to carry an inven¬
tory of leases for present and future drilling programs;
and for general corporate purposes.
Underwriter—APA,
Inc., another subsidiary, Minneapolis,

Minn.

it Arkansas Motor Freight Lines, Inc.
April 2 (letter of notification) 8,000 shares of
stock

(par $1)

only. Price—$15

per

tal.

Office—401

common

offered to officers and employees
share. Proceeds—For working capi¬

11th

St.,

Fort

Smith,

writer—None.

mon

March

Ark.—Under¬

Wilcox

Co.

filed

535,148 shares of capital stock (par $9)
being offered for subscription by stockholders of record
April 5, 1957, on the basis of one new share for each
10 shares
per

held; rights will expire

share.

finance

Proceeds

increased

—

For

April 22. Price—$35

capital expenditures and to

inventories

and

accounts

receivable.

Underwriter—Morgan Stanley & Co., New York.
Berkshire Gas Co.

March 8 (letter of
notification) 18,700 shares of common
stock (par $10) being offered to common stockholders

Ltd., Toronto, Canada

named

■

—

subsidiaries.

Proceeds

14,000 shares

com¬

and

Inc.,

filed $1,000,000 of five-year

For

Carolina

283,676

Mines,

March

shares'

Kings Mountainr N* C. ///
stock, of which
be offered for subscription by

Inc.,
to

are

for

capital.

principal stockholder.

J *•

.•

17, N. Y.; and Shaw & Co., San Marino, Calif.

share for each

21/z shares held; rights to expire on May 8.

Price;—To be
supplied by amendment. Proceeds — To reduce 414%
notes by $1,000,000, to repay about $695,000 of bank loans
and for construction program.
Underwriter — White,
Weld & Co., New York.
&

American

South

Acceptance

Corp./

425,000 shares of common stock (par 10
Price—Expected to be $1 per share. Proceeds

working capital and other general corporate pur¬
Office—Jersey City," N;- J. Underwriter—Charles

it Central Maine Power Co.

($14,000,000 at March 31, 1957)

and for construc¬
Underwriter—To be determined by com¬

program.

petitive

bidding.

Probable

bidders:

Halsey, Stuart &
Co. Inc.; Blyth & Co., Inc. and Kidder, Peabody & Co./

(jointly)? The First Boston Corp. and Coffin & Burr,
Inc.
(jointly); Harriman, Ripley & Co. Inc.; Merrill
Lynch, Pierce, Fenner & Beane and White; Weld & Co.
(jointly); Salomon Bros. & Hutzler. Offering—Expected
in

May.

it Chapman Processing Corp.,
April

(letter of notification)

Hammond,

Ind.

7,600 shares of,.class A

stock and

1,900 shares of class B common stock
(the latter to be sold to partners of Chapman Manage¬
ment Co.) Price—At par ($10 per share). Proceeds—For

land, equipment and working capital. Office—1475 Sum¬
mer St.,
Hammond, Ind. Underwriter—None.
Chinook

Plywood, Inc., Rainier, Ore.
Sept. 4 filed 200 shares of common capital stock. Price—
At par ($3,000 per share). Proceeds—For acquisition of
a
plant site, construction of a mill building, purchase
and

installation

operating capital.
Inc.

Laurel,

11,400 shares of capital
$125,000 of 20-year 5% subordinate
1957 to be offered in denom¬
to present stockholders,- officers and

and

inations

of- $100

employees of the corporation at rate qf 3/10ths of a share
of

and

struction

amount.

•

share;

per

Proceeds—For

con¬

Underwriter—

Fla.

Shamrock,

purposes

None.

$300 debentures

and

Price-—Of stock, $15

100 shares held.

debentures at face

held

each

for

stock

new

for each

it Cooper River Industrial Park
..
.
April 8 (letter of notification) $168,000 of 6% cumulative

lien

general
their

situated

bonds

associates.

to be offered to stockholders and
Price—60.357%, or an, aggregate of

Proceeds-^For purchase of industrial lands
for development and sale

the Cooper River

Office—152

industry.

Market

St.,

(P.

Charleston, S. C.—Underwriter—None.

Box

141)

Life & Casualty Co.

★ Cosmopolitan

■

be offered to holders of policies of
life insurance issued bv Cosmopolitan Life Insurance Co.
legal

2803

machinery and equipment; and-a*

Underwriter
t

—

Industry Developer*.
--

per

share- Proceeds—To qualify and

reserve

Amos

Ben

Peters

mon

President.

stock

(par

one

For

—

prospecting

cent).

diamond

expenses,

it De Vegh

Price — 50 cents per share.
drilling on company's lands,

working capital and other corpor¬
St., Irvington, N. J.
Co., Maplewood, N. J.

Office--83 Campfield

purposes.

Underwriter—Roth &

Investing Co., Inc.,. New York

April 16 filed

(by amendment) 400,000 additional shares

capital stock

(par $1).

For investment.

★ Drug

(letter of notification) 560,000 shares of com-'

Proceeds

Cougar Mine Development Corp.-

March

activate

life insurance company.. OfficeAve;, Phoenix, Ariz.—Underwriter-

stock

Seventh

None.
.

$1)

(par

Price—$2
a

ate

•

Corp.,

Rosin

(letter of notification)

(par $5)

stock

April 17 filed $18,800,000 of first and general mortgage
bonds, series W, due 1987. Proceeds — To repay bank
tion

April 8 (letter of notification) 150,000 shares of common

Plohn &-Co., New York.

loans

stock

Turpentine

//;//-/(/■//-

$101,399.76.

(4/25-26)
March 22 filed

cents).

Miss.

debentures dated March 31,

Seattle,Wash. (4 24)
March 29 filed 226,820 shares of common stock (par $1)
to be offered for subscription by common stockholders

Central

March

Cascade Natural Gas Corp.,

of record April 24 on the basis of one new

for working capital.
Under¬
Co.; 405 Lexington Ave., New

and

Shaw &

Allen

—

Continental

Underwriter
None.
C.', Canada, is Presi¬

' ;t:

equipment;

new

York

held; and the remainder will be offered to
the public.
Price—At par ($1 per share).
Proceeds—
To repay loans, for exploration and development work,
MacCulloch of Vancouver-

III.

filed 558,100

writers

construction and working

International Corp.r Chicago,

shares of class A common stock
(par $1). Price—$5 per share. Proceeds — To discharge
current notes payable, including bank lodhs,; and long
term debt in "the total.sum of approximately $1,030,000;

stockholders at the rate of five additional shares for each

poses.

Office—San Francisco, Calif.

investment.

Conticca

March 29 filed 679,469 shares of common

—For

Co.

series

bonds,

four

Oil

★ Commonwealth Stock Fund, Inc. .
April 11 filed (by amendment) 200,000 additional shares
of common stock (par $1). Price^-At market. Proceeds—-

Underwriter—None.

Publications,

Creek

Beach, -Calif. Underwriter—Samuel B. Franklin
Co., Los Angeles, Calif.

Topeka, Kan.
4% first mortgage
six, and $3,000,000 of 10-year 5% first
mortgage bonds, series seven. Price—At par. Proceeds—
To redeem outstanding bonds and for improvement of
present facilities and other corporate purposes. - Under¬
writer—None.
r///-'Y.'Tf ■
Capper

and

dondo

machinery, equipment, inventories and
working capital. Office — Washington and Cherry Sts.,

March 25

Brothers

Lehman

notification) 75,000 shares of common
stock. Price—At par ($1 per share). Proceeds—For oil
drilling expenses.
Office—1848 South Elena Ave., Re-

For

—

Securities & Co., both of N. Y.

Dillon, Union

March 14 (letter of

$10) to be offered for subscription by
employees.
Price—$12.50 per share.

(par

Underwriters

later.

Batteries, Inc.
(letter of notification)

stock

common

Babcock

Mines,

equipment, exploration, drilling, working
other general corporate purposes. Under¬

stockholders

Tex.
of

Shore

and

March

Investors

Feb. 15 filed 50,000,000 shares of common stock

System, Inc*

March 8 filed 1,675,415 shares of common

capital

•
!

Columbia Gas

Proceeds—From sale of shares
Underwriter—None.

dent and

March 21

Calif.

—

ceeds— For

common

acceptance

of the issued and outstanding Kwikset
and class B common shares. Underwriter—None.

dress—P. O. Box

supplied by amendment. Proceeds

July 26 filed 600,000 shares of capital stock, of which
500,000 shares are to be offered publicly, and 100,000
shares to promoters. Price—At par ($1 per share). Pro¬

A; S.

★ American

share.

stock (no par)
being offered for subscription by common stockholders
of record April 3, 1957, on the basis of one new share
for each 13 shares held (with an oversubscription privir
lege); rights to expire on April 22.
Price—$15.75 per
share.
Proceeds
For
financing construction work

Burma

common

not less than 85%
common

—

Conshohocken, Pa.

it All Mines, Inc.
April 1 (letter of notification) 300,000 shares of common
stock. Price—At par ($1 per share). Proceeds—For min¬
ing expenses. Office—Cheny Bidg., 139 N. Virginia St.,
Reno, Nev. Underwriter—None.
Allied Resources Fund,

Price

1982

due

debentures

Comanche

initial

Avenue, Olympia, Wash.

fund

C & D

shares of common
stock. Price—At par ($50 per share). Proceeds—To pay
for
labor, lumber, machinery, etc., necessary for the

pro¬

competitive

& Co.

955

construction

determined

Eastman

To
repay bank loans and for capital expenditures. Under¬
writers-—Morgan Stanley & Co., Harris & Partners, Ltd.,
Inc. and Burns Bros. & Denton, Inc.

it Alaska Cedar Corp.
April 2 (letter of notification)

(5/7)

bidding.

it Blue Ridge Mutual Fund, Inc.
April 10 filed (by amendment) 500,000 additional shares
of common stock. Price—At market. Proceeds—For in¬

For construction program. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Eastman Dillon,
Union Securities & Co., Equitable Securities Corp. and
Drexel
& Co.
(jointly); Lehman Brothers; Harriman
Ripley & Co. Inc. and Goldman, Sachs & Co. (jointly);
Blyth & Co., Inc. and Kidder, Peabody & Co. (jointly);
Morgan Stanley & Co. Bids—Expected to be received
up to 11 a.m. (EDT) on May 9 at the office of Southern
Services, Inc., Room 1600, 250 Park Ave., New York 17,
—

ISSUE

REVISED

Proceeds—To repay bank loans and for

Proceeds

ITEMS

& Electric Co.

Pacific Great Eastern Ry.

1, 1987.

April 4 filed $25,000,000 of first mortgage bonds due 1987.

(with an oversubscription privilege); rights
to expire on April 29, 1957.
Price — $14.50 per share.
Proceeds—To retire an outstanding debt. Office—-20 Elm

shares held

vestment.

Addison Airport,
March

SINCE

Price—At market. Proceeds—

Fair-Community Drug Co., Inc.

(5/6-7)

April 15 filed 217,500 shares of common A stock (par $1),
of

which

160,000

are

be sold

for account

selling stockholders and 57,550 shares for company's ac¬
count. Price—$5 per

share. Proceeds—To redeem on May

31, 1957, the outstanding 6% cumulative participating
preferred- stock and for working capital.
Office—Ar¬
lington, Va. Underwriter—Auchincloss, Parker &. Redpath, Washington, D. C.

Number 5630

Volume 185

* El Paso Electric Co.

...

The Commercial and, Financial Chronicle

(5/7)

ANEW

April 16 filed 119,522 shares of common stock (par $5)
to be offered for subscription by common stockholders of
record

May 6, 1957

each 15 shares held

•"

v.-

program.1,

(Milton

ISSUE
'•'

■' /.•."

Blauner

CALENDAR
■

■.-*

(Monday)

May
Common

Inc.)

Co.,

(Winslow, Cohu & Stetson)

•

•'-<

Tex-Tube, Inc.

Common

$250,000

Preferred & Common

Chicago, Rock Island & Pacific Ry.
Equip. Trust Ctfs*

(Moroneyy Beissner

it El Paso Electric Co. (5/15)
April 16 filed $6,500,000 first mortgage bonds due May

j-»

(Schwabacher

:>>

April 23

Inc.; Merrill Lynch, Pierce, Fenner & Beane; Stone
& Webster Securities Corp.; Equitable Securities Corp.;

(Van

•

Kidder, Peabody & Co., Shields & Co. and White, Weld

Alstyne,

(jointly). Bids — To be received up to 11 a.m.
(EDT) on May 15 at 90 Broad St., New York, N. Y.

Kidde

Johnston,

and

200.000

(C.

Tow'oin

Untfcrberg,

-(Bids

200,000

Co.)

CST)

noon

by competitive bidding. Probable bidders: Stone
& Webster Securities Corp;; Merrill Lynch, Pierce, Fen-

•*'

& Beane; Eastman Dillon, Union Securities

ner

(Bids

EST)

a.m.

Equip. Trust Ctfs.

(

ApriI 24

Debentures'

$30,000,000

■

Business—Drive-in

writer—None.

yv;"'":yv

stockholders—underwritten

Artists Corp
'/v

Gas

Public

350,000

v<.

(Bids

Common

(Offering

time prior to Nov. 30, 1959, at $4.50
The price of the remaining 2,500,000 shades
each, of which 500,000 shares are to be jreserved for exercise of options to be granted to directors,
officers and employees, i Proceeds — For industrial and"
tional shares at any-

will

development

Mississippi

Underwriter—None.

(Bids

CST)

noon

(Blyth &

Co.,

May

Debentures

Underwriter—To he determined by :com.petitive bidding. Probable bidders*. Halsey," Stuart & Co.
Inc.; White, Weld & Co.; Merrill Lynch, Pierce, Fenner
./ft
Beane and Kidder, Peabody & Cq. (jointly); The First
'./Boston Corp.; Blyth & Co., Inc. and Lehman Brothers
.

Equip. Trust Ctfs*
to

$2,550,000

invited)

125,000

Community Public Service

(Bids

..Common

Ltd

(Steven Randall & Co., Inc.)

*/ •-/' /

$300,000

11:3.0

Preferred

$3,000,000

Debentures

:jl

$15,000,000

EDT)

a.m.

•

■

—.-Equip. Trust Ctf%

Wabash RR

Herold Radio & Electronics Corp

Bonds

EDT)

a.m.

National Fuel Gas Co
(Bids

(Tuesday)-

April 30

(Tuesday)

May 28

r__Class A common

Podesta & Co.)

Lake Lauzon Mines,

(Thursday)

(Monday)

April 29

■/v(Cruttenden,

Bonds

$20,000,000

Reading Co.

$30,000,000

Inc.)

Associated Truck Lines, Inc

for construc¬

.L-w.*
EDT)

a.m.

(Friday)

(Bids

Proceeds—To repay bank-loans and

$70,000,000

(Wednesday)

May 22

I
*

by Morgan
/

Bonds

invited)

Interstate Power Co

$9,000,000

Gas

Natural

Northern

(5/15)
April 17 filed • $15,000,000 of first mortgage bonds, due
tion program,

(Bids 11

April 26

South.

the

and

Telephone Co

Equip. Trust Ctfs.

(Bids

* Florida Power & Light Co.

1987.

New York

business

200,000

Illinois Central RR

share.

per

Common

(Shearson, Hammill & Co; and Underwood, Neuhaus & Co.)
-

(Tuesday)

Stanley & Co.)

Houston Oil Field Material Co., Inc
-

stockholders—to be underwritten
about $209,000,000

"A(Charles Plohn & Co.) 425,000 shares

—Bonds

EDT) $30,000,000

noon

International Business Machines Corp.____Commeil-

Corp.

1
.

;

(Monday)

of Colorado

May 21

(Thursday)

Bonds

....

about $8,000,000

:y;/

invited)

Service Co.

yyyyyy-:'.;

'
y

Central & South American Acceptance

to $8,000,000

Light

(Bids to be

May 20

and

shares of common stock

$6,000,000

Common

Offioe-^

it First Mississippi Corp., Jackson, Miss.</}/
April 10 filed 10,000,000 shares of common stock (par
$1), of which 2,500,000 shares are to be offered publicly
at $4 per share prior to Nov. 30, 1957, each
purchaser] of
one
share to receive an option to purchase two adjdi-

-Equip. Trust Ctfsfe

(Bids to be invited)

Washington

...Debentures

.—.Common

Arts, Inc

White,

$10,000,000 of debentures

April

Bonds
/

May 16 (Thursday)

..Debentures

Eberstadt & Co.)

Bonds'

$6,500,000

EDT)

a.m.

Northern Pacific Ry

'(The First Boston Corp.) $30,000,000

(F.

(Reilly, Hoffman & Sweeney, Inc.) $300,000

.Common

Lone Star Gas Co.
United

$2,000,000

(Bids to be invited) $15,000,000

Paul Hesse 3-D

Weld & Co.) 226,820 shares

Hills, N. J.

140 Old Short Hills Road, Short

;

restaurants.

(Offering

.Preferred
EDT)

a.m.

\;y/

Florida Power & Light Co

(Wednesday)

Cascade Natural Gas Corp.

^Festival Drive-Ins, Inc.
, -.
•' .
'
April 15 (letter of. notification) 10,000 shares of con(no par) and 50,000 shares of
common stock (par five cents) to be offered in,units of
I.one; preferred share: and five cdmmon shares. Price~|>20
per unit.
Proceeds — For capitalization of subsidiary,
Festival Realty Co., Inc. and working capital. Un<J£r-

30,000'shares

Co.)

(Wednesday)

(Bids

Common

(McDonnell

Kidder, Peabody & Co., White, Weld & Co., and Shields
&■ Co.-(jointly). ■ Bids — To be received up to 11 a.m.
(EDT) on May 15 at 90 Broad St., New York, N. Y. /

$2,700,000

Swartwout Co.

& Co.; 1

Co.—

El Paso Electric

.7"

Electric

Paso

(Bids

Northwestern Bell -Telephone Co

mined

Ca.)

Bond#

$25,000,000

EDT)

noon

May 15

..Debentures

Minneapolis & St.-Louis Ry.-:
*Bids

Peabody

Midwestern Instruments, Inc.———...Common

V- (no .par value);-'Proceeds^About/$2,000^000/ to be used
for cohsthictidn; program.
Underwriter—To be deter¬
1

Co.

Co.)

(Shields & Co.) $3,000,000

Noel

(Walter) & Co., Inc.—
"

•

f r
April 16 filed 20,000 shares of cumulative preferred ribck
(5/15)

* El Paso Electric Co.

Beane and Kidder,
255,813 shares

Fenner

New York State Electric & Gas Corp._

Common

Lemon

&. Co.

Common

(Offering to stockholders—to be underwritten by Merrill Lynch,

Hartfield Stores, Inc
•

$3,000,000

Florida Power Corp

(Tuesday)

Co.
-

(Bids to be invited)

Common

800,000' shares

Co.)

Pierce,

Probable bidders: Halsey, Stuart &

competitive bidding.

United States Leasing Corp..^

1, 1987.- Proceeds —? To repay bank loans and for construction program. Underwriter—To be determined by

& Co.) 50,000 preferred
50,000 common shares

and

(Tuesday)

May 14

"h'v.."

(Monday)

General Aniline & Film Corp
Common
(Bids 3:45 p.m. EDT) 426,988 A shares and 1,537,590 B share#'

$225,000

Shumway Uranium Mining Corp.

Dealer-Manager—Stone & Web-

New York..,,

ster Securities Corp.,

«...

Nyvatex Oil Corp.—_

Proceeds—To retire bank loans and for

by amendment.

} construction

:r' ■(,

April 22

on the basis of one new share for
(with an oversubscription privilege);

rights to expire on May 21, 1957. Price—To be supplied

(1871)

(Bids

$6,615,000

EDT)

noon

Bids—Expected to be received on May 15.

/(jointly).

Florida
March

Lang

Trust, Pompano Beach, Fla.

filed

(Amos Treat & Co.. Inc.)

850

certificates

beneficial interest in

Co.,

►

the Trust. Price—$1,000 per certificate. Proceeds—To
acquire by purchase, lease or otherwise, and to hold,
own, subdivide, lease, mortgage, exchange, bargain, sell
and convey lands and every character of real property.

British

Columbia

(Morgan

Stanley

Ford

& Machine Co.,

Gum

.Dec. 18 (letter of notification)
'

Inc.

Fruit

$250,000 of 6% first mort-

Underwriter—None.

Juices,

(Blyth

stock.

Price—At

Inc.
par

($1

Marion, Ind.
Angeles, Calif.

Office

per

share).

KLM

Proceeds

—-

Electric

Ave., N. W., Washington 25, D. C.

pany's Savings Plan for Salaried Employees, together
with 15,750 shares of common stock which may be ac¬
quired pursuant to the plan.

(Auchincloss.

Parker &

Inc.

(Bache

Co.)

$7,500,000

Debentures

Bonis

(Bids 11 a.m. EDT) #15.500,000

June 10

(Monday)

Consolidated

EDT)

a.m.

$25,000,000

(Offering to stockholders—Stone & Webster Securities
'■»
-.
will be dealer-manager) 119,522 shares

(Bids

(A. G.)
to

Corp.«

June 25

Kidder,

invited)

to be

(Wednesday)

(Bids

Bonds

noon

EDT)

$14,000,000

(Tuesday)

July 9
(Bids

31,

of Texas and

1975, to be offered for sale in the State#
Colorado in units of 50 shares of class A

Power Co.
(Bids

a.m.

EDT)

(Tuesday)

page

(Bids

invited)

$14,500,000

$3,585,000

Bonds

West Penn Power Co

October

Bond#

Equip. Trust Ctf#.

Baltimore & Ohio RR

Continued

Debentures
$30,000,000

invited)

(Bids to be invited) about $20,000,000

(Thursday)

May 9
Alabama

Bonds
$35,000,000

invited)

$4,200,000

Potomac Edison Co
„

Bonds

$20,000,000

Wisconsin Telephone Co

Equip. Trust Ctfs.
be

(Tuesday)

California Gas Co
(Bids

stockholders—underwritten by
$8,000,000

Debs.

$70,000,000

lnviced)

June 26

Southern

Peabody & Co.)

Missouri Pacific RR
(Bids

$2,017,300

Debentures

Collins Radio Co
(Offering to

(Tuesday)

(Bids to be invited)

(Wednesday)

May 8

$25,000,000

Debentures

stockholders—ho underwriting)
»

Debentures

EDT)

Puget Sound Power & Light Co

$4,650,000

& Bros. Inc
.

(Tuesday)

Southern Bell Telephone & Telegraph Co

Equip. Trust Ctfs>
invited)

negotiated) 225,976 shares

Gas

11:30 a.m.

June 18

Common

Seaboard Air Line RR

Natural

(Bids

Bonds

Cincinnati Gas & Electric Co
iBids

Common

(Offering to stockholders—may

Dec.

Debentures

Inc

July 30
Inc., Durango, Colo.

filed 5,000 shares of class A voting common
stock
(par $1), 295,000 shares of class B non-voting
common stock
(par $1), and $700,000 of 4% debenture#
due

System,

(Bids to be invited) $20,000,000

June 11

to increase the

Gold Mountain Lodge,

v""'

(Thursday)

Portland Gas & Coke Co

N. Y.

Aug.

Gas

..Common

217,500 shares

(Tuesday)

May

(Offering

number of stores; and
Office—41 Stukely St., Providence,
Underwriter—Bruns, Nordeman & Co., New York,

R; I.

Redpath;

National Telefilm Associates, Inc.i..

Spalding

working capital.

Columbia

::y\;yy y.
r

Drug Fair-Community Drug Co., Inc

—

for

)$123,520

underwriting

(Bids to be

(letter of notification) 240,000 shares of common
stock (par 30 cents) of which 86,610 shares are being
sold pursuant to outstanding warrants. Price—$1.25 per
"share. Proceeds
For additional discount department
operation;

June 6

(Monday)

May 6

Jan. 21

store

Bonds

(Bids to be invited) $8,125,000

Common

stockholders—no

El Paso Electric Co.i-.__

it General Refractories Co., Philadelphia, Pa.
April 10 filed $677,250 participating interests in the com¬

$190,000

First Bos¬

Shops of America,

to be invited) $25,000,000

Belt

Harbor
/

Bonds

Edison

(Bids

Indiana

(Wednesday)

Georgia Power Co

Corp. (jointly); Kuhn, Loeb & Co., Lehman Brothers
and Glore, Forgan & Co. (jointly). Bids—To be received
up to 3:45 p.m. (EDT) on May 13 at Room 654, 101 In¬

Gob

Boston

shs.

Bonds

Co., Inc..^

minority

Common

Debenture bonds

(Frazee, Olifiers & Co.)

(Offering

Bonds

1,000,000 shares

(Bids to be invited)

$10,000,000

Mid-State Commercial Corp

Western

$3,000,000

(Wis.)^

Virginia Electric & Power Co
Ctfs.

Common

invited)

about

invited)

Equip. Trust Ctf$,

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

June 5

—

(Tuesday)

Northern States Power Co.

and

$6,000,000

CDTt

noon

ton

Inc.;

Probable bidders: Blyth & Co., Inc., and The

diana

Ltd.,

$45,000,000

Inc.)

(Bids

Debentures

—

Partners

Royal Dutch Airlines

For

New York (5/13)
Jan. 14* filed 426,988 shares of common A stock (no par)
and 1,537,500 shares of common B stock (par $1).
Pro¬
ceeds—To the Attorney Geenral of the United States,
Underwriter—To be determined by competitive bidding
•

Denton,

Bros.

June 4

Alabama Great Southern RR

(Smith, Barney & Co. and The First Boston Corp.) 250,000

General Aniline & Film Corp.,

(Province of)

(Bids

—

Government Employees Corp
Debentures
(Johnston, Lemon & Co.) about $500,00Q
,

y/y.-.iv^

300,000 shares

Inc.)

(Wednesday)

Co.;- Harris

(Bids

„

1115 South Washington St.,
Underwriter—Sterling Securities CoM Los

working capital.

Co.,

Chicago, Milwaukee, St. Paul & Pacific RR.
Equip. Trust

May 1

Laclede Gas

(letter of notification) 300,000 shares of common

Dec. 3

Common

(Monday)

Burns

Price—100% of
principal amount. Proceeds—For machinery and working capital. Office—Hoag and Newton Sts., Akron, N. Y.
Business—Manufacturing chewing gum and self-service

'/machines.

Hogle & Co.) '73,199 shares

bonds due 1962 to 1967, inclusive.

gage

Common
A.

Electric

General

Portland

June 3

Inc.l.

"(Lee Higginson Corp. and J.

Underwriter—None.

;
1

$800,000

(Tuesday)

Bonds

Utah Power & Light Co
(Bids

Utah Power &
(Bids

invited)

$15,000,000

Common

Light Co.
to

invited)

400,000

The Commercial and Financial Chronicle

(1872)

Continued from page

7;,

tebenture.

remodeling of present main building,
i&e new construction and working capital.
Business
Operates year-round resort hotel. Underwriter
None.

•

of property,

;»iase

Underwriter—None.

St., Brooklyn, N. Y.

April 4 filed 200,000 shares of common stock (par $1).
j.^riee—$9 per share. Proceeds—To selling stockholders.
%'Jnderwriters—Van Alstyne, Noel & Co., New York; and
Johnston, Lemon & Co., Washington,

D. C.

■fc Hera Exploration Co.
(letter of notification) 330,000 shares of com>aon
stock.
Price—At par (10 cents per share).
Pro¬
ceeds
For mining expenses. ' Office — 115 Seventh
Avenue, Henton, Wash. Underwriter—None.
"
—

<•

(4/30)

Electronics Corp.

Radio &

Herold

<?feb. 27 filed 160,000

Boston

—

preferred stock (par $5) and 25.000 shares of common
jhtock (par 25 cents). Of the latter issue, 12,500 shares
rfire to be sold to underwriter at par and the remaining
\2,500 shares issued to Alton Blauner as a finder's fee
at par. Price—Of preferred. $5 per share. Proceeds—For
working capital. Office—Mount Vernon, N. Y. Under¬
writer—Amos Treat & Co. Inc., New York.

stock, series A (par $5) and 2,476,116 shares of
common stock (par 60 cents), of which all of the pre¬
ferred and 763,011.3 shares of common stock are to
offered in exchange for Mount Vernon Co. preferred
nnd common stock on the basis of one Holly series A
ferred

406,638 shares of Mount Vernon

preferred stock and 2Vz shares of Holly common stock
for each of the 305,204.52 shares of Mount Vernon comOf

stock.

chares

are

the

Holly

remainder, 210,000

offered

certain

holders

common
of 35,000

chares of Van Dorn Iron Works Co. common stock
«;ix-for-one

basis; 38,333 Holly

common

shares will be

certain finders, 60,000 shares to certain

offered to

ven-

of
property; 1,016,595 shares will be reserved
against conversion of preferred stock; .and the remain¬
ing 388,176 are to be reserved for possible issuance at a
luture date in exchange for 64.696 shares of Van Dorn

fiors

Xron Works

stock.

common

Underwriter—None.

Price—At par ($3 per share).

ventory, working capital, etc.
fk Co., Houston, Tex.
■
'7/

Israel

Houston Oil

Field

/'/" ''

Material

if which

<•-05,000

200,000 shares

pursuant

■$1,400,000 short-term
ments

and

Co.,

Inc.

common

(4/25)

stock

(par $1),

are

bank

working

loans,

capital.

for

Office

capital

—

require¬

Houston,

Securities Corp., New
Kidde

Income

Fund

tional

(Walter)
due April

800,000 shares of addi¬

Price—At market.

Proceeds—For

through

& Co.,

Inc.

reduce

(4/23)

loans

bank

etc.

KLM

April

Royal Dutch Airlines
shares of

8 filed 400,630

Dutch

Des Moines, Iowa

common slock
(par 10
t.-ents), of which 185,000 shares are to be offeiod by The
Equity Corp. on a share-for-share basis in exchange for
Equity Corp. common stock, and the remaining 135,000
tihares by Financial General Corp, on a basis of 1%

International

common

stock

exchange for
common stock. Equity and Finan¬
cial are to receive the 185,000 shares each of
Interna¬
tional common stock in exchange for all the outstand¬
ing shares of common stock of Investors Financial Corp.
find Group Equities, Inc. International has been informed
that 142,000 shares of Equity common owned
by Fre¬
mont Corp. will be tendered in acceptance of the
Equity
tixchange offer. Underwriter—None.
one

share of Financial

International Duplex Corp., San Francisco, Calif.
Dec. 21 filed 500,000 shares of common stock
(par one

-cent).^ Price—$1

per

share/ Proceeds—To

establish five super launderettes

ftaL

Underwriters—Names

equip

and

for working capsupplied by amend¬

ment.

International Fidelity Insurance Co.,
Dallas, Tex.
March 28 filed
4o

fate of

Offered
one

100.000 shares of
for

new

common

subscriotion-bv

share for each

ing capital, etc.
Dallas, Texas.

shares held.

Price

Proceeds—For work¬

Underwriter—Franklin Securities Co.,

^ International Paper Co.
April 10 filed 18,855 shares of
to be issued

stock

(no par)
stockholders at the

seven

—rTo be supplied by amendment.

common

stock

(par $10 >,

pursuant to the company's Incentive Stock

Option Plan for Key Employees.

stock

Corp.

★ Mercantile Acceptance

general corporate purposes. Under¬
Smith, Barney & Co. and The First Boston
the United States; and Heldring & Pierson,

(par 10 cents)

capital debentures.

Price—$505

offered

Society, in

Midland

Proceeds—For equipment,

March

250,000 shares of

stockholders

Co,, St. Louis, Mo.

':;//; */

;;

Mid-State Commercial

March 29

(5/1)

Corp. (5/1)
of notification) $190,000 of 7%

^letter

regis¬

tered debenture bonds due May 1, 1967. Price—At 100%
and accrued interest. Proceeds—For expansion of serv¬

ice area and working capital; Office—2 King St., Middletown, N. Y. Underwriter — Frazee, Olifiers & Co.,

Inc.; Blyth & Co.. Inc.; Stone & Webster Securities Corp.;
Brothers, Merrill Lynch, Pierce, Fenner &

New York.
Midwestern

Gardner

(jointly); The First
Corp. Bids—Planned to be received up to 11 a.m.'
(EDT) on May 1.

Instruments, Inc.

(4/23)

March 29 filed 200,000 shares of common stock

Boston

Lake Lauzon Mines

St., (Box 988), Grand Junction, Colo.

Underwriter—None.

repay

public, $1.50 per share. Proceeds—For re¬
outstanding bonds and working capital. Of¬

fice—126 N, Fifth

Lehman

Reinholdt

through rights and 18,667 shares to be
public. Price — To stockholders, $1.25 per

tirement of

per

bank loans and for construc¬
tion program. Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.

and

stockholders

share and to

April 4 filed $10,000,000 of first mortgage bonds due May

Beane

(letter of notification) 170,154 shares of com¬
stock (par $1) of which 151,487 shares to be offered

mon

com¬

Telephone Co.

offered

St., Rockville, Conn.—Underwriter—None.
Gas

| ;

•

and debenture
share). Proceeds—To re¬
indebtedness and for working capital. Office—155

Laclede

($1

Michigan Wisconsin Pipe Line Co.
July 2, 1956 filed $25,000,000 of first mortgage pipe line
bonds due 1976. Proceeds—To pay off short term bank
loans and for construction program. Underwriter—To be
determined by competitive bidding.- Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.;
Blyth & Co., Inc.
Bids—Three bids were received on
Aug. 1, all for 43as, but were turned down. Reoffering is
expected sometime during the first six months of 1957.

Main

Proceeds—-

11 shares of stock at $5 per

unit.

per

★ La Pointe Industries Inc.
April 10 (letter of notification)

West

Price—At face amount.

working capital.
Office — 333 Montgomery Street,
Francisco, Calif.
Underwriter—Uuardian Securities
Corp., same as issuer.
'
~

improvement, etc. Business—Ski center. Office—35 No.
Main St., Lake Placid, N. Y. Underwriter—None.

duce

to be offered in units of one $500

debenture at $450 each and

stock

Corp. of Calif;

March 27 (letter of notification) $16,900 of 12 year 5^>%
For

★ Kobl Mountain Enterprises, Inc.f
t'-A
April 8 (letter of notification) $15,000 of 6V2% convert¬
ible debentures (each $500 face amount converted into
65 shares of common stock) and 3,300 shares of common

mon

Securities

/V77/V:;/'A;7V-77^'.A^" ./A./

share.

y-.i

San

Pierson & Co. and the Netherlands Trading
the Netherlands.

stock

—

Price—To be supplied by

Exchange.

—

per

shares of com¬
share. Proceeds—

Co., Inc.; First Securities Co. of
Kansas, Inc.; Ranson & Co., Inc., and Brooks & Co., all
of Wichita, Kan.
• .
•
■"
;
*
" *

facilities and other
writers

Price—$6.50

(par $5).

Continent

Proceeds—For flight equipment and ground

amendment.

stock

For working capital.
Office—1501 East Douglas, Wichita
Kan.
Underwriters
Small-Milburn Co., Inc.; Mid-

(par 100

of which 250,000 shares
publicly in the American market and
150,630 shares will be made available for sale on the
be offered

Offering to be made
employees of this company and
Mortgage & Investment Corp.;/' r

Guilders—$26.32 each),

are

and

Price—At

Proceeds—For in¬

None.

McCormick Armstrong Co., Inc.
21 (letter off notification) 31,940

mon

(5/1)
common

officers

—

March

for

accessories,

Price

—

Expected to be $5 per share.

(par $1).

Proceeds

—

For

capital expenditures, working capital and general cor¬
porate purposes.
Office—Tulsa, Okla. Underwriter—C.

Ltd., Toronto, Can. (4/29-30)

E. Unterberg, Towbin &

March 18 filed 750,000 shares of common stock (par $1).
Price—40 cents per share.
Proceeds—For drilling ex¬

★

equipment, working capital and other corporate
Underwriter—Steven Randall & Co., Inc., New

Co., New York.

Minneapolis Area

Feb.

Development Corp.
filed $750,000 of 4% sinking fund income de¬

purposes.

bentures due March 1, 1972, and 50,000 shares of common

York.

stock

Lang Co., Inc. (4/30-5/1)
April 9 filed 73,199 shares of common stock

•

International Capital Corp.,
ffov. 29 filed 370,000 shares of

and

Business—Manufacture and
fire protection equipment,
Underwriter—Shields & Co., New York.
aircraft

Underwriter

of its affiliate. Mason

Price—To be supplied by

15, 1972.

Mortgage Fund, Inc., Washington, D. C.

(in denominations of $250 each).

vestment.

acquisition

(par $5).

Price—To be supplied by amendment. Proceeds—To re¬
duce bank loans and for working capital.
Underwriters

Co., Salt Lake City, Utah.
★ Lang Construction Engineering Co.
April 9 filed 239,999 shares of common stock

(par $3)

to be issued to stockholders of

the basis

Productions, Inc.
(letter of notification) 30,000 shares of common
stock (par $1). Price—$2 per share. Proceeds—For spe¬
cial building, equipment and for
working capital. Office
—Columbia, S, C.
Underwriter—Alester G. Furman
Co., Inc., Greenville, S. C.

Mutual

rights to expiry on May 1.
Proceeds—To reduce bank loans.

offered

for

—T.

National
;

repay

Proceeds—For investment.
Office

—

5001

West

President

Broad

St.,

Fuel

Gas

Co.

(5/28)

Proceeds—Together with bank loans, to be used to
bank loans of certain subsidiaries and for expan¬
Underwriter—To be deter¬

mined

by competitive bidding. Probable bidders: Halsey,
&
Co. Inc.; The First Boston
Corp.; Eastman
Dillon, Union Securities & Co.; White, Weld & Co.; HarStuart

—

Sharing-

sion program of subsidiaries.

Inc., Torrance, Calif.
March 5 (letter of notification) 194.180 shares of com¬
mon stock
(par $1). Price—$1.37 V2 per share. Proceeds

Profit

April 4 filed $15,000,000 of sinking fund debentures due
1982.

Logren Aircraft Co.,

for

Plans,

Coleman Andrews.

None.

For working capital.
Office — 2475A So. Crenshaw
Blvd., Torrance, Calif. Underwriter—Daniel Reeves &
Co., Beverly Hills, Calif.
■*
•

common

Richmond, Va.

days and then to the public.. Price — At par ($10 per
share).
Proceeds—For working capital.
Underwriter—

Chicago, 111.

300,000 shares of

Trust

Investment

Price—At market.

stockholders

W. Adams Street,

Inc., Richmond, Va.
March 19 filed 50,000 shares of capital stock (par $1),
to be offered trustees of profit sharing retirement plans.

Co., San Francisco, Calif.,

first

Office—176

Retirement

53,114 of the shares.

Monticello, N. Y. Underwriter—Walnut Securities Corp.,
Philadelphia, Pa.

★ Livestock Mortgage Credit Corp., Seividere, HI.
(letter of notification) 10,000 shares of com¬
stock

bank

share). Proceeds — For
capital expenditures, including construction of motel,
roadside restaurant and gas station. Business^—Has been
processing and selling of gravel. Office—203 Broadway,

March 27
mon

lands

Monticello Associates, Inc.

shares held:

underwrite

courts.

Feb. 18 (letter of notification)
Price—At par ($1 per

(par $25)
being offered for subscriptioin by common stockholders
record April 10, 1957 on the basis of one new share

Underwriter—Dean Witter &

payment

stock.

will

for

Underwriter—None.

★ Lincoln
Telephone & Telegraph Co.
March 28 filed 68,750 shares of common stock

three

for development of the

purposes;

—

each

and

Philip B. Harris (Vice-President of Northwestern Na¬
tional Bank of Minneapolis)
is President.
Statement
effective April 5.

and

Price—$43 per share.

lands

industrial

★ Mobile Home Park Development Corp.

Leslie

for

April 2 (letter of notification) 28,000 shares of common
stock.
Price
At par-($10 per share).
Proceeds — To
form a brokerage business to finance mobile home parks

share for each share of Lang Co. common stock
held on the record date. Distribution is
expected some- '»
time in May.
one

Jan.

sites

loans; and for working capital and other corporate pur¬
pose.
Office—Minneapolis, Minn.
Underwriter—None,

—Lee Higginson Corp., Chicago, 111., and J. A. Hogle &

Lang Co., Inc.

(par SI) offered in units of $30 of debentures and
Price—$50 per unit. Proceeds—For

two shares of stock.

★

Office—Boston, Mass.

International Bank of Washington, D. C.
f5ept. 28 filed $1,000,000 of time certificates, series B, C
*mdD. Price—At 100% of principal amount. Proceeds—
i?or working capital. Underwriter—Johnston, Lemon &
Co., Washington, D. C.
•

par

York.

Proceeds—To

amendment.

penses,

Boston

stock.

common

Investment.

(by amendment)

Mason

Feb. 8 filed $1,000,000 o± 8% note certificates.

April 3 filed $3,000,000 of convertible subordinated de¬
bentures

filed

Philadelphia, Pa.; B. Ray Robbins Co.,
York; and Berry & Co., Plainfield, N. J.

New

—

Tex.

Underwriters—Shearson, Hainmill & Co., New York; and
Underwood, Neuhaus & Co., Houston, Texas.
April 15 filed

Bank*

Development

Securities Corp.,

1, 1982. Proceeds—To

to be offered publicly and
company's restricted stock
-option plan for certain offices and key employees. Price
-—To be supplied by amendment. Proceeds — To retire
<

Industrial

American

perpetual 6% debenture stock.
Price
110% of par. Proceeds—To be converted into
Israel pounds and will be used as working capital to
extend the medium and long-term credits to enterprises
in Israel. Office—Tel Aviv, Israel. Underwriter—Israel

Proceeds—For in¬

Underwriter—Benjamin

March 15 filed 305,000 shares of

Inc.,

Feb. 13 filed $2,500,000 of

holders. Price—At par

Holy Land Import Corp., Houston, Texas
j?eb. 27 (letter of notification) 100.000 shares of common
Atock.

Services,

Finance Corp.,

Ardmore, Pa.
$250,000 of 6% renewable subordinated
debentures, due upon demand May 1, 1967, without de¬
mand May 1, 1972. Price—At par (in units of $100 and
$500 each).
Proceeds—For working capital. Office—17
W, Lancaster Ave., Ardmore, Pa. Underwriters—Walnut
March

Amsterdam Stock

Holly Corp., New York «
•fan. 25 filed 406,638 shares of 50-cent convertible pre¬

ynon

Diversified

Investors

Marion

Minneapolis, Minn., >vhich will also act as distributor.

sale

Corp., New York.

general corporate purposes.

shares of 6% cumulative convertible

chare for each of the

Underwriter

Manager

v.-

finance 1957 construction program of company and
its subsidiary, Lone Star Producing Co., and to provide
additional working capital.
Underwriter — The First

Payment Fund, Inc.
March 25 filed 10,000 shares of common stock. Price—At
market. Proceeds—For investment. Sponsor and Invest¬
ment

(4/24)

Investors Variable

March 21

share. Proceeds—For working capital.

per

—None.

Star Gas Co.

April 3 filed $30,000,000 of sinking fund debentures due
1982. Price—To be supplied by amendment. Proceeds—

Ltd.

(4 23)

Inc.

Hartfield Stores,

At
other cor¬

Proceeds—For expansion of business and

porate purposes. Office—162 Ftemsen
<*

Lone

(III.)

shares of common stock to be of¬
subscription by common stockholders of record
April 1, 1957, on the basis of two new shares for each
five shares held: rights expire on June 10. Price —$21

fered for

Guardian Loan Co., Inc.
April 10 (letter of notification) $300,000 of 10-year
^iiibordinated capital notes due May 1, 1967. Price
•jr

§ ,ar.

Casualty Co.

March 29 filed 20,000

2,950 shares of class B stock and one $7,000
Price—$10,000 per unit. Proceeds—For pur-

wock,
•

Interstate Fire &

Thursday, April 18, 195"*

•

riman Ripley & Co. Inc.

Bids—Tentatively scheduled
on May 28.

be received up to 11:30 a.m. (EDT)

.Volume 185. Number 5630

;

The Commercial and Financial Chronicle

National Lithium Corp., New York

Feb. 19 filed 3,120,000 shares of common stock

cent).

Price—$1.25

tion of

share. :Proceeds—For

equipment, etc.

Under,

if-National Telefilm Associates, Inc. (5/6-10) * "
15 filed $7,500,000 of convertible subordinated
debentures due May 1, 1967. - Price—To be supplied by

amendment. Proceeds—For reduction of short-term

other corporate
New York.

New

Brunswick

(Province

debt,"

Proceeds—To

advanced

The

New

Bruns¬

wick Electric Power Commission to repay bank loans,
Underwriter—Halsey, Stuart & Co. Inc., New York and

Chicago.!; Offering—Indefinitely postponed. "

'<?-

/:'7 New England Electric System
Dec; .3 filed- 819,000 shares, of common stock
to be offered in exchange for capital stock
Gas

Eiectric

Co.*

for each Lynn share.

Jackson

Curtis

the

basis

Offering—Expected to be done

V *•'■

■*.

■

Under¬

—

Potomac

of)

sinking fund deben¬
dlie J|&. 1,1982. Price—To be supplied by amend-

ment.

York, N.

Under¬

purposes.

Dec. 14 filed $12,000,0U0 of 25-year
tures

investment.

New

privately.

—

April

writer—Bache & Co.,

Proceeds—For

$1),

writer—Gearhart & Otis, Inc., New York.

working capital and

market.

son,

stock .(par

A Southeastern Factors Corp.; Charlotte, N. C.
.
Plymouth Bond & Share Corp., Miami, Fla.
April 10 (letter of notification) $100,000 of 6% subordi1Joseph A. Rayvis, also of Miami, is President.
nated bonds due April 1, 1967, and warrants to purchase
★ Portland General Eiectric Co. (4 30)
V
30,000 shares of $1 par value common stock (exercisable
April 11 filed 300,000 shares of common stock (par $7.50); .1 immediately 5nd up to July If 1959 at $3 per share) tp
Price
To be supplied by amendment. Proceeds —"To¬
be offered in units of $1,000 of bonds and'warrants ,tb
gether with funds from private placement of $10,000,000. j purchase 300 shares of stock. Price — $1,000 per unxi/:
Proceeds—For .working capital. Office—220 W. Fourth
4%;%. first mortgage bonds due June 1, 1987, will be used
to reduce bank loans.
Underwriter—Blyth & Co., Inc.,
St., Charlotte, N. C. Underwriter—Interstate Securities
San Francisco and New York.
/"V>/,■} Corp., Commercial Bank Bldg., Charlotte, N. C.
; . "
writer

ore testing program; for assessthe Yellowknife properties; and for cost

concentration plant, mining

Price—At

acquisi¬

properties; for

work

ment

per

V Plymouth Fund, Inc., Miami, Fia.
Feb. 5 filed 500,000 shares of capital

(par one

two

>• v

(par $1).

Lynn/!

Dealer-Managers—Paine, Webber, t
Moseley & Co., both of

and/F.rS.

Boston, Mass. Postponed temporarily.

Co.

(5/8)

Southeastern
March

Service Co.

Public

92,500 shares of common stock

filed

(par 10

cents), being offered for subscription by common stock -'
holders of record April 3, 1957, on the basis of one new
share for each 10 shares held (with an oversubscription

—

NEES

Edison

April 1 filed $14,000,000 of first mortgage and collateral
trust bonds due 1987. Proceeds
To repay bank loans
" and for construction program.. Underwriter—For any
bonds to be determined by competitive bidding. Prob¬
-V able bidders: Halsey, Stuart & Co. Inc.; White, Weld &

privilege);.rights to expire on April 23. Price—$1135.
per share.
Proceeds — For investments an subsidiaries

Co.; Equitable Securities Corp.; Kuhn, Loeb & Co.. and
Blyth & Co.,vine, (jointly); Lehman Brothers; Kidder,

and other corporate purposes. Underwriter
Bioren
Peabody & Co.; W. C. Langley & Co. and The First Bos-t 7 Co., New York and Philadelphia, Pa...
v. > - ^
/
ton Corp.
(jointly); Bids—Expected to be received up I
Southwest Acceptance Co., San Antortio, Texas
to noon (EDT) on May 8.
March 26 (letter of notification) $300,000 of 6% debenr
★ Propel lex Chemical Corp.
•
tures due 19677 Price—At face amount/ Proceeds—For
March 26 (letter of notification) 246,500 shares of com- v.
additional working capital.
Underwriter — First Trust*
mon stock.
Price —At par ($1 per share).
Proceeds —

wand» Coie *

srssz /

sr SuS

.-Mir.. "•
ctr
" ...
IJ!.
.!•/.*.
\
O
«»
a.A •
I.
A
• Spalding - (A. G.) & Bros. Inc., Chicopee* Mass.
Pyramid Productions,, Inc.,. New .York
April 12 filed $25,000,000 of first mortgage bonds due/
Vi v.',-, (*S/7)= rnrv1 ■( ,VV 'tiA'Hs I;
£ v.*
.• -.ro$
.>iK . >.• •
Sept,127 filed 220,000 shares of common stock (par $1),
May 1, 198,7.
Proceeds — To repay bank loans and for
April 11 filed $2,017r300 of 5V2% subordinated convert¬
of which, i200,000 shares are. to be offered to public and
construction program.: Underwriter—To be determined ::
ible debentures due June 1, 1962, to be offered for sub¬
20,000 shares issued fo underwriter. .Price—$5 per share.
by competitive, bidding.
Probable bidders:1 Halsey,; Proceeds—To retire
scription by common stockholders of record May .ft,:-1957
$125,000 of outstanding 15% deben¬
Stuart & Co. inc.; Kuhn,. Loeb & Co.; Blyth & Co., Inc.,
on the basis of $100 of debentures-for each 30 common
tures as well as a $173VL80 debt to Trans-Union Produc¬
and Smith, Barney & Co. (jointly); The First Boston 1
shares held.
Price—At par. Proceeds—To reduce bank
tions, Inc.; and for working capital.
Business—Tele¬
loans, r Underwriter — None.' The
Corp. and Glore, Forgan & Co.
(jointly); Harrim.an
largest stockholder^
vision releases.
Underwriter—E. L. Aaron & Co., New
Ripley & Co. Inc.; Kidder, Peabody & Co. and Salomon
Pyramid Rubber Co., has agreed to purchase all of the
York.
Bros. & Hutzler
(jointly). / Bids—Expected to be re¬
debentures not subscribed for by the other stockholdersRaymond Oil Co., Inc., Wichita, Kansas
ceived up to noon (EDT)von May 14 at 61 Broadway,
Jan. 29 filed 200,000 shares of common stock (par 25
Sperti Products, Inc., Hoboken, N. J.
New York 6, N. Y.
Jan. 29 filed $745,300 of 6% debentures due March l.„
cents). Price—To be supplied by amendment. Proceeds
• Northern Natural Gas Co.V(4/26) *
—For exploration,/development and operation of oil and
1972 and 14,906 shares of common stock (par $1) being
offered in units of a $100 debenture and two shares a#.*
April 3 filed $30,000,000 of sinking fund debentures due
gas properties. Underwriter—Perkins & Co., Inc., Dallas,
Nov. 1, 1976.
Tex. Offering—Postponed indefinitely;
Price — To be supplied by amendment.
stock, of which $545,300 of the debentures and 10,9(iB
'Proceeds—To repay bank loans and for new construc¬
shares of stock'are being offered first in exchange for
Raytone Screen Corp.
./•;} :'!•
tion^ Underwriter—Blyth & Co., San Francisco and New
the 54,530 outstanding shares of 5% cuniulative. con¬
Feb. 15 (letter of notification) 50,000 shares of common
York.
vertible preferred stock (par $.10) at the rate Of one
stock (par 10 cents). Price—$3.25 per ?hare. Proceeds
unit for each 10 shares of preferred stock held. ,Thn>—Te reduce debt, for purchase; of inventory and for
• Northwest Telephone
offer expires on April 22.
The remaining' $200,000 oiT
March 28 (letter of .notification) 7,200 shares of common
working capital. Office—165 Clermont Ave., Brooklyn,
debentures and 4,000 shares of common stock were pub¬
N. Y. Underwriter—J. P. Emanuel & Co., Inc., Jersey
stock
(par $5) to/be offered first to stockholders on
licly offered. Price—$100 per unit. Proceeds—For gen¬
a
City, N. J. ./v.',;//"-'' ^
preemptive basis; unsubscribed to employees; and
i
eral corporate purposes, including working capital anc*
remainder to ^public. Price—$16 per share. Proceeds—.Resource Fund, Inc., New York '
for redemption of any unexchanged preferred1 stock.
For construction,
payment of current/ liabilities and
March 29 filed 100,000 shares of common stock (par $1).
Underwriter—Smart, Clowes & Oswald, Inc., Louisville.
/working capital,'Oilice—1313 Sixth St, Redmond, Ore.
Price—At market.
Proceeds—For investment.
Under¬
Ky. Statement effective March 20.
;^r:'•
Underwriter—Noner
,"
New York State Electric &-Gas Corp.

(5/14)

[

Place, East Alton, 111.,.-Underwriter—None.
n'k'j L.

■

*«.'

■

D.: Johp^lleyman ef New York is Presi¬
!>J. ■ ;j~{.'M/--i
1'

writer—None,

,»

Northwestern Boll Telephone Co.

dent.

(4/23)

Roberts Co., Sanford, N. Ci'-/
'''
/March 29 filed $30,000,000 of 32-year debentures due
May 1, 1989. "Proceeds—To repay advances from Ameri- t-' Feb. 28 filed 190,000 shares of common stock (par $1), of
which 150,000 shares are to be sold for account of com¬
can Telephone & Telegraph Co., the parent.
Underwriter
—To be determined by competitive bidding. Probable
pany and 40,000 shares for selling stockholders. Price—
To be supplied by amendment. Proceeds — To reduce
bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley &
outstanding obligations and for working capital. Under¬
Co.;;The First Boston Corp.; Eastman Dillon, Union Sewriter—Straus, Blosser & McDowell, Chicago, 111. <•
; curities & Co.-Bids—To be received up to 11 a.m. (EST)
.

April 23 at Room 2315>
N. Y. /V -./:;,.
,
• V.von,

•

Nyvatex Oil Corp.

Feb. 26

195 Broadway, New York,^
>;.

(4/22-23)

> j

(letter of notification) 235,000 shares of

stock (par one cent).

Price—$1

common

share. Proceeds—For

per

payment of note; and drilling and development of propGerties.

Office

—

Esperson Bldg., Houston, Tex. Under¬
Co., Inc., New York, N. Y.

writer—Milton D. Blauner &
•••

Ohio Power Co.

Sept. 20 filed 60,000 shares of cumulative preferred stock

Proceeds—For construction program. Under¬
competitive bidding. Prob¬
able bidders: The First Boston Corp.; Blyth & Co., Inc.;
.Kuhn Loeb & Co.; Eastman Dillon, Union Securities & Co.
and Salomon Bros. & Hutzler (jointly); Harriman Ripley
& Co., Inc. and Stone & Webster Securities Corp. (joint¬
ly); Lehman Brothers. Bids—The two received up to 11
a.m.
(EST) on Oct. 30 were rejected, v.

Rogosin Industries, Ltd., New York
March 1 filed 75,000 shares of common stock. Price—
At par ($100 per share).
Proceeds—For site improve¬
ments and buildings in Israel; for process equipment
and machinery; for utilities; working capital; and other
corporate purposes.

filed 1,250 shares

stock

option of St.
of the stock is deposited).
at

(and may be declared
Regis, if not less'than 80%

share). Proceeds—For work¬
Office—1049 Front St.;. Festus, Mo. Under¬

held. Price:—At par ($1 per

ing capital.

Employees' and Salesmen's Stock Purchase Plan.

Savings Life Insurance Co.; ;.
March 21 (letter of notification) 60,000 shares of non¬
assessable common stock (par $1) being offered to stock¬
holders of record April 5 on the basis of one new share
for each-two shares held (with an oversubscription pri¬

Paul Hesse 3-D Arts, inc.

(5/15)
300,000 shares of com¬
mon stock (par 10 cents).
Price—$1 per share. Proceeds
—For machinery, equipment and working capital. Office
:—1250 Brookline Blvd.l'jPitisburgh, Pa. Underwriter—
Reilly, Hoffman & Sweeney, Inc., New York.
t

March 28

(letter of notification)

Pittsburgh Rys. Co.y Pittsburgh, Pa.
13 filed 547,678 shares of common stock (no par),'
which 540,651.75 shares are to be offered for subscrip¬

writer—None.!'!;'*:.'

../■'!>•

Security

vilege; rights tot expire about April 20. Price —
Proceeds-*-To capital and paid-in surplus.

share.

South

—Old
Ala.

Life Bldg.

$5 per
Office

(P. O. Box 376), Montgomery,

Underwriter—None.

Feb.
of

tion
ers

by Standard Gas & Electric Co. common stockhold¬
the basis of one Pittsburgh Rys. share for each

four

Standard

Gas shares held

subscription period will expire

of April 2,

April

1957. The
24. Price—$6

Proceeds—To Standard Gas & Electric Co.
Underwriter
None.
Standard Shares, Inc., owner of
45.59% of Standard Gas common stock, will purchase,
all shares of Pittsburgh Rys. to which it is entitled to
subscribe, plus any unsubscribed share and the remainling 7,026.25 shares not offered directly to Standard Gas

per

share.

—

stockholders. Statement effective March 27.

the

shares of common stock (par $5),
988,890 common sharea General of the Unitec*
Underwriter—To be determined by competitive
presently

Proceeds
States.

bidding.

—

outstanding

Attorney

the

Probable bidders, include Kuhn, Loeb &; Co...
Glore, Forgan & Co. (jointly).
Inc. *
4 : •' • v' • ' "! '-r '• '• »■'
of notification) 40,000 shares of common

Stuart Hall Co.,

Shop Rite Foods,

Inc.
March 28 (letter of notification) 15,000 shares of com¬
mon stock
(par $5). Price—$11.50 per share. Proceeds—
For fixtures and inventory.
Office — 617 Truman St.,
N.

E.,/Albuquerque, N. M. Underwriters—First South¬
Co., Dallas, Tex.; and Minor, Mee & Co., Albuquer¬

west

que,
•

N. M.

Shumway

March
mon

Uranium Mining Co.

(4 22-23)

(letter of notification) 200,000 shares of com¬
Price—$1.25 per share. Proceeds—For gen¬

stock.

eral corporate purposes.
Lake

March 5 (letter

deposited for exchange

April 12 filed 75,000 shares of common stock to be of¬
fered
for subscription
under the company's Salaried
'

working capital. Office—121 W. 20th St., Kansas
Mo. Underwriter—White & Co., St. Louis, Mo. '

—

stock

it Phillips-Jones Corp., New York

stock

Price—$5 per share. Proceeds—To equip a
third super market and for working capital and other
corporate purposes. Underwriter — R. S. Dickson & Co.,
Inc., Charlotte, N. C. Offering—Expected today (Aprit
16). ;
! ! • .V
Stinnes (Hugo) Corp., New York
■
(par $1),

stock for each share of Lumber company stock.
The offer will be declared effective if 95% of the latter
St. Regis

common

e-}. -h.

Markets, Inc.y Miami, Fla.
100,000 shares of class A common

Stevens

April 1 filed 850,000 shares of common stock (par $5)
to be offered in exchange for common stock of St. Paul
& Tacoma Lumber Co. on,.,the basis of , 56% shares of

Uranium Corp. / >
'vS:;?.'"'V
(letter of notification)
1,200,000 shares of
A Scruggs (Loyd) Co., Festus, Mo.
(par one cent). Price—25 cents per share.
April 11 (letter of notification) 54,646 shares of common
Proceeds
For mining expenses.
Office — 2311 Second ' stock to be offered for subscription by common stock¬
Avenue, Seattle, Wash. Underwriter—None, ^ j
holders on the basis of one new-share for each share
March

•

March 25 filed

Lehman Brothers and

Regis Paper Co.

St.

(Ohio)

Co.

March 29 filed 530,712

Louis, Mo.

of class C cumulative pre¬
ferred stock (par $57).
Price—$97 per share. Proceeds
—To R. M. Realty Co., who is the selling stockholder.
Underwriter—Yates, Heitner & Woods, St. Louis, Mo.
27

effective

it Pacific

Insurance Corp., St.

St. Louis

March

<par $190).

writer—To be determined by

Underwriter—None.

Oil

Standard

April 16 filed $4;400,000 of Interests in company's Sohi©
Employees Investment Plan, together with 56,500 shares
of Standard
Oil common stock (par $10) and* 14,620
shares of 3% % cumulative preferred stock, series A (par
$100), which may be purchased under the plan.
rt
v •

City, Utah.

Office—65 E. 4th South St., Salt

Underwriter—Winslow, Cohu & Stet¬

(par

Price—$6.75 per share.

$1).

Ltd.

Supercrete,

„

Proceeds—For
City,
,

$550,000 bank loans, and for increased facili¬
capital. Office — St. Boniface, Canada
Underwriter—Straus, Blosser & McDowell, Chicago, III

—To repay

ties and working

Cleveland, Ohio (4/23)
•!:'
shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—To re¬
duce short-term borrowings and for expansion program
Underwriter—McDonnell & Co., New York.
•

Swartwout

Co.,

March 29 filed 30,000

Tex-Tube,

Inc., Houston, Texas

(4/22-26)

of 6% convertible preferred
stock (par $10) and 50,000 shares of common stock (pbr
$1). Price—To be supplied by amendment.
Proceeds—
For capital- expenditures and working capital.
Under¬
writer—Moroney, Beissner & Co., Houston, Tex.
\
March 29 filed 50,000 shares

^ Thiokol Chemical Corp., Trenton, N. J.
April 11 filed 25,000 shares of capital stock to be
served for issuance under the company's Officers'

Employees' Stock Option Plan.
Trans Empire Oils Ltd., Calgary, Alberta,

re¬
and

Canada*

April 9 filed 436,291 shares of common stock (par $1.25)
to be offered for subscirption by common stockholders
of record March 28, 1957 at the rate of one new share
for each six shares held.
Price—$2.50 per share (Cana¬
dian).
tures

Proceeds—For capital expenditures
exploration activities; also for

for

corporate purposes.

and expendi¬
other general

Underwriter—None.
Continued

page

The Commercial and Financial Chronicle...

(1874)

Thursday, April 18, 1957

?/:

Continued

jrorn

ic Winthrop

page

Tripac Engineering Corp.

Feb. 27

(letter of notification) 100,000 shares of class A
stock (par 10 cents).
Price—$1.90 per share;
Proceeds—For working capital; machine tools; equip¬
common

•

proprietary development.
Office — 4932 St.
Elmo Ave., Bethesda 14, Md.
Underwriter—Whitney &

March

filed

convertible subordi¬
To be supplied by
amendment. Proceeds
To retire a $925,000 note and
$2,500,000 of bank loans and for working capital. Under¬
writer— F. Eberstadt & Co., New York.
> ^ :
Price

United Artists Corp., New York

ACF-Wrigley

(par $1),

be offered for account of
company and
100,000 shares for selling,; stockholders/:
Price
To be supplied by amendment. Proceeds
For

locations.

store

Allen &

Illuminating Co., New Haven, Conn.*

March 22 filed 311,557 shares of common stock

(no par)
being offered for subscription by common stockholders
of record April 10, 1957 on the basis of one new share
for each eight shares held; rights to expire on May 2.
Price—$22 per share. Proceeds—For payment of bank
and

loans

construction program.

United

States

Air

Underwriter—None.

Conditioning Corp.

Sept. 27 filed 600,000 shares of

—

Detroit, Mich. Underwriter' 8
y

Underwriter—None.

Prospective Offerings

(par 10

.Acme

Steel

Co.

of the unsold portion of the first 50,000 shares, are
public; and the underwriter will be
granted options to acquire the remaining 500,000 shares
for reoffer to the public. Price—At market prices. Pro-1
ceeds—For working capital and general corporate, pur¬
poses. Office—Philadelphia, Pa. Underwriter—Mortimer
B. Bumside
&
Co., Inc., New York. Offering—Date

proceeds of

long-term financing in 1957. On Sept.
public offering of 400.000 shares of com-"
mon stock was made through Blyth &
Co., Inc. and Mer¬
rill Lynch, Pierce, Fenner & Beane and associates.

any

indefinite.
•

Dec.

—

this

/y>y
(to be surviving
First Mortgage Corp.
Chicago) plans a public;

company

following merger of

Irwin

Jacobs

Co.

Products, Inc.
"
April 11 filed 500,000 shares of common stock (par $1).
Price
To be supplied by amendment.
Proceeds—For
purchase of new materials and working capital.
Office

Products, Inc., Emmaus,
was

stockholders

mon

Pa.

—

Jonathon

Co.,

some

additional

common

derwriter—Reynolds & Co., New York.
•

com¬

shares.

Un¬

stock to be offered to stockholders

mon
one

new

share for each two shares held.

sey.

C$10 per share). Proceeds—For expenses for. operating
public utility (telephone and telegraph). Underwriter
—Daugherty, Butchart & Cole, Inc., Portland, Ore.

ferred stock series A (par $20).

March 127

Corp., Ttawlins, Wyo.
$400,000 of 5%% subordinated deben¬

filed

tures, series B, and 440,000 shares of common stock (par
one cent) to be offered in units of
$1,000 of debentures
and

1,100 shares of stock.

Price—$1,011 per unit. Pro¬
ceeds—For capital'expenditures and
operating purposes.
Underwriter—Bosworth, Sullivan & Co., Denver, Colo.,
Western

States

Life

Insurance

Co.,

Phoenix,

Arizona

April 1
stock

either

(letter of notification) 50,000 shares of common
(par $1) to be offered to policyholders issued
by
Western

Life Insurance

capital

and

States
Co.

Insurance

Price—$4

surplus

Co.

share.

per

accounts.

Office

Road, Phoenix, Ariz.
Underwriter
surance Co.,
Phoenix, Ariz.
Western Uranium Corp.

—

Western

States

Thomas

Western States In¬

new

for

each

held

and

800,000

the

public. Price — To stockholders, seven cents
per
share; to public, 10 cents per share. Proceeds—For min¬
ing expenses. Office—139 N. Virginia * St., Reno, Nev.
Underwriter—None.
• Wilmington Truck Rental Co., Inc.
March 29 (letter of notification)
1,128 shares of common
stock to be offered to stockholders on
a
basis of one
new

share for each three shares
held. Price—$35 per share.

major portion thereof
now
Proceeds—For improve¬
ment of plant and equipment.
Office—100 West 10th St
or

Wilson & Co., Inc.

Aug. 28 filed $20,000,000 of
due

1976.

20-year

Price—To

sinking fund de¬

supplied by amend¬
presently outstanding
first mortgage bonds, to
repay bank loans and for- ex¬
pansion program.
Business—Meat packing firm.
Un¬
ment.

Proceeds

—

redeem

derwriters—Smith, Barney & Co.; Glore Forgan & Co.
and Hallgarten & Co., all of New York
City. Offering—
Indefinitely postponed.

Underwriters—Emch

Bids—Expected in first
v../

second week of

/.->•;

Bridgeport Gas-Co. ■/'t/*.^7/.. *•April 8 it was reported company plans an offering of '«
additional

stock

comjhon

its

common * stocKTidlcters r

during the first half of this year..* Proceeds-^Tl) pay off f
bank loans (amounting to $700,000 at Dec. 31, 1J360; 1
Underwriters ;—Smith, Ramsay & Co. Inc., Bridgeport,
Conn.; arid Chas. W. Serantori *&'Co.,-New jtiaveh, yoitd;
-

By ers

Feb.

vote

Co.

Co., both of Milwaukee, Wis.

European Securities Co.

mon

stock will be offered to common stockholders dur¬

ing the current

year. Underwriters—Dominiek & Dominick in United States; and Pictet & Cie, in Switzerland.
of record, but not beneficially, on March

Latter owned

1, 1957, 380,532 of the 459,379 common shares outstand¬
ing.
//.,;■
y yy.yyAmerican
March 8 it

Trust Co.,

was

New York

"7.7

announced bank is offering to its stock¬

holders the right to-subscribe for 50,000 additional shares,
of capital stock on the basis of one new share for
each,
five shares held as of Jan. 21; rights expire on

April 30.
Proceeds—For expansion
Underwriter—None. Harvey L. Sohwamm and
his associates, who acquired control in
1950, will pur¬

Price—At par ($10 per share);
program.

chase any unsubscribed
Associated Truck

shares.

(A. M.): Co.

was
announced stockholders on May 7 will v
authorizing a new class/of 100,000 snares of/"
cumulative preference stock (par S100) and on mcreas- -> *
ing the authorized outstanding indebtedness to $15,000,000, in connection with its proposed -recapitalization
plan. There are no specific objectives involved. Control
—Acquired by General Tire Tk Rubber Co. lnf 1956. f
Underwriter — Dillon, Read &" Co., Inc., New York,4/
handled previous preferred stock financing, while KidJ
der, Peabody & Co. underwrote General Tire & Rubber •
Co. financing.
*
./

:
pipe line in South Carolina at an estimated cost ot abOdt /,
$8,700,000; Underwriter—Scott, Horner & Mason, Inc., •
Lynchburg, Va.
.
1'
\ - 7
i Carolina Telephone & Telegraph Co.'. ^
,

March

announced company plans to issue and j
sell some debentures in an amount which would permit
/
substantial reduction of its bank loans (which approxi- i.
mate

was

$12,200,000).

done

Previous /debenture
^
\

privately.

Central

Hudson

Gas

Electric

-was

Corp.

that the company plans,

announced

was

financing

before
approximately $12,000,- */
(two-thirds in debt securities and V

the middle of the year, to issue

securities

new

balance from

280,000 shares).

sale of

stock, probably about/
For construction program.'■>

common

Proceeds

Underwriter—For

—

debt securities, Kidder, Peabcdy
& Co.: for common stock, Kidder, Peabody & Co. and/.
Estabrook & Co., both of New York. Registration—Yx
t:.
pected late in April.
*'
any

■?/'>£

// Central Illinois Light Co.
March

this

sell

reported

was

Fall-]between

mortgage bonds.

...

company

$18,000,000

competitive

Proceeds—To repay
Underwriters—To

bidding. »Probable

plans to issue and /
$20,000,000 first >
bank loans and for V*

construction.

new

determined

by/-

bidders:

Halsey, Stuart
Co. Inc.; Morgan Stanley & Co.; Kuhn, Loeb & Co.;/
Eastman Dillon, Union Securities & Ccf.; The First Boston Corp.; Harriman Ripley & Co. Inc.; Merrill
Lynch,"
Pierce, Fenner & Beane and Stone & Webster Securities Corp. (jointly).
/- /"y;;
■
//-//
'VVv/V-'/:
&

was

announced

sale

sold

by company and 75,000 shares by selling stock¬
holders. Price — $10 per share. Proceeds — For
general
corporate purposes. Business—A short haul motor com¬
mon

carrier

operating over 3,000* miles or routes in Illi¬
nois, Indiana, Michigan and Ohio. Office—Grand Rapids,
Mich.
Underwriter—Cruttenden. "Podesta & Co., Chi¬
cago, 111.
Atlantic

City Electric Co.
April 9, Bayard L. England, President, announced that
later this year the company will
probably issue about
$5,000,000 of convertible debentures. Proceeds—For con¬
struction program.

Underwriter—May be determined by
competitive bidding. Probable biddets: Halsey, Stuart &
Co.

^ Central Illinois

April 9 it

Public -Service Co.

// (

reported company plans to issue and rell/V

was

$10,000,000 of 1st mtge."bonds.Proceeds—To reduce bank/
loans and for construction program.

Underwriter—To

be£

determined

by competitive bidding.
Probable bidders:.'
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutiler;.
Equitable Securities Corp.; Eastman Dillon, Union Secu¬
rities & Co.; Blyth & Co., Inc.; Kidder, Peabody & Co.;

Merrill Lynch, Pierce, Fenner & Beane (jointly);,
Kuhn, Loeb & Co. and A. C. Allyn & Co., Inc. (jointly).,Offering—Expected late in 1957.
,7-7
and

•

Central

Electric

Louisiana

Co., Inc.

plans to issue and1
sell late this year $6,000,000 of first mortgage bonds. %
Proceeds
Together with $4,500,000 of 4%% 12-year/

April

8 it

announced

was

company

—

convertible debentures to be placed privately, to be used
to

repay bank loans and for construction program. Un¬
derwriters—Kidder, Peabody & Co. and White, Weld &

middle

Co/about the

placement of
gage

Lines, Inc.

(4/29-5/3)
125,000 shares of
class A common stock (par $3) is planned the latter
part
of April or early in May. Of the total 50.000 shares will
March

of last year arranged the private
issue of $5,000,000 series G first mort¬

bonds.

Public Service Co.
reported company expects to offer pub-*,

^ Central Vermont
April 15 it

licly

some

ceeds—To
gram.

additional
reduce

stock during 1957.

common

loans

bank

Underwriter—To

bidding.
&

was

for

and

construction

Pro¬
pro-*

determined

by competitive*
Probable bidders: W. C. Langley & Co.; Blyth-

Co., Inc.; Lee

Higginson

Corp.; Harriman

Co. Inc.

* Chance Vought Aircraft,
April 15 it

Ripley &.

_;,-*■

was

reported

company

plans to issue and sell

$12,000,000 of convertible securities
ferred stock).

Inc. /
(debentures of pre-

'
•

Underwriter—May be Harriman Ripley &'*

Co., Inc., New York.

,
^

Chicago, Milwaukee, St. Paul & Pacific RR. (5/1)
Bids are expected to be received by this company up;
to noon (CDT) on May 1 for the purchase from it of
-

and Shields-& Co.

$6,000,000 equipment trust certificates due semi-annuallyfrom Aug. 1, 1957 to Feb. .1, 1972, inclusive.
Probable
bidders: Halsey, "Stuart & Co. Inc.; Salomon Bros. &
Hutzler.

and

Inc.; Kuhn, Loeb & Co., American Securities Corp.
Wood, Struthers & Co. (jointly); White, WeM & Co.

(jointly); The First Boston Corp. and
(jointly); Eastman Dillon, Union Securi¬
Smith, Barney & Co. (jointly); Lee Higginson Corp.; Blyth & Co., Inc.
&

Co.

ties & Co. and

Baltimore &
Bids

are

Ohio

RR.

(579)

expected to be received by the company on

about

May 9 for the purchase from ;it of $3,585,000
equipment trust certificates to be due annually in 1-to15-year?/ Probable bidders: Halsey, Stuart & Co. Inc.;
Salomon Bros. & Hutzler.

Drexel

Wilmington, Del.—Underwriter—None.

bentures

Stockholders on April 6
authorized issue of 30.000

was announced stockholders will vote
April,
increasing the authorized capitalization from 600,-'
/000 shares (consisting of 500,000 common shares and.
100,000 preferred shares) to 1,000,000 common shares,/
without par value.. It is probable that additional com¬

March 16 (letter of notification)
1,000,000 shares of com¬
mon stock
(par five cents) to be offered as follows:
200,000 shares to present stockholders on a basis of one

bidding.

Proceeds—For
501

approving
preferred stock.
on

American

for

Nuclear

March 12 it

share for each nine shares held; rights to
expire on
June 3. An additional 1,565,662 shares will be
subscribed

Western

vote

and The Marshall

new

Underwriter*

are

• Western Electric Co., Inc. (5/1)
April 16 (letter of notification) 2,856 shares of common
stock (no par) to be offered for
subscription by minor¬
ity stockholders of record April 9, 1957 at the rate of one

Broadway, New York 7, N. Y.

Stuart & Co. Inc.; Salomon Bro1?. & Hutzler.

Aluminum Specialty Co. -".yc, * .-•/ y-''/..;
/' /y
March 18 it was announced company plans to issue and
sell 15,000 shares of $1.20 cumulative convertible pre¬

Price—At par

program.

competitive

com¬

—None.

Great Southern RR./ (6/4>
tentatively expected to be received by the

June 4 for the purchase from it of about $3,000,000 equipment trust certificates. Probable bidders: Hal¬

the basis of

by American Telephone & Telegraph Co,, the parent.
Price *- $45 per share. Proceeds — For
expansion, etc.

are

pany on

Office—195

Alabama

/Bids

Los

Angeles, Calif.

Valley Telephone Co., Silverton, Ore.
March 12 (letter of notification) 12,811 shares of

Weld & Co.

the
■■

reported company may offer to its

—

Underwriter

■>)
f

000 of

Feb. 26 it

U. S. Semiconductor

Ariz.

Feb. 1 it

Air

writer—Schwabacher & Co., San Francisco, Calif.

-^Phoenix,

Underwriter—-To
Probable bid-

determined

offering of $1,000,000 class A 6% participating convertible stock (par $1). Underwriter—Baker, Simonds & Co.,

Under-

purposes.

reported

was

ders: Halsey, Stuart & Co. Inc.; The First Boston-Corp.;
Lehman Brothers; Harriman Ripley & Co. Inc.; White,

Detroit, Mich. Offering—Expected in April.

(4/22-26)

March 22 filed 800,000 shares of capital stock (par $1).
Price
To be supplied by amendment. Proceeds •— For

working capital and general corporate

corporation
and

Corp.

*■/■■■ Advance Mortgage Corp., Chicago, III.

United States Leasing

new

19, last year,

construction

•

*.-■

„

March 22 the company announced that it plans io retire
bank loans ($15,000,000 at Dec. 31, 1956) out of toe

to be offered to the

Proceeds—For

Carolina Pipe Line Co.
March 11 it was reported company plans to construct a

cents), of which 50,000 shares are to be•- offered to em¬
ployees, distributors and -dealers; 50,000 shares, plus

City, Tenn.

stock

common

of April 1%, 1957

(B. G.) & Sons, Inc.'-,.-'-•(letter of notification) 12,500 shares of first
preferred stock.
Price—At par ($20 per share).
Pro¬
ceeds—For working capital. Office—Young's Warehou.-eBuilding, Lamont Street at S. Boone Street, Johnson
March

York.

United

★ Young

Underwriter—F. Eberstadt & Go., New

Office

Co., New York.

—

•

stock held

common

announced tnat company may

was

June.

share for each two shares

57,250 shares to be offered holders of options to purchase
ACF-Wrigley common stock; and 75,000 shares to hold¬
ers
of ■common stock subscription
warrants of ACFWrigley. Price-~$2 per share. Proceeds—To acquire, de¬
velop and operate warehouses, shopping centers and

of which 250,000 shares are to

working capital.

the following basis: 1,816,-

on April 25, 1957), 120,000 shares on
the basis of 30 shares for each $1,000 of debentures held;

(4/24)

March 29 filed 350,000 shares of common stock

the basis of

(rights to expire

—

•

one

$10,000,000 of 6%
1960.

909 shares

(4/24)

(6/5-13)

issue and
sell $25,000,000 of first mortgage bonds. Stockholders to
vote April 30
on
approving proposed new financing,
March 19 it

Inc.

ACF-Wrigley Stores, Inc.

United Artists Corp., New York

nated debentures due

Wrigley Properties,

March 6 filed 2,069,159 shares of common stock (par $1)
being offered for subscription by security holders of"

Co., Inc., Washington, D. C.
•

Boston Edison Co.

notification) 75.000 shares of common
(no par). Price—$2.50 per share. 'Proceeds—Formachinery, equipment and working capital. Office—3216
/Winthrop St., Fort Worth, Texas. Underwriter—None, -.r

and

ment

Corp.

March 29 (letter of

stock

Chicago, Rock Island & Pacific Ry, (5/14)
Bids are expected to be received by this company on
v.
May 14 for the purchase from it of $3,000,000 equipment **
trust

Co.

certificates.

-Probable

bidders:

Halsey,

Inc.; Salomon Bros. & Hutzler.

'Cleveland

Electric

Illuminating Co.

Stuart
"

&
4

Nov. 12 it was reported company plans to issue and sell
$25,000,000 of first mortgage bonds in the Summer of

-^Volume 185

Number 5689- r.. The Comrnerctaland

,*•

<1875>

1957i .-Proceeds—To repay bank loans- and for

posed- split up

tion programs

2-for-l

construc-.^-Georgia Power Co.(6/6)
Underwriter—To be determined by comJan. 21 it was announced the company is planning isVpetitive bidding. Probable bidders: Halsey, Stuart &
suance and sale of $15,500,000 first mortgage bonds. ProGo. inc.; The First Boston Corp.;, Blyth ot Co.» liic:; DilV vceeds —* To
repay bank loans and for new construction.
Ion, Read & Co. Inc.; Blair & Go. Inc., and Baxter, .Wil*-- *Underwriter-—be determined by competitive bidding,
liams & Co.
Prooabie bidders: WqImv- si..crt a. prt
(jointly); Glore, Forgan & Co.; White, >. Pro»-*ahto hirfHe-c Halsey, Stuart & Co. »«•». Morgan
Inc.;
...

of the present outstanding sliares on at
basis.
Proceeds—For working capital.
Under¬
writer—Morgan Stanley & Co., New York.
V International

Weld

Co.

•t.:-"-';

" •'

March

would

be purchased

(6/3)
March.,12 it" was announced company plahs to offer to
common stockholders about June 3 the
right to subscribe,
for approximately $500,000 of convertible
capital detoeD-

.^stockholders at an,aveiage price of $10 per share,/. Pro-

V ceeds—Together with fundsirom private sale of $40,000,
000, for construction program. -Underwriters—Lehman
-

Co., both of New York.

tures due

'''

$8,000;000

conyerti^^debentoe^^tp

^|957;"right» to

expire

oiX'Or

Macch A-U

about May 21, ,1957. Proceeds
Vaamv*

iry-j. Ail/4"
...

^der, Peabody & Co., New York.

body

• '

stock

stockholdersv (see above).

6 for

$20,000,000 debentures with

000 to besold in

September.,

new

Columbus & Southern Ohio Electric Co.

stock.

Proceeds—To

construction.

Underwriter—To

determined

Co.-

■

new

bonds.

Proceeds—To

construction.

retire

bank

Underwriter—To

loans

and

determined

Probable bidders: Halsey, Stu¬
Inc.; Kuhn, Loeb & Co.; Glore, Forgan & Co.;
First Boston Corp.; Harriman Ripley & Co. Inc,;.
Eastman Dillon, Union Securities & Co., and White,:

Weld

&
Co.
(jointly); Dean Witter & Co.; Lehman
Brothers; Equitable Securities Corp.; Blyth & Co., Inc.

Iowa Southern Utilities Co.

April 2 it was announced company plans to issue and
sell $5,000,000 of first mortgage bonds later this year.
Proceeds
To repay-bank loans and for construction
program/ Underwriter—To be determined by competi¬

Stone & Webster Securities
•

Co.

The

bank loans and for

repay

company

securities

by competitive bidding.

competitive bidding. Probable bidders: Merrill Lynch,
Pierce, Fenner & Beare and Lehman Brothers (jointly):

additional $25,000,-;
"
;
.'V

// //.//
plans to issue and

;

common

new

art & Co.

4 itwas reported company plans to raise ap-proximately-• $7,000,000 through the sale of additional

by competitive bidding/ Probable bid- 4
Stuart & Co. Inc.; Morgan Stanley & Co.;
Merrill Lynch, Pierce, Fenner & Beane and White. .Weld*
& Co. (jointly). Bids—Expected to be received on June

ders: Halsey,

mortgage
--for

Underwriter— -March

To pe determined

(5/22)

April 1 it was reported company now expects to issue
and sell in the second quarter of 1957 $11,000,000 of first

mon

announced

/V Iowa Gas- & Electric Co.

voter

(jointly); White, Weld & Co.. and R. W..
Co. (jointly); Salomon Bros. & Hutzler;
Smith, Barney & Co. For stock: Kidder, Peabody & Cot
Bids—Expected to be received up to 11 a.m. (EDT) on
May 22 for bonds.

.bidding,*Probable .bidders:Halsey,'-..Stuart- & Co. Inc.;
Merrill Lynch^ ;Pierce, Fenner and Beane and White,
issuance/- Weld & Co. (jointly); Salomon Bros. & Hutzler and
and sale of additional debentures in;order to finance /Eastman Dillon, Union Securities & Co. (jointly); Kuhn,
its 1957 construction program, which is expected to cost
' Loeb & Co. and A; C. Allyn & Co. Inc. (jointly); Stone
& Webster
approximately $87,000,000, which will also-be financed,'
^ Webster Securities finM^i.p0 Higginson Corp.
Senuritiec Corp./Lee vrirrrrincm-i
in part, through the offering of 1,675,415 shares of com-/
Gulf'States Utilities Co.
Columbia Gas System, Inc. (6/6) /
'
Feb. 18, company announced that it plans the

^.Pressprich t&

repufied.-eoinpjany

•

were

Probable bidders: For bonds:-Halsey, Stuart & Co. Ine.;
Merrill Lynchs Pierce, Fenner & Beane and > Kidder, Fee-

plans to issue and
sell $16,000,000 first mortgage bonds late in Jrune, ^.Pro¬
ceeds—To repay bank loans and for construction program.
Underwriter—To, be determined by competitive
was

Utilities Corp.
announced stockholders

plans to sell about
($20,000,000 of first mort¬
gage
bonds and about $9,000,000 of common stock).*
Underwriters—To be determined by competitive bidding.
was

$29,000,000 of

1967.

Gulf States Utilities Co.

o^ei'ed

was

Interstate Power Co.
March 4 it

Underwriters—Johnston, Lemon & Co.,
Washington* T>. C.'v-V/V:1- V
V

'.jt Collin's Radio Co. (5/6-9)
"
''V/' * r "
April 15 it was reported early .registration is expected

it
on

—

Government Employees Corp.

approving an increase in the authorized^
common stock from
2,500,000 to 4,000,000 shares (par $5/.
Underwriter
Butcher & Sherrerd, Philadelphia, Pa.,
handled last eouitv financing.. / /
•
/

by- Delhi-Taylor Oik- Gorp.^r., its

Brothers, and Allen &

March

April

Stanley & Co.; Blyth & Co., Inc., Kidder, Peabody &
Co. and Shields & Co.
(jointly); Equitable Securities
Corp. and Eastman Dillon, Union Securities & Co.
(jointly); Harriman Ripley & Co. Inc. Bids—Tentatively
expected to?be received up to 11 a.m. (EDT) on June 6.

Coastal Transmission Corp,'.-..',
••• _•/
6 it was reported the company plans to offer
publicly $7,800,000 of interim notes and 678,900 shares
©f $1 par stock in units, (Common stock not sold in units

Corp.; Carl M. Loeb, Rhoades
Offering—Expected in June.

—

Feb. 21 it was-reported that company
★ Gulf States Utilities Co.
sell in the-Fall $8,000,000 of cumulative preferred;«teekr\ ■j- April '^it Was- reported1
corrfpany-Tentatively

tive/bidding. Probable bidders: Halsey,. Stuart &..CO;
plans to
Inc.; Kuhn, Loeb & Co.; White, Weld & Co.; Lehman
preferred stock this year, Proceeds
Brothers, and Bear,/Stearns & Co. (jointly) Equitable
—To
finance construction
program.
Underwriter—To
Securities Corp. and Salomon Bros. & Hutzler (jointly);
-Community Public Service Co. (5/28)
be determined by competitive bidding. Probable bid¬
March 28 it was announced company plans to issue and
The First Boston Corp.; Dean Witter & Co.
ders/Stone & Webster Securities Corp.; Lehman Bro¬
sell $3,000,000 first mortgage bonds due 1987.
Proceeds
Jefferson Lake Sulphur Co.
thers and Equitable Securities Corp. (jointly); Lee Hig¬
*—1To refund bank loans and for construction program.
Dec. 27, Eugene H. Walte, Jr., announced company plans
ginson Corp, and Carl M. Loeb, Rhoades & Co. (jointly);
Underwriter—To be determined by. competitive bidding.
/ in the near future to sell an issue of couvertiWe-deben'Probable bidders:. Halsey, Stuart & Co, Inc.; - Salomon /<. Kuhn, Loeh/&.Cor:XJlere; Forgan & Co. and W. C. Langtures.
Proceeds—-For expansion program.
ley & Co. (jointly).<
>
Bros/&,Hutzlerj. Blair. & Co. Incorporated.
Bids—Ex-.
/ Jersey Central "Power & Light Co. "
V
: if Hauna Steel Co., Birmingham, Ala.
peeted to be received up "to-11 a.m. (EDT).. on May 28.
Sept. 12, it was announced company plans to issue and
; April 8 it was-reported *eoftipany plans to .issue
Ilegistratiobr^-Planned for April 25.
and sell
•a
sell $8,000,000 of first mortgage bonds due 1987 (later
120,000 shares of class A common' stock; Price—$5 per
Connecticut Light & Power Co
changed to $15,000,000). Underwriter—To be determined
Feb. 16, it was reported company plans to sell /ndt less/x shar.e.i Uuderwriters-^-Cruttenden, Podesta & Co., Chiby competitive bidding. Probable bidders: Halsey, Stuart
;
than $20,000,000 of first mortgage bonds, possibly this v cagorlII.; and Odess, Martin & Herzberg, Tnc., Birming& Co. Inc.; Kidder, Peabody & Co.;: The First Boston'
jFaFl/ depending upon market conditions. ProceedSr-For -ham, Ala. Offering—Expected in May/
;
Corp.; White-, Weld & Co.; Eastman Dillon, Union Secu¬
construction program. " Underwriter —" Putnam;-#: Co.r ; -; Hilo Electric Light Co., Ltd.
.(Hawaii) >:
/
rities & Co., Salomon Bros. & Hutzler and Merrill Lynch,
Hartford, Conn.; Chas. W, Scranton & Co., New Haven,
March 9 it was announced company plans-to issue and
Pierce, Fenner & Beane (jointly).«Bids —Expected ia
Conn.; and Estabrook & Co., Boston, Mass.
' -U-:- seR $2,000^000 Of'first mortgage bonds, series F,/at an
June or July, 1957. - ;•
V'/
Consolidated Natural Gas Co. (6/11)
>'VI .
• • ' interest rate not. to. exceed 6%.
Previous bond financKaiser Industries Corp.
••
-r
.^Feb. 11 it was ammunced company plana to issue and -sell • '"2 was done privately.. ", - ,,./
March 13 it was reported registration is expected in near
Underwriters-Dillon, Read & Co. Inc., New York.

■

V/,:V

issue and sell,

some

•

total:

amount

;if , $50.1)00,000
25-year debentures-,.^ Houstoit Lighting & Power Co.
future of 750,000. shares of«common stock /(par ;• $4)>
/
;thri^'ear, viz.: $25,000,000 in June and $25,000,000 in the / Feb. /13 it was reported company may offer late this
Price—To Le supplied by amendmentProceeds-—To
•.Fall.
Umlerwrtterw To be determined by competitive£' ^all approximately $25,000,000 first mortgage bonds, but
;
selling stockholders./Underwriters — The First Boston
/bidding. ' Probable bidders: Halsey, Stuart & Co^ IncV;; ^exact amount, timing,.etc. has not yet been determine^
ZCdrp.,, New York; Dean Witter & Cn^_-San Francisco.
\VM.e;AYeld.^c Co. .ancL Paine. Webber, "J^eksoA and
Underwriter—-To^be deternttrrjeri by cqmpetittye bidding.
/Calif.; and Carl M. Loeb, Rhoades & Co., New York.
*
-Curtis (jointiy)/Morgan/ Stanley
Co. and the: First;/ Probable bidders: Halsey, Stuart & Co.'Inc.; Equitable
Long Island Lighting Co.
Boston Corp. (jointly); Bids—To be received up to 11:30
Securities Corp.;
Lehman Brothers, EastmanDillon,' s
April 16 it was announced eompany plans to sell later
a.m. ( EDT) - on June 11.
Union Securities & -Co. and Salomon Bros; & Hutzler
■; V-:
■: /".u this year $28,000,000 of first mortgage bonds, series J.
(jointly); Lazard Freres & Co. and Blyth & Co;, Inc.
Proceeds—To refund $12,000,000 of series C bonds due
J -Detroit Edison Coy
.-V*".'-''/ •//"--'
(jointly);.Kidder,-Peabody & Co.
March 18* it-was announced company plans to sell in
Jan. .1, 1958 and,for construction program. Underwriter
1937 about $60,000,000 of-new securities. Proceeds^—For
;a
Houston Texas Gas & Oil Corp.
—To be determined by competitive bidding. Probable
a

•.

coastruetioh program (estimated to.cost about

$89^000,000

this

year>;. Underwriter—For bonds, to be determined
competitive bidding.
Probable bidders: • The First
Boston Corp. and Halsey, Stuart & Co. Inc. (jointly);

March

reported that company plans to offer
publicly $22,405,556 of 5 V2% interim notes (convertible
into preferred stock/ and $18,241,944 of common stock
in units.

was

Part of

common

stock will

ent stockholders

June/xv*

Francisco and New York.

Mont

Halsey, Stuart & Co. Inc.; The First Boston
Corp. and Blyth & Co. Inc. (jointly); W. C. Langley &

Co."Smith, Barney & Co.

be offered to pres¬
*

Coffin & Burr, Inc., and Spencer Trask & Co. (jointly).
Rids t— Now -expected to be received in latter part of

-v.,./.:-V;

bidders:

struction program.

•

Broadcasting Corp.

Illinois

Central

Proceeds—For con-,
Underwriter—Blyth & Co., Inc., San
$10

RR.

per

share.

■

v:1

Louisville & Nashville RR.

Bids

are

expected~te be received by the company some

•time in the FallJbr the puivhase.from

it of $14,400,000
equipment trust certificates/-. Probable bidders: Halsey,

(4/25)

Stuart & Co. Inc.; Salomon Bros. & Hutzler.
' /
received-by this company up to noon (CST)
Metropolitan Edison Co. >:
on April 25 for the purchase from it of $9,600,000 equip¬
^ offer its stockholders the right to subscribe for hbout
;/ Jan. 29 it was reported that company is now considering
ment trust certificates due semi-annually from Nov. 1,
'30(^000 shares of common stock on the basis of one-new
the ^sale / of - $19,000,000
first
mortgage
bonds 'due
1957 to May 1, .1972.
'*share fo reach three shares held. Proceeds-—To help pay
Probable bidders: HalseY, Stuart
1987.
Underwriter
To be determined
by competi¬
& Co. Inc.; Salomon Bros; & Hutzler.
-for cost of acquisition of radio station WNEW.-. Imdertive bidding.
Probable bidders: Halsey, Stuart & Co,.
writers—Kuhn, Loeb & Co. and Carl M. Loeb, Rhoades
;• Illinois Power Co.
Inc.; White, Weld & Co.; Blyth & Co., Inc.; Kidder, Pea¬
/'& Co., both of New York.
'
March 29 stockholders approved an increase in the au¬
/f *
body
Co..and Drexel & Co. (jointly);.The First Boston
■*t\ Eastern Gas & Fuel Associates
thorized serial preferred stock (par $50/ from 1,000,000
^ W
Corp.
shares to 1,600,000 shares.. Underwriters—Merrill Lynch,
April 3 it was announced company may need additional
it Mexico Refractories Co.
capital of between $25,000,000 and $35,000,000 during the
Pierce, Fenner & Beane and The First Boston Corp.,
April 15 it was reported sale of 30,000 shares of common
next two years.
both of New York.
Underwriter—For any bonds to be destock is expected early in May. Underwriter—Reinholdt
.termined
by competitive- bidding.. Probable bidders:
• Indiana Harbor Belt RR.
(6/5)
& Gardner, St. Louis, Mo.
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; White/Weld
Bids are tentatively expected to be received by this
Michigan Consolidated Gas Co.
& Co., and Kidder, Peabody & Co. (jointly).
company on June 5 for the purchase from it of*$8,125,000
March 4 it was reported company plans to issue and
V- Empire District Electric Co.,
first mortgage bonds due! 1982.
'/
Proceeds^-to "refund * sell between
<f *'
$25,000,000 and $30,000,000 of * first mort¬
"March 14, DyC. McKee, President; announced company
bonds due July 1, 1957. Underwriter—To be determined
gage bonds before Summer.
Proceeds—To repay bank
plans.,to issue and sell some additional bonds this, year
by competitive bidding:-Probable bidders: Halsey, Stuart
loans and for construction program.
Underwriter—-To
-Proceeds—r-To-retire bank/loans ($2,200,000 at Dtec. 31/"
& Co. Inc.; Salomon Bros. & Hutzler.
■
*
be determined by competitive bidding.
Probable bid¬
Vl9o6).and for-construction program^Underwriter4—Pre-Z '"VC
Indianapolis Power-& Light-Co. "
*/:v T"f , ders. Halsey, Stuart & Co. Inc./ Smith, Barney & Co.
?; vious bond financing was done
and Blyth & Co., Inc. (jointly); White, Weld & Co. and
H. T. Pbichard, President, announced that pres/
Florida Power Corp. (5/14)
Lehman Brothers (jointly).
..."
'
^
ent plans contemplate an issue of $6,000,000 of preferred
March 29 it was announced that company plans to offer
stock some-time- in 1957 if market conditions make it
^Minneapolis & St. Louis Ry. (4/23)
to its stockholders about May 14, next, 255,813 shares of
feasible, and an issue of $8,000,000 in bonds in 5958. Tem¬
Bids will be received by the company up to noon (CST)
additional common stock on a l-for-10 basis;, ri^bts to
porary bank loans are available and probably will be
April 23 for the purchase from it of $2,700,000 equip¬
expire June 3. Price
To be announced on M^y 13.,.- utilized, during at least part of 1957. Additional secument trust certificates, series A dated
May 10, 1957,
i.i_•
Underwriters—Merrill Lynch, Pierce. Fenner & Beane
rities will need to be sold in 1959 and 1960, amounting
.to mature annually in l-to-15 years. Probable bidders:
and Kidder, Peabody & Co., both of'New York.
to approximately $14,000,000. Proceeds—To repay bank
V .
"Halsey,^-Stuart'& Co. Inc.; Salomon Bros. & Hutzler.
loans and for mew construction. * Underwriter—^May be
V
General Telephone Corp.
.* - .*
-•
^ Missouri Pacific RR. (5/8)
Lehman Brothers, Goldman, Sachs & Co. and The First
vMarch 18 it was announced companj plans to issu^ and
Bids are expected to be received by the company on
Boston Corp., who underwrote last equity financing.
sell, probably in June, first to common- stockholders,
^May 8 for the purchase from it of $4,200,000 equipment
International Business Machines Corp.' (5 21)
/$45,000,000 of convertible debentures. Underwriters .-rtrust certificates.
Probable bidders:
Halsey, Stuart &
Feb. 26 it was announced company plans to offer its
Paine, Webber, Jackson & Curtis and Stone & Wfbster
Co. Inc.; Salomon Bros. & Hutzler.
Securities Corp., both of New York; and MitchumJiJones
stockholders of record
May 21,
1957, approximately
Continued on page 76
& Templeton of Los Angeles, Calif.
"
""V 'r •
$260,000,000 of additional capital stock, following pro¬
March 20

•

was

announced

intends

that corporation

Bids will be

—

prtvately;^/-*^*:^'^v..21/
„

.t-j

n—-

n/r—_m,

-r

t.-

—

„

•

(1876)

The Commercial and Financial Chronicle

Continued

Montana-Dakota
March

•

from page 75

plans to issue and

company

writer

Halsey, Stuart & Co. Inc.; Blyth & Co., Inc., Merrill
Lynch, Pierce, Fenner & Beane and Kidder, Peabody

New York

March 18 it
sell

•

(jointly); Blair & Co., Incorporated.

& Co.

Telephone Co.

one

class A and

chased and

Northern Ontario Natural Gas
March 1 it

reported

was

Co., Ltd.
plans to issue and sell

company

and

Northern Pacific

tentatively

are

received

this

•

$8,000,000 equipment trust certificates.
Halsey, Stuart & Co. Inc.; Salomon

and

bidders:

Probable

Power Co.

Northern States

(Minn.)

Proceeds-—For

Northern

States

Power

Peninsular

March 28 it

Southern Bell

Co.

stock

March

Harold

20,

bond sale

tentatively expected to be received by the com¬
pany some time in May for the purchase from it of $4,740,000 equipment trust certificates. Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.
Pepsi-Cola Mokan Bottlers,

ton
•

Southern

Jan.

California

Probable

■■■'■" vyy1 :rP/'•/
announced
common

Coke Co.

(6/10)

•,

was

negotiated basis.

Principal Retail Plazas
Feb.

tures

Canada, Ltd.

(Canada)

was

due

reported that early registration is exissue of $15,000,000 of subordinated deben¬

1982

and

Business

1,500,000

shares common stock to
be sold in units of $50 of
debentures and five shares of
stock.
Proceeds—For expansion and
working capital.

Operates shopping centers. Underwriter —■«/
Eastman Dillon, Union Securities &
Co., New York, for! '

about
"in

—

two-thirds of issue.

Balance

underwritten

March

reP°rted company plans the issue and sale
$30,000,000 first mortgage bonds. Proceeds—To
repay

bank loans and for new
construction.
be determined by
competitive bidding.

Underwriter—To
Probable bidders:

Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co. and
White, Weld & Co. (jointly); The First Boston
Corp.;
Blyth & Co., Inc. and Smith, Barney & Co.
(jointly);
Lehman Brothers; Harriman
Ripley & Co. Inc. Bids—
.

Expected to be received up to

'it Public Service
April 8 it
plating
in

May.

was

Co. of New

noon

(EDT)

May 20.

Mexico

announced that the company is contem¬
of additional common stock
early

the issuance

Underwriter—Allen & Co., New York.

bidding.

competitive

June 26.

Machine Tool

.j;,

.....

Co.

Wabash

Bids

RR.

■/.-/i'.y

'p:i

(5/28)

scheduled to be received by the
company up to noon (EDT) on May 28 for the purchase
from it of $6,615,000 equipment trust certificates. Prob¬
able
&

are

tentatively

bidders; Halsey,

Stuart & Co. Inc.; Salomon Bros*

Hutzler.

!,v',v!\:'.

Washington Gas Light Co.

/; /,

(5/16)

12, Everett J. Booth by, President, announced that
the company expects to raise about $8,000,000 through
the sale of first mortgage bonds in the Spring of 1957.
Proceeds—To repay bank loans and for construction pro¬
gram.
Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Blair & Co. Incorporated and Baxter & Co. (jointly);
Merrill Lynch, Pierce, Fenner & Beane and; Stone &
Webster Securities Corp. (jointly); Kidder, Peabody &
Co.; Equitable Securities Corp.; Eastman Dillon. Union
Securities & Co.; The First Boston Corp.
Bids—Ex¬
pected to be received on May 16.
/

Washington Water Power Co.

bank loans and for

was
reported company plans to issue and ^
217,000 additional shares of common stock in
(probably first to common stockholders,)/? Dealer-

1957

Manager—Goldman, Sachs & Co., New York. "
Texas

Jan.

(5/20)

Was

sell about

•

i.;r

'••//_,-•

April 1, K. M. Robinson, President, stated that the com¬
pany will probaoly market an issue of first mortgage
& Co.
•;/;/ *
'
'/P/P' P p '
p
bonds by June 30.
Proceeds — To carry out 1,957 ex¬
Tampa Electric Co. /
pansion program. Underwriter—To be determined by
March 18 it was reported
company plans to issue and /■
competitive bidding. Probable bidders:, Halsey, Stuart
sell about $18,000,000 of first
mortgage bonds.f Proceeds '; & Co. Inc.; Eastman, Dillon, Union Eecurities & Co.; ;and
—To repay bank loans and for new construction.
Un¬
Lehman Brothers (jointly); Blyth & Co., Inc.;-Smith,
derwriter—To be determined by competitive bidding.
t
Barney & Co., and White, Weld & Co. (jointly); W. C.
Probable bidders: Halsey, Stuart & Co. Inc.; Goldman,
Langley & Co. and The First Boston Corp. (jointly)./
Sachs & Co.; Stone & Webster Securities
Corp.; Kuhn,
West Penn Power Co. (7/30)
Loeb & Co. and A. C. Allyn & Co. Inc.
(jointly); Mer¬
rill Lynch, Pierce, Fenner & Beane.
Dec. 27 it was announced company plans to. issue some
Bids—Expected to
be received some time in July.
additional senior securities,. probably about $20,000,000
of first mortgage bonds due 1987. Proceeds —
Jo repay
Tampa Electric Co.

Canada.
Public Service Co. of
Colorado

determined

it was reported company may do some equity
financing in May (first to stockholders). Underwriters—
Lynch, Pierce, Fenner & Beane and Dean Witter

reported company plans offering to com¬
stockholders of 225,976 shares of additional com¬
mon stock
(par $9.50) about June 10 on a l-for-5 basis;
rights to expire about July 1. Underwriting—To be on a

pected of

Weld
.

Merrill

mon

(6/26)

March 11

Dealer-Managers — Drexel & Co., Philadelphia,
Pa., and Morgan Stanley & Co., New York, N. Y. Offer¬
ing—Expected in June.
&

Sundstrand

gram.

Portland Gas

•/•//.O

announced company,-in

was

Dec.

Co.

bidders:

to be received

company plans to offer about
stock to its stockholders about

the middle of the year on a basis of one new
share for
each 20 shares held.
Proceeds — For construction pro¬

March 26 it

•'

additiop to pro¬
posal to raise late this Spring $22,000,000 through the
sale of additional common stock, plans also to sell in
the Fall $20,000,000 of debt securities. Probable bidders*
for bonds may include: Halsey, Stuart & Co.
Inc^; Kuhn*
Loeb;& Co. and American Securities Corp.»(jointly);
Salomon Brbs."& Hutzler; Eastman Dillon, Union Secu¬
rities & Co.; Stone & Webster Securities Corp.; White,

Halsey, Stuart & Co. Inc.; Blyth &
Co., Inc. and Merrill Lynch, Pierce, Fenner & Beane
(jointly); White, Weld & Co. and Eastman Dillon, Union
Securities & Co. (jointly).
Bids—Tentatively expected

—

was

March 8 it

that

was announced company
plans to issue and
$35,000,000 of first mortgage bonds. Proceeds
repay bank loans and for new construction.
Un¬

derwriter—To

—

14 it

Gas

1,000,000 shares of common stock (par $8). Proceeds—.
$22,000,^00 for new construction/ Underwriters—
by competitive bidding. Probable bid=/
ders: Stone & Webster Securities Corp.; Merrill Lynch*
Pierce, Fenner & Beane. -Bids—Tentatively expected oil
June
1
^^:

Virginia Electric & Power Co.

—To

share. Proceeds—To acquire and operate select¬
Pepsi-Cola plants in the Midwest. Office
Coffey ville, Kansas. Underwriter
G. F. Church & Co., St.

Philadelphia Electric Co.

(6/4)

plans to issue and sell

company

sell about

per

600,000 shares of

announced

Corp. and Dean Witter & Co. (jointly).

Feb.

;

Quinton, President,

offer

To be determined

and sale of $70,-

Co.

reported

was

Co. (2) For any preferred stock: May be The First Bos-;

Inc.

(10/1)

also announced company plans to

About

total of

March 20 it was announced
company plans to issue and
sell 60,000 shares of common stock
(par 50 cents). Price

•

(6/18)

was

Virginia Electric & Power Co.

$70,006,000. may be raised in 1957.)
Underwriters—(1) For any bonds, to be determined by
competitive bidding. Probable bidders may include: Hal¬
sey, Stuart & Co. Inc.; Blyth & Co. Inc.; The First Boston A
Corp. and Dean Witter & Co. (jointly); Kuhn, Loeb &

are

Oct. 1.

public 400,000

the

Feb. 15 it

than $180,000;000 of new money in 1957 and 1958,
to the $37,500,000 bond issue of February,

Light Co.

writer—To be determined by

addition

1957.

Power &

shares of common stocky Under¬
competitive bidding. Prob-j
able bidder^: Kidder, Peabody & Co. and Merrill Lynch*
Pierce, Fenner & Beane ' (jointly); /Eastman Dillon,
Union Securities & Co. and Smith, Barney & Co. (joint¬
ly); Lehman Brothers; Blyth & Co., Inc. Bids—Tenta¬
tively scheduled to be received on Oct. 1.
to

the balance of this year ther company's present in¬
tention is to issue additional bonds and probably a pre- r
ferred stock.
He added that the company will require

l-for-6 basis.

Utah

March 12 it

for

—

Louis, Mo.

Edison

company

company on

Telephone & Telegraph Co.

California

announced

was

scheduled to be received

Southern

(10/1)

Inc.; The? First Boston Corp, and Blyth & Co., Inc:
(jointly); Salomon Bros.'& Hutzler; Eastman Dillon*
Union Securities & Co. and Smith, Barney & Co. (joint¬
ly); Lehman Brothers and Bear, Stearns & Co. (jointly);
White, Weld & Co. and Stone & Webster Securities Corp.
(jointly); Kidder, Peabody & Co. Bids — Tentatively

Inc.; Morgan Stanley & Co. Bids—Expected
to be received on June 18.
Registration—Planned lor
latter part of May.
:
•/.'"/■•/ '/ V--1

Proceeds—Together with
(probably privately), to
finance new construction. Underwriters
Morgan Stan¬
ley & Co., and Coggeshall & Hicks, both of New York
City.
'
'///■ W
Pennsylvania RR.
'l-ji
iP P
Bids

Light Co.

plans to issue add
bonds due l987:
for construction
program.
Underwriter—To be determined by competi¬
tive bidding./Probable bidders; Halsey, Stuart. & Co,

Stuart & Co.

Telephone Co.

(5/7)

part
air¬
-#;/////; 'p'p'^pp' ■
*.

—

000,000 of 29-year debentures due June 1, 1986. Proceeds
—For construction program. Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Halsey,

was

funds from proposed

the

Feb. 25 directors authorized the issue

company

announced company plans to offer to its
stockholders 189,844 additional shares of com¬

common
mon

reported

was

RR.

Power &

12 it

March

(Wis.)
(6/4)j
plans to issue and
sell $10,000,000 of first mortgage bonds dqe 1987, Pro¬
ceeds—For construction program.
Underwriter—To be
determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Merrill Lyrtch, Pierce, Fenner
& Beane; Lehman Brothers and Riter & Co. (jointly);
Blyth & Co., Inc.; The First Boston Corp.; Kidder, Pea¬
body & Co. and White, Weld & Co. (jointly). Bids—
Expected to be received on June 4.
March

Line

will

sell about $15,000,000 of first mortgage
Proceeds
To repay bank loans and

new

Jan. 14 it was reported company plans to issue and sell
$10,000,000 of first mortgage bonds. Underwriter—To be
determined by competitive bidding. Probable bidders;
Halsey, Stuart & Co. Inc.; The First Boston Corp. and
Lehman Brothers
(jointly); Kidder, Peabody & Co.;
Eastman Dillon,. Union Securities & Co. /Bids—Not ex¬
pected to be received until next Fall.
\

{jointly); Equitable Securities Corp.; Kuhn, Loeb & Co.;
•

Air

The new securities

stock.

of 74.2% of the TWA outstanding comp
purchase any securities not subscribed

owner

Underwriter—None.

Utah

construction program.
Underwriter—To
by competitive bidding. Probable bidders:

Ripley & Co. Inc.

Seaboard

April 25 will
of ap¬
debenr

by minority stockholders.' Proceeds—To pay in
covering 33 Lockheed

craft.

(5/23)

common

the conditional sales contract

South Carolina Electric & Gas Co.

Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce, Fenner
and Beane, Kidder, Peabody & Co. and White, Weld &
Co. (jointly); Lehman Brothers and Riter & Co. (joint¬
ly); The First Boston Corp. and Blyth & Co., Inc.
Harriman

for

;

plans to issue and
sell in the Fall of 1957 $15,000,000 first mortgage bonds.
be determined

stock

May 7 for the
purchase from it of $4,650,000 equipment tfust certficates.
Probable
bidders:
Halsey Stuart & Co. Inc.;
Salomon Bros. & Hutzler.7
••
^

reported company

was

the underwriters, and the

Bids will be received by

Bros. & Hutzler.

March

Co.,

550,000 class

Stuart & Co. Inc.; Salomon Bros. & Hutzler.

May 16 for the purchase from it of between

company on

$6,000,000

expected

three

Inc.

probably be offered at the rate of $100 of notes op
for each nine shares of stock held.
Hughes

mon

Bids are expected to be received by this company on
May 23 for the purchase from it of $2,550,000 equipment
trust certificates, due semi-annually, from July 1, 1957,
to Jan.
1, 1972, inclusive.
Probable bidders:
Halsey,

(5/16)

Ry.

exercised by

Reading Co.

Bear,

May, 1957.

Bids

each

A total of

Airlines,

announced stockholders on

Tool

derwriters—Kuhn, Loeb & Co., New York; and Johnson,
Lane, Space & Co., Inc., Savannah, Ga.

Stearns & * Co., both of New York,
head group in United States.
Offering—Expected in
Co.

stock for

Financial

debentures

thereby offered to the public. Proceeds—
For working capital and other corporate purposes. Un¬

$10,500,000, together with private financing, to be used
for new construction.
Underwriters — Hemphill, Noyes
&

stock held.

was

tures convertible into

stock created

Proceeds—About

notes and common stock in units.

class

Co., New York.
New York.

approving an offering to stockholders
proximately $37,000,000 subordinated notes or f
vote

common shares is currently outstanding.
The sub¬
scription rights of the principal stockholders, constitut¬
ing approximately two-thirds of the total, would be pur¬

Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.
—Scheduled to be received on May 21.

some

April 2 it

will

common

Haupt

Ira

World

Trans

Under¬

A and

Probable bidders:
Bids

by competitive bidding.

loans.

bank

Radiation, Inc.

$70,000,000 of refunding mortgage bonds. Proceeds
Underwriter—To be

—To retire short-term borrowings.

determined

retire

April 17, Homer R. Denius, President, announced that
about 183,333 shares of class A stock is soon expected to
be offered for subscription by stockholders on the basis

(5/21)

announced company plans to issue and

was

Proceeds—To

May be

—

through

Adviser—Salomon Bros. & Hutzler,

determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; The First
Boston Corp.
Bids—To be received on June 25. /

Probable bidders:

bidding.

by competitive

bonds.

gage

$10,000,000 of first mortgage bonds or convertible
debentures before June 30, 1957.
Underwritei]—To be
sell

determined

tures

(6 25)

/April 12,. Frank McLaughlin, President, announced that
company plans to sell an issue of $20,000,000 first mort¬

Utilities Co.

reported

was

Puget Sound Power & Light Co.

1957

Thursday, April 18,

...

was

announced

company

expects to sell

;

new

securities during 1957 to obtain capital for its continuing

plant expansion.

Underwriter

determined

—

For any

bonds, to be
Probable bidders:

by competitive bidding.
Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co. and
Merrill Lynch, Pierce, Fenner & Beane
(jointly); Hemp¬
hill, Noyes & Co. and Drexel & Co. (jointly): The First
Boston

Corp.; Eastman Dillon, Union Securities & Co.;
Kuhn, Loeb & Co., Blyth & Co., Inc. and Lehman Bro¬
thers (jointly); Harriman Ripley & Co. Inc. and Stone
&

Webster

Securities Corp.

TMT Trailer

March,-20
public

Ferry,

Inc.

Underwriter

—

rities

Coi; Kidder, Peabody & Co. and White, Weld

Co,

(jointly); Lehman Brothers; The First Boston
Corp.; W. C. Langley & Co.; Harriman Bipley &. Co. Inc.
Bids—Tentatively scheduled for July 30/
Wisconsin Telephone Co.

April 3 it

was

announced

(7/9)

company

;

V ;

plans to issue and sell

$30,000,000 of 35-year debentures due 1992. Proceeds—•
For construction program.
Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Halsey,
Stuart

Corp.
New

& Co.; Morgan Stanley & Co.; The First Boston
Bids—Expected to be received at 195 Broadway,

York, N. Y.,

July 9.

it Yale & Towne Manufacturing Co.
i:

;

(

reported corporation is considering
of about $4,000,000 convertible deben¬

was

iinancing

(jointly);- f>

construction.

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Eastman Dillon, Union Secu¬
&

Electric Service Co.

new

be determined

April 11, Gilbert W. Chapman, President, stated that tha
company

plans

some

Underwrite)?

long-term financing.

—Morgan Stanley & Co., New York.

—

•

(1877)

Number 5630

Volume 185

.. .

Financial Chronicle

The Commercial and

♦, •••.»
*

INVESTMENT

tl 4

> -f

.•

By ROBERT R. RICH

BOOM IN GAS

Net

of 100 Wall Street

natural gas bill sponsored by Rep.

he believes the new

Oren Har¬

would not only pass the Senate this year Representatives, but would also be signed by ;

PROSPECTUS TO
DEALER OR

YOUR INVESTMENT

Victor

■

.V:7/7^77:7; ,7?'77'7'''■ ''77
Troendle, the specialist, is President of volbniai 0is-

7' $70,000,000

RESEARCH CORPORATION

do so this time.

In the event

DEVELOPMENT

FUND, INC.

Income

H per share

:\t...

Payable

">>,'■

r ,j

his

Oil & Gas.
"number

Investment

'-."iffv
t

Dividend

would not.

investment

The latter, he said, is Colonial Management Associates'
choice" in which Gas Industries Fund has been buy¬

first quarter.

actively exploring 1.500,000 acres

April 29, 1957

The Colorado company is now
' 5 v

in Alaska.

-rrr-r

record
:Apiu i, m?
::

-•/ to stockholders of

*ri

■-'f-\i

through ;;7'

of record

INVESTORS
mutual fund investing
in common stocks. For copy
a

facts

1957; was $276,028.87
and taxes, an in¬
the fund's
first year of operation, said Ray¬
mond T. Smith, President.
More
than the value of net earnings,
said Mr., Smith, is the fact that the
fund now owns a cross section of
what management regards as the

Fund, mail

about the

after

expenses

crease

^ this coupon today. ••;
Name..

Address..

of $18,286.02 over

most desirable

life company stocks

ii.i

AND

LONG

COMPANY, INC.

TnnCqittTq57Vwas $T4 7^oer

a«p'omnared'with

during the

active economy

ahead."'1*1 He

told

share¬

caution and keeping alert to pos-

sible warnings of economic read-

primarily bonds."

31, 1956.

Common

During the quarter, shares out¬
standing

rose

new

high of

stock

reduced to 77.3%

The fund's largest holdings are
currently iri oil and gas, instrumentation and metals stocks, in
that order. Eleven of the compa-

$15.57 per share

of the year and 83.6%

on Hoit,

31, 1956.,
New common
positions vwere established
during the quarter through the
purchase of 30,000 shares of Amer¬
ican
&
Foreign
Power,
18,000

er.

Shareholders

timely

suggestion

Harris, Upham & Go.
(Special to The Financial

DECIDING

record

Jan

1%.

Harris, Upham & Co., 135 South
La Salle Street. Mr. Anderson was

1956

decrease of

This decrease is after althe initial cash divi-

of this Mutual Fund

investment dealer

sented in the

investment portfolio. 333.

announcement

Delaware Income Fund
~

The

whose

ELECTRONICS

SST*

FUND, INC.

new

„

Delaware Income Fund,

were

first

Television Shores

Establish*80

Management Corp.

dealers

With Avery L.
(Special to The Financial

680

BUS

---

115 Broadway, New York 6, N.Y. |

advisor to
a

Name

| Address

^City-State

——

pany

Eppler

—

formerly asso¬
Rollins & Com¬

Stetson was

Mr.

ciated with Blair

•

and C. F. Childs &

sales in the

Chronicle)

Stembridge who is

Analysts' Society.
Mr.

With H. L. Jamieson Co.
'

(Special to The Financial
,

Chronicle)

Carter is now with H.

Jamieson Co.,

Inc., Russ Building.

Stetson

years

dent of
New

tSAN FRANCISCO, Calif.—Wil¬
liam D.

Company.

in security
Boston area, and is a
the Boston Security

Recently he has been
member

*■-

Inc.,
in 1933.

Group Securities,

mutual fund established

1839 Broadway.

fund

A lnVeSselected°or P°

Calif.—Frank
G. Ludwig has become connected
with Avery L. Eppler Company,

rroCK

of Dis-

whose main

Wall Street, New
York
Distributors GrouPi inc. is
underwriter and investment
at

office

REDWOOD CITY,

Chicago 3, III

made by Her-

^ributors Group, Inc.

offered

publicly on March 18
reports
gross sales of more than $1,000,900
in its 10 selling days ended March

•'i"
—

was

bert R. Anderson, President

31, last. Daily sales averaging up¬
wards of $100,000 totaled $1,094,106 at the close of the month.

with

associated

become

has

son

shares of Continental

An 8% increase in shareholders. Baking, and 5,000 shares of San
during the first quarter, of 1957 Diego Gas & Electric. Holdings

TELEVISION-

Chronicle)

CHICAGO, 111.—John A. Ander¬

12,000 shares of Pioneer Natural

booklet-prospectus and

135 S. La Salle St.,

is
Se¬

York

New

J. A. Anderson With

& Robbins,

8,000

the

curity Dealers Association.

More important increases were

Gas,

Company.

Rose

President

stock

Broadway,

115

Co.,

"ounces that Eugene G Statter
has become associated with them
» t{*elrwas formerly a partner in
tradrng deiiartraent.,;Mr.
Statter

of Broad Street

and 3,300 shares of Montana Pow-

;

^.^;:;*,-7:^''New York City, members..of the
holdings were New ^or]F
ExclJ^nSe, an-

March

Eugene G. Statter

Mabon

•

Investing^ net assets on March 31,
as
compared with 80.0% at the

1,283,211; Asset valud per share
was $12.71 on March 31 compared;
with $12.73 at the 1956 year-end. start

"r'H'-l

lowance for

get the

your

,v-.;

was reported by the four mutual were eliminated by the sale of formerly President, Plotz & Co.,
funds sponsored by Axe Securi- gate-Palmolive, while decreases in Inc.
shares of Allied Stores and Colties Corporation,
holdings included sale of 12,000
dend of 18^ cents per share paid
Shareholders of the funds—Axe- shares of Union Pacific, 10,000 W. B. Stetson Joins
March 1, 1956.
Houghton Fund A, fund B arid shares of Seaboard Air Line, 6,000
Invested assets on Jan. 31, 1957, Stock Fund and Axe Science & shares of General Electric, 5,800
Distributors Group
amounted to $17,337,096, equal to Electronics Corporation
num.- shares of Union Bag-Camp Paper, r
Warren B. Stetson of Duxbury,
97.8% of total assets, an increase bered 75,471 on March 31 as com- 3,400 shares of International Paper
Mass., has joined Distributors
of 21.5% over the previous year, pared with 70,032 on Dec. 31, 1956. and^LBOO"shares "ofTmerada"pe
Group, Inc. as Regional Manager
A total of 33 companies are repre- First quarter sales totalled $6,797,- troleum.
for the New England States. This

from

holders, however; that "there has
/been no lessening in the need for

and

ceived

BEFORE

investments,

Randolph foresaw prospects

months

Diversified Growth Stock Fund,

payment of the $1.03 distribu-

Mr.

Assets Rise

$119,126.93, equal to drugs.
\
10 cents per share,-was realized
Axe
capital gains on investments.
Net asset value of the fund on

Elizobeth 3, N. J.

investment

purchased at realistic prices.
njes whose securities are held in
Of this total, $156,901.94, equal the"fund are engaged in the field a nnn plounn
shares
McKesson nil a /inn
•
cgaiiit
of nuclear energy, nine in elec- 4,900 shares of Skelly Oil, 4,400
to
13
cents per share, resulted
tronics and nine iri chemicals and shares of Delaware Power & Light
from dividends and interest re¬

iH333HEEH3
HUGH W.

their investment by taking shares

March f 5. Last year the

ing Jan. 31,'

prospectus-booklet of

quarter of 1956 for

shareholders who maintained

Inc. reports net assets of $16,304,- justments" and that the corpora227 at March 31, end of the first tion "continued during the first
fund paid an initial cash dividend quarter of, the fiscal year.
This quarter to invest new money rerepresents an increase of 6.75% ceived from the sale of shares in :
of 18 Vz cents per share.
over the $15,273,789 figure on Dec.
fixed-income senior securities,
Income for the fiscal year end¬

FUNDAMENTAL
...

Indeclared a cash
dividend of. 23 cents per share,
payable March 28 to shareholders

Willi Mahai * Ca.

good increase in dividend income

"for

vestors, Inc., have

Eugene G. Staffer

•tion in December 1956 from real¬

Growth Fund

Directors of Life Insurance

•v

be ' held

will

meeting

The

Promptly at 4 p.m. on Wednesday,
April 24 in the uptown office of
Harris,. Upham & Co., , 99 Park
Avenue, 2nd floor,, ...
j-..,./

record amount for the quar¬

from the first

Diversified

Investors'Reports

YOUR share
of American business }
can own

iFund> Inc-.'Hv'v

ter, comparing with 19 cents for
the comparable 1956 period. This
meant, the Chairman' stated, a

ised gain on

Life Insurance
You

one

ing heavily in the

organization indicated that

Jr.

•*2! ? V ?
\ U .
.
the Atomic Development Mutual

from

corporation, now in its 28th
year,
paid its
109 consecutive
quarterly dividend on March 31.
The payment of 20 cents per share

I. Steers,

...

The

was a

MUTUAL

From

not only
would producers like Phillips Petroleum, Humble Oil and Cities
Service benefit greatly, but also smaller companies like Colorado

Quarterly

*■>"*

increased

holders

Newton

than tll6 PTO—

2,758, to 4,490 for a gain of 63%,
the'Chairman reported.'
'v "

■'
the bill becomes law, Mr. Troendle said the re¬

-L
iPa^;e in the
a
c ^5°"
gram rather

prices in general, as meas-<

Plan

'seen by

in the House and Senate

ernJJtilities, which had opposed, the earlier Hands hill,

ATOMIC

spocifie , secufltiesto particand how
best

by various market indexes."
1 9
In the 12 mnntVic anfloJ Mnr/ili
months ended March

It was also indicated that North¬

approved by them.

and had been

emphasize

$21.37,

the

IVio

will

Steers,

31, the number of Accumulation

indicated the present bill had beeri

Administration officials and by leaders

DIVIDEND NOTICE

ured

Troendle

little

stock

that natural gas producers and gatherers who sell whole¬
to interstate lines for resale be exempt from Federal utility

Mr.

En-

erg y.

quarter. This
below the $21.85 at

end

companies

Atomic

$89,611,127 on March 31,

31, but, Mr. Randolph said,
"tFmi
'the. rlnnlino Ttrne 1 Ann +Kr»vi < 4-'AV»
decline was less than for

bill, vetoed early last year by

regulations.

ous

engaged in

com¬

Dec.

poses

sale

the

was

; <

New York 5, N. Y.

figure

Per share asset value was

industry. - «<- • •*
the President,-pro¬

invested in the oil and gas

The Harris

The

stocks of vari¬

1956.

Colonial Fund, Bond Iny estment Trust
Industries Fund, which now has about"

Gas

and

America

NATIONAL SECURITIES &
*

and with

tributors*, Inc., sponsors of

ton T Steers, President, Atomic
Development Mutual Fund, Inc.,
will address
L ! '
' • *'"
the membership on the

Street. In$95,-

were

pared with $94,518,508 on Dec. 31

•'""the President.. ;'7

FREE INFORMATION

120 Broadway,

House of

the

and

WRITE FOR

Corporation

President.

and

ris, Arkansas Democrat,

Customers'

'Brokers has announced that New-

{242,935 at March 31, a new quarter-end high for the diversified
mutual fund, according to the firstquarter statement by Francis F.
Randolph, Chairman of the Board

industry told a special meeting
securities dealers and mutual fund dealers that

Association

..The

assets of, Broad

'' vesting

v't

INDUSTRY

leading specialist in the gas

Established 1930

Hear Newton Steers

Assets Reach
New Record

FUND

FOLDER AND

Customers' Brokers to

Broad Street

unds

Mutual

A MUTUAL

tors

succeeds

"Rex"

retiring after

Resident Vice-Presi¬

the
Distribu¬
office in Boston is at

Distributors Group in

England area. The
Group

50 Congress

Street.

(1878)

The Commercial and Financial
Chronicle

Continued

from first

page

system has lost its flexibility. It is
simple matter to start public

production, about the

works

Notes

Functionalrfinance

And Modern

Money Control

out is accomplished by

the

taxes* should

be
raised or expenditures cut and the
excess revenues "hoarded."
That,
upturn,

mechanistic

concept

teria,

the
simple fact
of
life,
namely, that taxes are being shift-*
ed.
Raising them may have the
opposite of the desired deflation-

086.4

million

1954,

10%

levies

1956.

would

that, in the offi(purchase) tax was

luxuries

but

when

it fell
goods

unnecessary

verted

levies

High

before

Europe had become

the

present, levies in most
have
limit

reached

it,

taxes

credit

mensions

actually

over-

costs.

to
of

and

It is true that

taxation

tionary
has

has

an.

effect.

overloaded,

reduction* in

restraints

do,

and

But

all

foster

They

Europe.

the

the creation of productive
capacity" (The Financial Times, Lon-

discriminatory

mean

cession'

tives

due- to

"Real

crippling

investment

of incen¬

taxation.

being de¬
stroyed
before
conception,
not
strangled at birth.* Together with
price

inflation, taxation and in¬
redistribution are at the root

come

the

process

capital erosion
Europe. The erosion

postwar

,♦

deflation

Deficits
It is

one

are

cut.

offer

rich scope for action against inflation;- Reducing them in order
to balance an unbalanced

budget
first-essential of a

inating
grown

might revolutionize the

pattern.

In fact, governmental

penditures
a

Elim-

subsidiaries which have
into the pattern
of the

economy

action.

cannot

ex¬

compressed

hurry without devastating re¬
Fiscal policy lacks

percussions.
the

swiftness

characteristic

and
of

adaptability

monetary

meas-

ures proper.
Nor has budget-balgrowth, ancing the shock effect
if it is
productivity being
imposed as a temporary detroubles,
and -vice
only, with the intent to dis¬

card

During

Prosperity

budget in the boom by
expenditures and raising

cutting
taxes.

swallow
is

democracies

unpleasant medicine,
quite another matter. Nor does

the

automatic

increase

reve¬

nues

make

the prosperity take care
ever-growing pressure for

the

subsidies.

Market

Europe's

boom,

Macrae, The London Capital
(1955). For an incisive
analysis

«( the adverse effects of
the British

fiscal

first

sign

No Criteria and

textbooks that the ideal
fiscal policy requires over-balanc¬

the

re¬

cession.

thing to preach in Key-

nesian

ing

is' still

the

experience

with

planning,

political

sometimes

argued, motiviation than

ment in its
ment

are

If the Govern¬

control

merely

market

was

procedure

and

select

pay

best, then it might try to work

investment

that

will

out rates of return on the various

projects

submitted

and

countries.

fThe

The
ments

lines

the bureauc¬

are

French bureaucracy is,
supposed¬
ly, the most inventive one.)

invest¬

the

of .most

imitate

over

wants

racies

idea
is

directing

invest¬

outgrowth of the in¬
fluence which Soviet
planning has
exerted on the Western minds. It

is, of course,

an essential appur¬
tenance of collectivism.
Apparent¬

use

rates of return could be

Forecasting

realize
and

Keynesian

finance,

idea

func¬

contra-cyclical
fiscal and
monetary policies, is a
fallacy. -They produce an excess
of purchasing power at the
bottom
the

cycle that makes the

ical measures

as to risk
precipitat¬
depression. Undue expansion

the

turn

the

from

1929

would

British

credit volume

—

with

regard

down¬

for

the
—

catastrophe;

the

authority
basis

difficult to
ties

select

tne

public interest or of
priorities. It is extremely

social

plan¬

tries

the

ol'

how social

see

social

rates

priori¬

return

can

used

for

guidance

can

of Professor

Ely Devon;

•

"We would not think of exam¬
ining the entrails of a chicken, of

consulting
a

diviner

the
is

oracle,

to find

worse

the

States

not.

grubbing

measured

asking

whether the

in the United

recession

going to get

much

or of

out

Yet

about

statistically. ' How among national income and ex¬
does one compare
statistically the penditure figures, of the statistical
quences
(than
those
of
their
social rate of return from buildSwedish colleagues) if the errors
model-building of the econometrizing more houses with the social cians and the desperate search for
had not on several occasions
even

unfortunate

conse¬

prov¬

rate

return

from more invest¬ trend signs in the latest
cancelled one another
statistics,
ment on road
out."
building and repair? bear striking similarities to primi¬
(D. H* Robertson, in The
Or compare the social rate of. re- tive
magic."
Business* Cycle in
the
Postwar

identially

World, ed. E. Lundburg, London,
1955.)
The

Quest

Rational

for

criteria

questions

claim

little

Where

how should

any

The

nor

the

there

are

convey.

all

essential

tion.

are

factors

to the infinite

components

aggregates

data

about

the

entering

into ..such
national
income,

as*

volume of production,
savings and
criteria investment, etc., are pure-"guess¬
timates,"
subject * to
arbitrary
arriving at

two

import¬

investment

The
methods * to
substitute what amounts to
"very

wild

diffi¬
com¬

The strength

complexi¬

which

the

tional
abotit

investment

relieve

of this case, t.*e

tire'

Minister

pressure

but

and

would

na¬

looks

Alice's cele¬

hedgehog
F.

with

Carter 'and

Roy, British Economic Statis¬
tics, Cambridge Univ. Pr.. 1954.)
one had
anything like ac¬
curate
figures
(without
many
Even if

ef¬

months'

pre¬

delay, as is the case in
Europe) and truly reliable series
public of price and cost
ir\fUces, which

energy

ideas

one

determine

does not

have, they still would

not be of much

inessential,' ing

all

statistics)

scientific

hitting a live
flamingo." (C.

charge,
-generally accepted

vaguely

expressed
what is 'essential and

income
as

brated attempt to play
croquet by

be¬

to the econ¬

would

forecasts based

was

argument

ficiency' with which
sented, the power and

than

Policies

for

Every

potential bottleneck, result in ex¬
port expansion or dollar
saving.

British

that

because

omy,

pres¬

prophecies

interests

ing sponsored is vital

does the projection of trend lines.

Appraises

orienting

But-the

and: the

used

allocation

onstrate

Cycle, national income
accounting offers no more guid¬
sound

and bases this claim on the use
pi
the statistical analysis of
averages
and" "aggregates"
Tor

policy.

would, of course, be used to dem¬

the

Business

for

working
of
the
compensatory
principle. It claims to be a ration¬
technique of social engineering

better thought
guesses" in the place of fac¬
of as the re¬
tual
knowledge are known to the
of political and administrative
statisticians as "interpolating* be¬
struggles and pressures, than as a
tween benchmarks,
rational choice determined
extrapolating
by the
from
statistical measurement
benchmarks,
blowing
up
of rates of
sample
social return.
data,
using, ri m puted
V':" '
weights, inserting trends, applying
"Each industry or line of invest¬
booster factors.
(G. H. -Moore,
ment
is
the
administrative
re¬
"Accuracy of Government Sta¬
sponsibility. of some Government
tistics," Harvard Business Rev.,
department and in the argument
Spring 1947.) According -to out¬
about
the
investment
program, standing British
statisticians, "The
each department would
fight for result (of
the-

considera¬

culty lies, in the lack of such
prehensive knowledge of the

ance

they

responsible.

that

entering

taken into

But that is where the

comes

the

how

are

casual

help in determin¬
relationships — which

what matters.

each

More
the

specifically, statistics

are

meddling managers' stock-in-

particular request
for
in¬
clusion in the investment
program
was
treated.

Long-Bun Monetary Planning
Under

the

old-fashioned
gold
directing investments.
"No
doubt
argument
before
standard, central banking was a
The
blundering mal-investments these committees would be
dressed
fairly simple "business." It did
of two
live-year Monnet Plans are up in
statistics, since every of¬ not concern itself with
trade

generally known.
calculations

Board, based

of
on

the

are

the mal-

British

Coal

ficial knows that

always makes

totally arbitrary -if

statistical

impression.

case

And

all those concerned
play the sta¬
assump¬ tistical game
correctly—especially
tions about coal demand and coal "if
they ai-e not sure that tney are

and

•

rationalizations, based
and experience, with

be predicted—provided

picture

relevant to the

the aid of which causal
sequences
may

deliberations

can

practical knowledge. From a
pragmatic point of view, economic

insight

case

calcula¬

important

which

sult

all

any

such
an

much

these

the

statistics

return

decisions, but I suspect that manipulation.'

their

Forecasting,
in
the
broadest
sense
of the word, is implicit in

"laws"

the

committees

which

answer.
They
knowledge of the
future,
which
neither

cyclicaltheory

ant

undesir¬

that

answer

"scientific"

presuppose

that

played

proceeoings of these

is needed

any,

questions

Little has been published about the

undesirable trend, and
it be timed or dosed?

trend?

pertinent

ever

•role

given time?
How much

And what constitutes
able

possible

rates

Even if Data Were Accurate

;

All

which to
Capital Issues Committee and the
fashion, such Investments
Program Committee.

heading?

"compensation," if
to offset

evidence

tions

these: Where does the

invest¬

textiles?

not

social

measure

investment

with

engineering

answer, in a reliable

additional

statistically, there is in

considered as superior
the gold standard if there are

scientific

from

the coal industry
"Whether

Criteria

being

ment in

of Money Management

•t'urn

Money Manipulation-has

is
to
prevent
ordinary
forces being the criterion
distribution.
The
controlling

February, 1930;
pessimistic said it

present-day

very

market

not

until

most

teria

procedures; indeed, than statistical gobbledegook? To
purpose of Government quote again the trenchant words

control

already

was

public

the

stock

ners, "the extreme inaccuracy of
their forecasts
would have had

trol

the

investment does not
merely try to

imitate market

're¬

would end about Labor Day, 1930."

con¬

at the peak
extremely diffi¬
cult, unless by applying such rad¬

ing

the

ties of the phenomenon called the

The

but

over,

Results

tional

resulting

said

ent, let alone of the future. When

system
on
quality of the credit demand
savings, labor productivity,
technological progress, and
monetary sta¬ .creates a "frozen" credit structure.
bility, also en "tax morale," see
A. R."
Contraction in the subsequent up¬
Ilersic, Government Finance and
Fiscal
Policy in Postwar Britain
(London, 1955). turn may mean

Such

British

now

tion of investment.

1929, when the most

achieved,' "cycle" stand at

unless pubic- expenditures
Such economy operations

of capital, or its retarded
is a basic cause of

dollar-pains.

majority,

forecaster

market crash of

re-

don, Feb. 2, 1957). A recent study
is, Gf course, a
by an English scholar brought out.
rationally managed money..
But
fact that it is not a
shortage the Welfare States have lost
their
of capital that prevents the
growth fiscal freedom

ain, but rather the lack

accompanied

optimstic

the

of smaller industrial units in Brit¬

alterative

easilyUe niain-

tained."(Italics supplied.) (Lloyd's
Bank Review;
July 1954.)r- > v

•./

possible by statistical
analysis to decide on the distribu¬

per¬

That depression

that

of the 1929

in December

They

inflation

likely to bring diminishing

turns.

overtaxation

inflationary effect
by reducing saving and inhibiting

lines of action may

Given the high level of
taxation,
major increase of the tax burden

immediate infla-

chronic

results of

calculated to
stop "throwing good money
show of
only with very wide margins, ren- after bad" sunk into
the private
technique, with much
resenting the essential risks in¬ sector when
doing so would vir¬
making of mathematical:/modeIs,
volved in such
forecasting and, as tually bankrupt innumerable mar¬
projections, and regression lines
\vifh estimates of future coal and ginal
."
units, if not entire indus¬
(John H. Williams, "An
steel
requirements, statistical in¬ tries. So, investments have to be
Economist's
Confessions," 1952.)
vestigation might expose and il¬ centrally directed over
"A good parallel," he
large areas
aded, "was
lustrate these risks but is
unlikely of production in Britain, France,
the joint meeting of the American
to narrow them.
Italy, Holland, Norway,
Economic
Association
and
the
Sweden,
"Usually, Government control of and Austria, And what other cri¬
American
Statistical
Association

policy.
discourage
fostering

other. Witness the some 300 kinds
discourages
investment, of ."privileges", written- into the
incentives, and makes the /'French revenue law. r •
- >

unadaptable,

But

near-unanim¬

expenditure.

monetary

tend

instead

fects. Tax policy, in the monetary
frame of reference, belongs in the

whole economy sluggish, relative;

the

'scientific*

overtaxation. This reduces private

come

was

primitive

by the intensity of tax avoidances category of clumsy physical conand tax evasion, or by the effect
trols, with all the inherent hazof retarding savings as well as ards -of
"boomeranging."
Their
labor productivity and entrepre- clumsiness is enhanced
by their
neurial risk-taking. •'"The British complexity and the vast number
economy is suffering from chronic of exemptions of one kind or ansaving,

mates

ly, it is inescapable so far as Eu¬
the most striking failures in the
such rates as the criteria for se¬
rope's nationalized industries are
history of economics—was clearly
lecting which to approve. Even on concerned.
due to the Keynesian bias in favor
They cannot be "let
this
basis, however,, prospective down." Nor is it an
of large public
easy decision

income

tures on consumption or investments; the more drastic the measures, the less foreseeable the ef-

coun-

surpassed
to pay"—

"capacity
gauged not by arbitrary percentage ratios to national income, but

removes

—

With the reduction, of mil¬
itary expenditures. ''This whole
experience in prediction—one of

Since

taxed as it is at present, when adinterferences with the structure
ditional levies
on
a
substantial of
prices and of income distribuscale might undermine confidence vtion. It
takes drastic tax measures
instead of strengthening it.
to control the
public's expendi-

tries

Their

remembered.

encourage tax evasion and fraud,
which have reached appalling di-

contra-cyclical

for

competition

invented in the 1930's,

was

ration¬

ally in terms of quantitative esti¬

„

substitute

impossible, except under war-like
conditions.
The idea of varying
the

the

Varying tax rates is

necessities" (Mid-

land Bank Preview, London, Nov.
1952). In any case, a major raising of the tax burden is virtually

fashion

raising

—

entrusted

sion by a Keynesian

tax.)

inflationary when it fell 'un-

duly hardly'

"It

High Plateau,
and the apodictic prediction of an
early post-World War II depres¬

keepers.
(But in the post-Suez
crisis, the Mollet government re-

...,

apparent

ity about the unquestionable

highlighted by the virtual
surrender,
in
1955, of France's
Faure government to the noisy
Pqujade movement of small shop-

seem

anti-inflationary

1954-55.

game—then

deciding the issues

course,

Besides, tax policy serves more
objectives than one; they <frequently conflict with each other.
cial view, the

be quoted at lenth:

European
countries
have reduced, not raised, their tax
rates. The reason is "politics," of

tax imposed
the modest in-

and

French

holds for the

profits

excess

by Belgium,
crease

same

playing
air

(Manchester, England) deserves to

cri¬

quite extreme
which to gauge the

many

The

For

sued—and at this writing still not
abandoned—in centrally
directing
investments, Professors Ely Devon

up¬

the

are

productivity.

the
per-

manence

in 1955-56.

what

its

Thursday, April 18. 1957

as seen
by an
generally acknowl¬ intimate connoisseur. At
by
that, the
edged '■ ihat ihere-are no objective-. British civil
cycle?*
service is recognized
criteria by which the Government in
Europe as incorruptible; most
Some sector of-the
economy is •can decide
what
is' the
right scientific
minded, and much less
always depressed. Is the fate of amount '
of investment in> total. prone to
the nation
"unobjective"

to the tune of 860 million guilders
in 1956, with a deficit of 786 million guilders budgeted for the following year. Britain piled up a
record peace-time deficit of $1,-

very

the

and

appraisal of Britain's policies pur¬

economists?

Moreover, tax-raising
serious political
obstacles.
Minor moves, such as
upping the excises on some "luxuries," are not very effective, .as >
European governments found out
into

And

swings,

guilder; it was unbalanced m the
midst of record full employment

effect-

runs

when

size

labor force

man-shil't

ones.

out"; then they breed

short

anced budget, a not unimportant
element in the . recovery of the

over-

looks

"It

stopped

volt and the Suez crisis. Holland
carried on for years with a bal-

however, is much less convenient,
This

majority
of countries vby con¬
tinued, or restarted, deficit financing. France would be running a
huge budget deficit even without
the added cost of the Algerian le-

unbalancing the budget—deficit financing,

ary

cannot

turn* "breaks

pouring- since- 1953, is accompanied by

conveniently, the

private

available

They would do—if the depression
would last forever, as the
Keynesians have thought.
But they

inflation.

Most

to subsidize

changing statistical

anyj but
short-run problems. It did not
try
to play the role of Providence

role adopted lately by some
omists

the

Federal

econ¬

Reserve

Board, too) which it has to play

(1879)

Number 5630

Volume 185

...

of: objectives and cri-.1
teria as well as in the selection
of forecasting techniques. Hence,-"

policies and

wide - variety ^of :

thq

methods, the Vacillations

from one

apother, the lack of. consistency
over! a period of time,; to. say
nothing of the blunders which are
almost
certain to occur ah the

prognostication
as

long

illustration:

term

The following may serve

trends.

"Before the

war,..ft-was gener-

Dealers of

Britain that t-stabihzatiop
^he quite -irrelethe heavy industries had had their yant fact that the amount of sayday and that Britain must develop la&s requiredgor financing an unrapidly the lighter consumption changed - y ohfrne.; ot investments
goods industries if she were ever "as
unevenly ^distributed
to ' be
prosperous- again,:y The over the fmms as compared with
whole policy of "balanced distrimvestmems^Not even m this
bution of industry"-and the res-, simple case is.,there any definite
depressed areas
was
based upon
that diagnosis,
The
forecast has proved- to be
completely wrong. It is a shortage of coal and •: of steel which
troubles us and not a surplus. And
in these days it is assumed that
'Britain's industrial future depends
the

ally accepted in Great

toration

Dickers, Hafdy D.-Rs.

transferred ; termined nationwide; they, .-.in Security
banking system and the turn, carry the whole wage strucmarket "from the export ture with them,
Nashville Outing
sector td the home; market sector.
The crucial figure is 142; every
NASHVILLE, Tenn.—The Secu¬
Consequently, if this , is done to- change, by 5% over or below that
any Considerable extent by: way level automatically sparks a pro- rity Dealers of Nashville will hold
o^ the coinmerciial banking sys- portionate change of wages. This; their annual spring-party May 16
tern,- ■ then <he,^ maintenance of was to happen last February, and 17. A dinner, preceded by
equilibrium between savings and threatening to bring down the cocktails, < will be held atthe
investments, foMrequire that bank government's uneasy price-stabili-- Hillwood Country Club on May 16.
Friday, May 17„.will.be devoted
credit shall increase.;- In, such a zation—had not Monsieur Rama-'
case even a considerable increase: dier, the responsible Minister of to golf, games, and special'events,
to be held at the Belle Meade
in advances need not entail any in- Finance,- intervened. He did so,
flationary tendency; the increase most effectively: by: subsidizing Country Club. Luncheon will be
in adyancesr mierelyr brings out certain foodstuffs in order to keep served from 11:30 to 2 p.m. and
what from tfie. point of view ^of down their prices and by reducing dinner at 7 p.m. .■ t -

long-run problems are at '.stake*via, the
with all the fallacies involved :in capital
the choice

excises on several articles, for the
same purpose. The outbreak of a
vicious fever had been, averted
by changing the scale of the therrriometer—One of the miraculous
economic cures which are possi-

firm

ian

variety

with

'■{'

uncritically propagated

idea,

by Alvin Hansen tbat capitalism
is
moribund, due to its inherent
imnatDnt
"tYio+nr
trend
toward impotent "matur-

ANGELES, Calif.' — Will
Richeson, Jr.-is now with Dean
Witter & Co., 632 South Spring
Street.
' .>
;>/, t

unnieasurables

the

lty." This was the dynamic or
lutionary theory that served

of the

the. denunciation

justify

realize

p. h
.

the %

aivete

Company

Common Stock

Philmont Ave.

13500

April 17,1957

Phlla. 16, Ta.,

Dividend

dividend of $0.50
per share be-paid, out of the net unappropri¬
ated
earnings
of the Company on June' 14,
1957, to stockholders of record as of the plose

RESOLVED,

That a quarterly

;

,/•

The Board of Directors of

its
meeting held on April 12, 1957,
"(declared a regular quarterly divi¬
dend of forty cents (40c) per share
on the Corporation's Common
Stock. This dividend is payable
May 31,- 1957, to stocldiolders
of record April 30, 1957.

ASHBY, Secretary

num-

level for direct-

Pers.01 tne.prl

national economy. Yet, in
ti
u ^ JLV managers have
I ' take them a^The^raf F^r o^"
to takfthem
to takewages astthe.r cue. for one
them ar<| invariably bound
thing,

Salle

IIIf
materialize.

quietly dropped. But
the monetary doctrines based on.
those assumptions still are being

index numbers are

upheld—and no intellectual com-

lated in favor

they

were

punction

;

particular;

mGthods

ALUS-CHALMERS

V'—^—MFG.

to be held

being manipu¬
--

of
j

First,

choice

the

of the

index

of record at the close

(Allis-G'halmers Club
West Allis. Wisconsin, on
Wednesday, May 8,1957, at 11:00 A.M.
(Central Standard Time), for the follow*

ing purposes, or

tj?e money
volume, unless those of the veloc-

1. To elect a

■■■■■■■■■

thereof:

any

Board of Directors;

To consider and transact any

TEN3STESSEE

other

business that may properly come
before the meeting or any adjourn-

of Directors has fixed
March.21, 1957. as the record date for
Board

ffj)
X W

COMPANY'.

holders entitled to
at

ment

thereof.

AAA ERICA'S

and

policy

were

reliance on the

committed

The

Vice President and Secretary

Dated: March 21, 1957

Irving Fish-

Wtationfi'ins
Lately ° several ^liropean^central '
banks
to c^trol bardc "perfec^
panKsare rrying 10 coniroi oanK
„
are

late

handy device to regu-

But this

the money volume.

means

ignore the complex shift¬

are subject

side the Soviets)

the

glaring

1952,

postwar

period

iii AilM

income

Corporation Limited

.
t
^
ra vestment.

nowhere (out—v
with more gusto

Paper

The Bowater

can,

company

oil

available to

man

who

can

NOTICE

FINAL DIVIDEND

rWelfare States, but

examples, cf. S,:F. Sher- OUt
regard tO
win. Monetary Policy in Continental West- ; However, Since 1952, it
em
Europe (Univ. of Wisconsin, Madi- oAn/intr
tliA
lpf*al
to

May 17, 1957.
J. E. IVINS, Secretary

This technique is a . . accommodate additional venture
of/ "functional. fi- > . .fttRd, requiring tax .heltered;
QU
Substantial
extra,
practiced by the politics
case

nraPticPd hv thp nohtical
dance,,
bureaucracies ' of
all
advanced
nanpft

and is
ings and genuine—profitable—in¬
Swiss
vestments.
counterpart, for seasonal varia"The maintenance of a balanced
tions.4 Moreover, it is based eneconomy presupposes that the sur- tirely on the Paris market, with-

the

O 1 L

weight put on foodstuffs,
not
corrected,
as
is its

covering

of record

■■■■■■■■■■■■■■■a#<•■■

to- Aggrciv*

s-r

dividend of 35c per
the Common
payable June 14,1957 to stockholders

has been declared on

HELP WANTED

processes

1 For

Stock,

NO. 39

to which bank de¬ than in France.
y
'
posits are exposed. In Sweden, as
an
•The French Experience
example, this policy resulted
not only in a fiasco of the attempt
v The French cost of living index,
to stabilize the price level, but it
a
weighted average of the retail
actually unleashed a new set of
prices of 213" articles, is full of
unstabilizing forces by distorting
"bugs."
It is slanted by a 58%
the balance between genuine sav¬
ing

OAS

regular quarterly

DIVIDEND

Thirdly, even the prices enter-

of its

loans as a

TRANSPORTER Of NATURAL

By order of the Board of Directors,
<
W. E. HAWKINSON,

by quantitative relationships.

simplicist quantity

theory, of. money a la

UEAOINO

f|»

*dg|

HOUSTON,. TEXAS

determination of the comiuonstocknotice of and to vote
this annual meeting or any adjourn¬

The latter in the short pull,

measured, too?

are

TRANSMISSION

the

;

comparative purposes, except
In fact, a mere
are
extremely difficult tor ascer-; shifting 0f the base period may
tain.
Fatal mistakes of forecast "permit a "re-interpretation" of the

ity

GAS

thereof.

tneut

The

order to be realistic,-;
But then, the index loses all value -

New York 4, N. Y.

iiiiiiiiiiii

for

changes

WALTER E. FOX, Secretary
One Broadway,
.

vance

May '17, 1957, who on that date hold
regularly issued Common Stock ($1.00
par) of this Company.

;
,

authoiized the

of fifty cents

Company, 1115 South-

House).

changed

'.i

dividend

70th' Street

by necessity a matter

Secondly, the composition of the
not index and the^ weighting of its
matter of ar-"parts can be changed from time"
make all the to time. In fact, they must, be",

bitrary choice, may
difference. And what is the i;ele-

Secretary

($.50) per share payable June 7, 1957,
to holders of Common Stock of record

of busi"

■

payment

W.J.CONRAD, 4

savings deposits are or are

counted, which is a

May 15, 1957.

Winston-Salem, N, C.

„

supply. Wheth-

The Board of Directors has

stockholders

April 12, 1957

eral offices of the

DIVIDEND:

payable

Company,

the

Jqne 5, 1957 to

NOTICE IH HEREBY GIVEN, thafc
the Annual Aleetirig of stockholders of

ALLLS-CHALMERH • MANUFAGV
COMPANY, a Delaware

Take the money

of
^
v
STOCKHOLDERS
May S, 1157 -*■"

per

(hereinafter called the
"Contipany' ), will lie held at the Ren-

of arbitrary decision. Whose cost
not perpetual,, conflicts
of living, should be measured in
policy-making bodies. •' In
any, case,
the money managers order to keep it stable, or rising,
cannot get around the use of two and who is to take the decision
basic concepts which are as sim(other, than the ex officio superpie in theory as they are elusive man, as Roscoe Pound has called
in statistical application—the con- the administrator of the bureau
cept of money/.supply; and that state?
Patently, every choice in
of the monetary unit's purchasing favor of one group is discriminapower..
~
r
;
" - : . tory against others—a special or
class legislation,..the direct anThe Elusive "Money Supply"
tithesis t0 a State of Law.

CO.

ness

of the powers that

Stock

share has been de¬
clared on the Common and
New Class B Common stocks

Notice

the

Common

dividend of; 80

quarterly

cents

ANNUAL MEETING OF

among

f Milwaukee, Wisconsin

;;

Manipulating Price Indexes

numbers is

United States Lines

smoking tobacco

corporation

cessity to "plan" fundamental eco¬
nomic trends brings about recur¬

„

Albert, George Washington

Compant

there

which

Salem

cigarettes

QUARTERLY DIVIDEND

the ne¬

Under Manager Money,

rent,

Camel, Cavalier, Winston ft

4vs;

TURING

! 4

■\
"

Reynolds & Co. and H. Hentz

Prince

logical

for

respect

consistency.

Wilmington, Delaware,

Makers of

MEETING NOTICE

and

Triismanfmement arise

iri

Secretary

Corporation

Street.,

Co.

management, wliich is thus taken.
out of the hands of central banks ,
and treasuries.
Infinite possibil-

both assmmptio s "
flagrantly nonsensical,-,

war,

out

LEROY J. SCHEUEBMAN

Central and South West

Renshaw, 209 South La
He was formerly

Rodman &

jnatineJDiruirawrwmsiay^ wo

Reynolds

CHICAGO, 111.—Jordan E. Rothbart has become associated with

the advocation of deficit —be it. legally qjc contractually, or
financing, of Cheap Money, etc. It simply de fact$—to some indices.
was underpinned by another KeyAnd wage determination has be¬
nesian "insight":. the assumption come a
prime function of money
that the birth rate will stay low or

saver,

.last

R. J.

Central

and South West Corporation at

31, 1957.

business May

(Special to The Financial Chronicle)

with

Irving

index

DIVIDEND NOTICES

Incorporated

Joins Rodman & Renshaw

to 4 bother

York;

in charge of the

LOS

DIVIDEND NOTICES

oxrr." ing the
evo=

bTv,-

•

not

"classic" among fake long- purchasing ; p o $v e r of money.
prophecies was the Keynes- Keynes was clqpr-headed enough

term
ian

such

w|s

was

partner-in

New

Joins Dean Witter
k

impetus to her inflationary drift.

Managed Morfey of the Keynes-

Houston office*

•

Index Numbers

Government b

Presidents;,' Mr.

Brothers -of

Mr; Vickers

rest' increas¬
ingly." (John Jewkes, "The Econ¬
omist and Public Policy," Lloyds
Bank Review, April 1953.)
to

come

formerly

was

Vickers

y'
on„Ian fiffective revenues from excises will not fail
<two-to-three billion
development of Crtdit_ Poll®,!.
Banken Quarterly
Review, Jan. doliars!) deficit in France's curthe heavy industries and of engi-t
"^'*4
-rent budget, and will give a fresh
neering, upon which the export
has

Vice

Hafely

American Meter

Harding; &

Co., C & I Life Building, announce
that. James Si Vickers and G.
Douglas Hafely have joined their

Guest fee : is. $25; reservations
may be made with Jack Zeitler,
Third National Bank of Nashville.

ble in the framework of "compensatory finance" a la Keynes,
-y^a^®h pet^eij theshift dm the \^hat this miracle of pseudo-stadistribution \<>Ll. savings out of bilization means, should be obviprofits in relation.to the distribu- ous p01;
time being, the index
tion of investments oil the one; stays put, or even recedes. But
j}anc* ,ar^ the;*d^elopment o^ tbe^
combination of more expendibanksvdepo^^-and^dvances cm tures on subsidies—they will cost
some 60 billion francs—and fewer

Daring i Ce.

HOUSTON, Tex.

largely upon the

trade

Chronicle

There,- pluses of savings are

managed money system.

The Commercial and Financial

serving
which

has been
Jangp bv

oy
wages are de- ;

me legal

minimum

province.

bauge

arrange

between

conferences

corporations,

executives and< in¬

dividuals in high income
who

are

good

This

confidence

and

enjoy the-

of those who

are

Chronicle,

New York 7,

N. Y.

Park

British income tax, on June
at

the close of business on

1, 1957 to stockholders

of record

April 23, 1957.

R- KNIGHT, Secretary.

England.

The Bowater

Place,

ended
ordinary stock

equivalent to approximately 22 cents per £ 1 stock unit. If
approved by the-stockholders at the annual general meeting
to be held on May 30, 1957, the dividend will be paid, less

London,

Commercial & Finan¬

held April 16, 1957

final dividend for the year

1956 of 8 per cent on the

speculative investments.

Box T 418,

cial

December 31,

must have,

man

references

need of

brackets,

petroleum

the

Directors at a meeting

decided to recommend a

seeking the special tax

advantages
industry.

The Board of

United States of America

Organization j,

Great Britain

Republic of Ireland

South Africa
"

Anatrafis
Sweden

Canada

Norway

—

€0

(1080 *

The Commercial and Financial Chronicle

tion

BUSINESS BUZZ

Thursday, April 18, 19-37

...

put the RFC into

tion.

At the

on..
A

Behind *the»Sctno InterpfeUtien*

CARPET,
rLATEST MODEL!

JL C/ Cv

tinguished senior Senator from
Virginia would
never
put it
quite this way, Harry Byrd has
got him a gimmick with which

SBA

to ride herd

ing

policies

to come.

This

Senate

some

the

device

the

Committee

Finance

Mt;'

bailiwick.

Actually

interest

rates

tion

factors

which

availability and
credit
thereon

interest

this.

the

plicity of loan

ful,

for

body

These "liberals" decided there

political hay to be made out
berating any one who could
Ibe found over "tight money and
tugh interest rates."
So when

was

cut

comparatively

come

minor

four

gentlemen

all

were

pre¬

and

back

DESTINATION SECURITY!

the

will

have

another

inquiry
be

this

the

proved

myth,

debt

limit

know until

They

picked

technician

servant,
the

cal
on

and

suburb

genuine

Randolph

Under

Treasury.

the

Secretary

the

Randy just works for

George M. Humphrey, the Sec¬
of
the
Treasury,
but
Randy is fundamentally a s^v

retary

Having

guy.

objective.

public

Burgess,

lot of when did

picture

Thus

fering

will'
,V:; '/•

will

motives

From

Byrd

headlines.

the fis¬

the

their foil to Mr. Humphrey, who
can

sling

mean

barb back

when

did
you
stop
somebody questions.
■

Even

though

Committee

has

over

monetary

that

being

beating

■

Finance

jurisdiction

affairs
the

such,

province

most of the daily

overlooked

the- time

the

Randy

the

Committee.

near

fiscal
a

the end

;

further

"liberals"

from Mr.

Burgess the admission
that it might be found
necessary
the end of this
year for
the Eisenhower
Administration
near

1959

current,

view

ad¬

"surplus"

;

1959,
this
expired and
on

Corporation tax

added

annual

National

re¬

Service

invested

replace

the

rate

further

debt

boost.

something

which

So-

The rule of thumb

is that each percentage point of
corooration tax revenues brings
in $300 million of
Treasury rev¬
enues.

Therefore in

years,

revenues

$1.5 billion,

couple of

will

drop

;

ministration backs
Small Business

who
an

open

have

plan" to

important facet of

into

licans

seems

also

reserves,"

bill.

.:\v

•>,'

that blessings

proposes

subsidized

housing shall
bite
into the Treasury for around $£

billion,

direct

less,

indirect

one

accounting

In the end, most of this

nancing will be approved by the
Congress. ' •"

[This column is intended
flect the "behind the scene"•

to re¬
inter-

pretation from the nation's Capital
and may or may not coincide with
the "Chronicle's" own

Oscar's Delmonico

Opens the Roman Room
Established

Delmonico

since

1830,

restaurant

Oscar's

announces

architecture.

able by reservation for

avail¬

luncheons,,

dinners, banquets and buffets, f !
This

famous

taurant,

has

international

Beaver

had

for

res¬

William

and

patrons

the

Emperor of France, Diamond Jim

chief

Brady,

office, the
remaining function of the

Reconstruction

"Mills

small business.

tax

collec¬

the

was

licity

Finance

making

fanfare,

Corp.

loans

Lillian

Lind and

many

Russell,

Jenny

society favorites.

With great pub¬

the

Administra-

TRADING

MARKETS

Delhi-Taylor
Trans-Canada Pipeline

A. S.

Bank of America

Pan American

SAGS

Sulphur

Bought—Sold—Quoted

SCHERCK, RICHTER COMPANY

United States Envelope

Morgan Engineering

Teletype

SL 456

Carl Marks
20 BROAD

STREET

Louis

Riverside Cement

Flagg Utica

TELETYPE NY

1-971

LERNER & CO.
Investment

GArfield 1-0225

.Co. Inc.

NEW YORK
5, N. Y.

•

320 N. 4th St.
St.

National Co.

FOREIGN SECURITIES
SPECIALISTS
TELi HANOVER 2-0050

Member Midwest Stock
Exchange

10 Post Office

Mo.
»

JT-v.-v...

•

Indian Head Mills

Wagner Electric

Bell

Botany Mills
Campbell Co. Com.
Fashion Park

Lone Star Steel

However, the Committee fur¬
ther

Streets,

cycle.

own

their

accelerate

insurance

When the Eisenhower Admin¬
istration came into

brought
the Repub¬

that

permanent

Administration,
philosophy
government in lending has

turned full

Williams

never

finance,

the

life

sufficient to kill this feature of
the House Banking Committee

Roman

the Administration's

John

op¬

the opening of The Roman Room

Now that the Eisenhower Ad¬

seasonal dearth in corporate tax

Republican "Mills Plan"

Administration

which is luxuriously appointed in

Baeks Permanent SBA

GI
f

less.

revenues

begins.

com¬

the

talkers about tax cuts next year
to have left out of their

calculations.

"temporary"

limit

rieics.]

seem

killed.

subsidized housing mortgage fi¬

currently paid
the legal rate of

cur¬

57%

drop

will

rev¬

will Ibe

facto

it already has
these alleged

device.

kick-in.

corporations
and

around

This

estimates.

Federal

Olin Oil & Gas

the

be had by a lot of
people start¬
ing
next
summer,
when
the

overlook

Anheuser Busch

Just to make the record clear.
Senator Byrd. who has rather a

(R., Del.)

Universal Match

have

lia¬

tax

estimates take into account

10%

to the

paying

are

corporations will be

30,

Administration's budget es¬
timates must be pretty good, or
an
interesting time is going to

col¬

1959, and in

current

end

will

the

of the

the

enue

"temporary"

precarious

Senator

Colorado Oil & Gas

tap the alleged

the

this money, plus Veterans Com¬
mittee opposition to "a raid on

year.

Republicans

their

rent basis.

will

statutory

had

"stocks"k before
Mr. Byrd drew

Federally^-

position to have to make good

52%.

approve

significant

bonanza

not

June

year,

The

this

bilities each tax year.

unneces¬

would

100%

current

corporations

110%

not

decisive voice on what action
the Senate will take, announced
to Mr. Burgess that he would not

exchange
between
Chairman
Byrd and Mr. Burgess, during

the

the
no

press

Administration

each

rate.

effect

Senator
admission that

the

drew

under the

you

erals" much preferred Randy as

52%^

avoided,
mittedly

dif¬

brought

girls.

Incidentally,

for five years

year

boost in the debt limit could be
the

Debt Limit

stop beating the poor small
businessman questions, the "lib¬

and

basis of

current

carried

Burgess,

whether

Daddy and Johnny to the circus.
Johnny was interested in the
animals; Daddy in the partially
clad

Mr.

present

real

which

■

y;vv y_'":

Committee will have

Burgess

fact

them

The original "Mills plan" added
10% advance payments annually

further

would

the

Berate

spent

by advancing

lections

sary.

The continuous rein the Finance

the

then

ready to harvest their, crop,

full

"tempo;rary" boost beyond the statutory

little

This
essentially will
be
the
fringe of the inquiry, even if it
most

public debt

plus this year and next, and
using this surplus to reduce the
outstanding
Federal
debt.
If

talking about "tight
and high interest rates."

makes

tions

hower budget was that the Ad¬
ministration was running a sur-

with their mower to cut
the
hay,
their, side delivery
rakes,
and
their
balers,
all
pared

"temporary"

The whole tenor of the Eisen¬

fun

money

seek

increase in the legal
of the United States.

red

and

of the
Committee, for

of:

were

bination
to
_

tax

will

testify,

SBA.

"reserves."
This

the

huge

proposals

borrow the money

done

the

Reserve

"liberals"
more

into

course

Federal

called
-

proposes

and

housing
mortgages,
Treasury would have to

I" the

big way.

the

mittee from the House

"cut

serves"

•

some¬

it has not

All
na-

veterans'

whose effect will throw the

ink

bill

permit¬
ting the Treasury to pay higher
interest on savings bonds, these

fact)

when

has

(when

government

to the Finance Com¬

over

along and pretends

Congress

budget"

the

and

RFC.

another

are
purely a figment of the
Treasury accounting imagina¬
tion, all the money already havr
ing been spent.
If these "re¬

multi- }

Life Insurance fund for $1 bil¬
lion. These reserves,: of
course,

con-

guarantees

instance,

comes

that

for

serves

This device will be very use¬

Douglas of Illinois, and A1 Gore
*

States

the

liberalization

miscellaneous Federal activities,

Committee,

Senators Bob Kerr of Oklahoma,
Russell Long of Louisiana, Paul
of Tennessee.

United

the

the
is

Banking

nance

whither-i.s

indefinitely.

Full text of Commercial and Financial Chronicle : April 18, 1957, Vol. 185, No. 5630

FRASER