Full text of Commercial and Financial Chronicle : April 26, 1956, Vol. 183, No. 5528

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ESTABLISHED I S39

^OFMICHGAN
APR 3 0 1S56
HWW'SUATIHI

BUSINESS

HSJUW

R«C. U. B. Pat. Office

Volume 183

Number 5528

editorial

New York

;///--v:::/W;;/7/.//';' -:'i:i

As'^We^'See

"The

problem

Outlook for Business and

Excess stocks of certain farm commodities have
mounted

market-destroying, price-depressing
size as a result of wartime price incentives too
long continued. Any forward looking, sound
program to meet the needs of farm people must
the burden of these accumulations.

remove
are

depressing net farm income by
of

dreds

millions

dollars

■

his courageous veto of an iniquitous
conceived in subservience and dedicated

announced

to vote

catching. We gladly join the rest of the
congratulating the Chief Executive for
this fine showing of independence—or of extraor¬
dinary political acumen, whichever it is,

nation in

should

tremendously

pleased

dent

to^tne

consumer buying, with auto decline made up
by increased sales elsewhere, and (3) consumer credit
developments. Finds business inventory rise not greatly

advancing

out of

our

Prior

...

(1) -Our. population is rapidly:* irir £
creasing, changing in age composi-^
tion
and
changing/ its / geographies*

■

lows:

"/'V. -;7

// ;

VO->r. begin with

Research has become Jndustry's major tool. On it we spend
•J$5 billion a year and use a half million people. As a result, every day is
progress.

•:

analysis of the out-

remember

Vital part of a

'•

that

—

-Were a

/.opening

early in; Januaryi^lopk for business;
• r
more
than* three months ago, I sent a special C'l'r/h
B^ihess Outlook
^message to Congress recommending an expanded-/;: A raajor change in the characte.mne-pomt farm program, including a soil bank { istic of the economy since the close
which would reduce the surpluses and improve;
of the second World War has been
our basic resource
the soil. These measures ♦the apparent minimization-in the
will

broad

nrortr.m

program

Continued

amplitude

which the
on

whole.

;

page

fluctuation

Rather

than

porate

securities

are

afforded

—

way;to

methods.

new
/

products

"."'.N'

;:(3) The economy is supporting a%
peacetime military program which,
from
the point of view of future

Michener

D. W.

(4) ^'Managed money" has, for some

years,

Continued

business

cycle

being

Underwriters,

j *"

dealers

page

address

by Mr. Michener before the Pacific Northwest Con¬
ference on Banking, State College of Washington, Pullman, Wash¬
ington, April 5, 1956.
*An

depressed

on page

been hav-

and investors in cor¬

picture of issues now registered

complete

the

new

developments, is of uncertain size and duration.

Continued

and potential undertakings in our "Securities in

and

WeiM

JuIUl( D

businesses

SECURITIES NOW IN REGISTRATION

DEALERS

the

most

(2) We are living in a golden age"
of /technological
and
mechanical

•

maA^nd^therefo^ m^t

Also, in Adam Smith's lan¬

greatly increasing in
"skill, dexterity and judgment." \

any such thing
ito: beX. business situation/subject of course
explanation of his vetq?, .;rto fluctuations' caused by variations
rank and file in a broadcastsv- between:'industries^' and^-by v short'

following the veto/and reproduced here
/"You

location.

guage,; it ;is

the ; further
to the

taking a good look at the United States
permit me to sketch the general back¬

ground with a few broad strokes.
-

inability to do

vouchsafed

proportion to retail sales, and notes upward trend
in housing construction.

business picture,

of the:./ estimates,hopes ahd fears of all who
problem and of the basic nature -buy and sell securities. Over the
of what needs to be done in the premises. That,
short, ..term, .psychological factors
however, we are unable to do,. and tne reason;/the
found 5 in

at opposite pole from early
instead of immediate business

(1) capital goods accompanied by technician shortage
acute than that of some critical raw materials; (2)

so-called farm

.for

sees,

*.the.• combined. knowledge,

real understanding of the nature

now

are

a little too much business
1956"; possibility prices may break out into a def¬
inite advance, and leaves it to the Reserve authorities to
determine at what point credit restraint interferes with
normal business growths Mr. Michener draws attention
tothree "stretching-at the- seams" expansion areas:

stock market,.m its traditional role of forecast-

oonlH cm on frrvrrrfhprA fn attribute* tn thp Prp«;icoum go on
irom^pere to attribute

into

recent prime rate increase to lower bond prices
slightly;' (2) "rolling" corrections in 1956 with over-all
business activity averaging out slightly above 1955;
(3) steel wage increase to avoid costly shutdown; (4)
continuation of long-term trend toward "built-in infla¬
tion," and (5) corporate earnings for 1956 as a whole
to show little change from 1955. Notes numerous indus¬
try groups and individual issues are selling well below
their 1946 peaks, when the D-J Industrials attained a
high of 212, compared with the present peak of 511.

•

Copy

decline, "tendency to crowd

factors

undergoing consolidation or even moderate de¬
cline, and long-term trend toward higher levels. Expects:

-..^With these trenchant sentences, the President
measure

Investment Counselor analyzes

^Angeles

1930's, Economist

market

They

Noting that
Calif.

Counselors, Los Angeles,

underlying business trend, and perceiver intermediate

/
.

hun¬
H. R. 12

would not correct this situation."
j

Los

many

year.

By DWIGHT W. MICHENER*

By JULIAN D. WEISS

Investment

Economist, The Chase Manhattan Bank

;

General Partner, First Investment Company

Cents

Travelling Toofast?

The Securities Markets

surpluses.,

price-depressing

Price 40

7,'N; Y., Thursday, April 26, 1956

with the SEC

Registration" Section, starting on page

38.

State, Municipal

and

U. S. Government,

s •*

State and

Municipal

Signode Steel Strapping

Securities

STATE

*111^

MUNICIPAL

and

COPIES OF OUR
LATEST

telephone:

Young in Growth

HAnover 2-3700

BONDS

Public

■

Housing Agency

Bonds and Notes

"ATOMIC ENERGY

Memorandum

Request

CORN EXCHANGE

J. R. WlLLISTON & CO.

BANK

CITAILIfHID
MEMBERS
ANO

DEPARTMENT

OTHER

NEW

STOCK

YORK
AND

STOCK

Miami

Beach

—

the first national city sank

EXCHANOC

COMMODITY

115 Broadway, New

ST.,N.Y.

•6 S

EXCHANGES

of new york

THE

Chase Manhattan

Members New York Stock Exchange

120
Bond

REQUEST

HARRIS, UPHAM A C9

York 6, N.Y.

Rye, N. Y.

DEPARTMENT

BOND

ARE NOW AVAILABLE

30 BROAD

i; ni

REVIEW"

CHEMICAL

BOND

Dept. Teletype: NY 1-708

bank

BROADWAY, NEW YORK 5

34 offices from coast to coast

Net Active Markets Maintained
To Dealers, Banks

State, Municipal,

T. L.Watson &. Co.
established

1832

Members

County and

New York Stock Exchange

District Bonds
STREET

NEW YORK 4, N. Y.
FIRST

^OUtAwedt COMPANY
.

•

WIRES TO

•

perth amboy

Doxeuox Securities

MONTREAL AND TORONTO

6rporatioh

Goodbody 8c Co.
MEMBERS NEW YORK STOCK EXCHANGE

bridgeport

0AIUS

DIRECT

our

115 BROADWAY
NEW YORK

upon

request to

Unlisted Trading

Dept.

DEPARTMENT

Teletype NY 1-2270

BROAD

COMMON

Analysis

Executed On AIL

Canadian Exchanges At Regular Rates
CANADIAN

Control Co.

BONDS & STOCKS

SECURITIES

American Stock Exchange

CANADIAN

CANADIAN
Commission Orders

U. S. Thermo

and Brokers

1 NORTH

Exchange Place, New York 5, N.Y,

Members
and

New

other

111

Teletype NY 1-702-3

WHitehall 4-8161

Boston

York

Stock Exchange

Principal Exchanges

Broadway, N. Y. 6

WOrth 4-6000

LA SALLE ST.

CHICAGO

IRA HAUPT &CO.

Teletype NY 1-2708

Telephone:

Enterprise

1820

The Commeicial and Financial Chronicle...

(2022)

The
Specialists for
30 years

Security I Like Best

over

in the investment

reasons

for favoring

they to he regarded,

are

current year may

$1.40 per share.

Manager: Research Department

Plans

Our 96th Consecutive

Quarterly

Comparison of Leading Banks

New ,York. City

Members N. Y. Stock Exchange

ACF-Wrigley Stores, Inc.

United States

request

establish

Wires

Private

panies

York 5

Cities

un¬

com¬

gener¬

ally sell at
prices

than
com,payable

mar¬

history,

s. H. Floersheimer

son

SCRIP

the company is,

us¬

Stock Exchange
Stock Exchange

BROADWAY, NEW YORK B

motor

into

number

The

flect
these

Gas

;

„

Telephone Co.

*.t>

■

the

was

re¬

largest

chains

and

Trading Markets

Carlisle Corp.

the

serve

southern

■

Michigan

Humpty

roof. Sales for these combined

terprises

Dover Corp.

are

presently running at

$320 million, with sales

per

store

averaging about twice the dollar

Hydraulic Press Mfg.

figure compared to the national
average of dollar sales per store

U. S. Thermo Control

for

all

super-markets.

Not

only

is the dollar sales figure per store
anv

ESTABLISHED

37 Wall

St., N. Y.

»-

for

•*

„

synchronizing,

CiT\II

the

impressive

company's

compared

one

;

competitors,; but

dollar sales per customer also re¬
flect apnroximately the same re¬

1929

Tel. HAnover 2-4850

lationship.
Inasmuch

today

Since 1932 Specialists in

in¬

immediately

are

make

the acquisition

VIRGINIA—WEST VIRGINIA

NORTH and SOUTH
CAROLINA

stated

all

in this industry

the

The securities

15 times.
are

pro-forma basis, had

enterprises

revenues

for

con¬

full

the

CRAIGIE&CO.
B«II

RICHMOND, VIRGINIA
System Teletype: RH 83 A 84
Telephone 3-9137

better,

and
that

the

with
will

The

integration of the
regional units, earnings

from

various

for

the

;

branch offices

our

placed

tegically

United States

impressive

from $42

of the company's out¬

common

stantial

further

sub¬

•

summation

information

write

Yamaichi
Securities Co., Ltd.
Established
Home

Office Tokyo

Brokers

1897

—

Investment

Branches
Bankers

111 Broadway,N.Y.6 COrtlandt 7-5680

opera¬

Firm

the

Trading Market [

Maintained in

six in Canada

CANADIAN

growth since tnt
Sales have grown

1955.

Even

—

1946

mend

per

WISENER

from $1.15 in

rose

COMPANY

and

LIMITED

78 King St Watt—Taroata, Canada

examination

Common Stock

and

share of common
1946 to a rec¬
ord
$3.50 in 1955.
Contrary to
many
industries, Moore's sales
growth have been accompanied
by a nice improvement in profit
margins.
.
* •
earnings

recom¬

DELHI

PETROLEUM, LTD.

im¬

since

290%

increased

would

current

Call

pressive have been the growth of
earnings.
Pretax earnings have

improvements are envis¬

aged.'.,"

For

million in 1946, to $98.7

million in

stock, indicating

that

appear to

Sales and earnings have shown

about 55%

conviction

their

plants

and

end of the war.

its

for

remaining at practically (?-.
levels for three years "
be stirring due J
improved Japanese economy. "

stationary
now

through Moore Corporation,
Ltd,, listed. on the Toronto and
Canadian Stock Exchanges.
The company operates 16 stra¬

combined management own¬

standing

STOCKS
after

tion

ership of ACF-Wrigley represents

the

1955

and
presently better known balance sheet shows cash
issues; and (3) the present per¬ governments of $10.3 million and'
liabilities of only
formance and plans for the future total current
$8.8 million.
The current ratio
indicates over aoeriod
is 4-to-l.
There is no funded
r larger, stronger, and more prof¬
itable enterprise is in the making. debt and the common equity is
basis with

99.2%

the

(2,145,056

appears

value

growth

ord,

current

the

combines

cause

market

its

cumulative

dominant
position in its

added

ultra

and

very

mul¬

Rudy

forms in the United States and
it is nractirallv unknown

include
and

Stock

Midwest

Detroit

Stock

Exchange
Exchange

earnings

carried

into

continuous

interleaved

inter-

forms,

fanfold forms, sales and manifold
books. Autographic registers and

1051- Penobscot Building

llloore's

balance

•

DETROIT 26, MICH.
li

Branch

Woodward 2-3855

Total' undis-;

of Kidder
amounting, to-$1.8 million, or 84
cents a share, have been retained
by Kidder for use in their opera¬
tions and have not been taken.up
in the consolidated accounts .of
Moore. Total net worth of Kid¬
tributed

undistributed

its

der,:,as of year-end, was $2,578,427, almost $2 million more than
Richard

turer and distributor of business

folded

Members

they

that

Request"

MORELAND & CO.

report-

Moore's

account.

earnings
.

sells

Canada

was

man¬

modest

note

only

the

example

$547,045 and yet the net
profit olone of the subsidiary ?in
*1955 was $378,797, all'of whfch

conservative

agement

Latest Information

carry
their non-consolidated subsidiary,
Kidder • Press -Company,- Inc., .at
ings,

balance sheet,

superb

shares
preferred.

only $321,800 of 7%
preferred A and B

conservatism

be¬

rec¬

industry,

SOLD

L A. DARLING

shares).
the company

cumulative

This .leaves

ultra-

—

QUOTED

During the year,
redeemed all outstanding

vigorous

BOUGHT

structure

capital

common

Corporation, Limited, shares.
As
an
to be
an
exceptional

Moore

substantial duce
result

1-1557

•

JAPANESE

reputation

States

United

rate of growth
concerned, as well possible to invest in this

Income of $1 per share in U. S. investment circles. The
$290 million would be company manufactures business
calculated.
With the substantial forms,
paper
boxes,
packaging
increase in sales, at an annual rate and advertising display products.
The business forms that they profrunning presently at $320 million
or

leadership. and quality, very few
investors are aware -thai it. is-

expected

of the company

year, a net
sales of

economies

Direct wires to

forms.

De 75

Office—Bay City, Mich.

N. Q. B.
OVER-THE-COUNTER

sheet.
The

company

extremely

profitable operation and last year
with

operating

profit

$15.4

■F. W."

Mxenenge

Exchange

Mobile, Ala.

subsidiary,

outstanding

the

evaluated both

constituent

tributed
MUNICIPAL BONDS

WAnover2-0700

market price

was

business

Moore

1955,

earnings ratio of the larger chains have
of about

the Wrigley orr tiple of earn¬
accomplished in a ings.
In: spite Of
period--of over 10 months,-actual
earnings reported for the year its dominant
1955 do not truly reflect the earn¬ position as a
ings capacity of the company. Re¬ manufac¬
ganization

the

for
In

the current

yet

the various component chains that

Stock

stock

New Orleans, La. - Birmingham, JU4

way

en¬

the annual rate of approximately

E. I. Korvette

»<md"

attachments

growth

Dumpty stores
are
located
in
Oklahoma
City,
Tulsa, and throughout central
Oklahoma; Foodtown Stores with
13
super-markets in Cleveland;
RICHARD W, RUDY
Fred r. kapps, Inc. operating 10
Assistant Investment Manager
super-markets in St. Louis; and
Farmers Insurance Group
Abner A. Wolf, Inc. in Detroit,
Los Angeles, Calif,
which is the world's largest whole¬
sale grocery operation under one Moore
Corporation, Limited
area;

LD 33

name

food

Detroit

Lynchburg, Va.
62

chains.

ACF-Brill

ty-two of these stores

Scott, Horner &
Mason, Inc.
Tele. LY

annually..

purchases, of this stock for
these reasons: (1) the risk ele¬
Altogether ACF-Wrigley ope¬ ment *in/ the market at present
rates
148
super-markets located prices is extremely low; (2) as the
stature of the stock becomes rec¬
mainly in southern Michigan, cen¬
tral Oklahoma, and ; in the
St. ognized, the earnings will,be cap-;
on
a
more
comparable
Louis and Cleveland areas. Nine¬ italized

Virginia

Company

food

and

presently ope¬
rating out of the parent company.

Alabama-Tennessee Natural

Southeastern

the

shell

established

ACF-Wrigley

ab¬

and

corporate

name

changed

Air Control Products, Inc.

its

well

competitive

highly

Trading Markets

business

bus

and

sorbed

Bank of

a new one

Brill, which divested itself of its

2-781B

REctor

York

American

It Beater St, for Yait C. I. Y.

stock reflects this, as
the
experienced • margin
of
while its operating units, its source profit.
The performance of the,
of
revenues
and
income,
rank, company's management, w h i c h
with many of the best corpora¬ ranks high in the food distribution
tions in the food retailing field.
industry, has over a period of
This company is actually the about 30 years, proven itself to
outgrowth of the former ACF- be both competent and aggressive.

Members

TEL.

Members Nam

Members

the

price

IfcTtoNNELI&fO.
ISO

indeed,

it is constituted today, and the

Since 1917

American

Steiner, Rouse & Co!

Angeles,

of; Moore Business Forms, Inc.,' ac¬
approximately 17 for ACF-Wrig¬ counted for 86.8% of the total
ley £ tores- shares, the stock is sales volume, and Canadian sales
the
bought on the basis of about *1? accounted • for
remaining
times earnings,
which compares 13.2%.
;>r *
with an average industry nriceWhile
Moore
Business
forms

ually connected with new enter¬
prises. In the case of AFC-Wrigley,

York

Los

to arrange a merger in- pany, Inc., that designs and man¬
whereby net earnings ufactures machinery and registers

simply by rea¬
of the pioneering element

Specialists in

New

Group,

surance

creased.

estab¬

lished

respect

per

to '

relation

ket

in¬

.gradually rj*'1. to. .a level equipment field account for 89%

possible

earnings

have

RIGHTS

sales

net

million

$400

such

securities that

Rudy, Assistant

vestment Manager, Farmers- In¬

of
sales.
The
remaining
11%
from comes from packaging sales to
external sources, the company has the cosmetic, cigarette, food and
stated as its policy that only those other -consumer goods industries.
acquisitions of
existing
chains They also have a Wholly owned
would be contemplated where it is-i subsidiary,; Kidder
Press Com¬

lower

SAN FRANCISCO

Principal

Bought—Sold—Quoted

Limited-

$1.80 to $2 annually.

With

units.
of

seasoned

Exchange

CHICAGO

•
•

Corporation,-

Richard W.

under wayalready negoti¬

increase

level*, of

indi¬

vidual

Teletype NY 1-40

BOSTON

Co., New York City. (Page 2)

Moore

super-markets in operation and

should

Stocks

120 Broadway, New

PHILADELPHIA

well rec¬

ognized

Member

WOrth 4-2300

Louisiana Securities

Inc.—

This

and

1920

Stock

Stores,

growth should be accomp-, continuous forms with taou acmg
given an opportunity to buy
within
a
shares in a newly organized com¬ lished
period
of
18 and other accounting machines.
pany whose business is the opera-, months to two years, and based These office items that are e?«en-»
on
tion of long
profit
experience,
earnings tial in the fast growing office

Corporation
American

around
;

run

leases

some

thus

New York Hanseatic

Associate

»t

Stephen H: Floersheimer, Manager, Researcn Dept., Sutra Bros.

already

are

'I*.

Alabama &

ated, to bring to 200 the number

It is not often that the investor,

Established

and
of

of the

and Trust Companies

Sutro Brothers & Co.,

well

Participants and

ACF-Wrigley

are not intended to be, nor
offer to sell the securities discussed.)

as an

STEPHEN H. FLOERSHEIMER

Insurance Stocks

particular security.

Their Selections

(The articles contained in this forum

and

Available

Forum

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

participate and give their

Bank

* *

This "Week's

A continuous forum in which, each

Thursday, April 26, 1956

million, tlie company earned
most 32% on the funds

in the business.
as a
was

INDEX,

14-Year Performance of

35 Industrial Stocks

al¬

employed

FOLDER

REQUEST

The net earnings

percentage of common equity
19.5%.

INDUSTRIAL STOCK

These

Continued

rates

are

all

National Quotation Bureau
IliCWpOfBtBtl

46 Front Street
on

page

New Yerk 4, N. Y.

Volume 183

Number 5528

The Commercial and Financial Chronicle

...

(2023)

Coal and America's Future

INDEX

By FELIX E. WORMSER*

Articles and News

"
Page

Assistant Secretary of the Interior

Government mineral

official

avers:
(1) the worst for
long-range, 1965-75, future points to a market
greater than in the past year; (2) present year promises*

coal is

far

to be

resources

—Julian

Weiss.

THE BIRDS AND

;

Cover

Coal and America's Future—Felix R. Wormser

better than 1955 when bituminous production ex¬
the fondest expectations and even anthracite sales

even

ceeded

i_Cover

Outlook for Business and the Securities Market

and

over

Warnef-Lambert—Ira

llCHTflWfll!
AND COMPANY

Travelling Too Fast?—Dwight W. Michener

THE BEES

Cobleigh

know
their

(3) late reports indicate upward production and
sales trend; and (4) peace time use of atomic
power unlikely
to force coal into the
background. Mr. Wormser is encour¬

Mounting

Antitrust: Help or

"coal within the foreseeable future
promises as much or more
than any other sources of energy/ and that it
produces more
Btu's per dollar expended than any other fuel;

Violence

future

—

that

'v bear

ship

children easier.
To

inti¬

the

and other free-

may push

that

will

Wormser

human

life

The

this

forces

the

atom

this

will

Wherein lies

God forbid

against

into

move

dented
can

strength

our

this

bring to bear that
not

only

each

deter-

time

experts

moves

'we

freedom

ple. Let us
develop our

are

that

forces

predict

rich

are

fortunate

resources

peo¬

and

managed

God-given gifts.
forefathers

our

—

;

the

lay upon
wilder-

into their homeland by sweat

toil.

and

Little

did

they

dream

then that under their feet lay al¬

most
♦An

the
1

New

endless
address

Interstate

York

coal

and

Wormser before
Fuels
Conference,

Mi".

Solid

City,

seams

April

Credit

STRATEGIC

Tenability

MATERIALS

GENERAL

•'

RARE EARTHS

Small Business Administrator
Opposes SEC's Proposed
Regulations "A" and "D" Revisions...

Ernest R. Gutmann Takes Issue With Walter E.
Spahr
anu a-rices
(Letter to Editor).
Corn

Gold

J. F. Reilly & Co. 9Inc.

Exchange Bank Issues American Depositary

Receipts for Shares of German and South African
Companies
;

that

Broadway, New York 4

DIgby 4-4970

Frederick G. Shull Discusses Canada's Free Gold
Market and
Devaluation Proposal (Letter to

Students Planning Insurance
Compendium for
Distribution to Nation's Colleges

ton, D. C., Denver and Salt Lake City

31"

....

Downtown

Manhattan Development Forums

Progress

Corpus Christi Refining Company'

Currently iri

Helene Curtis Industries, Inc.**
Gulf Coast

energy.

all, for the

employ

shall

As We
Bank

See It

and

(Editorial)

Insurance

Montrose Chemical Co.**

Pacific Uranium Mines Co.*

Cover

Stocks...

need

in which
resources
will

manner

these
in
large

part

Rare Earth

how;

advantages of industrial

realized

and

until

cheaper

available.

sources

The

making

but

wonder

metals

and

example,

zirconium

cannot

fact

such

that

use

further

are

These materials, relatively high-priced now, may becompetitive with other

tion

and

nomic

fabrication

reach.

Our

record

Reporter

Our
.

;

Reporter's

Public

page

Securities

A Potential Blue

Registration

Security

GENERAL CAPSULE

Offerings

Salesman's Corner

The Market..

and

35
•

You—By Wallace Streete....

The

seamless capsule
revolutionary patented

Security I Like Best..

Management

The State of Trade and Industry

•

Washington and You

Th«

•

Park

BROAD

ST., NEW YORK 4,

TELEPHONE HAnover 2-4300

Albany

•

Nashville

Boston
•

•

Chicago

Schenectady

•

HERBERT D.

Glens Falls

COMPANY, Publisher!

2-9570

25,

•

second-class matter

1942,

experienced

Company's

present equipment on
24-hour schedule with backlog of

New

equipment arriving in 90 days,

the

post

office

•

Febru¬
at

Serves

SEIBERT, President

Possessions,

Territories

Union,

Canada,

Other Countries,

1956

•

Dominion

States,

and

$60.00

state

issue

and

city

news,

—

market

news,

quotation
bank clearings,

etc.).

Offices:

Chicago 3,

111.

135

South

(Telephone

Bank

$40.00

Members

per

$63.00

year;

per

STate

Salle

industries

year.

Send

for

St.,

2-0613):

and

per

rate

Record — Monthly,
(Foreign postage extra.)

exchange,

remittances

for

for-

elgn subscriptions and advertisements must
be

mads

Report

growth

this

very

situation.

Quotation

year.

Free

while

Publications

Note—Qn account of the fluctuations In
the

Worcester
Other

diversified

Company is financially sound. Very
conservative capitalization.

$67.00 per year.

Other

(general news and ad¬
and every Monday (com¬

corporation

such

pharmaceutical, medical, food,
cosmetic, chemical and many

Rates

United

Pan-American

Thursday

vertising issue)
plete statistical
records,

brands.

New

worth

Every

of largest nationally

some

others.

Subscription

SEIBERT, Editor & Publisher
DANA

triple output.

Used by

advertised

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

9576

Thursday, April 26,

N. Y.

TELETYPE N. Y. 1-5

•

new,

Eng¬

Reentered
ary

Subscriptions
WILLIAM

CHRONICLE

DANA

Place, New York 7, N. Y.

REctor

Drapers' Gardens, London,
land, d/o Edwards & Smith.

Reg. U. S. Patent Office
WILLIAM

Members New York Stock Exchange

COMMERCIAL and

FINANCIAL

PREFERRED STOCKS

Spencer Trask & Co.

orders.

should

have specialized in

long

is^

process.

•

capsule field.

The

Approx. $2.50

•

Securities

Chip!

Class A Common

Prospective

Published Twice Weekly

For many years we

Los Angeles

we- are

Continued

1956.

Securities

Securities Now in

that
these
things are
happen, and sooner per¬
haps than most people expect,!t

combing the
surface of the earth with greater
intensity
and
we
are
dipping
deeper into its hidden areas for

inc.

40 Exchange PI., N. Y.

Direct W ires

Report

Utility

Railroad

indicates

day

Governments..

securities

Teletype NY 1-1825 & 1-4844

A. Wilfred May

bound to

Each

markets

Mackie,

HA 2-0270

eco¬

date

trading

over-the-counter

Philadelphia * Chicago
Our

com-

within

350

Request

illustrates

this point.
come

—

....

Observations

new

titanium

maintain

Singer# Bean

...

News About Banks and Bankers

abundant

Request

Funds

NSTA Notes

of energy are

sparing

Mutual

Mining Corp.

**Prospectus

than

Bargeron

Indications of Current Business Activity

we can

for

♦Circular

From Washington Ahead of the
News—Carlisle

the

automation,

;

Leaseholds, Inc.

look

can

Philadelphia, Washing-

Yale

Einzig: "British Chancellor's First Anti-Inflationary
Budget".. 24

solar

Teletype: NY 1-4643

Direct wires to

Editor)

Regular Features

fortunate

onto

They turned

Consumer

George

(,#4>

Chemical

these monly
used
materials
should
In the early days low-cost energy bring their produc-

things that grew from
its surface.

and

The full

in which

land and took with their hands the

mess

Lenders

;

bring to full frui- '
amazing technological'
developments of this modern era. •

land,

employed

moved

for

Dealer-Broker Investment Recommendations

tion

forests, minerals—no na¬
bountifully endowed.
Look back through America's his'tory and you will find that the
welfare of
its
people has ever
manner

RESORT
AIRLINES

;

determine

been tied to the

AIRLINES
H

MINERALS

of oil and gas,
have almost inexhaustible

rapidly

water,

tion is

Coming Events in the Investment Field.

RIDDLE

-'V-/'

cherish, protect and
way of life—it is our

asset.

'/■

"After All, Why Export and Extend
Foregin Aid?"
—George W. Wolf—

that

pressed to meet the

deposits of coal, that

Furthermore, we
are fortunate in having all around
us
the things that can make life
good. Let us count Nature's bless¬
ings and make the most of them.
greatest

and Private Transportation/'

forward to eventual harnessing of
the atom, and to the possible use

people

but

i___

Policy and Russian Economic Offensive

discoveries

new

unprece¬

priceless heritage

our

NEW YORK

Companies?/

Hoffman.

Privacy

on.

needs of our rapidly1:

indeed

them
With

Survival

—Edwin

*•

still have undeveloped hydroelec¬
tric sites, that we can count on

sustained
economic and social progress?
•

;

throughout the world.

may guarantee

survival

Oil

Common Fallacy—Roger W. Babson

found growth of the economies of
the underdeveloped
areas

as we

What

American

free

our

time

challenge?

coaxr

which has doubled every 10 to 12

other is frightful to comprehend.
'

V —Paul G.

expanding economy.
One needs
no crystal ball, certainly, to recognize the following facts: the explosive growth of population, the
popular demand
for
electricity,

eventuality, for all-out war
men unleashing the awesome

with

—George K. Whitney.

.•

amazing age of technological de¬ years, the automobile vogue which
velopment
have
never
been doubled our traffic volume be¬
equalled. Yet we face the grim tween 1940 and 1951, the vigor of
spectre of an indefinitely long and our own free enterprise economy,
bitter cold
war
with predatory me spectacular comeback of the
political forces—perhaps even an-^ European economy, and the new¬
other armed conflict.

Threat

amount

able

are

materials

total energy

continued growth and for the bet¬
terment

will be hard

fibre and

phy¬
sical strength
of every person in this wonderful
land of ours. The opportunities for
E.

fuels

Pressing Energy Needs
Most

test the moral
Felix

WALL STREET,

Telephone: WHitehall 4-6551

Miner

our

history, and a
perilous time,
one

East:

Obsolete Securities Dept.

mine how many more buttons we '

promising
.

future.

that
these

irom

time

fossil

They mean warrhth, '
turning wheels. As a

the

power

tries.

coun¬

;

these

now

of fact, our standard of re¬
living is geared almost directly to
the manner in which we exploit'"
these energy resources. It will be

nation

This"

Middle

sell

us!

Expanding Economy

Hindrance—Hon/Stanley N. Barnes—____

Investors' Responsibility

matter

•

world.,

light, and

this

great

the

spell energy.

for¬

tunes

mate relation-

economic

"—John

vast pools of oil and gas that one
day would make the life of their ""

should

Confront

Charity its. Tax Dollar—Archbishop Richard J. Cushing.

future

Pressures

—Philipp H. Lohman

aged by increased automatic equipment sales, the fact that

: There
are good reasons to be¬
lieve that the coal industry is on
the threshold of a new and brightT

Price

enough to

junk

revived;

New

York

funds.

General Investing Corp.
80 Wall St., New

York 5 • B0 9-1600

The Commercial and Financial Chronicle

(2024)
*

ethical

Dominions."

in development

and,the WLA

Output

Carloadings
Retail

State of Trade

these earnings
Over
a
dozen
major
ethical
countries drugs create most of the earnings
among
proprietary drugs.
First out of the foreign
their traditional products seem to served. In the three years, 1952-4, in this division, the best known
sell better with each passing year; over 80% of overseas net income of which are Gelusil, an antacid
converted
into
American absorbent, and Peritrate, a? pre¬
and secondly was
:expansion
of, funds. »About %* of foreign sales ventive of angina pectoris. New
are
made
in
England and her ethical specialties are constantly
operations- i n
the

Production

Electric

Trade

Commodity Price Index

fective in bringing

two discernible trends

are

Steel

The

equity providing considerable
against the incipient in¬
flation everyone is talking about.
defense

Enterprise Economist
There

.Thursday, April 26, 1956

U. COBLEIGH

IRA

some

Thus they

Warner-Lambert
By

«**

regularity.
should enjoy a measure
serenity in their possession of
with

creases,

Food Price Index
Auto Production

and

Total

•

Industry

industrial

production", for the nation

high peak in the period ended

re¬

Business Failures

sustained at

was

Wednesday of last week. Output

of steel, electric power, automobiles and petroleum for the week

'■'*
of Warner Hudnut search" program, .amounting ; to*
in question was close to that of the' preceding period." Over-all
Company in 1955 (on more .than $2 million :a year,, is
Warnef-Lam- a share for share basis), creating heavily devoted to ethical phar-.
production, however, moderately exceeded the level of the similar ;
week a year ago. > A
be r t .i 1.1 u s- Warner Lambert, was designed to maceuticals.
." pf.v: ; '"-■■a ;
/'X. V5*' .t'Vi-V V '■! V'V */•
i :'
i It
was noted
with respect to the employment situation
trates, and accomplish several things; (1) to
In addition to this annual alio-/;
that there was a 3.3% rise iu.initial claims, for. unemployment incapitalizes on; achieve operating economies
cation to research, a $7 iriilliort *
these trends.' through consolidation of separate
surance, but the level was 3% below, that of last year.
Increased
improvementprogram is under,,
seasonal layoffs were reported in the apaprel, leather and trade J
,T h e hard divisions; (2) to maximize total,
way including new research and I and service industries. The most noticeable
rise in claims occurred
core
of earn¬ sales efficiency through Lambert's
administrativefacilities
at
the
in Illinois, Tennessee and Indiana?-aV s
ing power is superior. coverage of American
^ • 4 "
;
Morris Plains, N.
J.; plant, and a y
Initial claims for state jobless pay dropped by 50,900 to 224,800 J
derived
from and Canadian markets, and War¬
new
manufactory at Lititz,- Pa.
in the week ended "April 14, the United States Department of
Listerine An- ner's proven excellences in for¬
for
the production of
toiletries
Ira U. Cobleigb
Labor's Bureau of Employment Security reported.
t i s e p t i c
eign distribution;
(3) to build and cosmetics. These should add
It stated that 43 states reported reductions in initial claims.
(which grosses stronger working capital; and (4)
to over-all efficiency and
bring
Some states, however, had seasonal layoffs in apparel, textiles
over $10 million annually), Rich¬
to increase the earning power of
the company closer to a logical .•
and leather, as well as new job separations in the auto industry.
ard
Hudnut
toiletries
and
cos¬
ethical drug divisions by virtue
major management target—a 20% J
First claims for unemployment compensation benefits a year ;
metics
including
the
"Quick" of larger available funds for re¬
pre-tax earning ratio.
earlier totaled 229,600.
home
V:
'
permanent, Sloan's
Lini¬ search, and the employment of
The
management is well re- ;
In the week ended April 7, the total of workers drawing job¬
ment,
Pro-phy-lac-tic
tooth broadened world wide sales out¬
brushes and hair brushes; and lets created by the merged sales garded, and the board of direc- • less pay rose by 6,300 to 1,376,000. The total a year earlier was
tors includes not only men long c
other plastics including dishware, organization.
1,503,300.
'Vw-'
'"-v"
ii
The
addition
of
is

drug' field

industry wide.

The merger

and

Lambert

■

;

radio

Listerine

cabinets.

and

Emerson

Drug is quite consonant

has indeed proved to be an amaz¬

with

ing

objectives.

growth, with sales
gross rising 10% a year for 195054, and about 13% for 1955.
item

To these well known and

widely

advertised

■

products just recited,
something new has been added—

;
;

'{server,

there

some

natural

To the casual ob-

Bromo Seltzer.

might seem to be
affinity
between

Listerine and Bromo Seltzer. Now

there is a corporate one, by vir¬
tue of the merger,,.just approved,

•V

of
■,

Emerson

Lamb(ert

into

Drug

the

first

sales

two

dependable

earner

sales

annual

the

for

past four years averaging above
*$15 million with net of about $1
*

million.
In

with

most

drug

companies, foreign sales are on a
large scale. With WLA, over 30%
of

consolidated

from

total

overseas.

percentage
comes

from

Lambert

1955

45%)

section.

been

are

larger

(about

net

this

has

sales

even

Warner

especially

representatives of eminent
banking firms, which firms are
themselves
substantial
equity- /

ef¬

1955,

jresults for WLA showed

comparing

Warner Lambert '

such

panies

Myers,
lower

or Bristol
observed that '

will, be

sell

much ;

down

$3.46—up

per

from

share net

$2.92

(2%, in addition,

stock

last

dividends,

paid

was

December).

Warner has
what unique record. The

About

someL

price-earnings ratio—about

common

appreciation

ing.. By

in each of the past

other major

five

years.

history of

its

growth

receiving around 60% of net in
cash, WLA stockholders should

better.

continue

should

expect

dividend

in-

WLA

mergers,

tivities

that record, and with a

been

has

Stock of Walworth Company for each $1,000

sonable

good

that

office

exam¬

(and the

in its

zoom

can

predict

appearance that
Warner Lambert
is
right in the middle of a big trend,

any

so,

favorable

justifying"

constructive view¬

point regarding WLA shares.
.

converted into Common Stock by

sur-

sur¬

Old

Common Stock.

and
tures

brokerage firms stating that they
for conversion

are

trust

companies,

surrendering Deben¬

behalf of the holders will be
accepted.

WALWORTH COMPANY
G. E.

little

than 50% of the book-

step-up in

inventory accumulation during the first two months

1955.
major manufacturing industries

—primary metals, machinery, transportation and chemicals—ac-;
counted for the rise in stocks during recent months. Most of the
climb in backlogs of unfilled orders also has occurred in these
industries, the article further noted.
In the automotive industry a 3.4% reduction in United States
car

output

was

forecast for the past week by "Ward's Automotive

Reports," with a further downward "realignment" for May and
June.-. •" ,t
:■ :<
'
•. ,<•
' • ::
t ■
1 •
The cutback in factory output, "Ward's said, reflects adjust¬
ment to the Spring auto market but in no way jeopardizes indus¬
In

„

five year range between 14% and !

43%.

Investors

common

today

purchase

may

looking
with

this'

at
view

find of' especial in- j
yield, the notice¬

able

to the close of business on April
30, 1956,
office of Walworth Company, 60 East 42nd Street, New

Written requests from banks,

try plans for the second-best January-June car output in history.

;

Capitalization,
prior
to
.the
Emerson
Drug- acquisition^ was
$6,411,262 in funded debt, and..
2,022,601 shares of common with a ?

for conversion prior

York 17, N. Y.

The review reported that four

terest the 4.65%

the

rela-y

which is another factor

Debenture

surrendered be converted into

is.

equivalent

...

this year compared with late

•

spending-

increase, the report added, and inventories of retailers for

the rate

"isolation*

say

Savants

their inventories at

However, the review stressed, there has been no

ances—personal

This is

about 40%.

com- -

from 12 to 45 almost quicker
you

looking ahead to

steady " rate, the United States Department of Commerce
reported.
;
■
*
At the end of February, the department's monthly magazine,
"Survey of Current Business," noted, total business inventories
amounted to $83,500,000,000—about $6,000,000,000 more than the
level of a year earlier.
About 40% of this dollar increase, the department pointed out,,;
could be attributed to higher replacement costs.
Inventories of
value

shaving and hair lotions, toiletries,
cosmetics, etc. Witness the star¬
tling sales and earning gain of

booth").

shipments despite high operating

rates. Smart con¬
strong fourth quarter and want to
get on the order books to avoid a year-end pinch, concludes "The;
Iron Age."
are

manufacturers accounted for

purchas¬

in personal appearance

For the convenience of holders, Debentures
may be surrendered

by^
are.

rapidly grow-

consumer

of conversion changes to 52 shares

Colony Trust Company, 45 Milk
Street, Boston 6, Massachusetts, with a written request that the
Debentures

plants

some

overall basis, new steel business is running from 20 to

of 43.

instead

the most

now

than

This

the date of surrender.

the

later

compounded

Businessmen continue to build up

selling at
quotation

rate

interest accrued

Debentures may be
render

Blast furnaces at

tively

WLA

today's

net,
50

above

■

higher

common were

35%

sumers

that, by 1965,-the U. S.
public will spend $2.7 billion per
annum
just to keep up appear¬

Debenture.

30,. 1956, will be

rendered

will

rea-

much

expect

command

times

mon

share of Common Stock,of $19.23.

receive

situation

being operated on borrowed time.v
wv
The apparent easing in cold-rolled and hot-rolled sheets is',
scattered.. Some consuming areas have been able to build inven-;<

ac¬

share of Common Stock of $16.78.

The holders of Debentures surrendered for conversion
prior
the close of business on
Monday, April

entitled

ac-

per

of Common Stock for each $1,000 Debenture.
per

this

drug companies, and
ratio

Thus,:over time, it is

One

The Convertible 3*4% Debentures of Walworth
Company may
be converted prior to May 1, 1956, into 59.6 shares of Common

price

and

vacations and the hot weather'.

;

characteristic of the

ing sections of

May 1, 1976

mak-

quired the greater breadth of

Revlon

to a

problem

of the progress

Lambert

Warner

dividend here has been increased

Notice to Holders of Convertible VA% Debentures

On,May 1, 1956, the

full

million which

$86.3

ing is

dend

WALWORTH COMPANY

price

strike, steel production will slow down this [
Maintenance, it adds, is becoming an increasingly serious
or

in 1954
(including pre-merger operations
Lambert). These earnings are
plenty of coverage for the $2 divi¬

sales

would

without

summer.

American, Home

Lambert

Warner

equivalent to

equipment manufacturers.
With

Products, Sterling Drug,

ple, WLA

and

with other proprietary drug com- ;

price-earnings ratio. If for

Due

Biggest question mark in the steel market picture is the third

quarter, with some steel people worried over inventory buildups
as a hedge against price increases and the possibility of a strike,
states "The Iron Age," national metalworking weekly, this week.

..times.._ The^ .shares „• of the >
others are quoted in the market ; ?tory of cold rolled, but ;in,the,same areas, hot rolled is being used',
as it comes from the mills.
at.between 14 and 18 times earnOffsetting the situation in sheets is -*
the crisis in plates arid structurals. Even with imports, there's not.
ings.A.This difference in investor
acceptance and market valuation L enough of either product to go around. Many construction jobs;
is, no doubt, due to the lack of ; have been delayed lor lack of these two item§.

■

common

operations

but

creasing in those lines delivering
higher profit margins.

carried

gross

5% and pretax
profit margins had advanced to
over 16% %.~ From this we might
judge that sales have been in¬

, relief
from headaches
(variously acquired) to millions,

been

months

nine

were

with

with, actual

identified

■j bringing
has

corporate

is, of course,; entirely too
holders in Warner Lambert. It is
■
for the major benefits of
always
reassuring
to
perceive v
This attitude, it asserts, is not justified despite the uncertainty
these
mergers
to
be
realized
that the men who are running a
over automotive, since other major metalworking industries
are'
although some indication of the
big company also have ah abiding • moving toward expansion.
These include construction, freight
long-term corporate gains may
stake "in
its
welfare,
through • cars, oil and gas, appliances and machinery. The steel expansion be gleaned from the fact that, for
shareholding.
J '
V; program alone has given a major shot in the arm to machinery;

net

range

i share^,* of Emerson for one of
Warner. Emerson, in addition to

long

early

Warner-

basis

the

these

owner-management

pay

higher

after year
to

earn

social
your

and,

them.

dividends,
more

year

importantly,

Whether

tough

week-end
sends
you
to
medicine cabinet for Bromo

Seltzer

McDonald, Treasurer

factor,

the research
program, and in par¬
ticular the
disposition of WLA

or Listerine, or over zeal¬
gardening compels application
of Sloan's Liniment, you'll
prob¬
ably keep in touch with WLA.

explaining the softened production-sales outlook, "Ward's"'
that

stated

low-priced field producer has pared its average

one

output for May 14% below April compared with an
originally planned cut of 8%, a trend other low and mediumpriced field makes are expected to follow.
It added, the Spring auto market upsurge thus far, while still
near record levels, simply isn't developing as strongly as antici¬
daily

car

pated. This is forcing tighter control of record new car inventories.
emphasized that prospects for an orderly 1956 model cleanup
bright.
Scheduled for production the past week was 154,725 cars and,

remain

trucks,

3.5%

below

prior week's

the

160,280

units.

United

plants built 211,998 vehicles in the same week last year,
according to "Ward's."
The
statistical agency added that Buick, Oldsmobile and

States

Pontiac

programmed four work

days at their "home" plants in

Michigan the past week, with Chrysler Division also omitting the
scheduling of assemblies on Friday last and Monday of this week
at Detroit.

ous

Car output

alone last week was scheduled at 131,449, off 3.4%
I

Continued

on page

Volume 183

Number 5528

The Commercial and Financial Chronicle

...

(2025)

cdu

idivc

tional

Chairman, Department of Commerce

•

Vermont Professor

...

the

nual

a special report of some
today a half million dollars or a
doings at last week's An- million dollars, or that a singer
Meeting '-op. the nation's without a voice makes a half mil-

;

" American Tel.
V-& Tel, share>

holders
i

d, "the

s s e

'.edifying

too

nervy for me to ask such

tion?

That's all."

not

company

much?

;

ques-

the

salaries

officers,
cize

but

the gangster,

the

„

Hoodoo;for Our Grace.
Madame Stockholder B (encore,
speaking for a resolution to;- televise the annual meeting):—J-"The
•

management, the
forgets to criti-

sometimes.- the

underworld,

co-propoptent

union; gangster

Mrs.

e re s e

Noble, who is usually at/these
meetings. : Mrs. Noble owns
as
much stock as 15 of our; 19 ^irec-

who. today wants to destroy, our
country, who wants to take away
not the Bill; of Rights, our security,; tors.v Only rone thing'^ceptv her'
•; the least
im?- so that, our children and grand- 'away today*/ She is in Mfcnacb for *
portant impli- children will'curse us."
.the- wedding.. HowevefV, she* is
i-qations- of this Y i. v '' -/VY'.llY*" ; Y-T:from
(sic)
Reno, Nevada,; and
^./expanding ; From the. Younger Statesman ; there are many stockholders out

•

per

wonderful

■

this

expanding

/.largest corporation—submitted by lion dollars, or an entertainer who
"
'
'
"■
;. your -colum- is disgusting makes a half million
Y/YriSt. for}, 'the dollars? As soon as Mr. Gilbert
■VM; 4 0 7 ,6 2 5 comes into a meeting he criticizes

pro-

;ceedings.
T Surely
;

•

capacity problems; expects big-labor wage demand this year,'.
and marvels at stock market failure to be even higher at prospect of renewed price pressures.

This.is
of

;

H:—"1

boy blowing up a balloon. It was
beautiful. It got bigger and
bigger
until it burst. So I pray to God,

capita standard",of living,
^
the record capital expansion which acts as a cause and effect ;-.V J
--V of threatening or actual
price increases, and consumer propensity to save'less and spend more. Analyzes pricing, cOst/.;
rising

Stockholder

STOCKHOLDERS' GAMBOL

terms

and services to maintain

Madame

understand anything of big
business, but once I saw a little

—

By A. WILFRED MAY

economic

one

•

and Economics

continued pressure on price the
problem and advises more tightening
•"/'* up due to increased private capital and government spending,
net foreign
investments, and consumer expenditures. Dr. Loh'-r: man wonders: (1) where funds for; projected capital
outlay*
■/:*' will come from; (2) whether increased output will be at
puri
ported lower prices; (3) if price will continue to serve as the
free market-s impersonal resource
allocator, and (4) whether
inflationary consequences can be avoided in view of rapidly
increasing population's demand for. public and private goods

number

■

warn.

don't

University of Vermont

you

thunderous applause)
Anti-Growth Stock

Expanding Economy
By DR. PHILIPP H. LOHMAN*

;

American

■

tit

Wilfred

(

May

in-

t ion,

;

Mr.

stockholder

Junior

jn Reno and all through the counr
try -who a.re deJ?rlv®d of "eeing

(John; the

Gilbert•-brother"Well,

.theTown Hall here is
the other half of the Gil- .our

annual meeting.

••

The Keynote (?)
Stockholder Eye:—;"I

agriculture.

size

The
>

the /nar; industrial

uons
tion's

income
income

aownrigni
downright

capacities.

day corporation presidency.

What

'"'A

is ine;£UDnessVVn.''*1
the -glibness

amazing
amazing

hm;:

;

apd"

1 have

ness'

that

kind'of"
heard

never yqt

say .that you

cannot accomplish

them'at these meetings. -You

is determined with which
articles
are
savin"1
Madame
lifer* J?•
Vr1"?- W^ .wnicn articles are sayiry.^ .jyiaaume StockholderA (licensed come for.th /with, constructive iW0^t_accomplish
oioLKrioiaer a uicensea
tho'-"criHckm
J|P^/by private that /this phenomenal industrial /practical nprse):—'"I can't speak >;rl«cism,ine criticism that has except as they do
tnat nas.
varic
4hPn
? s^,di,ng. Ml'e??a."s!?.n.
that industry .loudch.A lady doesn't shout. What fXr °inTu °«m""8 "S.?") ?/ and make a' few

anythingrhere^
in London and

„

thpv

art

speeches:

and

the

'We

British

;

let

They

nni

The
them

now
t efficient .'things,, it is too bad" i //.'[Then
w
consumer s'
iat
tools.";(Quoted from U. S. News after a compliment by her to the brought up that we have to pay- :ietti^#:Sl?w !°ff steam; which
price
-expenditures;.1, and- World Report,Marcfh 23,1956, Gilberts' courage was ruled irrelr
.^e',,ma^considerate.
.»

Hment; private cost

because " of

*-•

are

italics

government

mine.) I n d u s-t r y. might ,evanf.]'H
Another gentleman
nroduce some items at lower cost,
produce some items at lowpr post."\eomnlimented von on vonr build'complimented you on your build
Whether that will and can be -Ing,- .You didn't
object to that

snendine: and
spending; and
by the amount

■

fore-

Relieve -in that. .they
Withmanagement

sighted

don't

the

market

price.

Philipp H. Lohman

tant

in the ^icture^In
the^ Ltionaf exoendi-

variable

each

ture compartments
*
r

nnint

,—

■

w'pic

hiaW

too

much

being

too

demanded

within too short

„

is congratulating you, to congratu-

the nation's steel-making capacity late

V„7 much di°
Too "8.^ is

fast.

industry -is

about adding 15-17 million tons to

•

P<TDDa°renflvelw1pVaerp'trvinff

When they split it
?• w®me(^'s shareholder organiza- formation about the copper martion):-"I should like, with your ket") 'You have hadchance And* then if 'they
talking indulgence, since everybody else t^alk."
*
" C T
V. v
dividend'a dollar,

Problems

Stccl ^ustrys Pnce Problems

indicators'.'lThe steel

the

Steel Industry's Price

over

the next three

The bill

years.

you

serving, I believe, a
However, as it was

bite of lunch.

•>

;

"Let Us Eat
Madame

Though that

Cake"

Stockholder

may

ten for one.
makt
.v../

some

hence;

the
-7

time

For each share, four times

F:—"The

a year,
A quarter will be worth 25 cents.

the

time

of-living index presents

deceiv

New

•ing stability. The prices for farm

Representatives '

For Muir fnv.

Corp.-

SAN

tense

competition which prevails '
the retail level has forced re-

tailers to absorb many of'the
cent nrice increases

re-'.'Commission

Undoubtedly

this price squeeze goes a
long way
to

Y^k^^he job must be done is

is also active brand

Continued
the

boom,,There

our

rivhlry in

price,

increases

manufacturer's"

saler's

level

cer^

will

; on
whole-

and

eventually

mentalagencies

will farm

nor

pay

prices decline for-

Dprnands
uemands

pvpr
ever,

for
tor

on<?t

living

cost-ot-iiving

and

increases

productivity

wage

increases, a good many of
them more of an anticipatory than

achieved nature, coupled

an
an

insufficiency
make

soon
use

Mr.

Allan

saving,

clear

very

with

will

us,

are

govern.valarmed i- at:/•

■.serious
proportions
ana
agm^
at least, regional P^ce prob-

by the government for the indus^

nrovide the

neces-

trys failure to provide tpq neces
saiY sieei*
Steel

liked

hardly

have

borrow money.

accuse

loaded with

Sprout's, President point.

gradual

ice

are

such

unaware

price
that

speed

the

prevents

inflation."

whizzing

over

they

thinness

them

from

the
are

which

falling

through.

never

One

can

them of being ovdr-

bank balances at this

True, heavy depreciation
provide a sizable

estimates

nilnfc
plants
a

new

business

h
and

That

increase

these

for

whopping 22%

the

over

1955. But it is
at

snpnriinf?

business spending for
equipment will reach

high this year—nearly $35

billion.

one

figure,

record

year

thing to marvel
It

quite

an-

other to wonder where the
money
•An address
by

Keene,

expansion
Steel

million
tion.

cash for

New

Dr. Lohman before the

Hampshire

Rotary

Club,

projected

capacity.

had

available

Sale

the

steel

in
1955

Big
$300
deprecia-

from

additional

stock

would dilute the equity of present
stockholders

According to recent government

•"

v. ••

•

;

ap-

the

Cornoration

(

Uncertain Debut

municipal department is

' representing '.Muir

„

uorporauon.^

now

Investment

Corous ' Christi

i^prpus^ L.nrisu,

at 305 Soutl?

- ^ M^Stockbolder G:^"1 am from
"He Weehawken,; New Jersey. This is

;

gentleman

does not rehis invest- little bit for

much

Very

—

and

would

further

tion

allowances,

but

will

stock-

holders consent to a continuation

^u^nf a^?^ oef ^ar^Tncrease
jn

profits

"av^fy

last

year

Steel

rolll g in at

COTltlTLUSCl

e p

OTl f)CLQG

as ne

leaves

Just

that

and you

Hiegel, :&

Co.# New York
April 20 of a
heart ailment at the age of 54.
S
ner

City,

passed

away

but

-i

■

jt'

WQuld

thmk

offended.

wlfe

You

remem-

Rip Van Winkle's wife was a
SCold; my wife is a real pal to
me.
Further, you will find that I
have not been asleep.
I am
hot. one of those getting the pen...

sions

which

shareholders
years
eVen

have

sleepless

caused

suffer

get $2,500.

Bo water Paper •

Imperial Chemical
and other

two

•

Unilever N.V.

British Petroleum

foreign securities <l '' M 5> *

several

nights. I don't
But I am

Bought—Sold—Quoted

...

associated with

not

clique of
habitual management hecklers
who

have

any

acquired

several

seemingly

hundred

for

democracy.
js

their

the

They

few

Reports available

mean

privilege

DE PONTET &

to
l

Mr* Stockholder D (speaking on
*be Pr°P°sal ^or. a Pe™^or]

Hhe$ public

holder "representative"] ever see
mentjoned j
the newspapers and
press, that a wrestler makes

Ol) the

request

CO., INC.

Members New York Stock Exchange

and bore us."

GUbert

corporations,
purpose
of

really

democratic

annoy us

0^^?'it>S thl ^ MT

?ft°c^°r]d"■f.',^nnf

R^yan Winkle 'I peraonalTy don't
"
^7?^;

mind

addition to deprecia-

long

me.

Mr. Stockholder C-I—"The previous speaker referred to

complicate the task of financing harassing managements and borexpansion out of retained earn- ing shareholders.
These
ings The ]aUer are> q£ course>
ban(Jy about the word
available in

lady saysj give

ber

producers

amount

less

qUjre
'

wan?5 re.ce.n"y' ^"a^ no ®.^cuse.;
would be taken by the public or

Bank, phrase, "the danger of
The skaters

the

say

Mr. ErnesLWei^ Chairman ments."

allowances

'>"■ •' :•

;

shortage^Car arp-J Wi RlpV Retarn- *
runnrng ^at^less- than ,-., Madame Stockholder

js;,

of the New York Federal Reserve
more

Y,-

(Thunderous

^ get."
P,ause) ;
:

(SS. j- rpDr„ffi„ti/i
half, of shop capacity-because of ,-fa ,pnceding
participant] ; re- the first time I.ever came to any
lack ^of steel. There are now 145,- minded me of Rip Van Winkle, -of these meetings, fsic] I don't ine ipm in New Jsraunsreis,-lex.

felt by consumers. They certainly
cannot be absorbed ad
infinitum

other

and

the freight car

explain rising business failures r durtion

In the midst of

doesn't know when, and some of
business people have-ulcers."

ANTONIO, Tex.—Fred D.
Malsbury, Assistant Manager of

SBtc&et at t/Come and.jd&iead"

40 WALL

STREET, NEW YORK 5
Telex: NY 326

Telephone: Dlgby 4-1640
7, Avenue George V, Porii, France
Hotel Carlton,

Cannes, France

rue

de la Cil6, Geneva, Switzerland

Palais St. James, Monte Carlo, Monaco

The Commercial and Financial Chronicle,

(2026)

To cull

Ant'trnst:

Help

Hindrance

"Who

By HON. STANLEY N. BARNES*

Department of Justice
r

Antitrust Division head states

probable market effects

are

won't

the

smaller

concerns"

Bethlehem

and

and
one

and the importance of free competition in

y tion;
*

and

growing

effective

interest

shared

our

you

antitrust

how

and

this

icy

Why???

activities of the AFL-CIO???

differs

from its

does
Office
cognizance of the 'criminal'

take

Building on

policy,
then, I shall
go
on
to try

Why??

""WR

Protect the criminal

icans,

realize,

law

effective

stake

With

five question marks.
Law's Application

antitrust

These laws re-

crucial

careers

Section

open

result, the essentials of antitrust
stand proclaimed by both political parties.
a

General agreement on

"nothing
trust

let me caution, inpst not
obscure important differences in

but

making real strides either toward

cracking

restraints on entry, or
price.
Thus, our

controls

over

goal has been a vigorous cracking down, without fear or favor,
on
hard-core antitrust violations.
Second, because businessmen and

,their lawyers know

secure

this

first

admit

that

uncertainty and contradiction exist), we have not sought
a
hasty certainty at the cost of

gareful

deliberation.

group

study
of 61 members (but four of

whom

were

selected from govern-

ment), representing

fair

cross-

section of all antitrust views, has

major

surveyed
the

Sherman

and

decisions

and

its

made

after

months

study, and thus helped
moid

ume ago
time

nation

out

letter

Club

Some

beginning!

vigorously

commercial competition which

has

not " specifically

•

From January, 1953, to
date, the Division has brought 10
cases in \yhjch a unioij was a defendant and one in which a union
was a coconspirator.
This threeyear record

cases

stands in

contrast with the seven-year rec-

ord from 1946 to 1953 of only 16
cases
naming unions as defendants. This is what I mean by vigorous
or

enforcement, without fear
favor, against all groups alike,
..

Bfy°nd application of antitrust
° ^boF UI!10n activities, many

PetratiVinn<1«fre*?,0U^i°U. a m!nT
rP„,r^?„n. '
ay
^.ct
•

New

York,

April

efch
*

by Mr. Barnes before lb.
of

moved

policies Against bigness? Against integraoccasionally tion of business? The answer to

activities.

our

has

these

the Attorney ueneral reme Attornev General re-

'An *ddr«,s

Economic

•

businessmen

question

ceived

intensive

coherent antitrust policy.

Carrymg
some

Acts

report

our

exemptions enacted by. Congress, this Adminis-

under

Clayton

393-page

these

shielded.

such

e antitrust Haws.

Despite

Congress

law. apd policy (and I would
the

foJ the purpose of .mutual

Finally,
foggy unsettled reaches

those

areas

the existence and operation
' .V organizations, insti-

strike down those union restraints

each enforcement dollar.
in

contained in the antishall be construed to

tration

results for

r
.

difference
in
policy
should
bring
greater
court
success,
pre-trial
■^settlements have jumped sharply,
we

Act

help, and not having capital stock
?? conducted for profits, or to forhid-or restrain individual memsuch organizations from
lawfully carrying out the legiti"^te objects ^thereof; nor shall
auch orgamzatior^, or the memJ>eij thereof, he held qr construed
.he illegal combinations or con¬
^piracies in restraint pf trade un-

with
my immediate predecessors on at
least three scores.
First, cases
brought have aimed not at mere
perambulations

Here I part company

doctrinal

Clayton

laws

antitrust

goals,

means.

the

declares, for example, that "the
labor of a human being is not a
commodity or article of commerce." It further provides that

and talent, a
free society. As

skills

norm

16,

question is a resounding
Again we have the problem

enforcing) what Congress has,
its wisdom given us, not the

fbUt the Clayton Act.

^et me Slve YOU a specific prob-

lem and

our

conclusion.

the

pro¬

posed mergers of Hudson-Nash,
Packard-Studebaker. There were
then

three

smaller

and
several
majors in

major

The

concerns.

than 85% of
leaving the smaller

important, it would; in¬

equally
crease

concentration in the hands

of two

companies already industry

the\ com¬

petitive - spread between the
merged companies and their
smaller rivals.
Were

not to take a

position

against the proposed BethlehemYoungstown merger, I pose the
question, where would we begin
to stop mergers in the steel in¬
dustry? If the Bethlehem-Youngs¬
town merger was

approved, solely

still larger,
fail to approve any otner

because U. S. Steel was

could

then have

broader asset

basis* might economize by elim¬
inating duplicating facilities, se¬
cure
better dealer representation
and sell more complete lines of
cars. It should be emphasized that
these companies merging were the
smallest
in the business.
Thus,
their
consolidation
spelled
no
competitive disadvantage over
smaller concerns, for there were
none.

Vital

legality

our

determination

intended ban?

short, stopping steel mergers
seems
the best chance to

•

now

problem—
of undue concentration — which
avoid the troublesome

Act seeks to prevent.
might

the Clayton

This undue concentration, I

add, is becoming more and more

sharply recognizable each day in
the automotive industry.
Business Expansion

misunderstanding

Such

of our

policy has perhaps in¬
spired a third question ofttimes
merger

I emphasize, con¬
any
merger's addressed to me: Why are you
probable effect, not only on the against business expansion? Busi¬
merging
companies'
ability
ta ness may expand, let me explain,
compete, with their giant rivals, by at least two prime means —
was,

sideration

but

also

remaining

any

smaller

companies. The merger,
by- increasing the smallest firms'
strength, created far more com¬
petition than it eliminated.
Absent competitive: disadvantage
to smaller

rivals, Congress beyond

discrimination,
or
li¬
by, and , used
within, the limits of law, (includ¬
ing patents on one's own inven¬
tions, or franchises
granted

merger

internal growth.

enacting Section 7 of the Clayton
Act Congress, not the Department
of

set special rules to
expansion by merger.

Justice,

control

Section

Thus

acquisition

proscribes

any

which

merger

conferred

directly to the enterprise by a
public authority. (Emphasis supplied). These principles, designed
to protect business efficiency but
preserve
competition guide the
Antitrust Division.

Consent Agreement Advantages

Beyond
labor,
mergers. and
business size, businessmen finally
ask
to

what this Department

hopes

achieve

by entering into con¬
judgments in civil antitrust
cases.
In response, a good exam¬

sent

ple is the consent judgment en¬
tered
against Eastman Kodak.
Let me begin with a "Wall Street
Journal"

article, dated Sept. 30,
1955, captioned "Technicolor Says

It Will Process Color Film for
Amateurs—Entry Into New Field

Follows

The

Consent Decree."

Kodak

report introduced by
these gratifying headlines pointed
out

news

that under terms

trust

consent

decree

anti¬

entered

last

spring,Eastman
Kodak
had
agreed to permit the processing of
Kodachrome

Kodacolor

and

film

by independent laboratories.

The story that led to these re¬

sults, for purposes of my telling
tonight begins about 15 months
ago. Then the Antitrust Division
filed

civil

complaint against
Kodak at Buffalo, and
simultaniously entered a consent
judgment, requiting
Kodak,
among other things,
to discon¬
tinue tying the sale of its amateur
a

Eastman

films

color
these

its

films.

processing

Unlike

these

small

amateur

black

white film, developed

clusively

Possibilities

and

permanently

without

censes

only would this proposed merger
eliminate
competition
between
Bethlehem and Youngstown but

Hudson, might revitalize these
lagging smaller concerns.
They

maintained

Youngstown to combine in order
to compete with the 80 smaller
steel companies, most of which
are not even integrated. Thus, not

and

ciency, (including scientific re¬
search), low margins of profit

for Bethlehem and

need

was

proposed merger that resulted in
meager 14.%.% mar¬
less than U.
S. Steel's 34% of
ket share. By the first four months
United States production? Could
of 1954, however, the majors had
we permit Republic, National and
jumped to almost 95%%—while
all 23 of the fully integrated com¬
smaller
producers'
share- had
panies smaller than the first 10
shrunk to a bit over 4%. In 1954,
to unite? Or should we permit the
some
of the
smaller firms ac¬
smaller 23 to merge with Kaiser
tually operated at a loss.
The
and Colorado
Fuel & Iron and
picture confronting us, then, re¬
Interlake and Armco and Inland
vealed
the
smaller
companies
and Jones & Laughlin? Neither of
falling fast behind and the larger such consolidations would create
producers surging rapidly ahead.
a company larger than U. S. Steel.
Against this background, our
Yet could such mergers conceiv¬
feeling was the proposed, mergers
ably be outside the Congressional
of Packard and Studebaker, Nash

would

to Labor

en¬

that

ideal

our

superior

that, the letter closes with

While the style is unique, the

inforce

Thus

in 1116

question raised is not uncommon. The best shorthand answer
to this typical complaint is that
our job is to enforce the laws
Congress has passed. And Congress, "in its wisdom," has exempted most activities of organized labor from antitrust.

•world leadership.

to promote

organized labor ranks?'

competitive
economy on
which our political
and serial freedom
in part depend.
These laws have helped
release energies essential to inr
dustrial productivity, to technological growth, to our ultimate

capital

antitrust has be-

For

assuring

for

feel

unions and

distinctly American means

forcement.
come

rjs^s

vuai

have

General

the general welfare and give em-

Most Amer¬

you

fcure

on:

Attorney

seek to Persecute <the employer

wjl0

enforcement.
N. Barnes

Stanley

the

"Does

ahout

antitrust

letter goes

That

hndnp smen
business

Why???"

re¬

1949 produced more

eral statement

g e n-

only 'wink' at their offenses but
to date has not sought (sic) to
curb their 'monopoly' ... Why?

Jl?

considered

—

ecessor's.

this

Division

They are the most super-monop- new
cars
olies in the United States.
Still
firms with
the Attorneys General Offices not

pred-

will,

you

letter, the pattern of automobile
production in early 1954, the time

not the Attorney General's

Administration's enforcement pol-

to our "Disgusted Citizen's"

monopoly solely to superior
skill, superior products, natural
advantages, including accessibil¬
ity to raw materials or markets),
economic or technological
effi¬

its

capacity stems from past mergers
and acquisitions,
'Unlike the automobile, however,
there were and are, of course,
many companies — integrated and
non-integrated — much smaller
than Youngstown. Further, there

leaders, and thus widen

Consider,
sponse

our prosperous

Why??

Automobile Mergers

the

"Why?

quences.

economy.

At the outset, I shall talk over
with

answer

differ, in structure

effects, and in another in¬
entirely different conse¬

dustry

holding of a coherent antitrust policy; the allowable and
disallowable kinds of business expansion; competitive and
consumer benefits in consent agreements; differences in industries structure and practices; labor organizations legal posi-

respectfully,".

good short

practice. Thus, a merger in
industry may have one set of

market

the

"Yours
a

that industries

the

and Youngstown was the sixth of the first ten. Mr. Barnes
explains: enforcement departure from immediate predecessors;

the Bethlehem-

approve

Again,

proposed steel merger wherein
second of the "big three" steel concerns

the

was

to whether proposed

guys

Youngstown merger. I don't get
it. How dumb can you get? ;'

industrial mergers
are
acceptable, and illustrates this by citing the automobile
mergers which "spelled no competitive disadvantage over the
determining factor

dumb

the

charge of the Antitrust Divi¬
sion? They approved the Studebaker-Packard
merger
and

Attorney-General, Antitrust Division

Assistant

again from the Attorney

General's mail, a short while ago
one citizen wrote his Government:

Thursday, April 26, 1958

and

almost

ex¬

businessmen,

color

films

pro¬

duced by Eastman were processed

only by Eastman.

When the film

sold, the sales price included
an
unsegregated charge to covet
the processing.
The amateur
would, ♦ after exposing the film,
was

send it to Eastman.

He could not

take it for local

processing to the
drugstore, nor to the local
photographic shop. For almost no

•corner

one

than

the

United

Eastman

States

other

prepared to
process -Kodachrome and no one
in the United States could. proc¬
was

substantially lessen ess
Kodacolor film.
The tie-in
merger's effect on small com¬ competition or tend to monopoly.
arrangement, under which these
The corporation that' expands by
panies' ability to compete with
films were sold kept the small
internal,

doubt, intended

dominant firms.

to,-consider

threatens

Thus, the Report

of the House Committee consider¬

grow

growth, however,- can
big as it desires, unless

until

and

seeks

creates

ing Section ,7 asks, for example:
And even where ari
"Would
the Bill prohibit small monopoly.
corporations
from
merging
in individual company has expanded
order to afford greater competi¬ to the point of monopoly, it need
violate
the
Sherman
Act
tion to larger companies?". Reject¬ not
ing this possibility, the'Report where monopoly power has beep
concludes "there, is no real basis "thrust upon it."1 Judge Learned
for
this
objection." For, "ob¬ Hand suggested in Alcoa that
viously,
those
mergers • which monopoly power might be innor
enable small companies to com? cently acquired where demand is
pete more effectively with giant so limited that only a single large
corporations generally do not re¬ plant can economically supply it;
duce
competition,
but
rather where a change in cost or taste
intensify it." Applying this legis¬ has driven out'all but one sup¬
lative guide, I concluded the auto plier; or where one company out
mergers submitted constituted no of several has survived by virtue
substantial lessening of competi¬ of superior skill, foresight and
tion nor tended toward monopoly. industry.
In the American To¬
bacco case, the Supreme Court
Bethlehem-AToungstown Merger
suggested the additional case of a
We reached, I have indicated,
company which has made a new
contrary conclusions regarding the discovery or is the original en¬
proposed Bethlehem-Youngstown trant into a new field, and thus
merger. Since litigation may well is
unavoidably possessed of mo¬
be in the offing, my comments
nopoly power. 2 In United States
are perforce cursory. In
stee), the vs United Shoe Machinery Corp.,3
the three majors had, in
1954, Judge Wyzanski illumined such
30,15, and 8% of the capacity. The
examples :
remaining seven of the first 10
(T)he defendant may, es¬
producers range from 5% to 1.7%
cape statutory liability if it bears
of capacity. Of the proposed merg¬ the burden of
proving that it owes
ing companies Bethlehem is the
1
.

Aluminum

second

the

big

three,

and

Youngstown the sixth of the first
ten.

Moreover,

Youngstown's

much
and

both

Bethlehem's

Spates,

148

Co.

America

416,

429,

United

(2d

Cir.

1945).
2 328
.

3 ilO

(1954).

(1946).
Supp. 295, 342
(D. Mass.
per curiam, 347
U. S. 521
781,

786

businessman

out

the

field

processing these films.
This case, I believe* is
example of what antitrust
to generate more

the

business

good

and

choices for the

consumer.

ready

major

three

can

opportunities for

world

Al¬

companies

have entered the color film proc¬

essing field, and the judgment i$
barely 15 months old. I referred
to Technicolor

moment ago.

..addition, Chesapeake Industrie?,
Inc., has formed a new subsidiary,
Pathe
color
work

Color,

operate

finishing field, has'

the

begun

a
million dollar plant
York, and has announced
of July 1, 1956, it
Wilj
commence processing amateur
color film. Again, almost immer
diately upon the entry of the
judgment, Pavelle Color, Inc., a
large
independent
New
York

at New
that

processor,

announced that it

was

building additional equipment to
enable it

process

Kodak coloir

film.
New

business

generated
ment

film

were

opportunities
the consent judg¬
limited to major

not

processors.

Retail

dealers,

who heretofore have entered only
black and white film finishing,
will

this

play an important part in
newly
opened
color
film

market.
not

This

fact

testified

merely by news reports; ad-

Volume 183

Number 5528

...

The Commercial and Financial Chronicle

(2027)
vertisements

soliciting color film
processing business are beginning
to appear in the. newspapers.
5.
*

And

how

has

about

judgment

he had
for his

processor

Soon, he should

have St least four.

And the

num¬

ber promises to grow.
To

insure

this

ment contains
It

provides,

that about

Eastman
further
no

judg-^

unique provision.

other things,
years from now,

seven

its

excess

mestic

contin¬

Eastman

among

Eastman shall
much

number

the

grow,

divest

itself

facilities

of 50%

for

color

provided,

divestiture

may be
of the then do¬

capacity
still

processing
film.

avoid

This

fans

basic

have

that

required

competitive conditions

■.

< f

some

camera

understood.

•

The

This decision, let me empha¬ tured
decree, I repeat,
goods with one-fifteenth of
thing. It does not size was Eastman's—not the Anti¬ the land area of the
\vorld, oneprohibit Eastman from prpcessirig. trust. Division'-s. ♦ *»•
*
fifteerith of the people of the
In fact, to the contrary, it specif¬
world, and one-fifteenth of the
ically
provides
that
Eastman Rising Production and Competition national resources of the
does

such

may

continue to

color

teur

film.

process

Nor

ama¬

does

judgment limit how Eastman

the
may

receive

color

exposed

film

Basic

ophy, of

the public

for

the

American

our

course,

world.**j.

philos¬

Perhaps influenced by this strik¬
ing comparison, a noted Swiss

is the tenet that

interest is best served

interplay

political

competitive

ter

basis which by including a proc¬
essing charge forces the consum¬

referred

gressman.
"

Con¬

one >

It states: "I

test

pro¬

(the Eastman Kodak decree)

unfair

writing to

Eastman
letter

the

customer."

Kodak

went

not

The

judgment,
"does

on,

ers

to pay
not1 he

4'Faced

the

allow

wants

with

the

it.

the

possibility

considered

methods -to

customers to send films for
proc¬

jdone but
a

where he
>

now

for¬

discontinued

it must be system.

dealer who sends them

wishes and when."

direct

returned

group

Mr.

British

third

through dealers.

highest
the

our

"In

ex¬

America
the

world and

produced

total

'goods

American

is,

the

for

America's

the

world."

with

Mr,

the

Institute.

system

Continued

one-half the manufac-

April 26,1956

$50,000,000

■

•

3V2%, 3V4% and 3%

Major Thoroughfare Construction Bonds, Series C
(Payable from Selective Excise Taxes)

Dated

May 15, 1956

Due March 15 and

September 15,

shown below

Principal and semi-annual-interest (March 15 and September ijj, first coupon payment date September 75, 1956) payable in Columbus, Ohio; New York, New York;
j. Chicago, Illinois; or Cleveland, Ohio. Coupon bonds in the denomination of $1,000, registerable as to principal only or as to both principal and interest. Bonds
initially issued as coupon bonds or registered bonds may be exchangedforfully registered bonds of the same maturity, or coupon bonds, as the case
/'•may be', without expense to the holder thereof. Subsequent exchanges or registrations shall be at the expense of the holder thereof.
Interest

Exempt, in the opinion of counsel, from Federal Income Taxes under existing Statutes, Regulations and Court Decisions

Exempt, in the opinion of counsel, from all taxes levied by the State of Ohio

or (itry

taxing subdivision

district thereof

These

Bonds, to be issued under the provisions of Section 2c of Article VIII of the Constitution of Ohio, as adopted at the general election in
on November
3, 1953, for the purpose of providing moneys for acquisition of rights-of-way for construction and reconstruction of
highways on the state highway system, will be, in the opinion of counsel, together with Series A and Series B Bonds and all other bonds hereafter
issued under authority of said Section 2c, payable solely from moneys derived from- fees, excises or license taxes levied
by the State of Ohio
relating to registration, operation or use of vehicles on public highways or to fuels used for propelling such vehicles and provision has been made
by law of the State of Ohio for the setting aside of a sufficient amount of such fees, excises or license taxes each year to pay the interest on and
the principal of the bonds
becoming due each year, without other legislative appropriation. > «
■
r
r. r .
/•
;
•
said

state

Yield
-

Amount.

Rate

Due.,,,.

YleH

$1,520,000

3i/2%-Sept. 15,1956
1,515,000 31/2 - March 15,1957
1,515,000 31/2
Sept. .15,1957
1,515,000 ' 31/2
March 15,1958
1,515,000 31/2
Sept 15,1958
1,515,000 31/2
March 15,1959
1,515,000 31/2
Sept. 15,1959
1,515,000 31/2
March 15,1960
1,515,000 31/2
Sept. 15,1960
1,515,000 ' 31/2
March 15,1961
.1,515,000 31/2
Sept. 15,1961

Amount >

$1,515,000

2.15%

2.45
2.60
2.60
2.70
2.70
2.75
2.75

'■ Due

Yield-

31/4%
.$1/4
31/4
31/4
31/4
31/4

March
Sept.
March
Sept.
March
Sept.

1,515,000
1,515,000
1,515,000
1,515,000
1,515,000
1,515,000
1,515,000
1,515,000
1,515,000

2.30
2.30

215

Pate

March 15, 1965

2.90

Sept.

15, 1962
15, 1962 •
15,1963
15, 1963 15, 1964
15, 1964

2.80%*

Sept.

2.90
2.95

1,515,000

(Accrued interest to be added)

These bonds

are

Sanders &
-

1,515,000
1,515,000

15,1967

Price

2.95%

March 15, 1968
-

1,515,000

Due

3%, Sept.

1,515,000
1,515,000
1,515,000
1,515,000
1,515,000

2.85
2.90
2.90

15, 1966
March 15, 1967

1,515,000

2.85 '
2.85'

15,1965
March 15, 1966

Rate

$1,515,000
! 1,515,000

2.80 *
2.85

Amount

2.95

Sept.

2.95

15,1968

March 15,1969
„

100

Sept.

100

15,1969

March 15,1970

100

Sept.

15,1970

100

March 15,1971

100

Sept.

100

15,1971
March 15,1972

Sept.

100

15,1972

100

offered subject to prior sale, when, as and if issued and received by us, subject to the approval of legality by the /Jttorney General of the State of Ohio and by Messrs. Squire,
Dempsey, Cleveland, Ohio. In any State in which this announcement is circulated, the offering is made by only such of the undersigned as are licensed dealers in such
announcement does not constitute an
offering to sell these securities in any State to any person to whom it is unlawful to make such an offering in such State.

State. This

Blyth & Co., Inc.

The First Boston

Lehman Brothers

Halsey, Stuart & Co. Inc.

Corporation

Harriman Ripley & Co.
Incorporated

•

Kidder, Peabody & Co.* j Merrill Lynch, Pierce, Fenner & Beane

The Ohio

Braun, Bosworth & Co.

McDonald & Company

Blair & Co.

Incorporated

Hornblower & Weeks

Alex. Brown & Sons

-,f

R. S. Dickson & Company

Equitable Securities Corporation

John Nuveen & Co.

Paine, Webber, Jackson & Curtis

(Incorporated)

Salomon Bros. & Hutzler

Bear, Stearns & Co.

Incorporated

F. S. Moseley & Co.

White, Weld & Co.

Incorporated

Phelps, Fenn & Co.

A. C. Allyn and Company

Incorporated '

A. G. Becker & Co.

Glore, Forgan & Co.

Goldman, Sachs & Co.

Company

Drexel & Co.

Smith, Barney & Co.

B. J. Van Ingen & Co. Inc.

Stone & Webster Securities Corporation

R. W. Pressprich & Co.

The Weil, Roth & Irving Co.

Dean Witter & Co.

•
,

Bache & Co.

William Blair & Company

W. E. Hutton & Co.

Lee

Estabrook & Co.

Higginson Corporation

First of Michigan Corporation

Ira Haupt & Co.

Laurence M. Marks & Co.1 Reynolds & Co.

Hemphill, Noyes & Co.

F. S. Smithers & Co.

far

na¬

the

Seeking

this, Mr. Rappard

Director

Battelle

one-

standard

therefore,

aver¬

other

any

i'i

Pros¬

much greater

than

corresponded

New Issue

William

material

reason

Crout,

The

living,

income

tion.

industrialists

this

country

secret:

only

today enjoys
age

Paul

3, 1951 to try to ascertain

Dec.

mailing

requires that

now

film

posed

its

world?

who, arrived

promote entry of new processors.

essing directly to Kodak

whole

Secret

perity" published as recently as
May, 1955, "that the United States

Hoffman phrased it, in welcoming

for

divestiture, Eastman's officials, 1
imagine,-

"The

played a major role in our coun¬
try's prosperity and growth.
Why can our nation out-produce

for developing whether

economist,

Rappard, concluded in his study,

processing. Instead, to repeat, the factors and not by monopoly,
judgment merely bars Eastman however benevolent. This philos¬
from selling color
film on any ophy, I suggest' in closing, has

Eastman

sending his films
to Eastman for
processing. Typi¬
cal of these complaints is a let¬

taken to

stance that

goal

and

relief.

customer from

merly

in * sub¬

court

re¬

conditions

divestiture

not

have received
many
complaints
stating that this decree prohibits

isfaction

the

Thus, East¬
only to take

are necessary

competitive

thereby

if Eastman shall show to the sat¬
of

It. is

however,

shall

restored.

compelled

steps

store

•

ues

such

consumer,
Before
the

entered,:

was

choice

one

man

the

benefited?

Kodacolor film.

have been

Wertheim & Co.

John

renowned

Explaining
free

enter-

page

The Commercial and Financial Chronicle...

Thursday, April 26, 1956

(2028)

1956 (Baltimore, Md.) ,■ June 1, 1956 (New York City)
;
Security Traders V Municipal Bond Club of New
York outing at the Westchester4
Association 21st Annual Spring
11,

May

Baltimore

COMING

Dealer-Broker Investment

Recommendations & Literature

Columbus

parties.the following literature:

meeting at the Hotel
,

status of atomic industry as

Atomic Commentary—Current

31, 1956 together with illustrated portfolio—Atomic
Development Securities Co., 1033 Thirtieth Street, N. W.,
March

Washington 7, D. C.
120

United
120 Broadway,

parison of leading banks and trust companies of the

Hanseatic -Corporation,

States—New York
\ New York 5, N. Y.
,

followed

outdoor'activities

(Canada)

Club.

Country

;

June

15, 1956 (Philadelphia, Pa.)#
Philadelphia Securities Associa¬
tion annual

outing at the AroCountry Club, Newtowri
Square, Pa.
',{>*':

unomink

Review—Bulletin—Reynolds1;

Building

New York 5,

N. Y.

Business in Brief

—

& Co.;, 120 Broadway,>

York'15, N; Y.

Quarterly survey

—

The Chase Manhattan^

New

—

Corporation,

Boston

—

companies

Chicago

Leases

Ltd.

—

De Witt Conklin

—

Iloyle

parison between the listed industrial stocks used in the Dow- '

Company

Mining

Quotation Bureau Averages, both as to
yield and market performance over a 13-year period —
National Quotation Bureau, Inci, 46 Front
Street, New
York 4, N. Y. "
;•
• /.

New

Radisson.

•

Lake

the

York

Breaker—Data—Bache

5, N. Y.

Union Bank

Mack

Power

opportunity to industry in the region
& Light Co., Dept., K. Bost 899, Salt

—

same

36 Wall

Co.,

bulletin

ernors.

Street,

data

are

in the Hotel Business—20th annual review—Harris, '
Kerr, Forster & Company, 18 East 48th Street, New York,

U. S. Governmental Agency

Memorandum

—

Parrish & Co.,

►

''/

Summary

—

World

Street, New" York 5; N Y.

Time

Chart

1956—Time

differences in

New

C. J.

■hK*- '

American

memorandum

Machine

Also avail-

;

Broadway, New York 6, N. Y.

(Hot Springs, Ya.)

Elected Director

Spring

Becker

Brook
&

Co.

Mass.

Water

Cd.,:•

'".'V'-

Co., -10

X
•"

Post

„

Service

Company—Analysis—

Incorporated, 60 Broadway, New York
v'- ' :
•.

Transport and Trading Company Ltd.

—

Analysis

—

[

Corporation, 120 Broadway, New York

■

Charles H. Pinkerton

:
*:

Pa.—Charles
in¬
vestment banking iirm of Baker,
Watts & Co,;-'of Baltimore, Md.
PHILADELPHIA,

Oil Company of Indiana—Annual
report—Standard
Company of Indiana, 910 South Michigan Avenue, Chicago 80,-UL
•
-v

Oil

■.

Pinkerton,

been

has

partner of the

elected

director

Commercial Uranium Mines,
Inc.—Bulletins-Columbia Securi¬

'•

Standard

feller

Stauffer

New-Jersey

Annual

report —
Company of New Jersey, Room 1626, 30 RockePlaza, New "York.20^ N. Y.
I >
X
—

tion.

Chemical

=•.

& Co. is a
New York-and

Watts

«Baker,

member?,, oi

the

Philadelphia-Baltimore Stock Ex¬
changes.^;

S. Thermo Control—Analysis—Unlisted Trading
DepartmentK Ira Haupt & Co., Ill Broadway,.New York 6, N. Y.-

Established 1854

H. Hentz & Co.
Primary Markets—

Members

DEPENDABLE MARKETS

New Analyses

New

-.Foote Mineral Co.

American

;

^ v

New

MOUNTAIN FUEL SDPPLY

;

EQUITY Oil

HA 2-

2400

Security Dealers Association

Trinity Place, New York 6, N. Y.

376

Established 1899

DEMPSEHEGELER & CO.

Axohaoge

Cotton'

Axchaoge

Exchange,
Board

Cotton

other

N. Y. Cotton

Ine.
Trade

Exchange

exchanges

Exchange Bldf.

NEW YORK 4, N. Y.
Chicago

Edward L. Burton & Co.

Stocx

Orleans
and

Troster, Singer & Co.
Members:

York;

Chicago

Corp.
Basic Atomics

Commodity
New

Lithium

fxchange

Btoca

Tork

.
-

Lithium Stocks

Pennsylvania Glass Sand Corpora¬

Company

Company—Investment .study—Dean Witter
& Co., 45 Montgomery
Street, San Francisco 6, Calif;

Smith & Co

Oil

Standard Oil

Co.—Memorandum—Zuckerman

1957

National Security Traders Asso¬
ciation Annual Convention.

Signode Steel Strapping—Analysis—J. R. Williston & Co., 115
Broadway, New York 6, N. Y.

Paper—Report—De Pontet & Co., Inc., 40 Wall Street,
5, N. Y. Also available are reports on Unilever

Continental Can

Nov. 3-6,

National Steel

—

Co.—New -views—Lerner

Square, Boston 9,

5, N. Y.

York

Company, Equitable Building, Denver 2, Colo.

Street, Boston 1, Mass.

New York Hanseatic

Moseley & Co., 135

Buffalo Eclipse Co.—Memorandum—H. Hentz &
Co., 60 Beaver
Street,, New \ork 4, N. Y. Also available are memoranda
on McLean Trucking Co. and
National Gypsum Co.

ties

"Shell"
■

V., Imperial Chemical and British Petroleum.

Railroad—Annual report—Secretary,

Co.

of Stock Exchange
meeting of Board of Gov; - ernors.:. - -f? '

New
Railroad, 230 Park Avenue, New York 17, N. Y.

Cement

Scranton

3, 111.

New

State

Riverside

Gossett Co.—Memorandum—F.
South La Salle Street,
Chicago

Central

4, N. Y.

Foundry—Bulletin—Dreyfus &' Co., 50

Bowater

York

Office

Peerless Insurance

(New York City)

Association

Co.—Circular—Singer, Bean & Mackie,
Inci, 40 Exchange Place, New York 5, N. Y.<•
*:
'
;

Broadway, New York 4, N. Y.
Bell

Annual report

Republic National Bank of Dallas—Analysis—Estabrook &

Corp.—Memorandum—Kidder, Pea-

body & Co., 17 Wall Street, New York 5, N. Y.
able is

—

Co., Inc.* 70 Pine Street, New York 5, N. Y.;

throughout the world as compared with Eastern Day- •
light Saving Time which will (become effective April 29th— I'
International
Banking Department,' Manufacturers Trust '
Company, 55 Broad Street, New York 15, N. Y.
*
\

the El Mirador. Hotel.

Public Service Co. of New Mexico—Analysis—G. A. Saxton &

coun¬

tries

American Hospital Supply

Springy

Pacific Uranium Mines

100

over

(Palm

& Co., 14

.«

...

Firms

Brass

York Central

Outlook—Memorandum—Shearson, Hammill

Wall

Exchange

National Security Traders Asso¬
ciation Annual
Convention at

Company—Analysis—Edward L. Burton
Company, 160 South Main Street, Salt Lake City 1, Utah,
an analysis of Equity Oil. -.
\

Corporation, Grant Building, Pittsburgh, Pa.
—

Stock

1956

Nov. 14, 1956

Inc.—Memorandum—Barret, Fitch, North & Co.,
Kansas City 5,..Mo.
•*

National Steel Corporation

Devine & Co., 48 Wall Street, New York 5, N. Y.

Utility

Building, Pittsburgh 22, Pa.

Company—Analysis—Stanley Heller & Co., 30
Pine Street, New York 5, N. Y.
X/
; :
-

Obligations

24-27,
Calif.)

,
.

Also available is

Trends

•'

;

and

Hotel

(Detroit, Mich.)

Association

Baltimore Avenue,

Mueller

the

Mountain Fuel Supply

City 10, Utah.

N. Y.

Trucks

1006

Growing West—Booklet describing the

and

resources

served—Utah

Bank

Firms meeting of Board of Gov-

Limited—Analysis—Aetna Securities

International Breweries, Inc.

—

area

Convention

meeting

; Oct.
4-6, 1956

Bonds and You—Comparison, of Tax-Free and
Taxable Yields
Mountain States Securities Corporation,
Denver Club Building, Denver 2, Colo.
\
in

Association
34th

annual

;

Also in the
Vanadium Corp. of America.

Exempt

Chest

;

(Minneapolis,

-■■■

National

Oct.

Circuit

I-T-E

used in the National

Treasure

Corporation, 111 Broadway, New York 6, N. Y.

Jones Averages and the 35 over-the-counter industrial stocks

Tax

1956

Women

(heavy

Tokyo Shibaura Electric.

1-21,

Minn.)

Bulletin

Ltd., 5, 1-chome, Kabuto-cho, Nihonbashi, Chuo-ku,
Tokyo, Japan. Also in the same issue is a brief analysis of

Over-the-Counter Index—Folder showing an up-to-date com¬

outing at Inverness Club.
Sept.

ties Co.,

Stocks—Bulletin—Swift, Henke &
Co., 135 South La Salle Street, Chicago 3, 111.

guests,
Nicollet Hotel;
at the, White

the

Bear Yacht Club.

electrical equipment .company)— Analysis in
current, issue of Weekly Stock Bulletin—The Nikko Securi¬

Bank

out-of-town

June

June 29, 1956 (Toledo,
Ohio) ;
;
Bond Club of Toledo summer

Organization, 100 Broadway, New York 5, N. Y.
Hitachi

for
20

picnic

Corporation—Report—Peter P. McDermott & Co.,

Freehold

Gridoil

analysis of 13 ,stocks
—Laird, Bissell & Meeds, 120 Broadway, New York 5, N. Y.
for

party
June

;

44 Wall Street, New York 5, N. Y.

New York City Bank Stocks—Quarterly

Outlook

"Investment

April

Electric—Discussion

Greyhound

Broadway,

100

;

Advisory v.
Digest"—Edward A. Purcell & Co., 50 Broadway, New York '
-4, N. Y. '"Xr;;

Stocks—Comparative figures at March

The First
New York 5, N. Y.
1956

Incorporated—Annual report—Thomas

New York 5, N,' Y.

Wall Street,

General

Co., 655 Madison Avenue, New York, N. Y.

City Bank

20-21, 1956 (Minneapolis- ;
St. Paul)
Twin City Bond Club 35th annual picnic and outing cocktail
;

;

—

Capsule—Report—General Investing Corporation, 80 *

General

Yamaichi Securities

Long Term Investment Programs—List of suitable

31,

Co.

West Orange, N. J.

Edison Inc.,

;

Co., Ltd., Ill Broadway, New York 7, N. Y.

York

Bridge

Industry—Analytical brochure

Japanese Stocks—Current information

Edison

Thomas

—Blyth & Co., Inc., 14 Wall Street, New York 5, N. Y.

New

June
.

Memorandum — Hemphill;
Noyes & Co., 15 Broad Street; New York 5, N. Y.
International

Detroit

•

Investment Aspects of the Paper

Moreland & Co., "Penobscot

—
^

Diego, Calif.

—Hirsch

Information

—

Building, Detroit 26, Mich.

Electronics—Bulletin—Salik & Co., Bank of America Building,
San

Darling

;

Economic Research Department, 18 Pine Street,

Bank.

Canada

annual convention^
Algonquin Hotel, St. Andrewby-the-sea, N. B., Canada. / ; :

Cal.)
Security Traders Association of May 20-24, 1956 (Boston, Mass.).
NatioriaL Federation of FinanLos Angeles annual spring party
r
cial Analysts convention at the
at
the
Biltmore. Hotel; Palm
Sheraton Plaza.
- '
-X'
Springs.- - - ; c-

•

-»Investment Dealers' Association

May 18 at the Richland-

dinner

May 4-6, 1956 (Los Angeles,

quarterly com- :

Stocks—96th consecutive

Insurance

and

Bank

♦

Traders Association

of Philadelphia summer outing
Dealers of Nashville
at
the
Whitemarsh
Country
cocktails and din¬
ner
May 17 at the Hillwood X Club, Whitemarsh, Pa.
Country Club; golf and other June
13-16, 1956

Security Traders Association of
20th Annual Dinner
at the Waldorf Astoria.

& Co.,

Review—Late

Energy

(Philadelphia, Pa.)

Investment

Security

New York

issue—Harris, Upham
Broadway, New York 5, N. Y.
V:.' •; ' :

Atomic

City)

June 8, 1956

annual party:

Driscoll.

April 27, 1956 (New York

outing at Sleepy Hollow
Country Club, Scarborough, N.Y.

May 17-18,1956 (Nashville, Tenn.)

Group ? of
Investment
Bankers
Association annual

msmmmsmmmmmmmmmmrnr A

mer

Bond Club
the Brookside
&

Linworth, Ohio.

Country Club,

Texas)
Texas

Stock

annual outing at

April 26-28, 1956 (Corpus Chnsw,

mentioned will he pleased

that the firms

send interested

Field

Investment

It if understood

Outing at the Country Club of ; Country Club.
Maryland.
June 8, 1956 (New York City)
; ,Bond Club of New York sum¬
May 17, 1956 (Columbus, Ohio)

EVENTS

•

Detroit

Miami Beach

Hollywood, Fla.

•

Pittsburgh
Coral Gables

Beverly Hill*. Cal.

Geneva. Switzerland

Amsterdam. Holland

160 S.

Main, Salt Lake City, Utah

Number 5528The Commercial and Financial Chronicle

Volume 183

'
'

(2029)
'

should be cut .the oil would be
rerouted"- by "tanker;7 This would

Violence in the Middle

•

Middle

By JOHN M. MINER

i i

;

Investment Officer,

Fidelity-Philadelphia Trust Company

oil

Arab-Israeli

the

might

worst

happen,

Investment

Research

■

have

$i15,000,000 invested

all

Because the

sent

this

leaders. From our viewpoint
Arabs are subject to a feudal way of life in which the ruler's

area

f authority is. almost boundless.

therefore,

to us.'

:Violenceand

high

the length

run

tension

the

ours.

would probably increase;

and

m'manly

rael, only the
last may have

n?rt^e^n Iraq, both
r£rom ^sraY'

nnin

°f

John M. Miner

Middle East

an? i?:^

^^rarl?1,

vj1

^
nenin-

British-controlled

small.-

oil operations.

sula in the Persion Gulf).

general ferment

the

in the Arab world could conceivuic
wunu

Middle East production repre-

ably hamper this important flow

^/d

±11

•

this

discussion

not

are

increasinglv

war.y

hood of open
with

cern

amean,

The Land and the People

The main countries of the Mid-

holds

States

assuming the worst,

•

Our

ma^e

Middle
up

Eagt

0ther

they

(formerly; Persia) stands someapart from this community,

Tolherv WtS2 lieSA

Jh!

nprth, Turkey and Russia,-;to t e
east, Afghanistan and Pak18
•

;The Middle East, excluding Iran,
half

United

the

land

but

States

of. the

area

less

than

one-

sixth its

population. Saudi Arabia,
by far the largest country, has an

bufonlv1M? tat 0anvTon,eVania
only 60%.?s many people
but

The

area

concentrated

w{l?le ls desolate

uninhabited.

and

The

population
compact

few

Aside from

sections.

Ik^se

dense

pockets of people the Middle East
largely barren desert.

the small countries of
Israel and Lebanon, the language
is Arabic; the religion, Moslem.
However,
the
historical
backgrounds of these Arab nations differ widely.
This together with
geography has resulted in each
nation going its own way. While
there
is
an
Arab
League
this
"union" of nations is loose, with
Except

each

its

member

jealously guarding

ances,
some
much of the

real,

some

Arab

grievfancied,

world

hos-

Europeans and Americans,

Britain is the prime target of this

animosity but other Western
ers

not held

are

pow-

in much greater

While
of

oil

income

these

The

Broad
from

this

has

helped

countries, extreme

poverty and illiteracy
rule.

extent

are

still the

which

the

of people (as distinct
ruling clique) shares in

mass

the

income is hard

The

are

promote
promote

to create

general
"general

out
uut

gyilc
gone

friendly

The Arabian rulers

We
"rJ

ticular
country
than
for
world-wide oil companies. ^

No doubt it would require

0perationai
changes,
but
these
companies have repeatedly shown
aiertness and flexibility.

welfare

quite
interest in the

their

nationals'

the

capi¬

FT.

the

West's

trans¬
marketed.

our

(the

Gilmore

have

become

The rapid-"postwar development
of big production and tremendous
reserves in this area has no parallei

the history

the oil

in¬

This announcement is neither

offer to sell

nor a

R°f?er G.

New Issue

•

offer to buy these securities.

Prospectus.

!,■■'•'

bulk

its

$50,000,000

production is refined

elsewhere

•-

-Most of the Oil : is moved

Province of Ontario

tan^er> usuaiiy from the Persian
Qujf
gUla

around
up

Arabian

the

to Suez.

ried

Penin-

The rest is

pipelines

car-

(CANADA)

Arabia

across

f0 the eastern shore of the Mediterranean

Twenty-five Year 3%% Debentures

■

nn'ratinn„

larftplv

arp

the hands of a

American and

Dated May 15, 1956

Due May 15, 1981

BrU-sh companies which are als0

the leaders in the
this

oil

thie Arabian

years

in which

areas

marketed.

Over

rulers

the

oil-

producing countries have enjoyed
an increasing share of the
profits,
The spht between the company
and th
—

ruler .

American

comDanies

faVge sTake In C
nn

^ a

have

MMdle

l^ge sJSfe

East

Californm, Stand-

(New Jersey), and the

ard
If

Copies of the Prospectus
dealers

lexas company.
what

Price 99.60% and accrued interest

Full-Scale

may

power

are

obtainable from only such of the undersigned and such other

lawfully offer these securities in the respective States.

Arab-Israeli

War?
A

an<J ^ag^ed terrain between Israel
and the oil producing areas,
duction

would

not

pro-

Harriman

harmed

militarily. The possible war area
has n0 lar§e operating refineries,
There are three trans-Arabian
pipelines, but the one running

Ripley & Co,

determine,

Arabian

rulers

Wood, Gundy & Co., Inc.

Incorporated

Smith, Barney & Co.
A. E. Ames & Co.

off for some time because the
Arabs will not permit their oil to
enter Israel. Of the two active

The First Boston Corporation
The Dominion Securities

Incorporated

pipelines only the

inates in eastern
closely skirts Israel's
border,
Lebanon

and
is

McLeod, Young, Weir, Incorporated

which origSaudi Arabia,

one

ends

northeast
southern

vulnerable.

April 25,1956.

Corporation

—

affiliated
—

Johnson &

Professional Boulevard.

mar-

solicitation of

The offer is made only by the

Fla.

United

one-eighth).^

only

oil

invest"

LAUDERDALE,

strongest

point: the West is the sole

international
which

Harvey N. Gei$ler and William

lies

the
in

(Special to The Financial Chronicle)

impor¬
tant but by no means the only
phase of the oil business.
Crude

Herein

these

Two With Roger Johnson

most

oil must,
of course,
ported,
refined,
a ltd

that

ment is substantial.

tal abroad.

Production

for

companies

governments

doubt

poets
,

properly have

many

tne

have

w°u}d make alarming
headlines^ which might easily pro-,
d0c? ;a temporarily unfavorable
®tock market reaction. Nevertheless we see no basic impairment
1
fav°rable long-term pros-

are

keenly
of the vital importance of

Western

restepping ;, up
production
throughout the world and would
probably lead to higher prices. 'A

these darkest poswould seriously affect
would seriously
earnings of the oil comPan*es

Understand-

feeling they have

„avc

0f their way

areas.

from Iraq to Israel has been shut

esteem.

some

companies

powerless.

Replacement of this oil would

quire

Because of the greatv distance

interests.

own

Because of long-standing

tile to

are:

what

has

oil

good

&V,VVA

Syria, Saudi Arabia,, dustry anywhere in the world.
Lebanon, Kuwait, Jordan, Israel, The Middle East is less imporIraq, Iran. For many reasons Iran tant as a refining center.
The
die East

anxious

would

major

show

worldfhe^bnto

S agains

ably
abl.y

deliberately trying to get at the

oil

this

Middle 'East

the

situation

this

what

the

in ! one
a

Rp«a„c0

r
and its rulers such a. shutdown
;;could be far more painful to the
h
• —
country than to the oil companies
^wa^^i
a P°Itheir.- world-wide resources,

midSl? y

means

an(j. sejt throughout the world.
What they might temporarily lose
in

"mdenendenrp »-

known oil reserves are located in

Our sole con-

oil in the Persian Gulf.

Western Strength

"srS£,'3«

s/sirzrrrsx
might

citfiw ?1a
the

This show of force is not conBritain:depend almost entirely, sidered likely but it ij a pojsibiland our Qwn Eastern Seaboard,
&y. Bear in mind that ^we are

to weigh the merits of the

going

° ope!:a", shutdown (^ production
-°T^ia reason of the Arab countries as
per
little

/. :
" Should this come about we see aware
.■■■■-.
v\.-no great threat■ to the earning;, oil to their nations (and to themlocated pri- p0wer 0f the American companies selves). Rocking the boat can be
the;Persian Gulf area, invoived; 'they produce, refine, costly—far more so for the par-

Only five countries have sizable
oil production/Iraq, Iran, Kuwait,

direct effect

rln

,•

I' ™orl

i *1-:"
war occurs,

is conceivable that
at the1 worst the growing hostiljty to the West could lead to a

Oil production, is

Is¬

addition,

lpliprc^r

Middle East Oil •v

Algeria, Cy¬

necessarily

•

d Communist actoyity, is

the

world vworking atmosphere. ^
-

^?ether 0TJ}0t thls

increasing. It

•

that

that;the;Arab

new

Fast

capacity: in

throughout; the

wJ? 7° t?
inr

make up such a shortage. Production in other areas, notably
South America and/the -United

\trU

question

time., But there

to suppose

no-

products

It is well to keep in

stoppage ; would
costly.
However,

mind that
Middle East thinking is often fundamentally different from that of

J '

now carries would be rerouted

hv tanker

better

immediately available to

area

Arab-

proSctiofand

bigger scale, and

fim^ nil+1

nf
of

„

troubled areas,

skillful;"."

There

States would have to be stepped
up.. Europeans and Britons would
find their oil harder to come by
and the prices of crude oil and oil

W not

the three most

the

brief shutdown would preproblem because there is

not enough surplus

fuii_sraip

^"5ak nationalism, a« *6
m' abetted by
e ? .y

time it is apparently

organized
organized,

Medi¬

terranean.

prus,

This

coun¬

the Western world;, their logic .'is

of immediate
concern

Summary
there

Israeli war no oil
na
vf Time*
no imP°rtant refinery would be
British-Iranian militarily affected. At worst, a
again met with pipeline might be cut but the oil

^hich

painfully

even a

such

not

was

mnnthsH^l
success.. In recent
months, seizing upon the increasing ferment,^Communist activity
has increased throughout the area.1

tries, and especially their rulers,
are
critically dependent on oil
revenue

which

iS? of the

nni

increasing

oil-producing

Russia

spttlpmpnf0

able that one of the oil-produc¬
ing countries might stage a show
of force' or
"independence" by
cutting off its production.."
'
-

I/y /u5ul- Thfwas another

together
united front.

under

come

this oil.

dering

closer

ipore:

na¬

neighbors. In
militant, Arabia ■» for - the r
."Arabs, atmosphere J it is conceiv¬

many

are,

have

.this

ern

jor Middle East operations. Events'

pressure from their

cases

American oil companies with ma-

present

have.

their people varies, but in
far exceeds that of West-

over

of the five

stock

common

relations

;

rather strong propaganda
attempt
in the northern part of Iran bor-

•

ket for this volume of oil; there is
other. !'Furthermore, only the
/Western companies, as a group,
standingly successful so far. Right now operating Middle! East proafter World War II there was a
duction are capable of handling

Those other Arab countries which
have not yet joined this alliance

Specialist concludes no serious threat to American companies'
earning power is involved since oil temporarily lost in Middle
East would be made up in other areas, but Europeans and
Britons would he faced with less oil, and world crude oil and
oil products' prices would probably increases Describes Per¬
sian Gulf area and Northern Iraq as principal oil sources,
both 500 to 1,000 miles from Israel, yet Arab-Israel tension
may have more direct affect upon Middle East oil operations
than the general 'i Arab-world hostility to Europeans and
Americans—particularly Britain. Finds Arabs' astute traders'
know how to play both ends against the middle, and oil shut¬
down by an Arab country could be more costly to it than to
the oil companies.
J' '■/;
v
in the

Communist Infiltration

!•

•

certain of the Arab

tions have moved

Assuming

effect

earnings.

Show of Force?

worsened

marked

East

Communist infiltration in the
Middle East has not! beeh1 out-

momentarily inconvenient but

would have

A Threat to Oil

•.

Co.,

The Commercial and Financial Chronicle.

(2030)

Thursday, April 26/1956

of the administrative responsibili¬

Charity

vs.

ties

Tax Dollar
^

Archbishop Cashing notes that .even here in America we are
in danger from Socialism which, however mild, does not allow
the independent "charity dollar" to compete with the "tax
dollar." Asserts expanding Federal support of educational,
recreational, social service and health programs '■ means
increased state competition with private activity which speedily
falls
behind
as
enormously increased" taxes feeds the
/

The four

Unless

situation

the

reverses

factor

extraordinary

other

some

intervenes

miracle

eastern

dollar

becomes

All

'* Probably t'r.e best example of President Eisenhower's chain of

responsibility to his subordinates and sticking by them, is his veto
of the Farm Bill. Ezra Taft Benson, the
Secretary of Agriculture,
Very well, tnat s Ezra's job.
All cf tne political advice, apparency, was
against vetoing • it/ ; You haverthe' Attorney";
General, 'Mr. Erownell; presenting a recom¬
mendation to Congress on eivilTight3 designed}
..obviously to,get Negro votes and another,one,,

power

doomed
to
Marxist^Socialist regimes.
The
basic Christian objection to Marx¬
ist
socialism
is, of course, its

collect

nations

atheism

are

the

collection.

its

and

complete

con¬

tempt for all personal and spirit¬
ual
values, with a consequent
of

deification

the

and

state

sup¬

pression
of
the
person.
But
Christianity also shares democ¬
objections

racy's

One

cialism.

Marxist

so¬

the

ob¬

these

charity dollars — and it
becomes increasingly hard, almost

free people have
any system which
private initiative on
every level and
which tolerates
no
independent organized action
of any kind within the commu¬
nity and apart from the state.
destroys

totalitarian

of
Marxist socialism all independent
the

concept

of
the question.
They speedily be¬
come as illegal as organized reli¬
gious action, independent of state
controls. Independently organized
such

works

social-service

yours

out

are

works

not

are

the

happy

nations

life

the

presently

un¬

community works which, as they

tion.

western

Our

own.

meated

political
in

rooted

are

nations

This

idealism.

simple,

competition with all private
activity in the same fields. Pri¬
vate activity
must speedily fall
behind in competition with the
omnipotent State. It also means
enormously increased taxation of
conceivable

every
to

kind

order

insatiable hunger

the

feed

for

support of the Goliath that is the

Here, too, private

community services
since

bound

are

the

charity dollar,
freely given, must, lose out to the
tax dollar, legally required,
and,
if need

be, taken by force.

they

takes

have

may

long

its

any

had

American Bankers
Create 4 New Posts
Four

the

have

administrative

new

American
been

posts

Bankers

created

Ass'n

the. Ad-

Bank

State

Mr.

Business

has

with

been

ing joined
the

the staff

He is

Business

Small

Credit

the

came

secretary

tion's

Credit

1950

the

was

secretary

National Bank

Mr.

Associa¬

Policy

and

has

Powers

Association

been

the

with

its

Customer

Relations
serve

assistant

and

1943

was

Committee

The

mittee.

from

color

assistant

the

•

Council,,has

secretary of the
Savings Bonds Com¬

Include

atheism in its theory and

therefore it cannot
fend
It

conscience

not

may

its

always

this does

J. R.

Dunkeriey

Carroll A. Gunderson

acknowledge

But

America
from

however
ates

mild,

G.
Hobbs,
Jr.,
executive
president,
will
hold
the
membership.
Officers
of
the
Corporation
are
A.
McClure

vice

sooner or

later

cre¬

problems for inde¬
pendent, private interests. It be-

impossible

comes

for

charity dollar, the dol¬

lar

what

freely given

sons

support

ganizations; to compete with the
so-called
tax
dollar, the dollar
raised

by taxation

and

spent

Federal or, other State
agencies
for organized social service
agen¬

cies, for hospital programs,
education

schemes

state-supported
trolled.

The

and

which
state

charity dollar

for
are

con¬

cannot

William Powers

Ffom

before

address by Archbishop CushSociety of St. Vincent de

the

Paul, Boston, Mass, April 8, 1956.

Walter ti. 1-rencn

Committee

Association

upon

mendation

Merle

rying

the

manager

These

title
were

ministrative

spring

Executive

recom¬

Manager

has

b£en

posts

car¬

of senior 'deputy
voted by the Ad¬

Committee

meeting

Executive

new

the

Selecman,

announced.

Council

the
in

the

White Sul¬

phur Springs, West Virginia.

purpose,"

according

Executive Manager Selecman,
to

curities
a

ministrative

"The
«n*

the

of
'

Secretary

of
.

genuineness in the Presi¬

stubbornness

the part of Mr. Benson.

existing legislation
he gets the money.

once

soil

bank

the

would

money

modity Credit Corporation and not show
outright appropriation would, and

balance

it 1iais

that

when

time

balanced

Administration

gambler, and

a man

there will be

as
an

many

two

Com¬

intends

But

you

.«•

say

Because

single Senator in the

three

might

of tremendous courage.

crow

he realizes that if the Republicans lose

Mid-West,

the

..t

devout churchman.

from

in the budget.

tend to throw the budget out

the budget.-...

Secretary Benson is
a

the

If Congress would

come

Congressmen

irresistible demand for his scalp.

•

this

fall,

' '

ATLANTA, Ga.—Interstate Se¬

sometimes

by private per¬
independent or¬

—1

There is another gimmick, mostly political.

programs

supported
called the

he has authority under

claim

the soil bank into effect,

authorize the

Interstate Sees. Opens
Branch in Atlanta

serious

to be pure

seem

he is also

danger
Socialism,

State

attribute

same

are, or so it is claimed in behalf of the Secretary,
fe\v, if any, farmers would sign up for the soil bank on a
one-year basis, which it would have to be if set up on a basis of
annual appropriations from Congress. The next Congress could
refuse to appropriate any money for the soil bank.

dents; and George H. Stolte/ sec¬
retary-treasurer.
<■

the

■ ■

that

all

are

Socialism.

here

about

•; The facts

will
Ex¬

Socialist Dangers
even

Stock

president;
Mr.
Hobbs,
Charles
L.
West,
William
A.
Beinhorn, Jr., Joseph J. Lodovic,
and Ray J. Thomasma, vice presi¬

totally eliminate

nevertheless,

{May

York

worry

Democrats

to put

Russ,

the person.

American

New

liam

practice.

God, but it cannot despise Him—
and,while it may exalt the state,it cannot destroy the
dignity of
the individual

Building;

they

The

change member corporation. .Wil¬

crudely of¬

His Department of

record

priation with which to operate the so-called soil bank without
legislation specifically authorizing the soil bank. At first glance

Bapk

better

dent, they describe as stubbornness on the part of the Secretary
of Agriculture.- They particularly see stubbornness now in the
Secretary's opposition to the Democratic proposal for an appro¬

fore

become'

political fool.

has

Frankly, what they characterize

SAN

cannot

mat Eisenhower is the

iacc

Agriculture.

ANTONIO, Tex.—Russ &
Company, Inc., Alamo National

Benson

but

Mr.

political, and social cli¬
mate, it must ncessarily be in¬
fluenced by spiritual and there¬
humane'values.

that

undoubtedly

party's best bet and that he
genuineness, because of his not being a poli¬
tician, and that Benson is of the same stripe, doesn't catch on
with Hall or the rest of the rank and file Republican Congressmeh
and Senators. They like to think of their President's genuineness'

N.Y.S.E. Member Firm

our

fact

The

director and

Council.

Russ & Go. To Be

•

given in to the clamor would have, to
just another politician.

is this because of his

something that

to have been

seems

then, in

also

To have

man.

;

Public Relations

Fichtel

the veto

particularly

the next breath, is inclined to rail about what a liability
is to the party.

are

Rudolph R. Fichtel, secretary of.,

Capitol Hill.

National Committee admits this with great affection and
men

of Banking.

made

the Republican leaders

of getting rid of
installing Republicans than any of the
larger agencies in town. Chairman Leonard Hall of the Republican

;

been

got from

hold-over Democrats and

Banking, and all 'of '* them are
graduates of The Graduate School

the

Agriculture

Executive

r.-:

mind, marked him

the

A. B. A.

As long as he is that, Mr. Eisen¬
advice. That's what he has got

his

But Middle West Republican politicians with whom I have
talked, although admitting this, don't like it. And they don't like
Ezra Benson. He is an enigma to them. He is, in fact, sort of a
mystic.

September, 1955, he
named secretary of the new

was

genuine

Banking. '
given the title of

deputy manager and in 1944
advanced
to
registrar
of

take

bet your boots that the President's action was against

this writer,

The Graduate School of
In

should

the President had to do. He is supposed to be a man above politics,

registrar

can

advice

the

Personnel

and

Guard,

the veto, as reflected in newspaper' editorials,'
Middle West editorials, have been gratifying.

having

Department

to believe that the

reason

Palace

joined the staff in 1940 to estab¬
lish

State

Most Republican members of Congress and Senate from the Middle
West are still groaning, notwithstanding that the public reaction

Division.

years,

Secretary of Agriculture!

You

Commission.
named a deputy

House

him in the job for.

Later he be¬

Commission in 1944.

hower feels

secretary

Secretary

- was

■

There is every

Carlisle Bargeron
all politically
minded, and mostly Eastern politically minded,
v
;
but concerned in votes, were against a veto. From all indications
it seems to be safe to say that Mr. Benson won almost
by himself.

Division.

Gunderson

secretary

else¬

moral,

Dulles.

State Socialism

was

non-committal

gradu¬
ates of the American Institute of

selves in western Europe, Britain,
and here in our own hemisphere,
where.

Small

the

Three of these

opportunity to disseminate them¬

than

in favor of the veto of tne
~ Humphrey
of
the:.
Treasury, and Wilson of Defense, not being
astute in the game of politics; were probably

years,

Development.

free

1953

cold

democracy has been nour¬
ished
by religious and cultural
which have had

getting votes,

the

with

been

Commission,
and
since
he has been secretary of the

manager

Our

values

has

for

Credit |

State

institutions

Christian

French

mathe¬
matical fact which has nothing
to
do
with religious theory
or
social philosophy: expanding
Federal
support of educational,
recreational, social service, and
health programs means increased

our

social theories per¬

Organization Committee.

Mr.

.]
1

concerning relaxation of the immigration laws,
designed to/get foreign born votes. I doubt
seriously that Mr. Brownell, concerned in

the Association for 12 years, hav¬

crude atheistic socialism will pre¬

vail

manager

under

that r this

unlikely

seems

and

Association

multiply, require yet more taxa-

the heel of the Red Fascist.
„

deputy

in charge of its Sav¬
Mortgage Division and

White

suffer

from

been

years,

and

state-controlled

and

practically impossible in the
regimented life of the totalitarian
state.
They are ruthlessly elimi¬
nated

;

pepple to finance increasing statesubsidized

Socialist State.

come

having

Farm hBill.; Secretaries

theoretically inconsistent
with Marxist socialism; they be¬

merely

been .with

years;

having
-joined it in March,- 1940, ; as- a
to the point of impossible, to col¬
deputy: manager. Since 1943 he
lect charity dollars in a socialist
has been in charge of the Credit
state when so many tax dollars
Policy Commission of the Asso¬
are being collected from the same
ciation

...

jection which
always had to

wanted it vetoed.

the

has

ings

great

has

Dunkeriey

Association

for 11

of the state is behind their
It is always harder to

Europe and Asia, our generation
must face the fact that several

Mr.

staff in 1927 as as¬
sistant to the executive* manager.

collect tax dollars.
prestige and the police

the

command tneory cf running the Government, tnat is, of delegating

joined

easy

of the "News

By CARLISLE BARGERON

advanced to these

are

posts

the

staie.

very

Ahead

derson, and William Powers; Col¬
lectively, these four men have 73
years of service with the A. Br A.

in the hands of a social¬
In the tirst place, it is

weapon

ist

tax

presidents."

men

Dunkeriey,

new

the

Walter B. French, Carroll A, Gun¬

long compete with the tax dollar
once'

have senior vice

now

-J

growing

ing practice in many banks which

omnipotent state.

•

socialism will test to
the cracking point the power to
survive of independent programs.
An age of

and

Association. This

planning for multiple administra- *
tive
responsibilities,"- he
said,
"and is in line with the prevail¬

Archbishop of Boston

•;

varied

of the

step follows sound, organizational

CUSHING, D.D.*

By MOST REVEREND RICHARD J,

the

activities

Corporation

branch in

Bank

Building.

-"is

provide for better distribution

has

Fulton

been elected

dent

the

make his

opened

H. Mi

National

Howard Q. Tray-

wick has

yice presi¬

company

and

will

headquarters in the At¬

Dreyfus 50 Yrs.

Herbert M-.

i
Dorothy D. Sweyer,
secretary of • the firm,
charge of the trading
department. Edward A. Albright,

Jr., will
Mr.

serve as

Traywick
of

cashier.
was

formerly

Hancock,

Black-

stock & Co. of which Miss Sweyer
was

cashier.

officer and Mr.

Albright
.

& Co., New York
April 19th celebrated 50
a

member

the

New

City,
years

York

Stock'-

Exchange.
Mr.
Dreyfus
purchased
his
membership
on
April
21

19th,

years

career

1906, -when

old.

had

in Wall Street

previously

was

begun his

eight

errand

years

boy for

Ladenburg, Thalmann & Co.

Bowling Award

Dreyfus, partner in

Benton

assistant
will

Karl L. Meyer Wilis

N. Y. S. E. Member

lanta Office,

president

the

DENVER, Colo.—Karl L. Meyei
of
J.
A.
Hogle & Co., prove<
himself

the

Bowlers.

dinner,

for his

the

firm

call
us

the

when

him

Karl,

dean

the

award, he

"We

don't

us—just

Denve

annual

awari

callei

announce*

Hog-el.

care

long

what
as

you

Sai<
yoi

cal

Volume 183

Number 5528

.The Commercial and Financial Chronicle

1"1

(2031)

Investors'

.leading spokesmen for the indus¬
try indicate that more equity fi¬

Responsibility
Private Transportation

And
;

$2.5

;

Transportation Association of America

;

the

maintain

realize that the

spent

billion last;

year

for

than

plus

;

millions

for

system.
ment

trucks

may

and trailers, and is expected to
spend about $3 billion this year
Lfor i operating equipment " alone,

•

Cnairman, Investor Panel and Director,

When

expected

^trucking industry

Trustee, Massachusetts Investors Trust
;

can

future.

By GEORGE K. WHITNEY*

nancing

these carriers under private ownership is vital if we expect to

Whitney

interest in maintaining various private

expresses

look forward to

VX";'
V

are stepping in to meet; (2)
constructing, financing and authorizing $5 bil-

are

know,;
•f

been

try

prfyate investments; and (5) rails expect to invest $6.5 billion
Cites 60% 20-year traffic increase volume

*'■' estimate in

The

;

•

intercity freight and

opportunity to

say

trans-

portation

i n-

fieid.

almost

one

our

best

as-

ways

the

jef

all

have

been

reading

in commercial airtrans-

Large orders for swift
jet transports have been reported

econ-

which is

omy,

vitally dependent
George

form
"

K. Whitney

Trust

these

aircraft

multi-

have

transports

prop

and

„

trans-

Needless

say,

this

will

bank

substantial

commitment

hns

the transnortation

eoui-

anH

rectlv related
;

lam

reason

industries

kLnlv

For this

interested in

transportation's future.
:

Todav
loaay

tion

I
1

have
nave

the
ine

Association

nrivileee
privilege

America,

of
01

broad cross-section of institutional

investors

than

This

panel

banking,

investment and

insurance

executives, works along.side of similar panels in t-*e user
.

anc^

vari°us

studying

and

mendations

cost

loans

long"

carrier

making

fields
recom-

term funded debt- Insurance companies' exPressinS optimism in
the future of this rapidly Sowing
indbstry, have stepped in to help
fil1 this financial need* During
the past year, they have boosted

;

the

all

welfare.

with

users

and

carriers

ag0.

future

which
case

advantage, with parnot only to the
solvency of companies in
regard

invest, but, also, in the

of equity investments, to the

adequacy and continuity of divi-

dends.

As to the investment

aspects of

the situation in respect to various
forms of transportation the fol-

lowing

can

be said.

While

mand -for all types'of facilities
needed
in
the public and
equipment. This responsibilFinding this minimum itycan
only be fulfilled, however,
in Tate regulation is a most
diffi,-/jf there* is" the proper political
cult* problem, t as
you „all
well and
regulatory
climate
as
to
know; Still, competition is essemtransportation to attract Capital
tial tcfthe welfare of our economic
and
particularly ' equity1 capital,
system and its benefits should be
We, the representatives of invesallowed to take maximum effect
tors, as members of the Investor
in the transport field,
Panel, are trying to do our bit in
In; this respect, we doubt that the
cooperative effort of the TAA
regulatory authorities should have towards the attainment of this
.

the power to substitute their

for

ment

are

technical

management
decisions

judg- climate,
suchf
1
/
deciding

Scherck, Richter Wire
To Kansas

City

Now David Farrell

under

the

firm

David Farrell & Co.

name

the

ill^trate

clearly

the

that

fi-

continued.
;
many other areas of
in all forms of transportation, and interest to investors, ' but time
thus is concerned about the na- •does not permit their being mentional policies that affect their 'tioned.
U
is

closely

development.

;

are

particularly

involved

Winn

since thev

are

.opened

procedure is
There are

regu-

the hackhone

Inglewood,

liam Finerman.
<,

„

Now

renner

^he

least

expected

another

firm

otrpitmnn

Corporation.

name

Stieitman & Co

of:

tential sound

fact, that

the

avenues

for the in-

that different investors have

different objectives.
in

short,

term

*An

Street

now

to Fenner Corporation.

volume

which recently
article by Arthur

This advertisement is not

jn this

program, plus ground in- ;
stallations to handle this equip-

ment,

can

investor's

stake

predict
in

air

that

The

offer to sell

or a

solicitation of

offer to buy these securities.

offering is made only by the Prospectus.

NEW ISSUE

the

transpor-

$23,810,700

General American Transportation

Highways Construction
Another

both

field of direct

the

•

Corporation

concern

transportation

arid

4% Subordinated Debentures due May 1, 1981

finance industries is highway construction.

Long-term

obligations
mated

outstanding

highway
are
esti-

Convertible into Common Stock

than

$9 billion,
Many institutional and individual
investors

unless called for

particularly interfinancing of toll road

through May 1,1971,

previous redemption

are

ested in the

construction, with about $1 billion
worth of turnpikes in operation,
another $2 billion under construetion or financed, and another $3
billion authorized.

These Debentures
Common Stock for

being offered by the Corporation to holders of its

subscription, subject to the terms and conditions set forth

Prospectus.1 The

subscription offer will expire

3:30 p.m.,

York
*■

City Time,

Debentures pursuant to

Our interest in

seeing that such toll roads are
wise investments, because of their

the

are

May

1956. The

several underwriters

may

(

■.

New

offer

the terms and conditions set forth in the Prospectus,

public

vestor. Please keep in mind, however,

Fennec-

Wall

traffic

100

ordered

SUBSCRIPTION PRICE 100%

Some invest

intermediate, or longof debt obligation—

types

address

Mr.

Whitney

before

VVa„s/rVa"on,NBu"ial/rN. Y^AprU
1956.

io,

Trucking

Copies of the Prospectus
several

Eauities

may

1 rucking Equities

may

underwriters

be obtained in any Slate only from such of the
named in

the

Prospectus

and

others

lawfully offer these securities in such State,

Speaking of the trucking field,
here is a great potential that has
not been tapped to any appreciable extent, at least by inves¬
tors dealing in long-term securities.
In fact, Only a dozen Or SO

trucking companies have offered
their stocks to the public. Yet,

Kuhn, Loeb & Co.
April 26,1956

;

*';•"

(

37 Wall Street,
New York City, has been changed

years
from
appeared in

Boulevard,

Calif, under the direction of Wil-

As to the future of transportainterested ;tion I should like to mention some
estimates

branch at 307 East Man-

Chester

;

The firm has

self-amortizing nature, is obviholds some $17 billion of railroad ®usTherefore, investors are
securities
possibly results in. a deeply concerned
when traffic
widely-held belief that investors estimates fail to materialize, as on
are
primarily interested only in the West Virginia and Ohio Turn! the welfare of that segment of Pikes> b°th of which up to now
1 transportation,
there
are
other are reporting far less truck traffic
1 areas that constitute actual or po- and revenues than predicted.
,

the
de—

it-.is kept to the absolute

aircraft

•.their.best
ticular

capital

meet

future

equity.

our

amounted
to only $350 million just a year
types

improve our transport system. We
regard it as an integral part ofbusiness, which is, very briefly, to invest our clients' funds to

tremendous

needed

overall

I side

make

potential

180 new cargo -what effect increases in rates will 1
total cost of $1.5 bil- :have on the
movement of traffic.

nancial field

million, almost five times

securities

We, as investors, accept this
responsibility of working side by

• The

g fir c?r"er }?ans in carriers subject to public

to $385

proposals affecting tation will be even
greater.in the
transportation
policies., nearer future. And from the standWe cooperate in efforts to iron
point of the common stockholder
out differences of opinion
among the present
prospect is that, with
*be panels in order to formulate 011e exception, all this will be
a
position that is constructive to done
without
dilution
of
his
national

ready

minimum

to build
a

stand

available

mnv

enternrises

every
assure

money—around $2 billion in the
setts l n v e s
next five years> and the airlines .transportation in which : the in¬ to see the Interstate Commerce
irnnl, 1c have been forced to switch from vestor has a direct interest, but I ^Commission take steps to close
ownTr of common their past practice of flying on think': this coverage, is sufficient -this "time-lag," and we hope this

commercial

ties

transportation system of
country is to remain largely

it is the responsibility of investors

need

;t°Th^probiem

almost^ 140

conventional four-engine planes,

;

the

made

the

been

ordered, plus another 170 turbo-

Massachu

vn„

Institutional

140

over

million-dollar

an-

comoanies

looked

daily of the coming of the

age

the

program,
Administrator

must

ST.
LOUIS,
Mo. — Scherck,
$900 million coming from private -attractive to both bond and
equity Richter
Company/ 320
North,
enterprise.
~f
\
(investors. Failure to do this mere- Fourth
Street, members of the
!".'•«
V
;ly means that investment money Midwest
Stock
Exchange,
ariRailroad Investments
-will find more profitable channounce the installation of a wire
" ; Going back to the railroads for
:nels, lessening the chances of the to George K. Baum &
Company,
a moment.I should mention that
.regulated carriers to develop at 1016 Baltimore
Avenue, Kansas
the $1 billion annual rate of rail the same rate as the rest of the
City, Mo.
capital'expenditures maintained
economy, which would be calami•
during the post World War II pe"riod is expected to be even higher
ot delays in ob- .
Co. ;
during the next five years. For
approval for a general
LOS ANGELES, Calif.—David
'this year, for example, it is placed '/taining
•increase in rates to offset rising
.Farrell, 626 South Spring Street,
* at $1.3 billion.
costs has been a plague to these is now
conducting his investment
• I could go into other areas of
carriers.
It is most encouraging business

portation.

fact,

nation

whole

•_

the

government will pay Also,
regulated, carriers * should
about $600 million of this in con:be given the opportunity to earn
struction subsidies, the remaining
-sufficient revenues to make them

the airline

SU^ ^ future during the last few months.
for

unlimited

lion

this

shinoine

.vessels at

example of a radidly risjng interest by investors in other

preciated.

just recently that Ameri-

.-plannix^-

To illustrate

program;

scope

can_fiaff

One

Needless

Merchant Marine mod-

nounced

transport is

working hard to get indus¬
government together to

Maritime:

Airline Field

•

-this

long pull.

dustry^is ap- forms

say,

and others, of course, are investors in equity securities for the

vital

few
words about the responsibility of
investors in helping to assure a
truly "future unlimited" for our
«

traffic.

passenger

.the

has

and

ernization

in next five years.

♦" v

-the- vAdministration

finance

knows

traffic

passenger

6p%

intercity freight

lnterest.

;

„

Perhaps I should mention brief-

a potentially greater participatiorC of investors in the shipbuilctV'. ing iield. As many of you perhaps

-7

lion; (3) trucking expects to spend about $3 billion for operating equipment alone; (4) shipbuilders plan J80 new cargo
vessels with $600 million in subsidies and $900 million from

■(

Shipbuilding Field

debt which insurance companies
toll roads

investor

than

in tbe hands of private enterprise

regulation, but feels that

effort
that

(1) $2 billion airplane expenditure in next five years
planned prompting switch from short- to long-term funded

for

"Investment Deal¬

by Mr. Jansen, who is a keen
student of transportation matters,

unique in this respect.

M.mmum -Regulation

greater role for

the

for

Minimum

the investor in this growing field.

out:

-.*■.■•

and

should realize that the United

The

Digest.'! IA

increase in both

•

—and privately managed—forms of transportation and points

;

capitalistic

While the fear of govern-

States is

.construction, it is not difficult to

Mr.

present

ers'

ownership of transportation
be fairly remote at present,

terminal

new

our

Jansen

The Commercial and Financial Chronicle...

(2032)

*'*

•»'!»

<***♦»«*

Dependence

organization, of which 35 nations

....

Trade

m
on

Thursday, April 26, 1956

tYj-V of .the people.and of the Congress,

will- become, members,
is_ to <be
set up to administer the General

Britairi' has known
or/We must: clear the jair
well over a century that she must; —the nation's future depends

Agreement on Tariffs and- Trade,

trade

•;

-Great

die. She therefore adopted:

it. That's why 4he task you mem- ■
OTC, by the creation of an As- trade.policies that helped expand bers pf the Cohamittee on Foreign !>
semblyf an Executive Committee WOrld trade. We are rapjrcily com-; Trade Education have undertaken t
or

tion

accepting the annual Cor deli Hull Award, Panl G. Hoffman

effective and enlightened

|ng to the point where our eco- is of - such rprimaiy. national im-;
Secretariat;; nomic survival And strength, like portance. ^Yotiri efforts to spread
give a continuing administra- that of Great* Brftaih^, .is depend- the truth must be intensified. V 1 :iv;
to; the General> Agreement, ent on world trade.' We must face
May I elose with' the Words that'

permanent seat) and

will

declares world situation makes

S; will have a

(on which the Ui

By PAUL G. HOFFMAN*

;

Chairman of the Studebaker-Packard Corporation

foreign economic policy more imperative than ever and cites:
(1) Kremlin world conquest goal remains unchanged in their

,,:.We have, of course, been a Gon- Up m ^15 reality- and adjust ouri resident Eisenhowen used -in his j
tracting Party:tO:the\Agreement; thinking i and -attitudes., aAvJhe message to Congress urging.-ther
since its inception, and have par■•British did ma^'yearsago.:;;.
1- passage of the Iteciprocal; Trades J
,

•

■u

ticipated with the other nationsm

stabilizing- or reducing approxi¬
mately 60,000 tariffs and lessening
other trade barriers, all of which
have a very positive effect on U. S.
'prosperity:. *\* '*• ..V.-C'<iriHi

stress upon

world*wide economic offensive; (2) U. S. United
Nations Delegation's-statement we can lose, this economic

contest unless U. S. wakes up to

its implications; (3)

prop¬

aganda advantage given to Japanese Communists in case of
textiles; and (4) our growing dependence upon world
trade. Endorses President's proposal to authorize U; S. mem¬
bership m the Organization for Trade Cooperation, in refuting
protectionist's narrow, short look on the question of trade and
job protection.

cotton

Sr membership in-OTC is a

will

there
most

There is
world

new

situation

effective

Pakistan

in the

element

which

makes

and

perative,

enlightened foreign
policy even more im¬
and

that

the

economic

new

trade

parley- began

What

comes

will

give

us a

means

see

visit

commu¬

agreements with

Pakistan:

"The

foreign

other

the

that

tions hew

97% of
tin

the line

„ra

This sort

us.

our

vestments
I

can

standardized*

recently asked what

was

the

for the ■ economical
'.operation of our vast industrial

most

learned

0f-eyen, more

offensive. De¬

tal orientation of her trade to the

Plan

spite the star¬

capitalistic countries of the West

tling repudia¬

harmfully affect Pakistan's finan¬

during

tion

Stalin

the

cial

part

completely understandable
that Pakistan society all the more
often talks of the development of

leaders,

new

stability and the living level
people. Thus," it continues,

"it

Krushchev

•

;ship~

of the Kremlin

If, and the Last. Business and B«lp,o«,l Tr,d.
*11 ~lri«. ,1 th. The
West »»h

unchanged.

trade
Paul G. Hoffman

world

conquest.
whereas

;

placed

circles

under-

Pakistan

stand that the USSR, the

But
Staun

trade rela-

economic and

great em¬

Chinese
People's Republic and the coun¬
tries of the People's Democracies

AgK.it

setting 'tariff

•__

new

uroc

economic

communist

civa

sive

m q

hxr

made

nur

often-

natirm'c

vaaw

^as aroused
•

•

by our nation's
delegation to the United Nations.

ine

They stated:

basic

was

"The
may

present period

in history

day be recognized

one

major turning point in the strug¬
gle between communism and free¬
dom
The Soviet Union *.
(is)
using economic and social collabo¬
..

ration

military
riers

contest

for

means

well

jumping

political bar¬
We are in (an economic)
which is bitterly com¬

as
.

petitive."
the

Delegation to the U.N.,
specific en-

President's

dorsement, added that, "We could
lose

this

jaaxa

of genu-

wave

interest

and

new

•

the

Soviet

•

Union

massive desire to improve
economic, trade, cultural and

friendly connections between the
peooles of the USSR and Pakis¬
tan."

Another

Russia's
is

that

the

implications of
offensive

economic

new

they

using

are

trade

dissension

create

nations

among the free
particularly to build

and

the resentment of all nations

against" the

United

Last

States.

February Mr. Krushchev tolrf the

The U.S.

with

yauav

economic

contest

unless

the country as a whole wakes up
to all its implications."

Twentieth
munist

Congress of the Com¬

"altogether

that,

Party

they (the Free Nations) have
than

enough

pleased
which

grounds

with

the

more
be dis¬

United

States

disorganizing the world
by carrying on unilateral
trade, fencing off its markets from
foreign imports
and other

market

New Policy Implications

What

are

these

implications?

One is that the Russians

are

using

trade to win friends and influence

people.
Communist
trade
boss
Mikoyan's trip of the last month
through Southeast Asia shows the
design. He had, for example, a
brilliant

in Pakistan.

hitting

measures

hard

other

generalized

effective

than

this

the

propaganda

communists

against

campaigns

within

are

the

their

individual

litical relations with that staunch

ally of the West

communists

though Russia's diplomatic and
are

Alpopo¬

just about

machinery,

nrnrlnnlinnc

will be

welcome advance in

trade

that

policy

countries

ropean

1955

and
on

imports.
we won

lifted

Western Eu-.

between

1953'

the General

Agreement signaled a
major increase in U. S. exports to
Western Europe in
1955. - While
Europe's

in-:

imports

creased

generally by 18% during
1955, its imports from the United

States

rose

percentage
dreds
U.

than 24%,

increase
millions

worth

hun¬

dollars

exporters and the 4,500,000

American
is

families

directly

10% of

whose

dependent

income

export

trade.

fellow

and

travelers

But, believe it
of

sort

dollars

not, that's the

and

cents

advan-

tage for the U. S. which the high

tariff people
ing.

bitterly fight¬

are so

;

Somehow

persuade

the

protectionists

broad, long look
of the narrow, short look

"instead

ma-

Exports
Th

trade

about

phasize:
placed

that

harH

want

;

that

import is in fact

our

dollars

have

chance to

buy

are

to have

goods,

our

must

they

can

. j

Even if

these dol¬

earn

should

jobs

save

suring them that he is interested
in

straight commercial proposi¬

tion—trade
as

between

equals—

opposed to aid "with strings

it."

result

major Soviet-

*An address by r. Hoffman in receiv¬
ing the Crrdell Hull Award for Leader¬
ship in Building U. S. Foreign Economic
Policy made by the Committee on Foreign
Trade Education,
Inc., New York City,
April 18, 1956.

economic'

survival.

cannot

While the Russians
on
are

their
we

moment

new

doing?
a

leveled by

close ourselves off from the rest
are carrying
offensive, what. 0f the world except at a very
Well, right at the
great risk to ourselves. We need

trade

vicious attack has been

the high protectionists

against the President's recommen¬
dation that the United States join
the Organization for Trade Coop¬
eration.

before

now

you

would authorize

goods from
we

are

to have

expanding
other

the

outside
a

prosperous

economy

nations

need

here.

our

all

know, a bill
Congress which

our so

doing. That

ever

are

increasing

grow

world

amounts

in strength.

and
And

goods
if

...

loss

dustry.

expense

jobs in

some

other in¬

For example,

our textile
understandably

are

concerned about the fact that dur¬

ing

tion,

solution

different

have

instruc¬

that

concluded

is to teach .young

the

people

When the

themselves.

"do-it-yourself"
movement
ex¬
tends to education, we will begin
to get good results and at very
much less expense.

The

movement

union

labor

fulfilling

need in combating the

misused power of employers; but
it

will

day break up of its

some

weight, due to the inherent

own

differences in people.

paying

program

forecast

that

Its present

every

quarters of
sold us $19,000,worth of finished cotton goods.
first

the

three

000

we: shouldn't

that

same

from

cotton.

forget

period

they

that

workers

$95,000,000 worth of
Those

dollars

that

raw

other

just not true, but unless it is ade¬
quately
challenged
the
people
may

think it is true.

The nation must realize the tre¬
mendous

importance of trade.

is part and parcel of our expand¬

ing prosperity and
tant

factor

all-impor¬

political sur¬
these clear facts,

our

Despite
self-seeking lobbies, well financed
and fast
a

talking, continue to exert
major influence on the thinking

labor

unions

entitled

are

different

based upon their initiative,
energy,
intelligence,
and ' other
qualifications.

wages,

Investment

admire

bought

for

succeed, they must recognize that

1955 the Japanese

vival.

they

entitled

are

one

Cooperation

by consolidated
universities,
and
other attempts at mass education.
Having learned, however, that all
young
people are different and
state

work¬
industry by' raising the man in a certain group the same
tariff on competitive imports, we Wage is against human nature.^ I

lars.

be, Mikoyan has staged against us in Denmark
on this
nations cannot
earn
because of
told the Pakistanis that, all poli¬ when we barred Danish cheese,
xv*
question of trade. If they do, they our import restrictions are dollars
and
the
criticism
of
Aneurin will
tics to the side, Russia wants trade.
support the legislation au- that American industry will not
Pakistan, of course, desperately
thorizing OTC. The plain fact is be able to earn through exports
needs
industrial equipment and duties on bicycles. What the com- that
without
expanding
world This should be so obvious that it
also sorely needs an
outlet for munists will do to us in Janan if trade we face disaster.
We are should not need stating.
But al¬
their hides, jute, cotton, and other we bar Japanese textile products
living in an interdependent world most every advocate of protection
is something I don't like to think
agricultural products. Mikoyan
tries to give the impression that
and we are becoming
about.
increasingly
has appealed to the pride of these
there
is
a
net
saving of jobs
dependent on that world for our
Organization for Trade
through such protection. This is
newly independent people by as¬
bad

decreased

schools,

Other

exports.

nations, if they
a

fart-

restriction

any

restriction
free

anothpi<

spend-,

and millions of dollars edii-

to educate

Restricted imports Restricts

But

other we've got to

take the

years

Panct-

on t

After

nrrinr

coal must

our

and

another

ing ..'many

There levels cannot be maintained,
?.nd expanded unless we as a na,are w
ng to let-trade ex-

of their dollar

These concessions which
through the machinery of

Western

Dvnnrt1',in

may

vice versa."
Roger W. Babson

finery is for the export market

restrictions;1

quota

than 60%

Thanks to

foi>

abroad; 20% of our textile

Agreement, 14

, ,

further statistics to you.
examples:

our

GATT, which OTC will admin-.
ster, has already provided a very"
real value to the U.

foo d

one

\£ybe poison for

restrict myself to two important.

however,, it

alike

forv

thi^

me:

Roger, that no
two people
what's •;

*oeir,'lODaccq.

once

"Remember,

are

^ Tnl

industries

countries when the U. S, has made
some unobpular trade move. I still
recall vividly the campaign the

success

sultative
a

said

for

sell between 10 and 25% of their

countries."
Even

Warren

- There
any number of our
U. S. businesses that literally must

effective by permanent con- >■

markets

export

liam

;

nolicv

•

sur¬

Dr. Wil¬

Babson,

iS'f?'
Con-'
° ^n^-1uarter-7

tutional prerogatives"* of the
in

famous
geon,

:STl|Sf

Act,

phasis on periphery military ac¬ may serve to stabilize the market
Charges like these are just plain
tion and threats of military action for
many Pakistan products and, in
nonsense
and
those who make
to make progress tpward that goal,
turn, assist in providing Pakistan's them know it > OTC will not-in
the nkw leaders iput their stress nPPf)« for* thp irif1ll«trin1i7atinn nf
upon
trade offers and offers
economic .aid.- Perhaps the most '
graphic statement of the crisis
-confronting us as the result of this

pendent

high tariff people have, however
made wUd attacks claiming'
that OTC threatens the "Constigress'

New

England's

ex-

'jUStS JffJIXgg-

Th, .utocrily

normal

what

;
numerous
-

There are^also

answer

The

mem-

and

Bulganin,
the basic goal

•

Failure to authorize U. S.

of her

i a's

u s s

experience.

mace.

Marshall

own

had

years

~amPh:s
our nee^ to maintain
bership in OTC will, I am sure,
dev^lop export markets for ,
confuse and depress the internaproducts of our farms andtional trade situation and seriously factories.
You all know the excompromise U. S) world leader-^tenb to which agriculture is de-

from

know

thing

important

business.

active

follow from Pakistan's almost to¬

economic

was

matenals, we will need to imp

organized consultation is effective,

nist

■;

use

policy principles which naturally

ex-;

and the mistaken belief that in¬

alike " Mr.

are

amines

supplies of these basic

up our own

na-

their trade

our

expands and

economy

discussing the.theme "no two

do-it-yourself education,
tungsten,. inevitable disintegration of unions

rubber.

natural

BABSO^ y.

P*>pfe

are

nickel, and all of our

our

and

There

We import 43%

lead, 50% of

our

quick and effective

appreciated from these comments
"Pravda" made on Mr. Mikoyan's
;

pansion of international trade.

be easily

can

nations will

able to negotiate a continuing ex¬

Karachi just this last Monday.

which

forum

free

tha/two.

,ess

examples.

, -

By ROGER/1y

13 pounds'/of Manganese;'.', Of these
13 founds,,,we' produce "in
other

produce one ton of steel requires

By means of OTC

the

...■••

pride, for mstancer m our exten-.^
sive' use of steeL/It, is the back-;-;
bone
of our ecOnomic, life.
To
:

simple, ^"111Ivu
common-sense plan, pro
r
,c ■ - : r.
viding permanent administrative
marhinerv In nerfect the nneramachinery to perfect the operation of GATT.

" •' ---

■

the

Policy
the

work

Presi¬

dent of the New Ybrk Stock Ex¬

change is doing to popularize in¬
vestments.
is

carried

If, however, his
too

far, it

idea

result
in a great stock market
panic.
Too many people—for instance—
are being advised to invest in the
standardized

"blue'

vestments cannot

may

chips."

In¬

safely be stand¬

ardized. An investor should make

purchases according to his age,
responsibilities, temperament, and
the

kind

engaged.
counselor

work

He needs
to

which

advise

investment
him

about

this.

People are different, and
enterprise will succeed only
as this difference is
recognized in
every field.

free

Two With Colo. Inv. Co.
DENVER,-Colo! — Joe Malesovich and Larry F. Drewry are now
associated with Colorado Investment Co., C. A. Johnson Building.

Volume 183

Number 5528... The Commercial and Financial Chronicle

vv.,

' '

■

;

•

-.nv

•

had

•-

gross

iricome from its ordi-

operations."

nary

The Requirement that 85% of Receipts from Subscribers Be Re¬
the Issue is Sold

Months Is
vi

concerns.

;

letter to Chairman J. Sin-

paid

Revised

Armstrong of the Securities
Exchange Commission, Wen-

and

investors

turned is

must

somewhat

istic approach insofar
centage figures
are

however,
the

use

part of

small

capital

statements

real-

this

the

J. Sinclair Armstrong

fered

the

Barnes,

Small

Administrator

that

•

the

small

concern

the

inGT63S6S

pain

without

featiirps"
features

cited

the
tne

nf
of

cost

nrnnnsals
proposals-

SFf's
&eus

nuirpmpnt

by Mr. Barnes

concerns'

requirements
unless 50% of the issue

(1)

sold within

the

are

months, 85% of
paid by investors must

monies

six

he Returned-and

DeTeiurnea, ana (2\ that financial
(z; tnai financial
statements included in the offer¬
statements included in the offer-

ing circular must be certified by
independent public accountants.
^

Full

text

of Mr

letter

tion is opposed to the revision of
Regulation A of the Securities &
/Exchange Commission in the re¬
draft

attached

the

Corn-

mission's Release
Feb.

for full

While

may

such

expenses

are

....

14,

No. 3613, as of
(hereinafter called

1956

"Revised

Draft").;,SBA has preon Sept
13, 1955, submit-

••

ted its comments

■

the proposed revision attached to
the Commission's Release No. 3555

primarily specula-

has

their

and to its investors.

suer

This

requirement

the issuer in

could

place
suspended

state of

animation for the six months pe¬

riod/ At the

time

of' its

issuing

security

85%

requirement: wouid

compel

sucn,

companies
to
forego
tne
benefits of Regulation A financ¬

ing, and wouia place a
able handicap on the
small

business

alternative,

the
253

Commission

equity

capital.
that

we suggest

eliminate

of the Revised

Draft and

re¬

quire that promotional companies
the mining and extractive in¬
dustries file a non-exempt regis¬
tration.;
We
would prefer
that

the

small

busi-

less

complicated

form

of reeistra-

Z??^5a~

Jl $ ? P of
5>?
intent

contrary

Congress
'A '

Regulation

•

■

in
'

au-

253

eliminated

and

that

principal

and

sion

15% of the net

commend

ment

State laws.

Finally,

the

dealers

and

ers

handle

issue, It is doubtful if

a
a

their

under¬

any

writer would wish to subject himself to the hazard of the require-

*CLrWaS'+iv~ments

for the return of the subscriptions under the proposed re-

organized within
the date of filing

visi£n

and which has not had

a net in-l
from operations, of the char-

should

assure

best

full

efforts

writers

made

Sept,

13,

and

are

our

Draft

still

dated

recognized

were

incorporated in the

Draft.
of

recommendations

memorandum

1955,

now

Revised

opinion

the

dealers,

the

However,
SBA

contains

the

Revised

certain

basic

objectionable features which
prejudicial
11

eral

business

these

the

are

interests
In

concerns.

objections

are

g^n-

fol¬

lows:

(a)
tional
both

writers

dealers ratner

issuer

the

definition

companies
the

Original

I This

fully

submitted

Business
6

not

Rule 253.

net

profit

from

pointed

promo¬

contained

and

Revised

The

requirement

that

un-

less 50% of the stock issue is sold
in six
months, 85% of the monies

it is retained, however, we
suggest
that the phrase "has not had a

income from operations" in
paragraph (a) of Rule 253 should
be replaced by the phrase "has not

net

253

);

;

respect¬
the
Small

Administration

the

'/■:

Administrator,

;

Small

■

Business Administration.

The

basic thesis of

Securities
Act
of
1933,. as
amended,- has remained that the
public is entitled to full and satis¬

"Financial

the

Daniel
as

wants

invest

Commod¬

ity

dividual responsibility of each in¬
vestor to determine for, himself

Kelly

manager

the

factory disclosure of the pertinent
facts, and thereafter it is the in¬

whether

Chronicle"

April-19 in reporting the ap¬
pointment of

Departe

Reynolds

Co.,

particular issue after full knowl¬
edge, or an opportunity to obtain

Chicago,

the

photo-

graph

Daniel

Kelty of Sal¬
omon' Bros.

Hutzler,
York

utilizing Regulation A.

We would
that any such additional
reporting requirements consider
the importance of continuing to

was

request

Daniel

and

inexpensive

possible.

the

recent
-

study by the staff

Securities

Exchange

confirmed

the

gen-

opinion that the average cost

tently
serted.

inHie

photograph of Mr. Kelly
Reynolds & Co. appears here¬

with.

cessity of the additional require¬
ment
imposed by the Revised

New

the issuer be certified by

indepen¬
dent public or certified public ac¬
countant.
(See Paragraph 12 of
Form 1-A). '■ .*-f
"r'■!

Camp Branch

EUGENE, Ore.—Camp & Co. has
opened

branch office at 858 Pearl

under

Street

the

management

Richard Langton.

>y-

\ ■j

■;

These Conditional Sale Contracts have

ZZv-5.

..-

This

not

been and

announcement appears as a

are not

matter

being offered

of record only.

the public;
-

>'J

PS/;//: $17,575,000

City,

inadver¬

Kelly

correct

retain Regulation A filings as sim¬

ple

New

Southern Pacific

Company

3%-3.30% Conditional Sale Contracts
•

Maturing April 1, 1957 to April 1, 1971
•#

Direct

placement of the above Contracts has been negotiated
by the undersigned.

Salomon Bros. & Hutzler
Sixty Wall Street, New York 5, N. Yf

their

mit that proposed Rule 253 should
be eliminated in its
entirety. If

Rule
/

{ : WENDELL B. BARNES,
-

the

com¬

During the earIy m0% the de_,
pression years, the mightiest corporate giants suffered fiscal years

the

day of April, 1956/

Ruie 253

than

upon

Memorandum

pany" or one being subject to the
special requirements imposed by

without

case

of the Revised Draft.

We submit

"promotional

suggest that

penalty to be placed

gross operational income. We sub¬

The

Drafts is far too broad.

(b)

under¬

the'registration of security under¬
a

that net profitable operations have
no realistic
relationship to a com-

the

uranium

a matter more properly for
Commission's authority' over

Draft that financial statements of

: /*/;

operations"

the above definitions.

being

continuation
of

CORRECTION

For example, we question the ne¬

eral

Revised.^Draft alsp imposes
sPecla^ requirements for certain
c?nipanies defined as follows:

pany

thi$ is

concerns, promotional or not.
In our opinion thb answer to

Many

should continue to
be available to all small business

out

pnrnmie~shn

m^onai eompanicsJ--,/-..

from

Commis¬

to the necessity for
requirement in order to

85%

Regulation A

statistics compiled by the SEC it-

income

the

eliminating the require¬
for qualifying under local

requiring aaditipnal dis¬

the notificationi required by Rule that' this
requirement is highly
229 and has not had a net income llnrPaii<?tirv cvpn nn the ha sis of
from operations, or (ii) any issuer:

net

having
business

for

■would

concerns.

issuers

place

the knowledge.
We submit that
Regulation A. |
■ .
retention by such issiiers of l';we could not, object..toJjthe ,Comtmission

;

/ These
revisions
"any issuer which-'^
impose novel, and drastic
(1) was incorporated or organ,limitations on "promotional" Rer ized within one year prior to the
gulation A financing.;. However, it date of filing the notification re^shduld be pointed but that these quired
by Rule 255; or
;
r
limitations are not limited to ura(2) was incorporated or organntum financing, or to
mining and ized more than one
ear
j
t
extracting industries, but may be such date
and has not had
t
applied to all promotional busi- income
from
operations, of the
ness concerns.
It is also noted that
character in which the issuer inthese limitations are pot imposed
tends t0 engage.-for a full fiscal
on
non-exempt issuers.
In our
year
immediately prior to such
opinion
these proposed revisions
filing." [Rule 253(a)]
would destroy the utility of ReguWe restate our vigorous
oppoIation i A
to
many
meritorious sition to inclusion of
the phrase
small business

issues

Canada quality under the ap¬
plicable Province law. We appre¬
ciate

Rule

in
an-

provide

consider¬
access

requireA

under

is;,

Qompany

the

Regulation

local, State and
Province laws, but has continued

period resulted in

substantial benefits both to the is-r

removed

that

^It is bur understanding that the ^ta^ two fiscab years." >
proposed revision of Regulation A: * Speqial, limitations or requirewas designed to serve as a solu- fnents were imposed on such pro-

be engaged* in
tive : ventures.

—

exempt financing is contrary

July, 18, 1955 (hereinafter acter in which the issuer intends >
called "Original Draft").' -to^engagei, for at least one of the
; ;

tion
to
many- of-the
problems
caused by recent underwritings of
issuers engaged, or proposing to

onerous

+hnri7inj»

tQ. the

year prior to

eome

they remain separate regular
tions, especially since the Revised

closure for promotional companies

...

^ •,

incorporated or organized
opposition to than one year prior to such date
of;

such six months

proceeds will/not

Original Draft defined
"promotional company" as:
.

re-

inponi

rpTYYAin<

x..

The

one

of the issue, and
sale
beyond

Regulation A arid Regu-*
be consummated and

not

that

the

"Promotional enable them to obtain underwrit-

■

and

financing,

hon

out-of-pocket expense is extremely important to small business.

opinion this

our

cfill

SEC. To impose a
greater burden upon Regulation A
financing than that imposed on

underwriting and sales expenses)
ana saies expenses;,
basic
saving
in
immediate

Definition

sold"sind

were

tion with the

registration is-

this

^ ittfST
corporated

5u%
-

the
abuses in promotional ventures is

er^

smay part 0f the total expense to
the issuer
(which are primarily

The

completion

Rule

fjnanrjnj?

0ne-third of the cost of similar

sues.

85%

Sffmeff s^SSxSh^ss <!onQerns,seeKing jnis smaii-

expenses

for sale

months

bSSwfe
SS'a is toatt™ smaller

legal

lation D

qualify

thah" sik

~^u.r ^aslc objection is that this
requirement - would impose upon
gLJ
°,n A '1[la°clne a requirement not imposed upon similar

Company" Remains too Inclusive

The Small Business Administra¬

vised

such items

Barnes'

1follows
-

than

Re^^TfSS'
®

lrom.

?ai>d printing expenses, which

"prejudi--;be

cial to the interests of small business

that:

are

less

the

table and undulv oopressive to

savings to the issuer;", these
•

and

return

receint^if

prafl/ but in

in**

of¬

^ 11^ ReSs^d

Regulation

objectionable,;savine<?

receipts

|ai^fo^?w"tAin Six month? wf
annredate^^s" amehorsdioir ^of

untISBA
is the opinion of i

iff" fc«»ne»es..seetan« capitaL^cadi
the "basic

/Among

paid for
This requirement applies

the" securities

exemption from

ReStfon

nation of

been- Draft

have

Boston

Philadelphia

San Francisco

Dallas

Cleveland

■

further simplification, wej
suggest tnat the proposed combi¬

ment

of the securi¬

been, sold

reauired

essartCioadbloTs1nPhee patS'of a usually results
ff* «"aa«ngunder Regulation
substantial
tne

85%

Draft

additional burden '

t?on "f

there

many successful issues which have

issuers defined iri Paragrapli offering, the

which

Business

loaaoiocKs

to be is¬

are

S^^^n^ragr^h (cl'lf

offer-

Administra-; V(d) The Revised Draft would
tion, expressed opposition to - the combine Regulation A and RecuCommission's,f proposed revisions',
iation D
It is the recommendaof Regulations "A" and "D"^cov-:
the SBA that
A
ering stock issues of not more than remain a separate

essary

of the financing.

foregoing, this

volved in using Regulation A. '

$300,000. The proposed changes,',:
according to Mr Barnes, are

has

in cash.

limitation

commensurate gain tp; the public

Wendell B. Barnes

dell

sale

<a> ofRule 253, discussed supra, probably in immeaiate need of
business which is and w^ich in the Original Draft the funds to enable it to proceed
-raising
equity waS referred to as "promotional" with its development plans. ;
Y
'
companies.
This requirement of
In' view of the

included

places

that

and

ties originally proposed to be

the per¬

ing circular must be certified by
independent public accountants.
It is the position of the SBA that
J.

them unless 50%

(O The Revised Draft contains
requirement .that
financial

invest¬

of Regulation A on the

interested

definite

of Rule 253 of
provides that

(e)

from subscribers will be returned

re¬

concerned;
requirement con-

this

tinues to

tne

the

of tne totai receipts

Furthermore,

//.-■*

•

Draft

of the securities

none

Oppressive

Paragraph
the

sued
a

from

Still Inequitable

and

financial statement.
in

is 25%

Regulation A is¬

V'As

required' more

Among features condemned are those deal¬
ing with return of 85% of the proceeds if issue is not sold
wilhin six months and
independent audit of company's

clair

50% of
Within Six

umtnown

market

ment

suers,

turned to Them (Unless

Administrator Wendell Barnes contends Commission's
propo¬
sals are unrealistic and prejudicial to the interests of small

issuers which are

non-exempt

similarly

business

to Regulation A issuers, and even
to

•

V9 And an" Rnvisinns
HUM
mm
iiuviuivira

(2032)
'

■

Chicago

West Palm Beach

■

The Commercial and Financial Chronicle...

(2034)

late

No Privacy for Lenders and
Consumer Credit Tenability

iences in

ability

of debt for the

modern

advance

of readiness or

them

for

pay

conven-

now

deeply

im-

bedded in

our

national
It is

mores.

part
In

our

way

life,

response

the

apparatus

for

creating

and

tin-

guishing

♦

Edwin B. George

interest

the

Parts

added
a

nav.

^ajor segment of
It

also

by widespread

the

tenability

present position in
'

„

uncertain

rekindle

dom

the

reestablishing

wis-

consumei

credit controls—which could lead
far

and

work

sorrie will
The

consider
itself

crisis

dam

the

rate

badly

that

sense

lesser

water

rise

which

but

evil.
the

over

outstandings

has apparently been reached; and
fiom that peak, we are definitely

receding.

Nevertheless,

the

of credit is under at least

microscope, and
would probably
official

and

any

flurry

new

bring

political

role

weak

achieved

has

the

and

rendered,

services

consumer credit has

worked

its way into the public
domain, which provoked my title,
"No Privacy for Lenders "
T4

problem

through

elimination.

under

trend
is
a

criteria

credit

have

extension

variations
the

are

cUnr.4

useful

ings overau

For

this

are

not

i_j

bad

today

shape debtwise

largely irrelevant,.whether
correct

themselves.

4vf

them

strikes

and

then
the

on
.

turn

key

siderations.

very

not

if the sitNet

sav-

are

growth

that

which

merely

consumer

in overall

produc-

plausibie

seems

some> we WOuld still be walking
jn ^be dark. Production embraces

hinds

many

voiatiie

con-

activity

American Ba»ke-

both aggregate

background,

wartime

period

factors

debt

^he

credit

fallen

almost

picture has already

begun to weaken- Growth in auto

between

the

and

into

decline

months.

mer

spring and

the

early

sum-

For other goods, the

summer

months should

only minor growth at best.

see

the

fact

Temporary Debt Burden?

that

let's

our

probably
already,

10%

year-end 1954 outstandings refleeted the strong beginning of
ex- the 1955 auto model year in late
back 1954. (Growth in auto paper ac-

This assessment leads

another

there

question

inevitably

about

which

discussion, viz., how far

been lower and implying that this

fJj
J

asU4° underlying.strengt.i in

structure. The facts
?, delinquencies seem to be
.

result

that

^ion

Even

activity

recent

the

then

fears

underway,

that

some

loosening

of terms will
substantially higher re-

iead

possessions in event of

in .overall

activity

decline

work

much

sickness

and,
from
of

propping
In

extenand

current

our

sumer

position

con-

debt

seemed

save

credit

purchases

means

goods

credit which has occurred

the

period

over

question.

turn

the

behavior

secular

when

Analysis of data

the average

lend1rsuUpport°to this
lends support to this

toilv
family

and

consumer

cyclical

debt

that

in
a

the

form

questions.

answers

Let

brief theoretical

does

economic

consumer

begin
question:

credit

influ-

almost
almost

per

Louis^ 1S not absolute Changes but Changes
in

the rate of change that stimu¬

a?m

nm-

autos

above

1 ueHrowth In

1965
sales

nll?q

hac;i<?

lnnspninf*

thp

terms in which they are sold, took

place.

Nothing

Sale?

nroSDert

'Js

this

auto*

j„
far

run

substantiaiiy
bei0w
duri
the comparable pe_
riod of 1955j and even thU

debt

around

—

about 35%.
Questions
Questions

data

for

also
also

are
are

families

incur most of the

viz.,

those

income

raised
raised

that

bv
by

ordinarily

consumer

debt,

the

$3,000-$7,000
According to the

classes.

Federal Reserve Board Survey of

Consumer Finances, by early 1955,
for about one-third of these

the

annual

instalment
er

rate

credit

exceeded

10%

alone

beavy pusb
in February that may have been
the

'r°m th?Tre™£ndker o£
(I don't know

model-year.
to

the

case.)

3 ®00d 0£)eni^ unlikely19f exceed
to mode£

income.

For

fni^-vpar

20%

rate
most

instalment

place

the

credit

after

huge
during

this

data

ga^G a s1^
rhtnvP!

obligations borne

other

fixed

iq?7 Ilk

these become available.

they

left

for:

now

while

much

instalment

smaller.

these

absolute

themselves herald
look

forward

the secular

are

result,

figures

disaster,

upward

in consumer credit

term.

ex-

debt

over

Again, it is the

decline

movement
the longer

?ince

ods

hnw

eiiP«

wTll

the debt burden

Smotet/tUoJ
in

Hi<;pnnraging

iqce

fh^

in eariy

was

nwu Question I want to ask

mirrbaw

ictureg thSanP u

1956

thls: Where will the effects of
discouragement

a£y

dU^artl

snending'

to debt

durables

buying 0£
discouraged.
But in

That .g

fai,

durables

addition,

there

themselves.'
gg

would

some

nondurables and

serv-

ing repayments forced contraction
of outlays for these

purposes,

Now for my final and $6-billion
ouestlon: Does the foregoing mean
we

are

for

recession

and

Tax Cut to Avert Recession

plans to buy furhousehold ap-

consumer

major

other

things

were equal in
clearly be the

1956,

this

would

case.

The

consumer

saving ratio

would tend to rise somewhat due
to diversion of income to debt

re¬

incomes jump more rapidly than

payment. This in turn would have

assumed

by prospective buyers,
And in addition the proportion of

what economists call

buyers of such items intending to

tion reduces

make

instalment

purchases was
Thus, the be-

somewhat smaller.
havior

rabies

for

outlays

likely

other

sumer

deed>

are

Cyclical Change

any

quarter of

ally

adjusted
on

concerned.

far
In-

effects—the

backfire

"multiplier"
produc-

incomes, this reduces
spending further, and so on—and

have

addition

unfavorable

impact on the rate of investment
in
inventories, which would in
turn have

thus

feet

multiplier effect and

still more unfavorable efitself.

these

effects

emerged, fixed investment might

1956 the season-

^g^ownnfmulaHve^downward

doubtful

Finally, and of greatest immediate importance, over the short-

spending

the trend in con-

credit

du-

reinforce, not

offset, the change in autos

untenabi^- as effects

ity of the rate of growth that is
discouraging.

aoePrnhipH

fs th^t

oer

tfme such datfhas

1956?

by such units,
for
insurance,

have

their

nllt

Moreover, according to this Sur-

pliances in 1956 were a bit below
including, those
their level early last year, precharge accounts, mortgage pay- saging a physical volume of sales
ments,
food
and
clothing,
the slightly lower than 1955 unless
in

this is the first
hppn

denress'inv inflii'

relative to

JGad^^g bay^^that
niture

the

fbg

vey,

appear impressive.

constitute
enCe

con-,

Hp
ices and perhaps investment of uniincorporated enterprises, as grow¬

ous."

view

bulk of lnstalment debt

{wemM100^

overflow

assembled, the picture at the
year's close was even more dubi-

was

tms judgment since purchases last
yeai ran far ahead of early plans,
and, a,repetition of such behavior
seems unreasonable to expect

took

nlannpd

a«;

Gars tms ,year as planned to do
a year ago,.aoes not gainsay

was

Since

latest Sur-

Finances, indi-

eating that about the same percenta&e of families plan to buy

(1954)

the

^XmreaHfe^rLlTrth^ ihl
call my earlier remark that the

with

equalled

one-sixth,
more.

Even

units,

disposable

S^inlv" hvTebtos w£h fn
felt mainly by debtors with in-.

repayment of

of their

Postponement of other purchases,
This is not to say that family units
accounting for one-half of total
buyin§ of durables were affected
in one or the other way since the
"hardship effect" was found to be
much more dependent on level of

£te so the totak

been at cost 0j

vey

activity?

As»i°o£ inventories, It

give

somewhat

tffamiWhtovidPOuDtardnCo°Z 6"5 toof Consumer
f6'« million'
family moved upward only

put

could

year, saies are

^bat I bave t°
several

boost sales

fourth

onlv

somehow

shot-in the

the

Payment

nostnnnpd

could

outstandTg nerC°famnver
outstanding
per
family

must

with

iargpiv

ducers

that

we reach the heart of our subject.

say can best be

1956

judgment. Between 1949 and 1955,

margins

quarter

bas

relative to that in the incomes

?°duerhavs fbt

strong enough to support fcave
anything like the rate of growth those

pear

?° 1°!^b ^or things to be put
It

Of those families having
instalment

some

shift

pansion

way.

tober.

Make-Up Date for 1955.

require;

secular

some

Secular and Cyclical Behavior
out of the

services.
Taken
together,
however, these forces do not ap-

1955

found.

unemployment
pensions, etc.—

and

rise, in

itself, quality of loans is not dec*s*ve in assessing the soundness

a
ioKK«

have

not

cash

will

permit

proportion

the spectres of want and
once

financing

ma-

not

age

finally

not

that

would

insurance,

same process
to the extent

terialize, this

credit,

abnor-

changes in methods of
for
social
security-

insurance, old

years such' repayments; drained
spending away from new supplies
Gf goods, aggravating the reduc-

health

alleged. But that is hardly ground
enthusiasm. ^ePaymen^
consumer debt has-been goof as
eyi?n+SS lr^
trouble is that during those

low

witness

income—notably the
We are now set for a
third 45% of the total number of famifact that as real income rises, the
question: Will the price for 1955 lies — about one-fourth said that
percentage thereof in excess of be paid in 1956 or in later
years9 k was a hardship to make the
that required to cover basic needs
j think that u will be
id in required
payments and another
grows; the further fact that as a «ood nart in tbp
oPPnnf4 ann third
quarter said that their debts forced

per
per

a ^0UIJh point, many take
c®mfort in the apparent quality
outstanding loans, noting that
J" e ra e
delinquency has never

•

Mo, March 21, 1956.

income

periods

postwar record

our

sustainable rise in the
of

and

How

Association, St.

lar

the

this

and

■

Nation*

10% at the close of 1955 de-

over

spite the substantial advance
two

specifically,

patte~n

ence

this

look at

—or

rate

tion>

I pro-

first, to comment briefly

some, of

take

scarcely adequate
meet requirements of

credit to

not

what

relevance,

disposable

prob-

this

that
4

are

immediate

them, I shall comment later.)
Postwar Record

purpose,

indicating

Against

housing and business investment,

of the asserted "facts" that

regarded

not

because

otherwise.

means

concentrate
4

the

the country

were

are

discussion at the pres-

juncture.

many

account

but

have

adjusted

matters, needing to be taken
in
forecasting de- standing
to
disposable
income
velopments in the whole economy, from 8.7% at the close of 1954 to
into

people

uation

sions

which

upon

■

the net effect
activity would be nil.

could prevent emerof deflation. But these are

providing

that

around

things

a;™,

short

pose,

So far

oe at
other

debt

consumer

other

way

and

...

„

most

process

long-term trend to be

cyclical

are

latter

the

many

sound

expected

ent

,44

varying circumstances. The

secular

4u-

^ut forward for probing the

limits

Through widespread

discussion,
been

Je,,a

(If

repayments

extension

third quarter 1955
billion—from which

increase in
$4.8 billion

money

of looking at the
same
point, it too is not very
illuminating. It would be unfor-

inquiries.

Actually, because of the stature it
has

Did

comforted

are

another

peak

sonally

other lenders,

from

proportion is of

relevance

others

the

g(?ne so far as }°

speculation

the

rate of $36.9

paper
outstanding, which on a
annual rate of
seasonally adjusted basis hit an
outstandings totak d
average annual rate of $4.8 billion
in first quarter 19o5,
jn tbird quarter 1955 fell to a rate
rose
to
$5.9
billion
in
second 0f
$31 billion in fourth quarter
quarter 1955, and-ran close to 1955 and shrank further to a rate
$6.4 billion in third quarter 1955. of $2 1 billion in
January Forall
A rather sharp drop to a rate of other instalment
credit, the fourth
$4.5 billion occurred in fourth quarter rate reached
$1.3 billion,
quarter 1955; but over the year, but that for
January was only $600
outstandings rose about 24% — a million. February
should
have
change of roughly the same order seen another significant rise in
as the huge Korea-induced jump auto paper; but over the next few
during the year 1950—and boosted months, the advance should
taper *
the ratio of instalment loans out- substantially, ana it might turn

secular

credit basis.

rise

offsetting

overall

gence

iem.

consumer

Concern bas

with

Similarly, jumps in demand resuiting from more rapid turnover

high and have been rising rapidly,
The national

Thirdly, if

•

above

runs

approach

is the prospective change due to
counted for almost three-quarters such factors as
temporary market
of the total, representing a rise saturation, etc., and how far may
Some argue
that the current mally large growth in instalment by over 38% for this category.) it be due to growth in the debt
volume of outstanding consumer buying as many contend? Beyond For overall consume*credit, the burden itself? This is very diffidebt
is
not
dangerous because question, in my judgment.
Be- advance during the year ran just cult to gauge. The former doubtthey are amply covered by indi- tween the end of 1949 and the above 20%—only moderately be- less affords an important part of
vidual holdings of liquid assets, close of last year, consumer credit low
that
occurring
in
1950— the explanation. As to the latter,
That is true in an overall sense,
rose
about
112%
as
against a carrying the ratio of credit out- the most recent evidence available
but the debt-asset ratios for those jump of about 48% in disoosable .standing ; to
disposable
income is the material collected by the
typically :buying on credit are income. There are at work secu- from 11.5% to over 13%.
Michigan Survey Center last Oc-

credit
-

tunate for

lite.

credit mechanism.

evidenced

h ®

into

irelative

Rationalization

borrowing.

way

grown

consistent

rate

and

•>:;

this

in
the
credit
position.
During
1955, the rate of expansion in instalment debt was well above the
secular rate of growth between
the late 40's and 1954. The sea-

loans for other purposes by banks

Commonly Argued Debt

debt

support

the nation

increase

growth in credit

leads

fvfl n Pe°Ple as a whole have been savS
*ng more ^an they have been
e d to

S!? °
adopt

de-

mere

rate

perience after the first surge

The contraction

enjoyment

will

term, this effect seems certain to
be aggravated by cyclical change

note

deflationary. This
be expected eventually when-

may

the

by Dun & Bradstreet Economist after making an
analysis of growing consumer credit expansion. Mr. George
probes some of the more popularly debatable assertions and
finds: (1) debt-asset and credit-production ratios are not too
relevant; (2) net savings are inadequate for today's requirements; and (3) commendable low delinquency rates, as in
1930-32, can drain funds away from new goods to repayments
and aggravate reduction in activity. Turning to the more im¬
portant interplay of secular and cyclical forces, Mr. George
discerns insufficient support for anything like the credit growth
rate between 1949-1955. Expects the price for the 1955 boom
to be paid in last three quarters of 1956 and doubts if in
any
quarter of 1956 seasonally adjusted annual spending rates on
durables will approach third quarter 1955 total of $36.9 billion.

credit

sales made

estimated

the

crease

In pres-

only

need

expansion of the system and secular rise in the proportion of total

Allowing for several assumptions, including a $3 billion tax
cut, probable third quarter Gross National Product of $405407 billion and $411-414 billion in the fourth quarter 1956 is

;

depress demand.

that, taken by itself,

the

Director of Economics, Dun & B^adstreet, Inc., New York City

context,

ever

By EDWIN B. GEORGE*

ent

Thursday, April 26, 1956

whether

annual

durables

rate
will

even

pressures;

could

and

ensue.

some

recession

The whole process in

Volume 183

Number 5528... The Commercial and Financial Chronicle

(2035)
fact

would

judgment

invalidate
to

causing

drop

cumulation

the magnitude of

adjustment in

any

initial

our

consumer

sales

effect of

credit,
hard

judgment,

which

presumed
that in 1956 gross national
product
would

average

moderately above

prospect

—a

complicated

Dr.

fact that cessation of accumulation
would
itself have
a
depressing

average above last quarter's level
the extent presumed?

multiplier effect on sales. The in¬
creases projected for other com¬
ponents, but assuming unchanged

Or, fi¬

nally, might the

year

be somewhat

mand?

<;;;?>

inventory investment; and

I haven't time to discuss these
questions at length. Let me say,

of the 1956 model
year,

ity to needle sales toward the close

however, that the

year as a

depend much

whdie

Spahr On Gold and

reveals

the grounds of insufficient gold

v/*'

credit

consumer

the

process.

cut)

•better if

and-will

somewhat

tax cut of $3 billion to

$3V2 billion materializes.- Let

....

Chronicle:

When

June -30,

volume

The article "A Primer

equipment

and

residential

construction

tures

rise

will

non¬

1936, the total

second

half/

ter

1956,

most.

quarter

around

run

annual

quar¬

that

1956

$409

rate

event,
would

$412

billion

the
be

behavior
much

the

Federal

and perhaps

ager

been

of the Bank of Montreal, has
appointed Deputy General

Manager,

ac¬

cording to

announcement

by the bank."
Mr.-.

second quarter, but
Hart,
jump at least
$500 million in third quarter and jw ho will
another $500 million in fourth -shortly comquarter.
,
• "/
y.-V
\
• *.plete 25 years',
service

Turnaround Factors

the

Of these, apart from consumer
credit, housing and investment in
inventories are the major cases.
,

that housing starts
begin to turn upwards—
in April.
For a while
are

thereafter;

however,

outlays

for

Gutmann

Reserve

more than 10%."

Let

;

ounce

1920

1934

Correct

Dr. Spahr

are

and

one

therefore

that

order

the

means,

Banks

would be

autumn'and

basis, is
to state that the

70% revaluation

results

cannot

proposal is neither possible nor
it practicable, it would
only
aggravate a given situation.
We have to be satisfied with the

are

increase

Unfortunately
a

case

billions)
over

that

in
$43 in

just

where

Commerce, and myself empha¬
continuously.

size this

DR. ERNEST R. GUTMANN

Broad

Street

not

derive

less.'

financing.

son why in 1934 a 70% revalua-

The data

Dr. Spahr read

fol-

:tion 4was,

Charles

officially undertake

Speakers

Cather &

will

Leuwr De

reflected

below

outlays, which

Later, he served successively as

will

part

months
fall

completions

Assistant

Company, Chicago, and

namely to adjust that differentia

Samuel

erosion

Colpitt, New York City.

which

ignored

the

Brown,

Coverdale

compensating action the pendulum
fr^

;w¥ch had swung from 60 on the
scale to 125

was brought back to
the middle, to 100 in the direction

D. L. Scritchfield Opens
ANGOLA,

—

David

gary,
main

.expenditures for repairs and mod¬

'j',

an offer to sell or a solicitation
of an offer to buy these securities,
The offering is made only by the Prospectus,
* :
'

higher
starts, total
probably drop off

spending will

about $500 million in first
quarter
1956, hold around the lower level
in second quarter 1956 and

just

about

return

fourth

quarter

(1955) level in third quarter 1956.
In fourth quarter
1956, however,
outlays should be running between

Manager at the Edmonton
office, and as an agent at the

$3,350,000

1953, after an extended trip

through the Far East as a special
representative of the bank, he was
made

office at

lowing

Portland Gas & Coke

Superintendent at the head

Montreal, and in the fol¬

year

First

he became an Assist¬

ant General

Manager.

Dated

fourth quarter 1955.
,

but

are

here

inventories,
still

noted

is." the

low

Due

April 1, 1976

Price 101.67% and accrued interest

stock-sales

the

Mortgage Bonds, 4%% Series Due 1976

Billard Director

$500 million and $1 billion above

ratios

Company

April 1, 1956

side;

earlier, what counts
of

rate

change

stocks. In fourth quarter 1955, this
was;
-4-$5.3
billion.- We
cannot
The

maintain that rate for any length
A falloff to -f $4.0 billion

of time.
seems

reasonable

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

first quarter

1956 and another

drop to perhaps
.$2 billion may be expected in sec¬
ond

quarter

the

inventory-sales

be almost

1956.

ratio

should

cated above.

move as

indi¬
Gordon

On that basis, second

quarter 1956 GNP would be only
$3 to *4 biUion above fourth quar¬
1955—the jump in fixed capi¬

tal and

WILLIAM BLAIR & COMPANY.

satisfactory if the other

components of GNP

ter

HALSEY, STUART &, CO. INC.

By this time,

government

spending be¬

ing partly offset by a loss of -f $3
billion in the rate of
inventory ac¬

Gordon
a

director
has

lard is
&

FREEMAN & COMPANY

Billard

been
a

was

Western

Air

elected

SHEARSON, HAMMILL & CO.

CLAYTON SECURITIES CORPORATION

Lines,

announced.. Mr.

ARTHUR

Bil¬

partner of J. R. Williston

Co., New York City.

JOHNSTON, LEMON & CO.

MULLANEY, WELLS &. COMPANY

April 20. 1956

L. WRIGHT &. CO., INC.

Scritchfield is engaging in a secu¬

This announcement is not

bank's New York Office.

ernization and moderately
unit values for new

lis

rities business from offices hero.

Superintendent at Cal¬

.higher starts earlier in that year.
Despite a continuing uptrend in

Leuw,

quoted example. Through the 1934

-ji {2y}.
he became
Secretary to the President, the
late George W. Spinney.
-

winter

thus

and

<?fourth quarter 1955

Federal

brought

housing will continue to reflect .-■5 years with
the low rate of starts in the late the Canadian Army,
-1955-56

convert

equal to 2.1
These 2.1 ounces
in 1936, have the

(instead

$57

[not so, this is

deposits was $42,902,000000, the index of wholesale prices
was; 167
(prices for 1926 = 100).

return, to

gold, and that is what

equity of $73.50.

"For example on June 30, 1920
when the total volume of money
and

the bank after

at $35 an ounce

ments.

was

of gold.

ounces

equal

nosts

II.

sub-

apples

at $20.67

;

below their legal reserve require¬
We see that action on such

shorten the above figures
simplicity; then $43

into

redeemable

more, but where more is Room 1603-4
$57 in 1936 do not even
I
jNew York 4, N. Y.
rjust as wrong as
equate $43 in 1920—they are 27%
[April 5, 1956.
1934 dollar and the 1956 dollar are
.deficient—$73.50 are required for
identical. They are naturally—de \this
purpose. Now 1920 was a pejure—one and the same, but—de riod of expansion with the index
Chicago Analysts to Hear J"
facto—everybody who has to pay of prices at 167 and 1936 was a
CHICAGO, 111. —The
Invest¬
two dollars for an item for which
period of contraction with the in- ment Analysts Society of Chicago
he formerly paid one dollar, knows dex at
79, that is also, the reason will
hold
a
special afternoon
.the difference, that there is indeed why the
purchasing power of the forum on May 1 at;3:30 p.m. in
a 50%
shrinkage. In Dr. Spahr's .monetary unit was. 60 cents in the Adams Room of the
Midland
case the monetary units
compared 1920 and $1.25 in 1936. This dis- Hotel.' The
subject will be re¬
are not even—de jure
the same
simiiarity was the elementary rea- cent developments in toll road

lows:

winces World
War

could

•given

variety of im¬

his

and

withdrawn

than

iittle

not

pears,

-from fictitious premises.

wide

portant

1936 dollars

same

compared

with

.officially took place by law.

bank, has

beH

the

less

them

\\
j^st that was 1936
The premise that 1920 doL1920.

because

Canada—G. Ar¬
nold Hart, Assistant General Man¬

rate

Government,

ing the first quarter

So $43 in 1920, Gold-Bullion-Standard—the offi¬
they are not 'should have been $73.50 in 1936, cial spokesmen for the U. S.
alike.
In the [not to be more—just in order to Treasury, the Federal Reserve
example given be even. Now Dr. Spahr reports i[Board, the N.A.M., the Chamber

by
»

(

By Bank of Montreal

outlays will probably remain close

soon

Dr.

MONTREAL,

growth averaging between $400
million and $1 billion per quarter.

will

>■

G. A. Hart Appointed

■perhaps

and

done.

■_

to fourth quarter annual rate dur¬

prices

;

We own today $665 billion of
liquidable assets, if only $10 bil¬
lion
(iy2%) of these would be

for reasons of

school

tract

lars and

State and local governments will
to increase their
spend¬
annual

cur¬

it existed in 1933 under the

1956 conditions.

half, the supply of money and deposits should be increased by a

(1) We learn '(instead of billions)

outlined earlier in the text.

continue

ing moderately—the

to add

quarters.

should

to pass by de-

GNP

and

credit

consumer

-advance by about $200 million
per
quarter in the third and fourth

;The odds

drawn

■

fourth

additional $2.2 billion
in second quarter
1956, and then

For

conclusions

index

the

fault.

billion

would

$2.2 billion in first

some

rapidly than I have
■fyl-C. /, ' •■;

suspect, however, that,
shan't get a cut of more than

expendi¬

expect
the annual rate of increase to be
around

as¬

not be allowed

ard

amount—very raoidly during the
first half and
slightly further in
the

same

our

That is a proposal to return to
the redeemable Gold Coin Stand¬

was

substantial

the

eliminate as
possible in

rency redeemable at the statutory
rate of $35 per fine ounce."

slightly
figured.

Consistently Positive Factors *
Nonfarm

importance—is to make

lation moderately lareer and con¬
sumer
credit moving uoward

briefly for my reasons
thinking that this will be the

case:

billion.-

unsoundness

things which

our

our "Gold-Bullion-Standard"
by U. S. Treas- nV'Federal Reserve Board, N.A.M. and Chamber of Commerce
V;

figure of $411 to $414
billion is probable for.fourth quar¬
ter 1956, with
inventory accumu¬

.enumerate
for

$407

sumption,

many
done to

substantiation of

;tax

need

are

economic system. One of them
and it is an item of fundamental

Editor, Commercial and Financial
.

men¬

ury;

expanding

that

.''There
much

$57,576,000,000, the
Money index of prices was 79. Therefore
Third quarter 1956 might be down and
Stable Price Index" by Dr. if there is a close relationship hea
cut in personal income tax of or
up a bit, governed .by what
Walter E. Spahr is excellent, as a tween the supply of money and
around
$2 billion, effective
in happened here.
A tax cut of $3
primer for beginners- in the realm deposits and prices at a particular
July—(and perhaps, although less billion, on the other
hand,, should
of' monetary time, the correct generalization in
probably, if we don't obtain any push third quarter GNP to $405
Hill!* policy, but this case would be, that to reduce
gives promise of being at least as
good as I assumed—if we obtain

supply
prices. Dr. Spahr
he
is
overlooking

article Dr. Spahr states:

automakers' abil¬

not to associ¬

money

(2) In the final paragraph of his
:

and cites: .1;.;,

reserves,

over-all

the pertinent considerations
tioned above.

ability

the

with the level of

close connection between all money and credit at a
par«r
ticiilar time and prices at that time, Opposes
gold redeem-

the outcome in that quarter would

see now

improper and futile

altogether improper and
'futile not to associate the over-all
mpney supply with the level
of prices" in rebutting Dr. Walter E, Spahr's contention there

rate of

;X'-', \

Monetary proc¬
relentlessly logical.
*
that it is altogether

are

Dr. Ernest R. Gutmann maintains "it is

tax rates, , would; be just about
enough to offset the further fall of
perhaps $1.5 billion in the annual

better than assumed,
leading to a
better credit picture—which it¬
self would tend to reinforce de¬

higher prices.

ate

the

Reader Takes Issue With

then

are

satisfactory relation

to sales, accumulation would come
almost to a halt unless sales rose

its level in fourth quarter 1955. Do
face such a sliaeoff as has
just
been described? Or will the
year

TO THE EDITOR:

esses

•'

close to

LETTER

consumer

If, in fact, inventories

goods greater than is reflected in
that

;

deflationary

rundff fn

some

.credit.

the

and

THOMAS &. COMPANY

MACKALL &.

COE

Alter All, Why Export
And Extend Foreign

end of the war, the imports substantially.-:
"
public has underwritten
*vftMs
pharitv
*
an
export surplus of goods and,
•
y
services, including military aid
Charity, if perpetuated,

Aid?"

Not

blindly outbidding Communists for favor,.but realistic,
economic-and technical assistance program is
unavoidable to prevent Russian break-through, according to '
(J. S. Steel Export President in requesting foreign policy reevaluation to fit our military and security needs.' Mr. Wolf
believes the Russian challenge can best be met in the market
places of the world in calling attention to required $4 billion •
in U. S. aid to maintain "integrated viability" despite over-all r
world's prosperity. Outlines reciprocal advantages and impact /
of foreign trade in terms of our living standards and growth, «•
source of raw material
payment, avoidance of charity, demon¬
stration of our economic system, and claims "our very civil¬

Nevertheless

who

there

b«ng

are

question the

usefulness of continued

tinuing
"wealth

net

those

are

and

con-

outpourings

They say
All, Why Export," inasforeign trade' is- not 'of

much

great

importance

to
r

United

the

toin

and,
Aids

National

Growth

tacle

switch

the

ago,

world

come free. ^Strength is the only
commodity the Soviets recognize,
and strength is the only commodity they respect.

the ever-baffling specanother fundamental

the

Communist

Fortunately, the Free World is

line.

party

better

From Moscow

than

the pro¬
nouncement

During

came

that

Iron

of atomic
standoff, war
no longer is
and

West

can

live

side

in harmonious
George

told

were

industrial

Wolf

strength

that the Krem- ;
;
v
;
lin desires only to live peaceably,

less

those

their

velop

de¬

economies

Let

not

Hon

give assistance because of
brotherly love, but for cynical

and

ends

aim

Let there be

lnation

uneven,

dollar

aid

was

face

indefinite

compared with
the

United

the

The

income, they contribute
as

the

entire

president's

much

textile

above their direct effect

levels,

and

conclude

export re-spend additional income

is foolhardy

all trade, have

close at hand'

rAT,

We have

Atrlihiaa

non-Communist pro j-

The trading partners are not

ect.

deed

War

its

oailier

all

clavLlmuE

tSiln
r^pvi^nifp
re-evaluate

mandT fhnt

nnr

our

Battle

World

>
.

Market

Places

Vc'"-'-

But what, you may ask, has this
to do with exoort trade. The answer
new

is everything. Because in the
death struggle that is shap-

ing up, it is not on the battlefields, not at the conference table,
not in the debating halls of the
United Nations, but in the market

places of the world that the battle
will be adjoined.
Our

never-relaxing

aim

must

trick

thdr

for

Both

econo° ic

America

and

broke

go
any

our

all,

the

dare not

West—nor

have

great allies go broke.

Foreign
„

prosperous

Above

process/

Trade

In the light of these world

con-

'.ditions, let us
the

mow contemplate
impact of the evolving Cold

War

patterns

foreign

our

loreign

trade.
Fnrpi^n tvadA-fKnfic
nf

tweea

trnnHc

nations

well

know

Pies

rolhe

Qrfi «fl
as

intervou* Exrfortpr"
i

contrihntS^
wXre of tte

haV

gen/al
the

earth

and

ha_

oeo

E;°~

powerful flSor^or "i^ernational

the

only

West

long

wiU
as

maintained

the West exercises

constructive

leadership over the
peoples of the world who remain
free or those captive nations of

know-how/and the skills that are
-the key todhe better, more abundant

life to-which

they fervent-

ly aspire.

Miralia

J?£d
If?

vised by

man<

have

misunder¬

any

to what in reality are
fundamental concepts of our
as

American

Individual

David

quantities

Miralia

York Stock Exchange, where he
will be in charge of municipals

Enterprise

attempt to define

Mr. Miralia is

The
^

essence,

Vice-President of

years.

*«-

for many

has been associated

the American In-

•,

dividuai Enterprise System is the
rjght of the citizen, as an individual» or jointly with others, to set
Up in business for himself — to

William Witter Heads

me^anical means of production

required

v^pphsniral

Chicago "Street Club"

nrndurtinn

The reward of success

CHICAGO, 111.—At the recently
Annual Dinner Meeting of

held

profit,

The

rand .-the penalty of failure 1$ .the
;{9S®
wlJat-has heen ventured. <N°thinS ^lse than this can Pjo,y.lde
mcentive to that .initia- .

Street

the

Club,

following

contributing
mightily
to ^lve and efficiency upon which make our American standard of economic progress is built. The
living the highest in the world.
-processes of exploration, research, .
•
*
I. ,
invention and experiment are all
Considering only those vital im- characteristic of Free Private En-

effort

necessary

a/£Cent Study
ft.

^ f ^

our

economy,

terprise.

the Department.

And'. without,

such.

economic

freedom, without substantial free.

th^ supply of

whlch United States dependence
Qn importg rangeg aU,^e way

from 80 to 100%: Included.among
these are such vital materials as
Tin' Nickel» Manganese, Industrial
Diamond?i Newsprint and Natural
Rubber' • For an additional 19
commodities, including a number

of the individual to seek his

dom

living where he

find it, and

can

•,

-/•

to venture his means where
seems

profit • >
likely, and to be obliged to.r •

man

for this—without these it

pure

delusion to imagine that

political freedom, even if it exists, can long endure. As Benjamin Franklin said, as long ago as

</v

William M. Witter
•

;

officers
57
,

and value to that ot the;flood of

exports we are sending out to the
world. To the extent that our ex-

elected for the 1956*?'
•

were

year:

President-William

Dean

« ™9*&S uT^ J

;
port surplus is compensated by inBut, to make a lasting contribur tangible, though equally important
Moscow who yearn to again be- 'tion to
human
welfare, foreign returns in national security we
trade in its broadest sense,
must, get "value received" for our ex*An address by Mr. 'Wolf at the
E/iport
Managers Club of New York, Inc., New over the years, bring reciprocal
penditure of materials and labor
York City, March 27, 1956.
advantages. It brings no satisfac- on such exports. Nevertheless we
^

Halsey, Stuart & Co. with which

David

essential

ever-increasing

14,

needful he-

are

ventUre his personal efforts and
capital; to own, use and risk the

May

our

Free Enterprise

through prosperity. Clirir.i:^e
s
be to maintain the
heritage and It-'ia.the>means by which- the^uir-—
?p
"
1
-•
}.
hegemony oc me West; for certain derdeveleped countries can acOur total imports of goods and
it is that the.heritage of freedom
-quirev"-the •* toolsv*- the technical serviees faif1'faT short iin volume
peace

Ktihn, Loeb & Co.
On

it for you.

MatpriaU

materials

y-:y v.''::e. y;.-; y ■

In the second place, ^exports are
usefulmeans for they payment the
because
furnish
only
the
of
raw

dis-

Miralia Will Join

ports

Impact

"deserves

■'

—

System, let

keep our economy sufficiently feed and operate our production
strong as to enable us to continue lines,-as well as for imnorts of
to imProve living standards in non-essential goods—the dividends
friendly foreign lands and remain —so to speak—of our productive

The

soivenb

foreign policy, that we shape our
policies to fit our military and
security needs and, above all, that
we practice the
policy we finally
adopt.

cag't

sides mugt

manifestations.

1 a°w tf a2rS!f
^fnr fhP nr-ipp nf

War, 1956 model.

insidious than the Cold

the threat of the loss of that free¬
dom.

asked

the

in turn. It has been estimated that

>
«.«

program

exnorts

standing

the end of what used to be and so d0 workers and employees
considered "extraordinary" aid is whose own incomes are increased

has

+hy' ropn..„onf
Tha
Pnni

Lest

Man-

ports, the total national expenditure^on^goods and services may be
raised between $2 .and,$3 billion.

some

rine

nor

Program

and

employment

built-in multiplier effect.

\;~j'

—

pro-53Sljf"

ufacturers or farmers who sell in

income, exports,

fear not

mayed-^for we Americans know
the power of free men aroused by

mili¬
and technical as¬

industry,

And this is not all, for over

duction

industry;-3Vz times
the

blusters.

and
us

foreign

for

full support

wLps that

Let

for
development
projects and programs which re- * -v.
quire several years to plan and to *1'.
complete.. In the light of the in¬
ternational political situation, the
y

construction

than twice

chemical

commitments

much'as the entire farm producthe

the

will become associated with Kuhn,
bility
and
to
provide
limited Loeb & Co., 30 Wall Street, New
authority to make longer term York City, members of the New

industry; as much as the entire
transportation industry; nearly as
tion;

since ./

eradication

began—the

boasts

including changes in the
program to permit greater flexi-

In 1954, they gave rise to
nearly 9% of our total production
of movable goods. In terms of na.-

much

envisioned

undeserved poverty and want.. Let
us do it then while
the Kremlin

year,

tional

mate-

manage-

insure the Utopia that

can

has

tary, economic
sistance during the coming fiscal

place, exports are
useful because they are an im¬
portant source of employment and

raw

world

of out-

$4.9 billion in

some

man

economic .-"and

Administration

authority

new

economic

Western orbit*

time

the

race

President's

Congress for

ficult choice. Either the Western
World "Americanizes" the Jands
partners at all; they are mere where the people still have some
pawns in the game of power poli- i^eed0IJ? °f choice, or Russia will
tics masterminded in the Kremlin.. ^ovief1Je. vfhem and forever deny
Bv its verv nature
this new
t61?1
veshge of any
nussian econjmic cnaiienge is in
Russian economic challenge is in-*?fu?^
ls Jhe significance of
the Cold
scuttle

when

blind

program

every $1 billion worth of ex-

ebbs

friends

crossing over the/bridge.
would, of course, be sheer folly

Supports

an easy and yet a dlf-

Neutralist

technicalassistance seems un" avoidable if we are to prevent a
Russian break-through.

?XP?rtS, 80 useful?;'
first

who know horw

Only an ever and ever increas¬
ing flow of goods and services be¬
tween ourselves and" our foreign

ratio of 20% for.-'

Kingdom, 21%
for
Canada and 22% for Western Ger,

^orld and RUssja in

^stake,

v '-l

stop, look and listen

t*ve

Gross National Product

Waot

5% of

our

effectively

-ment, and to widely distribute to
,all the people the astounding flow
r<jf goods and services that pour
forth from - theCornucopia of
plenty thus built, v.

matching Communist bidSj for
fav01% but continuation of a wellconsidered, realistic and construc-

national production

our

and trade.

period of intense and intensifying
struggie
between
the / Western

dom-

flqq^s^whe it becomes

.tii6 markets in tiie

are

than $4 bil-

we now

field>
warfare. It

that

progress * was

additional

Since

advance

worn

tKa

so-called

to enter into

and

the Americans,

Century A. D., not the
It is

to combine

before
It

income.

again necessary to maintain the
integrated viability of the West
despite over-all world prosperity,

and

their relentless

Need

nations

The injection of

beguiled

these protestations. For the masters of the Kremlin do not trade

political

of Western Europe.

trialized,

rhallpn^

Rnccian

economic

primary producing
not yet adequately indus-

areas,

Russian Challenge
us

and

essentially

living, outrun their limited means,
'

vigor

weakness of the

standards

Knrfom/vmr

In recent years, they
have averaged no more than 4 to

volume of

regained

However, due to general weak¬
ness in world markets for agricul¬
tural
products and the general

countries

ambitions

backward

their low

raise

and

fortunate

natural

whose

valub

It is we,

the revolutionists of this

are

Russians.

greatest

Foreign Aid

expand trade and give assistance
to

the

Curtains expe¬

Bamboo
the

side

trade emanated from .he

co-existence.
We

this

nations

and

today

total

who

Twentieth

hegemony of the West
calculated risk,"they may

the

cause

peacetime many.
■■■
/
'*
boom in all history.
As a natural
This, however, is a gross and
by-product,
world
trade
pros¬
indeed an over-simplification. The
pered, expanding to three times
truth is that export trade is of far
the prewar level in terms of cur¬
more than just marginal import¬
rent
dollars.
| Fortunately
too,
ance to
the United States.
Why,
much of this expansion in world

inevitable and
East

this

rienced

health

time since the war.
past year, most in-

any

dustrial

this

age

that

economic

the

as a

countries

figures would, indeed, in¬
dicate that American exports "of
goods and services are small in
relation

tho

tain

States economy.
.

vietize it

economic considerations, exports,
even if,in exc?*s of imports, are
useful
Political and strategic
reasons in- the face of the;-, rising
;S0yiet challenge. They help mmn-

our

and production.

—"After

However, beyond these purely rials, manpower, tools and

Cold

few .weeks

extending long-term loans on
easy, non-commercial terms and
b/ accepting payment in kind, as
for ,nst?nce nce £rom Burma and
cotton from Egypt. .
•

keeping two-thirds
of the human race from falling
into Communist bondage.
"

ization is at stake."
A

"Wisdom

begets
j maintain it is Wisdom for us
of some $60 billion—a staggering resentment,
not gratitude. This to use the great talent and in_
sum
of nearly $1,000 for every fac j0*
®fems better under- genuity of Americans to Amerijobholder in the United States, ^ood by the Communists who are canize the world, from an economic
These, sacrifices
we
have : con- S-5!?iing^
ie
1?
•]?
re standpoint, as an offset to the
sciously made, and have been in- Middle East not by gifts, but by, ,ciear intent of the Kremlin to Sostrumental

(Chapter 9 — Verse*
is - Better than
Weapons of War."
'

-18)»

•

♦

constructive

witnessed

Ecclesiastes

the

Since

American

By GEORGE W. WOLF*

must bestir ourselves^ and: take votion, but above all with wisdom,
long needed action to increase our ,The .Bible Says in-the Book of

continuing one-way

street.

President, United States Steel Export Company

•

tion if it is

The Commercial and Financial Chronicle... Thursday, April 26, 1956

Witter
.

Witter,

Co.

sential libertv to obtain a little .* Secretary — James E. Snyder,
temporary safety deserve neither. A. C. Allyn &-Conine.
'
*:>.
liberty
-

noi*

-L /:

safety."
v--

Treasurer—John

Let

-sincerity,

with all solemnity and
say

what

know

you

have heard hundreds of times. Our
American Heritage of Freedom—
our

very

civilization is

We must not let

them

at
go

Deanr III.,

Civilization at Stake,

stake.
by de-

Continental Illinois. Natl. Bank.
"

The Street Club is

tion

representing the younger ex^
in
Chicago's
financial
district.
It was organized right

ecutives

after

the

War

1946

and

with

courage,

with

de-

pres-

ently consists of over 150 mem-

fault—we must defend them with .bers from Chicago banks

tenacity,

associa¬

nancial houses.

and fi-

Number 5528,.. The Commercial and Financial Chronicle

Volume 183

THE MARKET

By WALLACE

dustries, outranked only by
National, has been growing
steadily ever since a momen¬
tary downturn in 1953 and
last year posted a net income

AND YOU

STREETE

today would be 3,990 shares
irregular rut this week, of nearly $2,000,000 in mar¬
hobbled by occasional selling ket
value, in; addition to
that, however, failed to gen¬ $209,000 in cash dividends
erate

flood of offerings. paid over that period. Even a
From a technical standpoint purchase of 100 shares as re¬
the
industrial average
was cently as the first day of 1951
still lolling within prescribed at a cost of $21,000 would
limits
without
breaking now come to 151 shares with
through any important levels a market price of $74,000 plus
that would change the basic $3,000 paid in dividends.
picture. Rails were given to
For an issue that is not
superior action, including an¬ selling at such historically
other new high posting for
high levels, Pullman stands
their average to make it the out
chiefly because last year's
best
reading since, late in profits were off a bit mark¬
any

•

1929.
The annual

meeting season
was in full cry but illustrated
mostly that where there was
good news, a good portion of
it
had
already been dis¬
counted. The individual issues

that

been

have

having their
own
private bear market con¬
tinued in their way but with¬
out excessive chagrin. Of
these latter, American Vis¬
cose
was
perhaps the most
regular member of the new
lows lists, although Chrysler
was also on the roster again
this week. Some of the farm

equipment shares were

also

repeaters.

Continuing Selectivity
"The

fairly

tween

lows

new

was

tration

balance be¬
highs and new

even

concrete illus¬

one

of how

selective

market has been for

the

couple

in each

category were virtu¬

ally identical.

of its

revolutionary Russian-made
drilling system to the domes¬
tic industry.
- V;:.

National

til, its

Supplyj itself,

recent

mild

show

for

last

one,

was

able

share earned last year is be¬
ing carried to as high as $17
for 1956 by some of the fi¬

of shares

certain

forge ahead to new
in uncertain markets
and stand its ground well in
definitely easy ones. Under a
revitalized management the
company has
been able to
show some good operations
figures. Last year it boosted

for¬

Kloeckner-Werke.

Mannesmann A.G.

Rheinische Stahlwerke.
Siemens & Halske
Aktiengesell-

was

announced

April

Helm,

schaft.

by
H.

South African

Chair¬

man.

ceipts

are

livery and are
designed to
make easier, quicker and cheaper
the ownership and transfer of for¬
eign shares. Once backed by the
of original

certifi¬

positary banks, are borne by the
receipt holder at the time of pur¬

chase, with
to

charged

other reason, it should be advan¬

the

underlying
primary market,

charges

dis¬

one

cent per ADR

depositary receipts

curities

sion,

and

Exchange 'Commis¬

the ADR's

and

Chemical

Gesellschaft.

Corn

have been

Allgemeine Elektricitaets-

issuable

Exchange

A.G.

registered.

depositary receipts has been

can

Erdoel-Aktiengesell-

evidenced by the investment fra¬

schaft.

ternity, especially in view of the

Dortmund-Hoerder Huetten-

economic progress evident in many

union A.G.

Farbenfabriken

parts of the free world.

Bayer A.G.

IDENTIFYING STATEMENT

NEW ISSUE

cold water

the idea at the

that

ments

rate

about

$23

commitment to

$6,000.,

ward

interest¬ $68,000,000

curve

above the book
field,
value, adding another $6 per

through equipment
boosted the been

companies

subject

are

Federal
the

Securities

circumstances

which must be given

the

the
Act.

the-

buyer.

Corporation

(Far Value $1.00 Per Share)

PRICE: $6.00 Per Share

Helio

in the construction

craft

starting

perk

up,

T*his bundle giant of them all. Dresser In¬

views

\The
article

do not

expressed

at any

time

coincide

those

with

those

the

presented
of the author only.]
They

are

behalf of Helio Air¬

of Common Slack (Par Value $1.00 Per Share), $8,000 face
of Convertible Notes, a $20,000 Promissory Note, due April
Administration Note due Febru¬

amount

1, 1958 and $20,000 Small Business

10, 1961.

ary

Copies of the prospectus may be obtained from:

VICKERS BROTHERS
Investment Securities

52 Wall

Street, New York 5, N. Y.

Please

send

Corporation Stock

Address

Telephone..

the

prospectus

relating

Helio

Aircraft

(Par Value $1.00 Per Shane).

y,t
....

copy

DIgby 4-8040

Baltimore: 512 Keyser Building

Boston: 80 Federal Street

•

"Chronicle"

financing

Corporation.
Corporation had outstanding on February 25, 1956, 204,824

The

in this

necessarily

engaged in the design, develop¬

aircraft.

This offering represents new

to be completely

seems

Aircraft Corporation is

and sale of light

ment

Name

have

1§3 shares for notably National Supply, the

prospectus

They

the
and

150,000 Shares of Common Stock

1925 would have

the

securities,

the

per

ing of the arithmetical efforts
immune from the passenger
that emerged from the annual share to the value behind the
car doldrums.
meetings was the figure work stock. More important, how¬
National Biscuit is also a
of International Business Ma¬ ever,
is that these invest¬
chines executives who pointed ments
have
been lessening company emerging from some
out that more than 96%, or Kennecott's
dependence on problems. Last year the com¬
4,040,161 of the 4,200,895, copper alone and give it an pany introduced the largest
shares outstanding had been
important interest in such group of new products ever
given to stockholders as stock new fields as titanium, alu¬ introduced in such a period
dividends
and
stock splits. minum, molybdenum, urani¬ and expenses of launching
This donation, at the market um and other of the newer them kept profits restrained.
But the first quarter report
price, figured out to around metals.
showed an upturn as the new
$2 billion..
The Stirring Oil Equipments
items started to show their
Purchase of 100 shares in
After a long stalemate, oil effect on
earnings.
1914 at around $3,000, plus
exercising rights

contained

securities.

requirements

issuer,

Helio Aircraft

—

of the more

the

these

sell

prospectus

and

Information

offer

another

apparatus that it has de¬
share. But in the case
annual
meeting two weeks
veloped which, apparently, is
of its investments, the market
working out well. The heavy
ago.
value of only one— Kaiser
The IBM Bonanza
apparatus, following the up¬
Aluminum
was more than
on

not

registration
offering

Bank

Considerable interest in Ameri¬

Badische Anilin-& Soda-Fabrik

This

are

recently promulgated by the Se¬

German Companies

Deutsche

ADR

Securities Act of 1933, on a form

companies,

,* r :

follows:

fee of

American

Exchange Bank
is issuing American depositary re¬
ceipts against shares of 11 German
African

when

subject to registration, under the

Chemical Corn

South

seller

transferred.

share.

shares and dispose of them abroad.

the
are

bursement of dividends, the bank

the American receipt holder may
at any time claim the deposited

and

fee ranging from $3

per

conversion
into
the
underlying
foreign shares. A transfer fee of
$1.50
per
ADR
certificate^is

disturbing the deposited
foreign share. If, however, because
of a higher price abroad, or any

their

100 ADR shares upon
their issuance and also upon their

without

Such costs, in¬
cluding charges of the foreign de¬

country of origin of the for¬
eign securities, the American re¬
ceipts may be traded indefinitely

none

the ADR expenses.

in the

sell

parties
to any
Chemical Corn

with

Exchange Bank and bear

by Chemical Corn Exchange Bank

not

are

agreement

cates in depositary banks selected

tageous

Corporations issuing the foreign

Harold H. Helm

deposit

Company Limited.

de¬

and

Gold

Estates

Witwatersrand,

v/-

West Rand Consolidated
Mines,
Limited.
,

endorse¬

ment

Union Corporation, Limited.
;
West Driefontein Gold
Mining

transferable

Co.,

Limited..

the

They

Randfontein

Mining

of own¬

names
ers.

The

re¬

are reg¬

istered

Companies

Potgietersrust Platinums, Ltd.

ican

e r

depositary

ly double last year's good re¬
equally comforting. But the vestments now
figures out at
sults. Much of the company's
long-hoped-for split of Beth¬ better than
$10 in addition to
lehem was pretty well dashed
good fortune stems from a
holdings of U. S. Govern¬
when the officials sprinkled
new
engine for heavy duty

around

Aktiengesellschaft.
Ilseder Huette.

corpora¬

tions,

of the

One

selected

eign

Gelsenkirchener Bergwerks-

issuing American depositary re¬
ceipts against the deposit abroad

un¬

its share of the diesel truck
record-breaking profits nancial services.
business to 42% from only a
steel companies were
Kennecott, like some of the
third
of
the
business
the
taken pretty much in stride,
other large corporate entities,
starting with U. S. Steel's is
year before. Production in the
interesting in that
its first
handsome figures a couple of
quarter of this year is
diversification has been large¬
days ago. Bethlehem's results
reportedly double the level of
ly in acquiring holdings in last
will be announced this after¬
year and projections of
other metal fields. The de¬
its 1956 earnings run to near¬
noon and are expected to be
flated book value of its in¬
The

Chemical Corn Exchange Bank
is

Harold

Kennecott, for
able to boost earn¬ highs

year.

Companies

Depositary receipts are transferable by endorsement and
delivery and designed to facilitate ownership and transfer of
foreign shares.

ro¬

plans to introduce

Exchange Bank Issues "ADRs"

For Shares of German, South African

surrounds Dresser be¬

strength was selling around a
5% yield on a present divi¬
dend covered 2 V2 times by
last year's earnings, leaving
room
for largesse if, as ex¬
pected, this year's results con¬
tinue
the
improvement in
profit.
From
an
earnings
standpoint the company was
edly. However, with record largely at a standstill for
earnings being posted for its three years until the
upturn
trailer subsidiary, plus a far
started last year. Part of the
greater backlog of freight car aversion to the oil well
sup¬
orders than a year ago, the
ply firms dates back to the
company is a candidate for a
days prior to World War II
large snap back in earnings when oil company expendi¬
this year. The stock is only
tures were subject to sudden
around
its
1946
peak and declines following discovery
some 30
points under its all- of vast new fields. But such
time high.
large discoveries have been
Coppers haven't been very
getting rare, at least on the
buoyant lately, price heavi¬ domestic scene, and the
high
ness
in the world
markets
level of consumption at pres¬
tending to put a damper on ent also
mitigates against
the domestic corporations.
such cycles again for the well
Nevertheless, the feeling per¬
suppliers.
sists that the average price of
A Revitalized Truck Maker
the red metal this year will
The troubles being faced by
work out above last year's
the auto makers apparently
average and permit the com¬
have skipped 'by the truck
panies to continue to amplify
the excellent results reported makers, Mack Trucks being

ings by 61% last year which
of weeks of relative inaction
is on the high side of the
now. For two successive ses¬
median line. The $11.60 per
sions the numbers and issues

cause

Additional

year.

mance

in its

Chemical Corn

than double that of the

dour

The stock market continued

17"

(2037)

.i,.
]■" '-y :

■

CFC

.18

The Commercial and Financial

(2038)

ChronicleThursday, April 26, 1956

SOUTHERN RAILWAY COM PANY
,

•

V •

•

Sixty-Second Annual Report for the Year Ended December 31,1955
-

March

;

21,

1956.

total

Operating Expenses increased by $4,928,486,- or only
2.80%, as compared with 1954, and as contrasted with

To the Stockholders of

the

$27,833,713, or 11.17%, increase in Operating Rev¬
Maintenance

enues.

SOUTHERN RAILWAY COMPANY:

Way

and

Structures

gratifying to report to you

that

1955

in the history of Southern Railway Company.
receipts, net results, and overall efficiency were
than in any year since the Company was organized

better
in

1894.

;

along
in
<

They

from

came

lines, continued investment by the Company
facilities and equipment, and the introduction of

our

new

modern

techniques in all departments.
the hard work of

from

came
>

accidental.

not

were

Above all, they
aggressive and skillful

contribution

employees is gratefully

our

and thus taxes
equivalent to $15.85

Operating
Expenses,

competition

Rents,

expected

December

May 15, 1956.

Sincerely,
HARRY

Revenues

Traffic

L__^r——

65.37

Tax Accruals (Federal, State,
Local)

$41,168,187

Taxes

Taxes Per Share of Common

13.07

$26,262,681

13.47

8.S5

11.62*

$2.50

Income

Net

Income

Common

viding

Per

Preferred

Dividend

$2.50

$2.50*

Stock

Dividends Per

—__

Share of Pre¬

Stock

Total Dividends

Stock

3,000,000

Dividends Per Share of Com¬
Stock

mon

Total

4.00

Dividends

3.50

;

2.50*

Net

10,385,600

Number

of
of

18,507

18,474

.19,067

Stock

earnings

Outstanding:
Preferred

1,200,000

1,200,000*

2,596,400

2,596,400*

REVIEW

1955

The Year's Statistics

Operating

Revenues

in. 1955

$276,913,414, an
$27,833,713, or 11.17%, over 1954, and ex¬
ceeded the Operating Revenues of 1953, heretofore the
largest in the Company's history, by $1,701,068, or 0.62%.
were

increase of

Passenger

declined

revenue

4.35%,

of passenger

Pullman

saving

trains and the elimination

cars

decline in

reduction of

Rapid

lines, both at a substantial
operating cost, together with the continued
military travel.

cipally

diversion

transportation

and

trains.

the

discontinuance

Revenue

from

$10,359,327, being $1,261,048,

which

latter

year

aided

was

this

retroactive

1954,

increase

The

volume

business handled in
as

1955

compared with 1954,

and

Freight

Ton

moved

(tons)
moved

;

(miles)-

miles

Average

Number

per

ton

mile__
—

passengers—l&lz

Average journey (miles)',.-:
Passsnger
Average'
Total

67.200,420

58,626,459

229.52

miles

revenue

225.22

0.83*
67.73*

13.63*

15.61*

2.27*

1.80*

1.41*

86.13*

84.75*

for

1955,

taxes

and

passenger

1.609*

$241,809,041

$212,394,314

1,953;422
267.97

2,231,324
.

548,433,268
•

passenger mile

revenue

2.831*

$14,820,210

v'/ 245.79
'

2.825*

$15,494,242

front

the

proportion of gross

was-

Net

Income

and

the

compared with 21.09% ,in
average

Preferred

Stock

record has

$18,856,597

33,190,325

37,993,249

1955 of

also increased, being

was

the

from

lower

and

ago,

National

about
*

]

■

for

1955

comparable

shows

ratio of

that for

than

Ex¬

Class

most

few

Transporation Ratio for 1955 decreased to
Cost of

37.000.

Ratio

Operating

Company's

was

investments

chargeable

not

under Interstate
a

reduction

cents

Commerce

such

Com¬

taxes

rable
in

During 1955, dividends of 5%
Preferred

Stock

railroads,

the

and

1955,

$50

par

among

dollar,

other

was

compa¬

gratifying decrease from

70.700
,

The

the

Company is continuing to improve its plant by

expenditure

capital funds

These

facilities.

modern

construction,

$15,000,000
"automatic"

Inman

counting

and

consist,

Yard

The

for
for

under

now

and

new

way,_

ultra¬

example,

the

the
new

Atlanta, Georgia,, and the

numbers of machines used

mechanized

roadway

Company

fully

and

expects

ac¬

equipment

thereby

still futher economies in the cost of operation.

value

per share per quarter.
On the Common
quarterly dividends of 750 per share were paid
in March, June, September and
December, 1955, out of

surplus net earnings of 1954 after providing there¬
There

operating

New Equipment

at the

62V20

Preferred Dividends.

continued

which

Capital Improvements

effect

were

the

1955,

1954.

acquisition of large
in

out

approximately the lowest

65.370,

capital

Defense,

expressed

for

Operating Revenues,

was

maintenance.

was

During
service

Report,

1955,

the

Company

the

new

equipment

consisting

(a)

received

and

referred to

the

1,200—50'6"

put

last

into

year's

50-ton

all-

steel box cars, and (b) the 2 Diesel-electric locomotives.

also

paid

on the Common Sto.ck, on February -15,
1955, an
extra dividend of $1.00 per share out of the same
surplus

net earnings of 1954.

229.5

Operating

compared with 31.910 for 1954 and

The

Dividends

compared with

The average distance each ton

Transportation Ratio for all Class I Railroads in 1955 of

gross revenues amounted

non-cumulative

j...

the Company's freight haulage

Company's wage-ratio

The Cost of

$37,993,249, as stated,
the Company, and

certain

effected

with

compares

principal element in

the

are

decrease

1953.

■

the

the ratio of Operating Expenses to

and

Income

in >1955,

compared with 209.1 miles in 1948.

The

30.260

13.47

for the stock split in June,

26.13%

1954,

ranks

railroad

Railroads.

8.95

Adjusted

the

11.62

26,262,681

;

hauled

was

penses.

years

9.56*

•

greatly improved, producing 52,466 gross ton

freight

Wages

$6.10*

27,834,916

Company

carried through to

freight train hour in 1955

per

•marked

follows:

Net Income
Earnings Per Share of
After Taxes and
Common Stock After
Charges
Preferred Stock Dividends

...

In the past seven years,

equivalent

(after deducting
$3,000,000 a year)

Fixed'charges were covered 3.84 times
compared with 2.95 times in 1954. "
'

for

the

for all Class I Railroads of about 13.44% in

the two years.
,

share of Common Stock
the

the

revenues

miles in 1955

Common Stock.

the

and

operation,

leaders

the Company amounted

29,577 ton miles in 1948.

charges,

the

among

there remained for fixed

after

techniques

Railway Operating Income before Federal

Taxes

$4,570,871, being equivalent to about $1.76 per share of

13,203,652,889

1.568£

The

Net

taxes,

from

523,454,651
per

1945'to

upon

industry.

0.86*
*

regulations, but allowable in computing federal

from

emphasis

show that

and

prior years,

well

1.86*

70.70*

65.37*

Net Income

aid

modern

3.52*'

depreciation

•rate

- 1954

15,423,493,438

revenue

Total freight revenue

re¬

period

4.04*

Stock

1955

Average distance

the

were :

the

with increasing

2.01*

miles

that

ceipts therefrom,

$280,000,000

over

coordinated

economy

Aided by capital improvements

3.51*

in mail pay.

Because of increased expenses, it is likely
application for general increase in mail pay will
be filed during 1956.
-

costing

1955.

recognized indices of performance showed improvement

amounted1

10.85%, under

Operations were conducted with increasing
and efficiency in

17.83*

income

unprofitable

source

Operations
*

13.04*

mission

passenger

Company two and one-half shares

regular annual meeting in May, 1956, and to the

1955,

regular

declining trend, due prin¬
mail
to
competing forms of

the

approval of the Interstate Commerce Commission.

in 1953.

amortization

made

Mail Revenue continued its

Directors, at its meeting in January,

subject to the approval of the stockholders at

one,

their

Stocks

mon

for

$276,913,414, while the Net Income of 1953, amount¬
ing to $33,190,325, for comparison, was realized from
gross in that year of $275,212,346.

several

$48,430,035,
increase

Eoard

The

17.68*

Rents

highest in the history of
produced when the Company's

number

1956, approved the splitting of the Preferred and Com¬

Operating
Facility

82.51*

Joint Facility

The Net Income
the

$674,032,

compared with 1954, due to discontinuance of

paid in the pre¬

March 15, 1955.

Stock Split

Joint

0.72*

I''

Freight Revenue amounted to $241,809,041, the highest
on record, being an increase of
$29,414,727, or 13.85%,
over 1954, and an increase of
$5,251,775, or 2.22%, over
the previous record Freight Revenues of 1953.

year,

was

14.20*

;

for each of the.past five years,

♦Adjusted to give effect to 2 for 1 stock split in June, 1953.
A

vious

dividend of 750 per

16.58*

Totals

per

dividends

1,200,000

2,596,400

Common

tabulation

with

compares

$37,993,249.

6,491,000

Stockholders

Number

9,087,400

Stock

14.87*

Income

Common

Stock

development

1954 and 15.250

Preferred

per

March 15, 1956." This latter dividend

the Common Stock which

charges, for maturities of debt, for capital and corporate
and for the owners, 17.490 out of each dollar of
1955 Operating Revenues, as compared with
13.870 in

needs

$2.00

12.57*

After the above deductions,

Stock—after Pro¬
for

ferred

$33,190,325

paid

was

of $1.00 per

over

and

Grand

16.54*

15.85

$37,993,249

Stock

Net

paid February 15, 1956,

was

30.65*

^—:

$42,952,412

pro¬

31.91*

Expense

Equijftnent

$33,937,887

after

the Preferred Stock, there

dividend

Stock, which

1955,

amount

all

extra

1953

Equipment

Totals

67.73
30.65

70.70
3l'.91

[

30.26 ' *■■ '

earnings

1954

Way—

Expense

Incidental

Operating Ratio

1954,

Expense

1953

$276,913,414 $249,079,701 $275,212,346
181,029,631
176,101,146
186,399,731

Transportation Ratio

for

net

1.73*

General

Operating Expenses

Company's

30.26*

Maintenance

HIGHLIGHTS OF THE YEAR

Operating Revenues

deduction

the

1955

Maintenance

1954

after

and Equipment and
for the year 1955 to

the largest disburse¬

since

dividend of $1.00 per share on the Common Stock,*

which

Operating Income, being what is left of

Taxes,

surplus

Common

and

thereon, after charges and

Transportation

DEBUTTS,
President.

1955

the

preceding years of the several subdivisions of Oper¬
ating Expenses, Taxes, and Equipment and Joint Facility
Rents, expressed in the number of cents out of each
dollar of revenue, is as follows:

for

meeting in Richmond, Virginia,

year

Common

the

comparison of the ratios for 1955 with those of the

two

31, 1955, has been approved by our Board of
presentation to our stockholders at the

Directors
annual

ended

year

the

year

declared

was

amounted
with $34,557,054

compared
40.15%.
A

following pages, for the

for

per

net earning

Net Railway

factors will continue to produce

The report on the

exacted

any

viding for dividends of 5%

taxes, of $13.47.

that in 1956 these vital
satisfactory results and
thus further enhance the well-being of your Company.
confidently

195324

compared with

ac¬

knowledged, and it increasingly reflects their pride in
being associated with a Company that is endeavoring
always to conduct its affairs in the most modern and
efficient way possible in this era of intense
for the nation's transportation business.

Out

enue;

staff.
The

equal

was

organization.

has been shown, the increase in Operating
Expenses in 1955 absorbed only $4,928,486 of the year's
$27,833,713 increase in Operating Revenues,;-Railway
Tax Accruals amounted to $41,168,187, the increase of
$7,230,300 absorbing nearly one and one-half times as
much of the year's increase in gross as the entire in¬
crease in
Operating Expenses. These tax accruals were
equivalent to over 140 out of each dollar of gross rev¬

results

These

While,

combination of good and expanding industrial growth

•'

Expenses by $4,310,777.

best year
Gross
'

1854,

dividends

decreased

$540,747, as compared with 1954.
Maintenance of
Equipment increased by $1,870,905 and Transportation-

was

than

ment

It is

"pay-out" of $13,385,600 in 1955, being $1,298,200

Total disbursements for dividends, out of 1954 earn¬
ings, aggregated $2.50 per share, or $3,000,000 on the
Preferred Stock, and $4.00 (including the. extra of $1.00
per share), or $10,385,600, on the Common Stock.
The

.There

were

also received and put into service,

Air-slide 70-ton covered

of which,

(d)

885

bottom

mately

hopper

cars,

the aggregate cost

approximately $325,000, was paid in cash, and
(out

coal cars, -the

$10,500,000,

order

for

1,500)

70-ton

hopper-

aggregate cost of which, approxi^

being- financed

means

Volume 183

Number 5528

...

The Commercial and Financial Chronicle

(2039)
ADVERTISEMENT

SOUTHERN RAILWAY (Continued)
Conditional

Sale

Agreements, payable in twenty equal
no down
payment, at an

NET FUNDED DEBT AND FIXED CHARGES

semi-annual installments with
interest cost of 3%

There

early

also

1957,

Dec. 31,1955

Funded

order, for delivery late in 1956 or
equipment estimated to cost approxi¬

(1)

1,153—50'6" 50-ton
thereof

all-steel

equipped

box

for

(4)

60—53'6"

70-ton flat cars; and

(5)':

20—65'6"

70-ton gondola

vision

•

owned

$140,000,000, these

freight

new

The

Company's affiliates have

to certain

freight cars,
for 1956-57 delivery.

the

inclusion

Agreements referred to

the

550,605

Company's

due

the

East

both

Louis

held

Tennessee

Leasehold

Di¬

Metals

December

referred

31,

Defense

1955.

footnote

additional
the

believed

that

substantially
against such

the

created

can

depreciation

include $18,516,900

Company

Securities

its subsidiaries

Leasehold

December

Estates

The

application

for

of New

the

Cement—Concrete

With

the

Petroleum

153

181

Ceramics

975,000

103,00«.

830,000

300,000

138

650,000

195,000

480,000

144,000

$457,512,000

399

$22,754,000

the

Flour

beginning of the depression 1930's, the Com¬
amounted

approximately

a year,

Rubber

approximately one-third since that time.

Debt

charges

^Estimated

and

the

(exclusive

Leasehold

.on

Included

this

1956

equipment

Estates

the

tion

amount

debt)

and

the

was

acquisition

additions
an

General

Bonds

Mortgage

Bonds,

maturing

Offer, effective between July

basis

the

$32,803,000

with $111,333,000

any or

well

the

December

outstanding

31,

1955,

V' jv-';

Georgia

maturing

Bonds

The

principal

aggregate

1956

thus

were

November

now

United

States

held

the

Such

maturing,

treasury to

payment will effect
fixed

(3)

For

Federal

Income

Taxes

Gratifying gains

(4)

subsidiary

construction of

'come
\

to the

(5)

new

for,

moneys

of about

Acquisition of Industrial Real Estate

this aggregate

pay

further reduction in the

charges

amount

the

attributable

made in industrializing the area

were

There

the

facilities

acquisition and
to produce inat

were

General

Mortgage Bonds, maturing in 1956, and the
by a wholly-owned subsidiary of $788,000
principal amount of the Company's East Tennessee,
'Virginia and Georgia Bonds, also maturing in 1956, at

thfe

amount

United

States

$79,268,000,

December 31, 1955, (a) inGovernment

held

rapidly

expanding

are

being sold,

are

available for

Through this activity, the Company is keeping in step
with, and doing all it can to foster and promote, the
dynamic economy of the South.
Rates and Fares
In last year's

of existing industries

was

twice the

amount

securities

expended in the previous

Report reference

was

made to

the

fact

that

the last general increase of 15% in freight rates
authorized by the Interstate Commerce Commission in
Ex Parte 175 would expire with December
31, 1955.

The

total

number of projects in

1955

was

since the two immediate postwar years of

encouraging

situation

robust growth of

tion

along-the
broken

tabulation to illustrate the

the

System's

down

investment, estimated

Effort
side.

all

rail

made

Some

employment

lines.

This

the following

variety of products now being

territory and to show the relative impor¬

tance of the several industrial groups

accrue

gross

carriers,
keep

and

estimates

actually

because

improved operating methods.

revenue

number of

expansions
of

from the standpoint

rail freight

the

result

employees.

conservative
in

the

have noted the growing diversifica¬

manufacturing

This

existing industries.

"year's Report has been

made

the largest

1946-47.

attributable

mainly

By
subsequent order the Commission has peprmitted that
subsequent order the Commission has permitted that
increase to become a part of the
permanent rate structure
of the country.
a

$16,689,771.

in reserve for the
acquisition of debt or reduction of maturing obligations,
'subject to further order of the Board of Directors, and
(b) cash of $29,345,110, as shown in the balance sheet.
,

projects

and nearly four times that spent in 1953.

-acquisition

*vestments

new

created.

outlay for expansion

Previous Reports

For the acquisition and cancellation of $15,582,000
; principal amount of the Company's Development and

total of 399

was a

established, costing about half a billion

jobs

than

the

Company, $2,565,685;

Company had left

block

(6)

The

would

new industries, or are being used to construct
thereon facilities for industrial use, which will produce
rental income and additional traffic for the
Company.

$23,000,000, and in connection with which some

new

The

For the purchase of stocks of subsidiaries

total cost of

which

needs.

These properties

Agricultural Development

,aggregate cost of $1,332,615; and

•a

dollars, with estimated annual revenue to all rail carriers

year

industrial

livestock producing area.

Company is actively furthering its program of
acquiring desirable properties for industrial develop¬
ment in and contiguous to the fast-growing towns and
cities in the territory it serves in the South,
thereby
preventing such areas from use for housing or other

23,000

For payment toward, and for advances to its real

Aestate

year.

undertaken

years 1941-1946, $2,466,605;
I

shipped into

were

The

industrial

during the

$9,502,705, and
equipment $2,887,430,

being $1,298,200

developments

and

45,000 lambs

are

Industrial Development

compared with $21,321,996 in 1954;

(2) For dividends, $13,385,600,
than in 1954;

year some

sale, to

aggregate of $22,556,208 capital expenditures

for the year, as

securities, included in the

appropriately

and

Company's

annual

southern farms.

crops on

evincing interest in similar undertakings.

South

off in cash.

Company's

Development

Livestock

Of General Interest to the Stockholders

Government

reserves,

and

study has recently been made of cash farm income
for 1924 versus 1954 (latest year for which figures are
available) in the eight states where the Company has
substantial mileage and this analysis of the farm dollar
pointedly demonstrates the growing importance of the

31, 1955, of $40,266,000.

Company's

chlorine-caustic soda plant.

second

December

$80,000,000, a multiplant for which a

soda

Alabama to be readied for the early spring market. This
marks the first time that such an experiment has been
made in the deep South and other southern states are

reduced

outstanding

amount

During the

the original maturity of $12,770,000.

maturities

principal

■,

the acquisi¬

was

and

conditions throughout the growing reason plus advanced
technical knowledge produced record acre yields of all

January

$75,000,000

chlorine-caustic

Progress continued in farm mechanization and in the
improvemenLpf cultivation methods. Favorable weather

public to $7,463,000 at December 31, 1955, as com¬

pared with

Obligations
to

reason

Agricultural

subsidiary of $788,000 of the East Tennessee,
and

Industrial

betterments

information concerning these

construction during

dollar

all of such

yield

•...'

•

meeting

and

included,

700-acre site has already been acquired, an electronics
plant, and a TV-radio cabinet plant. Many other impor¬
tant projects are under consideration and site studies
are under way for three new pulp
and paper mills, a
synthetic fiber plant, another large aluminum plant as

and

1956, reducing the amount outstanding in the hands of

For capital improvements to Road and Structures,
for Equipment, $12,390,135, consisting of

making

every

between

cost

million

($10,576,000 thereof having been acquired

Company's

Virginia

$10,166,073;
-for

not

restricted.

announced for

reduced

were

Also included in 1955 debt reduction

charges, and will continue to

Equipment

22,915"

for optimism in contemplating
growth in the coming year. Already
1956 are a $5,000,000
vitreous-ware plant, a carpet mill, an aluminum plant

Maturities

$15,582,000 principal amount of the De¬

and

all of its current expenses,
taxes and fixed payments, the Company paid from its
"treasury cash the following conspicuous items:

There is

Use in 1955 of the Company's Financial Resources

installments

Revenue

installations

$2,007,840.

(1)

Products

equivalent to only

are

Reduction

outstanding

lease and operate the line.

Feed_—_

the current figure of $11,810,000 showing

reduction of

and

Fertilizer

$18,-

maturity);' thereby reducing the amount pf this issue

With the acquisition of the stock, at an
aggregate cost of $69,000, the Company has effected a

addition

297

685,000

outstanding

line had been under lease and operated by the Company

410

1,450,000

approximately $11,810,000 at

were

1955, and October 31, 1955, to purchase

for fifty years.

its fixed

1,515,000

1,508,000

velopment

mission, the Company, in December, 1955, acquired the
capital stock of the Transylvania Railroad Company, the
line
of
which
extends
from
Hendersonville, North
Carolina, to Rosman, North Carolina, a distance of
32.12 miles, and on which are located several industries,
including the plant of the Ecusta Paper Company. This

Products

34
25

Miscellaneous

cancellation of

approval of the Interstate Commerce Com¬

net reduction

6,205,000
5,937,000

104

Railway Company, extending
North Carolina, to Morehead City,
North Carolina, with the concomitant operation of the
Marine Corps railroad, serving the Marine Corps Base at
Camp Lejeune, referred to in last year's Report, is pend¬
"

Products—Asphalt—

Food

principal amount of $17,300,400 during 1955.
.

Goldsboro,

ing before the Interstate Commerce Commission.

1,487

Con-

869,000

Long-term debt

rail

and

1942.''•••'•

acquisition

658,000

2,153,000

securities

Lines

proposed

Minerals

Atlantic and East Carolina
from

1,027

6,839,000

Furniture

1954.

31,

160

compared

Acquisition

5,615

3,702,000

further industrial

for the year 1956.
-

604,000

19,000

4.26% of 1955's gross.

charges

new

8,625,000

180
1.500

487,000

under

Company has ordered 44,800 net tons of

The current net fixed

During 1955, there were laid 40,766 net tons, or 175.55
miles, of new rail, as compared with 33,627 net tons, or
146.12 miles, laid in 1954.
The

New Rail

•

1,812,000

25,610,000

2,987,000

30,181,000

Installations

3,265,000

April 1, 1956
-

4,067

53,471,000
42,000,000

4,200,000

000,000

installment payments thereon

"self-liquidated"
new equipment.

Metalworking
Machinery)

Building Materials

pany's fixed charges

1956,

4,381

payable to the public,
December 31, 1955.

Sale

1,655,000

Lumber—Woodworking—

charges

above,

equipment debt should
equipment on order

1,061

Containers

new

1,945

2,329,000

income from securities of its Leasehold Estates owned
by
the Company, or, in other words, its net fixed

equipment debt
now payable in 1956 of
$10,969,205 will be in large part
offset as to its cash effect by depreciation (exclusive of
rapid amortization), chargeable to operating expenses,
jn the amount of $9,671,049.
If

3,240,000

68.905,000

Textiles

It is estimated that the installments of

finance

77,575,000

and

Plants

Estates

Company's fixed charges, on an annual basis, a£
defined by the Interstate Commerce
Commission, less
charges on the Company's bonds held by a subsidiary and

aggregating $10,500,000
in 1955, the Company's outstanding
Equipment Obliga¬
tions at December 31,
1955, amounted to $86,482,460, as;
compared with $75,489,165 at the end of 1954.

and

(including

Louis Division Bonds and

Bonds

Employees

Appliances

i.-'"

■

Revenue

—;____

—

Equipment

Securities

its subsidiaries

St.

Electrical

Power

$18,549,300

by the Company

1956,

;

include

$286,313,970

the Company's East Tennessee,

Bonds

Projects

$118,103,000

Paper and Allied Products—

The

Conditional

new

the

Number

Freight

Investment

crete

Equipment Obligations
Due

•

order, in addition
3 Diesel-electric locomotives,
.V:::'

new

not

owned by the

about

50% of the System's entire ownership of 55,590 units.
>

and $5,307,000

Georgia

§Does not

■

constituting nearly

cars

+Does not include $12,474,000 of the St.

cost

$12,474,000

$4,519,000
■''above.

cars.

War II at

and

tDoes

new freight cars ordered in
Company and its affiliates, there will have
been put into service approximately
26,000 new freight

of World

Include

Bonds

Virginia

receipt of the

end

not

subsidiary.

1955 by the

since the

550,605

Gross Rail

$280,006,865,:

♦Dons

(3)

cars

75,489,165

_____

Totals

automobile-

70—70-ton side door hopper
cars;

the

86,482,460

Estimated
Number

Estimated

Chemicals

103

cars,

parts loading;

With

26,258,700§

Amounts Payable to Affiliated
Companies

200—70-ton hopper-bottom coal
cars;

(2)

$184,015,500t

25,978,300t

Equipment Obligations

mately $17,531,750, consisting of:

Dec. 31, 1954

$166,995,500*

Debt

Leasehold Estates

new

New Industries and Expansions in 1955

per annum.

decreased

moderp machinery and

It was also pointed out that certain of the states in the
South, i.e., Alabama, Kentucky, North Carolina, South
Carolina and Tennessee, did not grant the railroad's peti¬
tions for the same general increase, as to intrastate
traffic,
as granted
by the Interstate Commerce Commission in
Ex

Parte

instituted

175,

and

with

under Section

the

that

proceedings

Interstate

accordingly

Commerce

of the Interstate

were

Commission

Commerce Act

intrastate rates in those states.

The decision of the United States District Court for the
District of North Carolina, referred to in last

Eastern

year's Report, which upheld the order of the Interstate
Commerce Commission requiring removal of the unlaw¬
ful discrimination found to exist
merce

Carolina,

reason

was

against interstate

com¬

of relatively lower rates within North

affirmed by the

Supreme Court of the

The Commercial and Financial Chronicle

(2040)
'

•

States.
revenue

This

involved

case

about

$500,000

modities

$8,480,028

to the Company.

of Alabama, South

the states

and Tennessee.

The orders

are

Carolina,

with

are

excellent

improving

develop the territory and to foster faith in
South, its people and its opportunities;

its

To furnish safe, economical

Financial

Results for the

The Company received from freight, passenger
and
miscellaneous operations a total rev¬
of

enue

———

cost of maintaining
operating the railroad

Leaving

state

July, 1953, report of the Interstate
Examiners recommending dis¬

The

Commission

balance

Company

taxes

To
181,029,631

$95,883,783

required

excess

other

4,483,614

$48,430,035

$39,040,663

6,285,561

companies

whose work

33,937,837

$54,715,536

those sources

briefing and arguing of these cases to the full Com¬

mission, the Commission, on February 5, 1955, handed
down its report fully sustaining the position of the rail¬
roads and dismissing all of the Government's complaints.
The Commission on February 3, 1956, denied the Gov¬

Leaving
Other

income

stocks

derived

and

bonds

from

investments

miscellaneous

and

With

return

the

of the

owners

steadfast faith, and with these principles, the

Southern

confidently approaches the future

years.

5,432,574

$54,770,454

total income of

fair

6,340,419

Making

pay

items

waa

for reconsideration.

women

for

income from railway operations of

and

property.

it from

...

„

men

keeps the railroad going;

$34,557,054

—_

the amount received by

fairly and kindly the

treat

$72,978,555

41,168,187

of—

paid

176,101,146

hire of equipment and use of joint facilities

and adequate rail¬

the territory where the

"Southern Serves the South";

In 1954

property and of

was_____

local

and

road transportation in

In 1955

balance from railroad operations of

Leaving

the

Year

$276,913,414 $249,079,701

The

year's Annual Report to the stockholders,

ernment's petition

these reasons, the Company has confidence in

Federal,

Commerce

They

future.

Reparations

missal of all the Government's reparations cases and

Railway

Southern

the

guide

have been, and are—

the
For

Company.

which referred to the

that

by year; the people who work for it

year

in the South which it Serves.

successfully continued its effort to
increase its average haul on traffic handled, creating
additional
ton
miles, and
to
channel this tonnage
through its improved terminals and into fast freight
trains, providing better service to :ts patrons at lower

last

policies

System, have not varied through the years.

condition; its financial condition

aggressive in its interest; it is fortunate to be located

are

Company

Since

The

Company's plant, roadway, structures and equip¬

ment

increase of 6% subject to certain
maxima, to be effective March 7, 1956.

the

CORPORATE CREED

Looking Ahead
The

Commission granted an

cost to

OUR

Foreman, Dining Car Cooks and Wait¬
ers, and Train Porters.

On December 30, 1955, the railroads, including the
Company, filed with the Interstate Commerce Commis¬
sion new tariffs covering a proposed 7% increase in
freight rates, to be effective February 25, 1956.
The

the

year, still pending were requests
increases for Yardmasters, Dispatchers, Mechan¬

the subject of litigation

by Tennessee.
There is also litigation pending
regard to certain intrastate rates in Kentucky.

The

the

ical Department

Carolina, but have been accepted

in Alabama and South

for the Company.

per annum

the close

for wage

year

within

ments

the Interstate Commerce Commission
entered orders requiring the removal of unlawful dis¬
crimination found to exist in the rates on various com¬

During the

Benefits obtained by the employees under these settle¬
will result in. increased cost of approximately

SOUTHERN RAILWAY (Concluded)
annual

Thursday, April 26, 1956

United

...

$39,989,628

LETTER TO THE EDITOR:

Interest

Bauxite

on
funded debt and equipment, obli¬
gations, rents paid for leased railroads and

Ore

miscellaneous deductions totaled

the

Annual

Reports for

1951, reference
was made to a complaint brought by the United States
against the Company and other railroads assailing the
rates charged
for the transportation of bauxite ore
subsequent to World War II. The amount of asserted
liability was aproximately $728,000. By a decision ren¬
dered

Resulting in

net income of

*to set aside

The Company had

land,

De¬

railroad

other-fixed
Less:

investments in

tracks,

31, 1955

Depreciation,

1951

under the Federal anti-trust laws

notes

brought

and

Seatrain

Lines, Inc., against a number of
railroads, including the Company, pending in the District
Court for the District of New Jersey, following remand
by the United States Court of Appeals for the Third
Circuit.
On November 18, 1955, Seatrain
Lines, Inc.,
dismissed its case without prejudice and without costs

129,900,420

cars

graduated rates of

The

car

scale

Firemen

under

effective

of 210

per

14%0

per

increase

disposed of, through national
Agreement providing for an increase

18,216,778

Non-Operating Employees'
in

requests

wages, and for the Carriers to
cost of the Health and Welfare

for

in¬

the entire
Plan, were disposed of,
through national negotiation, by an Agreement
granting

368,839

and

•

pay

^%0 per hour, effective December 1,
1955, and providing that the Carriers will assum^tTid full"

1956.

2,451,901

resume

that

she

minting of gold
produced

"hasn't

5,212,436

export, gold in arty shape or
small or large pieces, as

represent them

"lifting of export curbs," ac¬

cording to the AP release, "paves the
way for development of a free marfor

4,193,152

1,019,284

totaled $856,148,885 $821,110,024

$35,038,861

other

railroad

interest,
t

companies,

dividends

i>ut

aqcrued

Operating

The

road

$29,607,557

$3,845,131

40,092,566

5,936,911

4,580,172

3,846,058

and

734,114

equip¬

and

After

540,899

Also the article
states; "Mine operators and others have long maintained
that gold is under-priced at the official figure of $35 an

7,707,729

4,892,799

ounce"; that "the United States, main buyer, has rejected

$101,846,589

$85,896,735

$15,949,854

including

others,

but

not

these

demands

liabilities,

reserves

was

capitalization

the

consisted

pany

1955
$19,089,007

fol-

„!

129,820,000

$5,238,705

60,000,000

129,820,000

Making a total capitalization of $461,629,565 $466,868,270
After

deducting
from

mained

net

surplus,
the

were

there

largely

property of

$40

lators.
$5,238,705

case

was

4,500,000

ounces.

the Associated

Press

article,

For sake of

re¬

assume

ounce,

Such

the

in order to appease these Canadian inter¬
Government, gold-producers and

$5-an-ounce

subsidies

in¬

$24,327,712

increase

revenue

Government in 1955.
$292,672,731 $263,345,019

that the United States Govern¬

willing to raise its official price of gold to

$22,500,000 of added
double

capitaliza¬

this
assets

may

According to the article, Canada's

summary

ests—Canadian

vested

that

argument, let

60,000,000

Stock

Common

"speculators

gold in Canada just in

Com¬

the

ment

Stock

but that

let's start at the bottom and work upward:

bonds,
equipment obligations, etc.— $271,809,565 $277,048,270

Preferred

increase";

production of gold

With

including

Debt,

and retain

$754,302,296 $735,213,289

lowing:
Funded

for

want to buy

the price is changed."

the

Company, net assets of—
The

subsidized"; and that in 1955 these "government sub¬

4,642,825

the total assets there remained,
the

"Canada is the world's second

largest gold producer"; and that "The official price of
gold has been fixed at $35 an ounce (United States
funds) for 24 years while production costs have mounted
/. ." It continues: "All but two of the established mines
sidies. amounted to about $11,000,000."

Com¬

deducting these items from

for

gold hoarder's money."

that

states

12,600,528

other

liabilities,
due

article

5,183,724

from

adjusted

credits

46,0^9,477
'

total

are

leased

panies

yet

•

$33,452,688

.due—111

not

reserves

Depreciation
ment

Frederick G. Shull

sels, Tangiers, Hong Kong, Bombay and other places"—
and that now "Canada may be able to compete with
The

•

and
rents

accrue^ but not yet due.

Taxes

and

Canada, similar to
such markets in London, Paris, Brus¬
gold

these markets for the

21,
the

in 1931."

vacated

as they do not
official, coinage."

ket

...

The Company owed for materials,

tion

Plan, effective March 1,

form,

11,288,211

the

—

ing

The

owed
to

.any gold coins for some 40 years."
It goes on to say that "the mines are

*•

-■

unadjusted

items

"to

—

long

?f?cincr^ase

and Welfare

tention

for

yet available

gold

free to produce or sell, tor safekeep- ;
■

hour, effective October 1, 1955.

The above

The

7,317,546

1, 1955.

settlements with train and engine service
employees provide that 40 per hour, or 320 per basic
day, is in lieu of a Medical and Hospital Insurance Plan.
crease

71,859,779

and

The Assets of the Company

items

in rates of pay was
an

79,177,325

fuel,

material

including
not

$494,879

18,585,617

hand

$31,679,261

8,836,310

assets

but

Company

1955.

supplies, wages and balances to

The Conductors' request of
August 15, 1955, for an in¬

negotiation, by

$28,290,214

which she

ard

$32,174,140

Company
on

sell

Also it states that Canada has no in¬

and

.necessary

,supplies

debits,

can

187

keeping road and equipment 'in 1' y
Deferred

now

151,500

good order

hour for Yard

Agreement providing for

the

■>

intends to return to the gold stand¬

Securities—

companies

owed

Deferred

of 7% in rates of
pay, effective October

crease

Government
railroad

other

The Engineers' notice of
February 15, 1955, for an in¬
crease in rates of
pay was disposed of, through national

negotiation, by

to—_

investments

Company had
rails, ties, bridge

five-day work week, which became

December 1,

mines

"Canadian

$712,163,057 $683,872,843

The

increase of 14V80 per hour.

average

that

states

8,330,000

—

deposits amounting

others

acceptance

redemption

151,313

temporary

Other

July 1, 1954, for wage increases
was
disposed of, through national negotiation, .by an
Agreement providing for an increase of 8(5 per hour for
Road Firemen, and
4J/20 per hour for Yard Firemen,
effective October 1, 1955. The
Agreement also provides
increase of

and

for

rate

public for hoarding or exporting without government
restrictiono;" but that "lifting of government controls over
gold exports does not mean Canada

Company had cash and spe-

cial

The Firemen's notice of

5,139,185

Sale

Investments

And

pay

16, 1955, request for an increase
in wages was disposed
of, through national negotiation,
by an Agreement providing for an increase of 1OV20 per
'hour, effective October 1, 1955, and the establishment
of a five-day work week for all
Yardmen, effective
December 1, 1955. Upon conversion to a
five-day woik
week, Yard Foremen received an increase of 16V40 per

for

98,164,233

coins"

The Trainmen's June

fund

raised, Frederick G. Shull declares

An Associated Press release from Ottawa, on March

disbursed

equipment —

Editor, Commercial and Financial Chronicle:

bonds

basis,
1(2) an increase in rates covering passenger service,
,(3) an increase in the .Yard Foremen's .differential, and
(4) an increase for Dining Car Stewards.

hour and Switchmen

in¬

contracted

,be

subsidy paid to Canadian gold
miners would mean devaluing gold \2l/%%) or, penaliz¬
ing Americans "to the extent of $60,000,009,000 in order
to improve Canada's position by a mere $22,500,000!"

carried

Conditional

delivery

upon

Total

handled

balance

under

Sinking

request of October 1, 1953, and the
request of June 7, 1954, were disposed of,
national negotiation, by an Agreement, dated
of

investments

allowing double the

companies
103,353^463

for

Conductors'

number

other

7,322,406

$14,771,216

bonds and

affiliated

••Agreement

Trainmen's

stocks,

122,578,014

Relations

;May 26, 1955, providing for (1)

Unexpended

any! party, thus ending this litigation.

^through

$22,093,622

ac¬

the Company had

vestments in

Reports references have been made

Labor

amortization,
and

Proposal

Referring to the newly opened Canadian free gold market
and the assertion that the American mint gold price
should

$600,328,276 $585,557,060
In addition

to the action

Decrease

property of-—.—- $730,228,696 $708,135,074

Scatrain Litigation
In recent Annual

31, 1954

Increase

terminal

donations and grants,
quisition adjustment

complaint.

based

December

facilities,
shops,
locomotives,
freight and passenger cars and

cember 31, 1955, the Court handed down its decision
-upholding the Commission's order and dismissing the

The

And Devaluation

December

Washington, D.C.,

and annul the Commission's order.

Canadian Free Gold Market
j

in the United States District Court in

13,726,947
$26,262,681

Financial Position at the End of the Year

1952, the Interstate Commerce Commission
sustained the position of the railroads and dismissed the
complaint. Thereafter the Government instituted a suit

16,777,206

'$37,993,249

and

1950

tion by our Canadian

paid

would

specu¬

mean

about

for those interests—or about

producers

But before

the

Canadian

falling for this

sugges¬

neighbors, let's view the suggestion

Number 5528

Volume 133

the

from

standpoint

million

lbo

Our

The Commercial and

...

our

own

upward

own

$500 billion of dollar-assets in the
deposits, government

form of bank

Fund Sales Convention in

York

who will be informed of their

Stock

Cosgrove,
and

one

bonds, and life insurance benefits

successful

already paid for—all recoverable
in definite numbers of dollars, re¬
gardless of the value of the dollar
itself. A $5 increase in the official
price of gold would, automatically,
drop the "value' of the American
dollar from its present l/35th of

fund

ounce

new

low

gold

per

ounce

(2041)

berger Dealer Service; and Louis
Whitehead, partner in the New

people:

citizens

Fincncial Chronicle

Exchange

Miller
of

firm

Sept. 20 to 22, 1956.

retailers

mutual

ceive their awards and read their

midnight

award-winning sales stories to the
assembled delegates.

shares.

The

contest

closes

se¬

lection in advance, will attend the
conventiqn where they will re¬

&
Whitehead
country's most

the

CMrazo,

The winners,

Aug. 10, 1956, and awards will be

Entry forms and full informa¬

made at the Eighth Annual Mutual

tion

about the

contest

be ob¬

can

tained by writing to Milton FoxMartin, Manager of Dealer Rela¬
tions,

Form

Sequoyah Sees.

OKLAHOMA

The

Okla.

CITY,

Wellington Company,
163b Locust Street, Philadelphia 3,

Sequoyah Securities Co. has been

Pa.

formed with offices at 1029 North
Walker

All entries in the Oscar contest

should
ton

sent

Oscar

Eshleman

the

engage

Officers

Fitzgibbon,

Contest, c/o Doremus-

securities

James

Robert

are

President;

John J. Snider,

Street, Philadelphia 3, Pa."

Vice-President.

dollar—or

devaluation of YlV-i% of its pres¬

ent

value; and that would cut into
to the tune of

the people's savings

12V2% of $500 billion, or a loss of
than $60 billion of the real

value
that

of those savings.

nalizing

our

Wouldn't

kettle^-of-fish!

fine

pe¬

people

the

own

of $60,000,000,000

extent

in order
to improve Canada's position by a
522,500,000!

mere

Let's not be silly!

1955

If the United

States and Canada will each firm¬

ly fix the value of its respective

was

dollar at $35 a fine ounce of gold,

[redeemable

on
demand at that
fixed value—in other words, if the
United
both

States

about

higher official-

price for gold will be at
with

ward

reliable

end,

be ?ble to go for¬

commerce

FREDERICK

for

progress

standard of

value, namely, Gold!
2009

year

Gold Standard—all of this

hogwasb
and

will

Canada

and

wisely return to the honesty

of the

G. SHULL

Chapel Street

New ^aven 15, Conn.

April 23, 1958.

Wellington Sponsors
Contest for Most

Interesting Fund Sale

The year

Pa. —The

PHILADELPHIA,

Wellington Company, sponsor and
distributor
of
the
$500 million
Wellington Fund, has launched
contest with
car" and

award of

cash prizes

stories of 500 words

subject

"My

test

less

The

investment

bronze

Second

third

$300

National

Steel

whether

fund

any

not

7,379,685 shares),

mit

cash

All

by $8.03

per

funds,

words

were

stock' 6n
"This

their

have

been

date

made

Jan.

not

were

program

of 1955

was

done in the belief that

reflect

increased

the

FAR-REACHING

tax

bill

with

per

employees

was

$13,700,000

continuing build¬

to reinforce National

surgical

care,

Thus, 1955
And its

compared
number of

average

28,889, compared with 26,486. Almost

was

also paid out for employee benefits-

annuities,

group

insurance, hospitalization,

truly

was

year

progress

for National Steel.

plans for the future assure that National will do its

with America's expanding needs for steel.

maximum

BUILDING

PICTURE

QUICK

1955:

return to the stockholder

investment

capacity of 50,000 tons
20,000

including payrolls for
$164,217,372

social security, taxes.

share to keep pace

of the

,$622,018,919

$484,058,380

48,289,453

Net Sales....

30,334,871

Net

Earnings
Earnings Per Share..

PROGRAM

$67,693,967.^ Typical

month, supplanting

capacity. At Weirton,

one

1954

1955

stockholder

Total Dividends

projects completed in 19£>5:, Great Lakes Steel's, new
No. 1 blast furnace, world's largest, with a rated

naming the mutual fund rec¬
sold); sales presen¬
tation
and sales points that in-1
fluenced the client to invest; and -

$137,294,064 in 1954. The

retirement

paid ($3.25

amounted

construction,

was

increased from the 75 cents

additions, totaled

Property

out

now

scheduled to be

the highest in Corporation

history. Wages and salaries,

Total Labor Cost.>

$75,000,000 is

operations.

our

expenditure for facilities and plants necessary to the

some

program

PAYROLLS SET A RECORD

DIVIDENDS

$23,940,275

too, costing

long-range

Total payrolls in 1955 were

included);
salesman's recommendation (with¬
address

capacity to

previously paid, to $1.00 a share, establishing the
a $4.00 annual basis. To quote the Annual Report:

was

program,

part of

Net

stories in¬
sale (it must

1955); origin of prospect; comiplete description, of client (name
and

per

growth and improvement of the company."

after

($6.54

resulting from the retention of earnings in the business and

The simple contest rules require
the

building

competitive position. Also, the dividend paid

in the fourth quarter

should

her particular problems or

"objectives.

clude

production of existing blast furnaces at considerably lower

compared with

1954

reinvested in the business in

Steel's

only that the story

ing and replacement

contestant need

investment program to satisfy
or

ates

capital investment.

share for taxes to $6.54 per share on earnings.
INCREASE

ore

share). The remainder of the year's net earnings

most

tan
his

(The

far-advanced rated capacity of

completed by mid-1959, which will add 1,000,000 tons of ingot

$48,289,453
as

month. Another Weirton addition is the iron

sintering plant, also the industry's largest. This greatly acceler¬

A 1956

$622,018,919,

Dividends totaling

compared with 1954 earnings of

$60,927,587.

story, or stories, in
less, outlining his
interesting sale of mutual^
funds-^a HSale that gave his client

•500

one

began operations, with

225,000 tons

$38,703,321.) Once again, tax outlay far exceeded net income:

Wellington Fund

totaled

Sales

amounted

taxes

and

different stories

many

write

was

mill

total, and that only by $12,159,141. Federal, state and local

Contestants may sub¬

they wish.
do

year

pletely rebuilt and expanded 54-inch continuous hot sheet

$484,058,380 in 1954. Only 1953's record sales exceeded this
is

happened to be the recommended
investment.

Corporation, too, this

Steel's net earnings totaled

$30,334,871.

prize $200 in cash.

sale

and its multiplying population.

program

number of particulars:

The unique feature of the con¬
test is that the stories can be about
the

...

INCOME—AND TAXES—UP

National

plaque and $500 in cash.

prize is

whole

underway,

funds.

The first prize in the contest
a

with the nation's soaring standard of living, its

con¬

N.A.S.D.

three

with

agreements

tons than the year before. Even so, produc¬

pace

progress

member firms having selling group
mutual

all-time record of about 116,000,000

registered

every

representative

lagged behind the sustained demand for ever more steel

keep

For

the

saw

huge construction

Interesting

Most

open

tion

for the best

Sale of Mutual Funds."

retail

27,000,000

"Os¬

1955

ingot tons produced by the steel industry

•

4.12

177,913,219

149,318,898

Paid..;', J
COC

'U'f'H

.;1

6.54

23,940,275

;

22,009,698

com¬

A copy

our

Annual Report for 1955 will be mailed upon request

ommended or

! dollar
and

amount

initial

client's

NATIONAL STEEL

subsequent investments.

The contest winners will be
lected

three

men

impartial

prominent

panel

the

GRANT BUILDING

They

are:

of
in¬

Weirton Steel Company

Corporation

aging Editor of "Sales Manage¬
ment," the national-magazine of
an

PITTSBURGH, PA.

Owning and Operating

John H. Caldwell, Man¬

marketing, and himself

|fffc CORPORATION

se¬

vestment securities and sales field.-

SERVING

•

Great Lakes Steel Corporation

Hanna Iron Ore Company

•

AMERICA---BY

•

Stran-Steel Corporation

National Mines Corporation
SERVING

•
The Hanna Furnace
National Steel Products Company

•

AMERICAN

I N.D U S T R Y

expert

marketing; Arthur J. C. Under¬
bill, partner in the New York
Stock Exchange firm of Arthur
Wieser.berger & Company, an au¬
thority on mutual funds and head
of the nationally-known Wiesen-

uft.
urn

xlr't

in <2

■i/J

•

—

Watson, Secretary-Treasurer, and

1616 Walnut

Company,

business.

"Welling¬

l/4€th

(2042)

The Commercial and Financial Chronicle...
Thursday, April 26,

1956

National of Jersey City from 1950
to 1953.
His basic training
in

banking

News About Banks

First

CONSOLIDATIONS

the

BRANCHES

OFFICERS, ETC,

Bankers

and

REVISED
CAPITALIZATIONS

regular

Board of
24

The

New

Jr.,

President.

its

Bank

Street

Vice-

the

bank's

The First National City Bank of

New York announced

April 23

increase in its interest rate on
savings accounts to 1xk% oef an¬
num, effective May 1.
The new
an

rate

will

apply to all amounts
from $10 to $25,000 and will be
compounded quarterly. Since Feb.

1, 1952 the bank has paid 2% in¬
terest

amounts

and

000,

and

amounts

$10,000

above

$10,Deposits
received through May 7, 1956 will

$25,000.

interest from May

earn

J.,

Reserve

System,

under the charter and

latter bank
of

the

Feb.

First

Trust

merged

title of the

27.

branch

Deposit Co.

established in the former lo¬

was

become

posit Co. of Syracuse;
the

First National

of these,

one

Bank

Mar-

cellus, Marcellus, N. Y., with
stock of

mon

$50,000,

Feb.

the

Currency, that

Comptroller of the
as of March 16 the

First National Bank of Weedsport,
N.

deposit

the

end

the

Y., with common capital stock
$25,000 was absorbed and is now
operated as a branch by the First

quarter.
it

Effective

May

The

Chase

interest at the rate of

pay

annum

from $5 to

ances

2Vz%

thrift account bal¬

$25,000, the bank

announced

resents

increase

from

interest

Trust

Co.

This rep¬

the

underwriters

sis

Waterbury National Bank, of Wa-

terburyVfCqnn. from $500,000-, to
$750,000^ became Effective as-of
April 9. Details of the plans;,to
enlarge the capital were noted in

2V2%

per annum on balances up to $25,The present rate, which has

these

been

that the stockholders

000.

is 2%

credited

quarterly,
or

July 1,

Interest will

and

compounded

and

deposits made on
May 7 will receive in¬

before

terest

1953,

the first $10,000 and 1%

the next $15,000.

from

May 1.
For subse¬
quent
quarterly periods
begin¬
ning
July
1
deposits
received
through the first 10 banking days
of

the

from
left

quarter
the

will

first

interest

earn

that

month

deposit to the end of the

quarter.

According to its annual
1955,
Manufacturers
Trust
Company
has
approxi¬
mately 404,000 savings accounts
for

report

with total balances of about
$296,it

Arthur

March

Franklin

20,000
value,

the

President

National

Bank, of
Long
Island,

Square,

Franklin

Cline,

National's

servicing division.

heads

mortgage

Formerly As¬

sistant
Vice-President, Mr. Cline
has been with the bank
since 1946.
*

March

$30

13.

per

Hills

Westbury,
with

$160,000,
the

National

Long

common

was

merged
Hempstead

Hempstead,

Island,

stock

with

and

Bank,
Island, N.

Long

Y.,

under the charter and title of
the
latter bank, effective

April

is announced
by the Office of the
Comptroller of the

Currency.

noted in

issue of April
12,
page 1824, plans for the
carrying
out
of the
merger received
au¬

thorization

our

from

Banking
2

when

increase

the

The

Bank

the

approved

capital
from

$25

par

was

share.
sis

Kingsbury S. Nickerson, Presi¬
of

The

First

National

York

City, has announced the
appointment of
William
W.

Foulkes, Jr.,
in

the

Department.
of

eran

Vice-President

bank's

Consumer

Mr.

Credit

Foulkes,

than

plans

the

$1,200,000

Syracuse, of

Y. and the First

Pemberton

associated

with

the

Provident

has

and"

Fidelity-Bal¬

Baltimore, Md.,

if
,

As of March

the

•;

■

•

changed

was

Northwestern

the

Bank

National
•

;i:

An addition of $150,000 has been
to the capital of the First

made

National
Bank
of Clayton, Mo.,
following the sale of new stock of

that

vet¬

the

'amount,

thereby

capital

raised

been

years

Department.
U.

Army.

with

the

City,

Consumer

1942

was

duty with the
Upon his discharge

rank

J.,

Major,

the

staff

Company,

Bank,

Palm

Beach

the

Delray

County,

Consumer

few

months
made

later.

Assistant

1947

Vice-Presi¬

National

Bank

held

join

The

Directors of the First National
Bank

Jersey

City,

elected Thomas J. Carlon
sistant

Vice-President, it

nounced

April

have

As¬

was

Cashier.

000 of

Carlon will make his
headquarters
at the Hoboken office
and will be

program

First

Kingsbury said.

Bank

$150,000

Biloxi,

Miss,

became

March

1, having
$100,000. The
capital resulted

been increased from

addition
from

the

dividend

stock

the

sale

$25,000,
of new

$25,000

;

Mr. Carlon is

the

First

Camden

Bank, where he served
Vice-President.

sistant

previously

associated

re¬

of Jefferson Parish at

Gretna, La.

has enlarged

its capital as of April
13 to $800,000 from $600,000.
..

The sale of $50,000 of new stock
by the State National Bank of
Corsicana, Texas has resulted in

increase

the

bank's

capital

$200,000 to $250,000.
The
capital became operative as
of April 9.
*

wtih

$160,000,000 capital of

new

Bank

Trust
San

and

behind

high loan
adjustment under

tax

covers

the

months to

•

March

Price-Earnings
.

•

Ratio

1955

% Earned

.•

31,

% Earns. Paid

Book Value

in Dividends

1956

1955

1956

14.5

14.1

7.5

8.0

Bank of New York

15.4

12.4

6.7

7.9

14.7

14.1

•

•,

-■

•
.

Bankers

Trust

•

■

___

■>

1955

1956

8.0

8.1

14.8

12.8

7.8

8.7

Empire Trust

12.5

11.8

9,6

10.8

19.1

14.0

5.8

7.7

18.9

15.2

5.6

6.3

15.7

15.0

6.8

6.3

17.4

14.6

7.4

9.0

13.0

7.9

8.3

22.0

14.9

6.1

8.9

Trust___,

15.8

13.7

7.4

7.7

United States Trust

16.8

13.3

6.9

7.9

First National

City

Guaranty Trust
Hanover Bank

Irving Trust

Manufacturers Trust
J.

„

Morgan & Co

New York

14.7

■

sistance

Gap!, Sigel Joins
Lawrence W. Snell Go.

Calif,

Snell

Co.

Inc., 70
Pine Street, New York
City, have
announced

that

Captain

Clinton

H. Sigel, U, S.
Navy (Ret.), has
joined the company as Vice-Presi¬

dent.
Prior

to his

retirement in

Sigel

was

Chief

1955,

the

visory group which provided

as¬

became

13 N. Y.

City

the

Wells

years

the

shares
per

Francisco

right to subscribe
of

capital

stock

at $75 per

rights expire May 9.

also commander of

furnishing lo¬
gistic services to United Nations
naval forces

the Far East dur¬

ing the Korean conflict.

During World War II, Captain
Sigel

served

commanding of¬
ship in the
Pacific, and in the Navy Depart¬
ment in Washington. He is a grad¬
uate of Annapolis, Class of 1925,
and holds the Legion of Merit.
on

U. S. Navy

100,000

(par

share.

$20
The

the

New

American

120

York

End

13,

Stock

BArclay

Teletype—NY

7-3500

1-1248-49

,(L. A. Gibbs, Manager Trading Dept.)

Uganda

Bishopsgate,
2.

(London)

Branch]

S. W. 1.
India, Pakistan, Ceylon,
Burma, Aden, Kenya, Tanganyika,
Uganda, Zanzibar, and SomaliIn

land

Exchange
Exchange

Specialists in Bank Stocks

and

St. James's Square,

Branches

BROADWAY, NEW YORK 5,

Bell

Office:

London, E. C.

Request

Stock

Government

Colony

Head

Laird, Bissell & Weeds
Members
Members

BANK

INDIA, LIMITED

West

Telephone:

share)

committed

Netherlands

division

Kenya

Bank Stocks
Analysis

April 9 have been offered

San

was

service

Bankers

stockholders

Navy.

NATO

Royal

NATIONAL

Quarterly Analysis

April 6. Items bearing
capital from

$150,000,000 through the sale of
$10,000,000 of new stock, appeared
in these columns Feb. 9, page
741,
and April 5, page 1691.

The

the

of
ef¬

the increase in the

the

ficer

Captain

forces

National

Savings Association

Francisco,

fective

America

record

First

Navy section of the mili+^v ad¬

Bank

As¬

income

1956, in comparison with the like period to March
31, 195d:

Lawrence W.

Bank

was

following tabulation

:i:

Fargo

•;

The

stock the First National Bank

new

National
as

strong forces

Following the sale of $200,000 of

joining the First National
of Jersey
City after three

the

Plan

Chemical Corn Exchange

The capital of the First National

active in the business

development
National, -Mr.

Mills

Chase Manhattan

stock.

new

an¬

by Kings¬
bury S. Nickerson, President. Mr.

One

the

which the

capital of $300,000 was re¬
ported as of Feb. 8 by the Kenosha
National Bank of Kenosha, Wis., j
the amount having been increased
from $250,000 by the sale of $50,-

will

the

bonds.

R. McAllister

The

volume

Jersey

City organization.

under stress economic conditions.

upon

Vice-President, the title
resigned

obligations).

the

sale

•

new

be drawn

types of high grades, such
They are liquid

corporate

Beach,

from

First

and may

and

corporations are gradually getting onto a current
pay¬
$300,000,
while
the
surplus
is
ment basis as individuals
are;-, and this often requires sizable
given as $150,000. The advices of •; borrowing by the
corporations.
;
.
thef Office? of the Comptroller of V
; With the better earnings, dividends
may be expected to be
the Currency at Washington also
raised and such increases will make
easier the expected
raising
indicate that Dugal G. Campbell
of additional
capital through rights to buy new shares.
It is
is designated as President of the
expected that there will be several operations of this
nature this
primary organization and William
year.
•••
■
•
••

dent and three years later became

when

state, municipal

Florida, the

its

Credit Department, ad¬
vancing, to Assistant Secretary a

Through

were obliged to subsist on low
rates,
and their stocks sold at relatively high ratios to
earnings and at
figures that represented quite scanty rates on invested
capital.

:'v-\

capital of which is announced

Union

Manager

Mr.

having
April 9

$450,000 to $600,000.

Credit

active

were

Probably many banks whose loan portfolios have been expanding are at a juncture where the
*
*
*
relationship between in¬
•/->..,'
vestments and loans is as wide as it
ought to go. If the money
A charter has been issued as of ...stringency
continues, the banks will have to look to possible
April 6 for the Delray Beach Na¬
higher interest rates for earnings betterments rather than to
from

and

pro¬

were

Of course, an important
part of the better showing has been
the result of the
greater volume of loans and discounts under the
prosperous economic conditions. But it
begins to appear that the
shift from Government bonds to loans is due to
be halted soon.
After all, there is a place in a bank
condition statement for Govv.ernment bonds (and, in fact, for other

Rochester.
'•t

any

With the coming of the
present Administration and the hard¬
ening of interest rates the banks began to realize a better rate of
earnings on book value, and they are now at a stage where realistic
figures are shown, figures that they should have been
reporting
.long ago..,'V. \

of the

name

reserves

all of this period the banks

;

Union National Bank of Rochester,
at Rochester, Minn.,

include

artificially maintained through what should have been
normhl recovery period. Then, with the advent of
war, it became
necessary to keep rates down to aid in
financing the war.

10,
was raised to the figure of $3,300,000, having been brought to that
amount from $3,000,000 by a stock
dividend of $300,000.
,

does not

V a

of April

use

improvement in operating earnings.

The banks

rates

timore National Bank & Trust Co.
of

this

among the worst sufferers coming out of the
depression. The New. Deal, in its various attempts at
restoring
prosperity, almost immediately upon taking office set about increasing the supply of funds and cheapening interest rates. These

since

stock.

called

nounced

con¬

The capital of the

banks carried in the table also showed a smaller
dividend pay-out
relation to operating earnings than was
the case in the 12
months earlier.
This showing was in the face of a
number of
dividend increases in the
period, and so it reflects the

value

Provi¬

1946'.

Book

And

operating earnings are used, without inclusion of securi¬
ties profits or losses or recoveries or
charge-offs. Nine of the 13

...

with

nected

experience in the instalment loan

East

Syracuse, N.

Mr.

Bank

of Jersey

with

"•!:

New

Department

Hempstead Bank
to $1,350,000.

East

Subscription price
sp

dent

value.
sort.

Williams

par
new

capital stock held of record

was

Wheatley

Y.,

April

one

value

joined

State

Trust

$12.50 '

basis

each

Foulkes

into

issue of

for

Hudson

offered

were

shares,

new

page

Jr., to Vice-President.

Bank

indicated

was

rights to subscribe for

First National's

Roth,

Franklin

The

22,

which

New York, has
announced the ad¬
vancement of William H.
up

that

field, will direct the activities

000,000.

The

columns

1440,

since .November,
1931
Mr. Williams has been

tional

capital of the

April

posits will be increased

effect since

issue.

offering appeared
April 5 issue, page 1690.

our

Company

thgL effective* May 1, the rate
interest paid on its savings de¬

the

Reference to the

Norman

that

been

Mass.

expired on April 17. The
remaining 568 shares have been
sold by F. S. Moseley & Co. and
Kidder, Peabody & Co., who were

An increase in the

Manufacturers. Trust

ex¬

Boston,

rights

of New York announced
24

the

had been subscribed when the

rate.

isting

April 23.

leading New York City banks, for the 12 months ended
31, 1956,> reported remarkable gains both in the
priceearnings ratios, compared with the like period to March
31, 1955;
and also in the rate of
earnings on invested capital, or on book

•

recently offered to stockholders,
39,432 shares or 98.58% of the is¬
sue

Manhattan Bank of New York will

per

land

The

elected Assistant Treasurer to

was

1 for the
Trust & Deposit Co. of Syracuse.
period ending June 30. For sub¬
it
' *
*
\'"VV '
quarterly periods begin¬
ning July
1, deposits received
Announcement
was
made
on
through the first 10 business days April 20 that of the 40,000 shares
of the quarter will earn interest of
capital stock of the New Eng¬
from the first of that month if left

that

Bank Stocks

—

March

com¬

merged
Deposit on

3; it is also indicated, by the

office

Savings

succeed Mr. Pemberton. The "Sun"

was

sequent

stated

into the First Trust &

This Week

President, according to the Balti¬
"Sun" of April 19, which also

several other

have

meeting of direc¬

Provident

dent

banks

B7 ARTHUR B. WALLACE-

Bank of Baltimore, Md. on April
18, P. Howard Pemberton, Assist¬
ant Treasurer, was promoted to
the
position of Assistant Vice-

added

branches of the First Trust & De¬

the

cation of Bank of East Syracuse.
In
addition
to
the
foregoing,

Office.
it

Deposit Co. of Syracuse,
State members of the

Federal

Assistant

Cashier

Bank and Insurance Stocks

Company

both

April

appointed David S.
an

Mr. Baker has been

Assistant
42nd

Trust

City

National

York

Baker,

meeting

Directors held

First

Trust

At the annual
tors

The

with

of Montclair

Bank

Bankers

in New York.

NEW

obtained

was

National

and

Protectorate.

Authorized Capital

£4,562,500

Paid-Up

£2,851,562

Reserve

Capital
Fund

£3,104,687
The Bank conducts every description of
banking and exchange business.

Trusteeships
also

and

Executorships

undertaken

Volume 183

Number 5523

The Commercial and Financial Chronicle

...

(2043)

2$'
R

'■!.

•• 1

What's

•

t" '

«•

the New York Central

new on

Progress

?
on

the

move

Mr. Gerald M. Loeb, author of the best-selling book about the stock market,

"The Battle for Investment Survival," is a partner of E. F. Hutton &

broker
on

gives you his frank views

that old dilemma—the low return and low

annual report,

York

depreciation rates that have made replace¬

biggest strides in these

have the

I've

answer.

ing the Central's
1955,

tion to

just finished study¬
annual report for

new

I think I'm in

point out to

responsibility to

new.

The year was a good one. The com¬
pany

earned $8.03

per

It paid

share.

equipment such

and difficult process.
To

pretty good posi¬

just what is

you

ment of obsolete

cure

the entire

increased
was

the

But to get a true
we

these

words

picture of the road's

have to bear in mind
Chairman

Robert

1955

officers and directors regard the

performance of

your

railroad

satisfactory."

making valuation last

year.

its rate-

way

earn a

Why do the railroads
best? Here again Mr.

come out

But

now

basic facts of railroad economic life: Like
the

"box" railroads find themselves in

when

rate

wage

increases; the subsidies that

increases

lag months behind
go

competing forms of transportation; and

a more

last year.

Here

"why" be¬

improved performance

are a

couple of examples

I've singled out from the annual report:
Closer

cost

controls—1955

first year in the company's
the entire

supervisory staff

was

the

history that
was

called in

help make the budget. As you'd

ex¬

pect, this resulted in closer cost controls.
And

it allowed the Central To make
accurate

much work

cost. You see,

year

report

the Central's

than twice

1954—and at less

these shops

were

dated and set up as efficient

which I've

are

the kind of improvements that

for themselves quickly out of

tomers.

consoli¬

service to

retired to date,
obsolete

along with hundreds of

Central is

fascinating and

informative.
I also feel that

impressed

you'll probably be

philosophy of doing business. The presi¬
dent, Alfred E. Perlman, put it extremely

train

concept—The

experimenting with two

new

sider the interest of any one group at
expense

of the others,

lightweight trains—The Aerotrain and

detriment of the property,

Xplorer. This is
today's

bold attempt to

sagging,

money-losing

railroad passenger traffic to a
and

dynamic

obligation to all, to the eventual

owners

its customers,

and those who work for it...

the program we

have projected gives

interpret the

con¬

sideration to all three of these 'interests'

growing business.
shows how, at the end of

1955, the members of the New York
Central board of directors and

its

our

the

should be failing

The

switch

with the railroad's

was

well when he wrote, "If we were to con¬

buildings.
passenger

Company Annual Report. I think

dents will find the report

cus¬

700 miles of track have been

process,

New

part of the tightening

sav¬

in the 1955 New York Central Rail¬

and

1955 has been

good

year

★

Alleghany

★

Corporation owned almost one-quarter of

Copies of the Annual Report

all the shares

tained from the

outstanding, giving them

the best incentive to build for the future.

for all

three."

at 230 Park

can

be ob¬

Secretary of the Company

Avenue, New York 17, N.Y,

production

lines.
What lies ahead?

pay

This report

year.

maintenance—The

repair shops turned out
as

projection of their cash

points out that last

These

ings, and also speed

let's look at the

hind the Central's

Improved

second

get on a

judicious expenditure.

return.

Young gives the

are to

footing, I can't think of

position for the entire

averaged 4.2%,vwhile

based this brief analysis is available to

investors, employees, customers and stu¬

other

railroads

Every fact and figure

provements already are well under way.

its Centralized Traffic Control System.

case

public information campaign.

public utilities

man

share.

dollar

comparison, the report shows that all
most

plant. Many major im¬

owns one

1»

profit, but for

own

road

The Central earned 3.8%

who

for their

co-shareowners, from the

you

Young, "It is only in relation to the past
that your

to build a

their

The Central is consolidating and mod¬

highest in the industry.

performance,

program

And not only
all

ernizing its freight yards, and has begun

sound

million

efficient

will make its

areas:

before

industry to take its

Frankly, if the railroads

income

five-year

new

•

company

■

the people with a one-hundred-million-

regular quarterly dividends for the first

railway operating
124% and at $73.8

slow

these ills, Mr. Young urges

time since

1931. Net

the

annual report

s new

When you ask "What's new on the New

Central," it's

Company,

New York Central Railroad

The Commercial and Financial Chronicle.

(2044)

British Chancellor's First

therefore that the popu¬

seems

lar verdict

favor

Mac-T

Mr.

millan's Budget

Anti-Inflationary Budget

Thursday, April 26, 1956

expressed by the
Stock Excnange and the foreign
exchange market, was fully justi¬

fied.

•*

Fublic

Utility Securities

By OWEN ELY

By PAUL EINZIG

Five Arrow Sees.

Macmillan's

Chancellor

discusses

Economist

British

Noted

favorable sterling exchange rate response.
Credits "premium bond" proposal as politically courageous
and appealing to many people who are not tempted by higher
interest rates or tax exemption.
Sees in Macmillan s past
record evidence that the promise to reduce public expenditures
Following

LONDON, Eng.

MTMacmillan'slBudget
the

the lower income groups.

Gap. Co.
Formed by Rothschilds

Columbia

Canadian

holding

Power

company

Corp., Ltd.

in residential usage.

saturation,

con-

trolling British Columbia Electric

For example,
is

electric .ranges

43%, and of gaS ranges 19%; refrigerators 79%, but freezers only

and British Columbia Electric Ry.'

Formation l7y the de Rothschild
banking houses of Paris and Lon-

Most of the securities of the latter
company are now held by the
don, in association with Pierson Electric Company and with a£qui-:
& Co. and Heldring & Pierson, sition of the final holdings of prefHe^ in- Holland, and Banque Lambert in erence stock and debentifoe:Btock
Savings Belgium, of a new company in- the Railway company will be dis,

5%; electric water heaters 29%
anefcgas 131%, automatic washers
11% (conventional type 74%),<TV
56%, clothes d^ers 3%, etc.:
"share earnings have increased
rapidly in, recent years as follows:
.

creased interest rates on
Certificates and Defense Bonds, corporated in Canada has been solved.--.
..
••
;
; V1955_—_'_i $2.05 ,
cheerful tone and ster- and he exempted from taxation, announced in New York City,,, ,,.,
pie system, including operating t
1954^ i
1.62
ling rose....to up to a certain limit, interest
The new company is Five Ar- subsidiaries with annual
$2.81,"' earned on savings bank deposits.-"rows;,-Securities. Co, Ltd., a titlq of over $63 million, serves an area .> ^ - ,1952^ "
p | ' above
*1 34
"
;yV:
the
highest To a large extent the effect'• of - derived from the five arrows con-■.-.of about-.l,600 square miles and a r:y.95^-""I"'
1
point since its such measures will probably be tained in the Rothschild coat-of-;* population of 830,000 with elec-f;■
.V,"'decline
last a transfer of funds to these types arms and referring to the five tricity, gas and transit- It is one of
Adjusted.j 1 V
•'Summer The of savings from other types of original Rothschild banking the largest producers of hydroThe company enjoys good rela¬
verdict of the savings. The net increase of sav- houses.
The Rothschild- banks electric energy in Canada.
;
/
tions with the British Columbia
Stock
Ex- ing
resulting from these meas- have a history dating back to the
; The area served has grown rapchange and of ures is not likely to be spectacu- m*ddle of the Eighteenth Century, idly, with an increase m. popula- Commission, and under a. past rul% *?* i Y
the* interna lar
Five Arrows Securities Co. Ltd. tion of 62% during 1941-54 com- ing is permitted to. earn 6¥?% 'on
-4% lional foreign
n/nvro^iibn'c riPPi^inn in
has an initial .paid-in capital of pared with 32% for all of Canada the over-all rate ;base; Since a
e X
h a n
inSUS
*8,000,000.
' '
' '
!' ' and 21% for the United States, very low return is earned by the
market
lntr°duce f
Baron Guy de Rothschild, part- The growth in manufacturing in- transit properties (except for
distinctlv
fa
W'"1
ner of de Rothschild Freres, Paris, dustries (net value of products) freight transit, which is quite profvorable in RvoraDie. In 11
has also been large—during 1939- itable) this would permit a betstrong prejudice in a hv no means is chairman oi the Board °' P>"
by 1™
rpptr»rc nf thp
othpr

statement

Exchange dis-

Stock

London

played

British

;

New Venture

first budget and the

will be fulfilled.

British Columbia Power

'■

„

•

■

\
.

12
wis

tl?.^

npurpnmnanv

inno

—

gas
Dr. Paul

the

Einzig
vmvv.

interpreted as an indication that the
markets were anticipating more

sincere

inflation.

tajn

change

could

have

been

Since, however, it was
a
firmness ^of
sterling,
such
interpretation
would be out of place.
Rigntiy
or wrongly, investors, speculators,
accompanied' by

in foreign exchanges
foreign exchanges

and dealers

have

taken

optimistic

Britain's

about

pects,

pros¬

result of the measures

as a

opposing

Mr. Macmillan

April 17.
■

votes

thpir
their

The

hpnrt
heart

nf
of

Mr.

Macmillan's

tobacco and the Profits Tax

Soy^—nheCgaveeawav
f
in the form

long-

some

SfnThaffh^S
Hil^nfiaHnntrv
a

nniAcc

It
the

view

a* neea not be covered
exP®nd1Jure by the
~

plus TlS conception

has become

thoroughly

discredited

recent

times.

expenditure
differs

excess

any

purchasing
an

absurd

Jmagine
efcect
of
purchasing
created
through
capital

power

the

Government

from

way

power created

current

over

that

through

expenditure

revenue.

Spending

to
—

not

are

many

tempted

salaries

form

expenditure,

covered

credit

revenue.

Mr.

discarded

part of
unless

the

ferentiation

Macmillan

the

that

unwarranted

between

cur-

the

lished

proper

the

J?'

C°Uld

before

it might
to

It
the

u•

months

solution

pro-

•

scheme

new

PUt into.°Pfation>

meanwhile uncertainty wo u 1 d
f J?,ut JJj6 disinflationary
^r* Macmillan s measures.
entirely

the

MacmillanJh?5 emtarked

outcome

upon an

economy drive, in pubuc expenditure. His announcement that he

ing the.current financial

leasi

million

£100

ceived with

librium.
certain
means
no
a
arv
y

This

implement their promise. Mr.
Macmillan's past record justifies,

was

onpratinn

operation.

Yet

two

exceeded

io
There is,

however,

no
overall
Budgetary
surplus which would mop up the
inflation

created

sector of

the

economy as

opera

spiral

Instead

private
a

result

this

Mr.

Macmillan

considerably

his

self-

imposed target. It is not unreasonable to hope, therefore, that
on the present occasion too
performance will surpass

in
•

order

i°, ue
to

to
.

bring

the

wages

.rag.„

halt, however, it will

be
necessary
to
continue
the
credit
squeeze.
In
his
Budget
statement

Mr.

Macmillan

re-

minded the bankers that the Gov-

-ages ernment has legal credit and force
powers to
them to restrict
.

that

aiming

savings,

especially by

Power's

;

....

89 t

(3,401,000 shs.)_ 1

rev-

manufactured
manurapTnrpn

M<!

gas,

$325

The

i m%

current ,dividend; rate

During' $1-20- The stock has been selling
waV un
recently on; the American" Stock

miscellaneous
svstem

transit

nronprtips

hppn

investment opportunities.
The

stock

the

comDanv

owned by de Rothschild Freres;

JtexaS utlllties> Houston Lighting,
etc*

war

the company

busses.

the

same

time

Sons;

Hel-

was

(

an-

President,

that Leo Model, senior partner of

York and London bank-

The gas division is being

gas, and will
temporarily obtain gas from the
Pan Juan Basin in the United
States but later will substitute

a director of the
Amsterdam Overseas Corporation,
where he joins on the Board

Baron Alain de Rothschild of the
Paris House, and Jonkheer Sandberg of the Dutch banking firms.

Gas via West Coast

Transmission Co^oany, when the
latter gas is available in another

Thp

this

romnanv

pynortc

v^r

tosnend about <575 million

struction

'
-n

Fcmitv

$'36

versus

and

vears
years

thp:
the

pvnprts

ronin,nv

rom^ny expects

view of

the

HILLS,,.Calif.

(1)
serve

The

Company

will

"v^'w-

lvr

(3)

Bernstein, active in New York fifor*3Vo
^ ,?r#
+U3
t?

years, has arrived from the East

permitting full

use

The

completelv automatic
42,000 kw. Seton Project will be
ready in mid-1956.
(4) The 140,000 kw. Cheakamus

duties

Joins Proctor, Cock
BOSTON,

ancial

Mass.

—

Total kw. hydro

Chronicle)

Harold

capacity is

added

by 1961,

Berkowitz has joined the staff of

small st^m standby

produced the desired result. Taking everything into1 consideration

changes.
Mr.
Berkowitz
formerly with Keller & Co.

and

Boston

Stock

was

T„TrQ(,x

Research

for

Department

E. F. Hutton & Company.

Foi'ttts Investors
NEW

Security

EGYPT, N. J.—J. Henry
-

Mantel is

now

conducting his in-

h„cinoco

vestment business under the firm
name

0f investors

Security Co.
,

txplains why Hit
area

now

offers

senrt

mud*

opportunity
to

Clef

industry.

Write for

FREE

COPY
Box 899.

D«pt

Salt lokt

City 10.
Utah

525,000 kw. and 309,000 is expected
H.

Proctor, Cook & Co., 10 Post Office Square, members of the New
York

+Ua

Project will be completed in late
1957.

(Special to The Ph

City.' Mr. Miller

merly Ma ager of the Invest-

the important Powell River

na,???a Jack J- Bernstein to in October,
n!lPua,S!l?6
180,000 kw.

new

New York

expailslon bAerve ™ important ^owen Kjver

begin hi<?

Vegh & Company, 1 Wall Street,

soon

?"d
/ c°™pa,ny' Ca!?: Area, where the largest newsprint
wfrtif ^
?
and pulp unit is located, as well
S°rth„ ?a"°o DrlT\,haS created aa other industries,
°j ®en,eraT1 Manager and
(2) La Joie Dam was completed

appointed director of research of de

AREA RESOURCES BOOK

.include the following:

expansion

continued

Vegh & Co,

as compared with present net olant of $308 mil1 ion. Re-

—

on con-

struction,

Cantor, Fitzgerald Co.
BEVERLY

should

j^e nee(je^ thjs yeari Over the next

fiw
five

to spend over $400 mil1 ion

Jack Bernstein With

Willi de

Oscar* M< Miller, has been

was

Exwas

59%.

The

companv

increase
has one

plant and

UTAH POWER
& LIGHT CO.

few small diesels.
While
over

sales

four times as

•" ' ' there is

room

■-

con-

million last

financing

Decernb4

;

Oscar Miller Now

ment

year or so.

converted to natural

ing firm of Model, Roland & Stone, Peace River
has been elected

'■■'>

had to ooerate

an(j Banque Lambert.

Rothschild

marketwise

now
been obtained, whereas during the

aKn W

dring & Pierson, Pierson & Co.,

graduated

into the class
"growth" utilities,
such >8 Florida Power & Light!

With

on a low voltage basis at times.
The transit system has been converted from street railways to

stock has

the

he would "be
w.ouM
prepared to
exercise those'powers unless
voluntary restraint by the banks

havp

completelv modernized

situations that Provide suitable some reserve capacity has

his

promise.

spiral

n-/c

Wpru War Ir

his

large
3in]in?u aAl a Ja**e
Mapn.n]o
p LIS f ,"at
Mr.
iffnr+ rf concentrated his main
cfim,
measures
at
muiaiing
i

efficient ad-

declared

longer added to the inflationin
in

to build 300,000
houses a
His predecessor Mr. Aneurin

Bevan, who

Columbia

rnmnanv

some

impossible.

degree of optimism.
It
that Government deficit is

forces
iorces

+Hp

by amongst
others
its
Chairman,
wak*re-* Camille<Gutt, partner. of .Banquq

repeated occasions by his predecessors
who
were
unable
to

year.

the

are^% e_lectric, .28%;
and 6%

ireipiii)

year

tion

1958 this

5.3%

earn

passenger,

doubts, because Lambert, and former Chairman of
undertakings were given the International Monetary Fund;

similar

may

rate base, and in 1959 7.8%.

production

enues

rnmnanv

British economy does not nounced by Mr., Fleck,
depend

division

ac-

24%,

British

Britain's

least^x

ministrator,

Budgetary equialone justifies
a

been estimated that by

state

ained'^durts^Jtc1' ChemlCal a"d
9.ProaUCtS, eiC.

Hoand

is mopped

power

vide

dif-

types of expenditure and reestab-

^ ^ ^ charter

the

tax

engaged
on
some
however, a certain amount of opcapital
investment timism in this respect. When in
project is just as inflationary as ,1951 he became Minister of Housthe
spending by civil servants ing he announced his determinawhose

Corporation, New York

Fleck has also beer
Fleck has also been
®lect«dPresldont of the new northe new cor-

for

Manufactures

Vnrif

President Of

nanv

workers
Government

rent

tvipw

317%

Province, construeCapital structure as of Dec. 31,
forestry 12%, mining 1955 was approximately; as fol6%, agriculture 5%, etc.
Wood lows:
-•"
'*•
products are the principal output ; •
;
■ ■£Millions
Pctge.
(
,
.
of
manufacturing, ,followed
followed
48%
Funded Debt^-.- $157
and beverage
oods and beverages, paper prodPfd, Stk; -of Subs.
79
24
J . '
Com; Stock Equity
•
:
'
tion

of Five Arrows thp
Securities Comaiit.hori7.ps
to
^authorizes the company to
"W^st invjexisting^ and; new, com-

o—

i.jii

ii—a

would cut down expenditure dur-

indeed

the

value

Mr.
Mr.

elected

an of the Premium bond issues. Mr. the New
become

•

rm-nnratinn

and

Washington.

count for about 47% of

0„_,

P—eck

nment

riLrauriwiianreVeniie

City.
City

depend largely on the response of
the public to the premium bond

or^-

the

?hf mUiLircSsnSit S

that

will

measures

Interest rates

uove

,„5n

Anfiirrtn

higher

disinflationary effect of

n/r—~,iii„„>r,

Budget would not in themselves

inv

result

hparts.
hearts,

who

ratP/1

cer-

„

people

ceeds

adopted\expect that it \vill appeal to

-thereby squeezing, slightly both

J.A.G.

Ovprspnc
Overseas

iose

--_.l

measures

States,

Rothschild & Sons, Lon-

Jonkheer

in
in

government

Chancellor in his first

new

0f n. M.

don;

this decision, especially as the
Opposition is doing its best to
make
political capital out of a
measure which
they really favor

The

ocrites.

—

The taxation

tax

are

issue*sr~There is"good reason"

announced

by the

whether they are hyp-

Sandberg,
artner
of the banking firm
p£
of
H eldring & Pierson, The Hague,
and Pierson & Co., Amsterdam;
Baron Lambert, partner of Banque
Lambert, Brussels, and G. Peter
Fleck, President of. Amsterdam

view

economic

those

whether

electricity

large

are

in 193°

for further growth

Serving in Utah
Colorado

Idaho

Wyoming

Volume 183

Number 5528,,. The Commercial and Fincncial
Chronicle

(2045)

IS
J'5
?

f T.t

Ir*';

(ivC) '?

bus drivers... housewives

vested their

savings in

...

our

...

farmers

...

people who've in¬

growth. They have

just received the Annual Report on the 73rd
year

our

company's business.

What makes Jersey

business? All

kinds of

people-stockholders,

in '55. A year
oil to

•'*

employees, of record income

generated for governments in the form of taxes

employees and customers.
Because of all these

and benefits to

it—merchants... teachers

i;s:F

■:. j,;

■m

own

■

\ <,<•'

•;

■

—a

year,

in short, of bigger contributions to the

prosperity of the people of the countries where
people,

had

good

of searching for and finding

provide light and heat, to

year

do business.

run cars

and

trucks, trains and planes, buses and tractors, to

Standard run?

People. People in offices and in the labs, in the

make

petrochemicals. A

year

If you

even greater

would like

a copy

1955 Annual

our

oil fields and refineries of

panies. People like all of

our

...

affiliated

com¬

who work, play,

research

A year—as our

sales and

raise families. ;

leading to

and better products.

Annual Report shows—of better

earnings, of record payments in

wages

Report to Stockholders, please write to
Room 1626, 30

20;^ew York,.

^
■

S T A

■

N P A R D

us at:

Rockefeller Plaza, New York
*

■

jfiifiH'.'.

O I L

COMPANY

(NEW

JERSEY)

AND

FT L

A T

COMPANIES

US'

manufacturer

the

strength of our free enterprise
nurtured through the centuries, and it is in their

Administration presented to the
and

growth of
"The

entire

our

economy.

for the message were

reasons

"First, farmers generally

getting

simple:

not—and

were

not—

are

And

fair return for their work. Farm families, almost
alone of our people, are not sharing as they should in the
record prosperity of our nation.
...

;■

world.

the

other

the

produce so much food to feed
prices to consumers.
"A third
was

that

our

reason

for the

Government

so many

January

owes

message to Congress
the farmers help. Unwise

price support legislation of the past many
has distorted production and markets, and piled
price-depressing surpluses."

years

What of the Reasons?
Now

farmer

development of new equipment to

But saddest of all, the program which
the President is now Initiating (at the same time that he r
condemns Congress for the wretched bill he vetoed, and
past administrations for surplus producing subsidies)
Vcould hardly fail to have precisely the same kind of ef¬
fect as those that are being condemned. The government
has to get out of this business of paying subsidies to the
farmer no matter how they are disguised or-by whatever
name they
may be called. \ If by reason of past
policies, sudden withdrawal of government is adjudged
unduly harsh or unfair to the farmer, then some means ;
of getting out of the business gradually or with a mini¬
mum of hardship may be devised, but government must
get out. That, we are afraid, the President, little more
than Congress, fully envisages.:
■y.••"■

suggest that the reader examine these three

dispassionately and with care. Farmers, says the
President, are not getting a fair return for their work
and are not sharing in the record
prosperity of the na¬

tion. What is

might look for a long
question that would
satisfy everybody—and then not come up with one. In
the case of the railroads and the public utilities
essentially
the same question has long been one of the
stormy petrels
of economics, and the
only answer that makes sense
an

to be that

seems

answer

return sufficient to

page

the

minerals

entire

which

our

pends.

We have
the

de¬

successful

deposits
lower-grade
ore

new

use

upon

economy

been

in the search for
and

metals

and

materials only because

plentiful amounts has been avail¬
able.

The

services,

most

them,

essential,

are

and

has found any way

no one

of providing them economically
except by permitting the producer to charge the con¬
sumer
prices which will keep him in the business. Sub¬

stantially
in

would in the end in all probability result
many people going into the business.
It is this

too

constant

determination of the price

which is necessary

to keep just the
right amount of a given good or service
flowing into the economy which competition so well ac¬
complishes, and it is the difficulty—if not the impossi¬
bility—of maintaining what would be normal competi¬

tion alive in certain

the

utilities

specialized fields like railroading or
generally that has led to the bungling at¬

tempts of government to regulate. But no one, so far
as we are
aware, has ever suggested that the Government
should step in to provide subsidies to the railroads or the
utilities to enable them to
provide more service that any
one is interested in
having at

prices which pay the cost
of production. Such
exceptions as there are to the gen¬
eral rule of
requiring these enterprises to find their own
income
other

from their

own

consumers

considerations—and

serious

even

owe

then

their

origin to

often

are

open

And

echo

cratic

arguments often presented to show that the farmer
generis for one reason or another, but to the dis¬
passionate mind their validity is conspicuous by its ab¬
sence.
Of course, farm
products are essential—but not
farm products far in excess of the
needs of the
is sui

cost that

largesse

pay

burdensome to

ple

people

is far greater than normal—and taxes

certainly

are

cost.

But what is

all is the fact that several million
peo¬

being kept on the farms producing nothing of
surplus piling up has no value) when
they might well be adding to our supply of the good
things of life that are not already in super-abundance.
are

value

(since the

The President's first
found to be without

reason,

then,

upon

unwisely invested in equipment
can

not be made to

earn

then the farmer like
any
facts and take his
loss,
other

other economic fronts.

sources

competitively
is

tern

in land which

free

now

market,

must face the

turning his attention to

some

return is reasonable. To

ears

the
as

they harsher when

If the farmer has

fair return in

pleas of the farmer and his
these may seem harSh, but
why
so

during

Tne energy pat¬

extremely

shifts from

will fare
this bright

energy

future.

economic

one

and

dynamic,

fuel to another are

expected in the days ahead.

to be

perhaps I should in¬
Department of the

At this point

applied than when applied

are,

arrows

promises to be
1955, for the
whole, and for both

The present year

than

better

even

economy as a

The

anthracite.

and

bituminous

companies and the steel
expanding — European

are

demands will continue strong, and

how the vari¬

It is hard to say
ous

dicate that the

.*■

coal-prepara¬

strides, in

Rapid

tion

im¬

should

sales

retail

think

prove.

methods

are

giving

you

quality product.
Im¬
production methods are
keeping initial costs down.* Sales
of automatic heating equipment
improved

proved

last

were

year

Interior, in view of its very broad
responsibilities within the energy
field, cannot favor one fuel over
another.
The Department's pro¬

over

designed to promote
vigorous but wise development as

ket in
ment

effective utilization of all

whopping 38%:

lems.

grams

well

are

When you sell equip-1

1954.

ment, coal sales are sure to follow.
Anthracite, being an inherently
smokeless fuel, has a natural mar¬
where smoke abate-*

areas

air pollution

and

prob¬

are

Now
of

this

pose

within the
foreseeable
future
promises
as
much
or
more
than
any
other
source of energy. It enjoys a very

der way.

New factories and new

industries

mean

primary advantage in being so
immediately and so abundantly
available.
The magnitude of our
coal resources is unmistakably re¬
assuring when one considers the

tremendous expansion of housing.

Nevertheless,

that

coal

than

less

known

have

reserves

been

is coal abundant — it
produces more Btu's per dollar
expended than any other fuel.
Worst Is Over

By this time some of you may
be
wondering where you .have

rather,

been,

been.

Can

where
that

million

tons

millions

tons

high of 700

little

1954,

400

over

drop

40%.

some

worst

of your lost

the

however,

over

and

coal

that
is

the

its

customer

puts

high value on convenience, he al¬
ways has a hand on his pocketbook. In the long run, efficiency
of

costs

and

often

operating
heating
are
the determining
or

com¬

the

within

two-thirds

about

years

greater

than today, and this seems likely,
how much of this increase will go
to

coal?

the

background

that

how

regard

other

the

meet

energy

result.

the

you

bituminous

1955 exceeded the fondest expec¬

Congressional Joint Com¬
Atomic Energy

opinion

recentiy

that

sources.

sure

be looked

There

es¬

source

upon

supplemental

energy.

be some inter¬

may

mediate

reverses, but the longoutlet still points to a mar¬

range

for

ket.

coal

the

1965-1975

far greater than
perienced in the past.

period

in the

ex¬

any

government also

are

mindful of the need for advanced
studies in connection witn coal.
In

keeping with

recommen¬

dation of the President's Advisory

Committee

Energy Supplies
Policy,.and at the
suggestion
of
several
leadmg
coal men, the Department of the

and

Resources
...

Interior

has

formally
the

been

with

industry and of local

ments

to .make

along,

comprehensive

bitu-

This work, now well

research

covers

performed

ments and by

that

govern¬

inventory of all research
.minous coal.

in¬

working

representatives

industry

performed

Government.

Govern¬
as

the

When

coal

State

well as
Federal

completed

inventory will be studied and

evaluated

with

elimi¬

view

nating

duplication
in research,
determining the areas and re¬
spective responsibilities for re¬
search, and deciding where em¬
phasis should be placed in order
to

meet

specific

earlier.

goals

Anthracite Prospects

Problems
thracite

with

respect

an¬

not

either.

being overlooked,
We can point to an ex¬

panded

research

are

program

now

the Bureau of Mines

for increasing the use,

the prepa¬
mining of hard
of utilization,
the work primarily is on finding

ration,
coal.

new

the

and

the

field

uses—new

thracite

the

markets—for

industrial

an¬

field.

Meanwhile,

the mining research
is concerned with devel¬

program

new

and

mining

improved

methods to increase the output per

day,

man

lems of

since

the

actual

prob¬

mining anthracite are far
than in the bitu¬

complex

fields.

minous

The

Department,

expect

count

attainments that

will be of material benefit

this

industry.

and

have

accordingly.

set

your

sights

Among the

made remarkable strides in recent
months.

con¬

com¬

anthracite industry on these sev¬
eral programs and we confidently

competition

substantially

industrial

have noted

may

and related in¬

tations of the most optimistic ob¬
servers.
Utilities and steel took
more;

I do not feel

through the Bureau of Mines, has
been
working closely with the

the

resolutely

dustries

will

such

this

make

and

secondary industry.

largely on
various seg¬

That depends

coal?

energy

*V' Some fear it will force coal into

oping

de¬

mands

will

man

selects a fuel.
develops that energy

pany

atom.

source

that many of you already realize

again.

Production

remember

important

while

the

uses

new

underway

demands for fuel energy.

ments of the coal

believe,

solid fuel mar¬
kets, but to obtain even a greater
share of the strongly increasing

For 10 years retail sales

of coal skidded from

plus

industry and related business
enterprises
not
only to regain

that

;

real competitive threat to
types of fuel such

your

some

conventional

operation, much can be donenow by

units

going down.
During this
period over-all production

same

or even

industries

enterprises,

influences when

hundreds

With firm determination and co¬

have

of both bituminous and anthracite

kept

business

coal

truly wonderful and people don't
know it?

and

smaller

thousands

Coal

and

word about development

peacetime

Does

this

Vast building programs are un¬

energy resources.

way up

of the rest of

occupation where the

grown accustomed to
friends such doctrines
are

examination is

validity.

The second is like unto the first.

Not only

any exception to the general
"why." Oh, there are physio-

answers,

Atoms

should

production and sales.

power

made

advances

tne

that

indicate

mills

support

mined to date.

Why should farmers be

petition from nuclear power will
be
very
small 25 years hence.»
Fissionable
materialsprobably

pointing upward in 1956 for both

and

recoverable

Why Are They Exceptions?
rule?

the

that

confident

feel

time

development of energy Resources
will continue to keep pace with

fact

question.

gives us medicines, plastics, per-:
fumes, and scores of other impor¬
tant products.
,
;

expressed

production for the first
years, and late reports

ahead of

energy

time into the

two industries.

magic things that are found
lump of fuel which.already;

sential

make it worth while for

people to put their money and
production of the services supplied by these

V:';

-.'■■//

Coal and America's future

to that

"fair return" is

from

to unlock more

ways

of the

mittee

"fair return"? One

time in search of

discovery of

that the

reasons

Continued

efficiently and the

burn coal more

'Tis true,.'tis pity, and

finds himself!

now

greater attention to certain fields
of research. Among these are the

•

and unbalanced

now,

pity 'tis 'tis true.

few people:
at such reasonable

country do

industry, the producers of coal
realizing that they must give

are

ought to be his.
the third reason. Government itself is,
part responsible for the plight in which

it is said, in

"Secondly, farm families deserve a better break be
cause of heavy investments
they have in land and equip¬
ment, the many risks they take, and the sweat: they,
put into their jobs. Our farmers are the most efficient:,
in

And, like the oil industry, the
industry, or the steel

automobile

tunity to enjoy the good fortune that

through groups like
more uniform, high-qual¬

ity product.

application that it will progress in the future. The fact
that the farmer is efficient, merely renders it the more
lamentable that the consumer is not given the oppor¬

Congress for the health

the

give

consumer,
yours, a

and

coal

from

rities

has been

As We See It

impu¬

lions into plants 10 remove

of such doctrines that the

put mil-1

The coal industry has

say the security dealer or
merchant? It is in the application

applied) to,

(as they are daily

Continued from first page

1956

Thursday, April 26,

The Commercial and Financial Chronicle

(2046)

The

producing
It

industry

paying

has

far more
relations

many

the

problems fac¬

ing the anthracite industry is that
of surface and underground water
getting into the workings. Under
a
law enacted by the 84th Con¬

sumption and retail sales were up;
exports doubled. Anthracite didn't

attention

gress,

the

didn't

in developing new

terior

machinery to increase productiv¬
ity. It constantly is on the alert
for improved methods of trans¬
portation and storage.

with the Commonwealth of Penn¬

nearly

well,

all know.

Production

but recent

news

was

you

off 8%,

encourag¬

ing—I understand that sales dur¬

ing

the

past

year

actually

ran

and to

safety.

employee

It is working hard
equipment and

sylvania

Secretary

authorized

of
to

the

In¬

cooperate

mine-drainage

proj¬

ects aimed at controlling water in

the

anthracite

coal

formations.

/
;Volume 183

This

cooperative

initial

Number 5528...The Commercial and Financial Chronicle

with

program,

$17 million—half from

These

started

and

just getting
expect that com¬

—

pletion of the projects that
undertaken

with

the

can

will
help considerably in curbing the
money

mine-water problem.
,

The encouraging prospects for
using anthracite in blast furnaces,

and its possible application in the

field
of
treating ores, such as
jtaconites for the recovery of iron,
the upward trend in anthracite

burner

sales,

the

work

the

on*

flood-water

spirit

problem, the renewed
enthusiasm—all are big

points

the

credit

side

the

ledger for "hard coal."
Another

the

phase of the activities

Department

particular

which

interest

might
to

tnis

cash

used,

$50 Million Ontario

the government and half from the

Commonwealth

(2047)

among

capital

Debentures Offered

expenditures

Commission's

the

Province

construction

the

expan¬

The

loans.

estimates

sion

and

program,

temporary

Ripley & Co. Incoporated and Wood, Gundy & Co.,

repay

Commis¬

cost

the

1956

the

000,

the

extension

Year

and

distribution facilities in

15,

nection

managers

in¬

at approximately $198,400,including expenditures for
further generating capacity, and

banking

3"%% Debentures, due May
1981, at 99.60% and accrued
interest,- yielding 3.90% to ma¬
turity.
Net
the

from

proceeds

Debentures will

the sale
be

with

the

con¬

increasing

de¬

The

Debentures

deemable

advanced

the

will

whole

re¬

part,

option of the Province of

Ontario, at

any

Hydro-Electric

May

1961,

the

Power

Ontario,

funds

its

Commis¬

which will
cash

add

resources.

par,

group are the plans which we are

15,

time

and after

at
redemption
from 103Vz% to
according to redemption date,

prices

ranging

debentures

Princi¬

sources

basis

these Deben¬

interest

who

owners

are

dents of Canada.

transformation

mand for power.

by the Province of Ontario to the
sion

Ontario.
on

tures will be payable in currency

syndicate of¬
fering $50,000,000 Province of On¬
tario
(Canada)
Twenty-Five

are

vestment

pal and interest

and

for

industries

the

there¬

non-resi¬

The Province of Ontario is the
second largest

area

of the Ca¬

nadian

Boero Appointed by
Nat'l Quotation Burean

Provinces, and covers ap¬
proximately 412,000 square miles.
Total estimated population of the
Province at
June
1, 1955, was
5,183,000 or about 33.2 per cent
of the total population of Canada.
Principal
industries
in
the

has

Province

tion for many years in the

facturing,

Ontario

mining,

are

manu¬

hydro-electric

National Quotation Bureau,
46

Front

elected

sistant

avaiiaDie

Civil
event

distribution- b,y

lor

Defense
of

authorities

Ugo Boero

Secretary.

and Subsidiaries

not

generally located near pro¬
ducing mines, a procedure i must

1955 Biggest Year in

be developed whereby the. proper
amounts and kind of fuels can be

supplied
order

for

disaster

relief

statistical

and

avoid

the necessity for
supplies of fuel in

confiscating
transit.

Because of the complex nature

of the various types of fuels, and
the specialized knowledge tnat is

required of their normal distribu¬
tion
pattern, the Federal Civil
Defense Administration has dele¬

gated

the

Department of the
Interior the primary responsibil¬
ity for developing a program to
that

assure

fuels

relief

supplies

available

made

Office

Mobiliza¬

Minerals

tion within the Department is now

engaged in developing a plan to
accomplish this purpose for solid
fuels.

that
in

These

•>.

plans

services
the

solid

advisors to the local

Defense

should

engaged

persons

distribution

Administrator,

emergency

•determining
quantities of
quired - a n d

the

occur,

kinds

fuels

that

and

velops,
the

Office

ization

this

Company History

NET EARNINGS FOR 1955 WERE

$157,120,000, a gain of 34 per cent
a share, based on the average
nuifiber of issued shares. This compares with $3.73 a share in
1954, after adjustment for a 100 per cent stock dividend in that
year. Chairman Robert E. Wilson and President Frank O. Prior
1954. This

over

equal to $4.81

was

attributed the earnings gain to greater production of crude oil
and

natural

gas

liquids, product sales increases, and operating

savings resulting from Standard's heavy investment in new facili¬
ties in recent years.
Earnings in 1955 included a nonrecurring
net

profit of $9,235,000 from the sale of

interest in certain

producing properties.

dividends
were

paid

intendon

Minerals

work

equal to $2,083

share. Dividends

year.

PRODUCTION IN 1955 was aided by continuing development of
prior discoveries. The most active development area was in the
Pembina field, Alberta, Canada. Standard produced 7,360 net
barrels of Canadian crude daily at the end of 1955, more than
four times the production rate at the previous year end. After
making up for 100 million barrels withdrawn during the year and
the sale of an interest in some producing properties, Standard was
able to increase net proven reserves of crude oil and natural gas
liquids 37 million barrels, to 2,097 million barrels.
TOTAL

BORROWINGS IN 1955 decreased by $11,679,000. At the
end, they were about 17 per cent of total assets, compared
a peak of 21 per cent in June, 1949. Capital expenditures of
$229,900,000 in 1955 compared to expenditures of $284,300,000
in 1954. Major manufacturing outlays were for further product
quality improvement, for a refinery being built at Yorktown,
Virginia, and for chemical plants at Brownsville, Texas, and
Hammond, Indiana. Capital outlays for transportation and mar¬
keting went mainly toward modernizing, and improving existing
facilities to reduce operating costs. 1956 capital expenditures
probably will be 15 or"20 per cent higher than in 1955.

year

TOTAL INCOME FOR 1955 SET A NEW HIGH OF $1,814,000,000. Sales
a record $1,736,000,000.
In the face of intense competi¬
tion, volume of product sales increased 7.9 per cent; dollar value
increased 7.5 per cent. A booming economy in industrial areas
aided in achieving these gains. However, the rural market was
depressed in most areas as a result of falling farm prices.

Gasoline octane ratings are now at the highest point in the
Company's history. Increasing emphasis is being placed on man¬
agement-dealer conferences to tackle mutual problems and im¬

operations. Capable dealers in clean and attractive stations
key factor in Standard's sales success. Since 1946 volume of
gasoline sales through service stations has increased 80 per cent
while the number of outlets has been held fairly constant.

EMPLOYEES AT THE END* OF 1955 numbered

prove

30,000

relations

DIVIDENDS IN 1955,

including the market value on its distribution
special in Standard Oil Company (New Jersey) stock,
were $2,403 a share. These dividends were valued at
$78,187,000,
the highest in the
Company's history. On a comparable basis,
a

51,520, of whom about
Standard Oil stock. Wages, benefits and employee
practices were consistent with the best examples of a
competitive business system.

own

free and

STOCKHOLDERS NUMBERED

132,800 at year end. This broad base
ownership extends to residents of every state in the union and
other parts of the world. Museums, libraries, colleges,
hospitals and other institutions serving the needs of many people
were among
those receiving regular Standard dividend checks.
of

of many

This record of

progress

reflects constantly improving ability to

serve our

customers, and demonstrates the

de¬

program

tne

were

1955 for the 62nd consecutive

with

totaled

date of

paid in 1954

re¬

are

arranging
for
its procurement from the proper
source.

(INDIANA)

Report

are a

retail

fuels to act

Civil

contemplate

government will enlist

your

the

(Indiana).

of
for

rehabilitation

and

suffering bomb damage.

any area

The

adequate

will

the

earnings, total income, and total dividends paid to stock¬
set new records in 1955 for Standard Oil
Company

holders

splendid support and cooperation of

THE

STORY

our

employees.

FIGURES

Mobil¬

closely with

1955

1954

$1,814,000,000

the

$1,677,000,000
117,160,000

1953

various retail coal dealers associa¬

tions
itan

the

FINANCIAL:

respective metropol¬

Total income

and to seek from them

areas

Net

their counsel and guidance.

♦Net

CONSOLIDATED

You and the| entire industry of

;

which you are a vital part can do
much to help guard this nation's

security,
to

and

advance

you

effective

creased

utilization.

a£git:asiveixess

Suit

a..d

hard - hitting
sales and promotional campaigns,
together with a real crusade by
transportation
agencies,
equip¬

research,

ment

manufacturers,
builders,
homeowners, hotels, apartments,
and industry, should convert an
optimistic potential for solid fuels
into reality,

the

continue

the

its

Sales and operating revenues.............

1954

Total income

...........

$1,660,343,193

32,636,188

16,195,654

$1,813,954,015

$1,676,538,847

....

Capital expenditures....

ating and general

expenses

net.

other than

those shown below

$1,411,523,765

Depreciation, and amortization of
facilities

$1,347,519,754

87,607,924

ments and abandonments

Federal taxes

per

51,575,756

45,935,491

43,290,000

income

29,471,000

Other taxes (exclusive of taxes amounting

natural

may

proceed

work

of American free

within

$78,210,000
$209,200,000
$2,036,000,000
1,437,000,000
$46.70

274,100
■10,080

249,600

268,100

9,764

9,442

1,855

1,763

1,522

liquids processed, bbl/
day
running capacity,
barrels per day (year
end)

601,500

579,500

587,600

655,800

657,700

612,800

$1,736,000,000
117,400,000

$1,621,000,000
113,200,000

$1,665,000,000
132,300,000

Crude

MARKETING:

49,622,854

44,552,531

Total sales in dollars....

11,987,179

government agencies)
Interest expense

11,301,377

Sales of crude oil, barrels
Sales of natural gas, thou¬
sand cubic feet,......
Sales of petroleum prod¬

434,000,000

393,400,000

367,500,000

ucts, barrels
Retail outlets served...,

234,300,000

217,200,000
30,710

224,700,000
30,900

17,400

1,163
17,550

1,484
17,540

146,200

140,500

142,500

94,130

81,290

101,100

Minority stockholders' interest in net

1,228,709

3,406,021

$1,656,836,187

$1,559,382,079

157,117,828

$ .117,156,768

earnings of subsidiaries

earnings

30,140

TRANSPORTATION:

Pipelines built, miles....
Pipelines owned, miles

resources

the

$68,380,000
$284,300,000
$2,187,000,000
1,574,000,000
$48.48

$288,354,000 in 1955 and $264,952,000

in 1954 collected from customers for

development of coal

other

$101,150,000
$229,900,000
$2,332,000,000
1,701,000,000
$51.46

day,

Oil wells owned, net....
Gas wells owned, net....

all

$1,932

Crude oil and natural gas

retire¬

Total deductions

and

$46,620,000

$2,083

MANUFACTURING:

......

development costs, and loss

Net

$48,780,000

77,195,905

emer¬

Depletion, amortization of drilling and

utilization.

$4.06

$55,970,000
$2,403

PRODUCTION:

liquids, barrels

Materials used, salaries and wages, oper¬

Net worth............,
♦Book value per share...

Crude oil and natural gas

DEDUCT:

gency

Pipeline traffic, million
barrel miles

frame¬

Tanker and barge traffic,
million barrel miles...

enterprise

315

traditions.
PEOPLE:

Stockholders (year

With R. W. Pressprich
(Special to The Financial Chronicle)

BOSTON,

.Catalando
R.

Mass.—Anthony
now

connected

with

Pressprich & Co., 75 Fed¬

eral Street.

$1,729,000,000
124,830,000

$4.81

fDividends paid
fDividends paid per share
Earnings retained in the

1954

$1,781,317,827

Dividends, interest, and other income.,,...

Furthermore,
you
have
my
pledge that the Department will
continue to champion policies un¬

business.......

Interior

applicable fields, such as mining
research, preparation, safety, and

der which the

issued share

Total assets

i can assure you that

Department

will

1955 and

1955

In¬

greater efforts along the lines
advanced

INCOME

157,120,000
per average

for the Years

its

peacetime objec¬
tives by bringing one of, our major
energy resources into fuller and
more

much

can

STATEMENT

earnings
earnings

Copies of the 1955 Annual Report
lasts. Write Standard Oil

are

available

request as long as the supply

Company, 910 S. Michigan Avenue, Chicago 80, Illinois.

end),
132,800
122,100
117,800
Employees (year end)..,
51,520
51,270
50,870
Wages and benefits
$330,800,000
$323,100,000
$313,600,000
♦Adjusted for the 100 per cent stock dividend in 1954.
fDividends paid" include the value on this Company's books of the
Standard Oil Company (New Jersey) stock distributed as a dividend.
"Dividends paid per share" (which have been adjusted for the stock
dividend in 1954) include th& market value of the Jersey stock on date
of distribution.

As¬

library

department.

in
Net

been associated with the Corpora¬

STANDARD OIL COMPANY

Mr. Boero has

bombing.

enemy

Because potential target areas are

Inc.

Street, New York City,

developing to assure that an
adequate supply of solid fuels will

the

Ontario.

now

the

form

economic

present construction program for

sion

Harriman

joint

the

plus accrued interest. The Deben¬ power generating, agriculture and
tures will be direct obligations of forestry.
The
diversified
re-

strength
In 1955, personal in¬
of
the
United
States.
In
the comes in the Province aggregated
opinion of counsel, income taxes approximately $8.1 billion, com¬
presently
imposed
by
Canada prising about 41% of the whole
will not be payable in respect of for Canada.

present

For Investment
Inc.

things, for
in connec¬

other

with

tion

will

resources

The Commercial and Financial Chronicle... Thursday,

(2048)

"*■■■'

■

is the steadiness of the price level
in

Travelling Too Fast?

Since
early
1953, the average of wholesale
prices has shown little change,
This steadiness of prices is, inrecent

years.

Given the short supplies of steel, deed, a remarkable development,
countries, it has been rea- pressure of over-all demand for In
view of the various other
sonably successful thus far; other steel
would
be
eyen
greater trends in our economy during this
countries have had much less sueshould the automobile industry period, including the rise in the
cess,
and their currencies have resume production rates compa- money supply, the increase in
been cepreciating in value.
rable to those of last year.
wages, the advance of transporing its trial

in the world.

run

with the result that lean

of the bright spots in the picture eral business inventories in close period,

Continued from first paae
r

some

step with the rise in sales.

years

Heavy demand for some prod-

Ucts, in the face of possible snortages of supply and rise in prices,

have resulted in some inaccumulation by those
fortunate enough to be able to do
s0.
Steel, cement and copper may
be cases in point. To the extent
that this has occurred, inventory
figures
may
decline' as tkese
may

ventory

April 26, 1956

follow.

rnnannt„

„11vin,

Total Consumer Buying

^ second area where expansion
may bave been pulling at the
seams in recent months is consumer buying. In one area after
another, large consumer purchases
have been felt- Housefurnishings,
do-it-yourself equipment, autornobiles and tourist services are

tation costs, etc., the stability in unusual situations straighten out. among the outstanding cases. But
the price index seems almost too
In hig address before this Con- alTfieids, including clothing, food
England is a case in tion now under way probably re- good to be true.
And possibly ference last year> Mr< Sproul
Capital goods expansion, fleet the maximum influence of this is the case. The steadiness pointed out the danger involved
^ rise, and any decline
prices, excessive demand the tightening of lending terms in the index during the past 18 when expansion causes sections of ^ w Sp 1 LtnmS £

(5) Business booms of excessive
nature

are

evidence

some

In the case of residential building, current figures for construe-

countries.

point.

rising

the development.

(6)

loiis but important

that nebuof

piece

eco-

nomic

equipment which we call
confidence is very strong today

this

the

respect

1930s.
the

Confidence

attitude

reflected

plant

are

early

is reflected

the

now

pole from the

opposite

current

expansion.

in
It

consumer.

plans

for

reflected

outpouring
of
forecasts
for
five, ten

business

the

five

prices remained steady, the rec-

ord of stability would have been
a different story, since many
non-agricultural prices —- including industrial raw materials and
building materials — have shown
considerable advance.

substantial

the

inclination

the

part

monetary authorities

our

who

doctors

have

are

painless

cures

major economic ills

for all

(Our

authorities

monetary

have

been

prompt in declining this generous

distinction.')
These
which

are

some

the

areas

th^ ha^aroonri

form

In
the foreground, perhaps the first
thing to attract our attention is
the

stability of business activity
during the past several months
at the very topmost point ever
achieved

business

our

experi-

The Federal Reserve Board

ence.

The first area which may

•

Perhaps the least favorable area
in tne economic Picture at the
moment is agriculture. For many

scientific methods have

been aPPlied in agriculture, it
has been increasingly inclined to
overproduce. The result is our
current farm problem.
Prices

have df°PPed nearly 30% frAom
the peak ot a few years ago. Ag-

presenT business jlcture

the

Capital Goods Expansion

Agricultural Outlook

years> as

Thus, the general index of
prices has covered up a multitude

Tbe current outlook indicates that
home construction in 1956 is
going to fall only a little below
tne bigb of 1955.
*

Last year, consumer expendiand where some stretching tures increased some $16 billion,
at the seams may be occurring. the
lar^st year-to-ye?r gam
These are construction, consumer since the 1946 rebound from warbuying and the use of consumer
restrictions This rise was
credit It is well to examine these faster thaa that of the disposable
particular areas with some care.
income of consumers. The result
pansion has been great in recent

housing put in place, of price movements. Future price

aPPear in

dp-

people to take it for granted

effective

became

Perhaps it is also reflected

some

that

twentywhich few

anticipate

cline.
in

hence,

years

anv

some

manths ago. Already, residential
contracts are showing an upward
lendency- Figures released by
F. W. Dodge Corporation tor January and February show building
contracts 6% above those of a
year ag0*
Within 30 days, this
improvement in contracts snoula

which

In this country

lnCOme declmed
Many of our previous attempts
t0 fd .the,£armer ,werte 'nltlated
without clear understanding of
the. Problem, and in them applicatl0n> tbese efforts have run
counter to basic economic forces
and thus have tended, in the long
run, to hinder rather than to help,

was that the amount of income
saved has been on the decline,
be
Total retail sales in January and

changes may not average out developing something of this charquite so well. We know that the acteristic is capital goods expangeneral level of agricultural sion. Construction has been very
prices has been approximately strong in recent years. Total pubsteady since mid-January, and lie and private new construction
wHh the agricultural program was below $23 billion in 1949, and
planned for this year, agricultural it totaled more than $42 billion in
prices may not continue to hold 1955. The dollar value of public
the general index down. Also, we construction has nearly doubled
know that the "money supply," since 1949, and the same is true of
as commonly measured, has not non-farm residential construction,
risen sharply during the past year Studies dealing with the relative
(oniy about 2V2%), but it might size of our plant capacity are not
rise further under present credit numerous at the moment, but one
demand. Furthermore, wage costs study recently made ("Are We
have advanced steadily,,, and it Building Too Much Capacity,"

...

d"eKstion ™hethe1' Pro" 5°*?*

ductivity of labor is keeping pace.
>.
i
ce
,
Application of the revised mini- ^lv g®el^ive irn,
fndnf
mum ^e, law *as '"creased capacity relative to our. induswages for two million workers, tr a output, may be quite adeand further general wage rate quate at present
advances are to be expected this
Nonetheless, it is evident that a
r

year.

February, adjusted to seasonal
variations, compared favorably
with the December level and were
some 6% above a year earlier. The

recent survey by the Federal Reserve Board and the Michigan

Research Center

indicates that

consumer buying plans are about
the same as last year. Thus, it is
very clear that the American consumer is using a very big shopping bag, one which may be

somewhat out of proportion to his
income.
Consumer Credit
whv th

has £°""d «

liberally in recent years has been
the increased use of consumer

credU Thjs ,g the thir„ ,,rea ln
which there may be some "stretching at the seams;. Consumer
credit, introduced only a few

very strong further expansion of decades ago, has risen

consumer

eaai^ £° *P*"d

very

fast,

Although basic material prices construction is under way. F. W. During the past 10 years, while
has, for six months, been at the
have shown many irregular Dodge figures for total construe- disposable income has gone up
peak level of approximately 143However, the situation is not movements, the current level of Ron contracts awarded for Janu- about 6%
annually, consumer
144.
without some favorable develop- demand, coupled with uncertain- aJT and February indicate a rise short-term debt has mounted some
Automobiles and Housing
ments. Agriculture was, of course, ties relative to sources of supply of 2!I % over the similar period of 20% a year. In no other country
The two areas nf husiness
the original source of livelihood and capacity to produce, may be J95a* Flant and equipment outlays has there been a rise of such
tivify which have attracted mos't £" America.
In early Colonial; a factor of price strength in (he Mment SfTom" and hi
.
,
,
.
.
;
attention in recent months have oays, a very high proportion of coming months.
ijeparimeni oi juommerce ana tne
Due to last year's boom in busibeen automobile production and °"r population was farmers. Since
Under the circumstances, some
'TTiW* abo"™
In R6.SS 8eneraUy—and In automobile
housing construction. These were ».<"?> agriculture has been de- upward movement in the general
indnYY. the'er E?les Particularly—Uie expansion
the areas of greatest uncertainty
relative size and dur- level of prices this year now
If Mant and eo^ol °f c°ns"mer cradlt last year was
at the first of the year. However,
'"S the last 20 years the number seems to be well within the range ^nt is Ixnec^ed to he U ^ ahead "° doubt exceptional, and an adas the
second quarter gets under ?£ Pe°PIe on £arms has been tend- of possibility. Latest figures show ™feRt 'se^pa"ea„tn°dDf1/^na"e?d vance of lesser proportions would
way,
in neither case has there ing downward.
that wholesale prices of industrial 42<7
I
' seen?_ Probable
for this year,
index

industrial

production

been

drastic

Last
for the

was

banner

automobile

year

industry.

The

decline in production experienced
thus far this year leaves the in-

dustry producing at a rate which
would suggest perhaps six and a
half to

million

seven

for the

cars

rate which compares very
favorably
with
other
postwar
year, a

Sales

years.

far

show

10%

for

the

decline

below

last

year

thus

less

than

Production

year.

have

cuts

been influenced, in no
degree, by the increase in

small

inventories

levels.

However,

situation

which

cars,

probably

now

record

are

high

the inventory
regarded as a

not

great cause for concern by the
industry. Relatively high inventories
of

are

the

spring
of

desired

this

just

year,

season

preceding the
Also, because

sales rush.

the

variety of colors, models
equipment, larger inventories

and
are

now

than

The

essential to dealers

they

were

latest

few years

word

commodities edged upward again
in January and February, at the
same time that the price of farm
as measured by the Department products
was showing more
of Agriculture, has shown steady strength.
This

decline.

year

from

ago.

officills

does

beyond

reason

best

lndUStry

look

year

for

the

the automo-

1956-

heavv

from

technical

skill than ever
before. The simple fact is that
a steadily rising standard of living in this country means that
more

far

this'year,

high level
nppa

itiTi

verv

hieh

and

niv,

ram.

nf"

following the

onai

American
.

immediate

cars,

efforts

our

not

Business Inventories Advancing

referred
i

Total

agricultural

opments

wav

earlier.

to
__i__

•

are

Thus,
j

business

all varieties

the

•

inventories

now

estimated at

hours worked in industry have
shown a general upward trend
during the past year because of
the necessity for using labor oyertime in order to complete desired
production. It is true that many

designed to save
labor, but the greatest saving may
be in the so-called "unskilled
labor" category rather than in that
of trained personnel. The real
shortage is one of highly skilled
laborA and tbo.se with advanced
scientific training.
Evidence of this shortage appears in various places. Pirating
°f highly trained personnel is renew plants are

P°rted in different areas. A recent
^ue of numori
the New York Sunday
runp
nacres

"Tim^c"

C2m(n0n

crinip

knowledge

moreicute

than

^ructuraflteeh

F°°d ?rices

to retail sales- which

0VOT 8 tf

appear

that

one

chasing

agents

have

kept

gen-

Available figures thus far do not
indicate any clear pattern of consumer credit growth for 1956.
January totals for consumer credit
outstanding showed about the
usual seasonal drop from the high
level of holiday buying at the year
end.
Competition among lenders has
resulted in a rather steady trend
toward easier terms during the
greater part cf our experience
with, consumer credit. In recent
months, the easing of terms has
been . halted, and some bank
lenders have tightened terms,
However, we will be fortunate if
no further easing of terms takes
Place as competition among retailers progresses during the
months ahead,
^Experience y^th Consumer
.rias jnow beeri efficient to
make-clear that it is not emerirency financing On the part of
those who use tt, rather as
family s income increases, its borrowing tends to increase. We know

tha^i consumer credrt doesinnot »n
all
involve lamilies
analrases,

the householdi servantsj and services

lithium

ways

We know tha

some userso

consumer ^^^dit havT

various

types of liquid assets ar.d are using
consumer credit for reasons of
choice rather than of necessity.
We also know that the use of

!f^yav tuu^of^hef''tyS^ "sumeTto 'bunch6™"'purchase"
»f capitaYgoods It is! nonetoeless, buying less at one time or another!

In contrast to the agricultural Rous policies on the part of pur- important that

situation, it might

that

thafof 'coppe'r

ij mately $5.5 billion higher than a
With the present onrush of ins regard year ago. Tins rise in inventories, dustrial progress, it is clear that,
W
P*?1" amountlnS to 7% durinS the
almost without end, new plants
now under yearj ;s not greatly out of pro- and equipment may be techno-

General Price Level and
.

°*

lor steady,,u n 1 n t e r r u p t e d
growth, the expansion of Piant
and equipment might be expected
to move forward in close relationship to needs for additional capacity and also in fairly close
relation to available personnel.

Another area in our business
picture worthy of attention is
It is clear that our labor force
business inventories. There has is
largely
employed.
Indeed,

iS ti,™.

into-fo-

f,v»

! }*} Sr^at

treignt

course
,,

efficient units.

the

ohniild

total demand

RanrCoradsearPt0- '
,iti

been an upward movement in
inventories since late 1954. The
we will continue to use a larger risa from the low point of $76.9
proportion of goods and services bURon has been about $5.7 bilwhich are not produced on the bonIn January, total invenfarm.
Therefore, we will need t°ries advanced about half a bilrelatively fewer people on farms bon
dollars
above
the
usual
and relatively more people in seasonal movement, and a similar
industry, trade, the service in- advance
probably occurred
in
dustries, etc.
February. Of the total rise in
Another favorable development January
above usual seasonal,
is the improvement in farm man-' Manufacturers'
inventories
acagement; This is leading to largerf.count for $300 million and refarming units. It is-also tend- tailers', $200 million, wholesale
ing to put less emphasis upon the inventories showing no change.
"family farm" and *iore upon The major item accounting for
farming as a business.
In
this the rise in retail inventories was
latter development, agriculture is passenger cars in dealers' hands,

But

mtnmnhiioc
Of

nsers

ODeratin" at

agri-

g»n add'tvIOnalp ZZiZ? ab0,U! $^5hb},m°\ 0rn aprxi-

Steel Demand
Anart

that

mean

improvement.
Also, agriculture
is now more efficient, more scientifically managed and is using

second

not

culture is deteriorating; it is not.
The standard of living on farms,

too

much

we do not crowd
construction into one

Changes in business may thus be
augmented

changes

con-

Number 5528... The Commercial and Financial Chronicle

Volume 183

buying.

sumer

may

no mere

coincidence tnat the two most
certain

sectors

un¬

business

our

situation at the
year

beginning of this
automobile production

were

and

residential

fields

where

—

personal

borrowing
profusely last year.

used most

was

construction

Consumer credit, in many cases,
a
close companion of
housing
credit. Those who buy a home on

said

that,

for

pects

would

rule

out

new

not

advance

to business pros¬
immediate future,

rule

the

out

and
I

definite
emphasize

make

credit

point that we must be
against the creation of

ment and

automobile.

Thus, to
degree, the burden

considerable

housing debt and
rest

may

the

that

could

decline

lead

ad¬

would

vance.

Donald

the

guard

circumstances, it
surprising that there

sense

should

some

regard¬
ing consumer credit developments.
In his Economic
Report, the Presi¬

Gibbs

how

and

administered

they

would

tion

which
is

throw

the

now

Federal

much

the

view of
of

ture,

ascended

with

the

rate Division of the Trust

Before

Northern

Co., 507 Main Street.

Trust

National

Co.,

Campeau

Richards is

law

peau

ing.

1953

firm

Company, Penobscot Build¬

the

brief

the

keep

boiler.

this

speculative
To

proceed

Stevenson.

and

the

Harvard

School.

^*-v.

AT HOME OR OFFICE

present

AN OVERSEAS CALL

Background is
Berne, Switzerland

should

avoiding
a
any kind.

way,

must

economy

despite

the
exuberance regarding
achievement of the present

feeling
the

care,

level

of - prosperity., For,
after
prosperity is, in many re¬
spects, a critical period, a period

all,
-in

which

cesses

may

seemingly
pyramid

■difficulties

later

small
ex¬
into great

on.

Now,

with industrial activity
stock, prices at peak levels,

and
with

capital

goods

unprecedented
wages and

expansion

volume,

with

other production costs

rising,
with " consumer
buying
still advancing over recent high
levels,
and
with
persistently
strong
bank

demand

credit,

for

the

additional

course

busi¬

ness shows no signs of immediate
decline.
Rather, there may be a

.tendency

crowd

business

much

Thus,

the

authorities
hand

exercise

credit

steady

keeping

situation

The number of Bell

evident, and

credit

months

too

1956.

wisdom

the

recent

little

into

continued

some

re¬

telephones has doubled

straint

by credit authorities does
seem
inappropriate so long
present
conditions
persist.

mot
as

.Current

strong

loan

and,

demand

in the last ten years

very

the

moment, the
-evidence seems to point in the
direction of still greater demand
in the
In

the

future.

near

;

the

face V of

cations,
reserve

•

...

present
banks have
the alternative of (a) refusing a
larger proportion of loan appli¬

scarcity

•

And

reserves,

•

•-

fr:

securities. A large
for loaii expan¬

of jreserveSj

during

acquired

than

past ^ year was
such sales. This "is
the

difficult for most banks

formerly, since

their

short-term

many

securities

have

already been sold, and additional
sales

would

longer-term

have

issues,

from

come

which

losses

might have to be taken.
Under the circumstances, banks

more
selective in
policies at present, and
a
still larger proportion of pro¬
spective borrowers may be unable

probably

are

their loan

find

accommodation

there

present Federal
what point
to interfere
with normal business growth is,
of course, a question for our Re¬
change

Reserve

this

policy.
At
begins

restraint

authorities

serve
*

'•.*.*

•

-• *

•

•:

•

•
.

•••■

•

'■

the world

over

possess.

tistics

They

Telephone Sta¬

are

in such unlikely places

Perhaps it

may

Ascension Island in the South Atlan¬

of the World shows how Bell's

dream of the

j-' f*

THIS

WAS

THE

DREAM

of Alexander Graham Bell,
many years ago

...

telephone become
tool within the

business,
lines and

every

means

see

cbmmon
of every

home. I

see

—

in the next century,

hamlet

the wire fabric."

the tiniest

woven

The United States with

iir1':

than half of

every

three

for every

The

are
as

telephone for
Europe has one
The rest of the

persons.

one

for every

123

cludes yours—is
with

connected

in this country

but with

many

only

many

the Bell

much

many

There
Bell telephones now
years.

grown

in the whole

previous 70

same

time there have been

improvements in

are

well

the speed,

quality of the service.
our

way to

in the days tp

come.
i'lLt V

■

■"

••

t.i

;

•:

fit

the

about

of telephony.

progress

«> >*

of the tele¬

System has

convenience and

millions
I

in;. Netherlands

the major European

in recent

come

At the

fifty-five million other telephones

in other countries.

iii 1945. In the few years since

years

persons.

not

twice

war

Every Bell telephone—and that in¬

into

well

greatest growth

phone has

one

persons.

world has

has

cities, Tokyo, etc.

population has more
the world's telephones.

This country

Guiana,

only 6%

of the world's

its

and perhaps

Not

everywhere, but surely in this country.

the

poles marching thou¬

sands of miles

farthest

Paramaribo

growth, of the telephone ' ;,' tic,

has been fulfilled and ^exceeded.

determine.

kind of business pre¬
diction, we venture out. beyond
the raiatge of human knowledge,
at
least beyond the
knowledge
any

which

•*'

The latest issue of

additional borrowing at
further sale of

.Government

now

they connect with ninety-one million telephones all

the Federal, or by

sion

or (b) building up their
position for making loans

either by

part

"itr'i

BELL TELEPHONE SYSTEM

Law
.

re¬

the

Knecht

Chicago
Cushing,

Knapp,

and

pic¬
having

And

the

with

the

that,

blowoff

this,

with

major points

Depart¬

Northern

1950,

business

hill

graduate of the University of

Michigan

high level of business, the Ameri¬
can economy sail has much steam
in

The

associated

Hershberger,

with R. F. Cam¬

now

Company

was

DETROIT, Mich.—Robert E. P.

LaSalle

and

Bank, Chicago.

joining

■

(Special to The Financial Chronicle)

Illinois

Knecht

via their Grand Rapids of¬
■

Joins R. F.

Trust

ment.

Trust

with

of William

Assistant Secretary in the Corpo¬

Reserve

this

evident

the

election

Anytown, U. S. A.

of the

some

interest

cago,
fice.

basis

securities

members

direct wire from Detroit to Chi¬

undertaking should
additional light on

the situation.

are

Stock

Exchange and
Midwest Stock Exchange and have

Co.,
He subsequently be¬

question. The review of the situa¬
Board

investment

They

Detroit

Trust Company has announced the

enforced

and

the

Co., of Chicago, Standard & Poor's,

Adrian has been added to the staff

dent has asked for stand-by con¬
trols. What these controls would

associated

Merchants

affiliated

came

WORCESTER, Mass.—Robert V.

concern

became

Chicago.

(Special to The Financial Chronicle)

Illinois

the

Gibbs & Co. Adds

view of all

is in

general

business.

Vice-

former

Co., conduct

the

when

shoulders.

Mr. Jones began his training in
investment business in 1928

the

next few years.

consumer debt

same

Jones,

CHICAGO, 111. —The Northern

McDonald-Moore &

Muskegon,

ley Union National Bank, was ap¬
pointed Manager of the office.

excesses

within

until Jan. 1, 1956.

President and Trust Officer, Hack-

substantial

business

West Western Avenue,
Mich.

Appoints W. G. Knecht

Hackley Union National
Bank,
Muskegon, where he remained

MUSKEGON,Mich.—McDonaldCo., have announced the
opening of a branch office at 329

that prices may break away from
the general level of the past few
years

dent and sole Trust Officer of the

Moore &

possibility

frequently need credit for
the purchase of
furnishings, equip¬

business

fore the end of this year. Neither
would

Northern Trust Go.

tional Bank to become Vice-Presi¬

Opens Muskegon Office

high point be¬

he resigned from the LaSalle Na¬

McDonald-Moore & Co.

the

(2049)

Bl,

further

■

The Commercial and Financial Chronicle ... Thursday, April 26, 195t>

(2050)

Continued J
from

which a top applying for his first
Ph" D* can hardly ex"
when

vaae
y
1

pect
m

mAllVltllflV Pfira PrACCnrAC

•

teaching

position,

with

Expenditures in the economy, The bedeviling aspect of the situacapital tion,

particularly spending for

building goods,

have

spiraling

however, is that the

measure

effect, of success in attaining the economic

Conifont fnd equip?ei?J S^°ftaPS^e na~ Wage and jalary payments rise security goals will increase the de-

iTAUUillliiy I live 4 ICdilliiva vvilll Vlift tion cannot afford to twaddle any and, if spending remains high, in- sire to possess present rather than
we
longer. A properly drafted bill, creased consumer expenditures future goods The more secure
An EYYiaVlnfflfT Frntinmv
with adequate safeguards, should constitute new demand which, in people feel, the greater will be
fill AMVAll 11 IIIM UVVAftUlftftjr
overcome much of the opposition turn, may persuade producers to their inclination to spend and the
to federal aid to education.
Said
m

•

expand their facilities still further

rate, particularly when the severe
demands of labor shortly to be
made

the industry are con-

upon

sidered?
steel prices will be raised

That

thic

mncirWahiv

expected
be

unable

the

agree

thinks

rather

than

timing
Weir,

Mr.

prices

steel

right

raised

ought

seems
the

announcement.

example,

for

industry

The

vpar

now

after the labor-man-

Walter Lippman some time ago: and so we drift higher and higher,
"We must measure our educational each turn of the spiral re-inforceffort as we do our military effort, ing pressure on prices.
That is to say, we must measure
aluminum plant 12 miles away, it not by what it would be easy
Consumer Expenditures Act
Other aluminum plants are and convenient to do, but by what
on rrice
scheduled to go into the southern it is necessary to do in order that
Consumer expenditures, the
Ohio area.
the nation may survive and flour- fourth variable which helps to
' The capital goods sector of the lsb * *,' we have no time to lose." dete^ine the snze of the natmnal
economy is moving right along to
Better airports and airways, ^come, are siay g nign lney
new records. Aluminum will have higher social security and veter- afe too n gn. dt
y^co tmue at
belt. Olin Mathieson is
reportedly building a $60 million
power plant atop a coal mine in
West Virginia to power its new
conveyor

J&epresent.rate, cons: dering the
greased e penalty es ot governj^ents ana^ dus ness, s ima tiai
P"ce increases await _us. rne nais^making l^reas ng demands
"P°d
° ^ ™
'cil iS,™
programs can largely be financed demand, it would seem, an addi™a T,a i?.J:iinJ
,7™
by the sale of senior securities, tional $5 to $7 billion in the 1960's. they wn ba ^
d< outnut^In
But many firms in various indus- Our increasing population also re- roads taken tcimcre^ output mu

less problems in financing

its ex- ans pensions and extended health

negotiations will have pansion than steel will encounter, programs, a soil bank, and oodles
been completed in regard to the The electric utilities are in good of things we need and/or want
new steel contract. A strike, needshape. Many of them have over will spell higher federal expendiless to say, would increase price the past few years improved their tures. The nation's reserve forces
pressures under economic condi- equity ratios so that construction and guided missile program will
agement

tions
the

them

encounter

present time.
statements

Financial

major

steel makers now indicate a value
of

$60

about

ingot

ton

Per

We are told that one
capacity added to an in-

capacity.
ton

steel

tecrated

$300

ton

$60

steel

the

To reflect such steep
the hike in steel

companies.
cost

the

capacity

which
books

the

come

with

contrast

ton

now

will

plant

increases,

be sizable,
Last summer, they were increased
by $7.35. More recently came the
additions, the extras hitched on
to
steel amounting to probably
another $1 a ton on the average.
have

will

prices

Freight

Increased

Rates

steel

round

price

be levels
"mental
^ not enQugh frejght cars
e s.
built then building npw
financial statements which
In a sens , we are trapped. Even
plants will temporarily make
will show the disappearance of with full realization of the present sleel Plants win temporarily maKe
working capital into fixed assets, inflationary implications, it is dif- even less steel available
For many a product, there will be ficult to see what else can be done.
The veil of money hides the
a price increase ahead.
A rapidly increasing population really important economic proc-

"®p¥°™da7°n7nT7ere 7lL

Some
creases

of the coming price inwill have their roots in raw

materials

shortages.

The

copper
shortage in this country has been
eased by Anaconda's decision to
price its Chilean copper at the
London level. A recent 3-cent hike

result

the

S-

England
price discrepancy was
that
two-thirds
of
Anaconda's

around, Chilean output was being sold in
of course. That phrase, however, Europe.
Many a U. S. fabricator
needs elaboration. The railroads will now pay 53 cents a pound.

bring arfothir'S6 mUl.roaneSin
The
The

drawer
drawer.

revenue
revenue

Inter
Inter-

will

savings

The

as a new push toward even bigger

and earlier pension demands

Labor Economists and Wages
Ann„ot,.,ir

. ,

pavrolls of

labor^gan?^T

their bosses on fundamental
nomic processes

eco-

Their ratiocina-

tions geem to be nule elge than
high-sounding phrases in support
Qf the demands of their bosses
wbich were earlier made without
their benefit in cruder terms. As
£liot Janeway so charmingly put
in a recent article of his in "The
Iron Age"; "Labor now has
en°ugh economists on tap to be as

p00rly onented toward the trend
as business."

The dm of the boom is drowning

out the quiet, but persistent demands for increasing savings so
Pniov

tnmnrrnw

without savers being rewarded bv
being repaid in c o n t i n u o u s 1 y
smal«er Pdollars AHer all> they

SCTvmes^ The Le^I'iu^t look atthetotal™utput are onIy three groups in society.
PaI!,ber o? birth, k rumine at the 7 e7ds (and s7vic7) otherwise ie" those who do the work and
"ecord rate of o^
kn fZs the g77na ti'ona In7rf those who are either to° old' in"
^
The U ¥ Bureau m the uct
From thf oile of goods an
capacitated or too young or still
r„nsus medfrts' a' nonulation
of nimllv nroduced
certain dedfie
in the training process to help in
asus precblets a populat on of nually produced, c rtain deduc- the production of goods and serv1975 anvwher^ between ment Tnd plantfacilitieswifaroStices- « more money (more claim

2??
The

creases? Higher prices all

the
the

lx!

jected expansion, lnere will oe

million

228

and

Americans

Fire

^ks to goods and s.erviees!)

eoual

to the

pooSon North
777771^ 77

the States

and
he

A rapidbv rising

|r0un

tees°w!u"^lulte^or^nl

™dIOtu
tween'

7ndwUlhave1obe replaced

and flood losses must be made up.

wil1 rub elbows-

in-

shortage

many

price

What will be the effects of another

SrunTa S

increased

tries will have t,a do some scratch- quires

smaller

higher living standard acts then

the ™rki"g gr°up- Under c0"di'
tions o£ high employment, the only
way " and the other tw0 grouPs

s^mD^on DmDO^

defense Hems

nfHpfeni Tnd

Thev

tee

the net exnorts

civilian

goods and

slrvfcls wfth oul raoWlv increas-

7pu7{!7

oldcly

can

then there

less left for

have more is for output to be

inereased- That eannot be done

?fficially sported raw mate- ^u?alten accompanied by a rap? 17g
in
to keep unless, through saying resources
prices are one thing. Those jdly rising per capita standard of the per capita standard of living are
??a additional that can
by desperate man- liv|ng
simnlv
forces
increased risine more of our available re- Provlde
this available output,

actuany paid

in thp erev markets arp
nving s .p,y Iorte? incieasea rising, more 01 our avaiidDie re ^ ^ takes time, a little patience
agements in me grey marKeis are governmental and private spend- sources must be used to turn out
lt\
f f
agaiJ1 another. Nickel has re- |ng One can but agree with Pro- capital goods which will make to- a
What
still ?ently brPuSht five times the go- fess0r Sumner Slichter's statement morrow the goods that you and I
processes
higher stppl nrices?
ing rate in the grey market. Our that fiscal policy "is an enormously want. As I have stated earlier, savin&,
nigner sieei prices.
Defense Authorities have tempopowerful instrument for stability 1956 apparently will show a 22% Prices have already risen all
A
sixth
postwar
increase
in rarily come to the aid
of such jf the country can only learn to increase in this type of expendi- around us. Building materials of
freight rates will lose the rails metals as copper and nickel by use jt." Facts are on his side when tures over last year. To that ex- all types, metal containers, steel,
a
lot of traffic. By 1954, when postponing
and diverting ship- he says that "the state of the tent human and material resources aluminum, copper, nickel, some
freight
rates
were
about 80% ments from the nation's strategic budget in 1947 and 1948, and to will be taken away from consump- grades of crude oil, outer and un-

Commission

Commerce

state

^4nn million
will ^he roads do with
hv

revpnue

a^°iYre
of World
i

mTT

War II, the rails

understanding of fundamen al
and, above all,

vear

hauling

freight

intercity

afyprnpnt<;

trv

nniv

vioidoa

had

stockpile.

Such moves can have

a temporary effect on prices.
The recent increase in the price of

only

}arge extent in 1949, was more tion purposes.

due

to luck

There

can

than wise planning."
no
doubt that "in

We tend to over-

look that factor.

der-clothing, shoes, furniture,

washers, dryers—the list is as long
There will be more

as your arm.

prime aluminum too will have its the boom of 1953 and the recession
Importance of Savings
increases. Some of them will be of
repercussion Wherever one looks of 1954 the net influence of fiscal
After replacements defense and the spiraling kind,
had jumped to above 19% °f the there are threatening
or
actual policy
was to aggravate both net exports and capital goods diUnemployment remains low for
intercity freight business. That price increases. The contemplated the boom and the recession." But version
what
remains
left
is this time of year. The extraordiwas
a
gain of 90%. Waterways, record expansion in the nations his prescription is a tough one.
aVailable for consumption
Any nary year-to-year rise of people
dipped below 50%. During the
same
period the truckers' share

IfnTf' t00k m0St °f the re" Activity facilities is both Professor Slichter feels that "the
,

matter

railroad

much

how

cause

and effect m this picture, problem is to persuade the people

To expand facilities takes, for ex-

presidents will complain over the ample steel. This makes less steel
alleged unfair advantage truckers available for others a"d hence

i^ve'j?eYen4.u 5y

0f the

country to insist on mod-

erate budget surpluses in times of
high employment and rapidly ex-

^~y, be it our free
enterprise system or the

private working and looking for work

Russian means

that the so-called emerworkers, older workers and

only
have
tomorrow by taking less to-

married women, have already

day.

That brings saving into the

been drawn into the labor force.

totalitarianism,

can

gency

aPp£ec.ia£® Price strained. The are t at of in- the wisdom inherent in thebow to picture.' Another word for saving Only the jobless are left for rerelaihons!hips income niuch panding output." After a utterclimbing freight

js "non-consumption." When peo- cruiting purposes.
Many of them
dividuals is increased because of ance, one still wonders to what ex- ple savP directly or through in- won't do for the tasks that busithese business expenditures for tent our rapidly rising population stitutions, they do not demand re- ness has available for them,
trucks.
General
Motors is now new plants and equipment. This, and a postponement in construe- sources which can then be diDrframVpd
lahnr
so
far
an
showing off its new air suspension in turn, increases the demand for tion, with the ordinary allowance verted and used in the production narentlv
has
not
received
its
tractor-trailer combination. The consumer goods and hence puts for human folly, have made it im- of more macMnes
wor h
all the Ph

fact

the

costs

that

will induce
to

firms

use

and more

and

and^onstmc- fnoney^
f?om
will then to- d.'s It hired
from the acahnsp? ^wilSl° makeS tUnirk^Seeven expanS10n'
increase public-expenditures.
morrow increase the supply of demic professions at salaries the
SVniliS
ran? Demand for More Government
Nat far?lgn. mvestnaent, the consumption goods. We can call latter could not meet. To quote
If
Spending
thl,rd capital expenditures and gov- that the sociai reward for saving. ;agajnmissed thp Janeway: "Labor
va"able ln addition to prieconomist 1954 unturn and
It should mean
reduction of
p
u s
vate
6
maintenance
costs and
an
inGovernment expenditures are ernment spending, will show a
The American public has been • •
We l»S4 upturn ana
creased payload potential for the going up.
Not so very long ago continued'though modest uptrend, educated along many lines some InAed _to tntst the 1955 upsurge,
trucker and less packaging ex- qualified observers thought fed- Again there is little else we can of }he™ o£ distinctly doubtful so- Consequently, 1956 is duetto see
penses for the shipper.
eral expenses could be brought do. This country is being forqed Pal value. It has as yet not been another Operation Latch up in the
Higher freight charges also af- down to around $40 billion a year. into a participation of the devel- taught the reason and need for in7hn7wiil'make on77tees?
feet
the
location
of
industry. Now we are spending at the rate.opment of economically underde- creased saving when the economy which labor will make on business
Aluminum fabrication is thought of $65-billion. Highway expendi- yeloped countries.
The status of ?s booming. Attempts to do so 'bis year will be
g.
ywU
application of the air suspension even more steam

With

™

behind industrial

possible for us to do anything but

tion.

These

goods

away

ftp

•

■

tures will probably quadruple before long. Public housing, largely

international politics dictates such

change in the form of loans, will register
of the increases. Flood control is poised
aluminum industry is developing, for a big increase in view of the
With
higher freight charges, recent New England and Cali-

only leeway remaining is the possible division between public and

consume

aluminum
year

ago.

the

about
1960

50%

than

did

An interesting

locational

pattern

C0Urse

at this time.

About the

priVate participation in this task.

the total effect on the
Western hydro-electric power at fornia floods.
A quick thaw and economy is concerned, there is lit2.2 mills from Federal dams no warm rains no\v would make such tie difference.
If the services of
As far

longer
possesses
its
quondam demands even greater.
technicians and capital goods must
competitive advantage when
The Federal Government will be set aside for people residing
management considers the cost of have to make funds available for elsewhere, then the use of these
transporting finished goods. East, education,— from kindergarten — goods and services is denied to
Kaiser Aluminuth is building a through the universities' graduate Americans.
The activities in the
new plant near Ravenswood, West
schools.
With university seniors foreign field will, however, in-

have been> as a rule. s0 bad as t0 g a
'f way 0 a
p ce
insult the intelligence of a men- .pressures.
"
tally retarded child age 10. If the
Wliat is also astonishing is the
economy ..continues at its present small publicity given to the ef-

minimum wages
of March 1. Rerevealing here.
Labor Standards
experience the price-wage- Act went into effect and no
Pfice spiral.
covered employer could pay less
-The tragedy is that everything !han 25 cents an hour, with that

sPeed and in its present direction
and if saving does not increase,
the Pressure on prices will become
substantial. Then once again shall

desired will be there if only the
demands for it would be better
timed. Our people want more ecoVirginia. The needed power will being offared considerably in ex- crease our national income'though nomic security. Since such secome from a nearby plant of Ohio
cess of what a primary or secondreducing available goods and serv- curity acts also as shock absorber
Power into which is to be fed coal ary teacher can look forward to ices.
Pressure on prices is thus to the economy, one can hardly be

from

mine

over

50-mile long

after years of

teaphing or a salary made stronger.

fects of raising
.to one dollar as
cent history is
When the Fair

minimum gradually rising to 40
cents by 1945, inflation and boom
.times nushed uo wages faster than
.

ttus graduated rlse- Again in tne
early 1950's, inflation arfn rising
against such demands in principle, money wages robbed the new

Number 5528 .AThe Commercial and Financial Chronicle

Volume 183

minimum

75-cent

wide-

any

Secretary

Mitchell

Labor

points

farms

spread impact on the economy.;.
said the other day that, as far as

the

decline

down

—

600,000

between

(2051)

"Insurance World" is planned as
a

permanent

and

definitive

ex¬

1950 and 11954. That is twice the
planation of the operations, com¬
decline which occurred during the,

position, scope, opportunities, and
five-years.. Professor appeals of the insurance industry.

he could see, the jump to$l "is preceding
going to be absorbedwitha great Block* suggests as /answer, to the It 'will feature articles by out¬
deal of ease." He added, however; farm ^problem a price for farm standing scholars, governmeht of¬
that the "most bothersome" area products that will vary "with the ficials, and insurance executives
size of the eurrent crop in such
on
all aspects of the insurance
for some employers would be very
a way, that the net return
frpm a business. The groundwork for the
likely the problem of maintaining
large crop or output of any prod¬ project is now
skilled worker* pay /differentials
being laid. It will
uct is a little less than from an
for those already making more
be financed by companies desir¬
average crop, so that there will
than $1 an hour. One can only
ing to support this venture and
be no premium on a larger out¬
marvel at Mr. Mitchell's sense for
to derive their share of the bene¬
understatement. An author of a put."
Dr. Black is a realist. In an fits from it—-i.e. through adver¬
widely used economics textbook,

which will, I feel sure,
make the editorial page of

not

one

article in -the current issue of the
American Economic Review he

the
Journal, cautioned says: "Many farmers will say if
asked: 'Labor is grabbing all it
sometime ago that should labor's
can get* Business
always has been
pressure
for
higher
minimum
able to get pretty much what it
wages succeed "we may see" a
wants. If we farmers don't grab
more revealing test of the effects
the
same
way,
we
are
being
of minimum -wage legislation."
U. S. agriculture did a
1956 might well provide such a silly.'"
wonderful job during the war. It
test.
•is impossible to maintain an agri¬
More Credit Restraint Required cultural machinery geared to feed
Wall

Street

Continued pressure on prices is

certainly today our number one
economic
problem.
Either
the

Treasury-Federal Reserve accord
is showing its age or somebody
is staying out a long time for
lunch with the boys. What would
needed

seem

little

tightening up. Mr. William McChesney Martin, Chairman of the
Federal Reserve Board, said on
February 7th: "I don't know what
business is going to do in the
next

three

four months

we'll

hard

sometimes

watching

it's pretty

which

know

the wind is blowing." I don't
imagine Mr. Martin would say the
same Words today if called again
before
the
Congressional Joint
way

Committee

the Economic

Re¬

public

Copies

relations

purposes will

desired
and

for

publicity

be sold in bulk if

ordered before the printing.

In¬

quiries may be addressed to John

There

are,

many

course,

other problems that in the inter¬
est of smoother economic sailing

future

the

be considered

"It's

tion:

efficient

some

farmers

cupations.

into

the middle-sized firms

the giants in most

rivals

With

all

prices,

the

What

their

hear

has

been

the

other

the renewed
the*

the

ball

game

listed

were

Stock

York

For

private enterprise so¬
ciety then will have gone down
the drain. Price competition is as

ence

to
our

the

type of society as is

to us. Many
been made upon the
oxygen

not

and

exist¬

continued

all

inroads have
price system

them

have

come

the

are

other criteria far more

than the

one

mentioned,

What I have said

;

basic
;

far does not

Buerger,

Ladet

Radinsky,

Inc., First National Bank Builds

Treasury

ing, has been changed to Central
Securities Corporation.

Randolph Burgess, Financier John

reports the

operations in 1955
Manufacturers oft

150,000

1,432,911

907,858

4.12%

2.75%

2.74

1.77

489,826

460,624

93,230

648,692

553,696

1.30(*)

1.20

period adjustments
earnings for the year

Percent of sales
Per share of

common

stock (after

providing for preferred dividends)
Average number of common
shares outstanding
Dividends

paid:

preferred shares

common

shares (plus

stock
•

dividend in
Per share of

1954)
common

stock

paid in
51.8%

common

Per share of

common

14,308,086
18.71

18.67

stock

21,099,110

20,344,245

40.00

Shareowriers, investment at end of year

260,932

14,584,123

Working capital at end of year
Per share of

71.2%

690,989

dividends

Earnings retained for the year

40.90

stock

of out¬

ning

c o

Current assets ratio of 3.3 to 1 versus current

and

surance

to wag

1956.

Copy of
Annual Report
on

John

en-

Neumark

"In¬

World,"

the

fall

'
,

One hundred and

copies

the

circulated

free

fifty thousand

magazine
to

will

approximately

half-million

dents

held in 1951
similarly held in 1953.

/•/$,

sizable

t it led

1955 and 1 share for each 50 shares

stock for each

.VN

pub¬

magazine,

liabilities.

(*) Plus stock dividend of 1 share Class B common
20 shares Class A and of Class B common stock

unique

and

male college stu¬
leading colleges and

universities throughout the coun¬

try.

500,708

192,000

Provision for income taxes

Prior

num¬

standing

$33,047,830
1,258,566

1,026,260

Earnings before income taxes

lege students about the insurance
business, to clear up prevalent
misconceptions, and to
- »r'"sTy"%

accounts

1964

$34,788,765
2,267,171

Sales, less returns and allowances

In order to combat the general
of knowledge of most col¬

lish

Juvenile Furniture

1965

lack

ber

Storage Batteries
Primary Batteries
Compressed Gases

INCREASE BY OVER 50%

Net

attract

Equipment

Alkaline

WHICH SAW EARNINGS

Percent of net earnings

greater

Dictation

YEAR

Instrumentation

Editor of "Wall Street 1955."

apply to agriculture—a relatively
declining industry 'though playing
trying

President of the New York
Exchange Keith Funston,

A GROWTH

College Students

Ihe role of the tail that is

the dog. Today agriculture
for about 10%
of the
U. S. labor force. 20 years from
today, that figure will be about
cut in half. In 1910, nearly a third
of the working population were
farmers. Dr. J. D. Black, Harvard's
eminent
agricultural economist,

DENVER, Colo.—The firm name

Stock

results of

the

governmental side. .1
lege graduates'
find
it
extremely
difficult* to attention and
agree with Time when it says, interest to the
speaking of the General Motors insurance
Corporation: "Ultimately, the cri¬ business, the
terion of monopoly is whether the Yale
Daily
consumer is hurt." Surely, there
News is plan¬
from

Now Central Sees,

Baruch, President of the Federal

Exchange., The

essential

far greater success and more

distinguished endeavor.

Reserve William McChesney Mar¬

times the

were

Yale
boys planning complete
compendium explaining insur¬
ance
industry's operations and
opportunities. Idea stimulated by
J. A. Neumark, Class of 1957,

circulation, will

market

Insurance Information

made to
on
the
economy? Have they impeded the
functioning of the price system?
When price can no longer act as
the
impersonal allocator of re¬
then

Wall Street 1955

"Wall Street's" circula¬
tion was only 10,000 because it was
an unprecedented, untried venture.
Itr contained articles by Secretary
of Treasury Humphrey, Bernard

Secretary

editors feel "Insur¬

oc¬

economy.

these mergers, primarily
effect
multiple
sales,

sources

free to students in the Ivy League

The

World," with

pressure

stock

million

100

New

over—the

ance

publication*

highly pleased with its

only marvel at

one can

failure

billion

some

effect

results.

colleges.

Under

were

that

during a month. Today,
the figure is less than half of that
amount. In 1929, a little over one

smaller

and

higher than it is. After
all, there is a tendency for the
prices charged and paid in com¬
petitive, unregulated industry to
follow the
lead
of
commodity
prices and stock earnings, divi¬
dends, and prices tend to follow
industrial prices. In 1929, a little

week goes

advertisements in the

symposium,, "Wall Street 1955," a
highly successful and acclaimed
160 page publication distributed

tin,

request

th$

banking and brokerage firms took

recently

editor vof the only other industry

to be even

industries have

hardly

don't
V ."

merger

over
.

was,

large and outstanding investment

Neu¬

point
of
view a fixed parity plan becomes
an economic absurdity.
From

been able to develop competitive

advantages

mark, Yale '57, who

of the less

need

taking the beating

are

publication

John

other^

many

Most

pain-deadening

as a

device to transfer

Among them:
trust
policy?

that

the

for

with

and

notables.

every consideration, but he must
appreciate the fact that aid is to

looking into. other day, listing on the Big Board
What is out anti¬ moved above the four billion
toward business? share mark.
toward labor? Should a graduated
The Wall Street Journal quoted
corporate income tax be enacted
recently an official of Boston's
as, for example, provided under S. D. Warren
Co., paper manufac¬
H. R. 9067? Apparently, there is
turer, as having said: "Business is
considerable sentiment among
so
good it almost scares us."
many businessmen for such a tax.
Somebody
ought , to
give
the
A lot of corporation presidents
gentleman a cigar. Business is so
are saying privately what Wallace
good, it should scare us at least
R. Person, President of The Emer¬
a little into restraining ourselves
son Electric Manufacturing Com¬
in the demands we make on the
pany, said recently for publica¬
in

idea

Whitney

business

half the world under present con¬

traded

Other Problems to Watch

The

originated

Hay

ditions. The farmer is entitled to

over

port.

tisements.

Neumark, 202 York Street, New
Haven, Conn.

The Edison Central Research laboratory

completed in 1953 will presently be increased
by 40% in size and 30% in personnel.

The Commercial and Financial Chronicle... Thursday, April 26,

:<2052)

additional

The

for.

Continued from first page

million

expected in the next decade make,
the

problem more acute, espesince
such
construction
projects are time and money consuming. Government demand for
these purposes should be an important stimulus for years; and
the same applies to defense ex-

-daily

Outlook lor Business and
The Securities Markets
simultaneously or enjoying material prosperity at the same time,
ihere have been "rolling" correc-

cycles of dif-

in which the

tions

operated

have

industries

ferent

Al-

independently of each other.

industries may be
depressed at a given time, other
industries may be enjoying great
prosperity.
This is a major
change from the earlier over-all
though

some

"boom

indications

continue

will

that 1956

are

this

On balance, it is

pattern.

newer

cycles,

business

bust"

Present

probable that over-all business
activity in 1956 will average out
slightly above the favorable 1955
year. 'While the general indexes
of production and sales may be
the same or only slightly above
3955, the individual components,
show

varia-

interesting

some

tions.

;

for
productton and sales, the nature
size

outlook

the

demand

principal sources
be

must

determined.

The major

components of demand
consist of (1) consumer demand
soft goods and

lor

greater purchasing power
unless offset by increased living
costs. It is believed that sales in

mean

1956 will only very slightly exceed 1955, as workers are expected to increase their rate of
savings.
The outlook for consumer purchases of homes and automobiles
is for lower volume. However,
the building industry has shown

du-

consumer

this

weeks,

cent

lower

somewhat

may

year

surveying

and

scheduled to start around the
middle of the year. It is probable
that
there will be substantial
wage increases granted to avoid
costly shutdowns. Several recent
strikes, notably the Westinghouse
fiasco, have proved the economic
waste to labor, management and
the public when a strike is
called. Ordinarily higher wages
and greater disposable income

standard pattern.

structed

and

towards larger units,

the tendency

value

dollar

the

Therefore,

costs

increased

are

con-

ssurswiftsrs
longer term,
the

over

automobile

which

industry,

has

fonhing ^ home„forming
of the population—(those

group

The

1957

Last ^year >

savings were abnormally low amounting to only
about 6%
of disposable income
instead of the more normal 8%.
Since

disposable income is that
potential purchasing power which
the

spend

after

a
',

tfreatpst

™
w»s

reHeeteJ^n

eentnmer ii
consumer ex-

rise

utilized

the

purchase

Total instalment credit

cars.

outstanding has reached $36 biliion

all

lion,

timn

hicrh

all-time

considerably

and

high

the

over

and

past

year.

This fact nas hpen 01 considerable
lnis tact ha<? been of considerable

concern

officers of leading in¬

stitutions and the

nation's finan¬

cial

amount

leaders.

in itself

the

The

not

dangerous in proportion

amount
v

able to

income

avail-

which to

with

consumers

mmt^^fredrb™sSch
required by such

ments

a
a

hfavv

heavy

instalment debt. The ratio of 13%
is

far

not

torical

however,
that
lat

net

rate
V

The

reduction

i0Pbe

pected
biiHon.

~~i

"b"

sales should
lion

!•
ilon

unitc

$18
,

decline

consumer

ex-

Why

—-----

decline

^
the

one

1955

-----

mil-

all-time
,.

balance,

consumer

neutral factor for

that

$32Vz

approximate 6V2 mil-

umts from

peak*,
a

expected that auto

f;s'/

is,

the

demand

definitely

debt

increased

con-r

(on resiby $13 billion

Fortune' (April, 1956,

points out that mortgage

Jin Sf

huge

about

190

above the

26%

This should
increase

mil-

present

result

demand,

a
based

from

consumers

production

was

and

industrial

stimulated by the

of inventories jn
all lines.
However,

practically
the increase in inventories (at an
estimated five billion dollar annua, rate) was less than the increase in sales, and thus the overaI1 stock-sales ratio actually has

to around 1.58
exception is the
automobile industry, where
in¬
ventories are high.
While de¬
mand
should
continue high
in
1956, it seems likely that inven¬
tory increases will no longer be

declined

ah
au
for

- slightly

The major

factor.

important
nersnective

However,

lack of continued

forPe/spe£«ye,lacK oiconunueci

of $6.2 billion in corporate capital
exnenditures

from

d»iE

farm

prices,

Government

panies

major cusindividual comimportant source

government,
of

many

and

demand generally, shows no
sign of reducing its spending. The
normal expenses of government
continue to rise.

nearly

doubled

Foreign aid was
in
1955, rising

from

$2.4 billion to $4.6 billion
reflecting the unrest in the Far

billion to East, Near East and the continuu^li-1925 to 1929; ing cold war. No major change

$45 billion to $89 bil-

wage

caiP

the

price

of
01
structure

world price level, has been tending upwards towards

a more uniLead and zinc, the
other
two
primary
nonferrous
metals, have been in strong de-

versal price.

negotiations, road

are

inadequately

the

level

and

direction

earnings.

Corporate profits last
year totalled $22 billion, a sub¬
stantial gain from 1954, and about
even
with the previous peak in
v—

likely that

appears

year will
raw ma-

not fully

passed on in the form of higher
prices. Thus earnings comparilater in 1956 will not show

sons

the same favorable gains over
last year—and for the year as
months, with demand for funds a whole should show little change
very high, and the banks'reserve from the satisfactory 1955 results,

P°ftion «£>*•,
™oney .mar"
kets are n6t likely to experience
an ,eas.lag
rates' i" (?.ls con"
text> the
authorities apPear a«ain to be taklnS a ,m0r«
aggressive position to counteract
inflationary pressures. This was
manifested by the recent action
../!»««<.■«*
ihereasing the bank /4ionmini •'otn
d^count rate
\th of 1%-the fifth increase
over the

The recent Increase in stock
prlces has been paraueied by
higher earnings and thus the
price-earnings ratio currently is
around 12.3 to 1, not a danger
Ieveli but weu ab0Ve the lows of
recent years. Accprding to the
«.Book of indices" this data may
•
be summarized as follows:
Price-Earnings Ratios

past year. The banking
borrowings
from
the
Federal Reserve in recent weeks

system's

At 1937

high—-n1/^ times

1942

low—7.6 times

approximated the peak of early
1953, the highest in years. Thus

1946

high—26.9 times

no
over
.

expectej

u**™

shorter term

recent

bank

increase

and
the

flection

the

form

From

through 1953- -between 7.3 and 11.5 times (in his-

(if
perhaps
not
"very
easy
money") has become an accepted
economy,

present day man"
,

which applied for most of the period from
October, 1946, through 1955. The
rise in bond yields has brought
them to a point where the "bondstock ratio" provides a much
lesser yield differential in favor
of stocks, than generally has been
the case for the past nine years
Bond yields now are about 75%
of equity yields, up considerably
from the 50-60% of equity yields
a

few years back.

Stock

yields are not down to
the extremely low yields which
preceded the 1929, 1937 and 1946

norsnective

t?n?aA

area

pJrspecnvc,

area

stock undervaluation),
Beginning of

BelSXf

slightly

prices. On the other
much greater tightening
be expected. Easy money

1948

torirai

1955

14 9

195fi

timnc

"199

j^fs cSded th^Tthis imnor^

lower bond

been selling in the United States of basic undervaluation
pound below the

Perhaps
the
most
important
single determinant of stock prices

the tax rate was
lowf.r- Thus far 1956 corporate
profits have ran weii ahead of

per

are

likely to increase dividends,

hp^hr^" P*#** margins later this
shrink reflecting higher
ket' inclucling treasuries, nas re1
suited from the great expansion terials and wage costs,

was

for 3c to 5c

factor

f* J950' wh^n

market declines—but by the same
token are not close to the yields
to future advances in production which prevailed
during periods
and sales, the present situation of stock undervaluation in each
provided does not necessarily follow the of the years 1948-1953 when at

high throughout 1956.
The-tive impetus iri the months ahead,
wage pattern will take shape in The 60 million
cars now on the
steel

fhp

raised IV2C a pound;
steel is expected to be raised in
Stock Market Outlook
the near future followed likely
xne
near
iuiure
iuuuwea
inxeiy
^uauuiouyc, ^ intrinsic value
Quantitative, or
by a further increase in the price factors, indicate that the equity
of aluminum; copper which has market no longer is in the zone
recently

tinue

the

is not to

With xne noxaDie excepxion
wiin the notable exception

dividend

hand,

Prices

mand and currently have brought
increasing prices in the world's
is seen in this quarter.
In addi- markets.
A
price increase |in
lion between the end of 1950 and
tion, both for economic and po- crude oil appears likely.
Only
the end of 1955.
litical
reasons
(the
"Welfare farm prices show declining (tenThe outlook for 1956 is for a State" concept now
accepted by dencies, reflecting the glut in
continuation of the high rate of both parties) spending for high- United States and the world
proconsumer spending
but the 1955 ways,
schools,
public
housing, duction of wheat, corn, rye and
beige in consumer credit is not etc., will be stepped up.
other major staples.
likely to be repeated. Wages and
The much deferred road buildWhile higher prices ordinarily
employment will probably con- ing
program will receive legisla- might be considered a deterrent
ta

and

imnni5aT1p0

inventory building would be fully inr receir
" L
off^f hv the estimated
offset by thft estimated increase prime rate may find further rethe est,matert increase
increase

1956, neutral
of being

important factor in

industrv

last'year

government

the

gage. loans a*d further institu- 19{j5) but it

??_?,.high J?!?,.15!®" £i™'..:P4.rtic"1,arIy= „f.^ ^
basic raw materials.
Aluminum aged

tomer

noted that

plateau around current levels,

the

should be

lion,

sense

neither ouiiisn nor oeansn though
neuner bullish nor bearish xnougn

The

ratio of

inc?r'
126)

his-

mortgage

sumer

dences)

dollar
.

w?uJd irnmediately 0f
debt to income.

—*—
raise the

also

annual

penditures of nearly $3 billion.
still, the demand for consumer
durables, primarily cars, is ex-

con¬

con-

the

rising.

big
in

opin-

automobile purchasing may cause

with

from

states%hould

The demand for funds,
by culpura.
corporations and indi~
p
enormous.
Of

prices.
both

portance

andTe stenXT by^auttv" flnaSf

models,

■«

14 n?,iUl0n Tltsi aI]d building

jgg

The

arises

the

are

automobiles has
declm.ed to the point where the
recent cut-back in production has
""t from able to keep inventorbeen

line

decline

any

sumer

out

spending.

cern,

fact

will

^see

penditures and sales in 1955. Last
year consumer expenditures were
further stimulated
by the huge
rise in instalment credit, in large

sources

i0n that at the start of 1957 home

bll'Ion-

Hse

sharp

new

formed

^"HmSSe^bu^nesf tLdelx™ntinthftMmfnageements

reflectaon^pi the low.birth rat$ on the 1Vz% annual improvement in
an p
s*
the early >nd middle thirties, in living standards.
'
^ '
' Thus, the expectancy of a few
there should be a big gain, which
months back that interest rates
presages increased home building
Inventories
shortly would ease has not been
activity to new peaks. Some inIn addition to the larse demand fulfilled; and over the next few

all buildlng

in-

has

candidacy

rate of

^4 i/ hf. net
Zf
Se»4v cnendinv

part

lag expected the next few years

thZt£Tthlth»i
i

—m.
®

the

right

pleases

the

has

consumer

His

market.

which are exing of business expansion plans,
pected to appear around Septem- etc.
have caused a stronger stock
ber of 1956 will probably show
market, so too have these same
major changes.
This of course
>»»»—
elements resulted in higher yields
means important capital outlays. on bonds and thus lower bond

After level.

iust Past 20 years of age.

Consumer Spending

matter of fact, the
dividends has been greater thaii:
the price rise over recent months,

as# jassratp axtajasw as

prospects are good. The low birth demand will be greater and that "rj"
ournoses
foreign
aid
and large rate of tbe thirties was followed their
business
planning
truly
scale nublic works* and
(3) in- by a rising trend which is still should be on a long term basis.
dustrv demand for durable goods continuing.
Individuals born in By 1965, less than 10 years hence,
as ^achinerv
eauilament the mid-thirties and later are the population of the United ^
such
machinery,
equipment
^

the

6%. As-a
increase in

nnr

ranaritv of the nation for defense

buildings.

each, of

nnv-

rabies" (Vf "government*'"demand home construction this year may
(federal
state and local)
which not decline as much as physical It is apparent that business leaddraws heavily on the productive volume
Longer term housing ers have concluded that future

and

during

|^atnlaStwyfarb| af muC°h° aHy.' toTy of c^is" pfenning hlavy h^tencted
orfsetting the de. ^enditures fo? the cSmfng yeaT
of units

time

some

years yields exceeded

and thus stock yields actually
jhaye risen somewhat to, around
4%%—-not a level to make one
wildly enthusiastic, but rather a
penditures, particularly for air- apparent that prices of finished level which spells caution, alcraft, guided missiles, etc.
goods will rise, particularly in though not quite outright danger,
industries such as steel where the
r,
,
.
Industry
demand aspects are favorable. ft
dfvidendH^nd Tn11!^?
A key factor in the outlook for (This continues the long term cornnratT
1?55
1950 and beyond is the expansion trend toward ' "Built-in infla- shlif to /S
1'
program of business and industry, tion.")
billion comna^ wHh S «in
President Eisenhower's decision
The total output of goods and bimon in 1954
S
to run again has been reflected in services, known as Gross Na- months of 1956 cornor»t<*
renewed confidence on the part tional Product should be ap- ments were un ahou? 1W
0f business leaders throughout the proximately $400 billion in 1956 bi2 "cash flow" nHmiritn
nation.
Surveys of the capital compared with about $390 billion dJLtrvcounted
'
goods programs of corporations in 1955.
The
Federal Reserve fromW vear^^ hieh L
indicate that there will be a Board Index of production which jevei and the low dividpnd
whopping 22% increase in ex- measures
physical
production out j'n relation to earning war"
penditures for capital goods in rather than the value of the pro- ran4s tbe exnectation nf mnrwl
1956 to an estimated $35 billion, duction,
likewise
should
be ately higher dividend*? in 195#T
Such expenditures for heavy ma- slightly better than 1955.
--—
say 5% to 6%. Various informed
chinery, plants and equipment
sources
estimate
dividend
in¬
are seldom filled in one year, inBond Market Outlook
creases of 40%
to 60% over the
dicating that the nation's business
to next decade.
Mr
Eisenhower's
decision
A related sustainleaders are confident of the con. * .
candidate has had an ing factor U reeognitinn Vw

b%™y™£

cline in the number

This is prima-

rily because price increases recently instituted in non-ferrous
metals seem to be part of a
world-wide pattern of inflation,
Considering the magnitude of anticipated wage increases, not fully
offset by higher worker productivity over the short term, it is

1950

mersurement

te„t

can

„ed

Sdthne

this

wbiip

nrAS!#sr,t

...

r-atin

nina*

hiahc

which have preceded major

blar

markets, it should be noted that
markets

should

canitalize

and

usually

earnings at lower

neak

p.u k .J mg.s, at lo™e?
fLan
,-Qfinc.
,irui«u

p
a

iowpr and
.

_llcfa-

mnrp

{
«

...

„

Intangible confidence factors
have played an important part in
recent market action. That this
has been and is an "Eisenhower
Confidence Market" is easily illustrated by noting the correlat10n between market upswings
^d downswings to respective
fears and hopes re the President's
candidacy.
At

current

levels

the

market

appears to be discounting at least

in part the expectation of another
four years of an Administration
friendly to business, the prospects
of further population growth, the
hope that war can be avoided,
and of further* long term growth
in earnings and dividends. To

Volume 183 /Number 5528... The Commercial and Financial Chronicle

(2853)

the} extent that militant labor un¬
ions

the

stockholder,
political outlook changes,

expense
the

some

continue to gain tat the

can

doubt because of continued opposition by St/Joe Paper

diminution

million of Florida East Coast refunding 5s which
price that is scarcely justified by the proposed "package"
they would receive..
.;
<

sell at

infla¬

shakeouts

============

By GERALD D. McKEEVER

mediate

character, particularly if
they
come * when;
the
market
might be in a weak technical"

position.1.

face
in

cumulation

numerous industry?
individual: issues are
selling
well
below their
1946
peaks, when the Dow^Jones In¬

The

Coast

Line

(including about $1.85

and

One

might

present 511.

companies which

sidered

"secondary

contrasted

which

with

/have

primary
strong and
.

appears that over the inter¬
mediate
term, the market will
^

undergo
or

moderate

even

long

period of consolidation

term

point to
pation

decline.

The

trend ' continues

higher levels; in antici¬

andreflection

growth

envisioned

decade.

for

the

Downtown Manhattan

;

37.6%

1954.

The reduction in this

rate

Development Fornms
Currently in Progress

added

1955

net

after

tax, increasing

tion and Pace

per

series of Forums

the De¬

velopment of Downtown Manhat¬
tan

being sponsored jointly by

are

the

Downtown

Manhattan

Asso¬

ciation, the Manhattan Community
Planning Board No. 1, and Pace
College. The forums are an evi¬
dence of the
of

friendly cooperation
organizations and the

these

desire

the

lege to

part of Pace Col¬
an active and useful

serve

function

Held

its

College

forums, being held at Pace
College, began April 23 and will
held
through June 6, 1956.
They are giving responsible lead¬
be

business and government

unique
views

opportunity
vital

business

the

local

exchange
affecting

issues

Par¬

area.

ticipation; of the audience in the
discussions follows the brief

open
'

talks/
Persons

the

interested in

Forums

tickets

may

attending

; obtain

free

by
writing
''Midday
Forum," Pace College, 41 Park
Row, New York 38, New York.
;

J; With

lantic

well be the

Coast

H. L. Robbins

15,100 additional shares.
disclosure

other

any

the

for

have

been

road

blind

to the staff

has

been

of Bache &

Fuller

Co.

from
ago

the

firm

since

and

Partner

1900.

about

ruary

Calhoun

alone, with

ill¬

years

been

Company.

been

taxes

before

—

——

E. F. Hutton Installs Electronic High-Speed

Private Wire
-

acquisitions

increase of

revenue

sources

seen

reve¬

day than February, 1955, showed a
revenue trend of the Coast Line
comparison with that of the Southern and the Sea¬
one

The longer term

Atlantic

Left to Right:

John W. Inwood, Los Angeles Superintendent

of Western Union;

Gordon B. Crary and Ruloff E. Cutten, senior

partners of E. F. Hutton &

Co., examine supervisory monitor in
automatic private wire system

center of completely

Los Angeles

designed by Western Union to meet the high-speed needs of the
brokerage business.
The panel provides at a glance an instan¬
taneous check on the operating condition of the entire transcon¬
tinental wire system.

The

first

automatic high-speed

completely

communications

transcontinental

system specifically designed to meet the unique

needs of the brokerage business was

officially placed in operation

April 24 by E. F. Hutton & Company in conjunction
ern Union.
'
r
'■
-1T<. - ;*
'?'/
,

This revolutionary new type

with;West¬

'.V'"'-'"- f.

■

•

of electronic private wire system,

developed by Western Union engineers, flashes orders from

Southern

Seaboard

Southern

Class I

Railway

Air Line

District

Total

ton's West Coast offices to Hutton's New York and Chicago
with

123

122

123

117

112

118

___

110

120

111

104

the

speed

127

121

125

123

119

120

129

123

118

1951

123

116

120

118

116

tions.

1950

103

106

109

107

106

Hut-

offices

without human

attention.

More than

priority

telegraph circuits.

___

The Atlantic Coast Line is

which extends

eastward

the

has

from

and

branch

and

Norfolk

Tampa, lying

paralleling it for the most part.
mileage

than

the

Seaboard

and

Florida

more intensively.
This it will do even more so if
acquiring the Florida East Coast. A plan for the re¬
organization and merger of the latter with the Coast Line has been
filed jointly by the two roads, the joint filing being to get around

the objection raised against the

being forced

upon

previous similar plan that merger
the East Coast as a condition to reorganiza¬

tion, but primarily to meet the requirement of the U. S. Supreme
Court in its April, 1954 decision that a merger plan of reorganiza¬
tion must be of joint origin. The fate of the new plan also is in

This

private

Robert

Mayor

5,344-mile system, the main line

Richmond

Seaboard
more

device giving orders the

it succeeds in

was

light,

2,400 messages an hour can be handled through a built-in

131

___

1952

withdrew

has
&

there has

notable

Line, the Southern District and Class I by the following
table of indices based on the 1947-49 average at 100:

added

brief

four

first two months this year which showed an 11.7%
increase above those of the corresponding 1955 period, while Feb¬

;

" v; -r

revenue

impact of these and other

1953

about

for the

nues

Co., 1000

other hand,

sources

Army, the reactivation at the cost of some $35 million of the
•Seymour Johnson Air Force Base of the Army at Goldsboro, N. C.,
and the American Cyanamid titanium dioxide plant at Savannah.

following

only 8.4

only 4.5% in revenues as against
However, the showing would have been
satisfactory if it had not been for several new revenue

1955

Mr. Law founded A. M. Law

ness.

sources whicn opened up last
year.
Chief among these were the
$22.8 million Sunny Point Ammunition Loading Terminal of the

covers

million

Law, Spartafi&ai^,"
S. C., passed away April 15 dt the'
age

—

for.,

for Class I roads.

However,
Andrew

another

control battle between the At¬

On the
other

Baltimore Avenue.
,

road

making in

much less

CITY,> Mo.— Mrs.

Smith

the

give

granted, allowing also for the 7 % % Pullman Fare increase applied for.
"
■ / r.
VV,

so this may have to stand as merely a rumor
being—and possibly wishful thinking that new in¬
may be more "dividend-minded" may be gaining a

the road showed

7.8%

(Special to The Financial Chronicle)

comes up with some balance in its favor, from this
and since passenger revenues are a sizeable factor for the
Coast Line over $16 million annually, or about 12%% of total
revenues—the 5% increase in fares that has been applied for

source,

long to the exceptionally strong strides this
growth. Largely due to the Florida
phosphate labor troubles and the strike against the industry which
began about last June 1 and lasted the better part of four months,

40 Pearl Street.

-KANSAS-

The road thus

Bache Adds to Staff

Hazel

concern,

time

that

terests

SEC

from

1954

rumor

Coast Line

against some $6.5 million gain,
from the freight rate increases that went into effect on March 7.;

corre¬

board Air

/WORCESTER, Mass.—Harold S.

;

that went into effect on an*

amounted to about $6 million

Line

Ringer is nOw with* H. L. Bobbins
& Co., Inc.,

year

Company (Conn.) and at least two investment
companies. As last reported, Atlantic Coast Line Company, long
the controlling interest in the road's stock, owned 742,700
shares,
or
30.5%, giving effect to the recently reported purchases of

is shown in

(Special to The Financial Chronicle)

- ■

part of last

annual basis for the Coast Line

Another possible reason for the upward march of Coast Line
stock may

12^% increase.

•

Special reasons for the rather sudden awakening to the possi¬
bilities in Coast Line are sought because few rail observers could

The

ers

increase of about

dominant position.

community.
Pace

share earnings from

College opened to T } $5.60 to $7.06. The present price of the stock would
times this adjusted figure, and tnus not excessive.
the public. V;.A

'•> A

36.4%

It is estimated that the wage increases

in the latter

sponding 1955 period may be taken by some to indicate that the
program of excessive expenditure? may be drawing to a close, and
it has been stated that a normalization of maintenance
outlays is
expected toward the latter part of this year. If, for instance, 1955
maintenance had been charged at the more normal rate of
33%,
some $3.5 million, or $1.46 per common
share, would have been

Discussions under co-sponsorship
Downtown Manhattan Associa¬

•

crease.

should

for the

against

help of the minor reduction in maintenance referred
earned $1.03 per share in the first two
months this year as against 92 cents/for the corresponding 1955
period. This was in spite of the wage increases that were fully
effective in this period without any offsetting freight rate in¬

past, this road has been
engaged in a roadway rehabilitation: program which has been
partly reflected in maintenance charges that are considerably
above the average. The rate for 1955 was 37.5% of
gross revenues
was

With the

/"/•■

the first two months of this year as against 38.1%

to above, the Coast Line

There may be two reasons for the sudden burst of enthusiasm
for Coast Line this year. For some time

and

1946, for instance, and 41.9% as recently as 1949. Largely as a
gross ton-miles per freight-train-hour in- "

40% for Class I.

might be in store
asked, why does Coast Line
sell at an even higher relative
price than Southern, or even more '
pointedly, why is it being so much more highly prized than Sea¬
board which, serving substantially the same
territory, has had an '
almost equally good growth record in the past several
years, and
'

has been

completely dieselized except for possible emergency 1
a few steam locomotives are held on stand-by,'
ratio in 1955 was 37.5% as against 42.6% I

now

creased 47% between 1946 and 1954 as

conclusion might be drawn that similar action
for Coast Line. But then, it might be

when the stock of this road sells at less than 9 times its
per

sources

result of, dieselizStion,

both

earnings and yields about 6.2%?

In times gone by income from these
importance to the Coast Line. In most

and the transportation

Southern

the

stocks

Another

service for which

also

and the

the outstanding total.

revenues

Line is

very

•

growing institutional demand.

roads have been characterized by a
conservative rate of dividend "pay-out"—less than 30% for
and about 35%
for Coast Line. }An increase' in the '
Southern dividend is expected at any
time, and the rather obvious

con¬

the /"blue-chips"

been-

beneficiaries

are

issues"

35%

jointly and equally with the Louisville &

owns

change has been largely due to the steady growth of
of the Coast Line, but it has also been due to a*
great extent to the road's improved operating efficiency. The Coast •'

point

time

the

with

common

high, of 212,

the $4.1 million

This

gross

sound

compared

was

823,427 shareholding, of Louisville &

years since 1940,
however, and in all years since 1948, the road's income from itsown operations has exceeded its
non-operating income.
•
*

$5.60 per
share tax de¬

This is particularly true of many

attained

from its 50% interest in the Carolina, Clinchfield

came

Ohio which it

of vital

out that the yield on Southern Railway
only about 3.4%, but this stock is selling at the
lower ratio of less than 9 times per share
earnings. Both roads
have been exhibiting a strong trend of revenue
growth for some

dustrials

its

from

Nashville.

earned
per

rising prices to the point where the current, price}
is 10y2 times annual per share
earnings and the yield is just about
the lowest in the rail category. ^ ' ''•> "r
^
^ r -

history that

groups

buying.

1955

ferral) and is paying dividends at the rate of $2 per share annually, indicating a yield of only about 3.4%. at the present market.
Obviously there must be some special reason for this steady ac-

market

bull

share in

common

this connection it is
note that'' in the

greatest

of repeated questions of "What's

indicating persistent

the

going on in
early this year, this stock has
gain of just over 17 points4 to the inter-day high of 60% "
recently, and is now trading around 59%. What is more, the rise'
has been steady with only minor rests and
relap&es for a day or so, -

that prudence dictates a
balanced portfolio position;' and
(2) that the much abused term
"selectivity" mustbe carefully

received

$2,446,000

year

From the low of 43%

had

ing"} (1)

interesting

cause

Coast Line?"

Perhaps the key to present investment policy lies in recogniz¬

applied.

operating income, and over half of this item
Nashville stock which

The remarkable rise of Atlantic Coast Line stock this

"The Atlantic Coast Line lives not by itself alone: Almost 60%
its $13,851,000 net income in 1955 was represented by non-

dividend

Atlantic Coast Line
has been the

A/.'';

/7V»

■

inter¬

tionary expectations, or the inter¬
national situation worsens, there
could

Co.f

holder of $45

there

right-of-way

wire

system

Wagner

over

all other communica¬

encompasses

New

York

18,893

and

the

officially opened the system by pressing

high-speed

message

center

Mayor Norris

Poulson of Los Angeles exchanged greeting messages
Poulson

miles

after Mayor

single key in

in the firm's main Los Angeles

office.
The

first

transmitted

Company.

by Theodore
Hutton in

order

sent

by Ruloff
was

over

the

E. Cutten,

system from Los Angeles

was

Senior Partner of the Hutton

received in Hutton's main office at 61 Broadway

A. Lauer, New York partner with the firm when

1906 became the first

New York house to have an ex¬

clusive transcontinental brokerage wire.

;

The Commercial and Financial Chronicle... Thursday,

(2054)

April 26, 1956

c v

Continued

from page 4

$50 Million Ohio Road
Our

Construction Bonds

Reporter

Publicly Offered

Governments

The State of Trade and

By JOHN T. CHIPPENDALE, JR.

from the week before.

under joint

ment

manage¬

Blyth & Co., Halsey,

Stuart & Co., Lehman

B. J. Van

Bros., and

operations of the powers that be. No relief of any great importance is expected in the trend of Treasury issues until some of

syndicate

jointly by

Blyth & Co., Inc., Halsey, Stuart
& Co. Inc., Lehman Brothers, and
B. J. Van Ingen & Co. Inc. is of¬

fering $50,000,000 in State of Ohio
Major Thoroughfare
bonds

prices

2.15%

for

construction

bonds

yield

from

maturing Sept.
15, 1956 to 3% for the 1972 ma¬
turity The issue was won at pub¬
licly advertised sale on a bid of
100.01747%

3^, 3%

for

combination

3% coupons,
interest cost of 3.0932%.
and

net

These

bonds, which are rated
Aa by Moody's Investors Service,
represent the third instalment of
a

total authorization of $500,000,-

000

approved

the

voters

1953. They are

payable as to prin¬
cipal and interest solely from fees,
excises or license taxes levied by
the State of Ohio relating to reg¬

operation
or
use
of
vehicles on public highways or to
fuels
used
for
propelling such
vehicles.
Among the foregoing
fees, excises and license taxes are,
istration,

4-cent

additional

gasoline tax,
gasoline tax,

a
a

1-cent
motor

vehicle

license tax, the drivers'
fees, a motor transporta¬
tion companies' tax, and a private

license

motor carrier's tax and
tax.

use

Such

for debt

revenues

service

ended June 30,

$207,601,000.

highway
available

during the

year

monetary authorities to curb the forces
more tangible results than have
It is believed that the 2%% discount rate
;

fixed

ity in the week ended April 22, "Steel" magazine reported on
Monday of this week. Despite a few soft spots in steel demand,
it said steelmaking should continue at near-practical capacity at

of ;
to .,
Purchase of this

It is reported that support has come into selected issues
from government trust funds.
This has tended

yet.

Treasuries

least until June.

This trade

improve market conditions from time to time.
a more orderly government market.

Federal Reserve

Policy Weighed

trying to figure out whether or not
the interest rate raising operations of the powers that be, are
going to limit the availability of credit to the extent that some of
the bloom will be taken off the boom.
There appears to be no

have

that

some

money

interest

new

for investment.

appearing

now

among

possibility of labor strikes.
This

the

time

second

are

months, compared with the slow start that steel had in the first.
quarter of last year.
:
:
'

so.

Uniform

The iron and steel

best

Discount Rate Expected

such

further

cause

increase

the

Federal

unsettlement

Reserve

the

Banks

There

the

has been

because

the

lent

indicated

that

market
not

are

few

followers

Iron

program

the

are

sale

of the $500,000,000 in construction bonds, by
the proceeds of the highway and
fuel taxes not used for debt
ice and by

month ago the rate was

Barclay Inv. Co.

there

Horman

111. —Bernard

now

affiliated

A.
with

Barclay Investment Co., 39 South
La Salle Street. He was formerly
with Merrill Lynch, Pierce, Fenner

great

will

deal of attention

ended

because it is believed
on interest rates until

based

annual capacity of 125,-

electric light

April 14, 1956, according to the Edison Electric Institute.
week's-output

declined

week in 1954.

Car

24,000,000

kwh. under

that of

Loadings Rose 8.3% Above the Preceding Week

Loadings of revenue freight for the week ended April 14, 1956,
increased 56,656 cars or 8.3% above the

preceding week the Asso¬

ciation of

Marketability

The government bond market has become
such
affair that Treasury

obligations,

except

market for securities that
a

note.

were

for

well within the

This, of course, has prevented the sale

order

and

narrow

U. S.

"|VaV$'s

week'th$ industry assembled an estimated 131,449 cars,
compared withj 130,038 (revised) in the previous week. The past
week's

pressure policies
monetary authorities, it is indicated that the
corporate
seeking an outlet in near-term tax
exempt issues have been

the increase.

units,

craft

short-landing

heretofore

light

air¬

manufactured

Offering
common

Corp.

stock

150,000
of

Helio

sign
of

Aircraft

being made by Vickers

Brothers of New York
City, at $6
per share.

generally known as the
"Helioplane" so-called because it

seeks

combine

the

in the United

speed and range of the fixed-wing
airplane with an ability also to fly

slowly and to land in small

areas

output declined below that of the previous

{he agency reported there were 23,276 trucks made
Stales. This compared with 24,242 in the previous

31,35f ^year ago..

week and
.

economy,:

by 4,589

Last week

Helio Aircraft Slock

week'$

6a3&, while truck output showed a greater loss the
past week of 966£vehicles. In the corresponding week last year
180,647 cars and $1,351 trucks were assembled. '

week

takeoff,

of cars and trucks amounted to 154,725
decrease ffl 5,555 units below the preceding week's output,

Last

\";

its order by others. The basic de¬

producm'ofc^total

states "Ward's.?

SECURITIES

Vickers Bros. Offers

Automotive Output Declined 3.5% the Past Week

Last

marketability is

the

lunds

cars, or 10.7% above the corresponding
increase of 129,169 cars, or 21.1% above the

andj%n

Automotive qliiftput for the latest week ended April 20, 1956,
according to
Automotive Reports," declined 3.5%.

that could be used for other
purposes. On
the other hand, this kind of action in
government issues has prob¬
ably done these securities no good, because ooor

week,

corresponding ^ei?k in 1954.

maturity range of
Treasury issues

1955

shortest

the

increase71,749

cars,

to get funds

usually something which is not readily forgotten.
Even though there has been ro
let-up in the

American Railroads reports.,
Loadings fof^the week ended April 14, 1956, totaled 742,053

maturities, have lost practically all of their marketability. There
have been instances
reported in which there has been almost no

PUBLIC REVENUE

are

of Jan. 1, 1955.

week; it increased 1,197,000,000 kwh. or 12.3% above
the comparable 1955 week and 2,637,000,000 kwh. over the like

time.

thin

and

the previous

Governments Lack

STATE, MUNICIPAL

the actual weekly production

been

& Beane.

U.S. TREASURY

ago

Output Reverses Upward Trend of Previous Week

This

be no let-up-in the pressure
slowing down of these forces of boom psychology. Shifts
made from equities into fixed income
bearing issues
in some instances
already, but it is not believed. that this will
assume important
proportions as long as the feeling of confidence
is as widespread and as
positive as it appears to be at the present

have

year

power

was

the action of the stock

concerned,

there is

(Special to The Financial Chronicle)

CHICAGO,

are factors that are getting
the money markets are

)

pro-*

industry for the week ended Saturday, April 21, 1956,
estimated at 10,894,000,000 kwh., a decrease below the week

and

far

With

Electric

looking for higher yields

Loan Trend Key to Market
market,

2,452,000 .tons.

99.6% and

The amount of electric energy distributed by the

The future trend of Joans, as well

1956 is

placed at 2,307,000 tons or 95.6%. The operating rate is not
comparable because capacity is higher than capacity in 1955. The

in the bond market.

serv¬

the

was

feeding the forces of inflation.- Accordingly, until
tangible evidence that the boom has been tempered
by the interest rate raising operations of the monetary author¬

Federal aid and other

highway funds.

duction

are

that

annual capacity of 128,363,090 tons as of Jan. 1, 1956.

For the like week

opinion that interest rates will continue to
work higher and the 3% discount rate will not be the
top level for
the Central Bank Rate. They are not yet convinced that borrow¬
ing rates have reached areas that will slow down the obtaining of

specialists

announced

100.2% of capacity, and 2,466,000 tons (revised) a week ago.

based

government

the

ities these money market

Institute

The industry's ingot production rate for the weeks in

uniform,

828,310 tons

this

Steel

and

percentage figures for 1955

hold

to 2,454,000 tons of ingot and steel for castings as compared

with

means

of the steelmak¬
ing capacity for the entire industry will be at the average of
99.7% of capacity for the week beginning April 23, 1956, equiva¬

pretty well taken into consideration by

money

18,

operating rate of steel companies having 96.1%

Higher Bond Yields Seen Possible
ideas

cars.

April

net ton.

American

The

bond market at this time.

The

freight

ended

week

mained at $128.02

positive answer to such a question which will come only with
passing of time. However, it is the opinion in some quarters of;
the money market that a 3% discount rate for the 12 Federal
Reserve Banks

the

"Steel's" price composite on
steelmaking grades of scrap stayed at $55 a gross ton, the record
set the previous week.
Its price composite on finished steel re¬

borrowing rate

market.

money

For

Key elements in the

the expansion in heavy, industry and large backlogs for >

are

railroad passenger and

One of the important points of discussion in government bond
now is whether the discount rate will go to a uniform 3%
all the Central Banks and, if this should be the case, would

circles
for

in history, the magazine stated.

years

drive

casting industry is driving for one of the :

there is

vided

placed at 11,620 cars and 2,676
pagfcvious week Dominion plants built 11,646 cars

Canadian output last week was

trucks.

the

trucksMnd

and

2,752

and

2,835 trucks.

for the comparable 1955 week, 10,241 cars

•

Aubrey G. Lanston
&

INCORPORATED
15 BROAD

ST., NEW YORK I

WHitehall 3-1200
231 So. La Salle Su

45 Milk

BOSTON 9

ST 2-9490

HA 6-646S

in¬

cluding improvements and adap¬
tations on existing Courier model,
for research and
development, for
additions
to
production tooling,
to

CHICAGO 4

The corporation
plans to use
the proceeds from the sale of these
shares for various
purposes

Co.

publication declared second quarter earnings in steel*
expected to match the excellent showings of the first three

credit which is

for

The

approximately $1,000,000,000

over

"Steel" has reported
Production also hit the 100% mark
V

in the week ended Feb. 19.

securities

The funds
to be pro¬

this year that

full-capacity mill operations.

far, have been largely scaled down acquisitions, and the size of the
buying orders have been rather limited.
-V!.v/',■■■'>;.•

eight-year period.

over-j

authority,

this; metalworking

building steel inventories in anticipation of higher prices and the

those

However, these purchases,

continued

all steel production will be kept at near-practical capacity for at
least the next six weeks by the demands of customers who are

effects of credit controls because
they have worked in the past and they will work this time.
In
the interim, however, the bond market, and this includes govern¬
ments, corporates, and tax-exempt obligations, is feeling the
pressure ot rising costs in the obtaining of loanable funds.
To
be sure, the yields on many of these issues hav^ reached levels
there

;

bars

Nevertheless,

are

question about the long-term

where

weekly noted that

some of the pressure for hotmelting as a result of a reduction in agricultural
implement output. Inventories of implements are good, it added,
and retail demand is lessening.

rolled

kind would make for

The money markets

»*

Capacity This Week

rently outstanding is $132,000,000.
The bonds are part of a State
highway
construction
program
which anticipates expenditures of
an

estimated

Mills produced steel for ingots and castings at 100% of capac-;

level of interest rates has attracted some buying .,
income obligations but this has not been very sizable )

The higher

Giving effect to the

$50,000,000
in
bonds, the total of such bonds cur¬

Steel Production Scheduled at 99.7% of

majority of the Central Banks will be pushed up to 3%,
unless there are quick changes in not a few of the boom forces.
the

1955 amounted to

sale

current

Indnstry •

4%, or to

inflation and the boom show

Ingen & Co.
headed

down

the measures taken by the
been witnessed so far.

were

23,276 from 24,242 jobs.
>"•
United States output so far in April is at a monthly rate
of,
556,000 cars and 99,500 trucks, "Ward's" declared, compared with
original goals of 562,000 and 104,000 respectively.

government market continues to flounder about in a very,,
uncertain and defensive fashion because of the money tightening
The

Syndicate

Trucks

finance

production

and

for

other corporate purposes.
Helio Aircraft Corp. is engaged
in the design,
sale

development and
unique type of short-

previously useable only by heli¬
copters.

models,
metal

land

One
a

less

than

off

take

can

Business Failures Register

company's

four-place, 260 h.p., alL

aircraft
in

the

and

yards fully

loaded.

Slight Decline in Latest Week

Commercial and industrial failures dipped to 252
ended April 19,

in the week

from 255 in the preceding week, according to Dun

Bradstreet, Inc. However, they were higher than in the. com¬
parable weeks of 1955 and 1954 when 204 and 229 occurred
respectively. The toll remained 20% below the pre-war level of

316 in 1939.

The

the

primary market

corporation

in which

offering

product is that of business
within the United States.

its

flying

Failures with

week's
the 174
38

liabilities

of $5,000

accounted for the

decline, falling to 214 from 222 last week, but exceeding

from

year ago. However, small failures, under $5,000, rose to
33 of a week ago and the 30 of last year.
Nineteen

the

•

Volume 183

Number 5528... The Commercial and Financial Chronicle

(2055)

businesses failed with liabilities above $100,000, as compared with
30 in the previous week.
: ■■
-■
•.
•
•
v

feeling of frustration
that

Securities Salesman's Corner

Level in Five Months
The

wholesale food price index, compiled
by Dun & Bradstreet, Inc., rose sharply the past week to stand at $6.01 on April
17, as against $5.96 a week earlier. This marks a new peak for the

By JOHN DUTTON

of 31

the

index

the

represents

sum

total

of the

price

what

goes

office

back

not

under•

ilevel.7 ;+ *+••v.,7 7;

own

777Trend the Past Week
Movements

the

Dun

Bradstreet

; modity price index were mixed last week.

com-

rose

new

high ground since early September 1952 and closed at 293.22
.April 17.

275.11

This compared with 292.28 a week previous and with
the corresponding date a year ago.

Grain markets

unsettled in the week.

were

Following

:v';. It

basic

:
,t

"free" wheat situation.

Producer

further tightening

marketings of

nineteenth
".

century i of
closely-knit business
which:

goes

after

increased to

;

the

cocoa

London

demand.

market

Warehouse

better

and

stocks

commission

cocoa

were

house

down

and

dealer

"As

vetoed

farm

the

82^4% of parity,

week

ended

April

6 totalled

<16,200 bales in the
cotton

•

period.

same

of April 6 were

.;',7~/;

Sales of cotton for

CCC

loan repayments

against

has

invest

the

Loan

outstanding on 1955-crop
reported at 6,331,800 bales.

their

want

wives

some

dividend

their

homes,

Trade Volume Stimulated in Latest Week by

them

Extensive Sales Promotions
;

Consumer buying

last

week,

with

was

noticeable

outdoor furniture

Purchases of

spurred by extensive sales promotions
retail gains reported in housewares,

and men's
new

and

apparel.

used automobiles

those of the previous week,

Wednesday of last week

of retail
was

trade

the

varied

from

the

period

4 to 8% higher than

ended

year ago,

There
the

total

Coast

was

dollar

+2 to +6%.

slight rise in wholesale orders in the
volume

somewhat

exceeded

that

week

the

and

similar

week

An upsurge in re-orders for Spring and Summer
;apparel occurred with buying of furniture and major appliances
above that of the previous week.
year ago.

Department

stores

sales

country-wide

basis

taken

-from the Federal Reserve Board's index of the week ended

April

14,1956, increased 11% above those of the like period of last year.
preceding week, April 7, 1956, a decrease of 15% was re¬
ported. For the four weeks ended April 14, 1956, an increase of
2% was reported. For the period Jan. 1, 1956 to April 14, 1956 a
gain of 3% was registered above that of 1955. 1
In the

Retail

sales

volume

New

York

City

the

some

customers

checks

week

substantially above the level of the corresponding period

year

observers,

was

about

12% higher than last year's volume.

weekly period ended April

14, 1956, increased 21% above those of the like period last

preceding week, April 7,

was

recorded.

was

recorded.

index recorded

1956,

For the four weeks

For
a

the period

decrease of 14%

of 1955.

year.

(revised)

ending April 14, 1956, no change

Jan. 1, 1956 to April 14, 1956 the

rise of 2% above that of the

offices.

be held for

have

special

corresponding period
,

hold

take

and

back

|
is

Should

office.

Cooperate Too

In some investment firms there
too
little
understanding and

appreciation of what goes on in
the cashiering department.
It is
something taken for granted.1 I
have seen periods in the invest¬
business

ment

when

overworked

tions
than

establishing

and

distributing

its

quite

most of us

cently,

these

few

pay

years.

firms

profit sharing
Others

weeks

well remembered by
who have been in this

few
a

Until

have

set

re¬

retirement plans.

generous

bonus

good years but fire right and left
when the lean ones come along.
I have

this

static. Instead,

this

certain tea

core

resting within

of belief is

immutable

Canning Midwest Rep.
For Wellington Fund

conclusion

111.—A. J. Wilkins,
in charge of dis¬
tribution of The Wellington Com¬
CHICAGO,

Vice-President

;

reached

was

distributors

pany,
re¬

Wellington

Fund, Inc., announces the appoint¬
ment of Joseph E. Canning as a
midwest
wholesale
representa¬
tive. He will make his headquar¬
ters

and will be re¬
Wellington service

Chicago,

for

sponsible
to

British teams

dealers

investment

certain

of managers, tech¬
nicians and trade unionists, which
came to the United
States to see

well

Kansas, Oklahoma, Kentucky, Ar¬

the

Britain.

needs

teams

which

reports

the Chicago metropolitan area?>

presented

The

were

Great

yet to see much change in
on
the part of in¬

attitude

dealers

Indiana,

Ohio.

unanimous.

Phila. Sees. Ass'n to

Lest you

think I might be biased
conclusions, let
me
read you what an American
newspaper reported under a Lon¬
don dateline in late 1954, as a re¬

in reporting their

return

the

Manufacturer

one

the

That

Pacts

Hold Annual
,

Outing
Pa.

PHILADELPHIA,

Philadelphia

The

—

Associa¬

Securities

tion will hold their annual

outing

the

Aro-

Friday

June

nomink

Country

Club, Newtown

Square, Pa.

Join Mitchell Curtis

End

(Special to The Financial Chronicle)

SAN

newspaper's account went

Cal.—John

FRANCISCO,

Davis

and

Adrian

Hodges

on:

have
"The

praise for the Sherman
and Clayton Antitrust Acts was
included

the

industrial

en¬

joined the staff of Mitchell

Curtis

& Co.,

156 Montgomery

Street.

gineers' report because, accord¬

ing
'it

members

the

was

ting when
what

was

answer

the

Now With Denton Co.

group,

kept get¬

(Special to The Financial Chronicle)

asked Americans 7 SANTA
ANA,

the

competitiveness

source

their

the

econ-

Horncastie

ated
4 William

cashiering de¬

all

kansas, New Mexico and Western

practically

vestment firms.

The work of the

belief

Harbor.
This
not stationary

Boston

nor

products

British study team that

That

still

national

Competition"

scotch

century—since

than its competitors."

the

varia¬

with

endured

only in emphasis for more

party

"In essence, this meant that
each management set out to do a
better job of producing, selling

hardworking and loyal people but
memory

based

national

bipartisan article

—

concepts,

definite

and

faith—have

policy compelled

uncomplainingly
worked
latest
teams.
This
New
York
many
hours of overtime in the
"Times" headline read:
evenings and weekends just so
that the books and the important
"Productivity Team Lays U. S.
matters
incident
to
the
Output Supremacy largely to
proper
Sherman, Clayton Acts"
functioning of the business could
"Hits Own Country's Law"
be
accomplished.
Not only has
"Parliament Urged to Act on
the investment business been no¬
underpaying

are

momentum toward the goal of free
monopoly. competition. After a century of
"Under
these circumstances,
testing, that policy today remains
they accepted the concept of vital and vigorous. It underscores
"true competition and directed
America's fundamental belief that
their
energies and efforts to a
dynamic Republic can rest only
ways and means of increasing
upon
the foundation of a free
their profits
by expansion of economy—and that economic free¬
their volume of business.
dom — like political liberty — be¬
"This competitive battle for
longs only to those who value it,
profits led to the introduction and are
vigilant.
of new concepts, practices, and
tools
at
various
stages
of
growth*
;

sult

staffs

firm

policy

their

adapted
The Brass

laws

what methods used there could be

between

cooperation

antitrust

our

principles. These

ac¬

It should be done in

the

sales and

business

the

accomplish.
a
spirit of

rose

According to the Federal Reserve Board's index, department
store sales in New York City for the

wives
don't

mailed

their

some

business

torious

past

ago.

The week's increase, according to trade

they

Regional esti¬

comparable 1955 levels

by the following
percentages: New England +8 to +12; East +6 to +10; South and
Southwest +1 to +5; Middle West +5 to +9 and the Northwest

and Pacific

don't

the highest intellectual and moral

cently visited this country. "The
counts in joint names.
Many of
Anglo-American Council on Pro¬
them will make requests that to
ductivity" was set uo to studv the
the cashiering department may be
reasons for the
superior produc¬
bothersome but, if their account
tivity of American lnausay.
it
; is worth it, that is what you are was responsible for organizing 66

slightly below

were

according to estimates by Dun & Bradstreet, Inc.
mates

The total dollar volume

and

them

know

securities,'

same,

with
men

Some

want

deal

time.

Others desire mail to

;

helpful if

appreciate—but

not

the

Finally, I emphasize that at the
heart

this

managements to re¬
position. They

consider

vital stake.

realized that they were required
to compete, but had no hope of

operators, and secretarial
a briefing in their re¬
sponsibilities in helping the sales¬
men
to do a better job of effi¬
ciently handling firm's customers.
The eccentricities of people are
something that many office peo¬

all

corporate

ever

salesman

in the >

entries

be
the

get

ple
•

43,100 bales,

sales¬

can

understand

phone

continued to lag and totalled
33,300 the week before and
year ago.

firm;

all

prosperous and
In its preservation

you—indeed, all Americans—have

national

as¬

of others. It has

our

free economy.

"The rigid enforcement of this
new

enforcement

eyes

supports for

was

States by an

the importance

see

time, but of intensive study. To¬
day it stands as one of the prime

into small units by
court decisions following long
legal battles.

cus¬

cashiering departments, tele¬

help

bill

Trading in the 14 spot markets
38,400 bales for the week, against
63,100 in the corresponding week a
export remained small in volume.

the
if

■

an or¬

the

Likewise it is just as

was
generally viewed as constructive
owing to the statement that cotton would be supported at a mini¬

mum

reflection

and

the

Monday of last week that the President

the

and

Sloppy handling of

result

in the

sumes,

legisla¬
tion," Crout continued, "several
of
the
large combines were

them.

Spot cotton prices were fairly steady as traders awaited Wash¬
ington developments on farm legislation and the surplus cotton
export program.
The announcement

der

antitrust

withstood the crucible not only of

^:'>777';/

broken

problems and get together to meet

export outlook for both fats and oils.

had

salesman

the

tomer.

avoided

large
market receipts of hogs, lard prices registered fair gains for the
week aided by continued strength in oils coupled with the bright

that

monoplies.

enacted.

•

public
morality
of
the
States; it is enforced by

And

prices,

opposition which succeeded1 in
having antitrust legislation

man

moderately and

totalled 343,512 bags, against 345,894 bags a week earlier. At this
time last year they stood at 169,960 bags. Despite continued

there¬

ance, transfer,
livery should be made clear to all

but

increased sharply with prices substantially
higher than the week before. Support was influenced by strength f
in

agreements

met in the United

In addition, the neces¬

public opinion.'"

compete

and

teenth century, this trend

books, clear¬
and ultimate de¬

can
in this way be emphasized.
Accuracy not only helps the cage

62,400,000 bushels, from 56,300,000 the previous
38,400,000 in the same week a year ago.

the

;

"Toward the end of the nine-

average of

Activity in

entered into formal

to create

daily

groups

production quotas, wages rates,
and markets; and thereby tended

; week and

•

order

The exact route of

desire

themselves
.

informal

be serviced

can

omy.' The group's secretary

United
not

among
fore 4

inter¬

day

impoundings under the; loan continued heavy.
Based On 7
sity for accuracy in writing tick¬
April 1 conditions, the Crop Reporting Board estimated the 1956
ets, and properly designating the
Winter wheat crop at 716,000,000 bushels, or 2% more than the
transfer instructions, or any other
*1955 crop of 705,000,000 bushels.
Sales of grain and soybean ~
pertinent desires of the customer*
futures on the Chicago Board of Trade last week

too

Hindrance

or
:

certain

salesmen.

*and

; remarked that '.
the monopo¬
lies issue has become a part of

"did

through the

order,

limited

corn were

which

day

V. properly.

in the J

vital

+■

Help

prise, Mr. Crout referred to the

that their clients

crops

Strength in cash wheat reflected
\i

work

ruptedly

(except peanuts) would be raised to 82^4%
of parity, which would insure national support averages of
$2 a
bushel on wheat and $1.50 on corn.
;
V
v
on

are

there

page

growth in Europe during the late

give the salesmen
better understanding of the rou¬

;

The late uptrend was largely influenced
by the news that price

supports

helpful

erratic fluctuations most of the period, prices rallied
briskly V a
at the close to finish with modest gains.
tine

en¬

held which will

-and
-

the

-»

meetings be¬
tween the cashiering department
and the sales department can be

nervous

♦

.Everyone

throughout

Staff Meetings Are Good for

daily wholesale
The index

friction

tire organization.

jrom

Antitrust:

activities that there is need¬

less

Mixed 77;

Continued

problems that confront
the. salesmen, and too often the
partners, and those engaged in
buying, are so engrossed in their

raw

Wholesale Commodity Price Index Showed

they

firms

some

in the cage,

does

stand the

>"■

pound

per

foodstuffs and meats in general use and its chief func«tion is to show the general trend of food prices at the wholesale
-

know

oats, steers and hogs.
The

of which

"big brass," big deals, big
expense accounts, and big heads.
A little more
There is often too wide a gulf partment
humility and appre¬
is rarely
commended
ciation would do a lot to
between the various departments by an owner or a partner.
improve
The
of a business such as the invest¬ faceless people who toil in cash¬ efficiency and
harmony in many
ment
business.
Sales
does
not ier's cages day after day have a organizations.

Aiding in the current rise were higher wholesale costs for j
wheatr corn, barley, hams, bellies, lard, butter, cheese, sugar,v
'J' coffee, cocoa, eggs, potatoes and lambs. Lower in price were flour, v
rye,

futility

much

Organizational Teamwork Helps You

[
1

team

part.

'year and the highest since Nov. 22, 1955, when it stood at $6.02.
This week's figure compares with $6.52 on the
corresponding date
a year ago, or a drop of 7.8%.
;

and

but

ty. To many of them it is just a
job but they could also
belong to
a

;

help

produce a
spirit of indifference and casual¬

■

Wholesale Food Price Index Registers the Highest

cannot

American

E. Rappard,
The
Prosperity, (1955),

Secret
>67.

First

with

Calif.

has

Denton

Western

—

become

Bank

Vincent
affili¬

Company,

Building.

The Commercial and Financial Chronicle..

(2056)

Combines Plans

Is Oil

Street Sales

Broad

combined

and

reinvestment plans

of Broad

Corporation, Na¬
Corporation and

Street Investing
tional

Mutual Funds

accumulation

the

Investors

The

initial

investment

amount

still

minimum

the

But

plan.

requirement for subse¬

investments has been
to $25 from $50, and

quent
duced

quirements

re¬
re¬

investments

that

and for
minimum dividend for reinvest¬

made
a

to open

required

accumulation

specified

times

ment have been eliminated.

Investing for Income ^
through

National Income Series
.

mutual fund, the primary objec¬
of which is to provide an

tive

investment in
of bonds,

diversified group

preferred and

stocks selected

common

because of their

relatively high current yield and
reasonable expectance of its con¬
tinuance with regard to the risk
involved. Prospectus and other
information
may
be obtained
from your investment dealer or:

expression

con¬

that

their

corporations

will

Investors

Fundamental

were

$363,664,472, an increase of 13.6%
be able to
satisfy demands for over Dec. 31, 1955. In the same
products without this expansion three months, 3,938 new share¬
and the increased efficiency and holders were added to the fund.
lower cost operation it will pro¬ J
Shareholders were also in¬
vide," Mr. Long added. Such ex¬ formed that the dividend payment
pansion, it was noted, will be par¬ on March 15, at the rate of 12
tially financed by plowed-back cents per share, resulted in the
not

W0
i.yA:*

Incorporated
Investors

Fund
is to "•

ynthoot
P"neiptt':

b.ainable
of

stocks

and

88.8% at March 31, 1955.
Shifts in

common

stock

which

tors

slowly

Robert Co.tun

title "Is the

their

Industry

the

sale

take

gains

and

preferred

oil and consumers goods
companies equities, and more im¬
portant reductions were in auto¬

lowered

first

quarter,

money

fuels

leum
to

operate

than

20%

National

Investors'

net

assets

fuel "less
petroleum

the

total

Obviously,

100%

Surveys Holders ;;

conversion

occur."

not

totaled

$64,177,816 on March 31,
from $57,289,942 at the
first of the year and from $48,a

gain

stock

mon

98.5%

of net

The

fund

tion

stood

assets at

pointed

"some

stock

March

the

aircraft

out

has

associated pri¬
marily with the small investor. A

atomic

been

at
3L

gain in
the

prices in

ad¬

general

since the first of the year,

of net assets at

31, comparing with 85.0%

•

King Merritt Adds
(Special to The Financial Chronicle)

"Assuming 25%
the

conversion

carried out over

Mr.

Colton

pears

many

explains, "it

ap¬

view

the

1951. The

said:,
"In

fund

offering

the direct help

quality and income possibilities.
a free
copy of the booklet-pros¬
pectus by mailing this advertisement to

Send for

CALVIN

providing the
industry, Mr. Colton

University.

Pension

of pe¬
surface
and subsurface exploration, res¬
toration of exhausted oil fields,
every

phase

pipeline transportation of petro¬
leum products, as well as storage

Charitable

Fund

the

for

Business

University

Prospectuses available
these

mutual

investment

funds

through

firms,

or:

The

•

New

99,000

Company

Plan

93,000-

survey

•

further indicated
time, more than
and medium sized
,

that at the sanje

small

23,500

investors

fund

owned

with

average

value

$2,849.

objectives of this Fund
possible long-term capital and
growth for its shareholders.

Prospectus

upon

request

incorporated

104,000; '

Common Stock Investment Fund

HUGH W. LONG AND COMPANY
Elizabeth

110,000:

1__.

Profit Sharing

Jersey

Lord, Abbett & Co.
New York

—

Chicago

—

Atlanta

—

Los Angeles

112,000 /

____

Corporation.^..

Investment

Aged

160,000

—

income

local

Company

Investment
are

Address.

Organization.173,000:

Insurance

Home

170.000'-.

Fund

Diversified Growth Stock Fund, Inc.

...

332,000

Affiliated

ONE WALL STREET, NEW YORK 5

Name.

since

$852,000

•

Established 1894

if,

112%

-■

almost

\"T

Market Value

BULLOCK

Savings Bank

Manhattan Bond Fund, Inc.

com¬

stocks selected for their investment

largest institutional
as follows^
' >' <

petroleum

Fundamental Investors, Inc.

investors were

Miller has joined the staff

atom

Chemical

vestors has increased

industrial

PETERSBURG,

the

The number of institutional in¬

growth and decentralization which

Fund

market, value of $43,987,39.7% of. the fund's net

assets.-:

20%,

5%, of petroleum markets.
"In

with

years,"

investors
more)

owned

that nuclear energy actually- 000/

only about

1955, institutions

large
individual
(holding 1,000 shares

and
would

now

and

con version,7

admittedly

well.

the end of

advantages."

parallel1 nuclear
power
Fla.—Wil- would
plant developments, actually more
travel would be required and sub¬
of King Merritt & Co., Inc., 576
sequently more petroleum fuel
First Avenue^ North..'"'
would be necessary, further min¬
imizing
the
slight
competition
which may be expected from the
ST.

son

vestors

than offset the slight

threatens

received from

because

would

reflec¬

additional

confidence"

vance

pri¬

shares, which
$2,531,296. Common

this, to 83.6%

holdings

Diversified Investment Fund, Inc.

diversified list of

of mutual fund

Ownership

ruled

possibilities small-sized
and
land vehicles, such

power

;

Chemical Fund

fuel market would be jeopardized.

troleum activity, including

mon

of crude petroleum.

converted

nuclear

tribute."

petro¬

using

now

were

Mr. Colton

new

ffi

aid

are

that

investment

neutron,

the
earth,
in detecting

mutual

into

radiations

devices

Commenting

these

presence

byT the

atom."

Re¬

Atom?", the Radioactive bullets for
marking
publication
devotes
its. entire various
levels, radioactive tagging
April issue to answering the ques¬ of tool bits to detect wear with¬
tion of primary concern
at the out
frequent inspection, and the
April 22-29 Southwest American use of radioactive tracers for im¬
Exposition
in
Oklahoma
City.
proving efficiencies of
drilling
Feature of the Exposition is the
slurries and well acidizing proce¬
"Geneva Atoms for Peace"
ex¬
dures are other examples of ra¬
hibit. National Securities & Re¬
dioisotope applications.:
search
Corporation, New York,
"Liquid level gauges, flow me¬
sponsors * and
manages the
Na¬
Threatened

would

industries.

moderately

built

holdings declined,

March

investment in

function

sources.

the

heating fsteam

holdings

favored

investor

in;- the

stock
of

continued

bonds1

were

amounted

Boston, Mass.

result, holdings of fixed-

marily with
the

Berkeley Street

continued

prices."
a

200

18%

earlier

inherent in the high level of

are

income'

The Parker Corporation

into account the greater risks that

from
dealer.

increase

"has

available

the
♦

vesting

investment

hydrocarbons.

stockholder study released today
automobiles, and locomotives by F. Eberstadt & Co. Inc., man¬
after adding back the
December,
"principally
because
pay
load, ager and distributor of Chemical
1955, distribution of 74 cents from 926,184 at March 31, 1955. There range and speed could not be sub¬ Fund, Inc. showed that in con¬
trast to this belief, some: mutual
realized gain.
was
virtually no change in the stantially increased" and because
funds have wide appeal to insti¬
It was reported that the invest¬ corporation's over-all investment "most authorities agree that the
tutions and large individual in¬
ment policy of Broad Street In¬ position in the quarter and com¬ added cost and radiation hazards

stoek

fund

new.hi^gh mobile, steel, and tire and rubber

the figure 12 months

each

your

end

This compared with
$21.71 at the start of the year and

prospectus

radiation,

dioisotopes and particle accelera¬

poration.

quarter.

business

the

share at the end of

per

represented

fund "Hose

risk

of $23.11

over

:,t£anlNCOME
.

Asset value reached

the

jotporoted
Elective

523,949 at March 31, 1955.

p088ible

and income^

dual

assets

$89,611,127,
a gain from
$81,646,781 at the be¬
ginning of the year and from $69,-

;ome

net

the first quarter were

loi^erm GROWTH of
capital

indicates

i'iff'o

securities

instruments

natural

ration's

8RR

portfolio

sometimes

cently, this procedure has been
improved by using artificial ra¬

Research Cor¬

O i 1

years

detect

presence

Securities &

Under

been

which

Activities,"
just published
by National

work, for
aided for a

survey

has
of

which

of "Atomic

sue

"Subsurface

example,
number

Corporation

Broadwoy, New York 5, New York

11 ^

according to
the April
is¬

eleased at the end of this month.

On March 30, total net assets of

competitive
power f u el,

earnings, thus building up the disbursement of dividend checks
equity and earning power of to¬ totaling more than $2Vo million— tional Securities Series of mutual ters, interface markers and leak
locators
also
utilize*, radioactive
the largest amount of money paid
day's shareholders.
investment funds with combined
Tracing the rise in confidence in dividends by the fund in the net assets of over $280,000,000.
materials;,/ these instruments are
in common stock investing over first quarter of any year of its
now
used
in
connection v with
Robert Colton, manager of the
the past two decades Mr. Long existence.
pipeline transportation and ; pe- *
Atomic & Electronics Division of
troleum storage.
In his report, President Long
predicted that this trend would
- \
National
Securities, says in the
continue. "Today, preservation of also
revealed
that
81%
of the
"In refineries, many unit oper¬
publication that "it now appears
the purchasing power of assets fund's shareholders elected to re¬
ations
have
been
significantly
nuclear energy may eventu¬
ceive
the Jan.
16, 1956 capital
aided by radioisotopes. Fraction¬
and of income is considered to be
ally* penetrate in a number of
gains distribution of 60 cents per
ation, mixing, flow movement and
one of the
most important func¬
share in additional shares of the impressive areas" of existing gaso¬ even constant checks of
cracking
line, fuel oil and natural gas mar¬
tions of capital management." Ex¬
fund, rather than in cash.
and
hydre forming catalyst effi¬
kets.
But, he adds, even if all
ciency are among the operational
vessels, aircraft and all
steam
Broad Street Investing Corpo¬ at
to
which isotopes
con¬
the
start
of the period and plants for power or process and phases

Established J 930
120

itself

radiosotopes is con¬
stantly increasing production ef¬
ficiency and helping to
create
better products.

k
\w-

National Securities &
Research

make

industry is predict¬ amples of such confidence were
ing good business in the years cited, including the fact that an¬
ahead," shareholders were told by nual purchases of common stock
President Hugh W. Long at the by institutional investors are now
annual meeting
of Fundamental 20 times as great as in 1940; and
Investors, Inc., held in Elizabeth, that in the past 10 years the
New Jersey.
number of indivduals owning
Mr. Long referred to the fact common stocks has doubled.
that industry's spending for new
Shareholders attending the
plant and equipment—now at the meeting were given a preview of
rate of $35
pillion a year—was the fund's quarterly report, to be
in

in the form of

atom will

"American

fidence in the long-term future.
"American
businessmen
feel

in-

the

roads

Hugh Long Stresses Business Bet
On
Prosperity in Years Ahead

$250 purchase or an
holding
worth
that

energy

benefits to the pe¬

new

market

each company.

nuclear

is and refinery operations, the atom
is
already saving the industry
troleum industry that should off¬ many millions of dollars. In addi¬
set
the
relatively
insignificant tion to cost saving, atomic energy

By ROBERT R. RICH

Fund,- Inc., into one
simplified accumulation plan for
An

use

bringing

Whitehall

•

Industry Threatened by the Atom?

Corporation

has

.Thursday, April 26, 1956

the

Axe Business

'7'U'i

!':Z

Axe Science Fund
v.f

;

;
■

•

and

the shareholders; at the

usual sharp decline in de-;

their

Federal

slightly;

reserves

from

page

Reports Gains

Jonathan
of

The

report to shareholders,
B. Lovelace, President

Investment

Company of
that total, as¬
sets for the quarter ended March improved over 1954 in spite of
5 ? two months domestic, ;banks.< But this was in- 31, 1956, reached $86,651,104, a increased competition.
:
but the decline has been moderate,
sufficient, and the -reporting -mem-; new
high. Shares outstanding and > i The : following growth
index
so that the index is only 4 points
ber banks as a whole consequently
net asset value per share attained numbers
show
how
favorably
away from the all-time peak of goid or allowed to mature $2.1 foilnew highs.
>
Moore has kept pace with better
Feb. 4.
During this interval all ]ion 0f United States Govern- '
: The net asset figure of $86,651,- known "glamour" stocks:
V
{
the components of the index have
securities.
< .
104 as of March 31,1956, compares
v BASE YEAR —1947-49=109 £
shown a slight downward trench
,.r:
with $54,524,669 on March 31 a
:',t■
• •,) brown-Oen-%
except lumber loadings, which, on
f 'V 7 A ccAt c
- " • *
Nat'l Zeller- ■ eral"
year ago.
Net asset- value per
a
seasonally adjusted basis, have
lo.„ ;-.v, .\
*■;Moora Cash bach Electric
share " was .$9.93,
compared : to
advanced sharply. ••
lVi.
index hasshown

ness

an-

and

.downward

they .also

drew

their,

down

cash and their balances with other

America,

reported

As of

fllOllthS

The Axe-Hough ton weekly busi-

shares ^ withdrawn

../nual meeting May

During the first quarter there

was the

O 'mand1 deposits, so that the mem- :
" .' berbanks were able to; reduce
.

from trading on the American Stock Exchange, if feeCMfnmenda'tiohs by^theboard V
;Of directors .afe approved by

•>

Or i WO

open-endr mutual fund
its

•;

'^ i

Continued

the reporting

1/CbIlllCB

.^yrri-

Corporation will be changed

;* : to_an

Tn<W TtAolinAc

I11UUA

Delisted

v
"Axe Sclbrice & Electronics V

i!If-.-.

(2057)

"Number 5528.. .The Commercial and Financial Chronicle

Volume 183

.?■>

u-.r

now*

J-i old

<".h

the shares of the yearatomicage investment

redeemable but
shares,are; sold. ;,,'/
/l it was also reported that .
management is also planning

ji. company.are

,-j'no
.

Tntfll

the shareholders approve the *
■

changes

necessary

mutual fund.
the

change-over,

and

believe that

In explaining

proposed

directors

the net

increase

as¬

sets available for investment
'

benefit the corpo¬

thus

/and

ration and shareholders.

States

United

curities
'

of'

$146,478,998
This

.'1956.

March

31,

high

record

new

Se¬

assets

net

equivalent to ./$44.24 per
on
the corporation's out¬

•and

Foreign

reports

Corp.

standing stock. It compares with
net assets on Dec. 31, 1955 of

($128,950,171, which was equal to
$38.95 per share and with an asset
i value * per' share; of ,; $36.98
(ad¬

■

v *

display a declining tendency.
prices have declined, allowing
for
seasonal variation.
Print cloth prices have also deCotton

clined, so
advantage

mills

running on
be in . a
position,
temporarily
at'
since sheeting prices have
though
ings

well

appear

Net asset value per share at the
quarter's end* was $35.62 which,

together with a special capital
-gain distribution of-84 cents in
sheet- February, is equivalent to $36.46
better compared with a net asset value
least, Per share of $28.71 last year.: -

has been little
manufacturers, al-

there

maintainedJfri'-

been

Major portfolio changes during
the quarter were;

The industry generally,
justed for three-for-one split) on
how- Purchases ;
'
» '■•
31, 1955.
Common stock ever,-continues to complain bitcompany—
'•
Bought
investments held by the corpora¬ terly about Competition:from Ja- Aluminum Co..of Amer.__.—
11,600
tion on March 31 represented the pan. Rayon goods prices have also American Home Products—;
^
American Natural Gas
14,500
following approximate ■ percent- shown a moderate further decline, Armc0 steel corp.—.—
10,000
ages
of total (.assets: oil 45%; and prices on some of the other Comm. Edison Co
——
10,000
synthetics have recently .come
w!wo
^chemical and drug 16; metal and

*'< March

reached
share

14-(. manufacturing. and

miscellaneous

>9;

merchandising

5; electric utility 2; natural gas 2.

D. S. Reports

I
;1

Net income of Investors Diver¬

sified Services, Inc. and

undistrib-

uted

income

net

subsidiaries

owned

its

for

wholly

the

first

quarter of 1956 amounted to $3,162,107 or $2.18 per share, com¬
pared with $3,052,810 or $2.10 per
share for the same period of 1955,

according to unaudited figures re¬

The 1956
earnings include realized profits
from investment * transactions of
$346,799 or 24 cents per share
compared with $374,893 or 26 cents
per share in the comparable pe¬

leased by the company.

i
•

riod last year.

down.

New

■

The outstanding

business devel-

opment of the first quarter has
undoubtedly been the huge volume of new construction reported
with

(a)

respect

Net assets

struction

fabricated

CHICAGO, 111.—Norton Conway
now with A. G. Becker & Co.,

;

Incorporated, 120 South La Salle

<.
-

Street, members of the New York
Stock Exchange. Mr. Conway was

previously

with

E. F. Hutton

public util-

structural

have

steel

nearly double the total reported
at the end of 1954, despite high
production and shipments.
for lumber are

prices gnd
other construction material

factor

some

costs

highs.

have reached new

market is unthe general

The expan-

commercial, industrial, and

agricultural loans, seasonally adjusted, has gathered speed.
loans

estate

have

Real
their

resumed

advance.

The net result of this huge demand for bank credit has been,

rise of
$1.1' billion in commercial, industrial and agricultural loans (gross,:
the

Company.

first

quarter alone, a

unadjusted for seasonal

$0.2 billion, and other loans a like
amount. Brokers' loans have de$0.4 billion, leaving a net
in the total

clined

15,000

011 Co

fjooo
ls.soo

Gypsum Co
.

„

romnflnv_

Amtrlcan

qo]d

'■

Tobacco

10,00o

120,000

Edison Co

Detroit

united

10,000

increase of $1.0 billion

Fruit

15,000

co.__

President
Securities Corpora-

Abraham S. Karasick,
0f the Peoples

tion, announced that the net assets of the mutual fund reached

AND

Joins Moseiey Matt

The Keystone
50 Congress

CHICAGO,
'

111.

—

has joined the

£dd

„

William
T

1QK

„

Cnl)a

Robert W. Baird & Co.

ten

EATON & HOWARD
STOCK FUND

EATON

Funds.

Name

Addrcu

prospectuses

D-157

HOWARD

ESTABLISHED 1924

State

comparative lack of interim
The market for the

information.

2,145,056 common shares is also
comparatively thin.
Incoming orders are running
;

of ;

year : ago

the
and

same

the

period a
longer-term

bright.
continuing its
expansion program to keep up
with the increased ' demand for

future
The

extremely

looks

company

■ —■—..u

;

...

with the developments in automatic office maits products and
chines

and

equipment, . an even

greater emphasis--is put on
use of business forms.Moore

the

has
continually been a leader in busi¬
ness
form research and ^we be¬
lieve a continuation of its excel¬
lent growth record seems assured.
was maintained in the first quar¬
In my opinion, Moore Corpora¬
ter.
Aside from month-to-month
tion, Limited, has all of the char¬
irregularities, good
business is acteristics of a "growth blue
expected to continue during the
chip" and as such, is entitled to
year.
a
much greater capitalization of
earnings in comparison with other
Investors -Syndicate
equities in the market.
management

Reports for 1955
assets

Net

Investors

Syndi¬

America, Inc., whollyowned subsidiary of Investors Di¬
versified Services, Inc., climbed to
a

record

high

$376,858,328 at
increase

the close of last year, an
of

$55,509,309

Halsey, Stuart Group
Offers Utility Bonds
Halsey,. Stuart
manager

Co. Inc., as

of an investment

bank¬

stood'at

over

$361,431,464 at the

Jin8'

Dealer

the above.

ing fronv 1^01,67% to par;

plus ac-

The increase of $51,- crued interest jri each case.
159,959 for the year included $10,The net proceeds from the fi318,891 provided from earnings of nancing will be used by the comthe company.
;
pany for its 1956 construction proNew certificates issued during gram and for other corporate purthe year had a maturity value of poses. Expenditures in connection
$247,716,760. The number of cer- with the construction program for
tificate accounts increased to 288,- this year are estimated at approx498, or 21,624 over the 266,874 re- imately $5,644,000. Major items of
ported at the end of 1954. Total construction include liquefied pematurity value of certificates out- troleum gas facilities; distribution
standing rose from $1,438,719,468 mains; customers'
services, and
to $1,573,364,017, the highest yearmeters and regulators,
end.

end

amount reached

„

in the com-

history.

(Special to The Financial Chronicle)

SAN FRANCISCO

—

Prospectuses from your Investment
City....

Russ

BOSTON

4f e r r e d
4f erred

King Merritt Adds

INCORPORATED

24 Federal Street
—

......

and fixed

cash

and "b r
andr

fore¬
sees no change in nearby prospect
from
the
high-level plateau of
over-all business activity which
Whitehall

pany s

Managed by

describing
Organization and the shares of your
me

Moseley & Co., 135 South La Sa e
Street.
He was formerly with

EATON & HOWARD

year

staff of F. S.

Street, Boston 9, Mrss.

Please send
your

Company

-bonds
bonds

held

stocks and 50% in common stocks.

serves

(special to the financial chronicle)

BALANCED FUND

COMMON STOCK FUNDS

50%

income

The

market

the previous ing group on April 20 offered
approximately $750,000 on March
$3,350,000 of Portland Gas & Coke
year-end total of $321,349,019, Jo¬
31, 1956, representing an increase seph M. Fitzsimmons, Chairman of Co. first mortgage bonds, 4%%
due
April
1,
1976„;; at
of 33% over the $562,111 reported the board and President of ISA, series
on Dec. 31, 1955. The net asset disclosed in the company's 1955 101.67% and accrued interest, to
yield 4.25%.
The underwriters
value per share, after dividend annual report.
won award of the bonds at com¬
payments of 7c from income and
Net income increased to $2,816,13c from securities profits, was 696 as against $2,020,755 the pre¬ petitive sale on April 19 on a bid
of 99.61%.
$14.11 as compared to the Dec. 31,
ceding year and was added to the
1955 value of $13.04, an increase
The bonds are to be redeemable
earned surplus as were also the
°*
*0r
ttiree~mondl 1954 earnings. Capital and sur¬ at regular redemption prices rang¬
ing from 105.67% to par, and at
Penocl*
plus at the year-end totaled a rec¬
.
.
c
^
ord
$12,564,757.
Certificate re- special redemption prices reced-

Custodian Funds
BOND, PREFERRED

roughly

cate-

reoples Keports

12%

1955.

179 %
around

158203

$1.45 last year. Dividends are
payable in United States funds. One disadvantage to the stock

ahead

31,

continued

190
175;

$7,777,179 at the

March

assets

;

175

paid last year. How¬
dividend has been in¬
creased every year-end.
On an
adjusted
basis,
dividends have
doubled from the 72 cents in 1946

quarter, up from $7,124,420 at Dec. 31 and from $5,-

855,031

the

of the

end

14,200

westinghouse Eiec. Corp

variation).'

Real estate loans have advanced

Keystone

Orders

higher than ship-

Lumber

sion of

re- •

continued to expand and are now

ments.

seaboard

gX"rmS?i.,.forp--

the F. W. Dodge Industrial Rayon Corp—
unfilled orders for ^trer(%"0Uiec&:::::~:::::

outlook, Axe reports.

(Special to The Financial Chronicle)

with

lty, and other nonresidential con-

favorable

(b)

spect to public works

corporation

SS'Snn
phinipT Petrol. co.„J^>JIZ~I-I 12^00

^f°lk &

about

\ 189

128

was

ever,.

of the balanced mu¬

tual fund totaled

15,000

"Engineering

contracts,
by
the
News-Record," and

The tight money

Joins A. G. Becker

engineering

Zinc

Jersey

increase

recent

cents

from

175
"

243

202-

204

188

275

times last year's $3.50 earnings,
Compare this with current price
earnings ratios of 18 times for National Cash, 20 times for Crown
Zellerbach and almost 28 times
for General Electric,
The current dividend yield is
modest. One dollar and forty-five

of $12.63 a
The figure

31.

$45; Moore is selling at only 12.8

March 31, 1955.

over

(mining

value

asset

high

March

sented

Fund

new

176

Book Value214

$12.18 at the first
of the year and, after adding back
the December distribution of 71
cents from realized gain, repre¬
was

•

Whitehall

970,265 a year ago.

•

—

Nerincome

assets of $819,-

Index

Operating Profit

$1*068,-

ne*

fering of shares will main¬
tain

■

management
continuous of¬

■/■?*'

make

:the corporation an open-end
,

$8.51. During the 12 months pe¬
*V" >' riod since March
31, 1955, shares
<jj"| A/CO
i1'
outstanding increased to 8,725,888
^17AiUlWIA . ; ( : from 6,404,909.«;
-

Sales

price index has advanced sufficieritly to cancel all the JanuaryFebruary decline. The advance is
Massachusetts Investors Trust,
Net
income
for
the
three
attributable to a new high in steel the nation's oldest open-end in-:
months ended March 31, 1956, not
scrap prices and an upturn in cop- vestment company, for the three
including profit or loss on sales
per scrap.
months ended March 31, 1956 reof securities, was $565,434, equal
In
London,
however
copoer P°rts 29,992,364 shares outstanding to approximately 6.6 cents a share
prices have declined, 'although owned
by 137,403; shareholders on the average number of shares
there has been little change in the
outstanding (8,540,716) during the
SpR *1?
asse*s °*
outlook except a slump
in the 286,513.
period.
This compares with net
American automobile industry and
These are recora high figures income of $368,214, or approxia
considerable period free from for
the end of any quarterly mately 6 cents per share on the
strikes.
'
;
•
period in the trust's 32-year his- average number of shares out¬
(6,170,939)
during the
The semidurable goods raw ma- ^Ty and compare with 28 557,537 standing
terial price index has continued ?
outstanding, 125,669 share- same period in 1955.

other. features. if

and

gram

The durable goods raw material '

;

insured investment pro-

•

new

SatOlM!! BrOS. PlaCCS
pa(J< Qq Contracts
■ !■**■ ww

Salomon Bros. & Hutzler has
negotiated the direct placement of
$17,575,000 Southern Pacific Co.
has recently been with Van Strum 3%-3.30% conditional sales con& Towne, Inc. and prior thereto
tracts maturing April 1, 1957 to
was with Julien Collins & Co. and
April 1, 1971, it was announced
Goodbody & Co.
today (April 26).
,

CHICAGO, 111.—Robert B. Jarchow has joined the staff of King
Merritt & Co. Incorporated.
He

The Commercial and Financial
Chronicle...

(2058)

Securities
Abundant Uranium,

* INDICATES

Now

Inc., Grand Junction, Colo.

•

March 30

3,000,000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share.
Proceeds—For mining expenses.
Office—319 Uranium
Center, Grand Junction, Colo. Underwriter—Ralph M.

(letter of notification) 150,000 shares of cord*
mon stock (par 10 cents).
Price—$2 per share. Proceeds
—For purchase of property, etc.
Office — Brigantine,

Davis &

York.

Co., Grand Junction, Colo.

Adirondack Uranium & Mineral Corp.
March

(letter of notification) 300,000 shares of class
(par 10 cents). Price—$1 per share. Proceeds—
For prospecting and exploring costs and equipment. Office—115 Main Street, Whitesboro, N. Y. Underwriter—

{

for

tures due 1966.

Allstate

•

Fire

Corp.,

Co., RKO Pictures

Casualty Co., Orlando, Fla.
March 29 (letter of notification) 15,000 shares of common
stock (par $5) being offered for subscription by stock¬

Atlas

.Columbia General Investment
Corp.-'."?
March 29 filed 100,006 shares of common stock
(par
to be offered for
subscription by stockholders

—A

Corp.
'

cumulative preferred stock

Feb. 15 filed 175,000 shares of class A

$1).

Price —$10

share.

per

Rex Laub and Max

stock (par
Together with
shares of common
common

Proceeds

other

funds, to purchase 1,000,000
(par $1) of American Frontier Life Insurance Co.
Underwriter—None.

stock

American Insurors'
Feb.

Price

filed 400,000

—

shares of

$2.50

per share.
Office

business.

Development Co.
(par $1).
expand service
Underwriter —

Co.,

(par $20)

American

Inc.

(5/7)

20,000 shares of $1.75 cumulative con¬
vertible preferred stock
(par $10) to be offered for sub¬
scription by common stockholders on the basis of two
preferred shares for each 11 common shares held.
Price
—$40 per share. Proceeds—To enable

company to write
a larger volume of
insurance premiums. Underwriters—
Harold E. Wood &
Co., St. Paul, Minn., and J. M. Dain
& Co., Inc.,

($10 per share).
Proceeds—For
working capital. Office—1355 River
Road, Eugene, Ore.
Underwriter—None.

and

registered

$1,500,000 of 5%

coupon

bearer bonds.

Price

2022, Tampa, Fla.

filed

Mines, Inc.
$900,000 of 8%

convertible

Underwriter—None.

;•

Price—$38

per

share.

common

Proceeds—To

retail

ceeds—Together with funds
new

bonds, to retire

tures.

Underwriters

First Boston Corp.

from

sale

bank loans and
—

Blyth
.

&
.

(4/30)

notification) $180,000 principal amount
convertible debentures due
April 15, 1966. Price
—100% and accrued interest. Proceeds—For
mining exof 6%

Private Wires

all

offices

Chicago

Cleveland

penses.

Office—608-610 Equitable Bldg.,
Denver, Colo.
Underwriter—Columbia Securities
Co., same city.
Coastal Chemical
Corp., Yazoo,

common

stock.

($25 per share). Proceeds—Together with
bank loans, to be used to
construct and operate a fer¬
tilizer plant.
Underwriter—None.

Underwriter—Keim &

Vegas,

are

offered

convertible
basis

for

preferred

one

subscription
stock

new

and

for

one

holders

stock

the

common

each
new

three

share for each

eight
stock held.
The remaining
12,805
preferred stock are to be offered in ex¬
change for the 5% preferred stock on a share-for-share
basis;
Price
$10 per share. Proceeds
For
working
capital. Underwriter—Baker, Simonds &
Co., Detroit,
shares

common

—

Mich,

—

; /»■

'•

Crater Lake Mining &
Milling Co., Inc.
March 8 (letter of notification)

stock.

Price—50 cents

per

Office

Springs, Colo.
Denver, Colo.

—

575,000 shares of common
share. Proceeds—For mining

1902

expenses.

East

San

Rafael,

Underwriter-— Skyline

Colorado

Securities, Inc.,

Cullen Minerals Corp.

(Texas) (5/1)
(letter of notification) 300,000 shares of com¬
(par 10 cents). Price—$1 per share. Proceeds
—To repay bank
loans, and for expansion and working
capital., Underwriter
Lepow Securities Corp., New
,

March 30
mon

stock

—

York.

Dennis Run Corp., Oil
City, Pa.
»'
Nov. 28 (letter of
notification) 46,000 shares of common
stock (par $1).
Price—$6.50 per share.

Proceeds—To

pay
bank loans and debts; and for
working
Office—40 National Transit
Bldg., Oil City, Pa.
writer—Grover O'Neill & Co., New York.

Doctors Oil

Miss.

March 22 filed 399,986 shares
of class A

Price—At par

stock

it Crampton Manufacturing Co.
April 24 filed 137,14 shares of 6% cumulative converti¬
ble preferred stock (par
$10), of which 125,009'shares

preferred stock held and

■

incident to mining operations. Address

expenses

Nev.

addi¬

;

common

it Copperhouse Uranium, Inc., Reno, Nev.»
April 16 (letter of notification) 3,000,000 shares of capital
stock (par one cent). Price—10 cents
per share. Proceeds
—For mining-expenses.
Office—139 North Virginia St.,'
Reno, Nev. Underwriter—Cappie L. Hannon, Las

;

(par $5) and 80,000 shares of class B common stock
(par
50 cents). Price—Of class A
stock, $12.50 per share, and
of class B
stock, 50 cents per share. Proceeds—To in¬
crease capital and surplus.
Office—Alexandria, La. Un¬
derwriter—None.

175, Phoenix, Ariz.
Co., Denver, Colo.
<

Under¬

$16,000,000 of
for capital expendi¬
Co., Inc.,'; and The

Cherokee Uranium
Mining Corp.
April 5 (letter of

Pittsburgh

.,/■

Inc.,

—P. O. Box

concern.

•

San Francisco

Statement effective March 30..

/ —For

stock (par

open

—

effective

Copper Corp., Phoenix, Ariz.
*
(letter of notification) 1,200,000 shares of com¬
mon stock.
Price—At. par (25 cents per share). Proceedi

California Oregon Power Co.
(5/2)
April 9 filed 70,000 shares of cumulative
preferred stock
(par $100)*. Price—To be
supplied by amendment. Pro¬

Boston

become

Jan. 27

•

Philadelphia

Mengel stock has been
least 90% of the Mengel stock outstand¬

Continental Equity Securities
Corp.
filed 40,000 shares of class A

subordinated

—

stock, $50 per share; and of notes and
bonds, 100% of
principal amount. Proceeds—To reduce
bank, mortgage
loan, or other
indebtedness; and for working capital.

New York

City, N. J.

Underwriter—None.

California Oregon Power Co.
(5/8)
April 9 filed $16,000,000 first mortgage bonds due
May 1,
1986.
Proceeds—Together with funds from sale of $7,000,000 of preferred stock, to retire bank loans and for
capital expenditures. - Underwriter
To be determined
by competitive bidding. Probable bidders:
Halsey, Stu¬
art & Co. Inc.;
Blyth & Co., Inc., and The First Boston
Corp. (jointly); Lehman Brothers; White Weld &
Co.;
Merrill Lynch, Pierce, Fenner & Beane and
Kidder, Peabody & Co. (jointly). Bids—Expected to be received
up
to 8:30 a.m.
(PDT) on May 8.

notes;
—

tional

Under-

debenture

offer

Proceeds—For investment. Underwriter
—Continental /American Management
Co., Inc., Jersey

(R. H)

stores.
Business
Supermarket
Office—5301 Northwest 37th Ave., Miami. Fla.
writer—None. Statement effective March 7.

company or by

convertible

Box

$25).

• Associated Growers, Inc.,
Seattle, Wash.
April 20 filed 5,703 shares of common
stock; $2,000,000
of
25-year 5%

The

holdings

offering price.

B-Thrifty, Inc., Miami, Fla.

Finance Co.,
Phoenix, Ariz.
Sept. 16 filed 78,006,081 shares of common
stock to be
offered for
subscription by holders of life insurance
policies issued by Public Life Insurance
Co. Price—20

writer—None,

pro¬

competitive

March 30 filed 300,000 shares of
capital stock (par $1).
Price—At net asset value plus a premium of 5% of the

Oct. 19 (letter of notification)
9,000,000 shares of common
stock (par one cent). Price — Three cents
per share.
Proceeds—For exploration and development costs. Office
—206 North Virginia St.,

Nov. 23 filed 37,000 shares of class A

Public

salesman of the insurance
firm.

Jersey City, N. J.

Price—100% of principal amount.
Proceeds—To make additional cash
payment on purchase
contracted and for mining
expenses.
Office—Salt Lake
City, Utah. Underwriter—None.

Corp., Eugene, Ore.
notification) 4,568 shares of capital

Proceeds—For working capital.
sales to be directly by the

shares.

Container's

Continental American Fund,

debentures due 1976.

Plastics

cents per share.

Mengel

ing.

Blue Lizard

(letter of
Price—At par

Arizona

two

increased to at

Jan.

Minneapolis, Minn.

stock.

construction

115,276 shares of common stock (par $16)
being offered in exchange for common stock of The
Mengel Co. at the rate of one Container share for each

Birnaye Oil & Uranium Co., Denver, Colo.
^
April 6 (letter of notification) 1,000,000 shares of class
A common stock
(par five cents). Price — 10 cents per :
share. Proceeds — For
mining expenses. Office — 762
Denver Club Bldg., Denver, Colo.
Underwriter—Birkenmayer & Co., Denver, Colo.

Casualty Co., St. Paul, Minn.

April 18

for

and

determined

Container Corp. of America

when

filed

• Architectural

•

Co., Tampa, Fla.
April 3 (letter of notification) 250 shares of common
stock (par $1).
Price—$100 per share. Proceeds—For
building, inventory and; corporate business. Address—

—

March 9 filed

(letter of notification) 9,300,000 shares of com- >
stock (par one cent). Price—Three cents
per share.

^ Bingham

working capital. Office—Minneapolis, Minn. Underwriter
—Carl M. Loeb, Rhoades &
Co., New York.
Anchor

loans

March 28

to be offered in units of one class
A share and one-half class B
share. Price—To be sup¬
plied by amendment. Proceeds
To discharge certain
obligations and for construction of new centers and

March

bank

Underwriter—To

bidding. Probable bidders: The First Boston Corp. and
Halsey, Stuart & Co. Inc. (jointly); Morgan Stanley &
Co. Bids—Expected to be
opened on or about May 22.

Reno, Nev. Underwriter—Mid
America Securities, Inc., Salt Lake
City, Utah.

(par 10 cents)

Underwriter—To be named.

snorc-term

gram.

Big Ridge Uranium Corp., Reno, Nev.

April 16, filed 200,000 shares of class A common stock
(par 10 cents) and 100,000 shares of class B common
stock

ital, etc.

Underwriter—Lamey & Co., Boulder, Colo.

■

Shopping Centers,

Commonwealth Life Insurance Co.,
Tulsa, Okla.

repay

Hemingway Invest¬

Co., of Las Vegas, Nev.

Proceeds—To be used for exploratory work on
mining
Office—1424 Pearl Street, Boulder,

Co., New York.,,
•

preferred stock to

• Consolidated Edison Co* of N. Y., Inc.' (5/22) i
April 24 filed $30,000,000 of first and refunding mort¬
gage bonds,; series L} due.:May 1, 1966. .Proceeds—To

Laub, of Tremonton, Utah, and M. D.

Feb.

cents).

•

£•

March 28 filed 70,000 shares of common stock.*
Price—To
be supplied by amendment. Proceeds—For
working cap¬

Las Vegas, Nev.

mineral properties.
Colo.

Proceeds—To repay certain obligations. Office — Min¬
neapolis, Minn. Underwriter—Carl M. Loeb, Rhoades &

;.ir:

mon

•

Tex.

be offered to shareholders
period of 30 days and then to others. Price—At par
($50 per share). Proceeds—For working capital. Office
—Equitable Bldg:, 421 S; W. 6th Ave., Portland 4, Ore.
Underwriter—None, i ' *
'•
■:' /J; : I

Big Horn Mountain Gold & Uranium Co.

American Shopping
Centers, Inc. (5/7)
April 16 filed $2,000,000 of 5% convertible debentures
due May 1, 1968. Price—To be
supplied by amendment.

Columbia

-—

Feb. 23

Birmingham, Ala.
Odess, Martin & Herzberg, Inc., Birmingham, Ala.

stock

(letter of notification) 5,912 shares of 6% cu-/

mulative

for

stock

common

Proceeds—To

—

including

Commonwealth, Inc., Portland, Ore.*

Big Dollar Food Stores, Inc.
April 9 (letter of notification) 25,000 shares of common
stock (par $1). Price—At market
(about $2.50 to $3 per
share). Proceeds — To selling stockholders. Office—42
East Post Road, White
Plains, N. Y. Underwriter—Baruch
Brothers & Co., Inc., New York.

—

only. Price
Proceeds—To make

share.

per

Life

March 23

/' /0/;V

Investment

Close Mortgage & Loan Co. and Jack
ment

$4.50

T..;.

$1)

'■■'"'■•/J

exchange for preferred stock. Proceeds—For payment of
loans, and for capital and surplus. Underwriters—

Corp., Memphis, Tenn.'

investments,

Insurance;'Co. Office
Houston,
Underwriter—None.
•!/•;/

common;

and New

American Frontier

maximum

additional

General

bank

York, N. Y.

/
1
(par one

stock

common

common;

share; to public, $20 per share. Proceeds—For working
capital. Underwriter—Goodbody & Co., Orlando, Fla.,

Diego

(5/21)

;

Jan. 9 filed 20,800 shares of class B common
voting stock,
of which 12,000 shares are to be offered for
public sale
at $50 per share and 8,800 shares are to be offered in

holders of record April 18 on a l-for-10 basis; rights to
expire on April 28. Price — To stockholders, $19 per

San

preferred stock.

Underwriter—Wagner & Co., New York.

American

Oil

Uranium, Inc.

■

•

which will become issuable upon and to the extent that
shares of common stock are convertible into shares of

Price—$2 per share. Proceeds—For
Office — 62 Third Avenue, Mineola,

working capital.
L. I., N.

-/*/V •'r■V-* •'/"■'',

000 shares of 5%

com¬

stock (par $1).

mon

REVISED

purposes.
Office—Montrose, Colo. Underwriters—Gen¬
eral Investing
Corp., New York; Shaiman & Co., Denver?,
Colo., and Honnold & Co., Oklahoma City, Okla. ;
;
f

•

one share for each share of Albu¬
four shares for each 5.25 shares of
RKO common; 2.4 shares for each share of San Diego/
common; 13 shares for each share of Wasatch cumulative '
preferred; and 1.3 shares for;'each share of Wasatch
common.
The registration statement also covers
1,250,-

Office—Alexandria, Va. Underwriter—Seaboard Se¬
curities Corp., Washington, D. C.
Properties,? Inc.
(letter of notification) 150,000 shares of

...;. v

Wasatch Corp. on the following basis: Four shares
one of Atlas common,*
2.4 shares for one share of

querque

etc.

March 29

Corp.

Airfleets

Price—At par. Proceeds—For expansion,

ITEMS

ISSUE

cent). Price—40 cents per share. Proceeds—For explora¬
tion and development
expenses and for general corporate

Feb. 28 filed 9,890,095 shares of common stock (par $1>*
to be issued pursuant to an agreement of merger with
this corporation of Airfleets, Inc., Albuquerque Asso¬
and

^Alexandria Steel Fabricators, Inc. (4/30)
April 13 (letter of notification) $250,000 of 7V2% deben¬

■>,'/

ciated

Investments, Sherrill, N. Y.

Nov. 9 filed 2,500,000 shares of

Underwriter—Pearson, Murphy & Co., Inc., New

Atlas

A stock

V. T. Smith

Colohoma

ADDITIONS

SINCE
•

Atlantic County Development Corp.

Feb. 23• (letter of notification)

Thursday, April 26, 1958

filed

Price

Corp., Carrollton, Tex.

500,000 shares of
—

capital.
Under-

$1 per share.

capital, to be devoted

mainlv

common

Proceeds
to

developing and operating oil and

stock

—

For

accniiring
gas

(par

working

pxplnring.

properties; and to

Volume 183

Number 5528

The Commercial and Financial Chronicle

...

Duke Power Co.

pay off $13,590.80 liabilities. Underwriter — James C
McKeever & Associates, Oklahoma City. Okla.
■
*'

March 30 filed

Corp., Fort' Collins,

Douglas

to be

Colo.

(5/7)

367,478 shares of

Eastern Corp., Bangor, Me. (5/1)
April 9 filed $4,090,200 of convertible subordinated de¬
bentures due May 15, 1981, to be offered for
subscription
by common stockholders of record May 1, 1956, on the
basis of $100 of debentures- for each nine shares of com¬

stock (no par)
by common stockholders

offered for subscription

common

March 26 (letter of notification) 2,997,800 shares of com¬
mon stock (par one cent)Price — 10 cents per share;

of record

Proceeds—For mining expenses.

rights to expire;

lege Ave., Fort Collins, Colo.
Securities Co., Denver 2, Colo.

Proceeds—For construction program.
N. C. Underwriter—None.

•'

May 3, 1956 at the rate of one new share for
(with an oversubscription privilege) ;
on May 21, 1956.
Price—$25 per share.

each 25 shares held

Office—155 North Col¬
Underwriter — Columbia

/'t:

stock held; rights to expire on May 15. Price—At
(flat). Proceeds — Together with funds from sale of
$10,000,000 of senior notes to institutional investors, to
repay
outstanding indebtedness, to construct a new
bleached krait pulp mill at a cost of
$10,000,000, and to
mon

Office—Charlotte,

par

Duke

Power Co.

(5/1)

Eagle Fire Insurance Co.
Feb. 1 (letter of notification) 72,565 shares of common
stock
(par $1.25) being ■ offered for subscription by

;

March 30 filed $30,000,000 first and refunding mortgage
bonds due 1986.
Proceeds—For payment of short-term

borrowings

for

and

construction

expenditures. Under¬
writer—To be determined, by competitive bidding. Prob¬

stockholders
shares held

May 1' at Room 1306, 48 Wall St., New York 5,^ N. Y.

one

for

each

acquire

share.

per

80%

in the capital stock of Ascot
Corp. for $1,000,000. Business-^
Manufacturer and seller of paper and pulp. Underwriter
—White,; Weld & Co., New York.
■/
/
an

Chemical

five

of Feb. 27; rights to expire on April 27.

Price—$3.60

basis

the

able bidders:

Halsey, Stuart & Co. Inc.; The First Boston
Corp.; Morgan Stanley & Co.; Stone & Webster Securi¬
ties Corp; Bids—To be received up to 11 a.m; (EDT) on

(2059)

Proceeds—For working capital.

interest

& Adhesives

• Edo
Corp. (5/2-3)
"
'
' V
April 2 filed 160,000 shares of class A stock (par $1).
Price
To be supplied by amendment. Proceeds — To
finance expanded production, to reduce indebtedness and
:

Office—26 Journal

writer—None.

Square, Jersey...City 6, N. J. Under¬
'

■

S-y

■

—

for

general corporate purposes. Office—College Point,
I., N. Y.' Underwriter—Paine, Webber, Jackson &
Curtis, Boston and New York.
r
'

::V.«

it Ekco Products Co.

April 26 (Thursday)

•

Cincinnati

••■'.'y .V;: y:

Enquirer, Inc._~--_^_:

—Debentures
J;';(Bids' noon,. CST); $1,476,000
■ V-

Hawaii

(Territory

V'; v >

(Bids

of)_

EST)

a.m.

$7,500,000

May 14

Ekco Products

•.

Co._l_—

>.<

common stock (par $2.50).
supplied by amendment. Proceeds—To a
trust.
Underwriters — Lehman Brothers and

Price—To

.Common

^—...

V-May 15

(5/14)

April 23 filed 50,000 shares of

Shearson, Hammill & Co.
50,000 shares ■
^
:

(Monday)

'(Lehman Brothers and

--.Bonds

{

private
;;

Shearson, Hammill &' Co., both of New York.

(Tuesday)

El Paso Electric Co. (5/1)
April 10 filed 20,000 shares of cumulative preferred stock
(no par).
Proceeds—About $2,000,000—to repay bank
loans.
Underwriter—To be determined by competitive
.

-•vd:-'.;

.-'vrApril 27

•

Trust

Calif

Savings Bank,

i 4

;

General

————^.i^-Tommon
>

..^(Offering to stockholders—to be underwritten by Dean
Witter & Co., Blyth & Co., Inc., William R. Staats &
a
''. : / . J
Co. and Dewar & Co.) $1,339,200

Nationwide Corp.
(Lehman

Brothers

April 30

;

Bradford

Co.)

(Seaboard

(Lehman

Corp.)

(Columbia

Sierra

Securities

Co.)

(Bids

Fuller

Co.)

(Offering

Electric
to

minority

{

•

(Lapow

Duke

Power

Eastern
•

•

EDT)

a.m.

General

$300,000

;

(Offering to

Simca
to

(Offering

Colohoma
(General

;

Edo

Corp.

Jamaica

Webber,

Water

;:r"; /: ;
Jamaica

May 23

Curtis)

Co., Inc.)

160,003

Corp.

Inc.. and

Co.,

Weeks)

$25,000,000

Kaiser
(The

Boston

$3,285,000

Republic

Commonwealth
':.y.-(Bids

and

Witter

Dean

May 4

American

Duke Power

Rhoades &

Loeb,

(Offering

Debentures

New

Brooks &

Co..

Blair

25,000

Natiorial

Oreson

Power

(Bids 8:30

Aviation

invited)

a.m.

underwritten

Fenner

Co.)

$4,650,0C0

Invited)

Rhoades

(Bids

May 9

(Wednesday)
of

100,000

Co.)

(Monday)

'(Offering to

underwriting)

..(Offering

stockholders—to

White,

Weld & Co.)

41,530

(Bids

a.m.

EDT)

it Frigikar Corp., Dallas, Tex.
18 filed. 104,500 shares of common stock (par 50
cents). Price—To be supplied by amendment. Proceeds
—To selling stockholders.
Underwriters—Southwestern
Securities Co., Dallas, Tex., and Muir Investment
Corp.,
San Antonio, Tex.
April

Bonds

Mining and Oil, Inc.
(letter of notification) 1,200,000 shares of
.

(Bids

(Wednesday)
invited)

September 11

Debentures

$30,000,000

invited)

General

$15,000,000

..Bonds
$20,000,000

(Monday)

it General

invited)

May 10
Copper
(George

(Thursday)

Corp
F.

Breen)

October 2

Common

$10,000,000

100,000

(Tuesday)

Columbia Gas System, Inc
(Bids to be invited)

Electric Co.

filed

Under¬

(5/15-16)

$300,000,000 of sinking fund debentures
supplied by amendment. Proceeds

—To retire bank loans and for
capital expenditures and

working capital.

Underwriter
Morgan Stanley & Co.
Goldman, Sachs & Co., both of New York.

General
Bonds

Corp.

due 1976. Price—To be

and

Transportation

basis of $100 of debentures for each 10 shares of stock
held; rights to expire on Mrv 9. Price—100% and ac¬

April

(Tuesday)

Tampa Electric Co

American

interest. Proceeds—For* working
capital.
writer—Kuhn, Loeb & Co., New York.

Bonds

invited)

September 25

(Bids

com¬

(par five cents). Price — 25 cents per share.
expenses incident to mining operations.

crued

(Tuesday)

Virginia Electric & Power Co
(Bids

stock

April

$1.662/3).
Lewisohn

Hills

•

invited) $20,000,000

October 1

$4,500,000

Gas

Jan.

April 6 filed $23,810,700 of 4% convertible subordinated
debentures, due May 1, 1981, being offered for subscrip¬
tion by common stockholders ©f record
April 25 on the

(Wednesday)

Savannah Electric & Power Co..

...Common
underwritten

space

Office—Kemmerer, Wyo. Underwriter—Philip Gordon
& Co., Inc., New York
6, N'. Y.

(Bids

447,797

infra-red

capital; for exploitation
and for marketing of "Tropicheater.
Office — Pittsburgh, Pa.

Proceeds—For

$18,000,000

Consolidated Natural Gas Co.

....Common

stockholders—no

Ray"

system;

Bonds

invited)

Corp

July 25

(Wednesday)

Piedmont Natural Gas Co., Inc

Proceeds—For working

"Totosave"

Preferred
be

may

(Bids

•

Underwriter—Barrett Herrick & Co.,
Inc., New York.

•

Carolina Power & Light Co

National Fuel Gas Co

Common

July 11

V*5

Drexel

Bonds

$10,000,000

Florida Power

—-.Bonds

EDT). $30,000,000

Beane;

to stockholders—to be underwritten by William
Co.; The First Boston Corp. and Carl M. Loeb,

......Common
139,523

202,800

Boston Edison Co

(Bids

York

Bonds
'•

Niagara Mohawk Power Corp..
•.

ihare.
of

mon

Co.,a..:.i.i

Corp.__.__;

June 25

New York, Chicago & St. Louis RR. Equip. Tr. Ctfs.
(Bids

v *

(Offering to stockliolders—no underwriting)

Pierce,

Barney

Inc.) $765,000

PDT) $16,000,000

a.m.

Packaging International, Inc.
300,000 shares of common stock (par 10#),
of which 250,000 shares of for account of
company aiul
50,000 shares of five selling stockholders. Price—$3 per

*•

Lynch,

Smith,

Pitt

June 30 filed

(Thursday)

States Life Insurance Co.

{Offering

Common '.

May 8 (Tuesday)
California

South Atlantic Blvd., Los
Angeles, Calif. Under¬
writer—Hill, Richards & Co., Los Angeles, Calif.

Thyer Manufacturing Corp.....Debentures & Com.
(P.

2500

.".

Banking & Trust Co...Common

June 20
United

Common

Inc.)

Merrill

■

Co.,

to stockholders—to be underwritten
Eberstadt & Co.) 1,105,545 shares

(Bids

$2,000,000

Inter-County Tek & Tel. Co...
Republic

J.'

Fort

Indianapolis Power & Light Co

Common

Co.)

$50,000,000

(Wednesday)

stockholders—to

Co.;

(Offering to stockholders—no underwriter) 367,478 shares

(Central

Bonds
to

it Fluor Corp., Ltd., Los Angeles, Calif.
April 16 (letter of notification) 2,500 shares of capital
stock (par $2.50). Price—To be determined at
between
$20 and $25 per share so as not to exceed an aggregate of
$50,000. Proceeds — To a selling stockholder. Office—

.Common
'
"V'

Co
$35,000,000

Ctfs.

(Tuesday)

200,000 units

President of company.

Inc._'_————————Common

First Pennsylvania

and

Shopping Centers, Inc...

(Carl

—„

$9,650,000

Lauderdale, Fla. Underwriter—
Offering will be made through James C. Dean,

None.

$6,600,000

invited)

Airways,

(Monday)

Loeb, Rhoades & Co.)

Shopping Centers, Inc

(Carl M.

Florida Sun Life Insurance Co.
March 16 filed 32,000 shares of common stock
(par $1).
Price—$10 per share. Proceeds—To expand company's
business.
Office—Fort

IncO

Bonds

Brothers)

Edison

(Exchange offer—to be underwritten) $4,025,000

American

Co.,

(Thursday)

June 7

(Friday)

<•.

Sierra Pacific Power Co.__—.Preferred

May 7

(Offering

Co.)"$30,000,000

Evans

Corp

June
Braniff

& Chemical Co._-___Preference

Corp.

Gas

June

a.m. PDT) $40,000,000

(Vickers

;

stock of First of Georgia Fire &
Casualty Co. (to be
formed) and for general corporate purposes. Underwriter
—Johnson, Lane, Space & Co., Inc., Savannah, Ga., for
159,561 shares.

Bonds

Common

Clement

to be Invited)

Cement
'V

are

a selected
group of licensed general in¬
surance-''agents in Georgia and South Carolina. Price—
To be supplied by amendment.
Proceeds—To purchase

$1,000,000

...Equip. Trust
(Bids

"f*.

Co.)

25,000 shares

(Bids 8:30

3'..'(Thursday)v

Aluminum

First

invited)

Ctfs.

May

$30,000,000

Reading Co.

'.•V

(Bids to

remaining 65,439 shares

to be offered to

—.Common

Shaiman

filed

class A share for each five shares of common stock
held
of record May 18, 1956. The

(Wednesday)

and

<['t

..Debentures

_____

Hornblower -&

Co.

May 24
:

Western Maryland Ry.—Equip. Trust

—-...Bonds

28,000

V
'
v
Supply Co..!—.Common

(Blyth &

Pacific Finance
.^(Blyth

Co—

Southern California
j

(Bids 11 a.m. EDT) $3,000,000

Water

•>*

Jackson

Supply

$7,0;.0,000

Banking Co. of Georgia (5/18)'
225,000 shares of class A common stock
(par $1), of which 159,561 shares are to be offered for
subscription by common stockholders on the basis of one

(Monday)

and

—

First Railroad &

April

Florida Public Utilities Co

Corp.)

Johnson,

underwritten

Inc..——

Corp.

....^...Class

——

(Paine,

t"~

Boston

225,810

(Bids to be invited)
:tvi

{(Wednesday) -I'y.

and The First

Brothers)

Uranium,

;

California Oregon Power Co._-^__-.._-Prcferred
Inc.

by
shares

May 22 (Tuesday) ;
ConsoL Edison Co. of New York, Inc.—

underwriting)
■

.Common

underwritten

159,561

'''f"

General brokerage business. Office — 165
Broadway, New York, N. Y. Underwriter—Basic Indus¬
tries Corp., 31 State St., Boston, Mass.

Co.)

stockholders—to

Investing

(Starkweather

(Blyth & Co.,

Business

(Friday)

May 21

1,455,713 French shares

May 2

$15,000,000

Common

Lehman

Common

stockholders—no

Bonds

EDT)

a.m.

Space

•

.Common
1,278,833

Lewis Corp.
(letter of notification) 60,000 shares of 7% pre¬
ferred stock. Price—At par <$5
per share). Proceeds—For working capital and
general corporate purposes.

March 1

$6,225,000

Monterey Oil Co

$2,000,000

———x__-

(Offering

EDT)

noon

First

•

Gas Co...

stockholders—to

Lane,

;

Corp
Co.)

$9,000,000

(Wednesday)

May 18

..^——Preferred
EDT)

am.

(Morgan Stanley &

(Bids

...—..Debentures

(Bids

Preferred

—.

EDT)

a.m.

First Railroad & Banking Co. of Ga

stockholders—to be underwritten
White, Weld & Co.) $4,090,200

Motors

•,;

$116,775

250,000 shares

.-Equip. Trust Ctfs.

(Bids

$30,000,000

El Paso Electric Co.-

Northern Illinois

——.Bonds

Inc.)

Common

Co..

Corp.

(Offering

underwriting)

Corp.)

Co.

$12,500,000

.Common

1—

Securities

(Bids

(Tuesday)

'May 1

Cullen Minerals Corp..

•: ■

Erie RR.

;

....

stockholders—no

EDT)

a.m.

May 16

L-Debentures

$299,000

Co., Inc...

(Bids

Western

Becker

Prefabricators, Inc..'—......Common
(S.

Pennsylvania Electric Co.—

$180,000

bidding. Probable bidders: Merrill Lynch, Pierce, Fen¬
ner &
Beane; Salomon Bros. & Hutzler; Stone & Web¬
ster Securities Corp.; Blair & Co.
Incorporated; Equi¬
table Securities Cor;o.; Union Securities
Corp.; Kidder,
Peabody & Co., White, Weld & Co., and Shields & Co.
(jointly). Bids—Expected to be received up to 11 a.m.
(EDT) on May 1 at 90 Broad St., New York, N. Y.

Common

Brothers and

$250,000

Cherokee Uranium Mining Corp
*

—Debentures

Pennsylvania Electric Co.—————Bonds

$15,200,000

(Monday)

Securities

Murphy Corp.

.........Class A Common

and

Electric

(Morgan Stanley & Co. and Goldman, Sachs & Co.) $300,000,000

Alexandria Steel Fabricators, Inc.—-.Debentures

•

First National
San Diego,

Dubl-Check Corp—
Preferred & Common
:
'
J"(Talmage & Co.) $299,370

(Friday)

—

Motors

Corp. (5/1)
1,278,833 shares of common stock (par
Price—To be supplied by amendment. Pro¬

filed

ceeds—To the Alfred P. Sloan

Foundation, Inc., who is

Debentures
$30,000,000

Continued

page

The Commercial and Financial

Continued from page

debentures due

1971 being offered for subscription by common
stockholders of record April 18, 1956, on the basis of
$100 of debentures for each 23 shares of common stock
held; rights to expire on May 7, 1956. Price—100% of
principal amount. Proceeds—To purchase securities of
subsidiaries and for general corporate purposes. Under¬

writers—Paine, Webber, Jackson & Curtis and Stone &
Webster Securities Corp., both of New York; and Mit-

Angeles, Calif.

chum, Jones & Templeton, Los

(N. J.)f New York
Jan. 18 filed 400,000 shares of common stock (par. 10
cents). Price—$1 per share. Proceeds—For plant facil¬
ities, survey of property and underground development.
Underwriter—None. Maurice Schack, Middletown, N. Yn
/ General Uranium Corp.

is President.

Statement effective March 11.

portion,
ployees.

to 7,500 shares are to he offered to em¬
Price—$8 per share." Proceeds — For general
corporate purposes. Office—2711 Church Ave., Cleve¬
land, Ohio. Underwriter—None. »
iY
-v-f
• Lewisohn
Copper Corp.; (5/10)
■ Y '
March 30 filed 100,000 shares of common stock (par 10
cents). Price—To be supplied by amendment. Proceeds r
—For exploration and evaluation of leasehold
properties,

notification) 3,000,000 shares of capital
atock (par five cents). Price—10 cents per share. Pro- ;
reeds
For mining expenses. Underwriter — Bel-Air ,
Securities Co., Provo, Utah.
Dec. 27 (letter of
—

—

Griggs Equipment Co. capital stock for $1,924,565, and
for working capital.
Business — Public seating equip¬
ment. Underwriter — Southwestern Securities Co., Dal¬
las, Texas.
'

Dec. 30

(letter of notification)

24,000 shares of capital

stockholders; then
Price—$10 per share. Pro*

(par $5) to be offered first to

Stock

policyholders and the public.
reeds—For working capital.
Baton Rouge,

Address—P. O. Box 2231,

Underwriter—None.

La.

Hard Rock Mining

Co.,k

Pittsburgh, Pa.

(letter of notification) 1,000,000 shares of com¬
(par one cent). Price—Five cents per share.„
Proceeds—To purchase machinery and equipment and
for working capital. -Office — 377 McKee Place, Pitts¬
Feb. 20
mon

stock

burgh, Pa.

Underwriter—Graham & Co., Pittsburgh, Pa.

^Hawker Siddeley Group, Ltd. (England)
April 23 filed 60,000 American depositary receipts ($250,000) for ordinary registered shares.
1956 Oil Exploration Capital Fund

Hill & Hill

March

filed

$450,000 of participations 4n this Fund
public sale in minimum units of $15,000.
Proceeds—For payment of various property and explor¬
13

to be offered for

atory well costs and expenses. Business—George P. Hill
Houston Hill are engaged in exploration for and

and

production of oil and gas as a joint venture. Office—
Fort Worth, Tex.
Underwriters — William D. McCabe
and E. S. Emerson, South Texas Bldg., San Antonio, Tex.
Holden

•

Mining Co., Winterhaven, Calif.

April 13 (letter of notification) 250,000 shares of capital
stock. Price—At par ($1 per share). Proceeds—For min¬
ing expenses. Address — P. O. Box 308, Winterhaven,
Underwriter—Arthur B. Hogan, Inc., Hollywood,

Calif.
Calif..

•

Hometrust Corp.,

Inc., Montgomery, Ala.
125,000 shares of common stock (par $1).
Price—$5 per share. Proceeds — To expand operations
of subsidiary and increase investment therein.
Under¬

Jan.

filed

writer—None.

Honey Dew Food Markets, Inc.
March 12 (letter of notification) 200,000 shares of com¬
mon stock
(par 10 cents). Price—$1.50 per share. Pro¬
ceeds—To open or acquire additional super markets and
for working capital. Office—811 Grange
Road, Teaneck,
N.

Underwriter—Brown, Barton & Engel, Newark,

N. J.

ic Hyde Park Cooperative Society, Inc., Chicago, III.
April 19 (letter of notification) 1,531 shares of common
stock.

South

None.

Price—At

Harper
This is

($10 per share).
Office—5535
Chicago 37, 111.
Underwriter—
offering of rescission.
par

Ave.,

fdaho-Alta Metals Corp.
March 7 (letter of notification)

120,000 shares of com(par 10 cents). Price—$1.50 per share. Pro¬
ceeds—For exploration and development expenses. Un¬
mon

stock

derwriter
&

—

Fenner

Corp.

(formerly Fenner-Streitman

Co.), New York.
Industrial

Dynamics Corp., Wilmington, Del.
April 3 (letter of notification) 150,000 shares of common
stock (par $1). Price — $2 per share. Proceeds — For
working capital.
Office—100 West Tenth St., Wilming¬
ton, Del.
Underwriter — World Wide Investors Corp.,
Hoboken, N. J.
Industrial

Minerals Development Corp.
March 7 (letter of notification)
fl.,000,000 shares of com¬
mon stock. Price—Five cents
per share.
Proceeds—For

development and working capital. Office—Moab, Utah.
Underwriter—I. J. Schenin Co., New York.
Installment Finance Co.,
Champaign, III.
April 9 (letter of notification) $100,000 of 5V2%
subordinated debentures and $50,000 of

6y2%

subordinated

debentures.

Price—At par

senior

junior

(in denomina¬

tions of $1,000 each). Proceeds—For additional
operating
funds, expansion of business and to transfer short term

indebtedness

long term. Office—74 East University
Ave., Champaign, 111. Underwriter—Hurd, Clegg & Co.,
Champaign, 111.

•

Fort Myers,

Inc., Chicago, 111.

improvements,

Atomic Devices Corp.

International

F. Breen, New York.
♦

1,000,000 shares of com¬
Price —25 cents per share.
Office—155 West South

(par 10 cents).

because of present

Proceeds—For mining expenses.

400,000 shares of common stock (par 10
cents). Price—$1 per share. Proceeds—To finance ex¬
ploration and development of mining properties of Recursos
Mineros Mexicanos, S. A., Mexican subsidiary#
and to discharge note. Office — Houston, Tex. Under¬
writer—Gearhart & Otis, Inc., New York.
International

Plastic

Industries Corp.

of common
Proceeds—
For advances to Arliss Co., Inc. for purchase of equip¬
ment, etc. Office — 369-375 DeKalb Ave., Brooklyn 5,
if Interstate Oil & Development Co., Reno, Nev.
April 17 (letter of notification) 500.000 shares of com¬
mon stock.
Price—At par (10 cents per share). Proceeds
—For oil development expenses.

ginia St., Reno, Nev.

Office—139 North Vir¬

Underwriter—None.

Underwriter—To be determined by competitive
Probable bidders: Halsey, Stuart & Co. Inc.;
Boston
Corp.; Equitable Securities Corp.;
Kidder, Peabody & Co.; White, Weld & Co.; Union Se¬
curities Corp. and Blair & Co. Incorporated (jointly);
Blyth & Co., Inc.; Lehman Brothers; Kuhn, Loeb & Co.

gram.

bidding.
The

First

Proceeds

J.,'/.*,

"V Manati Sugar Co.
March
due

standing 4% bonds maturing Feb. 1, 1957 on a par-for- /
basis. Unexchanged; bonds may be sold by com¬
pany
at approximately-.the principal amount thereof /
plus interest.
The offer will expire on April 27.
Proceeds—To retire old bonds.
Manville Oil

>•'.

New York.

New York.
• Jamaica Water
Supply Co. (5/2)
April 3 filed 28,000 shares of common stock (no par).
Price—To be supplied by amendment. Proceeds—To re¬
pay short-term bank loans incurred to finance construc¬

tion, and to defray part of the cost of future construc¬
tion. Underwriter—Blyth & Co., Inc., New York.
Jamaica Water Supply Co. (5/2)
April 3 filed $3,000,000 of first mortgage bonds, series F,
due 1981. Proceeds—For construction program. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Blyth & Co.,
Inc.
Bids
To be received up to 11 a.m. (EDT) on
May 2 at the New York Trust Co., 100 Broadway, New
—

Mayfair Markets, Los Angeles, Calif.>/YyY-Yy<V'
March 8 (letter of notification)
5,000 shares of $3 cumu¬
lative preferred stock (par $50) and 5,000 shares of com¬
mon stock (par $1) to be offered in units of one share of.
preferred and one share of common stock. Price—$60 <
unit.

per

Bandini

Proceeds—For working capital.
Office—4383
Blvd., Los Angeles, Calif.
Underwriter—None.

Merchandising, Inc., Tampa, Fla.
(letter of notification) 120,000 shares of

March 23

/f
com-*

stock (par 50 cents). Price—$2.50 per share. Proceeds

—Expenses

for

expansion

of vending machine opera¬
Willow, Tampa, Fla. Under¬
& Co., Tampa, Fla., and
French & Crawford, Inc., Atlanta,, Ga.
.
•
Office—107

writers

—

Mesa

Louis

South

McClure

Oil

& Gas Ventures, Inc.
V
(letter of notification) 900,000 shares of com¬
mon stock
(par one cent). Price —15 cents per share.
Proceeds—For expenses incident to oil and gas proper¬

March 29

ties.

"Isras" Israel-Rassco Investment Co., Ltd.
Sept. 28 filed 9,000 ordinary shares. Price—At par (100
Israel pounds each, or about $55 in U. S. funds), payable
in State of Israel Independence Issue Bonds only. Offlee.
—Tel Aviv, Israel.
Underwriter — Rassco Israel Corp.,:

"Y. *'*

& Uranium

Co., Inc., Douglas, Wyo,
•Feb. 21 (letter of notification) 300,000 shares of common
stock (par 10 cents).
Price—50 cents per share.
Pro- ;;
ceeds—For mining expenses.
Office—308 East Center
St.,; Douglas, Wyo.
Underwriter—Colorado Investment
Co., Denver, Colo.
;
Y
Y
Y (

tions.

To retire bank loans
and
for
construction
program.
Underwriter—To be determined by competitive bidding.
Probable bidders may include Smith, Barney & Co.,

•."r;Y;

•

$2,184,300 of 6% collaterial trust bonds
being offered in exchange for presently out¬

par

tion

stockholders on the basis of one new
share for each eight shares held as of record May 23,
1956. The balance of 22,687 shares represent stock which
may be acquired in stabilizing transactions. Proceeds—

For

filed

1965

mon

common

—

if Iowa Power & Light Co. (5/23) ^
April 25 filed 249,558 shares of common stock (par $10)
of which 226,871 shares are to be offered for subscrip¬
by

Office—421 Glenwood Ave., Grand

Underwriter—Columbia Securities Co.,

Junction, ColoDenver, Colo.
,

Midland General

Hospital, Inc., Bronx, N. Y. *
Jan. 12 filed 24,120 shares of common stock (no par)
and 30,000 shares of $6 dividend preferred stock (no;
par). The company does not intend presently to sell
more stock than is required to raise, at most, $2,700,000.
Price
$100 per share. Proceeds — For construction,
working capital, reserve, etc. Underwriter—None.
i
—

Mineral Projects-Venture C, Ltd., Madison, N. J,
Feb. 7 filed

ited

$4,000,000 of participations in capital as lim¬
partnership interests in the venture to be sold in

minimum units of $25,000.Proceeds—For expenses in¬
cidental to oil exploration program.
eral

Underwriter—Min¬
Projects Co., Ltd., on "best efforts basis."

if Miner's Mining, Inc., Everett, Wash.
April 16 (letter of notification) 1,000,000 shares of com¬
mon stock (par 25 cents). Price—30 cents per share. Pro¬
ceeds—For mining expenses. Office—205 Colby St. Bldg.,

York, N. Y.

Everett, Wash.

if Johns-Manville Corp.
April 23 filed 250,000 shares of common stock (par $5)
to be offered to certain employees of the
company and

Mohawk Business Machines Corp.
March 30 (letter of notification) 167,000 shares of com¬
mon
stock (par 10 cents).
Price—75 cents per share.

its

Proceeds—To

subsidiaries

pursuant

incentive

plan approved by stockholders of the

stock

option

Kaiser Aluminum & Chemical Co. (5/3)
April 11 filed $30,000,000 of convertible preference stock
(par $100). Proceeds—Together with funds to be re¬

ceived

from

direct

placement

of $120,000,000 25-year
$20,000,000 from retained earn¬
ings, are to be used to finance $170,000,000 expansion
program. Underwriters
The First Boston Corp., New
York, and Dean Witter & Co., San Francisco, Calif.

first mortgage bonds and

—

Kassel Base

Metals, Inc.
(letter of notification) 120,000 shares of capital
(par 10 cents), of which 20,000 shares are being
sold by Burt Hamilton Co. and
100,000 shares by Kassel
company.
Price—$2.25 per share.
Proceeds—For min¬
ing expenses. Office—1019 Adolphus Tower Bldg., Dal¬
las, Texas.
Underwriter—First Western Corp., Denver.
Feb.

stock

Underwriter—None.

pay accounts
payable and for working
Office—944 Halsey Street, Brooklyn 33, N; Y.

capital.

company.

Underwriter—None.
Mohawk Silica

Co., Cincinnati, Ohio
(letter of notification) 3,000 shares of 8%
cumulative convertible preferred stock (par $50) and
3,000 shares of common stock (no par) to be offered in
units of one share of preferred and one share of common.
Price
$60 per unit.
Proceeds — For mining expenses
and processing silica. Office—2508 Auburn Ave., Cincin¬
nati, Ohio. Underwriter—None.

March

—

if Monterey Oil Co., Los Angeles, Calif. (5/18)
April 25 filed 225,810 shares of common stock (par $1)
be

offered

common

stockholders

record

about

May 18, 1956, at the rate of one new share for each seven
shares held; offering to extend for a period of approxi¬
mately two weeks. Price—To be supplied by amendment.

Colorado.

Proceeds—To carry on a program of offshore oil

• Laude-Mason Properties, Inc., Normandy, Mo.
April 20 (letter of notification) $300,000 second mort¬
gage bonds. Price—$500 each. Proceeds—To reduce in¬

ration

debtedness

purchase properties.
Office
Bridge Rd., Normandy 21, St. Louis
Underwriter—None.

Natural
Mo.

and

—

8001

County,

;

plant construction; machinery and equipment; to retire
existing indebtedness; and for other corporate purposes.Y
Underwriters
Bateman, Eichler & Co., Los Angeles, Calif; and Dempsey-Tegeler & Co., St. Louis, Mo. / Y",

if Iowa Power & Light Co.
April 25 filed $7,500,000 first mortgage bonds due 1986.
Proceeds—To repay bank loans and for construction pro¬

{}

unsatisfactory- market conditions.Yi

Underwriter—Kamen & Co.. New York.

N. Y.

Price—To be supplied by amendment.

International Metals Corp.
filed

★ W. & p. . Display Mfg. Corp., Afhambra, Calif.
s ;
"April 20 filed 100,000 shares of common stock (par $1).

Temple St., Salt Lake City, Utah. Underwriter—Melvin
& Flegal & Co., Salt Lake City, Utah.
]
Y;
4

;

Long Island Lighting Co-

corporate \

Underwriter—George /

Proceeds—To repay hank loans.
Underwriters—
Blyth & Co., Inc., The First Boston Corp. and W. C.
Langley & Co., all of New York. Offering — Postponed

(letter of notification)

stock

for .general

ment.

International Basic Metals, Inc.
mon

and

April 5 filed 120,000 shares of cumulative preferred stock,
series G (par $100). - Price—To- be supplied
by amend¬

Willow

St., Trenton 8, N. J. Underwriter—
Louis R. Drey ling & Co., Jamesburg, N. J.
North

equipment

Office—Tueson, Ariz.

purposes.

(letter of notification) 59,90i Shares of common
stock (par $2). Price — $5 per share. Proceeds — For
working capital and general corporate purposes. Busi¬
ness—Manufacture of Educational Atomic Kits. Office—
Feb. 21

Oct. 12 (letter of notification) 150,000 shares
atock (par 10 cents). Price—$2 per share.

Guaranty Income Life Insurance Co.

bank loans and for construction program. OfficeFla. Underwriter — Central Republic Co.,

pay

Oct.

•
Griggs Equipment, Inc., Dallas, Texas,
April 12 filed 400,000 shares of common stock (par 500).
Price
$5.75 per share. Proceeds — For purchase of

April 16 filed 25,000 shares of common stock (no par);
Price—To be supplied by amendment. Proceeds—To re-

Jan. 27

Uranium Corp., Buena Vista, Colo.

Golden Dawn

-stockholders of record March 1,1956 on the basis of one
new share for each 4& shards held. Of the unsubscribed

Inter-County Telephone & Telegraph Co.
(5/7-11)

May 1,

;

(letter of notification)^37,500 shared of common Y
stock (par $1) to be offered for subscription by common >.

General

•

Engineering.Co* Cleveland# Ohio

Feb. 24

Nov. 10 filed 100,000 shares of 6%

Telephone Corp.
March 29 filed $50,854,200 of convertible
•

.Lester

Belleville, N. J.
convertible preferred
stock (cumulative if and to the extent earned). Price—
At par ($5 per share). Proceeds—For general corporate
purposes. Underwriter—Alexander Watt & Co., Inc., has
withdrawn as underwriter; new one to be named.
Insulated Circuits, Inc.,

receiving these shares as the result of the death of Mrs.
Alfred P. Sloan, Jr.
Underwriter—Morgan Stanley &

Co., New York.

•

Chronicle..Thursday, April 26, 1950

(2060)

nia

with

The

coastline.

Texas

Co.

Underwriter

explo¬
along the southern Califor¬
—

Lehman

Brothers, New

York.

Mormon Trail
Feb. 9

stock

Mining Corp., Salt Lake City, Utah
(letter of notification) 3,000,000 shares of capital
(par one cent). Price—10 cents per share. Pro-

Volume 183

Number 5528 ...The

Bldg., Salt Lake City, Utah.
Investment, Inc.', Las Vegas, Nev.

eum

■'

Nicholson

Office—223 Phillips Petrol¬

ceeds—For mining expenses.

Underwriter—Frontier

Milling Co., Denver, Colo.

Mountain Top Mining &

notification) 6,000,000 shares of com¬
mon stock (par one cent).
Price—Five cents per share.
Proceeds—For mining expenses. Office—406 C. A. John¬
son Bldg., Denver, Cold.
Underwriter—Columbia Secu¬
rities Co., Denver 2, Colo.

exploration and development expenses and for other
corporate purposes. Business—Crude oil and natural gas;
also liquified petroleum products. Underwriters — Leh¬
man Brothers, New York; and A. G. Becker & Co. Inc.,
Chicago, III.
'
*

)

Mutual Investors Corp. of New York

March 21 (letter of notification) 295,000 shares of com¬
mon stock (par 10 cents),. Price—$1 per share. Proceeds

working capital. Business—To purchase and resell
mortgages and properties. % Office—550 Fifth Ave., New
York, N. Y. Underwriter—Stuart Securities Corp., New

—For

York.:
■

\"{>

National- Aviation Corp., (5/8)
April 17 filed 139,523 shares of capital stock (par $5)
to be. offered for subscription by stockholders of record
on or about May 8, 1956, on the basis of one new share
for eacli four shares held (with an oversubscription
privilege); rights to expire oh or about May 22, 1956.
Price—To be supplied by amendment.
Proceeds—For
j

investment.

Underwriter—None. >—

March 28 filed 447,797 shares of common
to be offered for

stock (par $10)

subscription by common stockholders

May 8, 1956, on the basis of one new share for
each 10 shares held (with an oversubscription privilege);
rights to expire on May 25. Price—To be supplied by
amendment. Proceeds—To be used to purchase common
of record

stock,

for loans to the operating subsidiaries; and for

other corporate purposes.

Underwriter—None.

March 15

■

National Lithium Corp., Denver,

Colo.

(letter of notification) 300,000 shares of common
Stock (par one cent). Price1—$1 per share. Proceeds—
For mining expenses. Office — 556 Denver Club Bldg.,
Dec. 27

National

Underwriter
,

—

Investment Service Co.,

Northern

Metallizing Corp. i

1956

on a

l-for-4 basis.

Prooeeds-^-For vacuum metallizing,
conditioning, slitting and inspection machinery. Office—
1145-19th St., N. W., Washington, D. C. Underwriter—
None. '
\.i
*
'. ■
■

Price—$2 per share.

•

:'if National Motel Credit Corp., Kansas City, Mo.
(letter of notification) 34,650 shares of com¬
(no par). Price—$5 per share. Proceeds—
For working capital, construction of motels, etc. Office
r-715 Lathrop Bldg.* Kansas City 6, Mo. Underwriter
April
mon

stock

—None.

■

.1..'

National Old Line Insurance Co.

Nov.

filed

50,000

shares of class A common stock

(par $2) and 50,000 shares of class B common stock
(par $2)v Price—To be supplied by amendment. Pro¬
ceeds — To selling stockholders. Office — Little Rock,
Ark.
Underwriter—Equitable Securities Corp.. Nash¬
ville, Tenn., and New York, N. Y. Offering—Indefinitely
postponed.

Columbus, Ohio (4/27-30)
class A common stock
(par $5). Price—To be supplied by amendment (expect¬
ed at around $19 per share). Proceeds—For investments.
•

Nationwide Corp.,

March 29 filed 800,000 shares of

Business—To hold interests in other companies, engaged
in

the

field of insurance.

Underwriters—Lehman Bro¬

thers, New York, and J. C. Bradford & Co., Nashville,
Tenn.

Co.

(5/16)

St. & 22nd Ave., North, St.
—Eisele & King, Libaire,

and

from

assets

Subscription Agent

—

Price

To be supplied by

—

To purchase life insurance in

—

other

life

insurance

companies.

Old Southern Trust Co., Houston,

Underwriter—None.

Tex.

(par $5),
to be offered under the Re¬
stricted Stock Option Plan for Key Employees of the
company and its subsidiaries, including options granted
thereunder, and 62,827 shares are to be issued under out¬
standing options granted pursuant to the Restricted

of which 746,665 shares are

Option Plan.

Olympic Radio & Television, Inc.
~
>
28 filed $1,400,000 of convertible subordinated
Price—To be supplied by amend¬
ment. Proceeds—To .retire a $750,000 note and for work¬

March

debentures due 1966.

Office—Long Island City, N. Y. Under¬
& Co., New York; and First California

Offering

—

Expected today

(April 26).
A- Orchard Paper Co., St. Louis, Mo.
April 16 (letter of notification), 185 shares of class A
common stock
(par *$100). Price—$270 per share. Pro¬
ceeds—For working capital. Office—3914 N. Union Blvd.,
St. Louis

15, Mo. Underwriter—None.

tures

filed

due

^ tr

.•

(par $1)
being offered for subscription by common stockholders
of record April 18, 1956, on the basis of one share for
each 12: shares held;~ rights to expire on May 3.
Un¬
subscribed shares to be offered for subscription b.y em¬
ployees up to and including.April 30, 1956. Price—$16
per share.
Proceeds—To further construction plans of
subsidiaries, either through loans to the subsidiaries or
purchases of additional shares of their capital stock, any
balance to be used for general corporate purposes of
company/Carl M. Loeb, Rhoades & Co.,
Ladenburg, • Thalmann
Co., and Wertheim & Co.
(jointly) submitted the best bid on April 18 for the
stand-by. underwriting.
Niagara NdawK *Power Corp. (5/8)
April 16 filed $30,000,000 of general mortgage bonds due
May 1, 1986. Proceeds—To-repay bank loans. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb &
Co. and Union Securities Corp. (jointly); Morgan Stanley
& Co.; The First Boston Corp. Bids—Expected to be re¬
:

ceived up to 11 a.m. (EDT) on May 8.

;

Inc., Atlanta, Ga.

of notification) 3,300 shares of common
share. Proceeds—To re¬

stock (no par). Price—$15 per
duce outstanding
obligations

and for inventory and
Underwriter—Franklin Securities Co.,

working capital.
Atlanta, Ga.

Uranium Corp.

Federal

notification) 6,000,000 shares of common stock (par two cents).
Price—Five cents per share.
Proceeds—For mining expenses.
Underwriter—Skyline
Securities, Inc., Denver 2, Colo.

March 21 (letter of

Pulaski Veneer & Furniture Corp.

$5).
Price—$5.75 per share. Proceeds — To repay bank loans
and for machinery and equipment and working capital.
Office
Pulaski, Va. Underwriters — Scott, Horner &
Mason, Inc., Lynchburg, ,Va., and Galleher & Co., Inc.,
March 28 filed

170,000 shares of common stock (par

—

Richmond, Va.

Las Vegas, Nev.
March 8 (letter of notification) 300,000 shares of com¬
mon stock (par 10 cents);
Price—$1 per share. Proceed*
—For mining expenses. Office—Viener-Jones Bldg., 230
Quo Vadis Mines, Inc.,

S. 5th St.,

Les Vegas,- Nev: *

Securities Corp., Newark,
R. and

Minerals,

Underwrite*

N. J.

—

First Jersey
1

Inc., Reno, Nev.

shares of common
share). Proceeds—
For mining expenses.
Office—573 Mill St., Reno, Nev.
Underwriter—Utility Investments, Inc., Reno, Nev.
(letter of notification) 500,000

Price—At par (10 cents per

•

(Fred P.), Inc., St. Louis, Mo.
filed 150,000 shares of 5V2% cumulative pre¬
stock (par $10). .Price—To be supplied by amend*
Proceeds—To repay bank loans incurred by com-*

Rapp

March

•

pany may

debentures

Pacific Finance

(5/1)

(Calif.)

Corp.

April 10 filed $25,000,000 of debentures due 197L Price
—To be supplied by amendment. Proceeds—For reduc¬
tion of short-term bank loans.
Underwriters^-Blyth &

Co., Inc. and Hornblower & Weeks.

Peahody Coal Co., Chicago, III.
Feb. 27 filed 210,823 shares of common stock being
offered for subscription by stockholders of record Jan.
30, 1956 on the basis of nine additional shares of common
stock for each 100 common shares held and nine new
shares of common stock for each 40 shares of preferred
stock held. This offer will not be made to holders of the
6,492,164 shares of common stock issued for the acquisi¬
tion of the Sinclair properties under an offer of June
.

1955.

Price—At

The warrants

will expire on

Dec. 31, 1957.

share). Proceeds—For working
general corporate purposes. Underwriter—
($5 per

par

April 18

England Electric System

March 28 (letter

;

Co., St. Louis, Mo. Statement may

$100

Co., Inc., New York.
New

.•

for each 13 shares of common
stock held; rights to expire on April 28. Price—101%%
of principal amount.
Proceeds — For expansion and
equipment and $1,700,000 to redeem outstanding 4y2%
cumulative preferred stock.
Underwriter—Hornblower
& Weeks, New York. :u.
■
of

None. Statement effective March 27.

Power-Freeze,

Feb. 14

$5,001,100 of 4 %% subordinated deben¬
April 1, 1976 convertible to and including
April 1, 1966, being offered for subscription by common
stockholders of record as of April 13, 1956 on the basis

March

corporate purposes. Underwriter — North
Securities Co., Tulsa, Okla. Statement to be>

withdrawn.

stock.

Oswego Falls Corp., Fulton, N. Y.

April 11 (letter of notification) 200,000 shares of common
stock (par $1). Price—$1.50 per share.
Proceeds—For
exploration and development costs and to retire out¬
standing indebtedness. ^Underwriter—Whitney-Phoenix

March 19 filed 834,976 shares of common stock

American

Prudential

April 19 filed 809,492 shares of common stock

28,

^Nemaha Oil Co., Dallas, Texas

general

• Olin Mathieson Chemical Corp.

ing capital.

,-j

Pipelife Corp., Tulsa, Okla.
Nov. 29 filed 115;000 shares of common stock (par $1>.
Price—$4 per share. Proceeds—To pay current accounts
and notes payable; for research and development; and
•

Co., Houston, Tex.
March 29 filed 48,108 shares of capital stock (no par) to
be offered for subscription by stockholders on the basis
of one new share for each nine shares held (with an
Proceeds

of Minne¬

Old National Insurance

amendment.

Co., and Johnson-McKendrick & Co., both
apolis, Minn.
; •
•
; >
••

be supplied by amendment

oversubscription privilege).

Waconia, Minn.

(letter of notification) 3,000 shares of 5%
cumulative preferred stock, series E. Price—At par ($100
per share). Proceeds—For additions and improvements.
Office—Waconia, Minn.- Underwriters—M. H. Bishop &

filed

400,000 shares of capital stock (par $1).
(expected at $10
per share). Proceeds -— For investment. Office—Englewood, N. J. Underwriter — Lee Higginson Corp., New
York. Name Changed—From Atomic, Chemical & Elec*
tronic Shares, Inc./j;\) ) /-j 4

Petersburg, Fla. Underwriter
Stout & Co., New York. * ?

Pioneer Telephone Co.,
March

Nucleonics, Chemistry & Electronics Shares, Inc.

Co., San Francisco, Calif.

of Class A
stock (par
be offered for subscription by Class A and Class

$1) to

Gas

April 18 filed $15,000,000 of first mortgage bonds due
April 1, 1981. Proceeds—For new construction and gen¬
eral corporate purposes. Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Glore, Forgan & Co.; The First Boston Corp.;
Blyth & Co., Inc.' Bids — Expected to be received up to
18 a.m. (EDT) on May 16.

Feb.

(letter of notification) 8,000 shares of class A
common stock (par $1).
Price—At the market (maxi¬
mum $6).
Proceeds—For working capital. Office—34th
Feb. 16

March 5 (letter of notification) 24,000 shares
stock (par $1) and 40,000 shares of Class B
B stockholders of record Feb. 1,

Illinois

Inc., St. Petersburg, Fla.

Pinellas Industries,

writers—Bache

Underwriter—Pennaluna

•

Denver, Colo.
same city.

com¬

stock
(par 10 cents).
Price—15 cents per share.
Proceeds^-For mining expenses. Office—W. 408 Indiana

Avenue, Spokane, Wash.
Co., Spokane, Wash.

Price—To

supplied" by amendment.
Proceeds — Together with
funds from private sale of $2,000,000 of first mortgage
bonds, for construction program.
Underwriter—White,
Weld & Co., New York.
be

mon

Price—To

May 9; rights to expire on May 23..

of about

Uranium, Inc., Spokane, Wash.
(letter of notification) 1,500,000 shares of

(5/9)

Inc.

Natural^Gas .Co.,

Piedmont

April 12 filed 41,530 shares of common stock (par $1)
to be offered for subscription by ;common, stockholders
at the rate of one new share for each ten shares held as

stock

North Star

Stock
r

common

is President.

force

(5/9)

National Fuel Gas Co.

•

& Co., Wilkes-Barre, Pa.

(par $5).
Price—$25 per share. Proceeds — For working capital.
Underwriter—None. A. E. Nicholson Jr. of Kingston, Pa.

March 20 (letter of

^ Murphy Corp.; CI Dorado, Ark. (5/15-16)
April 25 filed 250,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds — For

(W. H.)

Jan.^16 filed, 20,000. shares of

(2061)

Commercial and Financial Chronicle

capital and

if Pennsylvania Electric Co.. (5/15)
filed $25,000,000 of first mortgage bonds due
1986 (reduced on April 19 by amendment to $12,500,000).
Proceeds—To redeem ^12,500,000 of 4Vs% first mortgage
bonds due 1983 and to repay bank loans. Underwriter—
To be determined by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; The First Boston Corp.;
Kuhn, Loeb & Co.; Kidder, Peabody & Co.; Equitable
Securities Corp.; Harriman Ripley & Co. Bids—Expected
to be received up to 11 a.m. (EDT) on May 15.

^-Pennsylvania Electric Co.

(5/15)

April 18 filed 90,000 shares of cumulative preferred
stock, series G (par $100). Proceeds — To repay bank
loans and for construction program.

Underwriter—To be

bidding. Probable bidders:
Kuhn, Loeb & Co.; W. C. Langley & Co. and Glore, For¬
gan & Co. (jointly); Kidder, Peabody & Co.; The First
Boston Corp.; Smith, Barney & Co.; Harriman Ripley &
Co. Inc. Bids
Expected to be received, up to 11. a.m..
determined

competitive

—

(EDT)

common

Equipment Service & Maintenance

ital.

Co.

(letter of notification) 35,000 shares of class B
stock (par 50 cents).
Price—$3.25 per share.

Proceeds—For inventory,

ment.

pany to redeem and cancel all of the issued and out¬
standing shares of 4% and 7% preferred stock; and for

equipment and working cap¬

Office—Allentown, Pa.

— Osborne &
20,000 shares.

Underwriter

Thurlow, New York, N. Y., for

Underwriter—Edward D. Jones 8c
be withdrawn as com¬
be acquired by ACF-Wrigley Stores, Inc. • *r •

expansion program.

•

Redlands

Oil

Ltd.

Co.,

$1,000,000 of partnership Interests to ba
offered in minimum amounts of $25,000. Proceeds—To

Jan.

filed

acquire leases for drilling for oil and gas and for devel¬
opment costs. Underwriter — Name to be supplied by
amendment.
Statement withdrawn March 20.
.
.

Reno

Hacienda, Inc., Inglewood, Calif.
4,000,000 shares of common stock.

Dec. 19 filed

($1 per share). Proceeds—To
erty, for construction of buildings
and for general corporate purposes.
son & Bay ley Investment Co.
At par

Prlee—
purchase real prop¬
and other facilities

Underwriter—Wil¬
1

if Republic Cement Corp., Prescott, Ariz. (5/24) ;
April 20 filed 965,000 shares of capital stock. Price—$10
per share. Proceeds—For construction of plant, working
capital and general corporate purposes. Underwriter—
Vickers Brothers, New York. -

if St. Anthony Mining Co., Phoenix, Ariz,
f
* _
April 18 (letter of notification) 100,000 shares of com¬
mon
stock (par $1)., Price—$2 per share.* Fr°ceeds^
For mining

expenses.

Underwriter—None.

Paper Co.
.
Feb. 21 filed 540,000 shares of common stock (par $5)
being offered in exchange for outstanding common stock
of Rhinelander Paper Co. on a share-for-share basis.
The offer will be declared effective if 90% of Rhinelander common stock is deposited for exchange; and hiay
be declared effective if a lesser amount, but not less
than 80% of said shares, are so deposited.
This offer
St. Regis

will

expire on May 16.

& Co.,

Dealer-Manager—White, Weld
Becker & Co., Inc.

New York, and A. G.

Savannah Electric & Power

April
1986.

filed

Co. (5/9)

$4,500,000 of first mortgage bonds due
and for new con¬

Proceeds—To repay bank loans

Underwriter—To be determined by competi¬
Probable bidders: Halsey, Stuart & Co,
Inc.; White, Weld & Co. and Kidder, Peabody & Co.
(jointly); The First Boston Corp.; Blair & Co. Incorpo¬
rated. Bids—Expected to be received up to 11 a.m. (EDT)
on May 9 at 90 Broad St., New York, N. Y.

struction.
tive

May 15.

Petroleum

March 23

ferred

bidding.

Continued

on page

The Commercial arid Financial

stock at

30 filed 325,000 snares

Warrant Agent—The Hanovei

Underwriter—None.

Bank, New York City.

El Paso, Texas

Schwartz Carbonic Co.,

Feb. 27 (letter

basis of 0.6158

shares of common

of notification) 30,700

subscription by stockholders on

stock to be offered for
new

share for each common

share held.

Price—$7.50 per share. Proceeds—For expenses incident
to manufacturing and sales of carbon dioxide.
Office—
1600 East Eleventh St., El Paso, Tex. Underwriter—None.
'

Shangrila Uranium Corp.
30 (letter of notification) 300,000 shares of com¬
mon stock.
Price—At par ($1 per share). Proceeds—
Dec.

For mining expenses.

•

Underwriter—Western States In¬

Co., Tulsa, Okla.

vestment

stock, series A
(par $50) to be offered in exchange for the outstanding
35,000 shares of 6% preferred stock on the basis of 2.3
shares of new preferred for each share of old preferred.

April 12 filed 80,500 shares of preferred

Price—To be supplied by

amendment.

Proceeds—To re¬

preferred stock or to retire bank loans. Under¬
writers—Names to be supplied by amendment. Stone &
Webster Securities Corp., New York, N. Y. and Dean

deem old

& Co., San Francisco,
Calif., underwrote last
financing. Exchange offer expected May 4 to
on May 24.

Witter

equity
expire

(Calif.)
(4/30)
March 12 (letter of notification) 149,500 shares of cap¬
ital stock (par $1). Price—$2 per share. Proceeds—For
working capital and general corporate purposes. Under¬
Pre fabricators,

Sierra

Inc.

writer—S. D. Fuller & Co., New York.

(5/1)
number of American
as may be issued
(on a basis of two American
for each underlying capital share) in respect of
713 capital shares of Simca and (2) the 1,455,713

Simca, Paris, France
March 29 filed (1) such

«.

These securities are being offered to the

shares.

shares
shares
1,455,-

capital
holders

presently outstanding capital shares, including holders
shares representing capital shares, at the
rate of one additional capital share for each capital
share
(or one additional American Share for each
American share) held on April 30, 1956, together with
of

of American

certain additional subscription privileges. The subscrip¬
tion price will be 5,500 francs (approximately $io.<i)

capital share and approximately $7.86 per Ameri¬
share.
Subscription rights of holders of capital

per
can

will

expire at the close of business in Paris on
evidencing subscription
rights of holders of American shares will expire on May
31, 1956. The subscription is to be handled by a group

June 6, 1956, whereas warrants

French

subscription

Proceeds—To

agents.

finance

of expansion and improvement. Business—
Simca is engaged in the production and sale of passenger
automobiles, trucks, tractors and other products in
a

American

Depositary—For

Farmers Trust Co.,
Skiatron

& Television Corp.
common

cents).

Proceeds

Price

stockholders.

At the market.

—

City Bank

New York.

Electronics

March 16 filed 470,000 shares of

stock
—

(par 10

To selling

Underwriter—None.

Sonoma Quicksilver Mines, Inc.
April 9 (letter of notification) 640,000 shares of capital
stock

(par 10 cents) to be offered for subscription by
stockholders. Price—45 cents per share. Proceeds—For

mining
Calif.

expenses.

Office—41

Sutter

St., San Francisco,

Underwriter—None.

ness

owing to parent,
construction program.

Pacific Lighting Corp.; and for
Underwriter—To be determined

by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Blyth & Co., Inc.; Lehman
Brothers, White,
Weld & Co. and Union Securities

Expected to be received

Corp. (jointly). Bidsa.m. (PDT) on May 23.

to 8:30

Co., New York.

Suburban Land Developers,

Inc.
15,001 shares of

(par 10 cents) to be offered for subscription by
stockholders. Price—$10 per share. Proceeds—For ex¬
penses incident to development of oil and gas
properties

Washington Bldg., Washington, D. C. Under¬

writer—None.

• Stanley Works, New Britain, Conn.
April 18 (letter of notification) an undetermined
of

common

stock

notification) 920 shares of 6% cumula¬
preferred stock ($100 per share) and
2,160 shares of common stock (par $10). Price—Of pre¬
ferred, $100 per share; and of common, $15 per share.
Proceeds—For improvements and working capital. Of¬
fice—909 West Sprague Ave., Spokane, Wash.
Under¬
writer—W. T. Anderson & Co., Inc., Spokane, Wash.
A Sun Oil Co., Philadelphia, Pa.
April 18 filed 14,000 memberships in the Stock Purchase
Plan for the Employees of this company and its sub¬
sidiaries, together with 162,000 shares of common stock,
being the maximum estimated number of shares which
may be purchased by the trustees of the plan under the
1956 plan.
•
April 18 filed 229,300 shares of common stock. Price—At
the market.
Proceeds—To selling stockholders. %Under¬

writer—None.

(par

$25).

num¬

Proceeds—

working capital. Office—195 Lake St., New Britain,
Conn. Underwriter—None.

Metals,

Jan.
mon

Inc., Tungstonia, Nevada

4^ (letter of notification) 1,200,000 shares
stock.

Price—25

expenses incident

cents

per

share.

mining operations.
R. Reynolds & Co., Salt Lake
City, Utah.

of com¬
Proceeds—For
Underwriter—

Stubnitz Greene

March

filed

Corp., Adrian, Mich.
$1,000,000 of 5 V2 % sinking fund

sub¬
ordinated debentures due 1966 (with warrants
to pur¬
chase 60,000 shares of common
stock) and 100,000 shares
of 60-cent cumulative preferred stock

(par

offered

for

subscription

common

$5)

being

stockholders

fecord March 26 in units of $250 of debentures

"/..v

Superior Uranium Co., Denver, Colo.
(letter of notification) 29,600,000 shares of com¬
mon stock.
Price—At par (one cent per share). Pro¬
ceeds—For mining operations.
Office—608 California
Denver, Coio. Underwriter—Securities, Inc., P. O.
127, Arvada, Colo.

mag.,

Box

Target Uranium Corp., Spokane, Wash.
(letter of notification) 1,000,000 shares of com¬
mon stock
(par five cents). Price—20 cents per share.
Proceeds—For mining expenses.
Office — 422 Paulsen
March 1

Bldg., Spokane, Wash. Underwriters—Percy Dale Lanphere and Kenneth Miller Howser, both of Spokane,
Wash.

(with

,:,v

Petroleum Corp., Norman, Okla.
Feb. 1 filed 200,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds—For
working capital, drilling and completion of additional
wells, possible acquisition of interests in additional oil
and gas leases and exploration for oil and gas. Under¬
writer—Hayden, Stone & Co., New York.
;
Taylor

Texas Eastern Transmission
filed

190,000 shares of 5.50% first preferred stock. Under¬
writer—Dillon, Read & Co., Inc., New York. Offering—
Temporarily postponed.

Inc., Greenville, S. C.
suuoruinaLeu convertible
debentures due April 1, 1971, to be offered for subscrip¬
tion by common stockholders on the basis of $100 of
Texize Chemicals,

March 19 filed $742,buO 01 0%

debentures for each seven shares of common stock

held;

Price—$98.50 per $100 deben¬
ture, plus accrued interest, to stockholders; and at par
to public.
Proceeds — For capital; expenditures and
working capital. Underwriters — Edgar M. Norris and
Alester G. Furman Co., both of Greenville, S. C., and
(for

14-day standby).

seven

other

firms.

Co., Houston, Texas.

* United Pacific Mining Corp., Eugene, Ore.
April 16 (letter of notification) 5,700,0u0 shares of com¬
mon stock
(par one cent). Price—Five cents per share.
Proceeds—For mining expenses.
Office—63 West loth
St., Eugene, Ore.

;

Tex-Star Oil & Gas

Corp., Dallas, Texas
Jan. 20 (letter of notification) 99,990 shares of common
stock (par $1).
Price — $3 per share. Proceeds—For
working capital and general corporate purposes.1 Office
—Meadows Building, Dallas,
Texas. .Underwriter —
Thomas F. Neblett, Los Angeles, Calif.
•

Thyer Manufacturing Corp. (5/7-8)
April 13 filed $600,000 of 6% sinking fund debentures
due 1976 (with warrants attached) and 40,000 shares of
capital stock (par $1), Price—For debentures, 100% and
accrued

interest; and for stock, $4.12% per share. Pro¬
working capital in connection with increased

ceeds

homes.

Office

—

Toledo, Ohio.

Co., Inc., New York.

Underwriter

•"

—
.

P. W.

Togor Publications, Inc., New York
(letter of notification) 299,700 shares of com¬
mon stock (par 10 cents). Price—$1 per share.
Proceeds
—For working capital and general corporate purposes.
Office—381 Fourth Ave., New York, N. Y. Underwriter
—Federal Investment Co., Washington, D. C.
March 16

TranSouth Life Insurance Co., Columbia, S. C.
Feb. 21 filed 941,250 shares of

class A non-voting

com¬

stock

(par $1) and 10,270 shares of class B voting
stock (par $1) of which 100,000 class A and all

of the class B

For

—

Otnce—8620

general corporate purposes.

Montgomery Ave., Philadelphia, Pa. Underwriter—Co¬
lumbia Securities Corp., 135 Broadway, New York.,
!
U.

Fiberglass industrial Plastics, Inc.

March

(letter of notification) 150,000 shares of con¬
vertible preferred stock (par $1) and 30,000 shares of
common stock
(par 10 cents) to be offered in units of
five shares of preferred stock and one share of common
19

stock ^first

Price—To stockholders, $9

stockholders.

unit; and to public, $10 per unit: Proceeds—For
capital improvements and general corporate purposes.
Office—Norwood, N. J. Underwriter—None.

per

* Uranium Cycle Mining & Development Co.

April 17 (letter of notification) 16,000,GOO shares of com¬
mon stock.
Price—At par (one cent per share). Proceeds

Office—4933 Elm Court, Denver,

—For mining expenses.

Underwriter—None.

Colo.

Exploration Co., Salt Lake City, Utah

Uranium

(letter of notification) 77,875 shares of common
stock (par 25 cents).
Price—$1 per share. Proceeds—
Feb. 13
For

Office—538 East 21st South St.,
— Pioneer Invest¬

mining expenses.

City, Utah.
Underwriter
ments, Salt Lake City, Utah.
Salt

Lake

Utco

•

Uranium Corp.,

Denver, Colo.

(letter of notification) 200,000 shares of com¬
stock, which are covered by an option held by the
underwriter. Price—10 cents per share. Proceeds—For

Jan.

mon

mining expenses. Office—310 First National Bank Bldg.,
Denver, Colo. Underwriter — Amos C. Sudler & Co*

city.

same

Jan.

Industries, Inc., Evanston, III,

^letter

nutixieatxoiiy

i,uuu

of common

Price—$7 per share. Proceeds—
To selling stockholders.
Office — 2108 Jackson Ave.,
Evanston, 111. Underwriter—Arthur M. Krensky & Co.,
Inc., Chicago, 111.
< ;
%
stock

(par one cent).

it Value Line Special Situations Fund, Inc.- (N. Y.)
April 18 filed 2,000,000 shares of capital stock (par 10
cents). Price—At market. Proceeds — For investment.
Underwriter—Value Line Distributors, Inc., New York.

^Wellington Fund, Inc., Claymont, Del.
April 18 filed 5,000,000 shares of common stock (par $1).
Price—At market. Proceeds—For investment.
Western Electric Co.,

(4/30)

Inc.

April 13 (letter of notification) 2,595 shares of common

par) to be offered for subscription by minority
10, 1956 at the rate of one

stock (no

stockholders of record April
new

share for each nine shares held; rights to expire on

An additional 1,409,071 shares are to be
Telephone & Telegraph Co., owner of
99.82% of the outstanding voting stock. Price—$45 per
share. Proceeds^-For plant improvement and expansion.
May 31, 1956.

sold to American

Underwriter—None.
Western Securities

Corp. of New Mexico

(letter of notification) 50,000 shares of common
stock.
Price—At par ($1 per share).^ Proceeds—To start
a dealer or brokerage business.
Office—921 Sims Bldg.,
Feb: 13

Underwriter—None.

Albuquerque, N. M.

Uranium Corp.
Feb. 13 (letter of notification) 15,000,000 shares of capi¬
tal stock.
Price—At par (one cent per share).
Proceeds
—For mining expenses.
Office—547 East 21st South St.,
Salt Lake City, Utah.
Underwriter—Empire Securities
Corp., Salt Lake City, Utah. -

business. Business—Manufactures and sells prefabricated

Chemical Corp.

(letter of notification) 300,000 shares of class A
common stock (par 10 cents).
Price—$1 per share. Pro¬
Nov. 4

ceeds—For

Underwriter—None.

U. S. Automatic Machinery &

Vance

200,000

Oil Co., Houston, Texas

of notification) 240,ouu snares of common
stock (par 10 cents). Price—$1.25 per share. Proceeds—
For expenses incident to oil production.- Office — San
Jacinto Building, Houston, Tex. Underwriter—Mickle &
Jan. 19 (letter

Corp.:

shares of cumulative preferred
stock (par $100). Price—To be supplied by amendment.
Proceeds—Toward redemption of presently outstanding
Nov.

White Sage

Williamson

Co., Cincinnati, Ohio

(letter of notification) 20,666 shares of class B
common stock (par $1) to be offered for subscription by
class B common stockholders on a l-for-7 basis. Price—
Feb.

$6.84

per

share.

Maison

—3500

Proceeds—For working capital. Office
Underwriter—

Road, Cincinnati, Ohio.

None;

...

v..

exercise.of

Wilmington Country Club, Inc., Wilmington, Del.

options to be granted to employees and directors of the
company.
Class A shares are to be offered in units of

Aprijv2 filed $1,500,000 of non-interest bearing deben¬

are

to be reserved

four shares

each, and at $8 per unit, under a condition
that each purchaser donate one share out of every four
shares purchased to TranSouth Educational Foundation,
Inc.

For

Inc., Spokane, Wash.

non-voting

common

stock

ber

Feb. 2 (letter of

tive

mon

Southwestern Oklahoma Oil Co.,
Feb. 27 (letter of
notification)

Office—801

Statement effective April 24.

Brooks &

it Southern California Gas Co. (5/23)
April 23 filed $40,000,000 of first mortgage bonds, series
B, due 1981. Proceeds—To repay short-term indebted¬

•

rights to expire on May 9. Price — $418.75 per unit.
Hvceeas—ror expansion and working capital. Office—
404 Logan Street, Adrian, Mich.
Underwriter—Golkin

program

France.

100

Union of Texas

of common

Nov. 9

(5/4)

Pacific Power Co.

Sierra

and 25 shares of preferred stock
shares of common stock presently hela;

of capital stock (par $1)
later amended to cover 234,641 shares now being of¬
fered for subscription by stockholders of record April
13, 1956 at the rate of one new share for each two shares
held
(with an oversubscription privilege); rights to
expire on May 7. Price—$5 per share. Proceeds—Foi
prepayment of outstanding
sinking fund bonds
due 1960; balance for general corporate purposes, in¬
cluding additions and improvements and working capi¬
tal.

purchase

$8 per share)

each

for

Brick Co.

Sayre & Fisher

Sept.

attached

warrants

Continued from page

Chronicle... Thursday, April 26, 1956

(2062)

Proceeds—To finance its business

as a

tures, due 1991, to be offered to the members of the
Club/ Price—At par ($1,000 per debentures). Proceeds
ments.

Underwriter—None. J. R. Hoile is PresidentTreasurer; and G. F. Kennedy is Secretary. Statement
efiective April 18.
1

Transportation Vendors, Inc.
March 23 (letter of notification) 299,750 shares of com¬
mon
stock (par five cents).
Price—$1 per share. Pro¬
ceeds— To pay
indebtedness, and for expansion and
working capital. Business—Vending machines. Office—
60 Park Place, Newark, N. J.
Underwriter — Midland
Securities, Inc., New York, N. Y.
Tunacraft, Inc., Kansas City, Mo.
17 (letter of notification) $250,000 of 6%

12-year
subordinated sinking fund debenture notes
1, 1968. Price—At par. Proceeds—To reduce
outstanding secured obligations. Underwriter—McDon¬
ald, Evans & Co., Kansas City, Mo.
registered

due

Jan.

golf house and other improve¬

Underwriter—None.

Wilson

company.

Jan.

construction

—For

life insurance

Industries, Inc.

(Russell)

of notification) 3,000,000 shares of com¬
stock. Price—At par (10 cents per share). Proceeds

March 13 (letter
mon

—To

bank loans, for drilling well and working
Office—Winnsboro, Texas. Underwriters—J. J.
Inc., New York, N. Y., and Dag¬

repay

capital.

Holland Securities Co.,

gett Securities, Inc., Newark, N.
•

Wisconsin Electric Power Co.

March 30 filed 463,641

shares of common stock (par $10)

being offered for subscription by common stockholders
of record April 24 on the b£sis of one new share for
each
10 shares held
(with an oversubscription priv¬

ilege); rights to expire on May 15. Unsubscribed shares
will be offered to employees.
Price—$28.75 per share.
Proceeds

None.

—

For

construction

program.

Underwriter—

Number 5528 ...The Commercial and

Volume 183

•

Financial Chronicle

Central Illinois .Light Co.

Woodbury, Conn.

Woodbury Telephone Co.,

of notification) 5,300 shares of common

March 27 (letter

stockholders of record April 20,
each share heid;
rights to expire on May 18, 1956. Price—At par ($25
per share). Proceeds—To repay short term loans and for

stock being offered to
1956

the basis of one new share for

Underwriter—None.

construction.

Woods Oil & Gas Co., New Orleans,

La.

Aug. 29 filed 400,000 shares of common stock (par $1).
Price—$5 per share.
Proceeds—To retire outstanding

and How¬
of New

obligations. Underwriters—Woolfolk & Shober

Weil, Labouisse, Fredricks & Co., both
Orleans, La. Statement effective Feb. 28.

ard,

(2063)

April 3 it

announced

was

company

plans $8,000,000 addi¬

Dolly Madison International Foods Ltd.
15 it was announced that Foremost Dairies, Inc.

Nov.

tional financing during 1956. The type of securities to be
issued has not yet been determined.
Proceeds—For con¬

intends at

struction program.
Underwriter—For bonds, to be de¬
termined
by competitive bidding.
Probable bidders:

Allen & Co.,

Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; Kuhn,
Loeb & Co.; Union Securities Corp.; The First Boston
Corp.; Harriman Ripley & Co. Inc.; Merrill Lynch,
Pierce, Fenner & Beane and Stone & Webster Securities
Corp. (jointly).
.

right
Underwriter-

future date to give its stockholders the

its

purchase

Madison

Dolly

stock.

New York.

Mont Broadcasting Corp.

Aug. 10 it was announced that corporation, following is¬
on Dec. 2 to stockholders of Allen B. Du Mont

suance

Laboratories, Inc. of 944,422 shares of common stock af
dividend, contemplates that additional shares will be
offered to its stockholders.
This offering will be un¬

Cincinnati

Enquirer, Inc. (4/26)
derwritten. Kuhn, Loeb & Co. and Van Alstyne, Nodi
was announced bids will be received by Hal¬
& Co. handled Du Moat Laboratories class A stock fi¬
Stuart & Co. Inc., Chicago, 111., up to noon (CST) on
nancing some years ago. Stockholders of Laboratories
April 26 for the purchase from it of $1,476,000 Cincinnati
on Oct. 10 approved formation of Broadcasting firm.
Enquirer, Inc., convertible debentures which have been
# Dubl-Check Corp.
(5/15)
*
called for redemption on May 10. These debentures are *
April 9 it was reported company plans to issue and sell
convertible into 147,600 shares of common stock, which
58,700 shares.of preferred stock and 58,700 shares of com*
would represent about 35% of the stock which would be
mon stock in units of one share of each class of stock.
outstanding.
Price—$5.10 per unit. Business—Check cashing service,
Coastal Transmission Corp., Houston, Texas,
whereby a coin operated camera photographs the check
Feb. 29 it was announced an application has been filed
casher.
Underwriter—Talmage & Co., New York.
with the FPC for construction of a 565.7 mile pipeline
Erie RR. (5/16)
system to cost $68,251,000. Underwriters—Ma# be Leh¬
Bids will be received by the company up to noon (EDT)
man Brothers and Allen & Co., both of New York.
on May 16 for the purchase from it of $6,225,000 equip¬
Columbia Gas System, Inc. (10/2)
ment trust certificates to mature in 15 equal annual in¬
Feb. 15 it was announced company may issue and sell *
stalments. Probable bidders: Halsey, Stuart & Co. Inc.;
$30,000,000 of debentures. Underwriter — To be deter¬
Salomon Bros. & Hutzler.
mined by competitive bidding. Probable bidders: Halsey,
First National Trust & Savings Bank,
Stuart & Co. Inc.; Morgan Stanley & Co. Bids—Expect¬
San Diego, Calif.
(4/27)
ed to be received on Oct. 2.

April 12 it
sey,

Prospective Offerings

Air-Vue Products Corp., Miami, Fla.

Feb.

reported early registration is expected

was

pf 150,000 shares of common stock.

Price—Around $4.25

For expansion program. Under¬
M. Krensky & Co., Inc., Chicago, 111.

Proceeds

share.

per

writer—Arthur

—

& Telegraph Co.
a new issue of deben¬

American Telephone

March 21 the directors authorized

(non-convertible) amounting to $250,000,000. Pro¬
additions and improvements to Bell System

tures

ceeds—For

telephone service. Underwriter — To be determined by
competitive bidding. Probable bidders: The First Boston Corp. and Halsey, Stuart & Co. Inc. (jointly); Mor¬

Stanley & Co. Bids—Expected to be received some-

gan

time after the middle of June.

March 23 it

new

announced company plans to spend durr

was

five

the

•ing

Commercial

Public Service Co.

Arizona

years

estimated

$94,000,000

for

construction. Of this amount, $41,000,000 is expected

to come from within

;outside

the company, and the balance from

No new equity financing is planned
About $16,000,000 is expected to be spent this

Bond financing is expected to be done privately
through Blyth & Co., Inc. and The First Boston Corp.

year.

Baltimore & Ohio RR.
March

convertible 4 V2 %

710,000

authorized company to issue up to $54,-

ICC

debentures,

series A, due

bonds

par-for-par basis.

on a

Feb.

reported

was

company

Underwriter—To

issue

some

determined

competitive

Probable bidders: W. C. Langley & Co.; EstaCo. and Stone & Webster Securities Corp.

bidding.
&

brook

Proceeds—To reduce bank

preferred stock during 1956.
loans.

plans

(jointly); Salomon Bros. & Hutzler; Kidder, Peabody &
Co.; Harriman Ripley & Co. Inc,
7
*
..

Ami

Bon

March

Co., New York

announced

was

A and

common

company

plans to offer to

B stockholders the right to sub¬

common

scribe for 10,000 shares of common A stock (now

held in
share of common A stock for

treasury) on basis of one
each

common

The stockholders

held.

and/or

common

March 21 will vote

stock

on approv¬

Co.

(6/5)

Jan. 24 it

was announced that company may issue be¬
$35,000,000 to $50,000,000 of bonds. Proceeds—For
construction program. Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Glore, Forgan & Co. and Blyth & Co., Inc.
(jointly); The First Boston Corp.

tween

Connecticut
March 1 it

Power

reported

new

l-for-10 basis.

Proceeds

Underwriters—Putnam

—

To reduce bank loans.

Co.; Chas. W. Scranton & Co.*
Offering—Expected in June.
Consolidated
March 15 it

Natural

Gas

Co.

(7/25)

Consolidated

Water Co.

Jan. 16, Frank A.

Underwriter—If by competitive bid¬
ding, bidders may include Lehman Brothers; The First
Boston Corp.; Harriman Ripley & Co. Inc.
Bids—Ex¬
pected up to-noon (EDT) on June 25.
Registration
scheduled for May 22.
.

Braniff Airways, Inc. (6/6)
April 11 company authorized an offering to stockholders

about June 5, 1956, of 1,105,545 additional

of record

on or

shares of

common

new

for

Stock (par $2.50) on the basis of three
each five shares held (with an over¬

subscription privilege); rights to expire about June 20.

.Price—To be named later.
porate purposes.

Proceeds—For general cor¬
Underwriter—F. Eberstadt & Co., New

York.

California
March
sell

some

Electric
was

Power

reported

Co.

company

plans to issue and
or July.
Proceeds

additional securities in June

1—To retire bank loans and for

construction. Prob¬
include: Halsey, Stuart &
Co. Inc.; Shields & Co.; Merrill Lynch, Pierce, Fenner
able

new

bidders for bonds may

& Beane and Kidder, Peabody & Co. (jointly); Blyth &
Co. Inc.; The First Boston Corp. and Salomon Bros. &
Hutzler (jointly); Lehman Brothers; White, Weld & Co.'
"Previous

stock

financing was underwritten by
Blyth & Co., Inc. and The First Boston Corp.
common

Carolina

Power

Light Co.

(9/11)
March 22 it was announced company plans to issue and
'sell $15,000,000 of first mortgage bonds due 1986. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co Inc.; Kuhn, Loeb &
Co. and A. C. Allyn & Co. Inc. (jointly); W. C. Langley
& Co. and The First Boston Corp. (jointly); Equitable

Consumers

Power

Probable bidders: Halsey, Stuart &
Inc.; Harriman Ripley & Co. Inc. and The First Bos¬
Corp. (jointly); Morgan Stanley & Co.; White, Weld
& Co. and Shields & Co. (jointly). Offering—Expected
Co.
ton

in the Fall.

Crane Co., Chicago,

III.
March 18 stated in part: "To
capital expenditures,
it appears that some additional financing may be neces¬
sary." Underwriters—Morgan Stanley & Co. and Clark,
•'
;
Dodge & Co.

F. F.

Elliott, President,

meet

the cost of present proposed

Cribben & Sexton Co.
Feb. 27 it

reported stockholders will vote March 6
on approving a proposal to increase the authorized com¬
mon stock from 250,000 shares to 750,000 shares, the ad¬
ditional shares probably to be issued in connection with
future financing. 1 Underwriter—May be Hornblower &
was

Weeks, New York.
Delaware

Power &

Sept. 28 it was
undertake
first

Light Co.
announced that the

some

common

stock

stockholders.

company

financing,

Proceeds—For

expects to
probably
construc¬

tion program.

Underwriter—To be determined by com¬
bidding. Probable bidders: W. C. Langley &
Co. and Union Securities Corp. (jointly); Kidder, Pea¬

petitive

body & Co. and Merrill Lynch, Pierce, Fenner & Beane

(jointly); Carl M. Loeb, Rhoades & Co.; Blyth & Co.
(jointly); White, Weld
& Co. and Shields & Co. (jointly); Lehman Brothers.
Offering—Expected in June or July.

Inc. and The First Boston Corp.

Detroit

Edison

Co.

rowings will probably provide for the remainder

and

sale

writers

—

company is considering issuance
$10,000,000 convertible debentures. Under¬

Hornblower

Weeks

Corp., both of New York City.

and

Union

Securities

—

and Smith, Barney & Co., both of New
Meeting—Stockholders will vote May 28 on
increasing authorized capital stock from 2,028,000 shares
to 2,230,800 shares.
&

ner

Beane

York City.

Flo-Mix Fertilizers

Dec.

was

Corp., Houma, La.

reported early registration is

expected

Florida

Power Corp.

(7/11)
plans to issue and sell

$20,000,000 of first mortgage bonds. Underwriters—To
be determined by competitive bidding. Probable bidders:

Feb. 20,

of the

$95,000,000 necessary this year to carry forward the com¬
pany's program of expansion of facilities." Financing
may be in form of 15-year debentures to common stock¬
holders. Underwriters—None. Offering—Tentatively ex¬
pected in June.

Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co. an£
Lynch, Pierce, Fenner & Beane (jointly); Leh¬
man
Brothers and Blyth & Co., Inc. (jointly); €Hore,

Union Securities
(jointly). BidsRegistration—Planned for June 14.

Forgan & Co.; The First Boston Corp.;
Expected July

11.

^Florida Public Utilities Co. (5/23)
April 23 company applied to the Florida RR. & P.U,
Commission for authority to issue and sell 25,000 shares
of common stock (par $3).
Price — To be determined
later. Proceeds—-For construction program, etc.
Under¬
writers—Starkweather & Co., New York; and Clement
A. Evans & Co., Inc., Atlanta, Ga.
Fort

Worth

National

Bank

April 17, the bank offered to stockholders of record
April 17, 1956 the right to subscribe on or before May 3,
1956
for
150,000 additional shares of common stock
(par $10)

shares held.
crease

the basis of one new share for each
Price—$22.50 per share. Proceeds—To

4%
in¬

capital and surplus. Office—Fort Worth, Texas.
—
Dallas Union Securities Co. and First

Underwriters

Southwest

Co., both of Dallas, Texas.

General Acceptance Corp.

April 2 it was reported company plans to issue and
$15,000,000 of debentures due in 1966, $10,000,000
of capital debentures due in 1971 and about $3,500,000
of common stock.
Underwriter—Paine, Webber, Jack¬
sell

son

& Curtis, Boston and New

York.

Registration—Ex¬

pected late in April.

Bids—Scheduled for Sept.

11.

Proceeds

Underwriters—Drexe|
Philadelphia, Pa., and Merrill Lynch, Pierce, Fen¬

Co.

Securities Corp.; Blyth & Co., Inc.; Kidder, Peabody &
Co. and Merrill Lynch, Pierce, Fenner & Beane (jointly).

Corp.
April 16 it was reported

share for each 10

and surplus.

increase capital

& Co.,

new

28; rights to expire on

To be established later.

Corp. and Harriman Ripley & Co. Inc.

Walker L. Cisler, President stated that "tenta¬
tive plans are that about $60,000,000 will be obtained
from investors in 1956. Internal funds and bank bor¬

Celotex

—

Co.; Harley Haydon & Co., Inc.; and Indianapolis Bond
offer¬

petitive bidding.

(6/25)

Price

22.

Merrill

shares of preferred stock (par $100).- Proceeds—For con¬

Co,*

reported company plans to offer 180,000

June

additional shares of capital stock

202,800

on the basis of one
held on or about May

$10)

(par

O'Neill, President, announced that the
sometime between now and the summer of
1956, will probably do some additional financing. Pro¬
ceeds—For expansion.
Underwriters—The Milwaukee

-company

struction program.

was

Pennsylvania Banking & Trust Co. (6/7)
was announced Bank plans to offer to its

stockholders

Feb. 20 it was announced company

April 7 it was reported company plans to issue and sell
$30,000,000 of first mortgage bonds. Proceeds—For new
Underwriter—To be determined by com¬
construction.

Edison

Boston

March 19 it

First

March 27 it

Bids—Expected to be received on July 25.

ing made last August.

•.

Proceeds—To increase
& Co.,
Dewar

share.

159,000 shares of common stock.
Price — Probably
$5 per share. Underwriters—Fairman, Harris & Co., Inc*
and Straus, Blosser & McDowell, both of Chicago, I1L ;

sell

jk Co. (formerly Charles D. Barney & Co.) handled sec¬
■

per

capital and surplus. Underwriters—Dean Witter
Blyth & Co., Inc., William R. Staats & Co. and
& Co., all of San Diego, Calif.

announced company

& Share Corp. underwrote class A common stock

Price—$31

18.

May

plans to issue and
$30,000,000 of debentures due 1981. Underwriter—
To be 'determined by competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley &
Co. and The First Boston Corp (jointly); White, Weld
& Co. and Paine, Webber, Jackson & Curtis (jointly).
was

ing this proposal and also on changing the par value of
the shares from no par for both issues to $2 per share
for the common A stock and $1 for the common B stock.
.Underwriter—Dominick & Dominick and Smith, Barney

ondary offering of common B stock in 1926.

right to subscribe for 43,200 additional shares
of capital stock (par $10) on the basis of one new share
for each 10 shares held as of April 27 (following pay¬
ment of a 100% stock dividend); rights to expire on

Co.

company plans to issue and sell
preferred stock and offer to common
stockholders 71,132 additional shares of common stock
was

announced Bank plans to offer to its stock¬

was

holders the

—

Commonwealth Edison

$5,200,000 of

Blackstone Valley Gas & Electric Co.

Corp.

reported company plans early registra¬
$25,000,000 of junior subordinated deben¬
Kidder, Peabody & Co. and The
First Boston Corp., both of New York.
Underwriter

tures.

Feb.

1, 2010, which it proposes to offer in exchange to
holders
of
its outstanding
convertible 4Y2% income

April 4 it

Credit

was

tion of about

sources.

for 1956.

March 12 it

+ General Contract Corp., St. Louis, Mo.
April 18 it was announced that company plans $5,000,000
additional financing in near future. Proceeds—To go to
Securities Investment Co., a subsidiary. Underwriter—
G. H. Walker &

General

Co., St. Louis, Mo.

Public

Utilities

Corp.

April 2, A. F. Tegen, President, said that the company
plans this year to issue and sell $28,500,000 of new bonds
and $14,000,000 of new preferred stock.
It is also pos¬
sible that a new issue of common stock will be offered
for subscription by common stockholders before April,
1957.
Proceeds—To repay bank loans, etc., and for con¬
struction program.
Giannini

& Co., Inc., Pasadena,

(G. M.)

Calif.

April 11 it was reported company plans to issue and sell
100,000 shares of convertible preferred stock (par $20),
Proceeds—For working capital.
Underwriters—Gv H.
Walker & Co., St.
Los

Angeles, Calif.

Louis, Mo., and Hill, Richards

& Co.,

Continued

on page

The Commercial and Financial Chrojiicle... Thursday,

(2064)

Continued from page

10 a.m. (EST) on April 26, at
office of the Bankers Trust Co., 46 Wall St., New

Bids will be received up to
the

bonds,
000

1976.

and $411,000 on May 1,
.

April 16 it was reported company may

to be determined

the Treasurer of the
public improvement series A, dated May 1, 1956, and to mature $417,May 1, of each year from 1959 to 1975, inclusive,

York, N. Y., for the purchase from
Territory of Hawaii of $7,500,000

(jointly); Salomon Bros. & Hutzler; Harriman Ripley &
Inc. and Union Securities Corp. (jointly); Kidder,
Co. and Drexel & Co.

New York.

(jointly); The First

Pacific Northwest

Pipeline Corp.
Williams, President, ^announced that
about 280,000 shares of common stock (par $1) are to be
sold in connection with subscription, contracts which
were entered into at the time of the original financing

Houston Texas Gas & Oil Corp.,

Indianapolis Power & Light Co.

-•

(6/7)

Inc.

(jointly); Kuhn, Loeb &

in 1956,
Under¬
writer
To be determined
by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Lehman
Brothers; White, Weld & Co.; Kidder, Peabody & Co.;
Union Securities Corp.," Salomon Bros. & Hutzler and
Merrill Lynch, Pierce, Fenner & Beane (jointly); Blair
& Co. Incorporated. /./
/./
'
—

Johns-Manville

Kuhn,

Feb. 20 it

[J'v:

Corp.

Gas

Corp.

Boston and

New York.

competitive bidding for .any ibonds.;.:Probable bidr

ders:

Halsey, Stuart & Co, Inc.; Uehman Brothers, Stone
Securities Corp. and* Union: Securities Corp.
/jointly); The First Boston Corp.; Lee Higginson Corp
Dillon, Read & Co. and Johnston, Lemon & Co, * (jointly);

was

& Webster

Harriman Ripley & Co.

-Public Service Co;

Ihc;//,/////.*:>.// /'" /
ofNewHampshire//

Feb. 25, it was reported company plans to. issue and sell
$8,000,000 of first mortgage bonds/ Proceeds — To pay
cost, in part, of construction program.?;-Underwriter-iTo
be determined by competitive bidding. .Probable; bidders:..
Halsey, Stuart & Co., Inc.; Kidder/Peabody & Co. and
Blyth & Co. Inc. (jointly); Equitable Securities Corp.;
White, Weld & Co.; The First Boston Corp. and Coffin
& Burr, Inc. (jointly); Lehman Brothers, jBids — Ex¬
pected sometime in June. / / / '

plans to merge its subsidiaries, Essex County Electric Co., Lowell Electric
Light Corp., Lawrence Electric Co., Haverhill Electric
Co. and Amesbury Electric Light Co., into one company
during 1956. This would be followed by a $20,000,000
first mortgage bond issue by the resultant company, the
name of which has not as yet been determined.
Under¬
writer
May be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb,
& Co., Salomon Bros. & Hutzler, Union Securities Corp.
and Wood, Struthers & Co. (jointly); Lehman Brothers;
The FicpLBoston £orp.; JSquitable Securities Corp.; Mer¬
rill Lynch, Pierce, Fenner Sc Beane; Kidder, Peabody &
Co. and White, Weld & Co. (jointly).

April 16 it was reported an offering is expected in May
of approximately 30,000 shares of common stock. Under¬

•'
/

it was reported company plans to do some.'
additional financing in 1958 andrl957.;-:: Proceeds^For/
construction program/ Underwriter—To>be.(determined,
April

Pipe Line Co. of America

was' announced

////.■. v-//-

it Potomac Electric Power Co.

New England Electric System
Jan.

../,. ~

York, N. Y.

Harriman Ripley &- Co. Inc.; and
-

Seibert/President, announced that ;
company will^soon file a registrationstalement-with the
SEC preparatory to an equity offering:, planned to take
place later this year.- Business—To explore/ drill and
operate oil, gas and mineral properties fn/the' United
States, Cuba and Canada; / Offtee^—120* Broadway/ New

reported company plans to issue and sell
late this Spring $35,000,000 of first mortgage bonds due
1976.
Underwriter—If determined by competitive bid¬
ding, the following may bid: Halsey, Stuart & Co. Inc.;
White, Weld & Co.; Lehman Brothers and Union Secu¬
rities Corp. (jointly). -;///.:''//;./•'/• . ' ■ '

require financing, adding that the management had no
definite plan for the issuance of additional stock other
than those required for the two-for-one split but "the
situation could change."
.
..
;.vvr

& Curtis,

:Pan Cuba Oil & Metals Corp.

April 9, Walter E.

company

& Co.;

Loeb

Natural

Corp.

writer—Paine, Webber, Jackson

the

Underwriters—White, Weld &

Co.; Kidder, Peabody & Co.; The Dominion /Securities
Corp.; and Union Securities Corp.' Registration — Ex¬
pected soon.:///? /'•""/'/•/ v'."T\ V///." /. / •;//'•:}

(jointly);'Lehman

The First Boston Corp.

March 9, Leslie M. Cassidy, Chairman, said the corpora¬
tion is studying possibilities for expansion that could

Hainan Aircraft

Hart

construction program.

announced that it is estimated
that total construction expenditures planned to start in
the current year and to be completed in mid-1959 will*
amount to a minimum of $200,000,000. Underwriters^—

mortgage bonds.

$9,000,000 fifst

sell

Steel

National

March

Jersey Central Power & Light Co.
Feb. 6 it was reported company may later
and

April of 1955/Price—$10 per share. Proceeds—To¬
gether with funds from private sale-of $35,000,000 addi¬
first mortgage bonds, * and $10,000,000. of 5.6 %
interim notes and borrowings from banks, will be used
tional

Brothers;
White, Weld & Co., Blyth & Co., jnc. and Union Securi¬
ties Corp. (jointly); Kuhn, Loeo & Co.; Glore, Forgan
& Co. and Salomon Bros. & Hutzler (jointly).

Co.jr Equitable-Securities Corp.; Hemphill, Noyes & Co.
and Drexel. & *C6.r(jointly). Bids — Expected June 7.

issue

and.Savard

* Montreal Transportation Commission ; * :
r >
April 23 it was reported early registration is expected
of
$11,500,000 of sinking fund debentures due 1976.
Underwriter—To be determined by competitive bidding.
Probable bidders: Shields & Co., Halsey, Stuart & Co.*

Proceeds—For con¬
struction program. Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.;' Union Securities Corp.; Blyth & Co., Inc.;
Lehman Brothers, Goldman, Sachs & Co. and The First
Boston r Corp. J (jointly); W. C. Langley & Co., White,
$10,000,000 of first mortgage bonds.

Weld & Co. and Shields & Co.

March

^ Michigan Bell Telephone Co.
April 19 company applied to the Michigan P. S. Com¬
mission for permission to issue and sell $30,000,000 of
40-year debentures later this year. Proceeds—For con¬
struction program.
Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Morgan Stanley & Co.
'J //■

March 21 it was announced company has applied to the
Indiana P. S. Commission for authority to issue and sell

gather¬

plans call for private sale of first mortgage bonds and
public offer of about $40,000,000 of securities (probably
notes, convertible into preferred stock at maturity, and
common stock).
Underwriter—Salomon Bros. & Hutzler,-

Probable bid¬

Boston Corp.

Houston, Texas
Feb. 29 it was announced an application has been filed
with the FPC for permission to construct a 961 mile
pipeline system to cost $105,836,000. Underwriters—May
be Blyth & Co., Inc., San Francisco, Calif.; and Scharff
& Jones, Inc., New Orleans, La.

It is estimated that this

ing system will cost approximately $150,000,000. Type
of financing has not yet been determined, but tentative

Co.

Peabody &

by competitive bidding.

pipeline off-shore the coast of
the Gulf Coast of

gas

Sabine River to

the State of Mississippi.

Smith, Barney & Co. and Goldman, Sachs & Co.

ders:

the

Louisiana from

issue in June
or
July, depending
upon
market conditions, about
$5,000,000 of preferred stock (in addition to about $5,000,000 of bonds).
Underwriter — For preferred stock also
.

(4/26)

(Territory of)

Harwaii

364-mile submarine

Metropolitan Edison Co.

April 26, 1956

company

—

Kansas

City Power & Light Co.
April 6 it was announced stockholders will vote April 24
on
increasing bonded indebtedness of the company by

$20,000^000. Underwriter—To be determined by compet¬
itive bidding.

Probable bidders: Halsey, Stuart & Co.
Inc.; The First Boston Corp. and Blyth & Co., Inc.
(jointly); Equitable Securities Corp.; White, Weld & Co.
and Shields & Co. (jointly); Kuhn, Loeb & Co., Salomon
Bros. & Hutzler and Union Securities Corp.
(jointly);
Brothers

Lehman

and

Bear,

Stearns

Co.

New

Kansas

Power

March 21 it

tional

stock

,l-for-10. basis.

•

Light Co.

reported

was

common

New York.

common

Underwriter—The

stockholders

First

Boston

•
,

offer addi-

company may soon

Corp.,

Kay Lab., Inc., San Diego, Calif, t

March 26 it

first

mortgage

Chicago & St. Louis RR. (5/8);
expected to be received by the company on
May 8 for the purchase from it of $4,650,000 equipment

was

Bids

and

(

Mutual Telephone Co., Taft* Calif.
March 12 it was reported company plans to issue and
sell 12,000 shares of preferred stock (par $25). Proceeds

are

trust, certificates. Probable bidders: Halsey, Stuart & Co.
Inc.; Salomon Bros. & Hutzler; Kidder, Peabody & Co.

Kern

•

outstanding 6% preferred stock, to repay
for improvements, etc.
Underwriter—
Central Republic Co., Inc., Chicago, 111.
«
."/ : "
loans

and

Kimberly-Clark Corp., Neenah, Wis.

;

Nov. 22 it

was

announced that

the

company plans fur¬
ther financing, the nature and extent of which has not
yet been determined, except it is not the present inten¬
tion

sell additional

common

used to pay for further

additional
New

$37,000,000.

stock.

Co.

Northern

24, E. B. Germany, President, announced that the
company plans the private and public sale of new secu¬
rities during the first half of the current year. Proceeds
—To

retire

indebtedness of company held

by the RFC
Treasury Department. Underwriters—Probably
Rupe & Son; Estabrook & Co.; and Straus &

the

Dallas

Blosser.

sell

reported

plans to issue and
Fall $20,000,000 to $25,000,000 first
mortgage

bonds.

was

Underwriter

bidding.

Probable

—

company

be determined by competitive

bidders:

Halsey, Stuart & Co. Inc.;
Langley & Co.; Blyth & Co., Inc. and The First
Boston Corp.
(jointly); Blair & Co., Incorporated and
Baxter, Williams & Co. (jointly); Smith, Barney & Co.
W.

Metropolitan Edison Co.
Feb.
the

6
sale

was

reported

additional

that

first

company

mortgage

considering

bonds

later

this

year, (probably about $5,000,000 — in June or July).
Underwriter—To be determined by
competitive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; White, Weld
& Co.; Blyth & Co., Inc.;
Kidder, Peabody & Co. and
Drexel & Co. (jointly); The First Boston

•

Jan. 19 it

Corp.

Gas Co.

was

1986.
—To

Power

Co.

announced company

(Minn.)/
plans to issue and sell

$20,000,000 of first mortgage bonds due

Proceeds—For construction program. Underwriter
be determined by competitive bidding. Probable

bidders: Halsey Stuart & Co.

been

determined.

Proceeds—To

help finance'

probable bidders include Halsey, Stuart & Co. Inc.; The
First Boston Corp.; Kuhn, Loeb &; Co., and Lehman
Brothers

(jointly); Morgan Stanley & Co. and Drexel &
' ,'///. ; Z v
I.'

Co. (jointly).

p. .•

Puget Sound Power & Light Co.

Inc.; Blyth & Co., Inc. and

The First Boston Corp. (jointly); Merrill Lynch,
Fenner & Beane, Kidder, Peabody & Co. and

that its/
construction
program
for the
years
1956-1959 will
amount to $87,000,000, including $2O,0OO#OOO budgeted for
1956. This large expansion; the company says, can be
financed wholly by debt and from internal sources. Un¬
derwriter—If determined by competitive bidding,/may
include Halsey, Stuart & Co. Inc.; Tbe-First Boston Corp,

Bates Offahore Drilling Co, ;/ // /r i
reported early registration is expected?
of about 160,000 shares of common stock./* Underwriter
—Hulme, Applegate & Humphrey;* Inc./Pittsburgh; Pa.

Reading

March 29 it

was

Reading Co. (5/24r/// /////-,/ /••/
April 5 it was reported company plans late in May to
issue and sell $6,600,000 equipment
trust Certificates.;
Probable
Bros.

Pierce,

bidders:

Halsey, Stuart & Co/ Inc.; Salomon
/ /
; . .
* " // /
>
;

Hutzler.

& Electric Corp*
/
/,' / '// * * ' /
announced stock holders-will vote- May •

Rochester Gas

March" 21 it
on

was

approving

proposal to increase the authorized

preferred stock by 100,000 shares <par $100), of which
it is planned to issue 50,000 shares later in 1956. Underwriter—The First Boston Corp.
'
,

Sierra

April 12 it

Pacific
was

Power Co.

announced

company

is planning to offer

62,576 additional shares of common stock to its common
stockholders on a l-for-10 basis and 80,500 shares of
new cumulative preferred
stock (par $50) first in ex¬
change for outstanding 6% preferred stock (which is
callable at 115). (See also under "Securities in Registra¬
tion" in a preceding column.) Underwriters — May be
Stone & Webster Securities Corp. and Dean Witter &

White,
(jointly); Equitable Securities Corp. and
Union Securities Corp. (jointly); Smith, Barney & Co.;
Lehman Brothers and Riter & Co. (jointly); and Glore,

March

Forgan & Co.

Co.

Norway

(Kingdom of)

April 17 it

was announced

a registration statement will
covering a proposed issue of $10,000,000 to $15,000,000 of 15-year bonds. Price—To be named
later. Proceeds—Together with $15,000,000 to $20,000,000
of borrowings from the World Bank, for construction
of a large hydro electric power plant.
Underwriters—
Kuhn, Loeb & Co.; Harriman Ripley & Co. Inc.; Lazard
Freres & Co., and Smith, Barney & Co. and associates.

be filed next week

Offshore
Nov.
pany

Gathering Corp., Houston, Texas
C. Bintliff, President, announced com¬
has filed an application with the Federal Power
18

David

Commission

for

certificate

necessity

Feb. 15 the company announced that it estimates

reported company plans to finance its

States

later this year

Weld

+ Long Island Lighting Co.
April

was

company

1956 construction program (costing about $40,000,000)
through issuance of debt securities and treasury funds.
Underwriter—Probably Blyth & Co., Inc.

Underwriter—Blyth & Co., Inc.,

Jan.

and

March 12 it

York.

Lone Star Steel

Natural

Northern

Proceeds—To be

expansion, estimated to cost

reported

was

securities to be issued and the time of sale'

new

not

plans to spend about
$52,000,000' for new construction in 1956 and 1957 ($29,000,000 in 1956 and $23,000,000 in 1957). Of the total
about $30,000,000 will be obtained from new financing,
the type of which has not yet been determined. Under¬
writer—For any preferred stock, Central Republic Co.
Inc., Blyth & Co., Inc., and Merrill Lynch, Pierce, Fen¬
ner & Beane (jointly).
Bonds may be placed privately.

.—To redeem
bank

Northern Indiana Public Service Co.~

March 13 it

construction program. Underwriters—For any debenture
bonds — may be determined by competitive bidding;

bonds

New York,

reported company plans to sell between
$1,000,000 common stock early in May.
Underwriter— Shearson, Hammill & Co.,-New York and
Los Angeles. Registration—Expected in April. - /
y.

$900,000

was

$10,000,000

have

announced company

plans to issue and sell
during October
of 1956.
Underwriters—To be determined by competi¬
tive bidding.
Probable bidders:" Halsey, Stuart & Co.
I. Inc.; Kuhn, Loeb & Co., Salomon Bros. & Hutzler, Union
Securities Corp. and Wood, Struthers & Co. (jointly);
Lehman Brothers; The First Boston Corp.; Equitable Se¬
curities Corp.; Merrill Lynch, Pierce, Fenner & Beane,
Kidder, Peabody & Co. and White, Weld & Co. (jointly).

(jointly).

of the

England Power Co.

Jan. 3 it

Amount and timing has not yet been determined.

Public Service Electric & Gas Co.

April 16, Lyle *McDonaldr Chairman, estimated that re-,
quirements for new capital this year will be approxi¬
mately $80,000,000 to $85,000,000. The types and amounts-

build

Co.

exemption from competitive bidding is obtained.

South Carolina

Electric & Gas Co.

9, S. C. McMeekin, President, announced that it
expected that $10,000,000 of new money will be re¬
quired in connection with the company's 1956 construc¬
tion program.
The company proposes to obtain a part
of its new money requirements from the sale of $5,000,000 of preferred stock and the balance from the
private sale of $5,000,000 principal amount of bonds.
Underwriter—Kidder, Peabody & Co., New York.
Southern

Jan. 30 it

Counties

was

reported

Gas Co. of
company

California

may

in the Fall offer

$15,000,000 of first mortgage bonds. Underwriter—To be
determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; The First
Boston Corp.; White, Weld & Co.; Merrill Lynch, Pierce,
Fenner & Beane.

Number 5528«.. The Commercial and Financial Chronicle

Volume 183

(2065)

Transcontinental Gas Pipe Line Corp.
April 17, Tom P, Walker, President, announced that ne¬
gotiations had been completed for the sale of $40,000,000
first mortgage pipe line bonds in May and $2O,O0O,OOO of
debentures in November. May be placed privately. Pro¬
ceeds—To retire presently outstanding. $60,000,000 bank

Southern Nevada, Power Co.
Nov. 7 it was announced company plans to sell in 1956

approximately $10,000,000 of new securities (probabl>
$7,000,000 first mortgage bonds and $3,000,000 preferred
and common stocks). Proceeds—For construction pro¬
gram. Underwrlters-^For stocks: Hornblower & Weeks,
New York; Wiliam K. Staats & Co., Los Angeles, Calif.;
and First California Co., San Francisco, Calif.
Bonds
are to, be placed privately.

loan.

announced company is considering is¬
to'^stockbolders later this year of some
additional common stock ipu a pro rata basis (with an
was

Underwriter^-None.

f Union Electric Co- of lVlissouri

V. ^
Spencer Telefilm Corp., Beaumont, Texas;.

■;t

Jan.16 it

was

announced company plans

to ofter pub-

sell

Vita Food Products, Inc., NewYork

first

•*

14,T!956, $35,000,000 to $40,000,000

prior to 'Sept.

mortgage an# "Collateral

trust bonds;

New York.

ProceedsL-

To repay bank lo^ns" abd for
iicly to Texas ^residenta #$,000ishares of capital stock.
^construction program.*
Underwriter-LTo be determined by competitive bidding.
PricC-^$i.50 per- share.\Bnsiness---To produce, sell and
^distribute syndicated filins for television. Underwriter^
Probable bidders:
Halse^i: Stuart & Co. Inc.; Lehman
i^ter^Stacy:'Co^HduSt^;T^x,
-L'vi
V^/:VrV:" Brothers
anttfieari; Stearns & Co. (jointly); Blyth &
Tsunpa:Eledtrie-:Cd.^;'(id/I) :-^-r S*;-,?7~Co., Inc. andItJriioif Securities Corp. (jointly); The First'
Fel>. 18

& Co. Inc.

V
Chemical

Thiokol

order to effect
ment of

new

;

100%

stock dividend

and the

sale

owns

ance

Co., which

stockholders.

owns

.V*

;.v'-

indicated that

was

'<77

bit it nationwide syndicate, and is; exnumber of pected: to reach market about the

pension funds, including- those^ of

^^JVleanwhile^ it

was

middle of next month.

syndicate. This offering
backed up badly upon initial off¬
ering to yield 3.85%. But when
loosed from syndicate it settled
back to around a 4% basis and
the

Underwriters of
securities

new

corporate

heart

took

this

thus

indications that the
; reportedly was picked up in good
might be approaching a volume around that level.
:
new base for doing business. After
weeks of encountering stern re¬
v
Ontario Issue Out Fast
sistance from institutional inves¬
Another issue that might prove
tors of one type or another, it ap¬ a straw - in - the - wind, was the

■-

$50 million of 25-year debentures
brought out, of course, by the
negotiated route.

Presumably even some among
the institutional portfolmmen are

Ontario's offering of

Province of

deal that carried the necessary ap¬

the
of a mind to view the basic money
opening of subscription books it
market as having shaken off its was evident, according to those in
latest spasm of increasing rates. -a position to judge indications of
Whatever
the motivating force demand, that this piece of business
some of these guardians of other
was slated to be a "sell-out.".;
-

maturity

average

slightly less than 15

years.

7.;:: 7-

For

several

days

investments

were

more,

inclined to look the field over

raised

Funds

recent instances.
.

through

fi¬

the

nancing will be advanced to the
Hydro-Electric Power Commis-,
sion to finance certain capital ex¬
.

which may
prove to have been the bellwether penditures which it has budgeted.
in
this
phase of the market's
Big General Motors Block
churning turns out to be Wiscon¬
sin Electric Power Co.'s $30 milThe Street was girding itself for
u
,,r ■■
■
..
,
.
lipn of 30-year first mortgage the job of
specific

issue

handli^ another big

bonds which came to market yes¬

terday.

Put up for bids on
a

Tuesday, this
top tender of

3%%: coupon with the

tenders of several other bidders
making it plain they were bidding
on

are

Currently, it is believed that the

big

offering

common

the

basis.

This

General

Motors

stock for the account

Alfred

view io reoffer- Inc., will
3.75% to 3.80% yield Tuesday.

generally with
ing

conditions

if
right.

week,

undertaking drew101.039 for

Sloan

Foundation,

along

about

undertaking

involves

the

repriced sale of a block of 1,278,333 shares
the issue at 101.875 for an indi¬ of the big motor maker's stock becated return to
the buyers of queathed to the Foundation by
3.77% and reports were that up¬ the late Mrs. Alfred P. Sloan, Jr.
,

The

successful

group

ward of 80% of the issue

spoken for before books
opened.

had been

actually

Observers Impressed

What impressed market observ¬
ers was the caliber of the buying

reported in the Wisconsin Electric
Power bonds. Some New England

report¬
those taking down al¬

insurance companies were
ed

among

May

purchase from it of $3,285,000 equipment trust

certificates, series S, to be dated June 1, 1956 and to
mature

annually June 1, 1957 to 1971, inclusive. Prob¬

able bidders: Halsey, Stuart &
&

Co. Inc.; Salomon Bros.

Hutzler; Kidder, Peabody & Co.; Blair & Co. Incor¬

porated.

..7

White Eagle International Oil Co.

April 2 it
common

was

reported company plans to

stock * offering. 7

Underwriter—Paine, Wgbber,

Jackson & Curtis, Boston and New York.

•

thereafter through May

activity is the supplying of rail¬
road freight cars to shippers and

i97v
Gross income of the. corporation
from manufacturing and services

railroads.

1.954; income available for inter¬
est, $29,505,877 contrasted with

States..

Dr. Cecil L.

and. maintains

owns

Debt

Burrill, Chief Econ¬

will be the guest speaker at
luncheon
meeting
of
The

Women's Bond Club of New York.

The

lotments.

General Electric Co.

registration

this

$300 million of
bentures which
offered for
Well

gest

new

week
new

are

went into

with

its

20-year de¬

to be publicly

capital purposes.

among

the year's big-

underwritings

date,

tfyis

distribution will be handled by a

supplied

are

tries

well

in other industries

requiring specialized freight

cars.

'/i

The

corporation

manufactures

and

capitalization of the freight cars for its own fleet and
It also owns
and its subsidiaries for sale to others.
outstanding on April 1, 1956 con¬ and operates other manufactur¬
sisted
of
$160,149,610 debt, of ing plants, bulk liquid storage
which
$129,699,610
represented terminals and freight car repair
equipment trust obligations, and shops. In addition it furnishes a
2,381,079 shares of common stock. diversified line of products and
'
General
American's
principal services.

subject of Dr. Burrill's talk

will be "The Petroleum Outlook."
The

luncheon

will

held

the Bankers

Club, 120 Broadway,
12.15 p.m., Thursday, May 3,

" /'V.

1956.

'■

;

Notes

NSTA

General American

Transportation Offer
Underwritten by
Kuhn, Loeb Group
General

American

bentures

for

each

stock held

Transporta¬

of record

1956. The subscription
offer
will
expire at 3:30 p.m.
(EDT) on May 9,1956. The offer¬

April 25,

ing is
group

being underwritten by a
headed by Kuhn, Loeb &

Inc.

(STANY)

proceeds from the sale of
will be used for
additions to General American's
fjeet 0f railroad freight cars and
for additional tank storage term¬
debentures

inal facilities.

will be con¬
into common
stock at a conversion price of $75'
a share through May 1, 1961; $80
a
share during the five
years
debentures

initially

and $85 a

Krumholz,

Wechsler, Gersten——

46^

Bradley (Capt.), C. Murphy, Voccoli, Picon, Hunter

Kaiser

40 5

(Capt.), Kullman, Werkmeister, O'Connor, Strauss_

(Capt.), Bies, Pollock, Kuehner, Fredericks.40

Leinhardt

Barker (Capt.),
Donadio

Bernberg, H. Murphy, Whiting, McGovan__

(Capt.), Brown,
(Capt.), Farrell,

Krisam

Groriney

Rappa,

Shaw,

Clemence,

Demaye__„_____. 34

Gronick, Flanagan.__

(Capt.), Define, Alexander, Montanye, Weseman."

34
33

Meyer (Capt.), Corby, A. Frankel, Swenson, Dawson Smith. 32^
(Capt.), Jacobs, Barrett, Siegel, Yunker^

Hanson

29^

Leone

(Capt.), Gavin, Fitzpatrick, Valentine, Greenberg_-

Topol

(Capt.),

Eiger, Neiman,

Weissman, Forbes

Hank

if|

;;; ^ i

25^

24^

2()0 Point Club

Point Club

Hank Serlen

Net

through May 1, 1966;

OF NEW YORK

of New York,

Points:

(Capt.), Gold,

The

'<»

■

Team:

Serlen

c0.

vertible

Traders Association

Security

Bowling League standing as of April 19, 1956 is as follows:

scribe for $23,810,700 of 4% subor(jinated debentures due May 1,
1981,
convertible Into, common
stock through May 1, 1971.
The"
debentures are being offered to
stockholders at 100% in the ratio
of $100 principal amount of de¬
common

ASSOCIATION

SECURITY TRADERS
"

tion Corp. is offering to holders of
its common stock the right to sub-

the

General Electric Registers

cars

mainly to shippers in the petrolleum, food and chemical indus¬

corporation

omist of Standard Oil of New Jer¬

sey,
the

share,

To Hear Barrill

before

The

(5/2)

people's

equip¬

new

expected to be received by the company

are

$27,451,121; and net income, $12,491,456 or $5.24 per common share
compared with $11,380,466 or $4.79

Women's Brad Clob

from

situation

peared they had come up with a

making

tpre issue when it was cut loose

peal. v;

;

repotted thatToiTIhe original issue by maturity,

rather brisk interest developed in
the Columbia Gas System deben-

Week

Proceeds—For

debt

:77/■

Underwriter—Blyth & Co., Inc., New York and

2 for the

one

Registration—Ex¬

■

a
fleet of approximately 62,500
; New "York City, the State of Mas.The
debentures
will
have
a.
sachusetts and others on the West sinking fund which willi
provide during 1955 totaled $161878,609 ^jca^s, the largest rprivately^owned
-Coast were among the purchasers. fQr
compared* with."*r$lS6,2"3L5(i2^ iri ileet of freight cars in the United
redemption joi upward of

Offering—Tentatively planned for
•?.

held; rights to expire

;

Bids

to stock¬

Underwriters—William Blair & Co., Chi¬

June 20»

ic Western Maryland Ry.

would sell shares to

Rhoades & Co., both of New York.

-■

reported; company plans to issue and

San Francisco.

cago, 111., and The First Boston Corp, and Carl M. Loeb,

pected about June 1.

was

$5,000,000 of debentures.

ment.

Continental

And to sweeten the pot a

jviv\v':

sell

51% of the presently outstand¬

about 24%

-'V

value, in

basis

share for each two shares to be held.

:
rV.

April 26 it

ing stock will reduce its holdings and Continental Assur¬

common

t' «'

^ Western Airlines, liic..

two-for-one stock split, provide for pay¬

Casualty Co., which

was

additional

par

holders of 100,000 additional shares on the

reported company may issue and sell some
stock this year.
Stockholders will
vote April 19 on increasing the authorized common stock
by 500,000 shares- to 1,000,000; shares. Proceeds—For ex¬
pansion. Underwriter—Probably Lehman Brothers, New
■;Ydrk;;'V'v^■ :
April 9 it

Co.

announced stockholders will vote May 14

was

7;„7

Proceeds-^Tp increase
capital and surplus.. Underwriters—Dean Witter & Co.,
Blyth & Co., Inc., an# The First Boston Corp.
: :
;

rV Si '"/■

;

value to about 1,100,000 shares of $2

par

Underwriters—Stone & Webster
Weld & Co. and Halsey, Stuart
.•
;vj.;;;
\.v_\

Corp.

■::■ .v

(6/20);;V'

77.

May 9.; " Price—$75 per share.

changing the capital stock from 250,000 shares of $&

reported company may later this year

sell $50,000,000 of bonds.
Securities Corp., White,

-A''

share for each 4%' shares

new
i

■■'KC.r'X V

April 12 it

/, Tennessee Gas Transmission Co.

Shields

;;

April li the Bank- offered its stockholders of record
April 9 the -right to subscribe for 100,000 additional,
shares of" capital stock (par $20): onT the hasis of one,

United SUites Life Insurance Co. of New York

TaylorFibre Co., Morris to wn,Pa.
April 9 it was reported registration is expected early
in May of sufficient common stock to raise approxi¬
mately $500,000.
Proceeds—To a selling stockholder.
Underwriter—Stroud & Co., Inc., Philadelphia, Pa.

was

Co. arid

(jointly),

Halsey/ Stuart & Co. Inc.; Stone & Webster Securities
Corp.; Goldman, Sachs & Co.; Kidder, Peabody & Co.

Corpl;. White, Weld &

Boston

•

Wells Fargo Bank, San Francisco, Calif.

ceeds-^For Construction program.
Underwriter—To be
determined at competitive bidding.
Probable bidders:

Jan. 28

was reported early registration is expected
of 60,000 shares of common stock Proceeds—To selling
stockholders. Underwriter-^Granbery, Marache & Co.,

it; "waa -reporia^ company may issue arid sell
around Oct7 i,: $i0,000,()()(l' of first mortgage bonds. Pro-

refunding

and

April 23 it

April 23 it wai? armminced company plans to issue and

first

mortgage bonds.
competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb
& Co., American Securities Corp. and Wertheim & Co.
(jointly); Salomon Bros. & Hutzler; Stone & Webster
Securities Corp.; White, Weld & Co.; Union Securities
Corp. Bids—To be opened on Sept. 25.

(9/25)

plans to issue and sell

Underwriter—To be determined by

April 2 it was reported company may offer an issue of
up to $7,000,000 of debentures.
Underwriter—Hirsch &
Co., New York.

suance and sale

oversubscription-privileg^);

■.

$20,000,000

UM & M T-V Corp.

^Southern Union <5ae CoApril 19 it

;

Virginia Electric & Power Co.
Feb. 6 it was announced company

ITTfT

Serlen

217

Jack Manson

211

Will Krisam

211

permission of and thanks to Stroud & Company, In¬
corporated, the Security Traders Association of New York an¬
nounces
the initiation of a Perpetual Annual Trgphy to be
With the

awarded

the

NSTA member

who most closely predicts the

standing of the Dow-Jones Industrial Average at the close of busi¬
ness on the date of STANY's 21st Annual Dinner in 1957.
In

the

"Chronicle" of April

19 it

was

that Stroud & Company, Incorporated were

incorrectly indicated

sponsoring the trophy.

The Commercial and Financial Chronicle...

(2066)

The

Indications of Current

following statistical tabulations

latest week

Business Activity

week

month available.

month ended

Latest
AMERICAN

Equivalent

Week

Ago

£99.7

"ioO.2

99.6

95.6

April 29

§2,454,000

* *2,466,000

2,452,000

2,307,000

AMERICAN

oil

output—daily

condensate

and

(bbls.

average

gallons

Crude

runs

Gasoline

output

Distillate

fuel

(bbls.)

April
April
April
April
April

(bblsJ
(bbls.)

output

Kerosene

oil

output (bbls.)

(bbls.)

{) 7,171,100

7,155,900

April 13

each*
to stills—daily average

7,153,400

New

117,551,000

7,517,000

13
13

25,417,000

25,579,000

7,986,000
26,056,000

2,342,000

2,510,000

and

12,170,000

12,174,000

12,910,000

10,841,000

7,131,000

8,178,000

7,559,000

9,042,000

197,322,000

195,941,000

1,618
>

1,675

2,156
'

5.94J

4,881

2,833

118

V $262,604,000

$262,888,000

$226,836,000

236,448,000

233,822,000

10,768,000

10,588,000

12,386,000

38,225,000

32,776,000
20,318,000

235,409,000

•V

17,644,000

17,959,000

STANDING

60,808,000

67,386,000

63,360,000

Residual fuel oil (bbls.)

April 13

32,788,000

32,651,000

35,038,000

19,451,000

60,832,000

44,741,000

NEW

RAILROADS—

freight loaded

742,053

685,397

685,985

662,943

655,544

660,958

*■

FEDERAL

—

service

155,>
OUT-

Dollar

—

BANK

31:

c.,,;",

credits—--—j

exchange
on

RESERVE

March

iJ—
—
.iL—Tn:,:.

Domestic shipments
Domestic warehouse

670,304

freight

ACCEPTANCES

YORK—As of

—^

Exports

Based

Revenue
Revenue

DOLLAR

Imports

*•'

17,607,000

April 13

AMERICAN

April 13

(bbls.) at

of March: "

BANKERS'

181,864,000

Ago

cars

delivered-—.

cars

Locomotive units installed

8,026,000

195,059,000

ASSOCIATION OF AMERICAN RAILROADS:

Year

Month

INSTITUTE—

2,177,000

Distillate fuel oil (bbls.) at

Kerosene

freight

new

freight

Month

;

24,017,000

2,067,000

Stocks at refineries, bulk

Finished

CAR

March:

for

ASSOCIATION

6,828,450

terminals, in transit, in pipe linesunfinished gasoline (bbls.) at
—April 13

Residual fuel oil output

of that date?

of
'•

RAILWAY

Month of

Orders

AMERICAN PETROLEUM INSTITUTE:
Crude

are as

Month

April 29

castings (net tons)

of quotations,

cases

either for the

are

Latest

to—

Steel ingots and

or,

Year

Week

operations (percent of capacity)

steel

Month

INSTITUTE:

STEEL

AND

IRON

'Indicated

production and other figures for the

cover

Dates shown in first column

that date,

Thursday, April 26, 1956

—1—

goods

stored

17,576,000

-—_

and

shipped

foreign

countries

56,496,000

between

602,423

(number of cars)
April 14
received from connections (no. of cars)—April 14

182,141,000

94,404,000

106,156,000

93,100,000

$660,025,000

$666,548,000

$806,968,000

$19,847,491

$22,232,353

CIVIL

ENGINEERING

CONSTRUCTION

Total

ENGINEERING

—

...i—

NEWS-RECORD:
Total

Private

April 19

construction

State

and

municipal

Federal

$529,844,000

$501,318,000

376,133,000

392,864,000

233,676,000

149,829,000

153,711,000

108,454,000

119,912,000

109,657,000
44,054,000

94,646,000

BUILDING

$382,796,000

386,544,000

April 19
April 19

$536,373,000

April 19
April 19

construction

Public

29,917,000

149,114,000
,

England—

Middle

Bituminous

(U,

coal

Pennsylvania

OF MINES):

BUREAU

and

April 14

10,050,000

(tons)—

anthracite

DEPARTMENT STORE

—April 14

545,000

SALES

ELECTRIC

Electric

100

9,230,000

8,413,000

;

"f;:;.-.,

104

114

11,134,000

9,697,000

255

208

204

5.179c

BRADSTREET,

INDUSTRIAL)

AND

—

$60.29

$59.09

$56.59

$55.50

$54.83

$50.17

$36.00

10,894,000

252

April 17
April 17
April 17

10,918,000

INC

'M. if-

Finished

steel

18,495,762
66,499,347

$437,782,749

$542,997,099

89,172,555

59,577,583
483,412,516

Pig iron

(per gross ton)

Scrap steel

...

ton)

(per gross

—

PRICES

METAL

Electrolytic

(E.

New

BUSINESS

York

Wholesale
Retail

450,269,381

224

refinery at
Export refinery at
Straits tin (New York)

119

520

150

141

108

102

1,170

1,024

1,038

$15,649,000

$17,647,000

$16,921,000

number
service

Zinc

(New York)

L April 18
..April 18

46.150C

46.275c

46.775c

Total

number

48.100c

50.100c

April 18

97.875c

99.250c

101.375c

16.000c

16,000c

16.000c

—

April 18

15.800c

15,800c

15.800c

14.800c

Construction

„

April 18

13.500c

12.000c

Commercial

„

47.125c

35.700c

-April 18

(St.

Louis)

(East St. Louis)

.-V'-./

Government Bonds

;

38.050c

—

Manufacturers'

92.125c

Wholesale

15.000c

Retail

—April 24

Railroad

Group

Utilities

Industrials

MOODY'S

liabilities

—

liabilities

5,433,000

5,048,000

12,430,000

14,693,000

7,089,000

9,881,000

4,468,000

2,015,000

1,920,000

2,916,000

$42,622,000

$49,189,000

$41,209,000

12,822

12,503

13,417

$560,000

$588,000

$681,000

——

liabilities

liabilities-

service

4,932,000
*"

11,972,000

112.93

106.74

107.44

109.24

110.70

104.83

105.69

107.27

109.60

100.49

100.81

102.30

104.48

April 24

103.80

104.31

106.21

-April 24

YIELD

DAILY

105.69

107.80

STATES—DUN

COMMERCIAL

109.97

107.98

110.52

April 24

3.07

"April 24
""April 24
"April 24

3.42

3.32

3.30

3.26

3.13

3.35

3.31

3.21

ERAL

PAPER

Mar.

April 24

3.46

3.41

3.32

3.19

Group

2.95

2.77

3.46

3.72

3.70

3.52

3.49

3.20
:

„

3.01

3.61

3.44

3.37

3.29

3.17

3.41

3.41
422.8

412.3

400.4

3.28

BANK

NEW

YORK—

SALES—SECOND

■

FED¬

DISTRICT,
FEDERAL
RESERVE BANK OF NEW YORK—1947-49
(average

March:

(average

monthly),

unadjusted

104

„i

daily), unadjusted—
Sales (average daily), seasonally adjusted
Stocks, unadjusted
Stocks, seasonally adjusted,.

3.31

424.6

(000's omitted)——„—

Average=100—Month

April 24

BRADSTREET,

RESERVE

Sales

3.38

OUTSTANDING—FED-

STORE

Sales

3.48

..April 24

Group

ERAL

April 24

Group

3.10

(NEW) IN THE

March—

RESERVE

3.13

"April
"April

Utilities

UNITED

DEPARTMENT

Industrials

AVERAGES:

Average corporate

Railroad

106.39

;

INCORPORATIONS

; INC.—Month

105.17

—April 24

——-

Aaa

Baa

107.44

BUSINESS

Group

liabilities

109.42

110.70

Government Bonds

Public

liabilities

Total

96.32

107.27

108.34

—

Group

BOND

94.24

105.52

107.62

—April 24

92.34

104.83

—April 24

92.79

-April 24
—April 24
—April 24

Average corporate
Aaa

Public

BOND PRICES DAILY AVERAGES:

MOODY'S
U.

225

108
511

Lead

202

122
572
!

copper—

Domestic

Lead

348,610,194

BRADSTREET,

number

Commercial

92,135,424.

March:

number

Construction

QUOTATIONS):

•

City

FAILURES—DUN

Manufacturing

;

-j:

—

United

INC.—Month

(per lb.)

29,963,928

99,180,764

States.——„—J: $502,781,853
York City—1
:
52,512,472

New

IRON AGE COMPOSITE PRICES:

42,651,962

54,570,182
96,005,691

24,454,605

•

DUN

—

106,256,795

109,355,083

"- Total

4.797c

April 21

April 19

(COMMERCIAL

20,888,474

——————

Outside

FAILURES

-_1

78,464,404
77,236,207

31,041,504

Li.

__-j—

44,015,042

87,614,619 "

■

$15,915,875
-116,267,638

94,016,006

—.

_—

Central

Pacific

INSTITUTE:

87,931,061
48,521,484

West Central „i___—_

103

105

_„i

Centra}*

South

407,000

430,000

Atlantic

Mountain

April 14

—

(in 000 kwh.)

output

8,595,000
462,000

INDEX—FEDERAL RESERVE

SYSTEM—1947-49 AVERAGE
EDISON

East

(tons)

lignite

DUN

—

CITIES—Month

Atlantic

South

COAL OUTPUT

VALUATION

INC.—215

March:

'New

116,194,000

32,920,000

13,808,000

PERMIT

BRADSTREET,
-

;

107

105

106

125

116

122

3.14

;

124

113

...

MOODY'S COMMODITY INDEX

NATIONAL

PAPERBOARD

Orders received

Unfilled orders (tons)

AVERAGE

247,625

380,425

265,047

235,891

285,493

276,703

281,572

266,031

..April 14

100

..April 14

activity
at end of period

OIL, PAINT AND DRUG
1949

April 14

..April 14

602,710

647,160

(tons)

Percentage

REPORTER

-j

>■;/<

570,946

514,762

INDEX—

PRICE

EXCHANGE
sales

Number

—

April 20

dealers

EXCHANGE

(customers'

108.62

;'v V

108.45-:.

•

107.57

All

1,608,764

1,274,329

$65,796,336

$86,427,561

$81,105,948

$64,645,879

1,326,752

1,280,112

8,383

9,390

8,451

Mar. 31

1,092,462

1,318,369

1,270,722

1,177,279

$55,588,549

$67,600,841

$64,556,694

293,700

296,470

313,770

Mar. 31

293,700

296,470

3T3",770

320,220

Mar. 31

422,380

565,456

612,360

413,560

sales

THE

STOCK

Short sales
sales

$78.59

♦$78.17

$75.11

84.05

♦84.05

81.56

—

70.31

♦69.65

66.70

40.3

♦40.5

40.8

•41.0

39.5

39.8

39.7

$1.95

$1.93

$1.85

—

-1—

goods
goods

—

569,630

715,550

All

manufacturing

Durable

14,108,750

goods

—

2.06
—.

15,116,470

14,824,300

14,849,890

1.97

•1.75

1.68

142

2.05

1.78

goods

ERNORS

THE

Seasonally adjusted
Unadjusted

143

135

145

144

138

♦80.8

78.7

RESERVE

FEDERAL

„

of March:

—

COMMERCE

of Railway

COMMISSION—

Employment at middle of

14,275,030

11,998,350

March

3——i

(1947-49=100)—.

METAL OUTPUT

(BUREAU

81.4

MINES)—

ROUND-LOT

TRANSACTIONS

FOR

ACCOUNT

MEM-

Month

Other

Mar. 31

sales

1,566,540

1,463,560

1,874,040

1,957,990

1,760,830

327,790

396,990

337,270

the

25,000

28,620

50,250

36,900

316,200

366,620

271,890

395,240

322,140

580,972

654,620
99,630

125,320

671,751

866,105

808,028

89,100
573,701

Mar. 31

766,621

965,735

933,348

662,801

Mar. 31

2,305,352

2,879,240

2,847,502

2,664,051

"IIMar.
I_Mar.

392,030

446,400

567,020

458,690

2,179,351

2,788,615

2,646,458

2,372,751

I_Mar.

sales

2,571,381

3,235,015

3,213,478

DEPT.

All

short

tons)——,
tons)-.—.

I
_IH

"April

figure.

195*;.

Ulncludes
«*-•

-st

Monthly Investment Pla*.

Jan.

859,000

ISSUES

ESTATE

AREAS

HOME

-r-

Feb,

barrels

27,837

39,615

41,518

£19,134,000

£10,254,000

$699,830

$664,760

$702,007

3,145,906

of March—

NON-FARM
LOAN

(000's

BANK

omitted):.
—

Mutual

savings

banks

±—

•

147,859

150,944

365,144

130,761

il5,786

274,651

228,138

395,175

———.——

435,439

269,539

■

—

companies

136,438
127,468

companies
trust

and

421,330

405,622

395,683

$2,049,780

Insurance

Individuals

—

Miscellaneous

113.5

113.4

112.8

110.3

foreign

88.0

87.8

92.1

Net

100.8

99.8

102.4

Net

76.6

76.5

72.4

lending

institutions

$2,059,092

$1,957,702

121.4

121.3

120.5

115.8

MARKET
AND

TRANSACTIONS

GUARANTEED

A.—Month

DI¬

SECURITIES

March:

83.4

April 17

1955 basis of

83,300

27,802

;

GREAT, BRITAIN-'

FINANCING

BOARD—Month

ZINC
of

♦Revised

144,641

£58,297,000

3——

Savings and loan associations

100.7

__I"April

All commodities other than farm and foods

Jan.

88,575

40,548

—

MIDLAND BANK LTD.—Month

April 17

CAPITAL

RECT

April 17

Meats

148,993

2,899,182

26,976

short

2,911,551

—:

tons )_•

(in

TREASURY

commodities

products
Processed foods

.is.: h4

100):

Commodity Group—
Farm

135,457

Total
—

2,831,441

;

WHOLESALE PRICES, NEW SERIES

95,505

ounces)-

short

Bank

•

fine

(in

NEW

532,661

94,870

Mar. 31

LABOR— (1947-49

641,542

Mar. 31

Total sales

t^e *

407,810

Mar. 31

sales

ounces)-———_.—

Lead

REAL

sales

Total sales

fine

(in

Copper

370,910

341,200

floor-

sales

"i*» /•'
metals in

377,030

Mar. 31

Total round-lot transactions for account of members—
Total purchases
Other

1,555,890

Mar. 31

purchases

Short

1,191,400

Mar. 31

■

Total sales

Other

Silver

332,690
1,428,140

Mar. 31

Other transactions initiated off
Short

391,450

(in

Zinc

Short sales

Total

1,754,360

the floor—

purchases

Other

318,150

1,868,690

Mar. 31

Total sales

;

272,160

t,827,630 '

Gold

Mar. 31

Other transactions initiated
Total

1,396,590

Mar. 31

sales

January:*-

United States:

which registered—

Short sales

Mine production of recoverable

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks
Total purchases
i,

41.4

INDUSTRIAL PRODUCTION—BOARD OF GOV¬

574,860

14,546,840

40.6
.

Hourly Earnings—

Index

474,190
11,524,160

__Mar. 31

j._

52,558,601 % 51,261,150

———

manufacturing

INTERSTATE

Mar. 31
....

52,661,775

OF'

——,

Mar. 31

;
-

Total sales

DEPT.

goods

Nondurable

EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
FOR ACCOUNT OF MEMBERS
(SHARES):
Total round-lot sales—
Other

SYSTEM— 1947-49=100—Month

SALES

Jan.

goods

320,220

Round-lot purchases by dealers—
Number of shares

38,255,992
$659,163,000

HOURS—WEEKLY'

ESTIMATE -tO,.

Nondurable

■

Mar. 31

TOTAL ROUND-LOT STOCK

All

$57,924,956

sales

customers

43,653,831
$712,806,000

Hours—

1,185,730

11,068

44,751,728
$734,354,000

manufacturing

Durable

1,103,530

by dealers—

shares—Total

Short sales
Other

1,598,596

__Mar. 31

sales

Number of

•

1,239,287

!Mar. 31

other sales

Round-lot
{

consumers—

omitted)—

customers—month

EARNINGS AND

Durable

.Mar. 31

Dollar value

ultimate

(000's

ultimate

Nondurable

sales

ultimate
...

AVERAGE

COMMISSION:

Mar. 31

Customers'

sales

January

LABOR^—Month of March:

Dollar value

Number

purchases)—t

Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales...

from

January

107.07

Mar. 31

short

Month

Weekly Earnings— ; ;

Customers'

Revenue

FACTORY

100

SECURITIES

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT
DEALERS AND
SPECIALISTS ON N.
Y.
STOCK

Odd-lot

ELECTRIC INSTITUTE:

Kilowatt-hour

ASSOCIATION:

(tons)

Production

EDISON

crude runs. §Based on new annual capacity of 128,363,000 tons as
tons.
tNumber of orders not reported since introduction of

125,828,319

sales

$9,799,500

—

purchase
OXIDE

—

——

(BUREAU

$10,690^500

$18,8T8"300

MINES)—Month

February:

Production

Shipments
Stocks

(short

14,359

month

(short

tons)

♦14,297

17,420

tons)

(short tons)-,
end

*14,766

13,662

13,246

.16,307

15,350

12,537

■
.

Number 5528... The Commercial and Financial Chronicle

Volume 183

(2067)

dividend notices
dividend

MEETING NOTICES

NORFOLK

The Singer Manufacturing

Street

Thif

Meeting -of Stockholders of Nor-.Railway Company will he
held, pursuant to the By-laws, at the principal
-office of the
Company in - Roanoke. • Virginia,
•on Thursday, May 10, 1956, at 10 o'clock -A. M.,
to
elect foor
Directors
for a term of three
The Annnai

•folk

AMERICAN CAS
And electric company

Common Stock Dividend

13,

fifty -cents

April 23,

1956

D. H.

stockholders

Common

1956,

ALEXANDER, Secretary.

1956,

andoutstanding in the hands of the public
declared-payable June 11,
1956, toj the-holders of record at-fht
.dose of business "May 10, ,1956" •
'

-W. J. ROSE,

April 25, 1956.

The Board of Directors has authorized the
payment of a dividend of thirty-seven and
one-half cents ($.37 V&Xper share

payable
June 8, 1956, to holders of' Common
Stock of record May 18, 1956, who .on
that date hold regularly issued Common
Stock ($1.00 par) ,of .this
Company,

CORPORATION
NEW YORK, N. Y.

At a meeting held on April .18,
1956,; the Board of Directors, of this

•

corporationdeclared

the ^regular
.quarterly dividend of 254 per share
on

the

June

1956

May 22,
'

Notice ol

;

ing

BARRETT ^NITROGEN»GENERAL

the

purposed, pr-any

To elect

5EMET-S0LVAY

Directors;

■

, ^

•

1956,

*3. Toeoneider and transact any other
business that may properly come

quarterly dividend of $1.06Ji

May 31,1956.

•'

Philadelphia, April 24,1956

Southern

Treasurer

Board

-March 15, 1956;

Directors
as

has

COMPANY

Chemical

New

Thfe Directors of International Harvest¬
er

No.

151

dollar

one

May

York, April 24, 1950.

One

Dollar

2,596,400

sha.es

Company

way

and

out

seventy-five cents ($1.75) per share on
the preferred stock payable-June 1,
1956, to stockholders of record at the
close of business on May 4, 1956.

Dye

dividend

($1.00) per
of Common

THE TEXAS COMPANY
215th

-Stock without par value of Southern Rail¬

Company have declared quarterly

dividend

stockholders of record

the

has

today

surplus

Company for the fiscal
to stockholders

business

record

declared

Consecutive Dividend

profits of the

year

1955, payable

ber 31,

been

net

ended Decem¬

June 15, 1956,
at

the close

A regular
the

May 15, 1956.
J. J. MAHER, Secretary

quarterly dividend of
(9(ty) per share on
Capital Stock of the Company

ninety cents
has

bjeen declared this day,

able

GERARD J. EGER, Secretary-

June

1956,

Richard F. Hansen,

business

Secretary

May 4, 1956.

The dividend will

the record date for

" L

April 24,1956.

the determination of the

common stockholders entitled to notice of and to vote
-at this- annnai meeting or any adjouru-

Continuous Cash
Havo Boon

bividonds

;

because of the stock split, author¬
ized this date.

UTILITIES COMPANY

PACIFIC

Paid Since

FINANCE CORPORATION

Organization in 1920

I
•

The stock transfer books will
main

re¬

open.

S. T. Crossland

L '-'j

Dated: March 15. 1956

be paid on
be issued

not

the additional shares

IOWA SOUTHERN

By order of the Board of Directors
W. E. HAWKINSON,
Vice President and Secretary

pay¬

9, 1956, to stock¬
at the close of

holders of record

fixed

ment thereof.

Company
DIVIDEND NOTICE

S0LVAY PROCESS

the close of business

before the meeting or any adjournment thereof.

The

Allied

Proxy Statement, and

of record

Johns Hopkins, Treasurer

:
J. F. FORSYTH,

HARVESTER

Corporation, payable June 8,

in the respects set forth in the

CHEMICAL

NATIONAL ANILINE

$.75 per share has been de¬
clared on the Common Stock

of the Certificate of

•

Quarterly dividend No. HI of

;

posal, recommended by the Board
of Directors,'to amend Article IV
Incorporation

stockholders

per share on the 4% % Preferred
Stock has been declared payable

international

DIVISIONS

May 31,1956.

thereof:

Board of

MUTUAL CHEMICAL

2. To eonsider and act upon a pro-

(

1956

Railway

House), West Allis, Wisconsin, on
Wednesday, May 2,1956, at 11:00 A.M1.
(Central Standard Time), for the follow¬

quarterly dividend of 50c per
on the Common
Stock, par

value $13.50 per share, has been
declared payable dune 30,

to be held May 1 1956 \

corporation -(hereinafter -called'

;

"Company"), will he held at the gen*
eral offices of the Company. 1115 South
70th Street (Allis-Chalmers Club

record

■

STOCKHOLDERS

the. annual meeting of stockholders of
ALLIS-CHALMERS MANUFACTURING COMPANY; a
Delaware

DIVIDEND NOTICE

July'2, 1966-to stockholders of

business

1956.

payable,

stockholders

(to

the

CHAS. F. BRADLEY, Secretary
Qhe JBroadway, New' York 4, N; Y.,

NOTICE IS HEREBY GIVEN, that

;

■

stock,

common

*^8,

record

MHwowIcm, Wisconsin

ANNUAL MEETING OF

Company

Stock

0. ROSS ENGINEERING

Secretary

Improvement

par

DIVIDEND

ihas- been

notices

The United Gas

Company

capital stock of the Company issued

mon

03DEN. Secretary.

„»

declared

/A„cents ($.50)pershare on the Cpm-

„

of the Board of Directors,

June

I has

Directors

A regular * quarterly-dividend of fifty

of business
'April 12. 1956, will be entitled to vote at such
Stockholders of record at the close

mating.
By order

payable

dividend

quarterly '

•

years.
,

Board

record at the-close of business on May 14,

Western

and

Company

Roancke,
Virginia,
April 4,
1956.
NOTICE OF ANNUAL MEETING
OF STOCKHOLDERS

dividend

United States Lines

COMPANY
10-North-Jefferson

notices

RAILWAY

WESTERN

AND

dividend

Vice President & Treasurer

DIVIDEND NOTICE
dividend

DIVIDEND NOTICE

notices

A
on

The Bo water

Paper

NOTICE

FINAL

1, 1956, to stockholders of
record May 15,

1956, was
declared by the Board of

its

Directors

$1.76 Conv. Preferred Stock ($30 par)
30
.

Corporation Limited

per

cents

per

Common Stock

value), payable June

par

35% cents per share on its
4%% Preferred Stock ($30 par)
cents

regular quarterly divi¬

dend of 50 cents per share
the common stock ($10

The Board of Directors has declared the

following regular quarterly dividends:

April 24,1956

April 18, 1956.

its

($15 par)

all dividends payable June 1, 1956, to
stockholders of record May 15, 1956.

c, Reynolds,

Secretary

EDWARD L SHUTTS,
April 23.-1*56 *,•'
if.

DIVIDEND

Southern
,

The Board
.

of Directors it

meeting held April 19,1956 de-

cided to recommend a final dividend for the year ended 31st
December 1955 of H/i per cent on the ordinary stock equiva¬
lent to 21 cents per £ 1 stock unit. If approved by the stockholders at the annual general meeting to be held on May 29,
1956, the dividend will be paid, less British income tax, on
May 31, 1956 to stockholders of record at the close of busi¬
ness on

R. KNIGHT, Secretary.

The Bowater Organization
United States of America
South Africa

Great Britain

Republic of Ireland

•-

'Canada

DIVIDENDS

THE SOUTHERN

Norway

quarterly dividend of
25 cents per share on the out¬
standing shares of common

clared

payable

holders of
yecord at the close of business
on May 7, 1956.
on

Sweden

COMPANY

(INCORPORATED)

stock of the Company,

Australia

California

Edison Company

The Board of Directors has

The Board of Directors has de¬

May 1, 1956.

London, England.

THE SOUTHERN COMPANY SYSTEM

Serving the Southeast through:
Alabama Power Company

Georcia Power Company

June 6, 1956 to

Gulf Power Company

authorized the payment

of the
following quarterly dividends:
CUMULATIVE PREFERRED

Dividend No. 25

25'/j cents

share.

per

CUMULATIVE PREFERRED

STOCK,

4.24% SERIES
Dividends Nos. 1 and 2

Mississippi Power Company

29.444 cents

per

shore.

(Dividend No. 1 of 2.944p

L. H. Jaeger,
Treasurer and

STOCK,

4.08% SERIES

Southern Services, Inc.

Secretary

was

declared

per

February 14.)

CUMULATIVE PREFERRED STOCK,

4.88% SERIES
Dividend

No. 34

30'/i cents
{

sharo.

per
'
.

The above dividends

RICHFIELD

holders

Directors,

1956, declared

five

cents

per

15, 1956,
ness

meeting held April 19,

regular quarterly dividend of

second quarter

at a

of the calendar

year

stockholders of record

the Common Stock of The American Tobacco Company, pay¬

able in cash

June 1, 1956, to

business May 10,

stockholders of record

at the close of

1956. Checks will be mailed.

April 24,1956.

the close of busi¬

F. Simmonds, Secretary

RICHFIELD

regular dividend of One Dollar ($1.00) per share has been declared

upon

1956, payable June
at

May 15, 1956.
Norman

203rd COMMON DIVIDEND

seventy-

stock of this Corporation for the

Harrv L. Hilyard, Treasurer

Oil
Executive Offices:

Corporation

555 South Flower Street,

los Angeles 17, California

Checks

dividend notice
The Board of

are

pay¬

able May 31, 1956, to stock¬
will

record

May 5.
from

mailed

the Companys office in Los
Angeles, May 31,
p. c.

April 20, 1956

hale,

Treasurer

The Commercial and Financial Chronicle...
43

Thursday, April 26, 1956

(2068)
This

BUSINESS BUZZ

purely

was

maneuver,

Washington..
A

BeWnd-the-Stene Interpretation.

current

other

bill

that

the month

surprises

the

\ has been the remarkable ab¬
over

yelps of pain
action

of political

sence
■

credit

$1.2

now

with

downturn.

j April 12 of tightening credit to
Of course this did not turn
j stem inflation.
;
t
out, and it is possible that the
Despite the fact that few in
lesson has been learned by the
this
capital seem
to quarrel
;
complainers from 1953 events.
with the diagnosis that currently business is booming and the -X The point is that the wailing

not

that

providing

annual

billion

which
Into

form of

precipitate a sharp business

the Federal Reserve

for

subsidy

restraint was going

maybe

something

got

tag the Democrats with

blame

crying "ruin."

has

an¬

Eisen¬

whether

can

extra

Under Mr.
Douglas' leadership the Demo¬
crats began pitching their line
was

WASHINGTON, D. C. —One

passing

blame

and

Eisenhower
and

better

avoid

hower,

is to de¬

Democrats

whether

politics

XUw

The

prob¬

heart-breaking

termine

gl V

both

the beginning.

lem of the

jTM.ll/tM/

Nitiw'i Capital

from the

been

have

pears

sides from

political

the farm bill ap¬

will

from

run

perpetuity, in the

the

"soil

bank"

level

supports

along

that

will be high, however, the Ad-„

ministration brands them to the

contrary.

■

•

■

L there

which are "down," in
manner of speaking. They are

economy
a

political

housing construction.
three

the

way

morals

con¬

the

highsupporters whilst
proclaiming
through the powerful and vast
of communications "with

means

the

not be negated

his

the White House has

masses

its

command, the purity of
motives, the President

own

has copied another of the tech¬

if there is a later howl or

even

going all the

demn

ease.

This fact will

happen

over

comparative

with

prevailing

jautomobile production, farm in¬
come, and to a moderate degree,
These

restrained

been

has

of the

three segments

are

the
current tight money moves, and
the Administration and Federal
Reserve
tight credit policy is

soaring,

credit

for

demand

;

Copies Truman

the most politically sen¬
sitive in the economy. The au-

among

have

workers

tomobile

very

in
Walter
Auto Workers
head,
who usually feels the
country is going to hades in a
basket if motor production is
vocal

spokesman

Reuther, United

hitting the ceiling. Then the
farmers,
who might be still
not

be further

"hurt" if farm loans

become

little

(and

Federal

the

had

banks

Credit

harder

have

many

Intermediate
%

to pay 3

friends that both

the ! Administration

Democratic

are

And

♦

Congress

to' turn

peting

;

the

and

tors, and building trade labor
have committed the Eisenhower
Administration to the idea that

perpetual volume of 1.2 milhousing units per year is
necessary or the United States

lion

goes, over

the brink.

It'would

have been natural to

/ expect the friends of the farmer
:
to yell loudly that this would
raise
agriculture's
costs
still
higher, to expect the laborites in
! the Senate who pominally be-

long

the

from

building

this

claimed

tion is in favor of lower

■

"flexi¬

economic

calmness

far

the

President

was

spell out.)
The

contrasts
sharply with
,1953.
At that time, too, the
Federal Reserve was acting to
slow down the forward pace of
the boom. Beginning on Feb. 1,

and

90%

has

essence

flexible

sup¬

the

economic

situation,
led by
Senator Paul Douglas (D., 111.)
pack

vice

that

Since

versa.

istration

the

greater

the

proposed,

the

Admin¬

and

the

;

mises

weighted av¬

86%,
of

cut

proud

its

and

loudly

the

Administration

the

And

satisfied because, although

accom¬

commodities

the

number

acquired

under loan has zoomed up

put
from

like $2.5 to $3 billion in June, 1954, to nearly $9
billion at present. (And for var¬
ious technical reasons, this $9something

actually is short
actual burden, being a

billion

figure

the

net after

charge-offs.)

that it

Minnesota,

Minnesota, Secretary Benson
consented
to various compro¬
including

unofficial

big boost in
acreage and

promise

had

87%

support for cotton, for the sake

and to

Wisconsin,

That

had some¬
something
was

Revenue

scandals,

cooperation of any
of

Truman-hating

full-dress

situation,
Truman

possible

and which

Mr.

gave

apparent

sense

inferiority which he is trying to
counter

by writing memoirs in

can

of himself,

be with Eisenhower

two

years,

now,

three

year,

years

from

too, if he should stub his

toe.

premise that the
the

election
to

was

veto

way

the

the "Chronicle's"

own

views.]

force

bill.

TRADING MARKETS

Morgan Engineering

Sulphur

National Co.

Riverside Cement

Carl Marks
FOREIGN

SECURITIES

50 BROAD STREET

•

Ho. Inc

SPECIALISTS

Sightmaster Corp.

LEANER & CO.

NEW YORK 4. N. Y.

Investment

TEL:

HANOVER 2-0050

TELETYPE NY

Securities

1-971

10 Post Office Square,

GArfield 1-0225

Boston 9, Mass.

Telephone
"

tiMiVir *y

-•1

Teletype

HUbbard 2-1990

2, Mo.

;

public airing of this

Geo. E. Keith Co.

Member Midwest Stock Exchange

the

Indian Head Mills

SCHERCK, RICHTER COMPANY
Louis

Internal

was

Fashion Park

Bought—Sold—Quoted

St.

fatal mis¬

instance, although a

pretation from the nation's Capita1
and may or may not coincide with

thing over.

Wagner Electric

bL 4b6

ef¬
In

the Democrats kicked the

issue

Bank of America

320 N. 4th St.

not

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

President

the

with

may

They delib¬
erately sought the veto on the

win

politics

can

For

justification

lesser exthe Demo¬

House

occupation

pre -

Democrats which made

the

they

Discontent.

whole

then

White

it,

not

House

number

little

last!!

KefauVer's win

the

Pacific Northwest Pipeline Common

Teletype

sub¬

Delhi-Taylor

Bell

the

victory for its pose
for, "flexibles."

thought

crats

thing.

Compromises-

was

wanted

playing

Republican first aired some of

was

Texas Eastern Transmission

Pan American

take;

Then after Kefauver's win in

-tent

but

the end, it

Kefauver Changed Things

Farm
Benson

good,

appreciable
shell

White

was

express

Treasury or the taxpayer

Meanwhile

the allowable corn

Anheuser Busch

had
the

of their leaders

have any immediate adverse
fects upon Mr. Eisenhower.

blessing of
Mr. Benson, just a little under
their own holy grail of 90%.
with

some

crowing

Republican,

supports

high

maintenance

possibly
magnificent

they

for

substance

President

politics. ;-,

mandatories

achieved

Congress voted for

President

the

Such

the

favor Of

down the farm bill

the word

the

in ■„

vote

down

in vetoing the Gas bill after

that

be accepted;

satisfied

were

and

this

_■

set

were

Advocates

appreciably.

Kefauver

States Treasury.

mises

Olin Oil & Gas

the

them

members of

stantively the bill would do the

Prior

Oil

Minnesota, the Benson compro¬

Colorado Oil & Gas.
White Eagle

was

been

mandatories^

bill.

states, urged the

accept the Demo¬
'The President

In turning

one of
of ;the

advocates

glory of his personal
re-election campaign.
." * »

re¬

plishment in saving the United

have

correspondent by

Until

proclaiming

aside," and not be computed in

supply of commodities on hand,
the lower the support levels, or

Democratic

GOP

the greater

actual and practical

leading

90%

3 points
about which the Administration

of commodities on
hand two years ago, virtually
all
of
them, should be "set

The

average

reaching parity.

turned

the

and::wheat,

87%,

level

than

less

globs

large

cratic

this

91%;

Tobacco;

of supports would be not

erage

However, the Admin¬
istration itself suggested,
that

ports

entire

Something

87%.

opened hearings

operation;

support

on "flexible"
that these should

75%

President

probable effect-of these
and other compromises accepted
at the time by the great Mr.
Benson (and which would have
become law but for later de¬
sulted in

ties, only wheat was dropped in

program

between

"flexi#

Thus, of the "basic" commodi¬

reluctant to

1953, when the Joint Economic

| the

large

very

ate from farm
.

support level "in the high 80's,"..
as it was estimated privately for-,

90%; > corn;
82V2%.
•

was

Were

..J-".:

rice, 86%; peanuts, 90%; cotton,

original Eisenhower-

Benson

inevitably

The

5 the:

ago,

what (at the time)
a
big win in the

Senate for "flexible" supports.

make sfeetji to,

years

rolling

velopments)/, would

of
(

Administration, which naturally

Committee
>

gressional lieutenants responsi¬
ble for trying to get re-elected

support levels were put. in ef¬
fect on 1955 crops, the first year

advertising

than the factual position of the

over

rates

in" the

President, the President's Con¬

your

price support-plan of the
Administration,
the following

It, however, has

■high supports.
'received

foolishness

looked

ble"

non-partisans as one
best-phrased indictments

the

.of

legal

Thus, under the holy

is rated by
of the

two

computations
high.

posi- i

(President Eisenhower's deva¬
stating criticism of the manda¬
tory supports, both in his radio^TV talk and his veto message,

hand

of farm prices.

ble" supports

years

that its

disappear the bulk of surpluses

of the Eisenhower
loudly
pro¬

premise

should

idea,

the

accepted

Aladdin's lamp to

fascinates ;

parity.

discount

found

interest you to know I just
'Monthly Investment Plan'!"

might

there

that

Administration's

1953

current

which

town

supports

highest

'"It

Congress

developments

the

One

run

The

man

members of the House and Sen¬

plaining.

the

House.

While

Bill Politics

Farm

Congress have done much com¬

Contrasts With

membership loyally backed the

ord, just in case monetary con¬
happen to work out
so
well this time.

industry.

friends

latter's

the

Only
i

White

trol doesn't

loud wails

and to have

his

litical benefit of the

party wolf howl of "ruin."
One or two squawks might have
the effect of being for the rec¬
up

patties to com-

both

plain,

once

apiece, but not repeated, just
record, but without winding

Washington

a
•

statement

predecessor,

technique is to step all
own party following in
Congress for the greater po¬

over

for

large

materialmen, contrac-

the

make

T
a

That

gentlemen of the Left

portant

his

Harry Truman. -

expect some of the im¬

would

niques

one

com¬

over

matter of fact,

long-time observers in the re¬
markable acceptance outside of

of the Treasury to them.

block

debentures),

trine-month

for

get

two.

BS 69

Full text of Commercial and Financial Chronicle : April 26, 1956, Vol. 183, No. 5528

FRASER