Full text of Commercial and Financial Chronicle : April 3, 1958, Vol. 187, No. 5730

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U SNf

ESTABLISHED 1839

Volume 187*

Number 5730

New York 7, N.

ir'\

u v

of

Price 50 Cents

Y., Thursday, April 3, 1958

4

I

k

MICHIGAN

a

Copy

EDITORIAL
j?

to

-

As We See It
I

The Kremlin

.

Feai Is Oor Own

the center of world attention

was

during much of last week

as

By BERNARD M. BARUCH*

Dean of the

another of the phases

of the Stalin-like
make

one-man

himself

a

Union unfolded

dictator

itself for the

of

resort to

Soviet

the

real

are

good

significance;,of

them rather
been

a

many

who question the

last week's events,

on

borrowing and

recognition of what has
good while past. It is obvious,
every

liquidating basis; (2) lengthening and amortizing Federal
debt; (3) reducing prices, or obtain a year's voluntary
freeze on wages, prices and profit margins, and curb
excessive credit-usage; and (4) cease piecemeal defense
approach and secure for Congress an expert staff on

dictator in

Ru^a for

period of time. We

are

a very con¬
in no position

[to judge the importance of his choice (self-dic¬
Chairman of the Council of
| Ministers. It may be, as some wag has expressed
||f, that the only change is that the fellow who
had been dictating the letters now also signs them
K-or there may be a meaning in all this that is
tated, of course)

[unknown to

any

event,

upon

tion of finance.
V

conflict

direct

with

the

this occasion that

doctrine

this

defini¬

narrow

or

sense.

common

But

if

used to

j regime not.

overthrow

the

The

long ago would perhaps be
^anomalous anywhere but in a Co vmunist dicta| torship operated as is the Kremlin, but in a dis¬
very

In

issued!

in

name

well

as

as

in

meet and

Continued

thing
folly.

we

we

have

to

billion

over

must

the
not

M.

Barucb

national output.

at

current

only one aspect of the basic
before us.
The challenge
face is to organize and employ

we

fact—has

ernment
Carrol

resources

Continued

on

26

page

27

page

Washington,

D.

C.,

April

1,

address

♦An

♦Statement made by Mr. Baruch before Senate Finance Committee,
on

dealers

tial

afforded

are

a

undertakings in

complete picture of issues
our

five

by

now

rates, the

12% \

Federal Gov-|

spends as much as in the
1933-37.
Government

Club of Chicago,

1958.

corporate

registered with the SEC and poten-

State, Municipal

"Securities in Registration" Section, starting on page 38.

in

State and

Municipal

STATE

AND

m

MUNICIPAL

v

COPIES OF OUR

•

BONDS

IIAnover 2-3700
the

MEN!
DEPARTMENT

view

burnham

CORN EXCHANGE

BOND

ON

THE FIRST NATIONAL CITY BANK
/A.

s/

15 BROAD STREET,
CABLE:

NEW YORK 5, N.Y.

•

Dl 4-1400

120
Bond Dept.

Teletype: NY 1-708

34

TELETYPE NY I-22S2

Net

•

Members

AMERICAN STOCK EXCHANGES

COBURNHAM

Distributor

To

Active

Dealers,

Markets

Banks

established

Investment

offices

York

from

coast

5

Chase Manhattan
BANK

to coast

offer
the

Canadian Exchanges

DEPARTMENT

California

Rights
We

Commission Orders Executed On All

Teletype NY 1-2270

for

OF CANADA

to

buy

which expire on

CANADIAN

Exchange

THE ROYAL BANK

Brokers

SECURITIES

Stock Exchange

Stock

Maintained

and

CANADIAN

New York Stock Exchange
American

New

1832

Members

THE

BROADWAY, NEW YORK

Dealer

T. L.Watson &. Co.

REQUEST

Harris. Upham &

OF NEW YORK

Burnham and Company
MEMBERS NEW YORK ANO

BOND DEPARTMENT

ARE NOW AVAILABLE

LETTER

MONTHLY

,

30 BROAD ST

Underwriter

Bonds and Notes

"ATOMIC ENERGY
REVIEW"

CHEMICAL
BANK

Public Housing Agency

lS>v

Securities
telephone:

and

A

U. S. Government,

Direct

current

Private

these rights
June 10, at
market.
Wires

Municipals

to

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

Municipal Bond
Department

ft:

25 BROAD

STREET

NEW YORK 4, N. Y.

COMPANY

FIRST

DALLAS




'I'tMCi'.'lH'

bridgeport

•

•'

?

perth amboy

DIRECT

WIRES TO

MONTREAL AND TORONTO

Dokihiox Securities

Goodbody & Co.

Grporatio?i

MEMBERS NEW YORK STOCK EXCHANGE

15 BROADWAY
NEW YORK

1 NORTH LA SALLE ST

CHICAPO

40

Exchange Place, New York 5, N. Y.

Teletype NY 1-702-3

WHitehall 4-8161

,

single year

years

Mr. Shanks before Executive's

Chicago, March 21,

1958.

SECURITIES NOW IN REGISTRATION- -Underwriters, dealers and investors in
securities

Shaaha

a

the growth of

our

to provide our

M.

In

spending today, after allowing for
the economy, is more than twice as im¬
portant a force in the economy as it was during the
depression years.
First, today, it is impossible for
Continued on page 36

effectively, first, for
country and our liberties, and second,
citizens with a rising standard of living
our

the defense of

account for almost

of

forget

that it is
Bernard

and

pres¬

problem

challenge to the West—a promise to
defeat the West on its own ground. The

a,

own

concern

recession

ent

patch out of Moscow this aspect of the matter
need not detain us long. However such things as
this may be, it is quite evident that the ruler of
Russia^how

principal
our

our

any

-

far more difficult situation.

fear is

At
see

spending as the
and all economic
problems.
'.
[
Although it is difficult to imagine
today, total purchases by the Fed¬
eral Government in the year 1929
amounted to only $1.3 billion, or
slightly more than 1% of our na¬
tional output.
At present, Federal
purchases are running over $50
to

answer

through ~ get - well - quick
prescriptions, we will surely face a

same

the economy.
those who

are

government

more

recovery

Malenkov

to stabilize

the other extreme

'

gentleman

t

Some believe that government

grams

seek

we

counter¬

should not try to use spending and taxing pro¬

policy, debt management, monetary
controls affect not only our sol¬
vency and economic health, but our
security against aggression.
Despite the symptoms of distress
in our economic system, there is no
cause lor panic if we use experience
and

•

timed,

Wljat should government do in dealing with the cur¬
cannot

Tax

.

talism with a high level of work and a higher
yjjtandard of living." The fact that the "higher
T^vel of living part" of this promise seems to be
Sii

any

properly

on

rent business situation?

IjMr. Khrushchev again promised to "conquer capi¬

'

•I

extend far beyond

•

in

was,

sound,

unstabilizing reduction in Federal spending in the three
postwar recessions.

defense matters.
Our problems

us.

j.

as

,

problems of 1958 stepped-up government
short-term projects and substantial acrossthe-board income tax cut. With regard to problems of
next five years after 1958, Mr. Shanks recommends meeting inevitably increasing government spending which will
take a larger share of expanding output, by courageously
paying for these expenditures through increased taxation
rather
than
devious
route
of inflation.
Deplores
spending

peril, inflation, Mr. Baruch suggests: (1) public works
programs desired be done at the local level on a self-

going on for a
that Mr. Khrushchev has been in

sense a one-man

It

so

favoring

immediate

Instead of relying so
little on taxes and repeating

past mistakes causing, what is said to be our greatest

but formal

as

Staunchly

cyclical fiscal policy, Prudential President prescribes for

unemployment.

listing

of course,

siderable

much

or

simultaneously achieve economic growth with¬

out inflation and

West. There

President, The Prudential Insurance Company of America

practical school of finance and economic

deficit financing—if we are to meet our defense

needs and

edification of the

Economy?

By CARROL M. SHANKS*

statesmanship asserts it would be folly to cut taxes

procedure of Mr. Khrushchev to

ize the

Folly

tUuitk of Am en r it
300 -MONTGOMERY

STREET

SAN FRANCISCO 20.

CALIFORNIA

BUS.

ADM,

LIBRARY

2

The Commercial and Financial Chronicle

(1490)

it's

When

a different group of experts
field from all sections of the country,
participate and give their reasons for favoring a particular security.

broad

a

range

in

markets

active

a

(The articles contained in this fornm

hurry,

are

you'll find our large and ex¬

ihey to be regarded,

as an

offer

MAURICE

S. BENJAMIN

to get the best possible
coverage of the markets you
you

-V

want.

Benjamin, Hill & Co.,
v-New York City

private wire

system, combined with com¬

Members New York Stock Exchange

Corp.

Is it not phenomenal for a busi¬

survive

to

for

This

indicate

would

Stock

New York 5

120 Broadway,

Teletype NY 1-40

WOrth 4-2300
EOSTON

PHILADELPHIA
Private

era

WireSj to Principal Cities

when

young

nomic

■

■
■

3.50

3.67

1957,

1954

2.62

Members Nero

York, Stock

York

Exchange
Exchange

Stock
Stock

BROADWAY, NEW YORK 5

120

in

1956

to

change

a

million

$81.6

wires

to

of

5%,

JAPANESE

STOCKS

total between

3.87

for

3.61

of; increase may double from

to around 10%.

1

1950
M. S. Benjamin

of

ui '
have been paid
consecutively. Current
cheated rate is $2
annually.
n-

-j

i

Dividends

years

depressions.

Call

The

financial

1
to

Book value

r+
to

oa

24

the

full

continued,

$88

year.

will-

and .90 million
~

low;

The

Los

This strong

area

o

United

products,

States.

more

Jh as-

70%

Its

output

in

of

which

The

principal

and

various

insulation

Trading Interest In

contain

items are roofing
building materials,
Industrial

materials.

volume.

of

Bassett Furniture Industries

Life Insurance Co. of Va.
Commonwealth Natural Gas

trols

STRADER and COMPANY, Inc.
LYNCHBURG, VA.

all

company

major

raw

con¬

tivities
the

are

carried

United

Canada,

and

at 19 plants

on

States, 2 plants in
1 small plant in

Belgium.

Bateman, Eichler & Co.

has

substantial

a

,

.

most certain

Wire

to

New

York

City

IN JAPAN
for

Monthly Stock
Digest, and our other reports
that give you a pretty clear
picture of the Japanese
our

economy as a

are

few

whole.

Nomura Securities Co., Ltd.
61 Broadway, New York 6, N. Y.
Telephone: BOwling Green 9-0187
is

orders

not

an

offer

or

world

devoted

to

building materials near Manville,
N. J. Expansion of product lines,
product improvement, cost reduc¬

solicitation lor

for any particular

securities*"

LAMBORN & CO., Inc.
WALL

;

STREET

NEW YORK 5, N. Y.

Yamaichi Securities Co., Ltd.

Tokyo, Japan
Brokers

111

Investment. Bankers

&

Broadway, N. Y. 6 COrtlandt 7-5680

SUGAR

Burns Bros. & Denton
inc.

Refined

»—

37 Wall

Street, New York 5, N.

of

83%

for

the

country's

Gross

National Product.

has

devised

a

triple-edged,

company-wide pro¬
gram to build sales, reduce costs
and accelerate product improve¬
ment.

The

officers state that the

results will be substantial, and the
effects noted soon. Therefore the

v

Underwriters—Distributors
Dealers

r

Exports—Imports—Future*

DIgby 4-2727




^

perspective,

which operate

were

onlyrelatively
large markets;
are

as

fierce
from

small,

cl i

u

Canadian and Domestic

bit

Angeles

as

costly

stores

had

as

of

several

a

me-

.v:."

a

1957

massachusetts

securities

This

area;

been

18%—and

if for
the

closed

•'Trading Markets
•

Retail

Distribution

some

chain's
for

the

KELLER BROTHERS

entire period. Toward the end of
last
year,
the managements of
Richard N. Ely

and
large stores. A

■

struggle reduced

reason

m,

'

competi¬

the ratio
1.88% in '55 to 1.55%: in '56

every

array

of

and

extreme

variation of almost

—a

dis-

1956

for

of

years

tion in the Los

the

zations with

Investment Securities

go back to 1955 to obtain a proper

various

chains

*4AAUs4 CO., INC.

clearly that
price-cutting, give-aways, and ex-

ZERO COURT STREET, BOS I ON 9,

Teletype

saw

MASS-

Telephone Richmond 2-2530
BS-630

gone too fai. Since that time,

favored.

Its 41

stores

are

all

permarkets, of which the average
is
doing about $2.2 million 'in
annual sales, and the entire chain

sufficientimprovement

-

.+5

su-

was

laftenmof? °f th+e
5 ?ng"re Pr, e f.ub *2

+

to ,1.60%,whereas lm the

>5sf/!;re

f

?

mi

v

^

15,-5^ ns
.f,,
°fflclal. *^uyes are available,
na-:but *h?.vef ™ evidence to support
J!16 5 5 !ia malgmJ; have con-

is located in the Los Angeles area
—fastest growing and most suit-

i

able metropolitan area in the
tion for the expansion of a food
chain

tmued to improve. The lmportance of this trend cannot be overBasket
combines
j^g had, in the
past 12 years,
with such unique effectiveness the,
ratios 0f net profit to sales
as
Johns-Manville's main strength characteristics of
relatively small high as 3>92%
2.14%, 2.12%, and
lies in its dominant position in the
risk, sharply improved prospects 1.94%,
asbestos industry and in its wide for the immediate
future, and en'
diversification
of
product lines. during potential for appreciation
+
% • 5/
Despite currently reduced earn¬ over the long pull, that it is "The
ings due to heavy expansion and Security I Like Best." Statistical
fantVfhat
new facilities costs magnified
by
the present labor cost spiral, the
the
of only two new marcompany may be considered well tively priced.
Current quotations
A,

ra5ge' emphasized since Market

.

,

.

perhaps most
i",^arAe*

tion

in

anv

"ddhion

contraction.

of

temporary

The

reached bottom around

building
May 1957;

million

the

residential

earnings

annual

rate

of

building for the fourth ^quarter of
1958 is expected to be 6 tp 8%
above the fourth quarter of 1957.
In view of the large replace-

nounced

sales

and

$1.59

per

share

of 1957 than to current

and

prospective figures for 1958.
"Something has been going on"
at Market Basket that you should

know about.

^"8°f t

^
Pini-5® in
VL

Over-the-Counter

Quotation Services
for 44 Years

rapk/expan^on^uhnTnate'd'in

fefatld \r~:entraan: ^
all-time high
of $81.6
®

correc¬

residential

saving*

'

t 1 £ Pr5sent price
Market Basket common
■*/r

,

fortified to weather

Liquid

Y.\

tAhe Pr,^s.ure+ h?s been subsiding,

business
—

;

j

In the case of the ratio of net
profit, to sales, it is necessary to

equ«fesiS°show 'tha^U

Raw

Inc.

of

achieved.,

tion measures and replacement of second highly significant
distinct;
,existing facilities
are
all
con¬ tion among food chains lies in the
tributing to future potential. In nature of the area in which they
the past 10 years Johns-Manville operate.
In these two respects, A
sales gained 130% against a gain Market
Basket
is
particularly

present outlook does not jeopard¬
ize the 500 quarterly dividend.

99

"

B

.

chains

diverse

the

Johns-Manville

This

--•

-

tingu i s he d
from organi¬

in

York,

,

those

elite

chains"

y

£es?ive advertising and promotion

Opportunities Unlimited,
Write

.

In
this field, the

ties

Private

.

,

,

of new
product development and main¬
tains the largest research facili¬
program

in such an area it must be large
enough to anticipate the full po-

tential growth of the new community, a process that may take
Market Basket (Common Stock) '
years.v A ;chain like Market Basket, with new locations in many
Stocks of the 1 e a d l n g
food- fast-growing suburbs, can anticichains are enjoying a resurgence
pa^e much greater ultimate sales
of popularity because-they com-;
vojume from existing stores than
bine essential stability withal«that
which
is
currently being

these

;

Los Angeles, Calif.

"supermarket

company

continuous

and

•;
y

mate-" growth.

Asbestos, Quebec and Matheson,
Ontario, while manufacturing ac¬

The

TWX LY 77

The

its

of

rials sources, except asphalt. Main
asbestos V mines
are
located
at

in

—5-2527—

another.

sales amount to an estimated 50%

American Furniture

LD 39

or

products, Transite pipe,

friction

and

form

one

{

aj?out 2-to-l. comniunities

Director of Research

.

asbestos

-

"

of Dec.

as

i

than 400 lines of

,

hQuid assets

u

be

New

Affiliate

been unique in that entire new
have popped up like
31, Y957; was^ mushrooms, v one
after.,*, another,
$30
On this record of a hundred about
per
common
sharey
presenting sudden mew opportuniexpenditures
willt total ties for
years
alone, the stock of this Capital
the; location of supermarcompany
would
be
worthy of around $20,000,000 this year com- yets. With 'mahy alert: real estate
being placed in the category of pared with $46,000,000 iml957.
operators in the area, quick action
"My Favorite Stock."
**a"ge [
5-58): 58sometimes long in advance of
34 %. Current market (NYSE
Johns-Manville is the largest
);36-}«. I act ual development — is vital.
Then when a supermarket is built
manufacturer of asbestos products
RICHARD N. ELY '
liabilities

of

Thus, the rate

Angeles

write

Securities Company

surge is springing from the large
number :of relatively new stores
in the chain, as will be shown be-

m-

shows

situation'

which, if

rate

-

or

Yamaichi

up-

1951

a

information

current

5%

$
■

to

For

whereas

3.10

large and important field.

the

branch offices

our

f

in

3.57

after a hundred years,
the company is the leader in its

in

N. Y.

Mobile, Ala.
Direct

Sales increased from $77.7 mil¬

>

lion

1953

the

consists of

TEL. REctor 2-7815

Exchange

NY 1-1557 v

New Orleans, La. - Birmingham, Ala.

-

American

"■

Exchange T

American Stock

HAnover 2-0700

thus far in 1958 sales have been at

...

1952

da ution

economic

$2.48

1955

Today

New

y

.

'■'1

Steiner, Rouse & Co)
Members

1957

Civil War,
two World Wars and intermittent

Members

v

1

"19 Rector St., New York 6,

1956

the

mean

devastation

MCpONNELL&fO.

'

1

products

.

our

Since 1917

and

its

for

resulting from an estW
mated 40% per annum increase in
family formations over the coming

calculated
p r e

RIGHTS & SCRIP

'

maintenance Market Basket (Common; Stock)
and the™1 —Richard N. Ely, Director of
company's aggressive product re¬
Research, Bateman, Eichler &
Co., Los Angeles, Calif, (Page
search, and in the expectation of
a
; 2.)
: •
y v.
'
resurgent residential building

strides.

necessary
withstand

Specialists in

repair

market

would

It

BAN FRANCISCO

•

competi¬

country was
making its
giant
eco¬

CHICAGO

•

Benjamin, Senior Partner, BenV jamin, Hill & Co., New York
City.- (Page 2.)V

sell the securities discussed.)

to

Louisiana Securities

Johns-Manville Corp.-—Maurice S.

nor

..

the fierce and

this

Exchange

in

success

tive

Associate Member
American

for

free

1920

be,

to

Three
all - important
factors
decade, Johns-Manville appears a which affect earnings and divipromising holding for the longer dends are in the process of favoradroit
term.
The yield
at the current able
change.
The
year-to-year
price of 36% on the indicated $2- rate of increase in sales is acceldividend is an adequate 5.4%.
derating, profit margins are in an
Capitalization consists of $3,- upward trend, and the rate at
250,000 debt and 7,163,005 shares which new stores will be added
of common stock,
-y '
is temporarily levelling off. Each
Earnings for recent years were of these points deserves individual attention.
reported as follows:

hundred

a

agressiveness

Established

Alabama

Their Selections

movement

years—and prosper?

Corporation

Week's

Participants and

.

Johns-Manville

ness

New York Hanseatic

intended

not

are

ment,

Senior Partner,

plete OTC facilities, enables

Thursday, April 3, 1958

.

Bought—Sold—Quoted

perienced trading department
can be a big help.
Our nationwide

.

fin the investment and advisory

to you
of

important

reach

This
Forum

A continuous forum in which, each week,

Try "HANSEATIC"
to

Security I Like W

The

Brokers, Dealers only

For Banks,

.

5

"nf

S &
h*b5at Company crows^so fasT
a
hSpfn

National Quotation Bureai
Incorporated

nf

*555^ a?X: J

entlrelj fl0m w.lthln2 11
Continued

5

•

'

ls obvlous
page 35

on

Established 1913

46 Front Street
CHICAGO

New
SAN

York4,N.Y.
PRANCISOO

Volume

187

Number 5730

.

.

The Commercial and Financial
Chronicle

.

(1491)

INDEX
Articles and News

And Securities Maikets
By

EDWARD

P.

RUBIN*

]

J

Page

The Principal
Thing to Fear Is Our Own Folly
—Bernard M. Baruch—

-Cover

Partner, Security Supervisors, Investment Counsellors

President, Selected American

ALL AT SEA

Can

Shares, Inc.

"

Government Spending Stabilize the
Economy?
—Carrol M. Shanks
i

•

.-Cover

__

Mr. Rubin's assessment of Hie
economy

that

primary factors at work in the
and in the securities market leads him to conclude

<Outlook for Business and the
Securities Markets
—Edward P. Rubin—,

probably have already witnessed the sharpest part of

we

Recession-Depression: How Severe
—A. Wilfred May.—

however, that there

be

ment

great should the market express

about recovery-pace.

Expresses optimism

The

"v

We Cannot Affort Not to
Have

'

•

doubt

some

La

here to the belief that is the next

big ad th e
United states

hesitation point for the DJI.
.

Com¬

t

r u s

the

needs

Automobile

rapidly,
point.

rentlyrunning
to

Consumer

for

effect

as

durable

\

output is declining *•:
prominent case in

Edward

p.

Ruoin
!

bially imper¬
fect,

but it seems
difficult each time

to
we

may

will

make

the

attemnt

examine

the

favorable

factors

short

rated

term

with

and

outlook

been

order

more

Hopeful Signs

in

as an

the

important

being liquidated rapidly.

Coming Events in the Investment Field—

some

will

of
not

evidence

the

rest

that

For

'

as

far back

as

Bankers

plUS

Currency)

to

the

Association

Continued

Of America, Chicago, III., March 19, 1958.

Wilfred May—.—

Our

Governments.—-

Reporter

Our Reporter's Report

on

Public Utility

page

For many years we

D D T C T D D

have specialized in

llYLrLKHtU O IU0A0

Til

CTflPKC

Spencer Trask & Co.

J

-

22

24

Prospective Security Offerings

42

The

2

Federal Uranium

The State of Trade and Industry

The

Twice

Reg
B.

O

8

Weekly

Publishers

25.

second-class matter Febru¬

as

1942,

at

HAuover
.

■

Albany

24300

'




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...

'

Boston

Nashville

-

-

the

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

New York 7, N. Y.

WILLIAM DANA SEIBERT, President

ST., NEW YORK 4, N. Y.

Alaska Oil & Mineral

Company
Reentered
ary

Patent Office

to

48

Copyright 1958 by William B. Dana

CHRONICLE

REctor 2-9570

,

;

—

DANA COMPANY.

5

*

COMMERCIAL and

FINANCIAL

Westwater Corp,

16

The Security I Like Best—

Washington and You

Quinta Corp,

22

Market... and You—By Wallace Streete

Other

TELEPHONE

Sabre-Pinon

30

Other

25 BROAD

44

—

-—

HERBERT B. SEIBERT, Editor & Publisher

Members New York Stock Exchange

r

Securities Salesman's Corner**,

,

-

Dallas

38

25 Park Place,

••

to

Los Angeles 1

37

Securities Now in Registration*

WILLIAM

-

Philadelphia
Chicago

4

——

———

Securities.

Railroad Securities

Published

-

on

Exchange PL, N.Y.

Direct Wires

23

Observations—A.

Mackie, inc.

Teletype NY 1-1825 & 1-4844

1940.

a

(depOSltS

Croup Conference

&

HA 2-9000 40

46

News About Banks and Bankers
,

world

^feCt Of deducing HlOney Supply

Mr. Rubin befwe 22nd

Investment

45

econ-

the

of

long period of time it was
possible to pass on these wage rate
Average, at 521.05—a peak which increases in finished goods prices,
was
approximately "triplicated" but this is no longer easily the
in August, 1956 and July, 1957— case.
to the close on Oct. 22, 1957, at
Commendable attempts to fight
419.79, this leading average de- inflation in recent years had the

the

12

Indications of Current Business Activity——

Singer, Bean

support

since at least

the

April 6, 1956, close
of the Dow-Jones Industrial Stock

•f

7

Mutual Funds

the American
economy as vigorously in this re-

cepted definitions of trend.

States

8

Einzig: "Washington Turns Down Britain's Loan Request"

'

Bought—Sold—Quoted

8

From Washington Ahead of the
News—Carlisle Bargeron

historically high In cession as proved the case in 1954..
price, and appear to be in a "bear"
Wage rates have been rising
market, judged by commonly ac- more rapidly than productivity

address by

29

48

-

Dealer-Broker Investment Recommendations

commodities,

many

are

Annual 'Central

Cover

wide expansion of productive fa-

to date is still above the 1954 low
of 123, and the 1949 low of 94. -j

f

OIL

(Editorial)

Exports

have

From

^.Regular Features

.

—

Commerce states that "The world-

1954, although the lowest month omies

•

,>V

Business Man's Bookshelf

were boosted to an artificial new

declines

1953-

21

Bank and Insurance Stocks

backlog of manufacturers
declining for many

for

Teletype: SU 155

unfilled

ready exceeds in degree the 10%
and

Exchange PI., Salt Lake City

BOLSA CHICA
/

been

cilities

1160

14

Commissions

;

As We See It
and

orders

HEnderson 4-8504

on

NYSE Members Voting on Higher

particularly ra w materials and
some foodstuffs,
has outstripped
the rise in demand."- Thus, we

of. 1948-1949

Exchange PI., Jersey City

out¬

operating

downtrend

a

39
9

the Business Horizon Cited
by
Purchasing Agents

Inventories, after reaching new all-time highs, are now

Reserve Index of Industrial Proauction has been from 147 to 130,
thus far.
This 12%
decline al-

Stocks

1

DA vis 8-8786

months.

tended to accelerate. The drop in
the seasonally adjusted Federal

.

21

—

typical

since

.

—

Button, California State Treasurer, Discusses
Impending Financing

all-time high last year during and
subsequent to the Suez crisis, but
December, 1956, and since these exports are now in a deAugust, 1957, this downtrend has dining trend. The Department of
has

Members Salt Lake'City Stock Exch,
Spokane Stock Exchange
■,

A. Roland

g
New

over

factors of unfavorable nature with
respect to, and affecting, the near
term, outlook.
Industrial production

J.F.ReiI!y&Co.,Inc.

Committees Can Save Taxpayers*
Money

...

c

respect

Uttfavorable Factors
the

School

Teletype: JCY

capacity

have

hre

♦
16

*__**—__<**

DIgby 4-4970

of 140.7 million
tons annually. Competition is in¬
tensifying. Profit margins are de-

the next six to twelve months.

Here

-

currently at only 53% of its newly

to

probable future with
degree of accuracy. First we

the

Industrialized Latin-America and
Inter-American Trade
—H. W. Balgooyen__

__

and, the steel industry,
standing
example, is

the

unfavorable
to

GETCHELL MINING
Rogers-..,

■

is operating at perhaps
75 to 80% of theoretical
capacity,

we who run business and adVise
clients
about
their
invest-

some

—

—Roger W. BabsWl——

industry

try it.

forecasting

as

The

more

;

15

pacity is temporarily excessive in
almost all industries.

get

be,

must

HA1LE MINES
14

How

from last year's figure of $37 billion to $32 billion this year. Ca-

foresee

WESTWATER CORP.:
13

*_***„

Prospects for Coal in the Coming
Years—Myles E. Robinson— 17

and

only is foreSight .prover¬

merit*

w

-

a

Not

But difficult

QU1NTA CORP.

'

12

This Will Be Our Greatest
Year—Donald I.

-

post-war period and are now
estimated by the SEC to decline

it.

____

the

'hindsight." I~
doubt

Trade Agreements Program

;

equipment expendi¬
have been high throughout

tures

11

:

Plant

that "every¬
one has 20/20

—

.*~_**w.**_***

__

goods have largely been satisfied.

pany of New
York is cur-'

URANIUM
!*__*

Limiting Deficit Financing to Essential
Emergency Needs
—Sen. Harry F. Byrd

.

4-6551

SABRE-PINON

16

Clearing for the Railroad Industry

—William J. Quinn

£ Street -today.» is the
Club,"; whose members ad¬

"380

curacy t>f that

;

The Weather Is

Salle

about the uc-. :

T

a

Now—Harry A. Bullis„_

<&.

Telephone: WHitehall

Savings and Loan

Appliance Industry—Chris J.
Witting

-

*

on

Associations—Raymond Rodgers

-

Appraising the present and fore- clined 19%. There are many who
casting the future are difficult expect Ih at low to be broken as
tasks, no ;matter how much expe- earningsdecline and dividends
rience we've had in
doing them. are cut. In fact, one of the most
There's e v e n
populous clubs on Wall Street and

WALL STREET, NEW YORK

6

Impact of Monetary Policy
Change

prospects,
"

r.

4

5

loitg4erm

upon

Long?

_*—*

Many Greyhounds—Ira U.
Cobleigh—_

disappoint¬

set

for 99 Wall!

compass

3

Recovery and Role of Bankers—Lee P. Miller——

develop into long-term capital gains, and permit refunding at
lower interest rates. Turning to stocks, author does not believe
are

your

99

a

price risks

and How

_

significant time Jag before recovery may take place
which, in turn, should keep bonds a favorite investment that
much'longer, allow plenty of time to let bond purchases
j

'

—

the decline and that the bottom
may be reached before many
more months have
passed. He cautions,
may

v

—about obsoletes? Then

funds.

PHILADELPHIA

SALT LAKE CITY

3

The Commercial and Financial Chronicle
4

.

Thursday, April 3, 1958

.

.

(1492)

for

cannot be created by merely forc¬

stock market's comparative recent

baiting the Republicans and clob¬
bering them in November.
The
Republican rank-and-file, on the
other hand, in lieu of endorsing

ing deficits.

Public works, on the
technique actually tend to
supplant expansion of private ac¬

strength.

WPA

popular

Sputnik

now-outdated

Recession-Depression: How
Severe and How Long ?
By A. WILFRED MAY*

,

realistic attitude toward hasty and
strained

of the
country's healthy long-term growth must await the aging of the
great plethora of recently produced durables, plus the digestion
of inventories, plus the resumption of buyers' optimism. Offers
Recession lessons to youth, including advice to pursue training

...

in

particular entry into the
indoor sport of Recession discus¬
sion,. I propose to cover: first, a
stock

taking

the

on

of

-

extent

the

set-

Thus it is apparent
rent Recession could

causes

of

trouble;
third,an
analysis of the
suggested
remedies, and

nificance

Just

or

mm

A. Wilfred May

to

'

"slump," "recession,"

by the naughty word "depres¬
can be no doubt about

having slid off the 1954-1957
boom heights.
The Federal Re¬
serve
Board Index of industrial

our

production, which reports changes
in the total output of our factories
and mines, has since last June,
fallen from 144 to about 130. More

disturbing, at least to the public
large (and the politicians) is
the course of employment.
The
at

of

force

labor

the

risen to
almost 7%. Order backlogs have
been steadily declining.
The new
orders booked by our
factories
which is unemployed has

have been

lower

than sales ever

January, 1957, which has
importantly contributed to a seri¬
ously swollen inventory situation.
The gross national product stands

since

at

about

3Y2%

that it is

how

did

than

largely centered

we

get

into

a

below

the

1957

our

persent status.

The simple

fact is that the country was on

University,.

Teaneck,
April 1, 1958.

Active

in

this

Nineteen

the

in

area

a

advocated by Senator

Douglas, to

across-the-board

reduction

the

and

ever

overaccumulation

of

economy.

but

(Feb. 10, 1958).

Under

our

democratic processes,

Our

pointing to the "economic

politicking"

that

is

going

on

should not carry any inference of

the

doubt

of

such

motives

devices

prompting

inven¬

economists

include

and

businessmen

capacity was being
among others acting wholly free
built via high and rising cost of
of political partisanship. But even
construction and equipment, con¬
where Washington does not pro¬
tributing to a major squeeze of
pose, its manner of dis-posing is
costs on profits—all resulting in
important.
reduced
liquidity of businesses,
Spending, and ever more spend¬
large and small. All through 1955,
ing in some form leads the field
1956 and the greater part of 1957
of palliatives.
The impact from
consumers
were
spending and
Federal spending on goods and
corporations expanding on a rec¬
services is dulled by the delay inord scale—with the balloon get¬
the actual expenditures on pur¬
ting additional oxygen from enor¬
chases which, rather than budget¬
mous
government
expenditures
ary allotments, are the crux. This
and
"administered"
wage-price
delayed action includes the De¬
rises.
Shall we wonder that this
fense sector, where step-up in or¬
could not go on indefinitely—at
dering has been lagging, and will
least without some pause?
necessarily continue to do so. And
should we not question the actual
Befuddlement Via Politics

propriety of
Defense
needs

vitally important
-establishment to the
our

Trading Markets

in¬

expenditures are slow,"
flexible and unconcentrated.

way
A

big

based

public

on

overlooks

already blessed with

to those

income; there is no assurance that
the recipients, particularly those
who
are
already
in
an
overconsumed status, will rush out to

"bonus," particularly
with a terminal

this

spend

if it is wrapped up

is

And if there

date.

no

terminal

date, the effect of (he deficiteering
the

cn

Governmejp's finances will

be murderous
bonus

—/even

a

year

one

being bad enough.
during boom periods,

^

abated; now with the premise that
increase of money and credit will
stimulate recovery.
But, as with
the tax-cut other

psychological influences, such
have enumerated, precludes
of a terminal date,
The chief factor causing a lag in
we

r

is the centering of
previous V boom in
durable
goods—producer and consumers—
where renewed expenditures are
the

recovery

the

postponable.
The com¬
newness in the nation's
such durables, ranging
plant to homes to autos,

readily

parative

of

stock
from

makes

delay likely, and healthy.

lasting pickup, renewing the
long - term growth in our econ¬
A

must

omy,

await

the

aging

of

dividuals

are

would

bonus

afore-mentioned

fac¬
concerned in¬

the lesson to you, the
people
of
the
nation,
from our present economic expe¬
rience?
First, you have learned
What

is

young

that

boom

and

growth

the

overlooked.

tax

A

in

put money

around

unavoidable

in

a

free

The

squeeze brings home
for technical edu¬
training, as the ingre¬
permanent .security.

present

to you the need
cation and
dients

of

Moreover, you now realize, along
with the rest of the business popu¬

lation, the need for ever greater
more efficient merchandising

and

efforts!

works

construction

making

the,

the

fact

that

the

automatic

the

of

To Head Research
Richard B. Fant has joined E. F.
Hutton &

Company, 61 Broadway,
City, members of the

New

York

New

York

Stock

Exchange, as a
general part¬
ner in charge
of the

of

use

department,
it
.

well

as

rather

hoard

-

un¬

centered
automo¬
biles and appliances. Lasting jobs
employment is largely
in hard-goods areas as

By

of

way

b

y

senior partner.
Mr. Fant was

As¬

formerly
sistant

'Vice-

President
the

Trust

of

the

where

he

super vised

portfolio

Co.

of

Savings

Banks
Richard B. Fant

the

Institutional In¬

vestors Mutual Fund since its in¬

in 1953. Institutional In¬
which now has an asset
approximately $34,000,000, is the common stock fund of
the New York savings banks.
Having spent almost 30 years in

to

ception

to

in

vestors,

engage

value

preliminary

dis¬

cussion of the slump's

the

offer via

of

and

a

duration, we
negative note, a chal¬

lenge to the popular

optimistic

attribution of

implications

to

the

A Continuing Interest in

Phila. Transp. Co.

an-

ten, managing

consumers

as

than

-hoped-for spending spree.

the

was

nouneed

Ruleff E. Cut-

more

In any event,
as the recent survey of consumer
attitudes show, the public's pro¬
clivity to spend cannot be as¬
sumed to be correlated with their
amount
of
wherewithal in the
form of savings, to pay for it.
As Secretary of
the Treasury
Anderson has pointed out, drastic
remedies with the attending
clamor may actually cause indus¬

invest¬

ment research

credit by producers.

trialists

''

New Hutfon Partner

slowdown,

How Long?

program
activities

V

"

preceding "indigestion" which I
have just itemized.
In the indus¬
trial sphere,
similarly, the con¬
crete antecedents of which have
to

enterprise

economy.

peo¬

ple's pockets, but not ensure their
spending of it. The money man¬
agers can make more credit avail¬
able via the banks. Total personal
income is still high, and savings
are
still rising; so much* of the
lack of buying comes from delib¬
erate choice, stemming from their

led

not a

are

street; that fluctuations
long-term expansion are

one-way

psychological

remedies, the
tors affecting

BANK STOCKS
Send for comparison of 12

diver¬

the setting

economically, and polit¬ surely undermine the assumption

of

ically, Distressed Areas?
The
proposals,
coming, from
Secretary Dulles down, for tieing
Foreign Aid spending to the tail
of the recession, should be simi¬
larly questioned.
Whatever the.
Democrats see themselves with an
New
merits of Aid policy, surely they
adequate
replacement
for
the
should be maintained independent
of domestic WPA-ing!
Even
the
Highway
Program,
stepping-up
purchases by state
and local governments, will not
increase spending much this year.
And besides their stickiness, high¬

PHILADELPHIA

the market's

demonstrates

the Committee
Development. Ap¬

academic

Excess

Maintained in all

In the second

place, the historical record clearly

by

gross

tory.

economy

misunder¬

these durables, plus the digestion
They would like
of existing inventories,, plus re¬
lor Economic
you to believe that a temporary
newed
spending inclination —- a
pealing as any prospects of tax
curb of prosperity is the way to
matter of time, not a process of
relief
are,
many doubts are in
halt runaway inflation. This kind
7
7
order.
The proceeds of a cut do pump-priming palliatives.
of thinking is like believing a
not go to the needy unemployed,
little bit of war might be bene¬
The Significance to You
our

recommended

As
since 1954, marked by
the
all the suggestions for "anti-reces¬
overexpansion
of
plant,
public's "quarter-backing" of the
sion action."
The proponents of
central bank's polity goes on un¬
overproduction of durable goods,

binge

complete

and its participants.

as

justification for skepticism
about the efficacy
of a public
works program now is certainly
confirmed by our abortive results
And

those who have,

saying that a little recession
good thing for the health of

ficial"

But the public consideration of
quarter. Motor production
has become
which so vitally affects the raw our situation
com¬
materials,
manufacturing,
and pletely befuddled by the political
even railroad and trucking sectors foot-balling by our legislators, and
of our economy, is down by a full would-be legislators, who find
25% from previous years.
The themselves with the juiciest of is¬
sues ip. an election year.
Surely,
*A talk by Mr. May at the All-Day
neither party is above sin. The
Conference on the Recession; Fairleigh
Jersey campus;

is

our

generally gives no adequate rec¬
ognition to root causes leading up

third

Dickinson

been

are

the interpretation of employment
and production
figures becomes
public's Recession dis¬
cussion (much of it arising from just another weapon in our handto-hand political warfare.
Panic-politicking) and the fan¬
tastic remedies
being advanced,
The "Remedies"

to

course

the

trouble.

■

because the

sion." there

percentage

decline

present unpleasant condition? The
answer
is important particularly

and what you young people
can do about it.
Whether, we define our present
as

that the cur¬
develop into

Antecedents of Our Situation

''*

construction

total

activity, running through January,
has
been
at
an
all-time
high.

five million, is

in hard goods.

y

sooth¬

these

ing words: "A certain amount of

—

you

situation

serious

more

factor

accom¬

panying
difficulties;
fourth,
the
duration; and
fifth, its sig¬

uttered

Politician

-

the
set-backs of 1948-1949 or 19531954
with
the
ameliorating

a

the

the

figure exceeded the present
deterioration, our then President-

ment

switch: "There

second,

far;

standing of the role of the market

nation's

The

areas.

thus

the

-

back

*

less and otherwise sound.

unemployment, say from three to
Thirties.
supportable. It is
a
good thing
that job-seeking*
Tax "Bonus"
should go on at all times; this is
barometric carloading figures
Sharing the limelight on the
healthy for the economic body."
have
been
running about 20%
economic restoratives are the pro¬
(Feb. 1950 interview). Now—Exlower than last year. Capital ex¬
posals for tax cutting, with its
President Politician Truman
penditures by business are being
application
ranging
from
the
comes up with this philosophical
drastically reduced.
lower- and middle-income groups

progressive

In this

Midst the 1949-1950 re¬

Truman.

cession when the 7.6% unemploy¬

respective shortcomings. Maintains resumption

*

-

of

charges

the

manifests

nothing-ism," "Hooverism," Thus, and with building costs at gence from the accompanying eco¬
etc.
v
their peak, expanded public works nomic events.
The workings of "political eco¬ would
-Again negatively, in addition to
merely add to the inflation
nomics" are well demonstrated by fuel without
the numerous economic impond¬
getting at the roots
successive pronouncements by:Mr. of our
production or employment erables, • the unpredictability of

portant midst the current1 flood of Washington politicking.
Examines *liief suggested anti-Recession remedies; pointing
out their

combat

nation's

the

of

tivity, which is the -only road to
full employment that is inflation-

con¬

schemes

advance

to

own

In the first place, the
concept of stock price
as
a
guide to the

fluctuations

of "do

the realization of which is im¬

and excessive consumption;

to

its

submits data showing absolute

May

"remedies," feels

undesirable

and comparative
extent of current "Recession-Depression." Traces antecedent
.causes, as overexpansion of plant, overproduction of durables,
Mr.

sense'and

the President's common

,

.

issue

fields of

investment

research

security analysis, Mr. Fant
plans to expand these services for
E.

F.

Hutton's

34

branch

offices

throughout the country. He will
also personally direct "the firm's
institutional

Investment

services.

3-6's, 2039
Fischer & Porter Inc.

largest Philadelphia Banks

Pocono Hotels Units

:/

Grinneli Corp.

Buck Hill Falls Co.

Guarantee Bank &

Stouffer Corp.

Trust, A. C.

(Special to The Financial Ceronicle)

WINSTON-SALEM, N. C.
Richard

Keyes Fibre Co.

Reading Co. 3%s, 1995

STROUD & COMPANY

Reynolds Adds to Staff

T.

Chesson

is

now

—

with

Reynolds & Co., Reynolds Build¬
ing.

INCORPORATED

BOENNING & CO.

Samuel K. Phillips & Co.

PHILADELPHIA 9

Established

Members Phila.-Balt. Stock Exchange
NEW TORE
t..

PITTSBURGH

LANCASTER




ALLENTOWN

ATLANTIC CITY

1529 Walnut Strept.
115 Broadway
Philadelphia 2, Pa.
New York'6, N. Y.
LO 8-0900
CO 7-1200
*
ATT Teletype PH 30
.

.

Pennsylvania Bldg., Philadelphia
Teletype
PH 375

N. Y. Phone
COrtlandt 7.6814

>

1914

v

"

With Hayden, Miller

*

(Special to The Financial Chronicle)

*

COLUMBUS, Ohio—Richard M.

Eckley is now with Hayden, Miller
& Co., Huntington Bank Building.

Volume

187

Number 5730

*

.

.

The Commercial and Financial Chronicle

(1493)

Steel

The

Electric Output

Carloadings
Retail

State of Trade

Auto

and

Industry

_

.

time

Vice-President, American Bankers Association
President, Citizens Fidelity Bank & Trust Co., Louisville, Ky.

when

spread

-

Index

Production

Business Failures"*

answer threat of
government lending realistically
by convincing customers that the credit they need to succeed
will be extended,
Kentucky banker asserts in urging "we do
/our part ..to help balance the
economy . *
between inflation

—

'

concern

and deflation."

:

favor¬

a

mistic
lishes
It

tinge with indications/however slight, that the recession presently holding the country in its grips may be tapering off.' .7
On

;:

firm base for confidence.

a

continue

a

it.

Yet

the

upon

that

ployment
in

1,614,000.
^
:
This reversal in trend, together with a pronounced monthly
rise in farm income reported by the United States Department
ago was

ture.

,v.*..v"'.v-v.

-v

-

i":'.

time

years.

;

an

•

were

the

Lee

P.

Business

Economics

of

the

United

States

decline

was

Department
centered

in

of

there is

wages

come

salaries, especially among production workers in the metal, ma- ;
chinery and automotive industries.
' •
•
February non-farm housing starts fell to 65,000 units from ;
69,000 in the preceding month, the United States Bureau of Labor j

serious

Tne

conditions..

.

to

and

will

feed

produce*

the

upon

a

firmer

the

steel

shutdowns
but

some

cycle

is

and

made

are

daily

were

the ele-

the

economy

growth!n

atmosphere of overconfidence.

an

I

believe

more

that

there

should

the forces of

supply and demand
in free markets are always in a
delicate balance, and - that often
only a small degree of change is
necessary to disturb that balance,
The
as

economy might be described
having to walk a tightrope be-

tween inflation and deflation.
Continued

re-

on

page

protracted ' business

that

us

with

the

For

us.

business
a

April 1, 1958

period,

.v..

had finally been leveled
off, and that steady growth was
practically assured.
This view¬
point was predicated upon plausi¬

We

market

analysts

think

an

upturn

is

in

months, "The Iron Age," national metalworking weekly, reported on Wednesday last.
j
"I'll admit the order books don't show it, but I have good 1
reason to believe that April will reverse the
downtrend," a market
research director for a major steel company told "The Iron Age."
Another market analyst who correctly forecast the
slump in

nological
that

and
would

progress,

government

comfort
be

pleased

to announce that

MR. ALPHEUS C. BEANE

ble factors—the pressure of an ex¬
panding population, a rising aver¬
age level of consumption,
tech¬

the cards in the next two

arc

lias

joined

firm

our

as

Senior Partner

pre¬

pared to step in if the pace were
to begin to slacken. Yet, because

and that the

steel demand put it this way: "There will be a definite upturn in
there was widespread' acceptance
May and June. I look for steel output to hit 70% of capacity in • 'of this base
of optimism, a spirit
May, compared with the current level of about 50%." He predicts ;
of
overconf^dence developed. This
that output: for the year will run about 95,000,000
tons, or less ?' Oyercohfid'erice did not
really
than 70% of industry capacity, *
'
•: V
:
' ■ * ■'
spell the doom of the business
Meanwhile, the bad news continues to mount and the current
cycle, but actually planted the
slump indicates that present capacity is enough to meet the fore¬
seeds of reaction

■■

■

•

•

name

.'■£

■

which since have

seeable demand in the next several years.
"The Iron Age" noted that the hardest

germinated
hit

steel

Continued

on

producing
page

34

into

recent months.

the

recession

pleased

the

(formerly

B.

FA NT

officer of Savings Banks Trust Co.
supervising the portfolio of
-.
an

has been admitted to

our

1941, except for the war
members of American

INVESTMENT

E.

F.

HUTTON

COMPANY

L«e~Angeles

•

San Francisco

Dallas

economic

environment

Chicago

Large and small investors
attention

built up by

the

a

this group over

banking business,

could

is

still

have

new.

been

*

AfPttH. 1.

1958




•

Atlanta

It

it

«'

arc

assured of close

over

sixty years-" experience.

Member.1! 7\ew h'or\ Stock Exchange
American Stoc\

Exchange

Commodity Exchange Inc.
,

>

.

...

• >•
•

J^ew Tork Cotton Exchange

Chicago Board of Trade

}\ew York Produce Exchange

-

Hew Tor\ Coffee and Sugar Exchange Inc.:

;

instalment

115

BROADWAY, NEW YORK 6, N. Y.

justifiably

expected to

ex¬

i
.

-

•

Miami

Branches: 113 Went 30th Street, New York 1, N. Y.

Bcacli, Florida

a

PLunfield, New Jersey

a

Rye, New York

Foreign Representative—Paris, France
*An

address

by Mr. Miller before the

Instalment

Credit

personal

their accounts—backed by the facilities of

firm with

•

growing pains.
But if
growing pains have hardly

National

iUV"5

to

proceedings of

ing economic conditions.; Com¬
pared with many other facets of

Kansas City

New Orleans

BEANE

*

and especially by the
warnings voiced in years of strong
optimism about the wisdom of

these.
•

&

ESTABLISHED 1889

perience
,

J. R. WlLLISTON

years,

credit

WHitehall 4-2100

•

-

sound credit policies under:chang¬

MEMBERS NEW YORK STOCK EXCHANGE

Sixty-One Broadway, New York*, N. Y.

an-

previous conferences. I was par¬
ticularly impressed by the phi¬
losophy of conservatism that has
been

firm

charge of

RESEARCH

&

broad

sion to review the

the

and will he the Partner in

Mi"*'*;to" .#,«>

to

;

affecting instalment credit. In pre¬
paring this paper, I took the occa¬

Institutional Investors Mutual Fund)

>

of

changed

nually to discuss not only opera¬
tional factors and policies, but also

to announce that

RICHARD

has been

-

Bankers Association have met
are

.Vi-t,>,*■/;•

Since
years,

We

J. K. Willistori & Cor
»

<

Conference

sponsored "by
the} A.B.A/!rInstalment
Credit Commission, Chicago, III., March
•24, 1958.
v,.~
*
:
•.

'

;

be

general understanding that

more

a

being

and

seemed to he an stromr a»tn create
seemed to be so strong as to create

on

economic

are

constantly at
to forget this

records

almost

of

are

easy

believed that the road to economic

this week, the current rash of plant
layoffs are anything but encouraging,

.worker

new

was

had begun to doubt it. They

many

industry

level-headed

They

for

progress

In

It

when

shifting tides of

cycle.

base

we

early months of 1958 have

reminded

"

Exchange Commission.

work.

well prepared to deal with condi-

business

reminder that

a

demand

and

carve a

tance of stability to that progress.
In so doing, they are fortunately

the

eneount-

living in just such a market econ¬
omy, in which the forces of supply

They have recognized

tions created by

are

phenomenon of

decline.

Most of the decline was attributed to unfavor¬
Business spending for new plants and ;
equipment in 1958 will total about $32,000,000,000, down 13% from
the 1957 total of $37,000,000,000, according to a joint survey of the j
^^United States Department of Commerce and the Securities and
weather

whether

of reaction

themselves

Statistics reported.

able

and

worse

forces

months is

credit in the growth and progress
the economy, and the impor¬

whether the

concern over

natural

a

activity

bf

unemployment situation will be¬

and

and recession
as

The decline in general business
d u r i n g - the * past few

:

have endeavored earnestly to un¬
derstand the role of instalment

levels, the economy is still operat¬
ing at a very high level. Instead,

^

market economy.

a

par¬

performance and
policies
that preserve customer
goodwill over the long Tun. They

the marked decline in the
business indexes from recent peak

Com- I

ered

fleld5 th?y mdst be,Buided by higb merits
standards
ot

eovernmental
governmental

for
tor

Industrialists, labor lead¬

with

merce.'The month-to-month

mism

permanent
niche for their institutions in the

Miller

v

of our country, even
though in the course of the busi¬
ness
cycle periods of overopti-

They

indirect

i

growth

business

_

ao£eanxfltv
anxiety

;

and

m

of instalment credit in the future

those

among

the

meas-

ure
ureot

?

direct

that in order to

ers, bankers, merchants, and the
industry has "bottomed out" of its employmcntproduction-sales problems and is gearing for a leveling-off period, j. man-on-the-street are acutely
conscious of it. Little emphasis is
It added, March new car sales had
shown a' definite firming :
being placed on the fact that even
tendency, \
'"'.v

Personal income in February slipped fractionally to a seasonally adjusted annual rate of $342,000,000,000 from January, but was
1% above*the similar level a year ago, according to the Office of

both

servatism.

uncom¬

leaders.

that

to

needs of those markets. But they
have done so in a tradition of con¬

mind.

fortable

been

that

to
the- stability
of
'
They also can be said
have helped strengthen the role
-ua

ticipation in the instalment credit
field, and the formulation of new
techniques and ideas that fit the

creating

...

.

Other signs pointing to a change in the economic trend include
step-up in machine tool orders and a 14.9% increase in auto¬
motive output above that of the
preceding week. "Ward's Auto¬

the past week stated that indications

is

believe

for

very

in

public
It

a

motive Reports,"
the automotive

first

since

much

This put the parity index at its highest point in three

contribution
such credit.

have, with foresight, placed much
emphasis upon business develop¬
ment, the broadening of markets

mark

is

have not

Commission, have - helped:

cultivating traditions- o£ soundness
in instalment credit,- they can be
said to have made a worthwhile

bank

cycle has been eliminated.

ployment pic¬
ture

Credit

in the instalment credit busi¬

who

; The unem¬

;

underpinned

ness

194 L.

income, the Agriculture Department revealed, advanced
4% in the month ended March 15, the sharpest monthly increase
since February, 1951.
.'
ir
"
.Farm production and living costs rose by only 1% during the
same period, placing
their real return as of mid-March at 87%

,oL parity.

ers

■

Farm

.

fact

:

to build this base of confidence by-

v

Judging from the record, bank¬

rose

"'

conferences, along with ;
the other work of the Instalment'

in
in thn field.
the fi#*iri

progress

above the 5
the

has

nrnprpss

the

If these

...

proach

widespread attention

to

namic ecohomy;

'

growth

t

the courage to look
future—not with

one

-

}).ecn felt>1S because a conservae an<* f 0 r w a r <f-looking aP-

that month

for

•

,

more

unem¬

million

otherwise gloomy pic¬

"

-it

mili10?

focused

was

The total number of workers drawing unemployment pay also
This figure stood at 3,264,000 as of March 15, a decrease
10,700 from the previous week. The total at this time a year

an

/2i

ei?o]?yeS*1,1

ized

of

Agriculture, lent encouragement to

*

hi

y'

;
+^ere olJr
wmtoy.. than, m; 1941.- Few.real-

declined.

of

that such credit will insure better future

so

'■■Hof the economy.

gives

anxiety and fear,, but with a.
strong sense of readiness to serve
the growth potentials of a
dy- -

Criticizes downward growth trend of real GNP
since 1955, and hopes tradition of sound instalment credit will

-

This was the smallest number of new claims for
any week of
this year, but was almost double the 208,400 reported in the same
week of 1957.
;

■'

warns

inevitable.

r

V

unem¬

business news—knowledge

forward

against being stampeded into
drastic measures causing loss of faith in the dollar's
value now
that consumers and businessmen are
convinced inflation is not

able

Friday last, it was reported that a high official of the
United States Department of Labor indicated that unemployment
may decline slightly during April, basing his contention on; a
'March 281 Labor Department report, that a downward trend in
both new and total claims for unemployment compensation con¬
tinued the past week.
The department noted the number of
new unemployment benefit claims filed in the latest week
dropped
by 6,000 to 404,500, reflecting a slow down in layoffs.

Mr. Miller

the

over

that one's house is in order estab¬

...

.Trade and industry news for.the latest week reflects

a

rather wide¬

is

ployment figures — and emphasis
pessimistic rather than opti¬

.

:

there

upon

Bankers must

<

tradition had

a

developed.
/
v
This is important, because at

„

Trade

Price

than if such

not been

By LEE P. MILLER*

Commodity Price Index
Food

covery

Recovery and Role of Bankers

Production

5

It

31

6

The Commercial and Financial Chronicle

(1494)

siphon off highways all over North America
earnings to U. S. shareholders.-- are reducing traffic - delays, - and
This, many Canadians-felt,^pre¬ cutting down intercity* running
switching
vented their citizens from sharing, t time; * passengers^.a r

the native economy, but

Many Greyhounds
Entet prise Economist

sold; in 1938, five-year bonds, and
1937, three-year bonds. v
'

The purpose of today's

is to

by direct shareholding,
in- the from rail to bus inv droves," lured
profits of Canadian branches ^of by modern coaches, swift depend¬
American business. There are rela¬ able service and convenience; and

r

Some notes about the rising trends in inter-city bus business,
with special emphasis on the Greyhound system of fleet high¬

thousands

Thursday, April 3, 1958

.

in

the

By DR. IRA U. COBLEIGII

.

.

offering

provide additional funds for

advances

to

member

of the Home

Until

institutions

Loan system.

the >,new program

was

of \ new communities adopted member, savings and loan
tively few opportunities open to
Canadian citizens for purchase of f have sprung up in a suburban and organizations could borrow from
decentralized econoniy-^-com¬ the Home Loan
way travel spanning all of the United States and a good
subsidiary equities such is IippcBanks, on a shortrial Oil, an affiliate of Standard; munities solely dependent on bus term basis up to
12^% of the in¬
portion of Canada.
of
N.
J.; McColl - Frontenac, a lines; for n public ' transportation dividual member's savings capital.
Almost every financial paper we free windows, lavatories, and at¬ Texas Company associate; British service. T, Because buses are here Under the new
program the mem¬
read talks about how the railroads
tractive
interior decoration.
At American Oil, affiliated with Gulf;'; to stay, Greyhound is on the go.. ber may also: borrow up to 5% of

losing money
transportation, and
are

passenger

on

how

most

of

the

of

end

system

was

1956, the Greyhound and Bell Telephone of Canada, an % Greyhound Corporation has 70,000
v
/
% %■%; stockholders,
operating 5,900 buses, AT&T associate.
1,000 were duel-level
In respect to the subject securi-

them yearn to

of

get out of that

Scenicruisers.

which

*

its

the

of

business

alto¬

gether.
far

as

buses
that

hound

Grey¬

is

500

more

Greyhound delivered,
for the first time, over 10 billion
passenger miles.
.
.
.

Well,

as

Over

added in 1957 and, for

were

con-:

year,

ties, 40%
made
zens

or

of the equity

available

to

FHLB Bonds
.citi'-*

is beingy

Canadian

debentures)*.

is

to

to

increase long-term

non-callable

financing, the Federal! Home; Loan

'i

y v

•:

r,

the

Moreover,

their-.borrowing power to YlVz/o

Market

Public" offering of; $296,000,000
Federal Home Loarf Banks 3Vs %

•v

(either by buying the stock

through ultimate conversion ofr

the

on

.on,
separate
having a. maturity of five
The effect of this increase of

years.

,

end

savings; capital

loans

.

enable

-Upon

consolidated^/bonds

member

completion,

will

Banks

have

just

perience,. know-how and resources *. the,/; Federal 'Home

0QP; consolidated " notes, % /

allocated to radio and TV) stress¬

Grey¬

hound

of

Corp.

city passenger
carrier in the
States.

Irm

U.

transported,
in 1957, almost as many people as
all the railroads in the country,
together.

put

It

something

does

than 60% of the total inter¬

of

All

Cobleigh

It

more

Loan

Bank

Corp.-'Greyhound", Board through Everett Smith, fis¬
ing the speed, comfort and safety of Canada thus becomes a worthy cal agent ,pf the Banks, .and a
of Greyhounds, in a program par¬ example of encouragernent mf > n at ion-wide t g roup, a ofjsecurities
ticularly slanted to lure the pri¬ sound Canadian - American busi-2 dealers. The bonds are priced at
vate
automobile tourist to bus ness relationship; and the. under-.*, 100%%: The offering of bonds in¬
travel. ■■
•,
•
,-<■
r
,
■ V writers are to be congratulated' fori stead of short-termmotes, the cus¬

is, today, the
largest inter¬

United

which

may

indicate to

the present and potential in¬
merit of the 10,640,009
common shares of Greyhound now
you

vestment

Greyhound

.■

a

This

year.

(Special to The Financial Chronicle)

v

Paper is now with; Reynolds
financing' medium of the Co., 919 Tenth Street.
tl£us|
made
to
international economicC Banks;, is a part of the new pro¬
good will. The Canadian flotations;; gram £ofythe Home;; Loan> Board,;
Three With Sutra Co.
appear to provide an interesting» announced in February, to expand
(Special to TiiE.flnancial.chronicle)
opportunity for income combined
mortgage ^credit;" The: Banks, have
the

contribution

'

'Vy.
&,

tom ary

they

have

for

capital

,

selling at 15 paying $1 to yield
6.66%.

1957

earnings

$1.22

were

with

a

potential

hancement.

\

■

en-%

of

consolidation

subsidiaries

,

LOS

ANGELES, Calif.—Francis
M. Dillman, William J. Ervin, Jr.,

/contrasted;with;

...

Donald

and

J.

Willfong have be¬

associated with. Sutro & Co.,

come

Van Nuys

4

miles

bus

;,;/;

SACR^ENTO, CahM'red

;

per share. For 1958 a gain of 10
city bus business in the U. S. op¬
notes# on \ only
three previous
cents or 15 cents a share is ex¬
; The p rospect for sustained;;
(including subsidiaries)
pected.
growth of Greyhound Corp. andt occasions: in 1946, when bonds
100,000 miles of routes and clock-'
its subsidiaries is attractive. Newi. with an 18-month ^maturity were
Recently a major program of
ing considerably more than half
billion

-A:,v

Reynolds & Co. Adds i

erating

a

outstanding the
and $277,000,-

advertising budget (more than half

dandy.

For

they new

;:

$290,000,000 bonds

.

is

\i

lending.

This is quite a story and you're company is managed by Canadians: dated April; 15; 1.958 and due- April
hearing about it via a $5 million with, iii the background,. the ex-> 15,' 1963 was made on April 1 by

cerned, all that
sort of talk

associations
of

Building:

;

and

particular Greyhound is not only
swift but capacious and profitable,

operating divisions has been com¬
pleted. All lines west of the Rock¬

keeping its eyes fixed on the cash
register instead of a mechanical

ies have been blended into West¬

rabbit!

states.

Greyhound Lines serving It
Central Greyhound Lines

ern

15 mid-western states

serves

1)1 It EC TORS

J. P. MORGAN &

and

in
is a merger of two prior corporate
business since 1926; and an unin¬
units. There are also in the east
terrupted distributor of quite lib¬
Southeastern Greyhound; Atlantic,
eral
cash
dividends since 1936.
•

Corp.

Greyhound

1938

the first

been

has

in which
consolidated statements for Grey¬
hound and subsidiaries were avail¬
was

That year showed gross bus-

able.

revenues

this

year

of $49.3 million. For 1957,

revenue

was

over

six

times

Eastern

and

to

consolidate

properties,

2

J-year interval, net worth had
risen from $33.8 million to $111 V%

been

million.

company

no

(through

Today, Greyhound has by
completed its growth.
Fact is, prospects for 1953 are ex¬

tremely bright, for reasons
shall delineate forthwith.

we.

there's management.
In .early 1956, Mr. Arthur Genet
became President at Greyhound.
Before that, he'd been Vice- Presi¬
dent-Traffic of the Chesapeake &

Ohio,

back

as

1931.

he brought along plenty
of demonstrated competence in the
transportation business. At Grey¬
so

■

implemented, animated

expanded.

and

111

March, 1957, the company
a
highly logical and re¬

entered

lated field, the motor
and
rental
business,
new

ear

leasing

through a
subsidiary, Greyhound Rent-

A-Car.

It started with rental and

leasing stations in
expects to

serve

a

few cities and

400 by the end of

1953.

2.5%

on

total

sales

of

$19
million.
There's
also
Grey van
Line, Inc., a sizable enterprise in
moving van and warehouse service;
and there's another

subsidiary do¬
ing a growing business in air-bus
package express, and providing a
nationwide C.O.D. package service.

Greyhound Highway Tours, Inc.
serves

major travel agency,
arranging group or vacation tours,
as

from Greyhound Corp.
Greyhound of Canada also

providing guides and escorts, and
reserva¬

tions.
Bus

travel

itself

which

is,

course,
tlie main
business
been extensively modernized

streamlined.

pension

Lody

There

Ride s,

contoured

are

Air

of
has

and
Sus¬

"Scenicruisers,"
reclining

chairs,

air-conditioning, panoramic glare-




CABOT

S.

CHA RLES

i,Other bonds and securities...

CARTER' ° '

.

C DLL YER

Chairman

%

%"

•;

'.'x, .■%•. /•
..The B. l'\ Goodrich Company Ajy

STUART

h

'

S. CHEST OX

JO MX L.

Senior YicerPrcsident

Loans and bills

in

downtown

\

An

Stock of tlie;Fedpdil

Li uitteit,

.

in

Canada.

There

of

5V2%

into

share

common

at

(convert¬

3-15-63;
and at
$13.50 from then through 3-15-68)
at par and
mon

at

listed

180,000 shares of

$10. The
on

the

common

Toronto

Chairman

an

75 cents

share, supported by 1957
earnings of $1.22. At present price
a

These securities
received

by

7%.
were

Canadian

very

well

;

Not

only did they like the com¬
its earnings and its pros¬
pects, but they especially appre¬

opportunity to become

investors in the Canadian

unit of

major American corporation.
There has been, in
Canada, a con¬
siderable feeling
of
resentment

a

that
to

American

corporations

V:

.....

--.C

>:

*

1....
'Nf

'i*-

come

Canada, profit handsomely from

*

*1 ''f"-- '

:

?y. fiN

:

5,810,000

;

...

3,000,000

.

:

'ifof credit and acceptances. A

•I.Vs

;.....

...:,_fJ4,3970p5

LIABILITIES

Director

Morgan

J":f All ollt-er .i l: .0.

V' 718,988,340
A A.

O/jicial checks hwtstanjinv.

.

"v-

.

Chairman-

.

New York Life Insurance

'

credit issued.

.

Surplus.:;.
Undivided

THOMAS'S. LAMOXT
Vice-Chairman;

t

,.

:■

t

*

..

.

x

.

8,818,306

letters of

'

'

.

.:............ ;..

Capital—360,000 shares.

Company

$801993,309
:

for to,yes, etc..

standing'an d

Acceptances out

Cie. Incorporated

Or JOSEPHS

31053,630

y:

-'f
A e c o unis pay a b le, reserve

;v
:

,

$03,851,335

•

2.2

UJXTOXfi

Senior Vice-President

DEYEREUX

0 '.

Deposits:,U. S. Govern niend

,•%
.;

.

--

.;

profits.

.

.

........

24,397005

,

.

A..

..

35 000,000

.

.....

--

r.;y..V.

,.C%30000,000

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

A.,;18 J47,127

.

;:i

.

•

.

$920,966,147

-4 j /

r-:

<•.»V.

B. C. LEFFIXG WELL
United States

Government

securities

carried at

$(r3,8W/j(i.Vin
the above statement arc pledged to qiuilify for fiduciary powers, to
securp public monies as required by law; and'for other purposes:

L. F. MoCOLLUM
President

Continental Oil Company

f

JOHX M. MEYER, JR.
:

Senior Vice-President

Member Federal Reserve System
Member Federal

JUXIUS
ALFRED

P.

SLOAX, JR.

>

Honorary Chairman
General Motors Corporation

JAMES

L.

Deposit In sit yance ^Corporation

i

S. MORGAX

;"

investors.

pany,

ciated the

.

Ex¬

now quoted at 10%,
indicated dividend rate of

the yield is above

/i

,

VLiability of cusihufersfpn Jetiers

J'5 '2

/*

the Gillette Company

J

LOXGSTREET

com¬

change and is
with

.

Chairman* Executive Committee 'A'

has been

Stock

r

\L6r4anr.J$jRie, lit corpora ted,

Ban-kinhousen

1,050,000

§rCotf:

\-F:;

P

CHARLES D. DICKEY

$11.50- per

through

4,619051.

RJisepfe Bank, J. ^ vi r...

The Procter 4* Gamble Company

sinking fund

debentures due 3-15-78
ible

offered

were

392,6b 1,844

•"

-

MOItGAX

TUOMSOX

-

10 Place

finance Committee-

0 CIE.

IXCQ RPORATED

Yendome, Paris-; France^

.

Hartford, fire Insurance Company
GEORGE

WIUTXEY

HFXRY S. MIX GATE

-

'

President, The International
Nickel

Company of Canada, Limited

MORGAX

GREXFELL

i?*?

J' 15050,683

...

-.

ts receivable,betc.i

^:-dpAP1fffliroad Street\ Corporation

-

50,05 2.7b7

$920056,147c

X. D. JAY

is the re¬
public financing done entirely

m,6()3A5<>

.

,

Calgary,

important feature respecting

accoun

..........

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

':fOpenfell

'f,

the Canadian
company

.

'

Chair man

Alberta.

cent

purchased.

Acimived interest;

most

building

..,

R. DEUPREE

CARL J. GILAVERT

operates
12
terminals, the
impressive being the 10-story
Greyhound terminal and office

.

■■

Vi GRAG1X '•/'

RIG HARD

owns

and

;,/.%

hahd aitd due feom baiAes.

State and niinudnal bonds and not as. /.

%

Cha irma n < : / ' .:
Morgan. & Cio. Incorporated

.

a

making hotel and motel

BERXARI)

pany's subsidiaries provide a bus
transportation system all the; way

manufactured by a company sub¬

C.

on

i'Uniletl-States Gm'evrt'twal securilias..

'<r—

u

Chairman

associated Grey¬
hound lines in the U. S., the com¬

Grey¬

RWRGE8S

Stale Street Investment Corporation

with

$3,500,000
There's Greyhound Post Houses,
Inc., a chain of i47 restaurants
which earned, in 1956, f nit profit
of

PAUL

Canada, principally long dis¬
Directly, and through

from Toronto to Vancouver.

L.

President

primarily engaged
subsidiaries) in motor

hound Mr. Genet has definitely sidiary, Motor Coach Industries,
"revved" things up. Not only has' Ltd.); and has on order 23 more
the bus revenue moved ahead but for 1958 delivery. As needed sea¬
many
adjuncts to the business sonally, additional buses are leased
have been

CART Ell

American Machine ii°I'oundry Company

new

hound of Canada owned (12-31-57)
146
intercity type buses
(95%

X:A SS E T S:f

%

-

"Cusli

is

connection

>*

Statement of Condition March 31, 1938

'

bad

This

■.

/ •"

President

bus business in Western and East¬
ern

[ •'/•

BechtM. -.Corporation.. /

Canadian

which

7

}

YORK

'

STEP HEX J). RECllTEL

tance routes.

First of all,

.

of

some

'

ARTIII'11 M. AXiEERSOXf

serving sections of Canada

far

as

the

all

'

divisions;

Sept; 11,1957;

on

NEW

.:

President

especially to comment
Greyhound Lines of Canada,"

Ltd., incorporated

INCORPORATED

&

ALEXANDER

ihirtsox^

it. p.

We want
upon

('.

Chairman 2

V

and Southwestern Greyhound.

greater—$308 million; and, in the

means

Richmond

HEX Li V

$ GO. LIMITED.

.;.

S3, Great Winchester Street, London E. C. 2, England

*

;

^ y-

Volume

137

Number 5730

.

.

The Commercial and Financial

.

Chronicle

(1495)

increases,

Washington Tmns Down
Britain's Dollar Loan Request

the

in
•

tionary
once

.

,

One of Britain's leading economists reports, and
expresses
approval, that his country's recent request for a large dollar
loan was turned down by Washington. Dr. Einzig states he

7''

sees

7,

need for it if his government is serious about

no

fighting price; inflation and
°

•

terms it

-

..

disinflationary
77-

:

;

.

workers."

;

not finance inflated

The

be

the

British
the

a

it

would

Thf»

in
matter of months, is still'fresh

d

a n

be

great-grandchildren being
...

rGDavment

o^-os

of

aW

wh7'7burdened ^>5' „the,.r®Wyment of

of

the

prelimisound¬
ings about the:
possibilities

existence.

77

,

Britain's
been
been

economic

the United States.
was

inflationary wage increases with
7- comparative impunity. It is widely

willvr maximum wage t claims as - that the transaction would bring
sooh ks': th6? -gpl(Tyre^r\(e is* reiri- "absolutely no benefit to\ Britain
forced. With

r

Am

e

-

creased

the

i

r

Paul

Fund

indicate

Chairman's

shareholders of

Sterling

should be

or

he

made

put up
period
of
peacetime
austerity and extra hard work for
the

a

sake

of

drain,

the

would

go

.

loan would

the basis of

on

This announcement is neither

-report

'to

-

77 7;--

••

7

V-

i t

r

a

was

i n's

of materials

down
V

out,

and

to

own

industrial

worn

her

unearned
wages
of
the
pampered and spoiled British in¬
dustrial workers.
■

Above all, it is little short of a
national disgrace that the Govern¬
ment should make even
prelimi¬

Area

gold

that fell due in December
last. One begins to wonder whether
even a Socialist Government
would
be capable of

going beyond such a
degree of degradation. Where are
days when the Conservative

the

Government's slogan was that "the
pound must be able to look the
dollar in the face"?

consumer

the

barest

:

.

7

•

Hannaford Talbot Adds
(Special to The Financial Chronicle)

that

7 SAN
FRANCISCO, Calif.—John

But

today, with British industry
re-equipped,- modernized and ex¬ C. Poshepny7 has become con¬
panded, with ample raw material nected with Hannaford & Talbot,
reserves,

tories

and

of

should be

with

consumer
no

in hand to

excuse

large

inven¬

goods,
for

there

going

cap

519

California

Street, members of

the Pacific Coast Stock
Mr.

Poshepny

was

offer to sell

nor a

Washington to borrow Schwabacher & Co.^

solicitation of

an

offer to

buy these securities

$75,000,000

: reserve

,',7.7

Province of

-

have

to

re¬
'

I

(Canada)

obtaining

the

co-operation of the Washing¬
ton
Administration
for
such
a

in

cludes

the

for

Debentures

anything but favor¬

able. The domestic

political situ¬

United

the

States

Dated

pre¬

May 1, 1958

r

present the

possi¬
bility of placing substantial dollar
facilities at the disposal of Britain..
The weakness of President Eisen¬

consisting of

hower's position, due partly to his
unsatisfactory health and partly to ;
the strength of the Democrats in
•

$25,000,000 Five Year 3V4% Debentures Due May 1, 1963

Congress, is in itself sufficient to
damp down- any hopes. II is con¬
sidered

to

be

most

7Y777 Price 99.32% and accrued interest

-

unlikely that

anything

could be done at least
until after the Congressional elee! lion in November, V* V>7

$50,000,000 Twenty-five Year 4%T>ebentures Due May 1, 1983

j

.

*7 Even
!

though the operation is,
therefore, far from imminent and

far

from

certain, the fact that
preliminary soundings have been
made is itself very significant; It
shows how easily the Government
can
yield to the temptation of
taking the line of least resistance.
After

there

six

months

are

now

of Tirni

signs

ox.

a

policy

weaken¬

Price 98.06% and accrued interest
_

Copies of the Prospectus are obtainable in any State from
only such of the undersigned and such other dealers as may lawfully offer these
securities in such State.

ing of the
determinat|on to resist
inflation at all costs. The prema¬
ture
was

reduction

of

the

bank

of the symptoms

one

rate

pointing

Harriman Ripley & Co.

in

that
direction; the abortive
attempts to get Washington inter¬
ested in the gigantic doliar loan

scheme
It

another.

was

is

of

'

course

very
Government to

for the

tempting
try to re¬

gain its popularity in the country
by, relaxing
the
disinflationary
without

squeeze

thereby running
being forced to devalue

the risk of

Wood, Gundy & Co., Inc.

Incorporated

The First Boston

Corporation

The Dominion Securities

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

Corporation

McLeod, Young, Weir, Incorporated

1

Incorporated

Blyth & Co., Inc.

Lehman Brothers

Salomon Bros. & Hutzler

White, Weld & Co.

*

sterling as a result of a depletion
of the gold and dollar reserve.
It
<

♦

is

highly* doubtful, however,
whether the boidstering up of the
sterling* exchange with the aid of
borrowed

dollars

would

save

Bell, Gouinlock & Company

Mills, Spence & Co. Inc.

Incorporated

Burns Bros. &

Denton, Inc.

Greenshields & Co (N.Y.) Inc

Nesbitt, Thomson and Company, Inc.

Harris & Partners Inc.

W. C. Pitfield &

Co., Inc.

the

"

Government

the

at

next

general

Dawson, Hannaford Inc.

Midland Securities Corporation

election.

For tne relaxation of the
credit squeeze would result in the

resumption
And

it

is

of

-

fee

wage

spiral.

the non-stop rise in




the

April 3, 1958.

.

•

;

Exchange.

previously with

such opera- 7

some

understood

an

turned empty-handed.
They found
that the prospects for

ation

dol¬

ment

.the

77.7 7;..;: : • 7 v'

were

new

itself of
clause in the 1946 loan
for deferring the pay¬

New Issue

But the emissaries of the Treas¬

scheme

the

flated

The offer is made only by the Prospectus.

considerably reinforced

,\'.7;

are

working out its

B

shows

demoraliza¬

government.
Surely it is not for
American taxpayer and the Amer¬
ican investor to finance the in¬

in

Washington Turns Down Loan

ury

r

down the

Llo^s Bank—that

with the aid of

tion.. 'V'

that its proceeds

rand

more'iiiij^ inb^hsLYe^beengranted. And it is

" visit
Sir Oliver-

that

adopt the suggestion

the

once.

j This

Bank,

Franks has succeeded in persuad¬
ing the British Government to
his

-thefpro-

willingness to grant wage hoped that,

7 /
the 7

•'

Monetary

International
to

The population

fact

seriously

Conservative

nary attempts to raise a
had' lar loan while
availing

resources

and after
its supreme effort
during 1939-45
it could not be
expected to

with

a

Eihzig

to'"the ''Inter-

seems

1945, at
in which

idea

under

even

n'

c a

contribution

national

.

too;-£wbuld show?

substantia T in¬

-

tbe aid ^ of

posed trahsaction.: The employers,

through r'a
of

war

it

physically exhausted

goods run
minimum.

'"J945

dollar loan, *

crease

that

problem

In

the

degree of

tion

mere

*

either through
a direct
opero

self-respect

entertaining
prevailing

Fear Demoralization

securing a
very 1 arge

t ion

rein¬

billions of dollars. The
the Government is

that

exhausted, there may have the waiver
excuse
for borrowing from
agreement

for

a

nation's

the end of six years'

stocks

-

Inflation-Encouraging

to

her gold and
From the point of

without external aid.

equipment
nary

that

artificially

dollar-reserve.

salvation.

ing

superfluous

of payments, it is
absolutely essential
acquired dollars should be able to solve its

a very short time.
of
1946-47.
of 1946-47, whpn
when

before
of

In any
case, if Britain should
succeed in resisting inflation
then

balance

newly

in the minds of many people in
Britain;* They do not relish in the
prospects of their grandchildren

7

twice

repetition

a

experience in the lifetime of the
generation.
7

view

Jor,tthe.^vernmerfs
on

time

away

cost of living which is mainly
sponsible

WIS

a

think

to

same

force

:

.7* ■'

7.

accentu¬

would

The m^movv
memory
the proceeds of the biggest dollar
loan4 for all times melted

'

v
:
LONDON, Eng.—Two senior officials of the British Treasury, Sir

deflationary.

_

the pampered and spoilt .British industrial
-

abroad

the United States Govern¬
would

agreeing

con¬

and

..

Hopes U. S.'A. wilt

squeeze.

"unearned wages,:bf

become

trend

ment

trast between the trend in Britain
and abroad would
inevitably affect

•

*

be

position to add the
to their prices.

Britain, precisely at

^distinctly

rigorously

disgrace" should concern for popu¬
larity bring about "line of least resistance'-'and relaxation of

disinfla-

would

wages

demoralizing, degrading ^ would be lost in

and "little shorUof national

vr7"\
■'Vi ■:

a

the

they

would

when the

,

in

more

increased
ated in

assumption that lesson,
or

squeeze

Inflation

By PAUL EINZIGM

the

on

absence

7

Equisec Canada Inc.

The
8

Financial Chronicle

Commercial and

.

Thursday, April 3, 1958

.

.

(1496)

Laboratories—Report—Reynolds & Co., 120 Broadway,
5, N. Y.; Also available are reports, on American

Allied

COMING

New York

Corporation and Aldens Inc.

Hardware

EVENTS

& Company, 31 Milk
Also in the same bulletin are brief
analyses of Avco, Combustion Engineering and Consolidated
Enka—Data—du Pont, Homsey

American

Street, Boston 9. Mass.

Recommendations & Literature
send interested

to

:

„

Corporation — Review in current issue of
"Gleanings"—Francis I. dflUPont & Co., 1 Wall Street, New
York 5, N. Y.
Also in the same issue is a review of Hart,
Schal'i'iier & Marx and a selected list of "Sheltered" stocks.

parties the following literature:

Bulletin — J. R. Williston
N. Y.

—

& Beane, 115

Broadway, New York 6,
Atomic

Energy—Review—Harris, Upham & Co., 120

New York 5,

N. Y.

Letter No. 36—Data

Atomic

Broadway,

companies deriving earnings

on

Securities Co.,
Inc., 1033 Thirtieth Street, N. W., Washington 7, D. C.
Banks—Comparative data on 100 largest banks—Paine, Web¬
ber, Jackson & Curtis, 25 Broad Street, New York 4, N. Y.
atomic

from

energy

—

Atomic Development

'

Also available is a

View—Monthly investment

Bnrnham
-

Company, 15 Broad Street, New
able is current Foreign Letter.

Edward Hotel.

April 23-25, 1958 (Houston, Tex.)

Incorporated, 60 State Street, Boston 9, Mass.
Food Markets Company—Bulletin—De Witt Conklin

May 1 & 2, 1958 (St. Louis, Mo.)

1957—Holdings

Company of New York, Inc., Ill

120 Broadway,

Consolidated

pany,

Gas

and

an

dinner

61

report

—

Quebec.

P.

June

Broadway, New York 6, N. Y.

are

ard Life Insurance Company,

Company,

Wall

Life

.

Com¬

Insurance

—

—

40

Glore, Forgan

System

—

Data

—

Investment

Cohu &

Stetson,

&

the

same

Wall
bulletin are

Construction Company Inc.

—

Analysis

York

& Co., 120 Broadway,
5, N. Y. Also in the same bulletin are data on
Niagara Mohawk Power and Quaker Oats.

&

Co.,
data

Sept. 18-19, 1958

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

Manufacturing Company—Review in current issue of

"Business

&

Financial

225 East Mason
issue is

a

Digest"—Loewi & Co. Incorporated,
Street, Milwaukee 2, Wis. Also in the same

review of Southwestern States Telephone Company.

Quality Stocks
The

following-—which

we

To Be Formed in NYC

trade and position—

few of many Over The Counter
long dividend and earnings records
lop-drawer management.

represent a
stocks with
and

Yrs. Cash
Div. Paid

AVON

PRODUCTS

BAXTER

DICTAPHONE CORP

__

31

GRINNELL CORP.

G. D. SEARLE

dent; John" F." McLaughlin, VicePresident; Frank J. Brady, Sec-

22

—

and

and

Cyril

J.

alKl Charles. M. Holt, Secretary-

of

America

Treasurer,

at

the

work

Current
groups,

economic

Salary:

examples

of

trends,

ties business.




are

Robert

Hays, President; Ray E. Grigand Ferrin
and Treas¬

gers, Vice-President;
Y. Mathews, Secretary
urer.

1

Officers

on

invite

board"

your

firms, industry

inspection.

Asre
I

Northwest, to engage in a securi¬
A.

"big

$9,000 per year.

Troster, Singer & Co.

Teletype NY 1-376-377-378

convention

annual

Americana Hotel.

FINANCIAL WRITER AVAILABLE

(Special to The Financial Chronicle)

Trinity Place, New York 6, N. Y.

(Miami

Investment Bankers Association

Andrews,

Members New York Security Dealers Association

74

1958

5,

Beach, Fla.)

of

McLaughlin, Cryan & Co. which
is being dissolved the same date.

Sold

30-Dec.

Nov.

Mr.

ATLANTA, Ga.—National Secu¬
rities, Inc., has been formed with
offices
at
1224
Spring
Street,

HAnover 2-2400

it

••

Form Nat'l Securities

Bought

Traders Asso¬

Convention

Annual

the Broadmoor.

the Exchange, Treas¬
LcLaughlin, Mr. Brady
Mr. Andrews are partners in

urer.

>

ciation

(Special to The Financial Chronicle)

change, will be formed effective in a securities business. Officers
April 14, with offices at 52 Wall £)1.e
p
Byrne,
President;
Street, New York City. Officers Frank
K.
Noil,
Vice-President;
will be Henry Kaufman, Presi-

member

22

National Security

Gt. American Inv. Opens

ATLANTA, Ga.—Great Amferi- Oct. 6-7, 1958 (Boston, Mass.)
can
Investments, Inc., has been
Association of Stock Exchange
McLaughlin & Co., Inc., mem- formed with offices at 552 Valley
Firms
Board
of
Governors
bers of the New York Stock Ex- Green Drive, Northeast, to engage
meeting at Somerset Hotel.

retary;

38

____

LABORATORIES, INC.___ 24

(Colored*

Sept. 29-Oct. 3, 1958
Springs, Colo.)

For Financial Institutions—

McLaughlin & Co. Inc.

(Cincinnati,

Ohio)

,

Walker

27, 1958

Mawr, Pa.

Associates—Data—Bache

Corp., and the current issue of the "Bache Selected List"
containing , opinions on 382 common stocks.

Laboratories—Data—Abraham

Hollow

Philadelphia

36 Wall Street, New
York 5, N. Y. Also available are
on Packard Bell Elec¬
tronics, Singer Manufacturing, Food Machinery & Chemical

York

outing at Sleepy

(Philadelphia, Pa.)
Securities
Asso¬
ciation
annual ,outling at the
Overbrook
Golf
Club,
Bryn

June

Broadway, New York 6, N. Y.

•

(New York City)
Association of New

.

Biscuit—Analysis—Halle & Stieglitz, 52 Wall Street
Also available is an analysis of Flintkote
.

Varian

outing
Club,

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

United Fruit Company—Review—E. F. Hutton & Company, 61

Prices—Circular—Amott, Baker &
Co., Incorporated, 150 Broadway, New York 38, N. Y.

Country

Township, Pa.

Investment

New York 5, N. Y.
C°.

Stock

summer

Overbrook

June 27, 1958

—

United Aircraft Products—Analysis—Van
52 Wall Street, New York 5, N. Y.
United

Philadelphia

Radnor

Stanley Heller & Co., 30 Pine Street, New York 5, N. Y.
Alstyne, Noel & Co.,

;

Traders Association

of

26

Herbert E. Stern & Co., 52

in

Bear
.

at

Street, New York 5, N. Y. Also
on Schenley Industries.

Tishman Realty

Club, White

1958 (Philadelphia, Pa.)

June 20,

data

com¬

Yacht

Bear

Lake, Minn.

of Tennessee.

Analysis

(Minneapolis-St.

1958

19,

Paul)
]
City Bond Club annual
picnic and outing at the White

Broadway, New York 4, N. Y.
James Taleott Inc.

Club, Rye,

Twin

California-Western States Life

Street, New York 5, N. Y.
Inc.—Analysis—Winslow,

Ryder

r;

of New
day at

Y.

June

Company, Jefferson Stand¬

Commonwealth

ualty Insurance Company
Company

field

annual

Westchester Country

N.

Kansas City Life Insurance Company and Life & Cas¬

Otis Elevator

Club

Bond

—

reviews of American Surety

Insurance

25th

York

& Sim¬

(New York City)

13, 1958

Municipal

208 South La Salle Street, Chicago 4, 111.
Study — Robert H. Huff & Co., 210
West Seventh Street, Los Angeles 14, Calif. Also available

Bank Stocks—Comparison of 12 largest Phila¬
delphia $>anks—Stroud & Company, Incorporated, 123 South
Broad Street, Philadelphia
9, Pa.

New

Annual

mons,

/Philadelphia

Abbott

—

Nationwide Corporation

Y

•

Company

National Aluminate Corp.—Memorandum—Blunt Ellis

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

•

Manoir Richelieu, Murray Bay,

Lorillard Com¬
pany, 119 West 40th Street, New York 18, N. Y.
Montgomery Ward—Memorandum—Green, Ellis & Anderson,

used in the National Quotation Bureau

Real Estate Bond &

of Canada annual convention at

Street, New York 5, N. Y.

parison between the listed industrial stocks used in the Dow-

4. N

Investment Dealers' Association

Street, Chicago 3, 111.
Landers, Frary & Clark—Bulletin—Georgeson & Co., 52 Wall
Lorillard

Hillwood

at

May 22, outing at Belle
Country Club May 23.

June 9-12, 1958 (Canada)

South La Salle

Richardson

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

Club,

poration, 218 South Wabash Avenue, Chicago 4, 111.
Incorporated—Report—Leason & Co., Incorporated, 39

P.

up-to-date

Club of

Country

May 22-23, 1958 (Nashville Tenn.)

Meade

figures—Wood, Gundy & Co., Inc.,

40 Wall Street, New York 5, N. Y.
Over-the-Counter Index — Folder showing

at

As¬
outing
Maryland.

spring

Security Traders As¬

Sons, 173 Portage Avenue, East, Winnipeg and Royal Bank
Building, Toronto, Canada.
Canada—Facts

annual

sociation

sociation

&

Oil in

:

(Baltimore, Md.)

Baltimore Security Traders

Nashville

Brohdway, New York 7,

Co.—James

Statler Hotel.

ing at

May 10, 1958

—

Kusan

of

Gas

Firms Board of Governors meet¬

*

Scribner, Union Trust Building, Pittsburgh 19, Pa.
Hertz Corporation—Annual report—Treasurer, The Hertz Cor¬

Alberta Gas Trunk Line Com¬

Union

and

•

Street, New York 5, N. Y.

pany,

Corp.

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

Hagan Chemicals and Controls, Inc.—Analysis—Singer, Dean &

B. C. Power Corp., Ltd., Consumers Gas Co., Quebec

Natural

.

Leggat, Bell,

Report — Joseph Faroll & Co., 29 •
Broadway, New York 6, N. Y. <
Cormack Photocopy Corp.—Report—Ross, Lyon & Co., Inc., 41
East 42nd Street, New York 17, N. Y.
Delta Air Lines, Inc.—Review—John H. Lewis & Co., 63 Wall

York 4, N. Y.
on

—

Ltd., 414 St. James Street, West, Montreal, Que., ;

Cook Electric Company

\

Natural Gas Package—Data

New York 5, N. Y.
Corporation — Analysis

Paper

Canada.

Stocks—Review of United

Priced

Dealers

Municipal

Louis

St.

Group annual Spring Party.

Corporation, Standard
Financial, United Asbestos and Briggs Manufacturing Co.—
Hirsch & Co., 25 Broad Street, New York 4, N. Y.
Market Review—Analysis of current situation—Hayden, Stone
& Co., 25 Broad Street, New York 4, N. Y. Also in the same
review is a discussion of interesting utilities and of Revlon.
Mutual Fund Calculating Tables—indicating number of shares
purchasable by different amounts for funds at offering prices
from one to one hunched dollars per share—$3.50—Caspar
C. Schneider, P. O. Box 148, Bowling Green Station, New

Low

Din¬

at the Waldorf-Astoria.

ner

Organization, 120 Broadway, New York 5, N. Y.
;
Christiana Securities Co.—Bulletin—Laird, Bissell & Meeds,

Gou in lock

New York.

Security Traders Association of
New York Annual Spring

■i'.

the company—Mutual
Benefit Life, 520 Broad Street, Newark 1, N. J.
Japanese Stocks — Current information — Yamaichi Securities
Review

April 25, 1958 (Ne^v York, N. Y.)

Century

Outlook for Japan in

Investment

Hotel.

HiPnri

Shamrock

the

at

moot*"*

Association annual

ers

—

-

1958—Review—Nomura Secu¬
rities Co., LtcL, 91 Broadway, New York 6, N. Y.
Canada and Canadian Provinces—Analysis of funded debts out¬
standing January 1958—Investment Dealers' Association of
Canada, 55 Yonge Street, Toronto, Canada.
Canadian Convertible Bonds — Bulletin — Midland Securities
Corp. Limited, 50 King Street West, Toronto 1, Ont., Canada.
Closed End Investment Trusts—Report—R. W. Pressprich &
Co., 48 Wall Street, New York 5, N.'Y.
Dominican Republic—Survey—Chemical Corn Exchange Bank,
International Division, 1(55 Broadway, New York 15, N. Y.

Business

Investment Bank¬

Texas Group

,

letter—Burnham and

York 5, N. Y. Also avail¬

dinner at the King

tion annual

Corp.—Report—Harris, Upham & Co., 120 Broad¬
way, New York 5, N. Y.
Also available are reports on Col¬
gate-Palmolive Co., Litton Industries, Inc., Greyhound Corp.,
Hertz Corp.; the current issue of "Pocket Guide" discussing
20 most popular Monthly Investment Plan stocks; and the
March-April "Market Review" with lists of companies that
could earn more in 1958; and a suggestion portfolio of sound
low priced stocks.
"
Central Maine Power Company
Analysis — Coffin & Burr,

Co.

memorandum on Rexall Drug

Bond Traders Associa¬

Toronto

Canada Dry

Aircraft Industry

(Toronto, Canada)

1958

April 11,

C. I. T. Financial

pleased

firms mentioned will he

It is understood that the

1

Foods.

Field

Investment

In

Box C 43
The

Commereial and Financial Chronicle
25 Park

Place, New York 7, N. Y.

.

38.
.'

■

{

.

Volume

187

Number 5730

The Commercial and Financial Chronicle

(1497)
struction, and

California's State

for

home

and

an

equal amount, is

farm

loans to

vet¬

by the end of World War II.. Our
debt still is moderate.

erans.

Treasurer Discusses

"In view of these

The

veterans

injthe state apparently have about
ceased, he added.

'

Reserve funds

facts, and with

are

Mansfield, Miller to

-

available

in

Be Lazard Partners

bonds, the Treas¬ recent decreases in the interest the California treasury to offset a
urer
emphasized, are completely return on governmental obliga¬ slowed rate of revenue increase,
self-liquidating through monthly tions, I think California bonds are Mr. Button said. He added that
contract
payments
houses
of
by the
loan an especially good investment at both
the
California
California
recipients.
And, he said, about the present time."
legislature have registered prelim¬

Impending Financing
A.

Ronald

State
that
and

Button,

Treasurer, said
California's

financial

state's

condition

bonds

buy this

on

sound

an

April

2

economy

make

especially

the

good

year.

a

round

ment

sale

of

meetings with invest¬

executives

in

advance

of

a

of

$100,000,000 in California
general obligation bonds on April
23rd.
\
1.
*
~

Of the

000,000

bond sale

will

state, loans

be
and

to

grants

not

school districts for classroom

con¬

obligation

have

revenues

have in

the

that

bonded

drain
most

debt

that

Treasurer
of

revenues

government

his

being

are

con¬

state

affected,

on

of

general

other

out

its

servicing their debts.

funded

bonded
or

debt,

nation

states

except

He

as

inary

of

the

for pared

in

with

force

February,

6.4%

balanced

a

approved

few

finally

days:

.

,

in

was

com¬

California.

self-liquidating issues, Layoffs by aircraft manufacturers

Freres & Co., 44 Wall
Street, New York City, members
of the New York Stock

which
in

Anthon

a

ager of

J.

Curro,

George

r -

Sierra

connected

with

Rockefeller Brothers, Inc.,
Rockefeller Center,

officer of

been

[

a

.partner

in

Sulivan

S.

:

Joins HL W. Schmidt

> DETROIT, Mich.—John S. Chris¬

First

tian is with H. W. Scnmidt &
17319 Wyoming Avenue.

Corporation, 98 Post Street.

<■

i:

■;

.

<

Thoughtful men writing a Constitution f"
"EDUCATION,"
Sornia. included in 'hat Const.tuittoiwn N(-0URAGE EDUCATION.;
S h subheading ■'LEGISLATURH TO ^^ knowled„e and tnre •
IQ

W

.

;

In the 4th

said:

cated

Century, B.C., Socrates
are
rightly edu¬
generally become good men."
"Those who

,,f

Article

X

reads,

A general a'nu

j

Gerties of the

s
1849. Art.

IX, Sec. 2,

tevtsed 1879)

i

0M
During the 3rd Century, A.D., Diog¬
enes Laertius,
biographer, wrote:
"The foundation of every state

is the

education of its youth."

In 1957

Bank of America

fa school

Thus

I

Fifteen centuries later, Britain's Ed¬
mund

BULWARK

NATION'S

A

cu.riculum

tion is the

proclaimed: "Educa¬
cheap defense of nations."

w>s

same
century Napoleon told his
people: "Public instruction should
De the first object of
government."

supplied Californ.a commumt.es

a service

officials

invited

continue to use

Bank of

to

when prepublic financing,

fnd development are readily available

America's advisory service

paring for
18th

Century, A.D., Baron
Brougham and Vaux, famed Scot¬
tish jurist and political leader, wrote:
"Education makes a people easy to
lead, but difficult to drive; easy to
govern, but impossible to enslave."

We invite you

municipal

.V

NATIONAL

Otto

von

great

Bismarck,

told his countrymen: "The Nation
that has the schools has the future."




i.».

at

to use

bond

Bank of America.

this service.

department

IBank at America
300 Montgomery

Century Germany's

with

information for investors
Current facts on California's unusually
sound financial and economic bac
ground based on its dynamic growth

for officials

and Municipal

are

statesman.

increased from

^

groups

State, County

In the 19th

population

,^

7591
eneedsofthiseveihgrowingpopu10,586,223 to 14,160,000. To m
facilities, airports, higblation for water, adequate hospitals, s
of America underwritmg
ways and other necessary req
over 2 billion dollars.

In the

the

d

~^

by
educational requirements.
Between and
1950

In

assuring

piloted b, aliform,.

Burke

SAVSINGS ASSOCIATION
•
San Francisco 20, Californ.a

Street

Street

SSOtffSSSSSSSS- —

&

Cromwell, attorneys.

Hauck and Donald M. Terry have
become

Miller

and financial adviser to the Rock¬
efeller family.
Mr. Miller has

FRANCISCO, Calif.—
<

G.

partnership.
"Mr. Mansfield
since 1948, has been General Man¬
an

SAN

Edward

to

' r;

Three With First Sierra

Exchange,

May 1 will admit Richard H.

on

Mansfield and

1958-59,

be

Lazard

state

(Special to The Financial Chronicle)

working

unemployed

for

should

whole.

a

votes

budget for fiscal

pointed out that nationally,

7.7%

"California had virtually wiped

finance

to.:local

California

along with those of other states,
by the slowdown in business ac¬
$1,232,000,000," Mr. Button stated, tivity.
But he said the slump
"all but about $33,000,000 is for
apparently
is felt
to
a
lesser
these two programs. Thus we do
degree in California than in the

proceeds, $50,-

used

The
ceded

"Of California's outstanding gen¬

eral

Mr. Button is in New York for

;

half of * the debt service on the
school bonds is met by repayments
from the local districts.

9

"W

,s

i

Co.,

The Commercial and

Financial Chronicle

.

.

Thursday, April 3, 1958

.

"(1498)

10

their October plans to

Impact of Monetary Policy Change
On Savings and Loan Assns.
RODGERS*

By RAYMOND
Professor of

School of Business Administration
Accounts and Finance

Banking:, Graduate

New York

'/
'

*

which

University

indicated

were

buy

in

authorities

on

dramatically
the dis¬

hind

ing and

industry., like¬
substantially be¬
expectations. Although pro¬
automobile

rate

count

February period were cut- some
28%
under
January - February

sold

:

inflationary

units

selling

for

as

that

expect

a

sharp

upturn

Outlook

Va%, in¬
of the

full

will solve the prob¬

philosophy explains the
"dragging of feet" in Federal Re¬
serve policy since last November.
The change in policy so dramati¬
cally proclaimed at that time and
further proclaimed since then has
been
more
psychological than
anything concrete they have done.
In short, most of the relaxation
has been permitted, not caused, by
them. The only direct action in¬
creasing the credit base, which

bad been used
in all changes

1942,

since

except the

of

increase

Aug. 23, 1957
which was

l/z %.
in¬

likewise

Moreover,

of

pav¬

the

way

stead

ing

Raymond

for the change

Kodgera
..

we

„

can

be certain was

against inflation as hopeless because of the built-in inflationary
factors in our economy? Let there
be no mistake about this! There

makmg

deliberate,

consequential conto/he inflationary trend

any

tribution

is

Agricultural price-support, justment runs its course,
cost of food and
fiber at artificially high levels; Psychological Factors Have Ruled
(2)
Ever-higher
wages
and • It is important to realize that
fringe benefits whether justified the boom in the bond market and
by increased productivity or not; the
decrease in interest rates
(3) Tax policies, which take an have, so far, been due largely to
unconscionable part of today's in- psychological forces/Spelling this
come;
/out, the moment the Reserve
(4) Deficit financing, which is authorities lowered the discount
soon to be resumed, through the rate,
many potential sellers
of
commercialbanks,
which
in- bonds held back because they
creases the money supply;
realized
that
bond prices in(5) Government subsidies, sub- evitably would go up. On the
ventions
and
guaranties, which other hand, potential buyers of
artificially support prices: and
bonds who had, up to Nov. 15,
(6) Price rigidity, which pre- held back their purchases in the
vents a sound economic readjust- confident expectation
that sucment.
ceeding issues would offer higher
(1)

which keeps the

.

_

_

.

_

.

.

make

they will find

either

economic

We

,

These

stability and con-

a

psychological factors and

decline in the demand for bank

other short-term

obligations,

Business Reaction More Serious
Than Anticipated

future.

benefit of hindsight,
Jt is also important to realize
quite clear that the dis- that the current readjustment is
should not have b/en more than a "rolling Teadjust-

the

now

raised

rate
on

Aug.

23,

1957. By Ahat ment"

U^eaktnda decline
peak and a decLne

/ Unemployment is weekly hours
/mittjon The average crowding five
under way. Even more obviohsly/ worked by manufacturing produc¬
tive Reserve authorities erreo^in tion workers in December dropped
its

maintaining the
lot

« geitmg
was

discount
rvf

,-it-i-hi

rate at
atattoivi

3/2 ^ until the middle of Noyem-

ber,

as

weakness
and

unmistakable
appeared in

"An

this

by

signs

of

credit

Prof. Rodgers at

an¬

nual st'ckii-lders luncheon. Federal H*-nie

Loan Bank of

Cincinnati, Cincinnati. Ohio,

Digitized forMarch 11, 1958,
FRASER


1939.

since

The rate of factory

September, production has already declined

continuation

address

the lowest level for the month

firings has dropped to the lowest
of point since 1937. The industrial

they multiplied in October.

But

that

has

one

been

at least; half
of the
year's national saving

50%

above

more

or

or

the

below

preceding, or the fol¬
lowing year./
■"/://///;:'.
Happily,'? cash !* saving v in- the
form of accounts at savings banks
and

savings and loan associations

shows much greater stability and

been

means

of

can

or

is

there

a

either spend for today's

save

growth

marked in

goods

.

1957, partly because of

and the sharp rise in savings and time
the saving in deposits in the commercial banks.

for tomorrow's goods,

enjoy the income on
Through their de¬
sumers

the

in

trend

of such savings
since 1954—this became especially

And while it is true that the end

the meantime.
cisions

downward

a

of

rate

very

of the

to

spend; or to save, con¬
basically : contro 1" the

American economy,

the

will

boom

some

remove

of

competition for the consumH

growth J',-

er's

and its rate of

.•

the

10%

of

the

1948-49

and

the

inactions, and there are
indications that this decline

1953-54
many

will

continue.

Steel

This advertisement is neither an'offer to

NEW

output is consistently run¬

ning under 60% of capacity; and

nor a

securities*

solicitation of offers to buy any of these
.

-fff,

March

ISSUE
'■

continually watch such

must

/";///?':'

decline

the

in

*.

■

'

.

-,.L.

31,195S
'

.

:•

'

106,430 Shares ;■*////

N.:

•

'

.

Northwest

...

""

',

.

<

"

,•

,

/

. ,

,/

•

/ *

Bancorporation

business

4.50%

activity;
(3) The speed with which these
counter-cyclical measures will be¬

'*•
(4) The greatest unknown of
all, the reaction of the American
people themselves!
V
Despite the unpredictable na¬
ture of many important factors,
executives,
especially - financial
executives, must plan ahead—far
ahead. So, let's try our hand at a
road map for the days ahead in
come

sell

The offering is made only by the Prospectus.

•••/.wC'V.-,.

conclusions out-of-date.

our

counter

to

reaching conclusions as to the
With

at

shows

wide range
total income which our people

that

surprises, to put it mildly;
(2) The steps which will be tak¬
en
by
the
Administration
to

institutions

alysis
of
the
reasons
for the
change in credit policy will help

count

This

character!

in

(1) The international political
situation, which is always full of

the American dollar loans also eased conditions in the
the future of our money market and drove down
a brief
an- the yields on Treasury bills and

m

vital

it is

arrive

savings

,.

tional

unknown factors as:

Convertible Preferred Stock
(Cumulative—-S100 Par Value;

'

'

1

effective; and

the field of savings.
for

Outlook

yields, rushed in to buy and thus

.

„

.

Institutions

in

in

-

Stability Is Important to Savings drove bond prices up.

are

with the
accounts to
his yearly total of sav¬
along

other.Jtems

increase

■

.

savings

and

dollar, it is*'indeed* doubtful
that there will be an appreciable
/* The .Department of Commerce upward swing in ther fate of sav¬
far.
'
'
//:/
figures on past saving show that- ing during 1958.
' 1. >v j;
W-'
What will be the impact of this
aggregate personal'' saving tends ■j- Of course, negative saving—the
changed monetary policy on those
repayment of debt—may. be. ex¬
economic factors vital to savings ; to decline absolutely, and, also,
pected to go up-because of de¬
institutions, such as the- money relative to income during a period
clining confidence on both The
supply, saving, interest rates and, 'of cyclical, recession such as we-'
above all, inflation?
These are are now having. .But their total lending and the borrowing side.
But this will tend to reduce the
important enough to warrant an¬
on
personal saving includes not
alysis, one by one, which will now
total of cash saving as people use
only persons, but also unincorpor¬
be done. But, remember, any such
Continued on page 37
analysis is of now—to be of coiir ated businesses (including farm¬
tinuing value must be kept up-

certain to become . a
pressing problem once this read-

important ones being:

fidence

work, "A Study of Savings in the
United, States," includes invest¬
ment in consumer durable goods

living

withstanding, the monetary man¬
agers had to do something.-Moveover, present indications are that
they will have to do considerably
more
than they have done thus

downward trend in business and
to
assjst
the Treasury without

such factors, the more which

many

As

fashion; Dr.- Ray¬
in his splendid

unusually high.. standard of, thus may be expected to hold up
—around 50% of all con¬ well in the months ahead.
Unhappily, however, there has
sumption -.expenditures
are
op¬

an

operations, as was
modest reduction of Vz % to-date! The American economy
reserve requirements.
This, of is so dynamic and there are so
done, the November
reduction led the market
course, does not even remedy the many
important: factors
which
Does this mean that inflation is existing
inequities in reserves, cannot be known until the event,
no
longer a'threat?'Or, does it miich \css qualify as a bold anti- that even as we are making this
mean
that the Federal Reserve deflationary step.
Clearly, they analysis, new developments ■ in
authorities have given up the fight are
trying to help reverse the either Moscow or Washington may

.....

same

Goldsmith,

market

by open
ordinarily

are

primarilyV /-- •{

are

we

-

consult the record

there was no such upturn in

This

which

y4%

includes many-

also

-

the
.

quished!

stead

for Saving

ing, the first thing to note is that
American1 economy is one of

in

industry, if they will

lems of the

the

In
mond

1957.- time,.

Turning to the outlook for sav¬

automobile sales during the MayJune quarter

it

in which

ings

.

season

And

1956 and

in

Clearly, the Federal Reserve will
not make that mistake again!
;;

before the spring
gets under way.
the optimists who

900,000

that became

pressures

troublesome

so

cars

new

and

items in' addition to the cash sav¬

greatly increased sales, and there¬ ing. On this basis, he shows that
by gave birth to .the great invest- - saving has ' fluctuated .violently
ment boom in plant and equip- • from year to year, during the first
ment expansion, which caused the half of this century.
In fact, he

inventory of unwill
approach

the

estimates

credit terms .and

in

ers);

be--* interested.

supply led to

money

relaxation

a

1957, retail sales dropped' even
faster,
with
the
result?- that
"Ward's Automotive Reports"

inflation is still
a
very real danger—that it may
be quiescent, but it is not van¬

a

to

automobiles by that in¬

in-.the

crease

falling

is

duction schedules in the January-

fully aware that

cut

banks

have to issue for new money

of

and a half restraint, this overstaying ol the 1957, or in 1956. Apparently, the
eartier introduction of models in
restraint to fight boom, and their subsequent rethe fall has changed the seasonal
Federal Reserve luctance to increase the credit
that
the
pattern of automobile sales.
.
Nov.
15,
1957 base
clearly indicate
Federal Reserve
authorities arc
So, the danger of inflation not¬

of credit
inflation,
the

commercial

sizable part of S4-S6 billion
which the Treasury will

a

of bonds

After more than two
years

the

enable

spend $1.4

plant and equip¬

lore the year is out.
capital spending plans, are now
being cut back to SI billion, ac¬ y So, we - can expect the money
cording to the American Iron and supply to increase. But don't ex¬
pect them to overdo it as they did
Steel Institute — a discouraging
in 1953-54.- The boost given hous¬
slash of nearly 30%!

The

business reaction as more than a
"rolling adjustment" but does not dismiss, notwithstanding,
the dang^of inflation. Professor Rodgers expects: (1) the.
money supply to go up but not on the mistaken scale of
1953-54; (2) savings accounts in savings banks and savings
and loan associations to hold up well in months ahead* hut
downward trend in rate of growth to continue in 1958; and
(3) long-term money market downward trend to be slower
than in recent months and short-term market interest rate
trend to be definitely downward. Advises bankers not to sacri¬
fice strength for income as inflation is said not to be a cure-all
for unwise or careless policies, and to maintain greater liquid¬
ity, caution, leadership and harder work.

new

lats Fall's McGraw-Hill survey

wise

Banking professor sees

Si;

for

ment,

of Commerce,

And in the School

;

billion

the

Money, Supply

Corporation's outstanding Common Stock are being
right to subscribe at $100 per share for the above shares at the
rate of one share of Convertible Preferred Stock for each sixteen shares of
Common Stock held of record on March 27/958. Subscription Warrants
Holders-of the

offered the

will

expire at 2:00 P.M., Central Standard Time, on

April 14, 1958.

subject to certain conditions,
to
purchase any unsubscribed shares and, both during and following the
subscription period, may offer shares of Convertible Preferred Stock as
/The several Underwriters have agreed,

set

forth in the

Prospectus.

The outlook for the money sup¬

ply is

a

good factor on which to

Copies of the Prospectus may be

In this field, the first thing

start.

writers only

that hits the eye is the paradox of
a

obtained from any of the several underqualified to act as
Prospectus may legally be distributed.

,

in States, in which such underwriters are

dealers in securities and in which the

reduction in interest rates with¬

out

an

increase

in

the

money,

supply, which was brought about
largely by the monetary authori¬
ties.
Money was made cheaper
but
not
plentiful.
In fact, the

The First Boston

Blyth & Co., Inc.

Corporation
J. M. Dain & Company

Piper, Jaffray & Hopwood

Kalman &

borrowing at the Federal Reserve
in December 1957 under the new

policy than they did in December
1956 under the restrictive policy.

A. C.

Dean Witter & Co.

Paine, Webber, Jackson & Curtis

This

is

of

power

which

demonstration

a

we

of

Allyn and Company
Incorporated

the

money
management
should, indeed, keep in

Reynolds & Co., Inc.
Robert W. Baird & Co.,

mind.

Company, Inc.

Incorporated

commercial banks had to dp more

Francis I. duPont & Co.

A. G. Becker & Co.
Incorporated

■*

Mannheimer-Egan, Inc.

'

-t.

Caldwell, Phillips Co.

Allison-Williams Company

The Milwaukee

Company

Incorporated

Their

success

so

far

notwith¬

standing, the money supply must
be expected to go up.
The Fed¬
eral Reserve inevitably will have
to take further steps.
Not only
will they
tion

to

have to take further ac¬
the liquidity of

credit

Kirkpatrick-Pettis Company
Harold E. Wood & Company

John Douglas & Company, Inc.

T. C. Henderson & Co., Inc.

Irving J.Incorporated
Rice & Company

F. S. Smithers & Co.

Bardon Higgins & Company, Inc.

Quail & Co., Inc.

increase

and to encourage in¬
spending
financed
by
expansion, but they will

the economy

creased

Woodard-Elwood & Company

have to create further reserves to

First ol Iowa

Corporation

Shaughnessy & Company, Inc.

Volume

187

Number

5730

.

.

The Commercial and
Financial Chronicle

.

(1499)
ascertainable
own

/'^They

By CHRIS J. WITTING*

Careful study of appliance-television
industry

Our

as

;

field for

a

town and rural

if

adopted, make purchases attractive
here

sees

and easy.

ahead, the author

notes safes last year were third

:

A

lion

rate

a

of

than

more

year,

by

so

But

twb

1968

-

•

handsomely

"

like

refrigerators

refrigerator

we

and

million.

ir*

J

Vo

figured

*

.frorh

sonaldisposb 1

a

...achieved

in
V

this

^

rlmtm

AM

that
■'* Ai?

unknown

were

:l!

J.;

117n««

at

rpro^u?ts arf many
Potentials* Fo1

end

cHlCl

a

the

1957.

i

Although

7^^"

UTI^ViaiiI

olAA+rin

spent

^eir jeaders.^ilfgtog them to fTake
Uveisify.to add

.

.

'

J.

Cftris

Witting

,111 our economy

continuing

:

and

you

wondering,

are

-/financing, and how can you, as
lenders, help in the financing of
both wholesale and retail commit-

■

ments there?

V will

help

Study of

you

come

to

your

*

conclusions.

Part

of

few facts

a

own

mission
here this morning is to give you
these facts.
:

my

'

.

.

-

\.

;

It's true—dollar volume in both

appliances and television sales is
down—by 6.5% -as compared to
1956. Major appliances wound
up
1957, Jl% off; television, 3.5%
down.
But
am,

withal
witnai, together
togetner, thev nan
tney had
the third best year in history. Re¬
tail volume totaled $7,884 billion.

Thirty-lour million units were
sold during the year, and sales ran
high for

very

items. There

many

retail

As

and

sold

million

for

$506 million;
clothes dryers for

than $300 million; and 3.75
million vacuum cleaners for more
than $275 million. < ■

But what's going on in the industry,.you wonder. You're getting disturbing reports.
Profits
are
being squeezed, you hear. Dis-

tribution

changed
dealers
All

patterns are
quite markedly.

are

in

thesd

tween

to

take

1952

being
Small

willing

to

and

true.

Be-

the end of

But at the very same

time the cost of labor
rials

required

to

and mate-

turn

them

tremendously.
example, rose 28%;

for

up

written

creases

into

out

Wages,
and in-

labor

con-

tracts leave

no doubt that
they'll
higher in 1958. Materials
spiraled 19.3%. Yet your wife can

go

go out

.

historic

either unable

more

motion-minded
In

their

—

today and, most anywhere,
buy a 1958 model 8 cubic-foot refrigerator for $50 less than she
paid
1948.

for

the

The

same

same

sized

box

in

situation prevails

in television.

present
This

lu

In

.

of

homes; the second in less than

an

will

the

but

has

suffered.
This
is one of the

price-cost

squeeze

reasons

there's been a de¬
25%
in
stockholders'

cline

why

of

or

un¬

demands

competitive,

years^

What's

■

more,

all

;,pliances, television receivers, and 'available indicates

This advertisement is neither
.

no

gue

carefullv

a

represent

a

gearing its

%

the evidence

t

documented

Aich

to

pianseand
this

its

.......

■

Behind

fact

.

.

.

::

;

an

The

.

are

the

business.

that appliance-

Continued

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

any

on

of these securities,

NEW ISSUE

April 3,1958

of

The

Department of

said

that in 1954,
country's retailers ac¬

of the

counted for 28%

of its sales.

City of Edmonton
(PROVINCE OF ALBERTA, CANADA)

The

super-market
who

type of operator—
great volume at low

moves

™st a"d

lo7 profit-appeared to

$2,000,000

edge until a yeai 01 so
but now, in many cities, de¬
partment stores are challenging

ago;

him.

In

secondary

markets

4%

and

Sinking Fund Debentures Due April 15, 1963

rural areas, small dealers

are still;
backbone of the business. In ;

the

sales

In

were

25,000

cities- of

less

population; 32%

of less than

in

Price 98.0/

T-'

fact, in 1956, 44% of Westinghouse

(plus accrued interest from April 15, 1958)

than

towns

10,000.

In

cities, large and small, man¬
are
aggressively trying
improve their dealer structure,
substantial

business

At the

time, marginal

same

by Mr. Witting before the

Credit

Conference

of

American

Association, Chicago, 111., March

1958.




Sinking Fund Debentures Due April 15, 1983

op-

Price 97.50%

V;

V-f-'f:

(plus accrued interest from April 15, 1958)

attracted to the industry by what
looked like lush profit potentials'

few years ago, have been pretty
well shaken out.

a

1958

year

will

be

highly'

Copies of the Prospectus

competitive. But an encouraging
factor, already apparent, is that
sounder

prevail
the

business
than

practices

have

may

be obtained from

any

writers only in States in which such underwriters
dealers in securities and in which the

Prospectus

will

of the several under*
qualified to act as
legally be distributed

are

may

characterized

industry during the last three
years.
A few price in-

four

or

have

creases

and it looks
to

stick.

as

The^FIrst Boston Corporation

been .announced—
if they were
going

Buyers

attending the
winter market in Chicago in Jan-told plainly that there

weren't

going to be

—the

practice

price

any

"dumps"

has

wrecked

The Dominion Securities Corporation

Harrlman Ripley & Co.
.

uary were

-

Incorporated

'

Smith, Barney & Co.

/

A. E. Ames & Co.

-

Wood, Gundy & Co., Inc.

McLeod, Youhg, Weir,

structures

few years.
are

that

during the last
Leaders among dealers

pressing their colleagues to
a profit into every deal
they

write

>'

Incorporated

;

Incorporated

Bell, Gouinlock & Company
Incorporated

Mills, Spence & Co. Inc.
*.

.

Nesbitt, Thomson and Company, Inc.

Equisec Canada Inc.

So, the realists among you next
ask: What kind of

industry

going

to

a

future is the

have—does

profit

24,

.

erators—manufacturers, distributors, and dealers alike—who were

carry real promise for

*An address

\Vi%

men,

willing to service and promote.

five years; why between 1951 and

National

$12,000,000

seeking fewer but better outlets—
more

and

protection

go

to

Greenshields & Co (N.Y.) Inc
,

again,

make

a

the

elements

sound

Dawson, Hannaford Inc.
W. C. Pitfield & Co., Inc.

your

money?
Once

Harris & Partners, Inc.

it

financing?
for

Burns Bros. & Denton, Inc.

answer

that
are

.

Midland Securities Corporation

.

-.
re¬

search in which Westinghouse in-

era.

The

Commerce has

fart

opera_

stands

pro¬

markets, larger out¬
doing more and more of

equity in the industry in the last

Bankers

11

one.

is

tions.

Clearly ours will
tremendous market.

last>

tne "industry has marketed some 365 million
major ap-

<

role-of

make.

Everybody

little

steady

J—^—i.

—

major

lets

4%

the

meet

new,

The

are

1957,
the prices of major appliances de-

went

.

the

on

appear

this

trouble.

things

clined 25%.

.

a r e

quick look back for

independent distributor. The
remaining independent distribu¬

to

1.319

-

continue

ufacturers

more

.

changing—

margins

a

—financewise.

the

ditioners

,

is

wholesale

distributors, manuincreasingly are being
set up factory branches

were, for example, more than a
million and a half room air con¬

;

levels

-

for

facturers
forced

ah both

profit

squeezed

tors

,

does that leave these industries as
markets for instalment credit

•

2%

understanding of what that
mean

Distribution
fast.

through the year the decline
that they started to show in Au¬
gust, 1956..:
; So, where,

products-*

new

-to stay allve.

.A Yet appliances and television,
you are told, proved to be the soft
spot

a

n

,

and television receivers.

all

going is

survey

—

$281; billion—
$36 billion going for dura'bles, like major appliances
t

the

velopment and of population in-

V1 n A rtf O C

.

.

UP/ A

growth during the next five years.
The constancy of new
product de-

were

con¬

sumers

to

sure

indicated that they -58 ^electrical
products
for
the tions.
Dehumidifiers
and
food
operating in the/red: Four *home. A decade from now
it will? Waste disposers are scarcely off
hundred appliarice-TV d e a 1 e r s have
at least
100, each with its the ground with hmnemakers
closed their; doors in 1957:•
Now/own tremendous market/
%
rthe first.is in less than

.'$3 0 0 billion.
,'Of that in¬
come,

S11

what I have just

*

without clothes dryers, more
than 80% without water heaters,

.

the

ng

sum up

said:

rough right now, and although
are ;some Gf
you may entertain a disfreezers-and surprising
mai view of
it, both the appliance
$eem, 14% Without tele- and ^he television industries
are

without

fT

,

So, to

^

long
6

•

—eve

record—

n e w

high of :8.5%/on sales/in
11
V

>a

"ljQJ.fi

thus

.example, 80/o of wired homes

/income

e

though
are

In

rGC 10n W3S 3

pro<^"

ran in excess of

Even

v ,*

*

was

°-f

u

.

■j.

more

in the

As you. know> consumer credit
rose during 1957 by $2.7 billion to
r?a
a B8ure of $44.8 billion; the
ris®.was *ess than usual, but di-

tre-

a

replacement

market, for example,

at kettor
•it? sold, which
three

every
y

*

even

1956, 45% were
1950, only 9% of
income was pledged to
Pay off this kind of debt; in 1957,
1*101e than 13%
$1 in $8—was.

carrying it.

..

per-

now,

after-tax

86% of all wired homes

ff So, too,

than

70% of sales at wholesale

sets, and 117 mil-

washers—represent

1 957

-v ..v-"'
.; vi:i;£; •
;
^'nbt' all. Research and
ii/The year.1957 was a tremendous ^1956 the
electrical equipment
in-^product ^development
one
in ^American
programs
industry and dustry dropped from third to f are
paying out
'

10
over eight

ranges,

men'dous replacement market. The

earning more money, too.

■

future

right now, several standard
—

clothes

more
than 190 million of Americans in this
country
—-and their breadwinners will
be

-

"instalment-eredit-minded"

million

by

television

items

■f should, have

;

nine

over

:

moment.

a

days ago our population
passed 17214 million. It's increas¬
million

highest

for

•

television customers will be

re-

lion radio receivers.

few

ing at^a

in history and sees continued
steady growth in next five years,
and expects present 57 to 58
appliances per home to increase
to 100 in next decade.
•"V
v!
to iUU in nexi aecaae.
y
;
• f
'
,

Take population

million

financed today—70 to 80% at re™ -°n
air conditioners, 2.5 tail. The trend is all in that dimi- -°n ?.lshwashers> nearly- four rection. For example, in 1952, only
million disDosers. over 37 million 38<& nf nil
disposers, over 37 million 38% of all families had
fnmiiioc Lmri
instalment
vacuum
cleaners, nearly 60 mil- debt; but,

the

.,'isatisfy
..'» better electrically.

-

.

marketing plan designed to
get durables-rolling in volume again.
Looking at 1957 and ^he

years

fr^?ers>
million
m--°n Water ^ters

force, which prowherewithal to
the desire to live

vides
■J

Mr. Witting

essential part of any

an

*

nonulation

55

were

Mgerators,

work

our

bankers,

both wholesale and retail levels is
suggested by Westinghouse executive in the
hopes that a sound finance plan would,
at

exploding

Included

laundry units, 47 million

*

principally

re

-

financing, by small

radios.

your

Continuing and iuccessthl
search by^manufacturers
Steadilv increasi^ income for
oieaany incieasing income lor

■

Pittsburgh, Pa.

instalment credit

to

home

three

are

*

Vice-President, Consumer Products Group,
Westinghouse Electric Corporation,

;

subject

—

judgment.

11

page

30

Financial Chronicle

The Commercial and
12

.

.

,

Thursday, April 3, 1958

(1500)

Trade

Have a
Agreements Program Now

One of the

especially
efficient, and where we have pur

reciprocal trade to well-being of all our major economic
sectors and cruciality to our foreign policy in introducing the
case
for continuation of our Reciprocal Trade Agreements
of

1

months, we are fortunate that our
business dip has
not yet been
more
seriously reflected in the
economies of our trading partners

denies present recession offers any oppositiona! grounds since it "is largely concentrated in durable
goods production where we are especially efficient, and where

Program. Mr. Bullis
i

we

Reciprocal

The
ments

Program

have

a

Agreements

gin of economic strength over the
Communist world. We cannot "go

now

than

more

served the in¬

of

terests

people

our

very

$6 billion to almost $16 billion.
Similarly our exports have in¬
creased
because,
as
the record

times,
A. Bullis

Harry

which

are

marked

with '

world

difficulties in securing true

the 'nations

peace,

free

the

of

bear in

world should

shows, when other countries are
able to sell more of their products
in
the United States, they buy
that

that
''had better hang together, or
will hang separately." We,

they

do not have

in the United States,

the margin of
allow

of

our

Essentiality to Our Economy

trade

It

the

♦Introductory
chairman

each of these sectors, but that

to

sion

of

the

ganizations

by

Bullis

Mr.

on

Conference

of

it, our total economy will
capacity for growth.

suffer in its

of the morning plenary ses¬
National

sufficient authority

reduction,

reciprocal trade program essential

trade.

remarks

well-

so that mean¬
negotiations with
other
will be possible.
Fur¬
thermore, I am . convinced
that
not only is a continuance of this

without
as

the

countries

destinies of nations fol¬

low the course of

to

ingful

amply demonstrated

has

essential

for tariff

that

bonds

Agreements

Trade

period of at least five

being of all major sectors of our
economic life.
To- that end, it

bind us together more firmly.

History

conviction that a re¬

the

a

is

years

we

economic

and

my

of

for

Act

enlarge all

,

is

newal

must, contain

Rather,

allies.

Strengthen and

must

that

strength which can

be indifferent to the

to

us

needs

much, and more, from us.

mind Ben¬

jamin Franklin's admonition
they

the

II, we have
imports from about

'ncreased our

In these un¬

certain

since

he end of World War

well.

may

years

Or¬

There

International Trade Policy,

are

that restricting

who

those

doesn't

One

imports in a

our

in this country.

thing to be without a job particu- tion. I happen to know of a man,
larlyavhen-.
.
all about him, who applied for a
there Is
a
$20,000 loan last August. He has
.

is

there

rious doubt

Cannot Afford NOT to Pass

Act because we need our

the

of

members

exports,

-

in a
The fact is

agreements

discussion

a

its

of

terms

program

policy in
the major
economic life.

on

value of a trade

We know that the

policy to the nation is the sum of
its values to
each part of the

off if the Doliticians were

by

rnent

Indiana,

while

Mr.

is

resi¬ needed

Mason-Hagan Inc.
Official Appointments
RICHMOND,

with

Diggs, Jr. has been elected Treas¬
urer
and Robert H. Coulter, Jr.,
Assistant
of

troller

Secretary and Comp¬
the firm;.
Clyde A.

our

Scott

Bracey was formerly
&

Senator Martin

of the Senate
Committee, have gone to
the White House with their pro¬
Finance

posal to let the Korean war excise
die.
As to just what im¬

taxes

with sist), that if business is to have

Stringfellow,

this windfall the "common

Arnold Adds Two

of

Chronicle)

;

BEVERLY HILLS, Calif.—How¬
ard Lewis and Saul Yarmak have

LIMITED

associated

Vancouver

Quebec

London

Hamilton

Calgary

Kitchener

Sherbrooko,

Windior

Edmonton

New York

GOVERNMENT,
AND




With Paine,

TORONTO, CANADA
Winnipeg

MUNICIPAL

CORPORATION

P. Fred Fox

a

people"

SECURITIES

is difficult

It

reduction.

to,

imagine what would be more beneficial to -the "common people"

10%

.

„

v

^

,

Freci ^ox»...°*
.1,
Company, Inc., is ai group c anman of unlisted brokers in the
Private fl™>s dl™\on °fJ*e 1958
Greater New ^°rk Fund, camn

Pal§n-

;

Eastman, Dilhon Adds

reduction on

(Special to The Financial Chronicle)
machines.
LOs ANGELES, Calif.—Walter
Such a reduction, you would think. ^ Beers Herbert M. Bullock, Jr.,
Arnold &
Company, 364
North
would cause a buying spree all, Thomas, r. ,Clotfelter,
Amos E.
Camden Drive.
Mr. Lewis was
around.
The proposal of Martin Schermerhorn, Howell N. Tyson,
formerly
an
officer of Lewisand his colleagues also called foi
an(j Edwarcj n. Ziegler have be¬
Davis, Inc., with which Mr. Yar¬
an
agreement with
labor and come associated with Eastman
mak was also#associated.
management that there would be Dm
Union securities-& Co.,
r?ac*
r\r* m
nrinac
'
no increase in wages or in prices
3115 Wilshire Bouleyard.
Alexander R. Beard Now
If either group has any sense this

invited.

Jr

Ottawa

3

and other members

with

Lloyd

than

i

-

Webber in Phil.

Paine,
Webber, Jackson & Curtis, Girard
PHILADELPHIA,

Pa.

—

to

get

a

automobiles or washing

r» a

Montreal

Ah

down $200 or so.
•
of Pennsylvania,

go

should have something in the way

Investment Dealers Since 1921
50 KING STREET WEST,

-3

pression they made on the Presi¬
Jr. has been appointed dent, I do not know, and undoubtManager of the municipial bond edly the politicians will feel (par-!
department.
ticularly the Democrats will in-

Company

-

afford } a

spurt to industry.
The price of
an automobile, for example, would"'

Bracey,

McLeod, You hg. Weir
&

extehd' these*''levies

unquestionably

would

Va. —Mason-Ha-"

Inc., 1110 East Main Street,
have announced that
Harry C.

become

-

cor¬

do.

hard to

Inquiries from investor*

•

In N. Y. Fund Drive

the

(Special to Tiie Financial

•

present

the

keep

to

Group Chairman

Chicago porate taxes at 52%. There is a
office, 135 South La Salle Street. growing opinion that this will be
of

Canada.

•

Fox

Congress will not be in
tion of repealing these

Barrowclough

manager

;

.

handout
job the

SBA is doing. The same thing will
be true, of course, with any other

the posi¬
taxes. It
Mr. Ganser, formerly Assistant
Vice-President, is with the firm's will simply be refusing to reenact
them.
Affirmative action is also
New York office, 2 Wall Street,

Mr.

.»

to keep can National Committee
state- telling what a wonderful

was a

Senator
Capehart of
and a very sound sug-

securities, announced the election observers that there will be—the
of Edward Ganser and George L. belief is that it is in this field
Barrowclough as Vice-Presidents that it will be first felt. After all,

will say

mail.

are

It

their mouths shut.

Barrowclough
Michigan V.-Ps.

Correspondence Depart¬
deal in securities by

■:

so

funds which the government has
to administer. People with inl'Iuence will be able to get in on
those funds. Just plan honest
citizens won't have a chance,
In the meantime, every day
coming downtown I pass a skeleton of a tremendous office building. We have had an unusually
hard winter so this site is snowdoubtful if a sane program could covered and no work is going on.
finally, examine its relation to
be carried
out.
The sanest one But let the snow melt and there
foreign investment.
would be a simple refusal on the will be employment for 3,000 men.
part ol the Congress to extend The whole country has had a parthose
excise
taxes
which * are ticularly hard winter. Let spring
Ganser,
scheduled to expire on June 30. come and unemployment will be
They are war levies and should greatly relieved, not because of
First
not be in effect this long after the action of politicians.
Let us
If there is any hope that spring comes soon beFirst of Michigan Corporation, the war anyway.
tax relief—and there is the grow- fore
the politicians really bawl
underwriters and distributors of
,
state,
municipal
and
corporate ing impression among Washington things up.

ment to

■

Carlisle Barreroa

up

gestion, in this writer's opinion.
The
Congress has been
busy
We shall deal specifi¬
passing
this
spending program
cally with the Reciprocal Trade
and that one.
There is considerProgram as the principal expres¬
able agitation for a tax cut.
All
sion of our trade policy and as its
sorts of proposals, ranging from
operating instrument.. We shall
a
complete forgiveness of income
look at it from the point of view
taxes for a few months or a year,
of agriculture, of industry, of the
to a repeal of the excise taxes, are
consumer, of the effect on
our
It would
be
total domestic employment,
and being suggested.

up-to-date information on
major Canadian companies.

•

be expects

economy.

Our facilities include!

across

no

to where he gets his.money.:

for reelection
this
year
are

gan,

offices

business of the landlord's as
But
his rental on every first
©f the month. A government agen-

is

UimmmSi

m,'

Senators

the

that

of

effect

sectors of American

United Statei Investore

Private wire service to

jJV

^

of

thirds

'

complete facilities for the pur¬
chase of high grade Canadian in¬

A

m^E fellow is renting property and it

the House arid
two

In other words, this

went broke.

help.

of

Failure '4o

A Research Department

condition that he get his landlord
to sign papers waiving any claim
for rental in the event this fellow

cy comes along and wants him to
naturally waive that rental,
period such as this.
their greatest concern is about bein the course of the negotiations,
that we canont afford not to have
cdming unemployed themselves.
my friend was told by the SBA
a trade agreements program now.
In a debate, in the Senate a few official: "You think you are bavIn our consideration of a for¬
days ago
one
of the soundest ing trouble now, wait until you
eign trade policy in the total na¬
members, in my view, said that try to get your money."
tional interest, we have proposed
the country would be much better
Yet I am reading this Republi-

INVESTMENTS

vestments.

This man wanted to expand his
At his last conference
the SBA official told him his loan
had been approved subject to the

business.'

panickness of
the politicians

All

particularly now. We should fight
to the limit any claims from any
quarter that we cannot afford a

dent

Jim

guaranteed.

as

slightest

Bill

this Trade Agreement

We need

CANADIAN

to

since gotten $10,000 of this loan

,

will be of the

,

of the company.

We offer

t

se-

a

implies for our exports.

;

have

I

unemployment just read extolling the virtues of
It is not a happy the Small Business Administra-

of

to whether the

;

which

Committee

minimize tional

to

want

seriousness

the

period of recession makes certain
the spread of recession around the
world.
We all know what that

that extension of the act must be

Washington, D. C., March 27, 1958.

of 1930 to realize

Tariff Act

trade

Mid1930's, we have accomplished a
great deal with our foreign trade
policy.
Taking the period since
the

In

has

program

without us.

per

The

21 years.

allies pros¬

alone," nor can our

it

been in effect
for

foreign policy. It is
that we intend to

work, united and devotedly with
the free world, to develop a mar¬

made under it
have

our

evidence

our

on

1934.

June 30,

crucial

It has become a corner¬

stone in

ed

p p r o v

initially

Trade

our

matter.

and

The law was passed

Policy

Agreements Program is a

than become

States has now more

of age.

.

Reciprocal

Thus

United

of the Neivs

By CARLISLE BARGERON

~rf:t r;'
family to supWe need only look back to the port.
On the
period following the enactment of other hand
the

Cruciality to Foreign

Agree¬

Trade
the

of

Ahead

'abroad.

power."

important export

our

Washington

are

we

important export power. There¬
fore, in this period, the continu¬
ance of our foreign trade program
becomes
particularly
urgent.
While our general exports have
fallen to some degree in recent

essentiality

country's leading businessmen stresses

where

duction

Board, General Mills

Chairman of the

From

present recession is largely con¬
centrated in durable goods pro¬

A. BULLIS*

By HARRY

However, the

economic recession.

We Cannot Aiioid Not to

present

of the

because

opposed

mrtmopfi

iv»

"\irn

_

should not be hard to arrange.
When
measures

think

I

the

of

Congress

is

various

passing

to

announce pep up the economy, I can't escape
that Alexander R. Beard is now the fact that they would be adby
bureaucrats
and *
associated with their Philadelphia ministered
office as a registered representa-' that brings me to a piece of pub-

Trust

tive.

Company

Bldg.,

licity

from

the

Republican

.

__

Two With Skaife
(Special to The Financial

BERKELEY,

Calif.

Chronicle)
—

Earl M.

Goldman and Robert E.„ Jones
have become" connected- With
Skaife & Company, 3099 Tele-

Na- graph Avenue.

Volume

187

Number 5730

.

.

The Commercial and Financial Chronicle

.

(1501)

velopment. Several presidents,
including Mr. Eisenhower, have

The Weather is

Clearing
For the Railroad Industry

recommended
user
charges, but
this is the first time
anything defi¬
has

nite

been

done. .The

the

use

are

being diverted tributable

railroad and

our

Canadian

on

lines

to

instances

the

In

some

entire

was

amount

shown that
of

import

Recently elected railroad President provides bill of particulars to support optimistic view concerning future of the rail¬
roads. Mr. Quinn sees business downturn
alerting public to
legitimacy of rails' claim for equality in competitive trans¬
portation field, cites many other reasons for being hopeful
and, turning to his railroad, in particular refers to promising

the

Brotherhood

of

jurisdiction

We

increasing

an

only to the inade¬
but

Primary

these latter fares

over

missions.

realize, of

-

are

com¬

'

traffic moving commissions

through Tacoma-Seattle and Longrailroads'
big problems, as you
view,
Washington,
destined for
well know.
Chicago and New York, is being
There are still other straws in
diverted to Vancouver, B.C., ana
the wind. One, a
widely published moving over Canadian lines to
letter that
Guy L. Brown, head of United States
entry ports at Fort

Chicago, Illinois

not

quacy of interstate revenues,
of
intrastate
as
well.

trip is, of course, vested in state

Canadian lines.

over

It

almost

move

various

points along the border.
is

of facilities built for them

by the government, and for which
they pay nothing, are one of the

President, The Milwaukee Road
(Chicago, Milwaukee, St. Paul and Facific Railroad Co)

from

away

advan¬

tages other carriers enjoy through

By WILLIAM J. QUINN*

points, which

13

simply

course,

that state

are not hostile.
They
operating within the

framework of the law

as they in¬
Indeed the state com¬
themselves have recom¬

terpret it.
missions

mended liberalization of statutes
that would give the railroads more

Locomotive

Francis, Ont., Portal, N. D., Noyes/ leeway, and. the. Minnesota, body
Minn., and Buffalo, N. Y., in order has taken a reasonable position
in regard to our request.
to escape the tax,
There is no doubt in my mind
We pointed out to the committee
road
employees should consider
that the American people are in¬
that in consequence the
aspects of St. Lawrence Seaway.
govern¬
changes. This is certainly a most
herently fair. I am satisfied they
ment not only loses the 3%
tax, will
favor necessary remedial leg¬
;
Perhaps it is due to my newness permitting such a direct hand in encouraging sign.
but that lower revenues for the
And of course
to the job —
islation regulating transportation
you are all aware American carriers mean
perhaps I'm boldly- effecting managerial actions. It
less in¬
by common carriers once, they
treading where a man with more can be said truthfully that, in a of the hearings before the Surface come taxes to the
Government,
years as a chief executive of a good part at least, the railroads Transportation
Subcommittee of while the loss of business con- realize that many of the present
the Senate under the chairman¬
statutes
are
obsolete in today's
large railroad
"
are. and their problems
are, what
tributes to unemployment of
of
Senator
would
w a 1 k
Smathers. The American railroad
their partners in management — ship
world.;-We talk a lot about free
personnel. You
more
object of these hearings is to in¬ can't
c a uenterprise and open competition.
shippers, the general public, labor
blame the shipper or receiver
into the
and Government
tiously — but
present railroad for
want them to quire
making this saving. As traffic Basically, I think most of our peo¬
situation and its effect on the na¬
I
con fe s s
I
ple believe in these ideals, and
be.
men, you would—and very likely
tional transportation
that they will want the railroads
find myself
That though is not new, and I
picture.
some
of you do—take advantage
to operate in a healthy
In a statement issued Jan.
quite optimishave elaborated on it only be¬
atmospjbere
17. of this situation.
We only object
of freedom.
t i c about the
cause it leads
' r-:*
me to
some
of the Senator Smathers stated
that, and to a tax which is here discrimina¬
future
of
our
I quote, "The
reasons why
These points presented -to the
I am hopeful about
testimony thus far tory and effectively prevents us
railroads.
I
the future.
eloquently demonstrates that the from successfully soliciting traffic Smathers Committee by The Mil¬

Engineers,

sent

to

union

locals

suggesting that some labor agree¬
ments are outmoded and that rail¬

.

.

—

...

have

tried

convey

of

to

need is

Hope in Public's Realization

some

that

I
am
hopeful because I think
that at long last we have
managed
to focus the attention of the
pub¬

the

in

title of my re¬
marks. I think..
it

is,

a n

want

t

to

cl
e

William

I

Quinn

the

on

is urgent— that

root

of

the

whole

lieve

Congress will ultimately
the

railroads

of

various

re¬

regulations

Rail

Problems

dating from a time when the rail¬
is roads were virtually the only form

The hearings have
brought to
of course, that the sun
the attention of millions of news¬
already shining and that all the of mass transportation—and
paper readers throughout the na¬
problems the railroads have been
(2)
Excessively burdensome tion all facets of the railroad
laboring under for years will rap¬ taxes compared with their com¬
problem. What are some of these
idly melt away. I am not in the petitors.
facets? Just by way of illustration
least unmindful of the facts of life
These two major handicaps arc let me elaborate a little on three
regarding traffic trends on the keeping the railroads from
giving which" were pointed out to the
railroads — I am
not trying to the
users of their services the full
committee
by
The
Milwaukee
dodge obvious realities.
benefit of their large capabilities. Road.
'

Who

Shapes Rail Services?

'

,

I think the public is beginning
this. More and more it

to realize

Have

you
ever
thought how
is becoming aware that the rail¬
different groups in addition
roads
are
indispensable
to
a
to
railroad management have a
healthy economy, and that a gov¬
hand in

many

shaping railroad services,

prices and policies?

As

an

ernmental

exam¬

one group, the shippers, are
able to affect railroad
manage¬

ment actions much

than

more

tomers of other business

are

cus¬

prevents

signs

many

that

opinion

is

crystallizing along these lines. The

ordi¬

are

policy which

the railroads from doing their job
is not in the public interest. There

ple,

First,

of

the

Interstate

Commerce

While

Act

the

bills

introduced

under

the

administrative
..

The positions the

was

law-

it

the

case

of "forest

jig
I
shippers take,

they make, the tes¬
timony they offer—all have their
effect

the

on

it

ultimate

be

by

the

result,

so-callecl

voluntary action of the carriers
where such is' possible' or by the
order cf a regulatory body.
Consider
group

in British Columbia,
destined for United States

this
If

a

the

better

group

hand

another

term, I shall call
"general public."

the

maintain

we

uneconomic

an

service, such as a losing passenger
train or other unnecessary facili¬
ties, it is really because the public
it

wants

that

enforce

its

way

and

desires

mission orders

or

is able to

through

com¬

statutes enacted

railroad

pointing
for

up,

affairs

and

municipal.

that

the

requires

and the

Government

—

same

It is well

railroads

no

known

the

are

most

managerial function, but
is that there is not the
case

of

most

my point
machinery

businesses

*An address

meeting
Board

of

and

by Mr. Quinn before joint»
Northwest Shippers Advisory
Traffic

clude

such

been

non-farm

dressed

poultry
and vegetables.
The

Commerce
extended

in¬

items

as

frozen

and

Act

to

fruit

1

Milwaukee

Road

Club

of

I

bound to affect pub¬

opinion, which in turn affects
regulatory and legislative bodies
that I am hopeful for the future.
Rail Improvements
I

cent.

hopeful

am

The

reason.

onstrated

for

yet

rising

To

railroads,' including. The
Milwaukee, have been , in many
major ways entirely remade. Few
industries have been so aggressive
larger

in modernization
roads.

Since

as

have the rail¬

World

War

downturn in
for
in

To be

at¬

•

Continued

on

the

six

railroad

president

and

(Accrued dividends

to be

■.

v

s

!

added)

1962

1966

3.35

1967

3.40

1968

3.60
3.65

3.00

,

<<

3.55

1965

1969-73

2.80

3.20%

1964

2.40

1961

chairman

1963

2.00%

1960

presidents

certain transportation

3.45%

;

meas¬

the event

received wide

f •!'

,/' !lii

t

of the board of the AAR
recently
called at the White House to sug¬

gest

,

So*

MATURITIES AND YIELDS
,

1959

When

O
I ' %>

business to draw at¬

field.

and

w

guaranteed unconditionally as to payment of principal and dividends by
endorsement by Louisville and Nashville Railroad
Company

sharply to the need
giving the railroads equality
the competitive transportation

was big news,, and
publicity in the na¬

tion's press.

Issuance and sale
;

of these Certificates are subject to authorization by the Interstate Commerce Commission.
The Offering Circular 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.

Users'

Minneapolis,

Minneapolis, Minn.




Charges

Another indication that the rail¬
roads
are
getting attention was
r

\

the recent

bequest of the Director

of the Budget to all government
departments to initiate- programs

looking toward the recovery of
user
charges from carriers using
facilities built by the government,
and

where

iHALSEY, STUART A CO. Inc.
DICK
BAXTER

&

MERLE-SMITH

COMPANY

"-McM ASTER

existing

legislation
stands in the way of doing this,
to recommend changes in the law
so
the. user, .charges can be! as¬
sessed. This is an important de-"

&

I

R. W. PRESSPR1CH
*

FREEMAN

HUTCHINSON & CO.

4. COMPANY
WM.

1

f

*

L CO.

IRA HAUPT

E. POLLOCK L CO.,

SHEARSON,-HAM MILL A CO.
March 28. 1958.

they
capi-.

tal improvements—nearly as much

$513,000 annually April 15, 1959 to 1973, inclusive

more

II

have invested $13 billion in

•ih! •:»
mature

dem¬

a

Since the end of World War lithe

(Philadelphia Plan)

very

another

railroads have

capacity to make tre¬
mendous improvements to keep up
with changing times. I don't think
this has been publicized enough.

^3%% Equipment Trust Certificates
it

and

lic

Equipment Trust, Series S

believe

is

are

discussion

Louisville and Nashville Railroad

in

It

publicity

!.

are

being sought.
this

serves

packing house shippers than
any other railroad. Due in part to
this agricultural commodity ex¬
emption, fresh meat and packing
house products traffic from,.the
Midwest to the State of Washing¬

Passenger train deficits

is

all

more

hundred per

relief

because

is true'

labor und -government all have a
rather direct hand in the railroad

the

Interstate
has

tive

made

tention

state, Federal

regulated industry in the country.
Shippers,- the public generally,

in

the

on

provision

%

noticeably. It
took the Russian sputnik to arouse
the people of the United States to
the dangers of
dalliance in the
missiles field. It took the recent

ures,

Finally, the hand that labor has

not' wasted -because

has

been

by the legislatures.
in

capitalizing

$7,695,000

More recently, public discussion
of
the
railroads'
problems has

has in railroad affairs. For

lack of

been

products West Coast have increased several

originating
and

people, think, which
in time is bound
to; affect » the
thinking of the regulatory bodies.

demands

whether

have

exempt commodity

3%
transportation ton has shrunk 81% in the period
freight. We showed 1954 to 1956.
Consequently, the
the Smathers committee that this rail
lines - serving
the
Pacific
tax is a strong deterrent to
routing Coast, including The Milwaukee
West Coast Canadian'traffic via
Road, have suffered heavy losses.
long-haul United States routes in¬ In striking contrast, truck ship¬
cluding The Milwaukee Road. We ments from the Midwest to the
cited

Road are only a few of
unfair situations which were
brought
before
it
by
industry
spokesmen and for which legisla¬

state

processes.

the

Competition

on

the Congress, designed to put the
regulatory recommendations
into effect, have
acts which permit the challenging
not yet been passed, the Report
or
testing of rates and practices

the. various

waukee

otherwise share.

the

excise tax

report of the President's Cabinet
narily able to do. Shippers par¬
Committee
of a few
years
ago
ticipate and help shape our pricing
spelled out very clearly the need
policies through the procedures of
for a new transportation policy.
the Bullwinkle Act, which require
A comprehensive program of reg¬
the
docketing of proposals and
ulatory changes was recommended,
public hearings where railroads
and the necessity for greater com¬
attempt to take joint rate action;
and also through the procedures petitive freedom was stressed.
and

trucks

which

don't

mean,

Truck

the

Cites

—

could

We also called attention to how

of

Antiquated

we

many

re¬

problem—
(1)

I

way.

cry

strictions.

11

why I feel that

you

J.

that

lic

hope¬

fulness

great—the

the time for constructive action is
now."
The Senator is confident

INC.

CO.

page

33

The Commercial and Financial

H

Chronicle

.

Thursday, April 3, 1958

.

.

(1502)

be

Limiting Deficit Financing to
Essential Emergency Needs
By HON.

I

United

HAHUY F. BIRD

States Senator From

Virginia

'
'

.

.

.

essentials."

nearly $41/4 billion. While' these
are called increases for fiscal

public works but I am opposed than $2 billion resulting from
to
deficit
spending
for pump falling revenue under present tax
rates, and more than $5 billion
priming, the
from

ineffective¬

falling now. I confidently pre¬
dict that a general tax reduction,
if and when finally enacted, would
cause a further loss in revenue of
$7 billion to $8 billion.

the

depression

25
A

ago.

years

public works
project should
be

constructive,
and

d

a

v a n-

lag'eous to the
have

wmrnk

in¬
op¬

I

Harry

F. Byrd

posed all defi¬
cit financing except that required
to meet national emergency. That
is

position now.

my

to which
or

The extent

the current recession is,

becomes,

will

a

national emergency
what is essential

determine

to meet it

position is,
be, that

My
linue

to

should

be

of results,

While

of

increased

the

'

indices

coming into view,

now

contin-

business lull

purchasing executives say
^^ there are some hopeful signs
ues,

y^ar.

will ac1959.
expenditures and fall-

the horizon.-

on

•

.

"

i

that they are willing to
inventories to drop to a
minimum. This month only 12%
report

allow

any increase in their inventory balance, while 45% say

report

N

of nurchas-

opinion

comr>0site

non-deteriorating

and

improving

agents, report
-

composite opinion 01 puicnas
pffwted further reducwe
inS agents who comprise the Na- they have eiiectea turiner reauc
indicate wt tlonm Association of Purchasing tions since armreriahle chanee
.
Association
February. The rest
30
01 ruicnasing.
with a 1958 deficit up to $2 bil- Agents' Business Survey Commit-.indicate no appieciable change.
lion; and the rapid rise in the rate tee, whose Chairman is Chester F. . y
. v;
Employment '
of expenditure in the current year Ogden, Vice-President,.. The De-.
.
shght improvement
will send
us
into the new 1959 troit
Edison rCompany, Detroit, >. inere is a sngnt improvement
Increased

inpu

indicate

now

revenues

? .^

„

shall end this fiscal year June

J*,*

on

V with'thoiMich^ states that new orders, J" he employment^tuat^n this
which showed _amarked improve- 57% h- A reported their employdjro temv W »
ment
last month,
remained at
who
situation
L a,X)ut the same'level. A." better ment off, to 43% in this category
Whil#»"

spending momentum already built.
.

up.

In

view
View

the
uie

of
01

,

....„

„

.

a.

SHUdUUU

new

together with action
date by Congress on

to

ww^roads"

Mnwh

.

.

order position was reported

ic

nnpniirnfrinfr

j^Marchvis cn^ouragjimore^-Y

same by 42%, and onj,7.
theyhav* mwepro;
''*&"■J*" «de*hey are at leastconsensus for '
holding their;
The general

^

^1

etc .,
v

military
muxia y,

roaas,

woiKb,

.

,,

'
■
Production Downtrend Ending

own.

the
*
estiThis month's figures indicate
mate of $73.9 billion exceeded by that
the sharp downtrend in
$5 billion to $6 billion.
production, prevalent for many
Such an increase would break months, may be ending. Only'30%

Mar„h

down

aulo

should not be surprised to see

1959 expenditure

President's

Up io $2 billion in military

tio1, as conti asted w ith^

and

expenditures;

^

.

change.

+■.

whilp

between

labor

and

the

-

Prolonged strikes

industry.

wou]d seriously affect. not only
the industry itself but its multtin-tudc of suwliers as weu?
v

vFcbruaiy. Half,said there was no

Up to $2 billion in other.,{*

fhat

^ ro
?! 'inrfira?eh I

in

Much of this increase would be

h_

p

Second theimSerSmSo-'

roughly as follows:

related

tri

improvement is expected in
.
oinrtor
mnoh
will

',

- Buying Policy
.... , Some willingness to extend for-

.

^Furthermore, there are indica-; ward commitments is shown this
tions that even the rapid rise in month in the slight change in
Exclusive of tax reduction, my ally higher in subsequent years unemployment may be near"the production and capital expendiv;
end., However, our members be-, tures figures. ^
"
estimate of the 1959 deficit into than in the first.
There is no, such thing as tern-.lieye.that any future improvement p
>
•
,
■
which we are plunging pell-mell
porary large-scale deficit finane- in employment is tied to successSpecific Commodity Changes
may be shown briefly in the ac¬
ing. We know from 28 years ex-, fully negotiating, without, strikes. w yery little price movement of
companying table.
perience that deficit spending is the many important labor con- any kjncj js notcd this month,
I believe this estimate is con-.
not turned on and off as if con- tracts that arc up for renewal.
't
Careful buying can still show
scrvative as of March 19, but trolled by a spigot. If the 1959
There has been little change, lit, 'worth-while savings even though
under present circumstances the deficit is as large as now cer-, the published prices of industrial there are no announced price
deficit may increase. As of now tainly indicated, Federal''deficits commodities, but put chasing changes.
'"'V.'
the figures are supported by the would continue as long as anyone -executives say that, in many inf, , 0n the
side are- Some etee
following facts and conclusions:
can foresee.
stances, compotitiop is resulting triS Mulpmcnt ra^ic ^ md
Deficits pile up debt, and tax in discounts from'list'prices.
Revenue
a' a v
reduction in a period of deficit ; /To date,1 there has not beqn. any•
-'.T".
The President s January Budget financing is simply charged into about-face in the urgent inventory • yn "ie "OWJn S1he are: Brass inover-estimated revenue. It esti- thc debt. We have just raised the reduction program.' As long as allr S°t> copper, coal, gasoline, and oil.
mated 1959 revenue at $2 billion Federal debt limit to $280 billion materials continue to be readilyIn short supply: As in Februhigher than was forecast for the temporarily through next year. A available and stocks'of finished" ary» nothing.
current year. It anticipated m- $300 billion debt would be the.-goods are high, it is unlikely that
^
creases 111 all major sources, in- greatest the world has ever known,; purchasing . executives will want*
Blirnham Co. Adds • in multi-year programs and proj-f
ccts.
Such expenditures are usu-

,

,

public.
variably

combination

The

expenditures, falling revenue and
general tax reduction would re¬
sult in a deficit up to $15 billion.

and

sound

present tax rates

is

proved
beyond any

was

doubt in

increased expenditures.

Revenue from

of which

Purchasing

tually be spent in fiscal year

taken

expediting expendi-^mate a deficit of at least $7 bilfrom appropriations for sound lion, without tax reduction—more

ness

Hopeful Signs on the Horizon

in the present
fiscal year, which ends June 30, :
have been increased so far ;in the
current
session of Congress" by
Appropriations

have outlined

I voted for

ture

de¬

the

will occur.

1958, much of the money

Senator Byrd conservatively predicts deficit financing for 1959
fiscal year amounting to $15 billion based on prospects held
regarding over-estimated revenue, increasing expenditures and
falling revenue. The distinguished Virginia Senator approves
of sound public works, disapproves of deficit financing for
pump priming purposes except, in instance of national emergency, and states that "if we are to avoid deficit financing
now
of a magnitude which would produce disastrous infla¬
tion
Federal expenditures [must] be limited to absolute

|

of

few

and

higher,

creases

sound

and will

con-

anything

done

and

productive

and done with the ab-

Solute minimum of deficit spend-

ing limited to what is essentia] to
ineet emergency
Whenever we

requirements.

.

.

,

engage in great eluding personal and corporate inResumption of large-scale deli- .to ;increase their^hfVentoriespof;r
Npiland
dalia^her hn« ho'1
deficit financing, come, excises, etc.
cii financing is certain to add fuel, raw , materials
and component
'
associated
with -BuVnhanv,
for any reason, it must be done
Revenue is now falling consicl- to the inflation fire, and inflation parts. ;,
y
-and
Comn-inv *15
Rrnad
Sfropf
with full realization that the evils erably
below the current year resulting from previous Federal'
To obtain a better-picture as to,-N
York Cit'v
members .of the"
of burdensome debt and inflation estimate.
At present rates, every
policy is already bad. The yalue-^-.how managementyvfewedr^the ZIZ York
Stm-lindication points to downward reare certain to follow.
of the dollar dropped a third of .business future our special
qu^'-',:registered representative." He'was
In order to put the numerous vision next year. At this point I a cent in February as measured tion for March
was • aimed
at,^ formerly
wifh
Merrill
X vnrh"
deficit-making proposals currently would estimate the drop would be by the 1939 index. At that rate .planned c a p i t a 1 .additionsr
being offered into more balanced approximately $2.4 billion.
Tax the drop would be four cents, in asked if today's expenditures'were
^
a
venr.
Aeeeleraterl
Vast '-'Fall's
....
"
"
perspective, I have attempted to reduction would be in addition,
a
year.
Accelerated rlefieif "fi- heinir altered -r.from
deficit fi- being altered ufrom
last'- Fall's
With Reynolds & Co. v j:
analyze the fiscal-conditions under
..
lianeing i§ certain' to precipitate budgeted •, figures. •
Substantially*
which we are working;
And, in
•'
-Expenditures
• +
this connection, the folly of our
The President's January Budget
failure in more prosperous times Document
under-estimated
exuuitiiiivuLiy
to balance the Federal budget and penditures to begin with. It was
mendous
deficit
spending ;, as i a ingly 9% say .they: are going to announce that: Robert' L " Smith
pay off
some of the
staggering based on decreases in certain protemporary" expedient in recession spend .more than,.^.riginally;;an-- hag joined the commodity depart-'
debt is,plain to see.
grams totaling $3.7 billion under
disregard the long run evil they ticipated.' /^ment in their Philadelphia office,
current year spending levels, while
do in terms of the value of our
'
...
1526 Chestnut Street.
\
Deficit
if.
proposed
increases in other
money, cost of living, welfare of
y : •
Commodity Prices
,
.
1
As I see Federal fiscal situation
programs totaling $4.9 billion over
fixed income people, and our fis-i
The recently reported; increase
H. Carroll Adds to Staff :
developments to date for fiscal current year spending levels. Un- cal soundness which involves our
in the cost-of-living figures does
(SpCT'al to The Financial CHKONtct.c)
year
1959, beginning July 1/ it dcr present conditions it is to be democratic institutions
; and our not+carry Kover. into
industrial
BEVERLY HILLS, Cal.-r-Leon-:
would seem conservative to esti- assumed that the increases will
form of government.
; '
v >
: + prices. Our members report that
.
If we are to avoid deficit spend- competition continues keen. While oi'd + Geller,
(Iii Billions)
Melvin. L. Graves,
President's
Byrd
ing now of a magnitude which many say that "list ' prices" of Eonjamin Jesilow and Franklyn
Jan. Kstliiiate
Mar. Estimate
Beceipts and Expenditures
would
produce disastrous infla- numerous manufactured i t e m s ^ee ^av^ ^ec®me
$72.0
Budget Receipts (at present tax rates).
$74.4
tion, the people of this country have not changed, thev point out
Carroll & Co,, 324 North CamBudget Expenditures (exclusive of
must
demand
that Federal
exthat
discounts' are
often
beine a^-n Drive. .l\Ji. Gellei was pre—
79.0*
Highway Trust Fund deficit)____
73.9
penditures be limited to absolute offered from these "list prices." Viously with Jonathan & Co.

and

prolonged

.

,

uyncil,,

•

v

auvi

rv

^

w

.

.

>

.

essentials.

Budget surplus
-Any

or

deficit____

+0.5

Over-all, only 7 % of our members

—7.0*
wt*

Highway Trust Fund deficit would be in addition.

"

i

wt

i

n

With Walter C.

!

r,

Gorey+

(Special to Tije Financial Chronicle) ^ '

SAN

Here Is A

Special Opportunity for You:

Russ

"FOR SALE"

with

nected

has

become

Building.

";

*
„

-

urn'

Witter

WItn Uean

!

The
i

of

Commercial & Financial

Chronicles, 1938-1950

is

with

now

Dean

•

1

...

Joins Pflueger

Baerwald

(Special to The Financial Chronicle)




Edwin L. Beck

c/o Chronicle, 25 Park PI. N. Y. 7

SAN
F.

FRANCISCO,

Cal.—Louis

Bergamo has been added to the

staff
Mills

of

Pacific

Baerwald,
members of the

Pflueger

Building,
Coast

■

Stock

&

Exchange.

has

rentz

to

mid-1954.

become

associated with

of the New

reduce Milk Street, memoers

continues, York and Boston

Stock Exchanges;

approaching those Mr. Laurentz, who has recently
As long as finished been ; with
Sheraton. Securities

Corp., ;in the past was an officer
of Chapman & Co., Inc. - .
Pcr cent

.

MARCH

Production materials-—

supplies—

Capital expenditures-—

Reporting

6 Mo».

Hand

so

to

.

MRO

•

<>«

to

Mouth

Days

Days

Days

I Yr.

10

41

38

9

2

33

46

15

4

2

10

18

20

41

42

29

11

43
6

21

: 5

2

13

27

36

11

^

FEBRUARY
^

Production materials-'-

MRO

.•'*

Homsey & Company, 31

du Pont,

C. Fine

pany.

Phone REctor 2-9570

trend

.

now

Patterspn Building. He was formerly with First California Com-

Available in New York City—Write or

'

goods inventories are high and all
Witter & Co;,; items are readily, available, most

FRESNO. Cal.—Donald

Beautifully Bound Set of

general

purchased inventories

{••■ ■with levels

(Special to the financial Chronicle)

•

Ch1ronici.e)

^ BOSTON, Mass.—Axel C. Lau¬

Inventories

.

du Pont Homsey Co.

:

(Special la The Financial

what, they, need

mo-eyvL'

con*

Walter C. Gorey

U/'iL n
"

'

A. C. Laurentz With

state that they are paying higher
prices; , 79%;, say v. there is.^.no
change,'and f4% Say that theyj.aie

Calif.—Ed-,l?ow, able 10 buy

FRANCISCO,

Griswold

win

-

;

supplies———___
Capital expenditures

^17

29
18

x

.

1

Volume

187

Number 5730

.

.

The Commercial and
Financial Chronicle

.

(1503)
for the

This Will Be Our Greatest Year
By

future, perhaps the second

quarter, when the empty
have to be restocked.

and

Financial

'

New

York

Figures

"Herald Tribune"

be

-

our

from
V,

greatest

year"—barring

a major auto strike
and
if all the given optimistic
predictions do not
materialize the year will still be
very big. Mr. Rogers'assessment of cheerful and ominous factors leaves
no doubt that

opines that

<

—

;

even

an

on

a

^latest figures available.

; ; no

corporation

the

G. D.

Thompson With

Carl M. Loeb, Rhoades
42 Wal1 Street, New York City,
*Perabers of the New York Stock

be

may

three
~

.

Certainly

If

months,
months, of strike.
that happens, all hell

break

looser

It

will

look

can

we

auto¬

Carl

_

billion in the last quarter of 1956
to about $42 billion in the second
are

thing
the

The automobile

troit that at least one member of
the Big Three car builders
is ready
to sweat out two

drop
about $45 V2

quarter of. 1957—and those

one

about

planning for a
strike, aimed at stopping Walter
Reuther, It is whispered in De¬

corporate profits lag

annual rate of

industry.

officials

drastically, but they showed

Prominent financial editor
unhesitatingly surmises 1958 "will

there's

consider

mobile

Corporate Reaction

Editor

think

should

DONALD I. ROGERS*

Business

I

-

shelves

M.

Exchange

even

Loeb,

and

to

lower

operational

Rhoades

leading
changes,

Glen

the

now

...

.

■

N

e

their
Y p r k

w...

sales

depart-"

ment, concen-:

„

,

$38 billion.

ing them

down; to their, hardest

and after
the arlgles and

core,

fears

f That

considering all of

with

a

liappy

That

mighty
busi¬

.

Construction

;»

••■■■**

outlays

basic

a
re-;
Session at the

a

Just

to be in

have

aS

T.'

dealt

with

the

of

measures

;;,But

,

"•

v

So. far. I

the

economy.

look at other yardsticks is

refreshing.

a

'and,, sale
"in

into debt.

-

.

..

Butj j predict heightening sales

I'dTemind

it

over,

is

in

not

the

nature

other than

of

you

an

of this.

Anyone

American who could
view our whole

American

step back

and

and

economy
it was

would

corporations to sit still
gobbled up by mounting
There will be further auto-

be

costs.

think

that

c

D.

Thompson

of

i p a

1

cor¬

securi-:

ties.
Glenn

,:

Mr.

Thomp-

has

son

ity boom.

from the second quarter on.
More¬

i

porate

business of resuming the
prosper-

'

u n

bonds and

^4-

coc>

the:

on

distribution

/4in4niRii4iAU'
collections, and this, in turn, could thA warnhmi
in
the warehouses at distribution
1,1.00,000 ;add to the inflationary problems y points, and clean out
the retail
yV. as the government dipped further shelves, and then get on about the

...

■v, j i**'

said :"

are

Total

-from
from

■>
will increase from $47.2 «».•««
billion
to $49.6 billion.
;

J-

-

outlook

We

.in'rrpdQ a
increase

...in

up

for 1958.
tv

will
will

the 950,000 of 1957 to
in -1958. V 'Y ,Y.

.

ness

on

nrvlior»ti/\r*c

nnH
and

trating

American business leaders will
learn the lesson about their inventory pipelines. They will empty

ex-

A clampdown
profits could affect Federal tax

their slow and solid improve-;

which

come

in sales volume, we could

up

Housing Starts will "continue ypect some trouble.

mpnf
ment

-

p 1 a g u e the;
pessimists, I

still

J/.:"Y

D..

n

associated

rw ith

=

.

ex¬

an¬

that

Thompson is

costs.

*

~

Co..

nounce

will

slow

&

other

forward, steel industry to a
halt, will just
Most about
economy can be expected to continue to surge forward after
cripple '• the railroads, and
•V costs* will be higher, including costs will have
t
general depressing eftemporary halt due to industrial catching-up process and ecoV for
wages, raw materials, packag- fects
throughout the economy,
nomic problem caused
transportation and marketing.
by labor costs exceeding productivity.
Naturally, all of the happy figures
a
:
'..fiv
....
Y. * In other words, profits will be I' have predicted will be
S
junked.
ying
of the ^Sures
by $700 million ; from $37.3 squeezed."If there were not a
With the utmost
pick"But if there is no strike, I think
care, after sinter- *
billion to
our

15

been

?ctive in the lnu,niclPal ,bond field
•f?1'
yeala> having been asso"ated in the past with the Chemical Corn Exchange Bank and more

mighty sensational, mighty recently with the New
of
Drexel &

York office

Co.

,

time/

present
It

you

to

He

call

this

^e-most

Donald l. Rogers

; Norman Stabler, our market ex- Again chalk
up another credit Tor
peI^ predicts that, no.matter what; this marvelous
enterprise system
the stock market does
during the of ours.;,.
year, its general direction for the
i/ear will be higher. •
.
;
Auto
the Bellwether
The stock exchange itself
pre-.

_

<

,

have without calling it prosperity.
;

cession you can

catching-up process which,
an economy like ours, tops-out

Cvery boom and

causes

number

dividends

rary halt in the economy s propulsion-—like the seconds between the

despite

pinch

a

and

paid

expects

to

on

shareholders,
profits affecting

car

gucb vvidely

diversified though

.

trouble.

But

have not

we

Seventh

economic

inefficiency

With *jall

these

the

on

known to

man.

may be
weaknesses

soft

and

Cerried

with

a

—

which

I'will/performer

being

year.

j

are

year,

par¬

would be sheer

be

our

>

.

"

ominous

This

in

dn overdose of
even

I

based
my,
*

and

am

been

predictions

command—coupled with logic
judgment which have been

-

Yet,

much

Now here
I predict

for

are

the

hedging.

wage

.

$435

billion

in

1957

to

$441

billion in 1958.

that

'

Without
in

the

•

creases

dormant rate

comes

/

by

consumers

some

wage

how

by $8 billion, to

a

total of $308

; billion.

Equipment

An address

Bill

announcement

Baldwin

by Mr. Rogers

Annual

City, March 11,

will

Dinner,

Plant

increase
befare
New

1958.




the

York

dealers

or

contracts

will

be

industries, for in¬
promised

were

may

be obtained in any State in which this
only, such of the undersigned or other
lawfully offer these securities in such State.

may

'

1
,

Merrill

Lynch, Pierce, Fenner & Smith

Kidder, Peabody & Co.

Equitable Securities Corporation

Stone & Webster Securities Corporation White,Weld & Co.

Dick & Merle-Smith

Carl M.

Loeb, Rhoades & Co.

F. S.

Moseley & Co.

'

written

That's

present,

as

i

a

year

but

kind

it's

a

of

bad

good

I'

ago,

Looking at another side of the
picture, there is no doubt that an
inventory liquidation is now in
the

1988

and Accrued Interest

a

ex-

will be granted in the face of this

progress.

April 1,

is circulated .from

brokers

in-

while

stagnant productivity rate.

That expenditures for New
and

in

Due

Price 102.526%

pos¬

wage

increases

stance, raises that

jump

railroad

Company

Mortgage Bonds, 4Ys % Series due 1988

April 1, 1958

coming automatically, in the steel

to

-

Dated

-

productivity

and

$289 billion.

circumstances to be construed as an
offer to sell or as a solicitation
of these securities. The offering is made only by the Prospectus.,.

no

April 1, 1958

First

pro or con,

justified

will increase from $281 billion

That Disposable Income will

any

Wisconsin Electric Power

-'

ists. It's the quickest route to ruinous inflation you can devise. Even

expenditures

buy

for

up

so,

That

viously with Bailey & Company,

The auto¬

Production Index will increase
144 to 145.

With F. I. Du Pont
(Special to The Financial Chronicle)

Staff

Inc., Russ Building.

Copies of the Prospectus

see

of

to

this,

from

/

is under

3%

on

labor-versus-capital
be

Amott, Baker & Co., In*
corporated, 30 West Main Street.

$30,000,000

one.

taking sides,

can

C. Samaha has been added to the
staff of

they will ask for

contract

renewal, for

ture, I cannot

That corporate profits will increase
by $1 billion to $44 billion.
ThatThe Federal Reserve Board's

about

increases in 1958.

mobile

National

Product will increase from its

the

announced

predictions:

my

that the Gross

to

begin the new year,
major unions have

as we

of

many

Specific Optimistic Predictions

-v-So

offer

an

productivity has

yearly increases based
"improvement factor."

exercised to the best of my ability.

WATERBURY, Conn. —Joseph

Lynch'

*

1

automatic—at

so

Co.

NEW ISSUE

per year—that General Motors and
others have granted automatic

all of the calculations at

on

pronounced.

announcement

industry's

*

The increase in

sleeping pills—nor

making

automobile

contracts.

With Amott, Baker

has

for two

now

of-living" escalator clause written
wage

Company.

FRESNO, Cal.—Ralph H. RowSAN FRANCISCO, Calif.—Donland, Jr., has become connected
aid E: Kuhwarth has been added with Francis I. du Pont &
Co.,
to the staff of H. L. Jamieson Co., 2117 Merced Street. He was
pre-

years.
It .wasn't so long
you'll recall, that the biggest
thing in labor news was theVcost-:

the

of W. T. Grant

-

Jamieson Adds

ago,

hang my head in mortifica-

tion.

Pierce, Fenner & Smith.

straight

into

Kilburn,
President
of
Greenshields & Co., Inc., Mont¬
real, has been elected a director

New

cars on even-

more

of

One of the most alarming is the
fact that man-hour productivity

job to be
specific,- not cautious. Second, I'm
hot afraid
of being
wrong.
If,
at
the
end
of
1958
the
fig¬
ures
I. have; been
predicting
all turn out to be
incorrect, I am
not going to quit
my job or -take
my

Peter Kllburn Director
Peter

as-

economy,

greatest ,lSpite of all the cheerful
things you
' •.*
r
^can find if you look hard
enough,

has failed to increase

it's

Company.

„

folly to deny

I

that

Vice-Pres¬

•,

I am given to making specific
predictions for two reasons. First,

believe

a

ident of Banker? Trust

Incorporated,
20
Broad
Street,
New York City, members of the
York Stock Exchange.
He

almost, painted
corner-with their

apt to sell fewer

style change is

:

Ominous Aspects:

a

numbered years, like 1958, than in
odd-numbered years, when the

1957.'

of

-

con-

pf the majority of Americans and- that there are some
the majority of American enter-,
pects to our current
prises—this- will

stable

more

ticularly for copper,' the rocky

the general welfare J jt

_

be

have

man¬

style-change techniques
They
make their biggest style
changes
every other year, and it just turns
out, through coincidence, to be on
odd-numbered years.
Thus, they

pick-

^

whole, and

as. a

will

for metals this

market

spots

outline—but considering the econ-

6my

there

me

f

.

There

Worthington
Mayo-Smitli
joined the staff of Blair &

•

ufacturers

appliances, furfurnishings.
should know, /tell

People.- who

y

7

themselves into

up in the sales of
niture and home

Economy, I still find it impossible
predict anything for 1958- but
the highest level of prosperity ever
to

M. O'Connell has be¬
affiliated with Amott, Baker

w

.Moreover, the automobile

Avenue.

come a marked

come

year.

years.

with the step-up in home

building will

,

hobbles

Aiong

,

of New York."He is

Bernard

6-million-

until the last five

due,^according to expert analysts

yet

a

appointed a director of General
Security Assurance Corporation

~

mutlu-

tiey industries as chemicals, elecThere is also a growing ecotronics, rubber, machine tools and
nomic problem caused by the re^textiles all anticipate new records
duction of productivity in our inthis year.
'
dustrial plants at a time when
There will probably be an
uplabor costs are steadily mounting,
turn in apparel
sales, long overIt is uneconomic and it will cause

Reaped the harvest of this gross

E. Fleetwood Dunstan has been

Many of the Detroit of- & Co.,
Incorporated, 150 Broadficials are quite glum about this.,
way New York City, members of
But they overlook the fact that
the New York Stock
Exchange.
except for 1955's record-smashing" He
was
previously
with
Mc¬
7-million-car year, 6 million is a
Laughlin, Cryan & Co.
record seldom equaled in automo¬
tive history, and certainly an un¬
Blair Adds to Staff
heard-of figure

-

..

only

E. F. Dunstan Director

-

year., And
should all make out all
right.

Jpins Amott, Baker

ne'^k5, Thf-automobile indj^w which
th^v^ue of wether
become the unofflclal bel1"

the .corporations,

first and second phase of a rockets

projection.

big—a very, very big
we

there'willbe

f/f'he

tempo-

a

the predictions and
figures I gave
do not come true—it'll be a

—

..

I am not unmindful of the indus-

trial

some

the

you

•

,

us

charter member of

a

prosperous re-

in

a

choose.

recession thenwm

rt te

is

for

sign

R.W.

Presspricb & Co.

Shelby Cullom Davis 8C Co.

Bache & Co.

,

■

.

Baxter &

Company

Granbery, Marache & Co.

•

-

J. Barth 8C Co.
Putnam 8C Co.

!

Commercial and Financial

The
16

running ahead of 1957. While
Allis has suffered with the

equipment group gen¬
erally, it also is importantly
engaged in heavy electrical
generation apparatus with a
backlog that will carry the
firm into 1960. The only item

STREETE

By WALLACE

Pause

April, which over the years
been mostly a standoff

has

That's

Refreshing

because their first

Mostly

group. To them, a pause in
little strength in the uphill climb is refreshing.
the metal sections since the Some of the drug firms have
month also started off with a had sharp expansion in sales

cently.

There

By H.
Executive

was

it

in

trim

spending to bolster the econ¬

.

1

v

i

the shares since 1049.
Some of the
food
were

action but there was
in

of the food

some

ago as accounting for 80% of
its sales. More than half of

universal

The

more

with Latin America than with Europe.

tions of Latin America to speed per se, is the answer to all the ills
their industrialization is apparent that man is heir to and believe.
to

business

whoge

anyonc

or

professional

interests
bring him into

is
becoming more and more highly,

tion is unfortunate. The jvorld

with

contact

j g h b o r s;

competitive and specialized, and
this can be a potent force for

greater productivity and improved

southern

our
n e

living standards through the
Processes of international trade
and investment; but these benefits

i

rough, the shares have

going

dec^rieity, it is a

plying

.

.

can be lost to a nation which disJ sjpates its resources in the crea-

restrain¬ sales is in items three years been holding lately a score of fact of life
ing note. And tobaccos were or less old.
points
below
the peaks which bears
rpirdipd in 1954 and 1955 beimportantly
buoyant most of the time al¬
Abbott Laboratories might reached in limana raoo joe
on current op_

store issues to add a

though they weren't in any
mood to continue to plough
ahead

levels

historic

to

be

a

case

fect of

as

to illustrate the

new

ef¬

they did

bit back.

a

nf

cnrtrdW

era^ons

tion of high cost and uneconomic
industries which can be main-

tained only % erecting high tariff
JHH barriers. Fortunately, there is inHenry w. Baigooyen creasing evidence that countries

mm

and

despite the exerts

^

a deciimportant sive influence
nnelpar reactors on long-range planning.

is

it

that

fact

trouDies

several

its

lore

products since, for cropped up. This

period of four years up to
1955, it was static marketwise

a

that there js evidence that too
rapid industrialization can be as
dangerous as under-industrializa-

in the busiwith the overall market ness of sup-

Yet

which have made the mistake of
trying to force the pace of indus-

an

it was a pat¬
fnr d in nronuls on and elecIndustrialization important eco_
is, without a
and never approached its 1952 lor ship propulsionanaeiec
d
^
discouraging market
peak of above 64. Since then tncity production which has nomic issue south of tbe Ri0
in the main not yet ready to
The people of Latin
it has been introducing new been the glamor field that Grande.
start discounting any business
sparked interest in other is- America, like those of other areas
products and moved on to
in the earlier stages of economic
upturn and still somewhat record levels for
,
profits and sues.
development, have come to regard
surprising in that it didn't sales. These
good figures
Operating Utilities Still
industrialization as the key to the
sell down harder in view of
haven't taken hold 'marketStroii"
more abundant life and, con»tron&
the bleak business back¬
versely, to consider their relative
wise yet and the stock this
In the operating utility sec- lack of it to be the root cause of
ground.
year has only been able to tion
continued interest was most of their social and economic
uuii,
c
troubles.
Forecasts Revised
come within
10 points of its
Summed up,

tern of

a

trialization and dencitgovernment
through financing,
programs
while neglecting the needs ot agri-

.

ESS

old

industrialization,

We doubt that

of the na-

urge

and for those

a.

sions, Smith, Kline listing but snapped back to a restocks products not in existence as spectable earnings report of
able to continue above- much as half a dozen years above $4 per share last year,

average
easiness

destiny lies

the price

.

industrialization and

foreign investment continuing to expand, despite temporary
obstacles, at an accelerating p^ce; ®and avers our national

business

to

comes

pleads for better trade treatment; sees

items

sturdy

the

are

when

industrializa¬

potential and actual problems, undeniable saccesses, and consequences of our trade policies which are held
to be short-sightedly injurious and inconsistent, insofar as
Latin American countries are concerned, and jeopardous to
our
own
economic welfare.
The international utility head
offers advice to countries on both sides of the Rio Grande;
reviews

tion

overall would be a

sion,

Foreign

Company, Inc.

Balgooyen's perspective of Latin American

Mr.

give it a rosier outlook,
pickup in

left to

Trade

W. BALGOOYEX*

Vice-President, American &
Power

omy. Nevertheless the heavy;
of and earnings such as the five¬ suppliers for this field, such
aluminum, a cent in lead and fold increase in profits on as Westinghouse and General
lrwon't hopn ivirticwith steel mills operating at.
quadrupled sales by Smith, Electric, haven t Deen parxic
less than half of capacity. Kline & French in a mere ularly favored ill the market.
Motors, too, were far from1 decade. The newer products Westinghouse i n particular
buoyant and Chrysler slipped developed by them have been had a hard time of it in 1956
to the poorest price seen for the secret of these vast expan¬ with a lone and bitter strike

2-cent

V

Thursday, April 3, 1958

.

.

And Inter-American

month for the stock market, quarter results will
be far
the highway construction ma¬
got off to a poor start this more comforting than
week with the list showing general run, the drug shares chinery which is expected to>
occur before the year is out.
reactionary tendencies that have had about as many fol¬
Utilities, which can't afford
even stretched to the drug is¬
lowers
among
market stu¬
sues
so
highly favored re¬ dents
any
other major to fall behind in their expan- •

:

.

Industrialized Latin-America

farm

THE MARKET... AND YOU
*

Chronicle

(1504)

culture, have learned that such

self-defeating leading,

a policy is

inevitably, to inflation, loss of
confidence and a drying up of the

sources of private venture capital.
i{ltp nf Growth
1 iaises Kate ot ^rowth
In calling attention to the actual
and potential dangers of forced
and indiscriminate industrializa-

peak in a group where
One thing that has kept the
averages were sliding . ■ In the m0re mature ind^a,
traders cautious is the rush prices at or close to the all- downhill with persistence, the
time peaks are common.
by some of the market letter
utility index was able to make Nation was a gradual evolutionary ^ons particulartv
the end
lads
who earlier had
pre¬
Foods Versus Capital Goods independent progress or hold process spread over sevemi gen- q£
Wal. n/That most 0f
dicted a recession low in the
with a decline of a penny or
^ratl£Ps' y^ever are unwillin" the new industries .have been
Food
items
were
also
first quarter or first half of
two. Preference in this group ^ leave a matter thev consider soundly
established and wellthis year to change their fore¬ among the more popular
ranged from those operating a0 vital to them na
that
will not be as
cast to the third or final quar¬ stocks
in last expanding areas, such
to a slow process of natural ,
the record
Using' 1945 as a
ter when the upturn could be great a disappointment to
as the South, to cases where g'^tLt8 thev cmfnot^Hord to
base- the general index of Industheir
holders
for
the
first
expected to start gathering
an issue was backward due to
wait 100 yea/s or 50 years. Their trial V™***}™
quarter as the capital goods external circumstances such experience during two world wars
strength.

"on.

sTnct

Wor^

/ J

wasn't

There

too

much

makers.

Moreover, consumer

expenditures for food have
held high despite the trouble
spots around. Borden, which
turned in a record-breaking
1957 year, not only is spend¬
ing more, on expansion this
few of these shifts. Then, too, year than it did last year but
the indices that had been ex¬ is busily enlarging in chemi¬
pected to be moving uphill as cal work and tightening up its
Spring neared haven't yet internal controls, seemingly
made the turn, including such oblivious to the recession. The
as
steel production, carload- shares, nevertheless, are sev¬
eral points under the peak
ings, auto production, etc.

unanimity in their reasons for
extending* their predictions
although the fact that some of
the first quarter reports are
to be even gloomier than an¬
ticipated, figured in quite a

of

Some
first

the

quarter

estimates

results

of reached in 1954 and its well-

were

sheltered

dividend

is

in

the

2&S

a^f™eo(

latter

issue,

threat

of

petition

The and the intervening years.of,de-

Mohawk.

Niagara

as

on

top

suffered

an
odd disaster nearly two years

a

in the
Mohawk contact with our American neigh- United States, while Mexico and
ai
nhS„t
nf bors can not but be sympathetic Brazil recorded average increases
Will handle
'ypout
with these aspirations. We know of 6% and 5.5% respectively. In
the Niagara Falls power de- that our own industrialization, the manufacturing sector, which
velopment output. Of more evolving out of a free enterprise reflects the major impact of inimrviPflintP ennrprn is a sub- economy and accompanied, as it dustrialization, the annual growth
immediate
cuiiwm
»
time

In

•n

i

has

already

been

dis¬

counted in issues like Wheel¬

ing Steel, St. Regis Paper and
Foster

Wheeler

which

been slashed in half
remains to be

seen.




have

pricewise

that

a

farm

which

were

group
recently
equipment sales,

by

wag?

late

t 1

lnciease

0£

a

balanced development

our

4.1

bles

were

far

more

imposing,

benefit to them, and to ourselves

national product in Latin
was
an amazing 6.1%

article
time

views

expressed

do not necessarily

coincide

with

those

in

this

at any
of the

during this 10-year period. These

increases in industrial production
and gross domestic product were
accompanied by a steady, but less

spectacular, increase in per capita
income in most of the major coun-

their friends and business part- tries; and in Latin America as a
Still, we can not help but. whole, and by a general rise in
be concerned at the price which living standards throughout the
some have been
liers*

paying for rapid

and

indiscriminate

industrializa-

area

fe

industrializa-

American

Latin

tion under state programs which don bl these postwar
are

[The

America

as

not

needs,

geared to basic economic

physical resources, or ii-

nancial capacity.
i_

**

covered

hnfh

1

.

.

Trad"

broad field

a

PanitaT

goods*
d

higher last year
"chlonicle"Jhey^e pr,es?nted Conference, New Orleans, La.
.Be ««hadfesikMv.5?wE&
before, now are as those of the author only.]

than the year

of

j

equipment f irms shares are no stranger to the
haven't been in the limelight
new
highs column, those of
in a long time, Allis Chalmers
Niutfum
vpt
tn
work
n
illusrating this in its narrow U w fif
back to the peaks recorded in
swing so far this year — a 1956 and 1955 when its trou-

informed

compared with 4.2%

0

Stantiai

range of only a shade over
three points. Yet the president

as

Niagara

^

4.

is bullish fodder. How much

eross

averaPe

Those of us who are in friendly

Falls.

agricultural and mineral
yield
class.
pessimistic. One better-than-4%
only was handed down late resources, was good for us; and
forecast put Chrysler in the Statistically, at least, Borden
last year which is expected to we believe that an intelligent,
red ink column, against $5.34 marketwise hasn't run ahead
boost this vear's earnings im- well-balanced program of indusof its prospects.
k
txt-u-1
•
trialization and general economic
profit in last year's first quar¬
portantly. While other utility development will be of great
ter.
Another
had
Jones
&
Farm

this

State^tomg themoststandards
P™sp«o<is
.^ L jod
do

ant was

p

downright

Laughlin showing pennies of
earnings against $1.89 last
year. And so on, which hardly

than three

or more

wiped out rity^and achieve.the international uct inpcreas'dg by an
of
rock slide at Niagara lecogmtion which is t en due.^ 51% each year for Latin America,

erating
by

8>4g%

was

times what it was in the United

of the|r pe0.
when an important gen- plej safeguard the national secu-

ago

;.fod

aTcom-

»*.

»

theymustm^^

averaged

growth

Lat.n America

o

the

of

public power com- m0re industrially-advanced counfrom the St. Law- tries, have convinced them that

Seaway,

rence

-'

g

but

incrcisps

th^ most

in

years has
embracing

and consumer

recent

spectacular
vears

cZtiZTd ol

have

page

32

Volume

137

Number 5730

.

.

The Commercial and Financial Chronicle

.

/

roads

Coal

In

Turning to other coal markets, expects
coal than

consume more

and Steel* second

,;

downturn.

in the next decade

ever

This

nation

is

taking

an

breather, called by

and

eco¬

some la

average

termed

it

to ;

more

-

1957

overseas

export

substantial new plant
as in the first five

*

logical base for future

a

en-

fail

By

The major changes which

direction, namely, that 1958

Before trying to

question,

see

will have

we

.

a

bit to the end

This position
represents current belief.
jn

assessing present conditions

before looking into the decade of
sjxties, it is well to remember
that the basic materials and de-

sense that these in-

.

would

upturn, though the timing

moved back

of the third
quarter.

^tomers tc^ay, are dej

an

was

close look at general eco-

a

°Fj '*®cr®fse ac""

ustries oyer wlhoseTor;tunes?

4iave

place in the nation's total

energy market in which coal is

a

been

ah along, though the
""ease

appears

Between 1954

,

to

There

decreases

rate

of

de-

a fs

^

^

sharply

many

receding

^

within

^

lead-

mesn* basic a»*fcco*itin-.

not continue its upwards secular
trend after the current breathing
andr consolidation

SaIeg

months_

economist, both within

an

technology,
r enlightened

uing prosperity. There is nx> reason to think that our econemy will

de- spen

and outside the government, has

of

gains;

utilitiea willDouble

Then

suppose

turn

we

to

,

the

case

question asked a short while ago
—to what extent in the next dec-

almost universally found it

ade will electric utilities continue

takfn his crystal ball from its

declining.
1956, for ex-

af ™ now.-to be the leading customers of the

ample, it dropped but 0.05 pounds. Is
Undoiibtedly, output efficiency is

to

recognize* that

~

a^fn^cT9n^trV!f"

be

and

population,,
marketing, aeumen^
ership^ all

*

,

ovef-entp h a'S i'Z-e'd—Ee-

sourcesv

very business* :andgovernr»ental

^

following:

substantial

,

the steel industryis

construction,4

^henthe^oal eonsumphave

still;

fewer

one

figure.

1.29 pounds to 1.14
pounds.

Changes in Coal Market
taken

seri¬

and

likely in the other

coal.

nomic trends, for the demands for
electric power and steel, our

of

Of course,
efficiency of outpht is a
function of the age of the

ergy estimates.

recession and by others a setback
in our rate of
upward progress.
Tew
have

our

to take

an

years

nomic

ous

took

plant and^f
the state of the arts. The
greatest
increases in electric
production
efficiency with respect to coal con•; sumption have come in periods of

largest coal customer* will stabilize and

economy's future growth.

-

rbe

it

this

keyed to the tl,vl!ie.s ir} direct ratio to the sales mand
for a prosperous future are
efficiency rate, the utilities of industries which they serve,
present and while perhaps temwould have consumed about 213 rT.ls *s
^^io or less true of most porarily dormant cannot be
kept
million tons,, an increase of 56 mil^et P°wer ?nd steel are that
way very long;. This.fhet canlion tons,
approximately equal to Particularly lesponsive to other not bethe

-

cement

the economy undergoes and recovers from
present
All in all, sees coal
getting its fair share of

as

answer

a

17

1946

.

increase

fifth and

a

1956 this had fallen to 0.94
pounds,
a decrease of
27.2%. If 1957 con-

.

predicts that the electric utility market for

threat to coal."

.

1946

are

deliveries; by markets for

sumption had been

economist

industry will

dealer

between

1.29 pounds of coal to
produce
kilowatt-hour of electricity.

bituminous coal will almost double in the next twelve
years. RobinsonV survey of nuclear power prospects to 1980,
leads him to conclude that "nuclear
power poses no great

■

nearly one-tenth greater tion which

was

fourth of the latter.

Dr.

-

retail

1957 it

By DR. MYLES E. ROBINSON*

Director, Department of Coal Economics,
National Coal Association,
Washington* D. C.

was

than

Prospects (or Coal
In the Coming Years

(1505)

not a rolling ^readjustment. It
as evidenced

deeper than that,

coal

industry?

perts in

and

*

A number of

out

the

of

ex-

govern-

economic

machinery has
slowed

down

ket.

The

which has

little
^emphasis is
Dr. M. £. Robinson

ad¬

justments

9

coal

was

37.9%w Other energy reanxnraciie,

sponsibilities

re¬

spond
tive

power, 6.1%.

from the

same

causes

or

re¬

equally to the same nega¬
positive stimuli.
The one
factor of prime significance in
any
or

treatment of

our

temporary busi¬

These

ness

Table

omy, such as population resources,
and other long-trend

tive

setbacks is that the underly¬
ing or basic elements in the econ¬

factors,

There

are

last

the

rest

ment
:
.

who say that in

this

the

nation, and
also, has

world

far, too fast.

merits

closer

This

com¬

examination.

Marketing

pressures at the end of
World War II not only have ere-

ated

.

of

too

come

,

some

decade

tremendous postwar demand for goods and services, but
have fused the greatest
expansion
in

a

the

production and

of

use

natural
of

less

or

resources

goods

basic

directly

our

multitude

a

removed from

more

producing
_■

to

from

the

processes.
*

.

„

All

,

production, whether of goods
services, requires some form of

or

energy. It will be the purpose of
this paper to examine trends in
the national energy

markets, both

actual

and
anticipated,, to give
particular attention to the participation of coal in the energy field,

and

to review the prospects for
nuclear power in the coming dec¬
ade. The period of the 1960 s has
been

selected, as most forecasts
deal in blocks of five or ten
years
the basis that these longer
pe¬
riods of time permit short-term

areas

be

In

out.

the

this

not

have

for

this

is

*An

business

1960

setback

its

cycle,

An adidtional

rea¬

starting with 1960 is that
the next big census
year

address

Maryland

themselves

completed

before.

son

work

connection, by

current

should
if

to

by

Coal

Dr.

Robinson

Association,

Md..

before

Baltimore,

coal

and

the

noint

and

in

actually reversed. This
at

on

a

later

ln tne paper'

Tremendous changes have taken
place since the war in coal's mar¬

kets,

power

extent

will

to

which

continue

and

the

to

our

as

health

by
and political leaders.

•

economy
.
.

Just

last
of

December

business

the

con¬

thinking

was

tivity would
big

where
third

us

itself

reverse

between

quarters

the

of

second

1958,

ac¬

some¬

and

and

that

electric

this would be done with little

be

no

the

industry,

governmental

other action.

or

changes in either direc- the thinking

pump

or

priming

By late January,
still in the

was

portance

of

individual

these
in im¬

foreseen make sub¬

persons,
families.

consisting of 975,000

population, total electric

1946-1957

Best

1946

%

Elec. Utilities.
Steel Industry

68,743
91,891
Other Indust._ 121,991
Retail Deliv.__ 100,586
Cement Mills.
7,009
Railroads
110,166
Total

1953

%

13.7

24.7

18.4

103,309
104,434

24.4

96,586

20.1

68,393
8,073
37,962

1.4

22.0

____

Production

estimates

for

sumption, assuming

1956

rate

of

0.75

coal

pounds

since

1954.

Qn

the

of

%

38.1

power

27.3

sources, range from a low of 220
million to a high of 350 million
tons.
Forecasts usually fall in a

kwh, and allowing for hydro

25.6

22.2

89,860
36,237

11.4
2.1

21.7
8.8
2.1

8,821
8,401

2.8

2.0

___

and

that

from

_

541,595

466,400

*1957—Certain figures are preliminary.

fairly wide range which tends to
increase with the number of fore¬
casters. The most logical position
to

take

is

that

the

true

has
jt

the

the

competition
railroad

fallen off to the

js

now

mills.

below

This advertisement is not

501,308

an

The

tremes.

The

factor

of

of

Continued

on

offer to sell

or a

solicitation of

an

offer to buy these securities.

offering is made only by the Prospectus.

$20,000,000

of

market

General American

cement

Transportation

With the increased national

Corporation

highway building program already
scheduled, and possibly a further
increase

if

substantial

economic

pump priming is resorted to in
selected areas, the latter market is
bound to expand.
Railroad con¬

4!/s% Equipment Trust Certificates

sumption, certainly with the pres¬
ent motive power
technology, can-

(Series 57)

due

April 1, 1978

not
be
expected to reverse its
downward trend.4 While the 1957

retail dealer market for coal

was

only 36% of what it was in 1946,
the railroad market had fallen to
less than 8%. Looked at another
way,

OFFERING PRICE

100% AND ACCRUED DIVIDENDS

in 1946 coal used by the rail-

TABLE I

Copies of the Prospectus

Coal's Participation in the Competitive
Energy Market,
1946, 1952 and 1956

(In trillions of Btu's)

may

% Increase

1946

Bituminous coal
Anthracite

Petroleum
Natural

_

•

gas

——

_

Water power

23,565
13,110
1,369
4,871
2,769
1,446




be obtained in
in

the

any

State only from suck of the

Prospectus and others

as

lawfully offer these securities in such State.

% Increase Over

1953

Over 1946

1956

26,465
10,971

12.3

—16.3

897

—34.5

602

6,934

42.4

6,049

118.5

1,614

11.6

1946

29,939
11,338

•

1953

27.0

13.1

—13.5
—56.1

—

7,729
8,454
1,816

'

Kuhn, Loeb & Co.

3.3

—33.9

'

<

may

several underwriters named

*

Total Competitive—

58.7

11.5

205.3

39.8

25.6

12.5

one's

ex¬
own

direction from the middle should

490,000

NEW ISSUE

point where

that

picture

probably lies between the two

No adjustments have been made for stocks.

deep

from

fuels,

other

judgment generally dictates which

raiiroad and retail markets. While
both coal markets have faced

other

per

1957*

157,393
112,892

creases

inroads

coal

%

35.8

155,018
24.9 110,939
23.1
96,150
16.3
49,125
1.9
9,224
9.1
12,308

500,386 100.0 418,757 100.0 432,764 100.0 413,609 100.0
21,880
20,984
20,652
19,296
19,329
26,659
47,892
57,095

other

hand> there have been sharp dein
consumption by the

con¬

efficiency

an

groups.

gttion

new

Along with expected in¬

dustrial growth to meet the needs

consumer

Consumption of bituminous coal by electric power comPanies has moved from fifth place
*n 1946 to first place today. The
electric utilities have held this po-

stands

Unless fac¬

demand should range some¬
between 1,120 billion and
1,440 billion kilowatt-hours.

(In thousands of net tons)

___

of

States

stantial changes in the rate of
growth, the year 1970 should see
a population of some 204-,
million

Production of Bituminous Coal and
Consumption by Markets,

Utilities Biggest Customers
significant

United

172 million.
now

where

—

most

about

tors not

power

Overseas

The

f
continental

at

same

TABLE II

Canada

shown in Table II.

changes has been the shift

generaly made of the demand for
electricity based on population
growth and industrial ex'pansion.
At present the population of the

in¬

Thp 'nanpr"

in

P

extent

some

commented

on

adjustments

of

to

or

some

the

all

of

down

en¬

everything from steel and
aluminum
products
fabricated

more

decline

will

Qne

questi0n mark which confronts
is

economic

that the current downtrend in

General Economic Trends

what of ^ future?

in

competing fuels,
particularly natural gas, is quite
obvious. There is a good
possibility that this trend may be slowed

ergy in the history of modern civ¬
ilization.
The mosaic of demand
covers

shown in

indicated

as

its business
sensus

I,

crease

the

be

can

manner,

that is, the increase or
decrease in output in the 19461956 period. Here again the rela¬

are

sound.

pounds per kwh.

leading customer of

figures

another

xier

Auction to
.

the

and well-being of the

^onal fuel that is, p0ai the next
"
J-uei, uidi ig
Vs* LOdl, me next
CUcllt w"r

were,

2.0%; petroleum products, 25.8%;
natural
gas,
28.2%; and water

sult

bSng® given

eipeJts^hold

we

two

no

other

have complete energy
coverage,
the
contribution
of
bituminous

re¬

tively

that

contributions

troleum

ceived rela¬

"economic

oY

were:

anthracite, 5.8%; peproducts, 20.7%; natural
PAS
8%'flnH
gas, 11.8%; and wabrnnwpr fi 1
water power, 6.1%.
By 1956, the latest year for which

factor

one

The

fuels

appreciably.

April 2,1958

page

28

The Commercial and Financial

18

Chronicle

.

Thursday, April 3, 1958

.

.

(1506)
ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

COMPANY

CANADIAN PACIFIC RAILWAY

Directorsthe Shareholders (Abridged)

Seventy-Seventh Annual Report of the

k Income

?

have the honour to

Your Directors

report of the results

present herein their

and developments of

the past year.

development
of
in the forces
of expansion which had been so strongly at work in the
economy during the preceding two years, and this was
of progress in the
Canada. However, there was a lessening

1957 was another year

results

the

in

reflected

of

operations

the

of

your

Company.

statutory rates. A factor contributing to the decrease in
volume was the strike by locomotive firemen in Jan¬

Rate increases added

5% to freight revenue.

budget control and the benefits
arising from continued modernization, the ratio of net
effective

Through

held close to that of
the previous year. This was achieved despite the smaller
volume of traffic and the incidence of employee welfare
costs, higher wage rates and increased material prices.
Net railway earnings were down $3.1 million and the
return on your net investment in railway property was

earnings to railway revenue was

only 2.8%.
It

Supreme

of Canada from the judgment of the
filed by your Company in concert with other

Court

Board was.

railways affected, on the ground that by
increase in the permissive level of earnings

Account

Net

Earnings—1.

Other

rejecting an
of your Com¬

the Board had failed to perform the duty imposed
it by the Railway Act to fix, determine and en¬
just and reasonable rates and to change and alter
rates as changing conditions require.
The application
will be argued on March 10.
V '

.8

—:

-

!-

:

of

its programme

.

Net In co me I —_—J A

earnings

Company joined with other railways in Canada
August 30, 1957, in amending their application of
May 1956 to the Board of Transport Commissioners so
as to request authority for a 10% increase in the general
level of freight rates in lieu of the 4% remaining to be
disposed of under the original application. In hearings
before the Board, your Company stressed the necessity
for having the permissive level of net rail income in¬
creased to allow a return on the additions made since
1947 to net rail investment.
In a judgment issued on

that your
on

December 27,

1957, the Board authorized an increase of
of rates, effective January

3.6% over the prevailing level

15, 1958, but rejected an increase in the

permissive level

Dividends:',"

to provide for the

and

a

maintenance

expenses.

;

:

3_'.

Account

f#r

Balance

of

Income

for the: year

*

*

•

Account

-

,

Gain
=

on

of

Redemption

"

v

million lower than in the pre¬

miscellaneous

and

"

■.<

amounted to $46.8 million, which,

Income

Stock, left a balance of $22.7 million

Atlantic

of

Income

The

and

values,

,

items—————————

1,259,493

over

book

ber

December

31,

1957,

as

* •

-

-

$487,320,647

Balance Sheet—

per

after
^

Ordinary

of your

preceding 1957..

years
v

at

$38.2

'

million,

$3.1

<

.

'

;

>

at $488 million, was $18 million,
or 4%, lower than in 1956, partly as a result of the strike
in January;- Freight revenue, although including $20
million from increases in freight rates, accounted for
$15 million of the decrease. An increase
1956 was effected in passenger revenue.

HIGHLIGHTS

were

.

Revenue,

Railway

<4?

earnings,

million, or, 8 %V below the previous year. The ratio of
net earnings to gross revenue was 7.8%
as compared
with 8.2% in 1956 and an average of 7.1% for the five

the year ended Decem¬
-

Railway Operations

„

railway

Net

available for mod¬

W{.

31, 1957:

(Balance)

Income

Retained

Stock and

Retained Income Accounts

3/

2,853,490

a'-/

34,340,778

ernization and other corporate purposes.

Company show the following for

,

7,561,504

vious year.

Net

•'

_$ 22,666,291

Company——

Railway

properties

6f

"

-

•

■' f':.V «";;_
Stock

considerations received
sales

for

'

and Townsites

.3 'J».

Debenture

North-West

Excess oi

'

V':.:..

..

ended December 31, 1957-1

£i;300,000

and

:

.y

"

,

Net Proceeds from Sales of Lands

..

providing for dividends of 4% on Preference
dividends amounting to $1.50 per share on

24,119,433

$ 22.666,291

Retained Income Account

-

Decreases were widespread but were par¬
ticularly marked in dividends declared by The Consoli¬
dated Mining and Smelting Company of Canada Limited
and in net earnings from your steamships, '"■'■-•f: ty.

—33,; 21,090,379-

(Balance), December SI, 1J:56——3—-$452,979,869

Retained "Income

$119

realized in transportation- expenses
reduction of $8 million is being effected in current

\

$ 3,029,053

to Retained Income

Balance transferred

14,901,935

$ 46,785,723

VV:'V

Stock!„_

.:;3v Ordinary Stock—1.3.

being

are

annum

61,687,658

3_:

3—

—___1——1——T—

_

■v

Preference

million, (including
$31 million for the purchase of 154 diesel locomotive
units. It is estimated that through the investment made
to the end of 1957 in diesel locomotives and facilities,
totaling $176 million, savings of some $32 million per
for

accounted

plant

23,441,276
$

Charges-

requirements of modern business and of the expanding
economy, your Company undertook capital expenditures
in the amount of $135 million. Of these, additions to your
railway

38,246,382

-

—

Income-——

Fixed

force

furtherance

.-449.319,097

_

..

upon

In

.8487,565,479

——3——_3

Railway Expenses

appeal to the

17, application for leave to

On February

Other Income was $6.6

in view of the prospect of inadequate

was

by

ing the application, the increase was suspended
order-in-council until May 1, 1958. '
:'5;7':

Revenye:3L—1_31—

Railway

pany,

second highest in the history
of your Company having been exceeded only by that of
1956. Freight traffic volume as compared with 1956 was
down 10%, with over half of the decrease having oc¬
curred in grain and grain products moving under low
Railway revenue was the

uary.

On petition by the Provinces oppos¬

of net rail income.

.

of $814,000 over

traffic volume, measured in ton milbs, was
The principal decrease occurred
in the movement of grain and grain products which, by
reason
of reduced export demand, declined 16%. De¬
creases in traffic volume were prevalent throughout all
Freight

Increase

Railway

505,262,393

$17,696,914

449,319,097

463,926,566

14,607,469

38,246,382

41,335,827

92.2%

91.8%

0.4%

30,034,463

$ 6,593,187

14,901,935

15,752,302

850,367

3,029,053

3,079,820

50,767

21,090,379

24,379,013

3,288,634

22,666,291

28,159,155

5,492,864

487,565,479

$

Railway Revenue
Expenses

$

general commodity groups including agricultural prod¬
ucts, animals and animal products, mine products, forest
products and manufactured and miscellaneous goods. In
contrast to the general decline, marked increases oc¬
curred in the movement of manufactured iron and steel,

•

Net

Earnings

-

3,089,445
"

Ratio Railway

Expenses to Railway Revenue

23,441,276

$

Other Income

$

down from 1956.

10%

Decrease

1956

1957

YEAR'S RESULTS

or

building sand, gravel and crushed stone.

ment

Interest and Rental Charges

Stock

Dividends—Preference

—Ordinary Stock

__:

Balance for Modernization and Other

YEAR-END

Corporate Purposes

•

•

1

.

moderate improve¬
the previous year in terms of passenger miles.
number of passengers carried decreased from

Passenger traffic volume showed a
over

While the

8.9 million to 8.0

million, the average passenger journey,

20 miles longer and the average num¬
per train was up 12%.
Patronage of
your transcontinental trains "The Canadian" and "The
Dominion" again increased, and the use of rail diesel
cars
was further extended.
Certain passenger services
167 miles, was

at

ber of passengers

longer

no

POSITION

by

justified

the

of

level

patronage were

curtailed.

$50,139,573

125,432,848

10,901,875

2,229,262,112

•

114,080,546

136,334,723

Working Capital

2,130,773,785

98,488,327

63,940,973

$

Investments

$

depressed business conditions in some areas.
of your Express Company, carried to

ices

Properties
Funded

-

Debt

156,085,000

144,133,500

___

and

The

net earnings

railway earnings

11,951,500

'

34,400,000

'

1

-

'

'

$ 3,900,000

10,357,644

$

11,290,160

Property and Other Taxes

932,516

'

•

'

Revenue

Freight

58,493,389

Revenue

per

Revenue

per

7,344,862

8,906,288

868,898

1.50c

1.39c

0.11c

2.89c

;

Passengers ^Carried

65,838,251

8,037,390

Carried

Revenue

maintenance

Road

expenses

were

up

only

1%

and

expenses were down 4%.
substantial decrease in steam locomotive

Ton

Mile of

Freight

Passenger Mile-

2.89c

Payroll

Average Annual Wage




90,499

89,720

$

$

322,226,843

$

3,591 $

779

$

452,758

3,566 $

25

322,679,601

as

72% fewer steam units underwent

heavy repairs but this was offset to some extent by an
increase in diesel locomotive repair expenses concurrent
a

rise of 25% in the average number of diesel units

in service during

to

___

a

the

year.

-

Transportation expenses were down 6%, and for the
third successive year the ratio of transportation expenses

EMPLOYEES

Employees, All Services

was

repair expenses

with

Total

which,

equipment and maintenance
There

of

;

statutory holidays and health and

TRAFFIC

Tons

,

including payments for additional
welfare benefits, added
$12.6 million to expenses, and increases in material
prices which added $3.4 million.
costs

wage

30,500,000

$

■

.

Expenses, at $449 million, were down 3%.
This decrease was effected in the face of increases in
Railway

Taxes

I

compensation for the carriage of

as

traffic, were down 12%.

express

TAX ACCRUALS

Income

principally as a re¬
unprofitable passenger train serv¬

Express traffic volume was down,
sult of curtailment of

railway revenue was reduced.

Substantial economies,

particularly in train fuel expense, continued to be real¬
ized with the advancement of the diesel programme, and
notable improvements were effected in service and oper¬
ating efficiency. In freight service new records were
established in average train speed and train load with a

resulting new high in gross ton miles per freight train
hour.

The

formed

proportion of total transportation work

per¬

by diesel power in the year averaged 72%

in

Volume 187

Number 5730

.

.

,

The Commercial and Financial
Chronicle

(1507)

19

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

freight service,r 83%; kv passenger service
yard service.
.

and

78%

in

v

Other Income

.

'•

*

eastbound and westbound and lower rates

on

Working capital, at $64 million,
~

Ordinary

revenue.

•

:

*■

*

.

•

lion'

costs

■■

Dividend

than

were-greater
A

revenue.

.1

'

VVv

the

'

V

'

allowances

for

tax

of

Your

charged
'

income,

sengers than

was

passenger-cargo liner specially designed for
both
North Atlantic and cruise
operations.
This
liner is
scheduled to enter service in the
spring of 1961. The
"Empress of Scotland", after
completion of 27 years
of service, was sold after
the close of the year.

in-

■

compared with 18.1 million barrels in 1956.

,

-

business

-

close

of

deemable prior to
on

,

'

amount

-

Ketchikan, Alaska, jointly with the Canadian National
was terminated at the
end of 1957; this
weekly service
continues as an operation of
your Company with exten¬
sion

to

Two

the

coastal

-■year.

than

in

1956.

This

decrease

resulted

from

redemption

of equipment trust certificates; conversion into Ordinary
j Stock of some of the outstanding collateral trust

I

the

I

5

j
j

effect

bonds;

of

changes in exchange rates on obligations
payable in other than Canadian
currencies; and a reduction in rent for leased roads
largely owing to the redemption of matured First Mortgage Redeemable Debenture Stock of the Atlantic and North-West
Railway

}

Company

,

as

on

which your

rental.

Company has paid the interest

or

after

February 1, 1981, plus in

each

redemption;

case

pro¬

vided, however, that the bonds may not be redeemed
prior to February 1,. 1973, by the
application of funds
obtained through
borrowings having an interest cost
of

less than 5%

per

loss of $113,000 in 1957
taking up profits totalling $1,545,000 from the
sale.
aircraft, buildings and equipment. There was a
profit
$525,000 in 1956.

of

providing
increased passenger accommodation at
lower rates and
cargo
capacity.
Introduction
of
DC-6B
"Empress" aircraft on the Vancouver-Terrace
increased

Expenditures for pensions amounted to
$21.3 million,
since 1952. These expenditures
comprised
portion of pension allowances paid
by your Com¬
pany, a contribution of $6.5 million to the Pension
Trust
Fund, and levies in respect of employees covered
by the
United States Railroad Retirement
Act.

and Van-

rise of 60%

a

couver-Whitehorse

the

^

In

a

report published

Commission

on

appointed to

!

;
i

\
;

Preference

with

the firemen's
'

.

■

the

year, compared with $3.76 per share on
at the end of 1956
-

Dividends

S

on

Ordinary Stock and for reinvestment amounted to
$43.8
million. This was equal to $3.11 per share on
14,066,271
shares of Ordinary Stock outstanding at the end of

13,949,169 shares

were

as

in

including an extra dividend of
$1.75 per share.

Ordinary Stock,

25

cents,

amounted

to

Land Transactions
:

Net
1957

proceeds

amounted

lion.

Sales

from
to

sales

of

lands

non-operating

and

townsites

$7.6 million, an increase of
$1.1

employees

included

effective

i

effective

on

June

ing

additional

organized

Balance

and

the

matter

was

referred

Board.

60,000

million

to

to

Granting of these demands
non-operating employees would

expenses.

Wage increases
other

of the Balance

made

in

the presentation
view to simplifi¬

Sheet accounts with a
cation and to conform with
accounting trends in report¬
ing of railway companies.
No revaluation of either
assets or liabilities is involved.
Total assets at the end of the
year amounted to
million, an increase of $36 million.




$2,553

the Air

be

to

operate

on

Bonds

and

and

Common

Sault

Ste.

that

railroads

in

in

all

add

transcontinental

General
of

Mortgage

the

Minneapolis,
Railroad
Company,

to $648,000.
Of this amount $128,000
repre¬
interest and $520,000 dividends. The
net income
Company in 1957, after provision for fixed and

contingent charges,

was

million.

$1.6 million,

a

decrease of $1.2

benefits
effective

for

cient to meet

with

United

settlements
States

were

reached

granted

by
to

other

changes.

Agreements

.

and Atlantic Railroad

Company in 1957

was

Company.
not suffi¬

contingent charges in full.
you

holdings of First Mortgage
Bonds,

General Mortgage Income Bonds and Common
Stock of
the Wisconsin Central Railroad

Company

$590,000.

This

dividends.

* The

was

comprised
net

$509,000 interest

income

not sufficient to meet

of

that

amounted
and

to

$81,000

Company in

1957

contingent charges in full.

Rates

were

two

years providing for general
increases totalling 9% by the end of the
first year,
health and welfare benefits on the
same basis as those

Reference

wage

non-operating railway employees and certain other

adjustments.

Duluth, South Shore

The net income of that

Income from

the

and

amounting to $167,000 was received
holdings of First Mortgage Income Bonds of

$59

Representatives of employees in each of
your major
with the exception of the Royal York
Hotel,
requested a 25%, general wage
increase, health and
welfare

from your
the

of

hotels,

reached

.

Interest income

'

line

$25

November 27,
1957,

of

Stock

Marie

amounted
of

The

Subsidiaries

holdings

your

end.

approximately

domestic

filed

was

Transport Board.

from

Paul

sented
•

Con¬

a

to

engineers, firemen and trainmen of your
Company who
employed on lines in Maine and Vermont.

to

will

paid

settlement

your

units

new

application

Income
St.

statutory holiday in addition to the seven
already established, an amount of 40 per hour
per em-ployee to be set aside to provide severance
pay, and
certain other changes. Negotiations
failed to bring about

in

Sheet

these

Income

an increase of 11%
plus 170
in all rates, additional health and
welfare
contributions by your Company of
$8.50 per month for
each employee, increased annual
vacations, one addi¬

tional

office

an

United States

benefits, became
statutory holidays

hour

in

on

year

with

12, unions representing the non-operat¬
served a joint request for revision
of

.

placed

constructed

air services in Canada

agreements to provide for

per

were

service
four C-46 aircraft
cargo-passenger service was

combined

and

were

of

An

became effective through the year.

employees

aircraft

million.

from

1; and

the

building and maintenance
at
Vancouver.
Six Bristol
Britannia turboprop and four DC-6A
aircraft, and two
flight simulators were on order at the

per

are

changes have been

to

cargo

completed;,

cost

-

1956, health

for

from

hangar

'

Company of $4.25

DC-6B

new

per month in lieu of health and welfare

with pay

acres

Certain

"

January 1, 1957; wage
non-operating and 5% to operat¬
ing employees, the latter including $4.25
per employee

ciliation

mil¬

your

became

by

and

during the year; conversion work
-

rate increases of 3% to

a

34,142 acres of timber lands and
of farm lands, the latter
averaging $10 per
; acre.
Contracts involving 9,310 acres of land sold
in
prior years were cancelled.
23,734

per- month

On November

declared on Preference Stock at
the
1956, comprising 2% paid August
1,
1957, and 2% paid February 1, 1958.
Dividends on
Ordinary Stock amounted to $1.50 per share,
comprising
75 cents paid August
1, 1957, and 75 cents paid February
28, 1958. In 1956 dividends declared on
rates

same

>

at $46.8 million, was
provision for dividends on

employee

Montreal, Lisbon

.

union.

•

.

received

by 28%
City-Toronto
Madrid; the addition of
Santiago as a traffic stop on the Lima-Buenos
Aires
route; and an increase in the frequency of certain
flights
in response to
improvement in the volume of traffic
offering.
;
to

Four

report provided for the protection and transfer
in a gradual manner of
the firemen involved.
Your
Companyr affirmed its intention to implement the
find¬
ings of the Commission and to this end
reopened nego¬

by

Stock, earnings available for dividends

'

the

tiations

well

was

Revenue from international traffic
increased
as a result of an
extension of the Mexico

enquire into the matter fol¬
lowing the strike in 1957, found that firemen are
not
required by your Company on diesel
locomotives in
either freight or yard service.
The recommendations
in

routes

travelling public.

February 4, 1958, the Royal

.

'

Lines
net

a

development, and construction activity in the North.
Coach service using C-46 aircraft
was introduced
early
in the year on routes
from Edmonton to
Yellowknife,
Uranium City
and
other
northern
points

annum.

.

,

had

and

Pensions

.

,

Lines

interest to the date fixed for

*

Net income after fixed
charges,
down by $8.8 million. After

Air

on

•

,

during the

deemed

In accordance with
agreements reached in
and welfare contributions

Net Income and Dividends

ports.

way

sold

were

accrued

.....

$850,000 lower

additional

fleet

•'

There was a decrease of 29% in
revenue from
domestic
services owing to the cessation of
charter operations to
northern radar installations and the
termination of
scheduled
services
in
Manitoba
and
Saskatchewan.
Revenue from the services
remaining showed improve¬
ment as a result of continued oil
and mineral
exploration

Wages and Working Conditions
were

certain

your

of

Fixed Charges

;

at

after
'

route

Fixed charges, at $14.9 million,

■;

-

calls

barges of

Air

from time to time, and if in part
of not less than $5
million, at
103.75% of the principal amount if redeemed on or
prior
to January 31,
1960, and thereafter at decreasing per¬
centages down to 100% of the principal amount if re¬

'

I

include

Your

than

proper¬

1

net decrease

a

maturity at the option of your Com¬
45 days' prior
notice, in whole

less

not

■

The agreement under which
your Company had
oper¬
ated coastal
steamship service between Vancouver and

at any time or in
part
in principal amounts

ties and miscellaneous sources
amounted to $5.2
million,
'♦•'a decrease of $1.7 million.
There was a decrease, in
interest from temporary cash investments
and a decrease
in exchange
credits, and no interest for 1957 was re¬
ceived from your Air Lines and the
Northern Alberta

t

the

the

cargo

■

year, Twenty-five Year 5%
Collateral Trust Bonds, dated
February 1, were issued
and sold in principal amount of
$40 million and were
secured by a
pledge of $48 million principal amount
of Consolidated Debenture
Stock. These bonds are re¬
pany,

of

Railways Company.

;

,

The number

interest, separately operated

resulted in

collateral, and an increase of $2,927,550 in the
Ordinary Capital Stock outstanding.
<

of

of

Seaway,

the

.

foregoing transactions

After

.

prospecting for, acquiring,
developing and operating oil and gas and other mineral
resources, and to manufacture,
transport,-refine and sell
their products, by-products and
derivatives.
Net income from

during

of $11,951,500 in funded debt, a decrease of
$4,437,000
Consolidated Debenture Stock
pledged
as

anticipation

opening in 1959 of the St.
operations were inaugurated
year between United
Kingdom and Great
Lakes ports with two small
chartered vessels.
Two
additional chartered vessels will enter
this service in
1958,
1

Convertible

it in the amount of

producing wells increased from 765 to 895. In order
your Company may be in a position* to take adj vantage of opportunities as they may occur, a wholly
-I owned subsidiary, Canadian Pacific Oil and Gas
Limited,
'
was
incorporated on January 3, 1958, with power to
the

$2,198,000

-

that

in

Bonds,

117,102 shares of Ordinary Capital

v

The

?

of

engage

converted into

Stock.

'
.

In

Lawrence

Collateral Trust Bonds and
$662,000
Convertible Seventeen Year 4%
Collateral Trust Bonds
were

dividend from

no

Trust

in any other post-war
year.
In December
signed for the construction of a third

was

new

equipment obligations amounting to
$8,254,000
$83,7,500 Convertible Twenty Year

Collateral

contract

a

discharged;

.

new

pleted

in

purposes

second

passenger-cargo liner "Empress of
England" entered service in the
spring of 1957 and com¬
a successful first
season, during which your ocean
fleet carried a
greater number of trans-Atlantic
pas¬

of $2.4 miladvances.

payment

<

Fifteen Year 312%
..

the

also lower and there

were

were

3!s%

tion fees, and

*

$5
Canadian

Equalization Reserve,
recording the amount
liability arising since 1954 from
taking*

depreciation accruals
by $12.5 million.
•
:

Serial

Net income from petroleum rents,
royalties, reserva¬
land rents, before provision for income
taxes, amounted to $8.4 million, a decrease of $831,000.
f Toward
the year end less favourable
conditions pfeI vailed for
marketing of crude oil. Royalties were re; ceived
from
production
of
17.9
million
barrels
as

.

Steamships

and

amount

of

~

were

Canadian

of $3 million

repayment

were

established providing
group life insurance
and hospital,
surgical and medical benefits for non¬
organized employees and for officers and
supervisors.

$50 million.

of

Stock

Plans

•

■■

your Air Lines.

;

as

of

excess

creased

in

million;..was down $3.2
previous year. Dividends from, your
holdings of Capital Stock of The Consolidated Mining
and Smelting Company of Canada Limited at the rate
of $1.35 per share amounted to $11,356,875 as compared
with a rate of $1.65 per share
amounting to $13,886-,625
in the previous year. Earnings per share of that
Com¬
pany were $1.83 in 1956 and $1.13 in 1957.
Dividends
received from your railroad subsidiaries in the United

States

*

amounts

Stock

reached with employees of
your Air
granting increases varying from 5% to
10% and

other benefits.

tax

cost

r

,

improvement

income, vat *$12.6

million from

1

Agreements
Lines

Finance

labour

1

Tax

capital

earnings from communication services amounted
to $2.2 million, a decrease of
$632,000. The increases in

i

the

Net

i

'

acquired

income

;

:

than offset by the cost of
wage increases,
benefits and changes in working conditions. »

more

employee

were

The
of

Net

enue was

in

was down

Preference

respectively, and Capital
Pacific Transport
Company in the

1

earnings of hotels were $97,000, down $706,000
fern the previous year. A small improvement in rev-

and

million*

,

■

•'

Stock

Pacific Air Lines

grain and

the increase in wage and material costs
exceeded the

as

after

year

*

Net earnings of
steamships, at $2.0 million, were down
$1.8 million. \ Freight revenue from your ocean steamships was adversely affected by reduced carryings both

increase in

during the

was $98: million.
The total of
railway prop¬
erties is not affected
by transfers from leased to owned
properties consequent upon
vesting of wholly owned
; leased
railway companies. The properties so vested in
; 1957 had a
book cost of
$60,330,537.

W

-

flour. Passenger traffic volume was higher owing
chiefly
to the entry into service of the "Empress of
England".
Operation of your coastal steamships resulted in a deficit

.

l-The net addition; to
Properties

retirements

Other Income, after income
taxes, amounted to $23.4
million, a decrease of $6.6 million from the previous year.

"

■

-

an

to

has

been

made

earlier in this Report to
increase of 3.6% in the general level of
freight rates
become effective January 15,

thorized

1958,

by

the

Board „of

Transport

which

was

au¬

Commissioners

.

The Commercial and Financial Chronicle

.

.

Thursday, April 3, 1958

.

(1508)

20

Company against the

applicable in
Canada to international, overhead and certain import,
export and related traffic, effective August 26, 1957, by
authorization of the Board of Transport Commissioners.

The

Effective May

fares.

Montreal

exception
certain special
1, 1957, commutation fares in the

ary

increased by 20% effective July 1.

were

in mail rates of 7% retroactive to July 3,

Increases

effective from January 1,
granted by the Post Office Department.

1950, and an'additional 4%
1957, were

in

Increases

Canada

rates

telegraph

on

11.4%

approximately

averaging

effective October 16,

use

made

were

replacements to communication facilities; $1.7

An extension to the television net¬

andy bringing to eleven the number of
this network.

/

v

essential

physical links
the paper work of

1958 amounting to $83.8 million.

tions for the year

117* diesel

for

for

1957, by authority of the Board.of

additional

more

applications
efficient operation.

Plans

designed

including

units

locomotive

in

delivered

500

2,350 freight cars,

and

lease

under

and

1957

'

at

-

j

?-

;

Officers, Employees and Patrons
desire

Directors

Your

employees
services

to

shippers

the

contribute

v

to

thanks

sincere

express

officers for

and

and

to

quality of their

high

the travelling public for

and

loyalty during the period of enforced

their patience and

suspension of railway operations in January, 1957, and
their

for

Canadian

of

patronage

throughout the year.

Pacific

services

;

;

For the

Directors,
R. CRUMP,

N.

advanced

were

to

t

appropriations for rolling stock include provision

The

for

by all levels of management.

appropria¬

approval will be requested also for capital

December 31.

.<

components;

construction of new trackage. Your

and $1.3 million for

communications network for processing on the computer
in Montreal, and retransmitted, in processed form, for

traffic in

message

inter¬

an

for your

liner; $2.4 million for addi¬

million for seven rail diesel cars and spare

the mechanized
handling of
your Company were
completed early in the year and the first full scale
applications of integrated data processing, using the
new high speed electronic computer, were brought into
effective operation across the system.
Information re¬
quired for operating, transportation, traffic, statistical
and
accounting purposes is now being recorded in
mechanical form at 64 locations, transmitted over your

effective Janu¬
duplex roomette and parlour car fares

1, 1957, and

as

authorized by your

These included $25.5 million

year.

passenger-cargo

new

Integrated Data Processing

sleeping car fares were increased by 7%

in Canada

inaugurated

and

the

steamships, of which $23.6 million was

ocean

third

service, also operated jointly with Canadian Na¬

Rimouski,

All

International

April 30, 1955.

National

stations served by

25%

increased by

were

jointly

of

tions and

service,

exchange

teleprinter

domestic field.

and

coach fares by 5% with

areas

operated

the

tional, was completed, linking Quebec City, Jonquiere

1, first class passenger fares were

in effect

levels

the

over

the

work

Toronto

and

to

appropriations
approved

confirmation

your

Meeting, were

Annual

last

Directors during

according to

addition

400-room

the

at

national service in 1956, was extended in July to include

transcontinental and

commutation,

of

building to

on a

work continued

17-story,

the

op

Canadian

with

end was 229.

increased by 10% and

C., and

of

anticipation

amounting to $34.2 million, in addition to those

Royal York Hotel in Toronto.

contracts by means of
which your Company is enabled to bid effectively for
competitive traffic, resulted in 108 such contracts being
put into effect during the year. The number in effect
Effective September

freight traffic and communi¬

a

Construction

Winnipeg.
schedule

Negotiation of agreed charge

at the year

on

In

accommodate communications and other departments at

States were made

railroads in the United

begun

was

Capital Appropriations

.j

Council in Chicago.

cations building at Nelson, B.

averaging 6% granted to

freight rates

in

Increases

Work

judgment of the Board.

"1

for public safety activities was received

from the National Safety

order-in-council, and to the appeal by your

by

increase

annual award

hearings, to the suspension of the

following extended

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

President.

to

Montreal, March 10, 1958.

Transport Commissioners.

•

Services

•

purchased during the year—the

154 diesel units were

diesel programme.

These comprised 113 diescl-electric

and

switchers

road

diesel-electric

39

CANADIAN PACIFIC RAILWAY COMPANY

start of the

largest number in any one year since the

and

;

General Balance Sheet,

diesel-

2

The remaining steam loco¬
Pacific Region were withdrawn

hydraulic yard switchers.
motives in service on the

diesel

shop at Calgary and a third stage of the
maintenance shop at Montreal were commenced.

tenance

of which

automobile

365

traffic requirements.
Twelve

rail

new

'

-

25,530,183

Temporary Cash Investments

modernized

were

cars

diesel

A'Vf;

V

20,794,613

Special

Accounts

1
Balances

-

to

"Dayliner" train

established.

were

21,213,017

and

Supplies..—

1.8

DEFERRED
GAGES

included the laying :;

new

and

relay rail, the installation

AND

miles

and

the

reballasting

equipped.
system

block

signals

bringing

road,

of

miles

535

LANDS

commenced

13,952,943

3—

CREDITS

85,118,790
3.467,579

LIABILITIES

DEFERRED

MORT¬

DEFERRED

8,322,807

AND

PROPERTIES

AND

RESERVES:

9,289,875

FUND

on

84

DEFERRED

so

Prepaid

installed

centralized traffic

a

on

the

that part of

your

control

Unadjusted Charges—$

Unamortized

main line

5,151,028

13,188,540

DEBITS:

and

."_$

Credits

Deferred

INSURANCE

total mileage

were

3,214

to

Installation of

was

12,508,390

—————

Liabilities—,

$

ON PROPERTIES—.-,——

UNSOLD

of

Automatic
of

49.933,364

40,459,358

Tax

track.

Current

Other

of";

ties

million

PAYMENTS

Declared

Dividends

Receivable—24,238,027

$149,059,703

of

653 miles

_*$

w -'

The track replacement programme
of

Wages

and

Accrued ——_—9,624,093

Taxes

the number in

service at the year end, and five new

Conductors'

and

Accounts

Material

your

43

services

Payable

Accrued

4,817,905

Deposits.

Agents'

for

Oc'ner

added

were

cars

bringing to

train, fleet,

passenger

CURRENT LIABILITIES:

In addition* 300 refrig¬

2,884 were box cars.

and

erator

^

^

Cash

freight train cars placed in service totalled 4,884,

New

LIABILITIES

ASSETS
CURRENT ASSETS:

An enlargement of the diesel main¬

during the year.

December 31, 1957

Discount

Debt

...

13,188,540

—

4,914,092

3,189,822

■

_

Reserve

Investment and Other Reserves,-...

Funded

on

Equalization Reserve.—32,850,000

Insurance

4,120,934

56,103^660

between Montreal and Toronto that is single track.
7,310,756

terminal

Passenger

modifications

carried; out

were

1

•,

|

at

Calgary involving rearrangement of track and
.

struction of
!.

A
of

59

platforins, ia tunnel and

a

signal

;

towei!

operated

power

under

one

switches

associated signals

and

Two vertical

Other

were

construction for

the

a

'

'

,

•,

Preference

"•

•

October

i

Hotels

"

:

J

Steamships

of approximately half
line, and yard and station

Company

your

mass

operations
in

at

were

the"

terminals,'has

increases in

coordinated

Slock

351,656,775

—

Stock

37,992,349

——

Retained

10,075,224

and

—:—78,973,335

Grants

Income

487,320,647

^Balance),

1,093,200^)27

2,229,262,112

inaugurated

a

common

proven

very

$2,552,768,636

$2,552,768,636

S. J. W. L1DDY, Comptroller

•

successful.

,.

.

the

tonnage of traffic carried
.rail-highway
trailer-on-flat-car

AUDITORS'

services operated by your
Company in Eastern Canada
and with your trucking
subsidiary in Western Canada.
A contract has been entered into for the
acquisition of
a
51% interest in Smithsons Holdings Limited, which

PACIFIC

TO

REPORT

SHAREHOLDERS

RAILWAY

related

financial

the

business.

t

COMPANY:

have examined

We

THE

OF CANADIAN

company wholly owns Smith Transport
number
of
related .companies in

the

General

above

Balance

Sheet of the Canadian Pacific Railway Company as at December 31, 1957, and

all the information

explanations

have required.

in the circumstances.

Limited and a
highway transport

During the

Ai?

the

year, 572 new

In

manufacturing, warehousing

of

them.

The constant endeavour

*

■

-

*

—

r

'

-

of your Company tft 'eliminate
provide safeguards against injury continues
meet with
gratifying results, and a fourth consecutive

our

tests

opinion

statements,
of

accounting

to

records

and

other

Sheet

and

and

we

supporting evidence and such other procedures as

General

Balance

Our

examination

considered necessary

related financial statements are properly drawn up so as to present fairly

the Canadian Pacific Railway Company at December 31, 1957, and the results of its operations for the year

'

PRICE

Montreal, March 7, 1958
I'M.

we

,

the

1

k

.

i:

hazards and




and have obtained

according to the best of our information and the explanations given to us and as shown by the books of the Company.

then; ended,

your

serve

such

the financial position of

iriku^n^> businesses

lines

constructed to
■j

included

:

were located on or adjacent
railway. Of these, 174 required
industrial trackage and a total of 37 miles of
sidings was
to

•

.—137,256,921

Stock

on

Donations

94,944,283

Other Properties

piggyback service between Montreal and To¬
This service, which combines the
advantages of
movement by rail with the flexibility of truck

There

,

66,159,833

carrier
ronto.

292,548338
.

.

Premium

changes at Adirondack Junction.
In

i

52,813,638

.

includes diversion

mile of double track main

•

•

Ordinary
Communications

144,133,500

■

;__..$2,004,G69,134

:

__

• -

SHAREHOLDERS' EQUITY:

St.

Lawrence Seaway Authority at the location where your
railway line crosses the seaway canal near Montreal.

Related work

'

;

STOCK

DEBENTURE

36,131,521

—

136,334,723

j

complete with signal inter¬

:

.

100,203,202

— —

Companies

Railway

under

if,-

.

.

,

DEBT

PROPERTIES:

*

lift bridges

locking facilities

Controlled Companies.

U

operator to govern all train movements in

the Calgary station area.

s,

INVESTMENTS:
FUNDED

¬

relay type interlocking system places the control

new

,

new

con

878,196,192

PROVISION FOR DEPRECIATION—.

*

*:

j,

•< >

«i

*

A

1.

.

4

t

1

J

i

.

„

,

/

I

WATERHOUSE

\

-

,

t

.
_

^

&

CO.

Chartered Accountants.

*■

Volume

187

Number

5730

...

The Commercial and Financial Chronicle

(1509)

NYSE Members Voting on

Higher Commissions

Governors of N. Y. Stock Exchange propose
stock brokers' commissions averaging 13%.

expected to complete their voting
Keith
New

increase in

an

this proposal by April 3.

on

Funston, President of the $2,200, and by $4 for each transStock Exchange,
an- action above $2,200.
that

had

emors

the

Board

approved

Gov-

of

On

amend-

an

ment

a

Exchange's
pro¬

vides for

few cents to $3.

for transactions

in

There

more „

commission
iission
nssion

""minimum

mission

would

result

in

in

13%

each

sion

The
rate

new

schedule

will be submitted
immediately to
the
membership of the Exchange
for a vote.
The balloting is ex-

pected to be completed
1958.

on

$75

of

from

100

considered'mandatory

rities traded—thus,

that

this

or

accept

or

proportions:

should

receive

ww

Rising Costs to Blame

*

Mr. Funston said that
the proposed increase in minimum
commission rates, which
would be the
first change since
November 1953
and the second since
November

the teacher

ricular

shortage. How
is

your

<.1nn

-AMA

based

was

com-

G 'Dr°

lems?

erating

and

pot

or

unsound

necessarily

My
say

so.

Irving

j;

no^

cannot

be

Greene

forget

put

line

an

and

iike

ereat
great

a

work
work

of

owners

(As

Mutually

are

have

with

friends

-

and

*

heavy

spending

mortar, make

more

on
«« ;•

A.

a

Greene, Julius Golden

and Robert M. Topol are partners.

Wm; B.

takes
takes

art
art,

dinner for employees and
in the trading fraternity.

Irving

their

tim(; ,to P«t together; it takes

finding their tax load your

than they can bear.

more

Greene

Company, 37 Wall
Street, New York City, on April 2
celebrated its 28th
anniversary

children

education added like parts to a
car* Education is a process of ro¬

average New

A.

and

educational

that

on

of

expenses

remain of the budget in the

re-

Chappell in
Campaign

N. Y. Fund
William B.

ident

of

Chappell, Vice-Pres¬

The

First

Boston

vestments

firms

venire
bricks

economical

of

section

the

York Fund

1958

.

for

:

private

Greater

statistical

„i11Q

$100 to $1,999—1% plus $5
$2,000 to $4,999—i%% plus $15
$5,000 and over—1/10% plus $35

services.

study prepared by the
Exchange,
Mr. Funston
noted, showed that
the net profit before income
on
securities commission

the

in

fashion

accustomed to

ask

me

could

you,

custom-built

to announce that

afford

you

automobile

at,

during the past

year

Sun Life representatives sold

been

in the past! There
changes made. Let

must be some

For
odd
lots
(less
than
1Q0
shares in stocks tradcil in 100 share

have

we

The Sun Life of Canada is proud

a

per-

haps, $20,000. Your town can no
hi the above ranges, the more afford a custom-built school!
commission is and would continue If our Federal Government ofl'ito he $2 lower per transaction.
cials really want to help in this

taxes,

business unbs)

about

through the

40%

from

end of 1956.

1954

This

oc-

curred, he said, despite increased

The commission revision in 1953

volume and rising

cflsis, they will stop talking subsidies for education and, instead,

securities prices authorized, for the first time, one(in the period covered) with con- half the
regular commission for
sequent increased gross commis- so-ealled round turn

sion

Final

111 dcsigiuiig prefab schoolhouses that could pe mass pro-

transactions

income.

yet

completed

figures

available,

for

1957

within

applies if the

not

are

30

days.

same stock is

duced

This

bought

a

loss,

less than

or

296 firms indi-

some

a

their gross.

"A

5% return, on

odd lot
the

recent

analysis,"

Mr.

Fun-

ston

said, "also reflects the efforts
of member firms to keen an effective control
over
costs.

are

P1atrft,etsk?ne how

^ch thev^can affordfor

in ™und b-trn transactions,

revisio!i

calls

^as?c scppolhouses that

—

^nd whfcl^coul^be
£a*ted eLewhlre u^occasio^ de™°^d rnmmnniff^
eoiL to
^aw tn W
f.aCk in
baYe

he

continued/but ™d sold within 30 calendar days.
The proposed revision changes the
cate a further decline.
Some 58% 30 days to 14. calendar days.
In
of the
reporting firms stated that P^ce of the present $2.50 charge
their commission business showed tor a round lot and $1.50 for an
reports from

they^can^atford

the

round lot and $3 for

$5

for

a

The new schedule also increases
fl°or
brokerage
and
clearance

A

amounts paid by one
efficiency of operations, member to another for executing
over-all cost of

average

ducting

con-

securities commission
business increased between 15 and
a

snd clearing

as

Members

have

New Look

two

weeks

^

their

own

operating

prob-

about 20%.

"The

by

v.

-

tended

another

two

weeks.

,

.

elementary

^

^

lying idle for three months

anc^

have

the

of

to

pupils compared
it might serve is

mer

total

nomics.

In

for

many

with

the

poor

ing

A

today,

the

eco-

privately

en-

seats

allowed to cool off.

Board

are

Space is at

con tin ue

to

quality

the

have

come-

provide

the

everywhere.
assets.

a

expect, a modest
over-alL increase/in
commission

rates is essential."

Based

parents

they

Three With Daniel Reeves

to

100

on

*

-

Shares

Or

an

Urman: and

,

.

The

based,

proposed

new

schedule

is

Stuart

,

P.
.

Kastncr
,,

_

have become aftihated with Dan-

at present, on the amount iel Reeves & Co., 398 South Bevof money involved in a transaction erly Drive, members Of the
New~
of 10Q shares, or an.odd lot; v; ,..
York and Pacific Coast Stock
:

as

Briefly, ft' increases by $3 the changes:

minimum ' commission
round

with

lot

or

money

odd

value

lot

for

each

transaction

from

$400




your

town

already,

viously
Mr.

?ne-session, nine-month

with

Urman

Kastner

was

McCormick

was

with

to Weston & Co., Inc.

pre-

&

Daniel

Co.
D.

life

have always done it

%

any

will

probably

change in routine.
of the

ing is

that way!

a

:

one

Tomorrow, next month

or

compensations of teachlong vacation. They will

and children

in the years still

the rewards

reap

full

of man's valuable

Sun

Life

in

insurance

times
sold

in

?

*

of today's

off greatest need.

1957:

•

•

.

$917,737,287

Paid to policyholders during 1957: $155,111492

.Total policy benefits paid since-organization:

$3,295,955,574
....

Policyholders'

dividends

in

1958: "$34 million.

SUN LIFE ASSURANCE' COMPANY OF CANADA

oppose

After all,

deserve

is the -tremendous

men, women

Life insurance is

insurance, brings
New

.

"Teachers and Money

Teachers
one

.,

representatives

Insurance in force at year end: $7,749,499,986

sacred thing
but the
onjy sacred thing about it is that

is a very

we

Ex-;.-

Mr.

program

Life

foresight through the security and protection which

talk about running school

we

continuously, perhaps staggering
(Special to The Financial Chronicee)
vacations, and even operating SatBEVERLY HILLS, Cal.—Donald
urdays. All sorts of reasons are
T. Brock, Spencer B.
Hiatt, Ervin going to be given why a five-day,
J.

Odd Lot

in

when

Sun

greatest importance

distant,, families will

hue and cry from

p ublic

of service

Of

good which it will bring to

never

felt," Mr. Funston majority of those voting must in- premium, and they know how to
added, "that if member firms are dicate approval for the changes to use it
to operate on. a
healthy basis, and become effective,
I can hear the
with

life insurance—an outstanding achievement

which

credit.

dowed institutions of higher learn-

ex-

new

higjh

average

school catering to but a few sum-

voted within that period, the time

for balloting is automatically

.....

g^hool

Meanwhile, other non- approve or disapprove. If a mamanufacturing
industries,
faced jority of the membership has not
with

Education

In

To have the average

in the

the increase in

1957.

lems, found their costs rising

schooL

Needed

commissions charged the public.

16% from January 1954 to the end
of

^tiansactions

same proportion

a

tor building
house; then sending their a school
housG- then sending their building
committee out to buy the best
an odd lotthey can afford.

for

Despite rates—the

increased

New

campaign.

a

The annual income and
expense

declined

Cor¬

poration, is Chairman of the in¬

^

on

not

search

longer day

nonsense.

In
1952, we were short some
312,000
classrooms.
The
figure
steady in- 1,400 to S'2'W9~l,lus 48
probably approaches 500,000 today,
$2,200 to $4,999—1%% plus $19
crease
in costs of
conducting
despite all the building already
securities
commission
business $5'000 and over—1/10 % plus $39
completed. How are we going to
and a
corresponding decrease in
pay for these needed new school¬
Present
net return.
Rising costs include
rooms?
May I be bold enough to
Under $100 -AMA
(As Mutually
wages and salaries, office
space,
suggest that we cannot—at least
Agreed)
communications facilities and re¬

1947,

Company
Celebrating 28 Years

Already opour
public action between student and teachunder the new schools are consuming about 50% er, and student and student. This,

.

in¬
•

teachers would
11-month job responsi-

munity solving
production
Roger W. Babson

Proposed

(TnHnr

capable,

Greene &

country. School building commit- working; it takes -patience;it takes
Shows Schedules
tees simply cannot continue to a master to produce good results,
The proposed and present sched- spend the taxpayers' money as so I
say to school committees and
ules, for
each
100
i
next
shares, are freely in the next ten yeais as
(ViQgQ concerned
with
edneatinn
shown below:
they have in the past ten, for al.Cu conccraed with education,
ready in this slight recession home AV^gh your educational values, cut
1

luriner

/

good—into

School

'

V,'.'

most

committees could also help
(1) classroom make much better teachers
by
space; and (2) cutting out a lot
of the extracur-

charges for certain services Probably the lowest for the trans- England town; and I imagine this
rendered"bvfer o£ ®»y Und oi property." /
is typical of other areas across the

subject

is

an

mum

study

the

spiring, and devoted teachers.

college? This bility, a longer,work
day, and 0
is w hy two
longer work week like all other ;
national prob- professional
people,
they could
1 e m s
are
readily become more productive
reaching crisis and their income would be raised,

The

sch?d^eJV commissions

nohltIn/''

a

for both teachers and pupils.
every own
college
administrators

?chool'i

the average commission was just
about 1% of the value of the secu-

mini-

that

and

row

four persons is

as

shares

$50.

say

psychologically

attending Furthermore,„ if

transactions on the Exchange durinS a recent week. We found that

approved by the memwill be effective May 1,

The Board Mr Funston
renorted

also

to

a

now one out o1'

.

"To measure the over-all effect
of the new schedule," Mr. Funston
April 3, said> "we applied the rates to all

Changes in the commission

1958.

that light

comcom-

transaction

^creases in higher priced stocks,

schedule, if
bership,

the
the

in

year

top'
minimum commission per share is
increased to $1.50 from $1. These
two changes provide commission

pro¬

posed

transaction

less

revenues,

he added.
Funston

for

th? i3th

or

The; new schedule raises the
highest minimum commission for

commis¬

gross

structure

P° y°u realize that school-en- probably
IoIm®n S hfve mGreased this year week is
for

trans
trans-

charge remains
mutually agreed.
'

oi

about

for
ioi

nonsense.
Then, put
tax money where it will do

or

change in the

under $100—the

an

increase

no

involving $100
There is no chance in
mere
change in
cnange 111

rates. The new

rates

is

sti uctuie
structure

actions

ission

com m

G. Keith

involving $100

an

increase

;

The proposed1 schedule retains
the basic $6 mimmum commission

Constitution

which

involving $100

|0 $399, the increase ranges from

the

to

transactions

Taxpayers' Money

Prefab schoolhouscs, longer school
term, lengthier teaching
load, higher salaries, and removal of "extracurricular nonsense," are multisolutions advanced by Mr. Babson to solve
the increasingly growing crisis of
shortage of classroom space
'0
•••..
and teachers.•%;; ,v

-

nounced

.

tracurricular

By ROGER W. BABSON

York

your buildings and time,
immediately cut out the ex¬

and

your

Can Save

Membership is

of

use

]gow School Committees

21

Head Office

—

Montreal

*

The Commercial and Financial Chronicle

22

Thursday, April 3, 1958

...

(1510)

■

\

WESTERN MASSACHUSETTS COMPANIES
tARNt.VGS0 J1TSTORY

:

Public

Utility Securities

Electric Company

Companies

Companies

Massachusetts

Western

is

holding

a

1949

3946

twice since it was formed
accompanying table shows the company's earnings

6.44

1944

6.50

1943

5.83

1942

5.62

1.941

6.34

has issued common stock only

history over the past two decades.

•

'

Massachusetts
manufacturing is divided about evenly between durable and non¬
durable goods; only about 9% of industrial revenues are derived
from textiles. Paper is the most important industry served, fol¬
lowed by chemicals, rubber and textiles.
Sales to paper and
chemical companies are showing improvement this year while
sales to a tire manufacturer, and to producers of electrical equip¬
by the company in Western

served

area

machine tools,

V

;

•

2.41

.

<;

1939

7.09

1.60

1937

7.12

W

:

Beane.

E.
senior
partner of the
69
year
old
Williston firm,
Harry

Towle,

88.1

2.00

90.5

2.00

88.5

said "With Mr.

net

to average net plant plus materials and

(adjusted for hydro equalization)

income

operating:

we

supplies.

whole. In the first two
the company's own
(residential and commercial were up 6% and industrial
off 8%), the overall increase of 15% being due mainly to contract
sales of power to other electric companies.
as

aid,
accel¬

can

erate

our

A. C.

the

for

a

full

ties

and

are

confident

By JOHN DUTTON

capacity and part of the output of Unit No. 3 is therefore
being sold under contract to neighboring systems in gradually
diminishing amounts. By 1960 the Electric Company should .be
using the entire output of this unit to serve its own customers.
Tlie company may then start buying power up to 1965 when
another station may be built. The cooperative pooling arrangement
in New England permits the construction of larger and more

Investors

efficient units.

have moods

should

be

substantial

no

expenditures

for gen¬

commodity. The

W There are people who wish to

buying habits wiil save "his
valuable time, will create more

ers'

will

with

earn

strain

less

who does

attempt

on

part to show a

your

Tourtesy may be misconstrued and

<of these

erating equipment (other than for the modest investment in
Yankee Atomic Electric) before 1964-65. During the three years

the

1958-60 inclusive expenditures may total

idiosyncracies of investors that it
will pay you to catalogue and to

will lose more than you will
gain by offering invitations or
gifts. Study your people and be
careful and tactful when you en¬

remember.

ter

who has had 26 years
experience in the brok¬
erage
field,; said the first four
steps of the . expansion program
would be: (1J development of far
cilities and personnel to handle
more effectively both hedging and
M. Beane,

of varied

Others do not and any

'Christmas.

than

effort

and

>or

income

larger

a

country." ;W';; '

entertained, taken to luncheon
dinner, and remembered at

be

business

doing

opportunities -for

;

/

pay,

salesman who studies his custom¬

>

of the

tract others from all parts

for the same bonds. Prepare
yourself beforehand • when, you
make an offering to them.

and they

just the same as buy¬

of any other

ers

and

there

people

are

combina-

the

that

Williston tradition of

the

widely diversified firm of all, will
make it possible to serve our pres¬
ent customers better and to at-

Don't Lead With Your CHIN!

reserve

of

tion

in

branch

personal service and Mr. Beane's
background, gained with the most

unit No. 3 went into operation

Springfield Station, and at the end of the year generating
Capacity totaled 395,000 kw. (289,000 steam and 106,000 hydro)
compared with the peak load of only 256,000. While some capacity
is inefficient it is obvious that the company now has a substantial
at West

Thus

Salesma

ex¬

securities, commodi¬
operations.
"We

perience

customers

Last July the new 100,000 kw.

Our plans call

of his broad

use

months of 1958 revenues were up about 2% for

Securities

Beane

ex¬

pansion program.

same

utility industry

i

Beane's
Company's

Electric

Massachusetts

Western

of

2.00

&

Fenner

92.2

2.00

W 2.26

.

Lynch, Pierce, {]

104.7

: -WW

Merrill

from

90.9

2.00

WVW'V:
2.21 WW

WW

y

-

94.7

1.93

2.27

t-

84.7

1;60

2.17

1938

"'Ratio

1.60

1;

as

p a r

Mr.Beane

89.7

L76

>

*

e a ne

retired Feb. 28

73.0

;•

1)65

1.69

7.I8

vw

v.

83.0

1.95
-

1.89
,

87.0

2.00

i.84

B

senior

75.8
ner.

•

2.67

.

'

Alpheus C.

74.1

2.00

:/

have

Beane

&

Williston

R.

plans for expansion of
its
brokerage
and
investment
services with the admission of

95.2
#

2.00

-

6.94

1940

down.
Recent weekly figures for
as last year—much the same as

are

the

load were about

the electrical

for

2.30

8.90

1945

*

J.

announced

87.3

2.00
2:00

WW 2.64 V,

.

bonds and
The parent

The

and

7.44

-

8.18

in

ment

2.10

7.13

1950

78.4

2.00

:

v 2.70

^

1947

company

total

5.74

7.66

operating utility company has outstanding only
stock, and the overall equity ratio is 45%.

In the

2.29

1948

common

1927.

2.55

5.63

1951

currently developing "industrial parks" to attract industrial cus¬
tomers to the area.
The holding company is kept alive mainly
for the reason that it has outstanding $15 million 2.8% secured
notes due 1969—a low interest rate which could not be duplicated.

6.43

1952

67.6

2.00

2.96

3953

Co. and
which is

6.96

71.2

71.2

2.00

1954

company

owning all the shares of Western Massachusetts Electric
Quinnehtuk Co. The latter is a small real estate company

The

2.20
-

Beane Joins Firm

68.1

2.20

3.09
3.09

6.93

A. G.

as

Payout

$2.20

,*

1955

;

%

Share

per

$3.23

r 6.96

:

.

Share

per

6.66%

1956

Expansion

Companies
Dividends Paid

Inc. to riant1"

1957

By OWEN ELY

Western Massachusetts

Companies
Consol. Earnings

Western Massachusetts

Oper.

J. R. Williston Plans

V

Western Massachusetts

Western Mass.

only about $8 million per

of which about half will be available from internal sources.
Including $5 million bank loans about $16 million of new capital
will be required, and some common stock (about l-for-12) will

annum,

probably be sold in 1959.
'

1

Electric

is

the first company

Electric heating and cooling are closely associated

with the heatwhich is becoming increasingly popular in the South, but
the current Massachusetts program is not based on the heat pump,
but on ordinary "resistance" heat. The company lias no gas service
and is competing with neighboring gas utilities for house-heating.
Thus it is attempting to have new homes designed and engineered
lor all-electric service—heating, cooling and all other services—
as
opposed to the all-gas homes favored by the gas companies.
Many installations have been of the so-called radiant ceiling type
but the company has also been researching the possibilities of using
stored lieat. This would reduce the cost of electricity since a special
cheap rate would be given* to householders during the late night
period, when electricity would be used to heat a large tank of
water—which would furnish heat the following day.
Having a
111 ermostat in each room would also provide savings. The sales
program is going actively forward ancl a number of demonstration
homes are being prepared; 35.all-electric new homes have been
Completed in recent months.
pump,

'

The regulatory situation is considered satisfactory.

-

In the past

30 years

Western Massachusetts Electric has applied only once for
increase, which restored earnings to a fair rate-of -return
<sce table for history of earnings rate). Because of the recently

a

rate

Increased

rate

base, the current rate of return is about 6.26%
Compared with the average of 6.63% in 1957. The company has
recently been authorized by the Massachusetts Department of
Public Utilities to file

rate schedules to

new

provide fuel adjust¬

ment clauses for all classes of service.

The company maintains
the Only one in the country.
net income

of

for

1957.

an

Thus in 1957 $45,502

was

credited to

"adjustment for hydro equalization," compared

that amount in

with half
reserve

as

the

previous

year.

The balance sheet

hydro equalization amounted to $841,164 at the end

The fund has worked well since 1946 when it

V with $400,000,

started

was

and has been accepted informally by the

Massa-

chu,setts Commission.
Tax

deferrals

resulting

from

liberalized

depreciation

have

'

t

been normalized and credited to

a reserve;

this has been permitted

-by the Massachusetts Department of Public Utilities, although some
Mother New England states have ordered that such tax savings
-

should not be normalized.
•s

-

Share

earnings

the recession should

were

$3.23 last

year

against $3.09 in 1956.

return to

a

If

continue throughout 1958, the share earnings

Jflmay not exceed those of last year, it is surmised.
any

However, with

normal growth rate, the management anticipates

Iiigher earnings.
Western

Massachusetts

Ovcr-thc-Counter
stock.

Market.

At the recent

Companies
There

is

no

stock

is

traded

in

the

present plan to list the

price around 42, the yield based

on

the $2.20

^dividend is about 5!'4%, and the price-earnings ratio is 13.




Types

,

,

/this area of salesman
client relationships.

;

investors want to hear
"new" or "spec-*
They have a hankering to

Meeting

about something

an

...

speculative commodity -business;
(2) broader activities in the un¬
derwriting field; (3) establishment
of a municipal bond department;
and and (4) opening more branch of¬
fices,* initially in the New York
metropolitan area.

Obstacle

.

,

obtnin

a

,

If thev are bond

bargain

''These

,

?u wiU^lmiinate many obstacles aIld objections it you will
buyers, they wiil welcome a call study your prospects and customwhen you have made a particular :ers and make contact with them

Icial."

"will give
ganization
our

>

he
explained,
the well-rounded or¬
needed fully ta serve

steps,"

•;

us

maintain

to

and

customers

a

profitable operation. To cope with
purchase from one of your ac- rata time and place, and in such increasing costs, brokerage firms
Winnie
an
oetiip
nr
a
lhank and ,a manner as will be agreeable to must diversify and be equipped
to handle all types of security and
you can offer them
an
lot a bit under the crone
objections, I overheard this one, commodity transactions for their
lot a hit under the going market
™f**<$y$hc<:other ;(iay. A salesman had customers.
••

$d

even"

W

be

S^ki»S hof overcoming

l ,er mvesf°;Fs do not wishto unsuccessfully offered some distelephoned^too often.
They coulq nnunicinals to one of his

will resent it. Better to

maiLthem^customers and lib was complain-^circular or a memoranda of an jng ^o his salesmanager that his
attractive

issue

and suggest tlrey

_

icall you if they desire to

j

discuss it

iclxstoiner
,cause

he

turned

didn't

him

down

want to

pay

There

business.

(want

you

i mediately.
;

others

are

who

-to come to cases -imBe sure you make note

of these types and cooperate with
There

a

are

want

There

couple of months at a price that

centration of potential

New

Lynch,
Pierce,
Fenner
&
he was • director of the
Commodity Division and also or¬
ganized and supervised the firm's
extensive training program.
' In

Standing Committees

a

PHILADELPHIA,

Pa.

1938, Mr. Beane became the young¬
ever to
be elected a

The

est. broker

Philadelphia-Baltimore Stock Exrhanee

announces

the

of the New York Curb
Exchange,
now
the
American
Stock Exchange.

governor

auDoint-

announces xne appoint
ment of the following chairmen of
cnanSe

r

ever

Sunstein & Co.; Floor Procedure
—
S. Grey Dayton. Jr., Elkins,
Some security buvers are natMorris, Stokes & Co.; Member
ural born traders.
They want to Firms—George
E. Snyder,
Jr.,
buy
at
a
discount,
even
if a - George E. Snyder & Co.; Stock
quarter of a point less than what List—Robert P. Morrissey, Jones,
someone

else

may

be

that

willing

to

Cavenee, Roberts Forming
SAN DIEGO, Calif.—Cavenee

Roberts,
York

Stock

the

of

Exchange,

is

&

New

being

way.

Partners

are

Norman

C.

Roberts, who will hold the firm's

•

Miller & Co.

members

formed with offices at 625 Broad¬

Tague, E. J. Tague & Co.: Finance
—William Gerstlev, II, Gerstley,

each other's confidences in money

about

-

Beane,

.standing committees for the en.suing year: Admissions—Frank L,
Newburger, Jr., Newburger & Co.;
Arbitration—George E. Nehrbas,
to some people's homes. Some re- . Parrish & Co.; Business Conductsent this,
others do not.
Many Samuel K. Phillips, S. K. Phillips
husbands and wives do not share >&
Co.: Elections — Edward J.
careful

York.

Among other activities, of Mer¬

contjnue to send them data it may
do you more harm than good.
Be careful about telephone calls

Be

Beane,

rill

of

matters.

investors."

after
graduation
from Yale in 1931, worked with
Fenner & Beane, later managed
offices in Orlando, Cleveland and
Mr.

Phila.-Balt. Exchange

their securities

disclosing any information
may embarrass either one.

expansion," he

said, "will be 111 the metropolitan
New York area, where the Willis¬
ton 1 name
is
well - known
and
Where there is the greatest con¬

this can evade an objection that
in this case could have been more
of an excuse for not buying than
a valid reason for not doing so.

to

investors who have

'f

"The first office

as

investment,
who take
portfolios seriously. They want information and the
more you can send them the better. Others are impulsive, do not
care
to read or study and if you

•plan

organization."'.

some

you

are

quickly build a broader, stronger

would show him a loss, then he
wouldn't have to worry about it."
Sometimes a joking remark such

people who do
call at their
.home, or at their office.
They
prefer you to do business^ with
them by mail and telephone.
not

service, and facilities for
business on major ex¬
Beane added, .-"we can

changes,"

„

people who want you
to "warm them up" by chatting a
iwhile
before
you. start
to talk
are

has-an

department, a
investment ad¬

handling

desire

-

There

well-established

visory

on

and

'-WWV/.WW

already

research

excellent

the

practically every new ..tion that would ensue when the
to keep posted
bonds matured in about 10 years,
'on market changes very often. If His salesmanager replied, "That's
so,- and
their account warrants a cinch, why didn't you tell him
this attention and service, by all that if he bought the bonds you
means do so.
>
v
would buy them back from him in
issue

V

Williston

*"As

be-

Some investors want to be tele- /capital gain tax on the appreciaphoned

them.

hydro equalization fund—probably

a

you

Some

in New

England to announce an aggressive program to sell electricity for
house-heating to set up new rate schedules tailored to this purpose.

none

Following are some of the

Investor
i

Western Massachusetts

man

things.

Exchange membership, and Clark
M. Cavenee. Mr. Cavenee has been
active
-

as

an

broker in San
a

individual

stock

Diego and has been

member of the New York Stock

Exchange.

Volume

Number 5730

187

.

.

The Commercial and Financial Chronicle

.

(1511)

Savings Bank of Brooklyn, N. Y.,
it

Rammitt.'

Two

Bankers

and

OFFICERS, ETC.

REVISED

anciers
John

-

CAPITALIZATIONS

W.

Hooper,

President

of

The Lincoln Savings Bank, Brook¬

lyn, N. Y., announced the follow¬

ing promotions, effective April 1.
Ernest

W.

j.

formerly
Vice
President, ■ was
appointed
Comptroller of The First National
City Bank of New York on April
Redeke,

*

;

p.

morgan

co.; inc.,

&

resources920,956.147

Total

876,053,503

Cash

&

Tho

u

on,1

m s

'security
Loans

i
i

q r;q
t)

March
:

31

Mr.

-

'

p 6,

who retired

^ discounts

1^-997,163

guaranty trust co. of new york

Hp
e.

t h

in

•'•

Mar'I1' '58

^

-

d

e

Vipp
vice

•

dent

from banks

u.'. s.

undiv.

profits—

•

has

SOCiated

0

-

been

irving

as-

■:

„•

trust

* -

92,808,019

Mr.

attended Princeton

Redeke

University

in

tiftnsl
iionai

FoiiuHation

Pifv

1930-31

also- attended

stitute

of

Graduate

>

Na-

a

V YY

york

NEW

Dec. 31, '57

Mar.31,.58
v. ,

-from banks:

u.

$

y -

r

■-

Rutgers University.

In¬

Undiv.

■

7

ecutive

Committee

of

tired

Company,

New

York,

Total

Cash

member

and

re-;

tain

York.

'

Mr.

*

Baer

Bankers

Senior
ber

•••

of

the

Board

of

Vice-Chairman

/'

•!;

it:

y

MARINE

Executive

Bank
and

of

•

-

•

■>

A.

Andel,
the

due

60,

S,

U.

Loans

105,936,084

discounts

&

TIIE

Total

the

11,454,659
is

BANK

OF

He

President

in

V
BANKERS

elected

was

a

S.

a

from

U.

"curity
Loans

2,910.512.836

2,640,092.682 2,556,159,290
.

809,014,059

5.294,792

4,940,891

Comptroller of
Bank

of

the
New

'
has

Brock
..

,T

.

has

worked

the Discount

been

Bank

National

815.266,719

565.197,307

discts.

1,458,701,998

514,033.626
1,448,257,250

59,699.364

5G,439,887

if

with

since

the
1941

the Auditing,

in

Comptrollers Department.
GRACE

NATIONAL BANK

'•••'

-

,

if

"

Total

resources

Cash

Dec. 31/57

214,032,354 207,922,583

182,156^413

&

banks
U.

S.

Director

Trust

of

the

Co., New

:

_•

57,468,184

53,701,408

holdings

49,933,297

49,119,892

discounts

88,119.836

85,742.788

profits—

&

1,699.530

•

Trade

Bank

1,355,347

..7■*-

&

*

an

Assistant

Manufacturers

'

i-

•

Vice President

of

Trust

Company,

New York is announced

by Horace

C.

Flanigan, C h

a

i

stock

at

the

board

two
are

lire

40
on

March

Adams-Faslnow Co.
the

of

(Special to The Financial Chronicle)

LOS ANGELES,

Luigi Attilio Jaschi and

A.

Gianni Agnelli.
In

James A. Reeves With

of

20.

members

new

addition

to

Jaschi

was

his

Union

per

the bank's

general meeting

shareholders
The

of

declared

of

elec¬

board

Calif. —James

Reeves has become associated

tion,

with

Adams-Fastnow

as

Managing

Director

America

of

215 West Seventh

d'

designated

Company,

of

d' Italia.

Banca

the

Pacific

Street, members

e

change.

Coast

Banca d' America

d' Italia

e

was

an

Mr. Reeves

Stock

was

Ex-,

formerly

officer of Akin-Lambert Co.

post

r m a n

of the

has

1935.

Lorillard

P.

Assistant

Company

with

been
;

:

Hi

Adolph H. Baricevac, Manager,
Life
Insurance
Dept. has been

Reports Record Sales

ill

and
Chittenden

Trust

Burlington,

Vt.

Executive

the

announces

election of Horace U.

Earnings in 1957

Company,

Ransom, Jr.
ef¬

Vice-President,

fective April 1.
!j:

iS

lift

President

of

the

Massaquan

died

Bank

Na¬

March

on

30

%}
1

at

West Belmar, N. J., at the age of
53.

4

:S

First
Black

National

Ilills,

increased
stock

by

Rapid

its

from

City,

Dak.

S.

«\

effective

(Number

10,000

—

of

shares

shares,

par

$100).

1957

Net

Net
&

|

$203,280,417

,...$ 11,484,412

Earnings

Results per

1956

.$293,415,430

Sales

w

capital
$1,000,000

dividend

19.

the

common

$750,000 do

stock

a

March

of

Bank

HIGHLIGHTS

FINANCIAL

Robert M. White Assistant Vice-

$

3.78

4,519,758

$

Common Share:

-

Earnings

"

■

•

<

•

26.95

25.11

$192,202,969

$153,611,040!

Shareholders'Equity.
/

Current Assets.

Directors

The

of

Bank & Trust Co.,
and

the

Mutual

Current

Liabilities.

82,399,192

National

Trust

Co.,

St.

Bank

Louis,

Shareholders'

of the stockholders of

banks

The

and

merged

officials.

State

Banks

known

as

Bank

$ 57,333,334

86,674,232

81,438,885!

*..........

Long-Term Debt

banks, subject to the approval of
two-thirds

110,245,323

....$ 54,041,670

Working Capital

Mo., have agreed to merge the two

bojh

43,365,717

109,803,777

St. Louis, Mo.,

Security
&

the

would

Equity

Number of Shareholders.

26,976

28,557

6,591

4,949

be

Number of

Employees

Trust Co.

&

Under

with

the

the

70,000

Security-Mutual

plan,

Mutual Bank,
shares cur-

common

«ren^y outstanding, will declare
l5%

a

stock

aividend( thereby increasjng its outstanding stock to
80 500 shares
Security National
has 30,000 shares outstanding.
Following the Mutual Bank
dividend declaration, shareholders

We'll be glad to

send

Write P. Lorillard

MAKERS

OF

you a copy

of

our

illustrated Annual Report for 1957.

Company, 119 West 40th Street, New York 18, N. Y.

FINE

TOBACCO

PRODUCTS

of

both

would

banks

their shares

on

a

exchange

sbare-for-share

in

the

new

Bahk.

Security-Mutual then would have
110,500 shares and assets of'ap¬
proximately $87,000,000.
..I

if

.

Approval

H.

if

if

1, it

April
by Earl Hark-

President and

ness,

of

effective

was announced

Chairman

of

the Board of the bank. Mr Haythe
was
associated
with
Guaranty
Trust

Company

of

New

York

was

Newport,"

Newport,

bank.

open a new

Tenn.*

to

The bank has

a

capital of $200,000 and surplus of
$100,000; Chas. T. Rhyne is the
President and George B. Nye is
the

Cashier.
V

Mr.

Jebsen

joined Manufactur¬

was

assigned to the Bank's

representative
Since

January,

has been in

office

1956

in

the

his
position
Vice-President.

business

Mr.

in

of

the

Haythe
bank's

Robert M,

Jebsen

securities

charge

portfolio.

covers

Catharine, Chairman

of the Dollar Savings Bank of the

City
the
as

a

of

New

election

of

York,

National
was

Bank

increased

of

com¬

First

Fia.,

Leesburg,

from

$400,000

to

Victor

E.

effective

of shares outstanding—
#

a

Mr.

Ef.

Clinton

is

Corwin,

been named Trustee of The

#

>A

Vice-President

fornia

has
Dime

17.

Don A. Beecher has been elected

Zoeller

America,
it

March

50,000 shares, par value $10).

announced

Vice-President.

Central
.




in

be

mon

$500,000

,

Europe.

will

a

(Number

charge of the Bank's

Main, Germany which
Bank's

Mr.

'

'

stock dividend, the
capital stock of The

By

Second

as

London.

representative office in Frankfurt
am

1941 until 1957, when he re¬

signed

Trust Company in 1954 and in

1955 he

-

1.20

1.95

Dividends.

i

1.34

•

if

Bank, New York,

from

Board.

ers

►1

as

given by the Of-Haythe has been'
fice
of
the
Comptroller of the
elected an Assistant Vice-Presi-.
Currency to the "National Bank
dent of The Greenwich Savings
Madison

The appointment of J. H. Jebsen
as

*

Y^j&rk.

'

at

f

,

a

dividend

was

board

1953.

since

Junger,

basis for- stock

Government

Undivided

elected

was

186357,102,

from

due

security

if

Evans

NEW YORK

OF

Mar. 31/58

-

Loans

J.

bank

W.

Vice-President,

-

Department and the

Deposits

profits

a

the

of Israel, Ltd., Israel.

...

se-

Frederic

profits—

National

Mr.

holdgs.

&

Undiv.

.

89,091,904
264,822,760

Albert J. Brock has been elected

:

Vice-. Grace

S

3,006,901.024

and

share

of

d'

appointed

was

McGuirk's

the

August

Savings

"'

•

92.840,060

discounts 257,706,844

Dec. 31,'57

banks

Govt,

S.

-

holdings

&

and

due

been; with

587,842,052

148,874,787 194,156,062

Grace

v."'

—_

He

Mr.

over

value

York.;

TRUST COMPANY, NEW YORK

nd

Banca

Italia, Milan, Italy,

new

X

Dec. 31/57

Government

A.ssistant

1950v

resources-

Cash

YORK

31/58

due from

security

Mar. 31, *58

Deposits

Avenue

'

S

Total

of

Bank

d*

Assistant Manager at the Brighton
Beach office of the bank. He has

outstanding

NEW

480,396,672 517,762,329

and

banks
U.

Trust.

^

...

.

10,960,141

:j!

549,919,485

resources-

Cash

joined the bank's for¬
division in 1923 and
re¬

life.

100,501,780

281,953,189 286,286,429

profits—

Mar.

mained in the division the rest of
his

Dec. 31/57
" $

171,427,350 208,727,475

holdings

Undivided

in-

Andel

eign

CO.

Vice-

a

ivianager

Lincoln's

•

Government

security

sis

Co. of New York, died March 25.
Mr.

•'.

532,492,816 551,977,518
rY"
k"

from

Deposits

of

Bankers

directors
e

it

Puttre, appointed to
Vice-President,
will

Assistant

612,433,858 630,638,341

_________

Undivided

of

31/58
'■

resources—

Loans

President

+

^

TRUST

::

■

banks —/

Association, Calif.

Edward

-•

.

YORK
Mar.

Total

America, National Trusty

Savings

Chairman
of

board

*

Weiss, has been elected

the

of

Committee

;}{

MIDLAND

NEW

Cash'and

Board of Directors and Member of
the

■'!:

Julius

the

to

J.

151,026,083

423,811,136 399,216,332
12,614,366
11,841,518

1949;/Prior to that date, he was
Senior

i^
in

Street, opening in May

year.

Edward

as

holdings 173,676,498

mem¬

Directors

764,059,787 743,273,075

discounts

&

Deposits

joined the staff - oft
Company
as
a
and

last fall by Bank of
(International), wholly
owned
subsidiary
of
Bank
of
America, NT & SA.
American

Assistant Cashier in 1951 and As¬

tional

Trust

Vice-President
.

...

.

872,378,797 852,884,584

'

Avenue, New
'y

this

Dec. 31/57

Government

security

THE

bank's boards

7 V.Y

purchased

with The Lincoln since 1937.

.>•

207,841,249 253,372,195

'

office in the bank's quar¬

an

a

of

Bank

elected

were

America

NEW YORK

due from

undivided profits7

committees.

ters at 415 Madison

S.

v s's

Mar. 31/58

f

——

and

Loans

on

its executive and develop¬
He will main-v*

on

ment

of the

i.t

YORK TRUST CO.,

banks

31,
having reached the
company's mandatory retirement
age of 65. Mr. Baer will continue
a

25,752,785

resources—

Deposits

March

as

been

Manappr

The Lincoln since 1930.

is

"•

,

Bankers

officer of the bank

an

as

8oo,i48,8i2
27,801,493

profits— "f

THE NEW

U.

Trust

344,867,667

858,075,495

'

Francis S. Baer, Chairman, Ex¬

.'ii.

385,765,012

Y

'.7 1

502,571,153

se-

diSCts.

&

Banking,

'■'.

;

Govt,

Ij0ans

New York
School .and;
of

School

s.

496,646,788

__

curity. lioldgs.

PTp

ne

American

the

Banking,
Graduate

University
the

on

.Mty r ounaaxion swsrf]
awara.

West 2nd

take

*

\

company,

r>.,;,

.

.With :

"

the Comptrollers D e p artment- Total resources. 1,912,952,751 1,804,051,252
since the latter date;;/::./—,? : - v, ■?-/
1,717,749,754.1,578,402,572
.

and

bl,ae",

*of

has

sistant Vice-President in

96,680.562

-•

:/,; *

:

Redeke

601,308,471

■

1955.

in

elected

-

Mr., Redeke
W.

723,304,626

Govt;"se- ~i~ "<?."

was

,

charge
of
The
Marlboro Office,

525,408.071
curity-hoidgs.539,143,178
Loans. & discts. 1,581,703,109 1,609,992,036

t

Prpci
riesi-;

-

2,967,393,052

due

Cash a h{in.
n d
frr.

•

an

a n

v

2,558,572,900 2,438,4i4,i44

,

i n t

Assist

who

,u

Dec* 31' '57
$
v *

•

w

Total resources,-3,167,081,776

o r»_
ap-

,

P o

e

1921.

a c
was

-Mr.

McGuirk,
'
V
inoo
?
W1th the bank since 1928, will be

**.• Vicp-Presidpnt

,

Bank

-Life Insurance Department.

385,196,102

on

"

W.

ditor; Adolph Baricevac, Manager,

holdings 189,603,456 185,381,480
392,661.884

Redeke

joined

Vtce;-.- President; ^August

c

Undivided profits—. 18,747,127
.
.
-

Comptro ller
in P e
sine P
c

GovVrnmint

s

McGuirk,

Junger, Assistant Vice-President;
onnnJp1- Francis A. Clements, Deputy Au-

from

due

F.

Vice-Presi¬
dent; Edward J. Puttre, Assistant

803,993,309 759,452,990

Deposits

H.

H Paul

Dec. 31/57

^

Ralph

york

new

,/Mar. 31/58

1. He succeeds

Ambridge,

internationally known fin¬

BRANCHES

NEW

Ernest

W.

.•

CONSOLIDATIONS

v

D.

announced

by George C,, Director of the Royal
Johnson, President of the bank.,
Canada, Montreal.
He will fill the vacancy created
$
!{v
by the recent death of Walter

News About Banks
NEW

is

23

and

will

poration

and

partment

in

of "the

Bank

Francisco,

San

serve

in the

of

Cali¬
cor¬

relations denorthern California.
bank

FIRST

WITH

THROUGH

THE

FINEST

LORILLARD

CIGARETTES
RESEARCH

24

Continued

have

did

never

from page 3 -

their day. Turn¬

rose

never

over

much,

nor

tions—and

And Secuiities Markets

large

a

part

of

this

buying isJ'for keeps," in percent¬
in stocks, if not in individual

ages

national pro- to the relationship of wage rates
But now that to productivity. It may be a slow
eased, there is process, but it is possible to hope

Such

stocks

in

lowest ratio to gross

issues.

duct

strong hands—the kind that have

1929.

gince

being

is

reluctance to use it. The loan ac-

a

new

start has been made,

money

Since

time.

are

very

to invest most of the
institutions are so

Time is beginning to run out on

recession

business

this

when

Federal Reserve Index

the

Production

of Industrial

was

first

Thursday, April 3, 1958

.

.

continue

to

to

increase

a brief
arising population
with a rising living standard eats'
up an apparent over-capacity sit¬
uation with surprising rapidity.
J
Efficiency continues to increase.
for

and

than

other

anything

the J period,

and,

From 1919,

bear market in stocks.

.

fail

will

Decline Has Been Lengthy

^

did

buying on margin. The buying
was largely by bank trust depart¬
ments,
pension funds, colleges,
mutual funds and other institu¬

Outlook for Business

money

Chronicle

The Commercial and Financial

(1512)

a

until now, there have
This is true not only of manu£ac-:
been nine periods, including this
turing efficiency, but also effi¬
one, in which this production in¬
In fact, the
dex declined 10% or more. On six ciency on the farm.
farm situation is one of the most
of the eight previous occasions the
computed

whole decline

in

bottom

to

was

from top

over

months

13

or

less.

demonstrations

dramatic

of effi¬

From 1910 to 1957 theof people on fhe farm de-,

ciency.
number

important in securities markets it The current decline is now in its
creased from 32 million to 21 mil-j
being liquidated, it is possible- may be well to consider that they 15th month. One of the two long
ones
was
3943-1946—a period lion, from 35% of the total pop¬
Private debt is historically high that movement could be over in seldom invest on a one-year basis,
which few regarded as a business ulation to 12%, and yet f arm out- j'
—almost three limes its level of another six months. In some m- are more interested in long-term
recession. Thus, for practical pur¬ put rose adequately to take care
192)9 in hilars. .Consumer credit, dustries, such as steel, we may be> growth or repetitive; e a r n i n g
of a hugely growing population.)
poses, the presentrecession has
for example, as a percentage of. producing 15 to 20% below con- power.. In that connection, it is
lasted longer than any of its pred¬ One of the astounding economic
disposable .personal inco me is, sumption, even at these reduced, thought-provoking to observe thatdemonstrations of our period is
ecessors of the past 40 years with
at its 1956 and 1957 peak prices
about
today compared with a rates of consumption.
^
the exception of 1929-1933—a pe¬ found in the fact that though farm
the DJI sold at only 39.1 and 38.0
pre-war high of a little over 11%.'' Consumer debt seems high, but.
riod which nobody expects to be net income has diminished greatly:
Mortgage 'debt on: one-tw.o-four > we have no standard since it is. times* its 10-year-average earn¬
in the past t£n years, farm land!
repeated at this time. . .
family residences is above-35%. of difficult, to prove consumer debt ings. This compares with 20.7 in
In the 61. years in which the prices in the same period of time j
3 946, 22.9 in 1937, 33.6 in 1929.; *
disposable^ personal income com-'.ever caused serious trouble. Hous•
Dow-Jones Industrial Average has have advanced 80%.
pared with less than 25% in 1929. ing debt is on a different, less
Research e xp e n d it*u res are i
been computed there have been
Monetary and Fiscal Situation

deposits of

thus

and

counts

At the rate at which inventories

the

banking system tend to decrease,

are

_

'

thratenlng basin than was .true
modities, such as copper,have ex? P?V
~a(. prlv.ate
perienced a precipitous j decline. ^ebJ.ls riot high in ridation to the
Despite a record $12.9 billion of 11 a 1 °naI income by historical
ot

Prices

volative

some

cam-

.

corporate financing last year,

standards. This private debt-tonational income ratio.^is . lower
than at any time from 1919 to 1940.

31
£■

or more,

Many of the things ,that mad e exclusive of the present. In seven

us

cautious

year ago are

a

turning
tight

into reverse. We then had a

policy. We have an easy
corporate .balance sheets are bemoney policy now. The discount
rate ; has been cut
three times
coming less liquid. The number
of business failures is rising, and
• Gross
National Product may since November. Member bank
the liabilities involved in these now be down to an annual rate of reserve requirements have been
failures are more than three times about $428 billion. This looks bad cut Vz % twice in a month. Actual
new

bear markets of 24%

money

.

of these 11,

the entire decline from

top to bottom had taken place in
An eighth had

greatly increasing, laying the*
groundwork for many new prod-j
ucts and processes.
-

gone

Even in the 1929-1932

affair, 76%
of the whole price decline had
taken place in the first 23 months.

ratds against last year's third quarter positive free excess reserves are It is now 23 months since the
peak of $440, but the first 1957 now as big as negative reserves Dow-Jones Industrial stock aver¬
quarter was under $430, and the were last summer.
Margins on age established its all-time peak
Depreciation allowances' are. in- 1957 total was $434, a new all- stocks have been cut from 70% gross. Even if the top were to be
adequate in a period of high re- time
peak
only
1Vz %
above to 50%. The prime bank rate has dated from August 1956 instead of
placement .costs and rapid obso- where we now are.
February's been cut once. The bond market April, these figures would not
higK as to threaten the fundamentals of private enterprise,

is

income

ap-

Personal Income was down to an

has

had

of

one

the

fastest

ad¬

annual rate of $341.8 billion, $5.5 vances in history in a comparable
ten
years.
Unemployment in below August, but still $3.5 above time period. That there is more
February was 5,173,000, which is February,
1957.
Personal
con- to come along these lines no one
6.7% of the labor force. It is felt sumption expenditures are reced- doubts.
this figure will rise further in ing a little, but from a very high
The Administration
and Con¬
March, if not also in April.
level. New personal savings are
gress a year ago were trying to
Dividends are being cut. While probably still running at an an- cut
defense
expenditures;
now
earnings of the bigger, more ef- nual rate of $19 billion or there- they are raising them, and defense
ficient companies were approxi- abouts.
order placement is rising much
mately at their all-time highs last
The 22 Sensitive Raw Materials faster than actual expenditure.
year, even the earnings of such-Price Index, • which
received so
Last year, at every level, there
companies are now declining, and much attention on the downside
was a fight for a balanced budget.
it is estimated that last year all last year, is tending to rise. The
While the fight has not been aban¬
corporations earnings after taxes "All Wholesale Commodity Prices"
doned, it's obvious both the 1958
were no higher than in
1948 al- index of about 2,000 commodities
and 1959 liscal year Federal bud¬
though meanwhile gross national is jn new all-time high ground,
gets will show red figures. Cur¬
product had expanded from $257 The "Consumers Price" or Costit looks
like that red
billion to $434 billion—a profitless of-Living index is in new high rently,
figure will be $1 billion for June
growth of prosperity indeed far ground—not that that is good, but
30, 1958, and perhaps $7 billion for
the typical company comprising ft
certainly isn't the sort of thing June
30, 1959, unless we can turn
the
'all corporations
figure.
one expects in a period of serious
the business picture upward pretty
The rate of growth of produce deflation. . > •
quickly.

change significantly.

<

the .USSR

in

is

such^(if we

them) that starting
with 1950 as 100, Russia achieved
225 in 1957 against a comparable
behove

may

rise from .100 to 118 in the United.
States.

Probably

they

heavily

is still impressive—
since Sputnik. There

it
so

jn

the number of business firms

operation.

T.

has been basic loss of confidence
in

\

.»

^

Jj"

,

2

overstate

their case, but even if we discount

doubly

While failures are increasing, so
are

;

.

7

^

f.

^

,

..

1roc|V,^ (011.
ayerafce only 12? for
ow^.r

s

,1. al!y

Predictions I ve seen from Washor else where
that would
still preserve^ the, long-term pattern of growth,

our national leadership.
There
continuing threat of economic'
Though the economies of the
or military trouble in many parts
Free World, ex-USA, are not as
of
the world,
including Brazil, expansive currently as was the
Algeria, Egypt and the Middle case in 1954, through the third
East, Indonesia and elsewhere.
quarter of last year they were

is

This

is

an

unfavorable

impressive array of
factors, but must be

viewed in perspective. We always
have troublesome factors with

which to deal; the important thing
is to weigh them against the favorable
and

stimulative

or

try to strike

side

a

elements,

balance

on one

the other.

or
.

B

a

.

r„

Are Bad

not

the

as

bad

surface.

as

...

note

they

Some

appear on

others

may

long period now, and have

a

likely discounted much and placed
our

houses

the

elements

trouble

And

in

have

several

order.

which
gone

Several
started

into

important

of

the

reverse

upward

moving forces are present.

Some

bad

threatening

lyzed.
have

factors

when

seem

carefully

less
ana-

that

some

labor

leaders

abused their positions. This

that

the

are

mixed, and

Dow-Jones

Indus-

trials, on an index basis, appear
to have earned about $35.50 in
1957, compared with $35.78 (the

long

period

debatable if it

more

generally en-




new

funds away from

stocks. Now,

in

the
market; now stocks sell
pretty much "ex-confidence."

of rise, and it is

ever

became "over-

With
which

so

priced," judged by historical

a

It is

reversed

that it

a

was

a

common

saying

bull market in "blue

decline

ate

a

of the factors
warning signals of

many

were

standards.

chips," which, to mix a metaphor;
is just another way of saying that
lightened leadership with respect in the late bull market the dogs
could lead to

institutions to change the flow of

stocks typically yield almost 1%
in 1956.
Our estimates indicate above
high grade taxable bonds
they may earn as much as $31 this
again. Last summer it was feared
year. At 445, that would give a
Europe would fall down on us.
price-earnings ratio of only 14.4, Now Europe is holding up better
not a particularly high appraisal
than we. Last summer, there was
in an off-earnings year,
a
considerable confidence factor
In fact> the stock market never
experienced much speculation in

Factors

certain important up¬

moving factors present

to¬

Many of these are associated
with the Government. In the first
day.

place, the Government is a very
important
stabilizing
influence
merely from the standpoint of the
level of its expenditures. Total
Government
expenditures this

major long term fac-;

One other

tor remains for consideration from1
the

that

investors;

standpoint of

is the factor of inflation. A great
battle

infla¬

against

fought

was

That battle was lost.

tion in 1957.

President, the Congress and
Reserve System

Federal

all

sought to restrain advancing
prices by means of cuts in federal
expenditures
and
a
restrictive
monetary policy. This policy was

necessarily reversed in November.
111

of

face

the

a

fall

in

business;

rise in unemployment. Un-;
der the Full Employment Act of;
1946 such circumstances must be

and

a

recognized by administrative au¬
will probably be 27% ot thorities. At a time when the cost'
national product. Even total of living and the wholesale com¬
Government
purchases of goods modity price structure was at the
and services will probably exceed
all-time high, it became necessary
21%
of
product. to initiate an easy money program)
gross national
And these major items are going
—in other words, to inflate.
to move upward instead of down¬
The federal
budget for fiscal
ward. State and local government
1957-1958,
which
we
had
all:
spending will move up without
fought so hard to balance, is go-;
respect to deliberate stimulation
ing to be out of balance. The fed-;
of the economy.
The need for
eral budget for 1958-1959, which
streets, roads, water systems, sew¬
was
proposed two months ago as'
Last year, one of our most re¬ age systems, schools, teachers, rec¬
a balanced budget, was then and
spected New England
Senators reational facilities is very present
is now obviously an imbalanced
made
a
speech
in
Chicago in —boom 01* recession. Such ex¬
budget with the possibility that
which he
said: "Taxes are too penditures are likely to rise an¬
the red figure could be as high:
high; we must get them down. 6f other $3 billion this year. New
as
$7 billion even without a tax
course, if business improves, we highway expenditures would rise
cut and even perhaps $10 to $15]
ought to keep present high rates this year even without recession
billion with a tax cut.
With the
and pay down the debt. And if and probably will be stimulated
federal debt near its all-time high,"
business recedes, obviously we'll beyond initial plans.
we
have again raised the federal
have to keep tax rates high to
Over-all construction expendi¬
debt ceiling $5 billion—temporar-*
avoid a deficit." Confused as that tures, public and private, are ex¬
ily, it is said.
sounds—it was basic national phi¬ pected to rise. Though on an an¬
Obviously, under these circum¬
losophy a year ago. Tax reduction nual basis new homes starts ap¬
stances no prudent investor could
just wasn't practical under any pear to be in a declining trend,
disregard the continuance of long
foreseeable circumstance. Now we
actually with the exception of
term inflationary risks.
know the odds are strong we'll February these new starts have
What does one do about infla¬
get tax reduction this year—defi¬ been in a rising trend since May
cit or no. This could add materi¬
of last year.
Vacancies over the tion? Perhaps the Frenchmen are
ally to after-tax income of many country are surprisingly low con¬ the world's greatest experts on
French
people, including some of your sidering the high level at which that particular question.
more important clients.
It's even new home building has been sus¬ common stocks in 1957 averaged
possible to hope that at long last tained. Consumer research studies 5,576% of the level of 1937, and
corporations will be able to keep recently completed indicate that this is the second great inflation
in France in one generation. Even
half of what they make.
home owners expect to sustain the
in our own country the orthodox
Last summer, for the first time present active level of home im¬
in 23 years, stock yields fell to provement. This is especially im¬ answer has been the right one.
the level of high grade bond (tax¬ portant when we realize that ap¬ The purchasing power of the divi¬
dends paid by the Dow-Jones In¬
able) yields. This tempted many proximately 60% of American

all-time high) in 1955 and $33.34

jts

There is increasing recog-

nition

in units of out-

or so

Put i° the final 1957 quarter, coml)ared ,with 1956's fourth quarter,
at a time when we were already
down sharply,
now generally down, it is well to

JO

D

have spent most of their force. We
have been dealing with these adverse business and market trends
for

still rip 2%

Though earnings

,

Factors All Bad.

Some of the unfavorable factors
are

running substantially above simi*ar Quarters of 1956, and my estiis that on average they were

ward

are

:

\

Will Inflation Win Out?

the

Moving

Upward
There

,

have;

been corrected.

The

proximately at the low of the past

tion

,

son
for expecting the
country's
98% of the way from top to long term growth to be. resumed
in the first 23 months.' after
current
imbalances

what they ^were in 1939. Tax

Farm

• :
rear'
.

is-thus every Lasic

bottom

are so

lescenee.

There

23 months or less.

year

ago

now

having

positions, it is appropri¬

to

thing in terms of the pos¬
sibility of this decline stopping
and even reversing, looking some
distance ahead.

year

gross

families
trasted

own

with

recently

their

home

own

only

about

con¬

41%

as

Longer term forces for growth
remain
strong.
The
population
continues
of

about

to
3

increase

million

at the

per

year,

rate
re¬

peatedly out-distancing all of the
expert estimates. I These people
add to consumption and later re¬
quire additional plant capacity to

provide

work.

The

in

times the

U.

S.

living

when

we

January 1958 was 2.9

purchasing power of the

dividends

1940.

as

dustrials

paid

by

that

average

went off the gold stand¬

ago this month in
purchasing power of
high grade corporate bond cou¬
pons
in January this year was
only 36% of the purchasing power
of high
grade bond coupons in
1933.
For growth or inflation, in
ard

25

the

years

The

1933.

long run,

one

owns

common

stocks.

standard, despite recessionary
Probable Outlook
tendencies in the great depression
of the 1930's, is today about half
What, then, our conclusions?
again as high as it was in 1929, 'These seem to me to be the prob¬
in constant dollars and on a per abilities. With respect to the busi¬
capita basis.

There is nothing to

indicate that this living standard

ness

outlook

over

six months to

a

the short

year,

run

probably

of
we

Volume

187

Number 5730

...

The Commercial and Financial Chronicle

(1513)
have already witnessed the sharp¬
est part of the

decline, and prob¬
ably the bottom will have been
reached before mapy more .months'
have passed.

part to

The

inventory reduction already be¬
ing taken by businessmen. It will

be due in part to the fact the econ¬

has

to

had

not

many

Lynch,

serious
,

due

102.526%

April

and

1,

accrued

1988,
at
interest, to

.

bottom

bonds will be redeem¬

545,080
of

come

and

consolidated

in¬

net

$13,439,668.

Stanger Director *
Wesley A. Stanger, Jr., a gen¬
eral ; partner in
the investment
banking firm of Riter & Company,
has been elected

the

Pennroad
end

investment

Mr.

director of The

a

Corporation,

V.

a

'There

maceutical
a

pecting
time.

other

Hightstown, N. J.

' '

for

ex¬

slow business turn this

a

The

natural

causes

of

McGeary Director

i
At
of

a

recent meeting of the Board

Directors of

Silvray Lighting,
Companies, at

Inc. and Associated

Bound Brook, N. J., John D. Mc-"

Geary was elected a director.;!4
and a; been added to the staff of Hatha¬
Mr, McGeary is a partner* ill the
approxi-T way Investment Corp., 900 South New York
/brokerage
firm
of
mately 1,487,000 at Dec. 31, 1957. Pearl Street.
' - .
* Auchineloss, Parker &
Redpath."

about

4,000

square

miles

population estimated at

„

/

Benefit the

Telephone User

the

next business advance are not yet

clearly apparent, other than ces¬
sation of inventory reduction later
in the year. President Eisenhower
is not yet in a "panic." In fact, in

large

the "March Song"

measure,
1958 at the

of

Presidential

be

level

"waiting game."
This may prove to be very wise
in
the long
run,
but it is not
calculated to turn things about in
a
hurry.
"V.
f
/:
to

appears

a

-

.

Stocks and Bonds
This

bond

ought

to

that

mean

will

market

the

remain

a

favored investment field for quite
while longer. You'll probably

a

have

time to let your
purchases
develop

Good earnings

into long-term capital gains. Here
and there you might find some¬
one
who
can
refund
at
lower

plenty

incentive and the

recent

of

bond

provide both the
for better

means

telephone service and greater value.

interest rates.

But if

Stocks currently seem to me to
be reasonably good present values
on
the
basis
of
expected
1953
.

earnings and dividends. The stock
rally in recent months probably
to

extent

some

business

turn

reflects hope of a
sooner
than it is

likely to take
ment at

the

recovery

place.
cause

business

of

renewed

standpoint of the long-

low, and all

rected to meet the

pressing needs of

the moment, it becomes
do the best for the

to

For

a

re¬

action, but I do not think the price
risks are great, or likely to last
much longer.
From the

are

energies and judgments must be di¬

Disappoint¬

slowness

may

earnings

take

a

impossible

long

run.

practical illustration, let's

telephone engineer who is

figuring out what size

telephone

cable should be installed to

serve a

,

/

term in both business and securi¬

ties, the American
to

resume

as

economy is likely
its growth at a rate fully

dynamic

witnessed
sured

anything

as

to

up

by

the

now.

(huge,

have

we

This is

as¬

increasing

expenditure on research. I believe
it is also strengthened by the fact
that in this Postwar II

period, for
generation, it
is becoming increasing clear that
the first time in
the

rest

and

of

the

Communist

our

world—both
desire

—

Free

to

im¬

growing neighborhood.
lie knows it must

right

away.

haps 200
ice.

couple of

sure

a

big enough to

all 400 homes

of

and

goods

services

at

a

per¬

centage rate faster than we, even
though they have started from
much

lower

have

very

bases.

favorable

implications for
As
need

our

mean

shall

ought to
long-term

money

grows,

it will

to finance

over

work

the long-term we

back

to

the

a

serve

smaller

only 200,

and another of

equal size two

later, will cost

lot

a

If it

more

years

is in good fi¬

to

readily get the capital

required for the big cable—

If the company
money,

smaller

do?

is pinched for

he'll have to put in the
cable,

even

though this will

There

is

And

as

last

earnings
and
dividends
should again rise, perhaps even at
a faster rate than appears to have
been the
typical corporate ex¬

perience in the past 10

years.




to

assure

progress.

justify the

higher cost of the larger cable until

earnings low is the

the time when

utilized

its

full

capacity is

go

way

to insure

low rates.

—

Such

ahead with the larger cable. Over

the years

this will

save money

for

both

the

users,

and produce the best service.

company

and telephone

leads
at

a

a

and

ress

BELL

TELEPHONE

policy, by limiting

prog¬

long-range economies,

inevitably to

poorer

service

higher price than the customer

would otherwise have to pay.

summer.

the economy grows, cor¬

nothing

and

philosophy that keeping telephone

point

porate

essential to

justifies absorbing the temporarily

where your bond clients are
being
better compensated than was the
case even

on

In all these decisions«
are

the greatest economy

in the end.

What will the engineer

day out.

good earnings

general level of earnings

called

are

make decisions like this, day in

and

shape—
can

Telephone people

run.

Then the engineer will decide to

the

expansion. That ought to

that

today that will

us.

economy

more

further

This

However, putting in
cable

expensive in the long

And if the

prove their material

living stand¬
ards and are, in fact, year after
year stepping up their production

nancial

at the start.

more

more

But if the company

serv¬

cable today that is

serve

he

also

years per¬

homes will want

more

Putting in

will cost

200 homes

serve

lie's reasonably

that in another

Co.,
a

*

'

reasons

po¬

manufacturers, and is

director of Hightstown Rug

eight

"4;.:-A'A

.

are

closed-

sition of board chairman of
Strong,
Cobb & Co., Inc., Cleveland phar-.

months; in 1954, nine months bear;
the bottom level of production be¬
fore we finally turnedup de¬
cisively. .Thus, from the stand¬
point of historical experience, we
need to recognize the current re¬
cession is unlikely to turn upward
like

a

company.

Stanger also holds the

1949

In

area.

the

near

....j

.

-

presently outstanding bank loans
before we turned upward de->
cisively. In 1932-33, it took a false aggregating $15,000,000; reimburs¬
start and 13 months bear the bot- ~ ing its treasury for capital expen¬
torn before
we
got; under way.
In 1938 we spent five months in
were

new

,

operating electric utility en¬
principally in the genera¬
With Hathaway *lnv. v
tion, transmission, distribution and.
'(Special to-The Finamcim.: Chronicle)' •'
sale of electricity in the southI DENVER, Colo.—Gertrude M.
eastern portion of Wisconsin. The
territory served has an area of Hill and Ruby R. Williams have

spent nine months }ib the bottom

we

company

gaged

.

area

the bottom business

1957, the

an

..

-

.

For the year

Wisconsin Electric Power Co. is. firm.

<

Systern, the Administration was won by the group at competi¬
tive sale March 31 on a bid of
Congress.
•„
2'
But we should :nof expect busi¬ 101.609%.
"
;...
\
>
ness to turn around to. an upward ?
Net proceeds from the financing
course abruptly and quickly. That
are
expected to be used by the
doesn't usually happen, in 1921 wc
company
for "the retirement of
..

for.

with

yield 3:98%. Award of the bonds

serve

and

and

ranging from 106.66% to par, arid
Join Abraham Staff
for the sinking fund, the mainte-,
nance funds or upon
application of
Abraham & Co., 120
Broadway,
certain moneys
included in the New York City, members of the
trust estate, at special redemption New York
Stock Exchange, have
prices receding from 102.53% to anmmnced that
Kathryn Priscilla
par, plus accrued interest in each
l\pSmis and Werner H. Kramarcase.''1;
'' '■"
"
sky are now associated

underwriting
syndicate,
on
April 1 offered an issue of $30,000,000 Wisconsin Electric Power
Co., first mortgage bonds, 4Vs%
series

It will also be due in part

to the steps already taken and yet
to be taken by the Federal Re¬

made,

able at regular redemption prices

an

which could be expected
a downward deflationary

cause

spiral.

utility plant.

Pierce, Fenner
& Smith and Equitable Securities
Corporation, as joint managers of

as

omy

Power Bonds Offered
Merrill

such

measures

already

meeting part of the cost of further! and its subsidiaries had consoli¬
additions and improvements to its dated
operating revenues of $113,-

This will be due in

corrective

excesses

ditures

Wisconsin Electric

25

SYSTEM

26

The Commercial and. Financial Chronicle

(1514)

Continued

■

■

Thing to

economic perils of

inflation and unemployment.
Proposes Seven-Fold Program

read,

So that those who run may

let

give in capsule form what

me

I think

(1) We must strengthen our de¬
certain

make

and

of

We

(2)

further

prevent

must

our

deterioration of the credit of the
States

United

Folly

through borrbwing and too little
through taxes.
Inflation is

and

primarily responsi¬
national

debt, for our high tax rates, for
record high level of expen¬

structure
down the

growth.

(3) These goals demand that we
reject all tax reduction and pumppriming proposals which require
deficit financing.

whittled

and

power of the
government and
stumble
under
its

purchasing

As

dollar.

encourage

stilts

on

the

citizens

burden, continuity of confidence
is broken, and a growing concern
serves as an
added drag on our
economic activity.

We are now suffering a hang¬
New Federal works pro¬
over
after
a
long inflationary
grams should he placed on a selfliquidating basis. It is better that binge. As is always the case with
new
works
programs
be spon¬ hangovers, we have only ourselves

(4)

blame.

More

the

of

sored at the local lqyel.

to

(5) We must end the price-wage
spiral and curtail excessive profit
margins.
(6) We must restrain the abuse
of credit
private and govern¬

the dog" is no remedy.

ment.

cial

—

(7) We must ameliorate the suf¬

"hair

of

It only in¬

suffering and delays re¬

creases
covery.

The inflation of

time flows

our

from the selfish struggle for spe¬

advantage

among

tional security and our responsi¬
bilities as leader of the free world.

plans,

no

have

.meaning while America's
defenses are laggard and deficient.
In this age of nuclear war and

true in World War II

was

in the Korean War.

and
wars

In both

ignored the lesson of ex¬

we

perience which taught that the
way to curb inflation and profit¬
missiles, the price of unprepared- eering was to pay for war as
ness may be sudden death.
Con¬ nearly as possible out of taxes; to
control
prices,
wages,
profits,
sidering all that is at stake, let us
do more in building our defenses, money, and credit; and' thus pro¬
vide a common standard fair to
gather than less.
I

disagree entirely with those

Who

claim

the

that

American

economy is not strong enough to
meet the threat to our security. It

met

the

demands

without

seriously

highest

standard

World

has

ever

believe that

total

of

war

impairing
living

the
the

of

known.

Can

our safety
de¬
To be sure, effective de¬

fense requires high taxes.
taxes

I like

Instead

The value of any conjec¬
purchasing power is out¬
weighed, however,-by the jeop¬
ardy in which a tax cut will place
all
the
programs
supported by
tured

taxes—from

national

welfare assistance.
A

tax

the

weaken

ther

credit.

are

iriflmdr|E&;>:^
the time to embark

Federal

vast

more

program

efficiently. We should elim¬

inate

the
piecemeal approach—
the costly starts and stops—which

works

other

or

pump-priming programs requir¬
ing deficit financing. If we want
dams
and
highways
and
new
schoolhouses and other projects
we should be prepared to pay for
them. Any new public works pro- <
gram should be placed on a selfliquidating basis in the same
manner
as
the present highway
program—that is, it should be ac¬
companied by a tax to pay for
interest

amortization.

and

in

this

sphere,

would be local action.
ernments
own

best

can

ac¬

believe,

I

Local gov¬

survey

their

situations, determine the idle
of manpower,

resources

and other facilities

balance

materials

available, and

them

against the degree
of need and their own budgetary
requirements.
Such locally con¬

.

ual,

must

house

keep

in

its financial
Its

order.

financial

strength, no less than an individ¬
ual's, will'determine its capacity
to withstand economic adversity.
credit

true after World War

was

instead

of

maintaining

forces

abandoned

and

is

and

tax

other

spending, or lifting the
borrowing ceiling every time the

neces¬

economic

Reduce

And after Korea, at the
sign of the inevitable postinflationary readjustment, we in¬
into

fresh

our

Now

dose

of

face

we

Stretch-out

and

painful

of readjustment again, the
to inflation is being
urged. The same struggle for ad¬
vantage is being repeated; Each
group wants to shift the burden of

same recourse

someone

else.

Federal

Not

until

the

government puts

its house in order will the people
know how to bring' order to their

Each

wants

special
consideration,
arguing that its wages or prices
or
profits must be kept up to

own

rupt the economy.
In military expenditures, in fact
for all spending, Congress should
have the services of an expert

avoid depression.

sive by the shortening of matur¬
ities. Now more than 80 billions,

Staff, similar to the

won't

disorganize

production

committees have.
make

a

dis¬

and

the

one

tax

This staff could

continuing running study

Nothing is
this

that

tion lies

get full value for every
spent
This is something
that should have been done long
we

ago.

J

Borrow Less and Tax More
But above all else, once and for

all,

we must

relieve

our

defense

program and our entire economy
of the toll paid to inflation. Think

of

the

planes we could
have
bought, the research we could
have conducted, the extra benefits
we
could
have
provided
our
armed

forces

with

the

billions

notion

more

that

tercession.

nomic health.

Its most

the

eco¬

important




difficult

and

expen¬

of the debt outstand¬

inflation

were

could

so

have

short-term basis. I
why those in
authority did not move earlier to
on

Government

does
a

have

re¬

role to perform

circumstances,

par¬

ticularly in regard to those who
are

victimi2^l by unemployment.

V

No

wishes to

one

is;

See

concerned:

m ore

return

a

halt

must

we

chase of

to.*

■

see

its gains than I

preserve

intelligently, they will give us a*
against any' emergency of
war or nature more precious than1
the gold of Fort Knox.
•
;
>, Jn closing I offer for meditation'
a thought expressed by one of the
wisest
Americans; B e n j a m i n:
Franklin, who said—and I quote: '

the

reserve

'labor;

But-

am.

wild,\ unmerry

prices, wages and;profits..

We prefer not to compel this by

legislative fiat
We rely upon

taxes
are
indeed
executive order.; j "The
very.'
individual action,; heavy, and if those laid by the:
self
discipline, and enlightened government were the only ones;
selfishness of labor [and industrial we had to pay, we might more;<■
or

.

-

leaders.,* If they cannot recognize
that self interest requires concern
the

and

have

as-

a ;

whole-will

ness,

pride, and four times as much by;
our
folly; and from these taxes"

of

law

supply, and .demand,
adjustment eventually forced

the commissioners cannot ease or

them will be much .more pain¬

on

ful.

deliver

y

would

be

if

,

nesses would

A-7

:

abate¬

an

7:,.7

:

the

Calculating Tables

great labor unions and busi- i

our

by allowing

us

ment;

inspiring and
leaders of

an.

thing

salutary

some of us.
We areidle-;
three times as much by our,

taxed twice as much by our

If they .will not

adjust voluntarily and in time to
the

;many;

interest,.then they' grievous to

nation

be made to suffer.

the

discharge them; but we,
others, -and
more

easily

,

for the national

jointly pledge'to the

;.

President

will

that for one year, there
no
increase in wages or;{

be

prices

and

profit

that

Individual
be

For

margins

would at least be frozen.

.*••

dealers and their f
engaged in the'

brokers,
who

salesmen

are

distribution of mutual fund shares,

self-rbstraint should

there

exercised, too, in the• ai'ea of

billion, we have

to be

reason

is

available

now

therefor

must

con¬

cerned.

"

a

book ofi

I

have

Liberal Credit

Too

often

been

shocked

by

chants and advertisers go to press
credit

upon

which

to

the

consumer

with

•

buy things they can be

want,; but do not
need.
The
susceptibility of the
American public to these bland¬

persuaded

to

ishments troubles me;

The oppor¬

or

even

little or
doflahs

visit the
nothing

of

$1,000

use

as a

basic

by each offering price, results in.
number of shares, carried^to the:

a

fourth

decimal

place, .such
will purchase.

I of money

sum

I

By moving the decimal point a
sufficient number of places to
left

one

can

the"

arrive at the number

shares

$1 will purchase or by
place the decimal point is
moved to the right, the number,

of

each

tunity to vacation in Florida, Cali¬
of; shares
fornia or Latin America; or Tour*

Caribbean;
Taj Mahal for

intervals

at

of money which when divided

sum

the lengths to which banks, mer¬

be

>7J'7

cent.

one,

7<" The tables
.Restraining

10.
7

and

*r^;

of.

amount

the

is multiplied by -

required

money

/•*":

by
the photo
offset,
.the tables are bound in,
may not be easy to resist.
But isa paper cover with a plastic bind-,
it a proper use bf credit?
;;
; V"
ing. The book is about 8x8 inches
In the last analysis, we face a
and

test

of

a

few

selves

that

Alice
the

character
Have

sense.

week

a

in

cure

we

Printed

.

in size and contains some 50 pages.

J'.and

common
deluded our¬

so.

take, seriously, the
Wonderland notion that
for

indebtedness

lies

in

debt; and that.thrift is anti¬
social?
Or do we" have sufficient
economic

sense—and

face

facts

the

of

courage—to

situation,
we have
in time,
without
incurring ."the
heavier
penalties which delay and evasion
the

recognize
made

Instructions
tables

will

our

mistakes

correct

and

exact?

In

them

porations

could

at rates

If private cor¬
refund and bor¬

easy.

row

as

low

as

Wage-Price-Profit Freeze

Nothing would be more effec¬
in turning the tide than to
halt the never-ending spiral of
wages and prices. The best stimu¬
lant to our economy would come
from price reductions.
The con¬

tive

inflation
been

that

could

:

alarm

our

mistakes and call

Third, that
fidence
health

least

at

"

\

that there is no cause
if we will learn from

for

practices which
for this situation;
we

along

are

a

halt to the

responsible

Station, New York 4, N. Y.

BETHESDA, Md. — Investment
Bankers of America, Inc., has been
formed with offices at 7942 Wis¬
consin

Avenue

securities

to

engage

business.

in

Officers

a

are

President and
Conrad
L.
German,
Vice-President; and Patricia C.
Kelly, Secretary. Mr. Kelly was
formerly with The Matthew Corp.

John"

G.

Kelly,

Treasurer;

and P. J. Gruber Co.

"

Lloyd Arnold Co. Adds

'

(Special to The Financial Chronicle)

(B) Barring new inflationary
Forgoing tax. re¬

adventures.

Avoiding deficit spend¬
-

mail ad¬

148, Bowling

Box

rqstore con¬
with
economic

them.

ing.

O.

can

(A) Determining the require¬
ments of national security and
doing all that is needed to meet

ductions.

P.

is

Green

by sound measures which

include:

Mr. 'Schneider's

Street.

dress

;..

mitigated, if not pre¬

vented;
Second,

,

price: single copy $3.50; two
copies $3 each; 10 or more
copies $2.50 each.
The" publisher
of this handy
*book is Caspar C. Schneider who
has spent most of his life in Wall
to nine

Form Inv. Bankers
me say:

First, that this recession is the
aftermath of. a period

have

the

use

The

.

summation, let

inevitable

was

to

how

on

included.

are

we

more

of

con¬

a

domestic economy, our-tariff poli- ;
food, fibre, and metals. If we do
our allies and 1 friends,
^
not add to them but manage them';

refund the debt when the money

not

trolled.

,

market

silent when
been

country of boundless5
human resources, of

and

cies and

understand

.

those voices

scientific

a

are

cannot

salva¬

did

more

ing,

mess

dangerous than

economic

,

2%%, why
keep us from getting into our couldn't the government?
present condition.
How can we
We must face, however reluc¬
rely upon it to get us out of it?> tantly, the truth that government
Let us not turn always
to the action is no nostrum for economic
government for succor, but re¬ health. Nor is it a substitute for
member rather that a free gov¬ individual
responsibility.
The
ernment depends always upon the adjustment must be made by each
people for sustenance.
When
I of us, in ©ur business, our job, on
hear people demanding govern¬ our farm.
We must work harder
ment do this or that I wonder why —cut costs—save more.

in the present

—

our

the

Government

economic fact of

time

for

!

almost 30%

through government in¬

sponsibility and

our

All cry for tax

pay

lost through inflation.
Inflation is the most important

single greatest peril to

made

we've made."

Of budgets and spending to ensure

dollar

to

affairs.

Debt management also has been

reduction, deficit financing, pump
priming—running to mother gov¬
ernment to, "Do something so we
have

grow,

a

and

technological skills'
depressing economic ac- that defy obstacles and frontiers.'
tivity and adding to unemploy¬ The future holds promise if only'
ment.
Foreign goods wilh enter we have the wit and discipline to*
our markets in
increasing quan¬ use them properly. And let us not;
tities with unsettling effects on our m
complain about our surpluses of ;

down

We are not likely to enjoy sur¬
plus revenues soon. Yet there is
no
greater thing Congress could
do to strengthen confidence and
create jobs than to adopt now a
long-range
fiscal
program * de¬
signed to reduce our national debt.

process

dislocation to

will

natural

process,

inflation

the

Ours is

market.

further

the

Debt

system by reducing taxes.
that

States

foundation

debt presses against it.

measures.

a

United

the

deficit

our strength until peace was as¬
sured, we prematurely disbanded
our

the

of

upon

programs.

when

resistance

on
a
long-term basis and
planning definite amortization. :
(D) Stopping the price-wage,
spiral and the abuse of credit.

debt

/::

,

,

which our solvency and se¬
curity rest. The strained condition
of our credit handicaps our ef¬
forts to cope with the recession.
We
must
prevent
any
further
weakening of it by tax cuts, or

This

the

of

Strengthening the creditby refunding the

of government

v
;
private credit. Its excessive growth, calculating tables.
/ .These -tables contain
ceived and sponsored works pro¬
every price
has been one of the major factors
at which mutual fund shares could'
grams should also be self-support¬
in our present difficulties and is*
ing.
■
^
? one of the weak links, in our eco-- be offered, within a range of $1 to
Self-help is the best help.
nomic chain. When individuaMn-. $100 per share. .: Obviously the
A nation, no less than an individ¬
variation between offering prices
debtedness alone rises above 200

concessions too much and
to
special
interest
We
mortgaged
future
generations by inadequate tax

II

out

Consumer

It

More effective than Federal
tion

soon,

jected

defense

our

uneconomic

too

meet all our defense requirements
and still provide all our needs,

our

is

manageable

Nor is this
on

and

secure

themselves

•

debt
and

government's

To reduce revenues before

defenses

our

groups.

sary

although maybe not all our wants.
While we can spend whatever
Is necessary for defense, prudent
management can provide impor¬
tant savings. ' We must learn to

to

deficit, add to the debt, and fur¬

first

manage

Thursday, April 3, 1958

.

.

(C)

who has no lobby or bar¬
gaining agent, is belatedly re¬
belling against having every wage
and cost
increase passed
on
to
him. If industry and labor con¬
tinue to push up wage, price and
profit
levels,
they
will
price
sumer,

;/!*■£ to cut-throat competition; with its,
the price wars and wage cuts. No.one

v/

increase

will

cut

defense

r
-

Government

cheaper
to
preserve
peace than to fight a war. We can

are

tax cut will gen¬

power a

The

Infinitely

but there

pur¬

and by

than the next man,
worse burdens.
It is

no more

the

erate.

inflation

invited

we

about

by controls too little and too late,

we

it cannot support the

defense program
mands?

all.

dubious

am

chasing

Korean War Errors

This

No economic program, no

social
so-called prosperity can

I

Condemns World War II and

This could be fatal.

na¬

expenditure, it is
lolly to talk of tax reductions.

pressure

Each seeks tax cuts or
fering of unemployment.
price increases or wage raises for
There is danger that our present itself while urging the other to
economic difficulties may distract make the sacrifice and with little
regard for the national interest.
us from the requirements of na¬
groups.

tremendous

a

tional debt and

our

our

sound economic

In the face of

tremendous

the

been

expenditures for war—for non¬
productive goods and services—
which were financed too largely

and ditures, in what is called a time
of peace.
It has put our price

in
the science
technology of modern arms.
supremacy

har¬

Folly to Reduce Taxes

ble for our mountainous

require.
fenses

has

cause

present circumstances

our

in

be

must

economic laws.

'

free from the

actions

with sound economic prin¬
ciples. Government cannot repeal
mony

Feai Is Oar Own
:

its

But

from first page

The Principal
t'

.

-

-

•

-

BEVERLY

HILLS,

Calif.—Leo

Jr., William N. McKean, Adolph E. Mora, LeRoy A.
Owens and William J. Reigel have

D. Bartelme,

joined the staff of Lloyd Arnold
& Company, 364 North Camden
Drive.
All were formerly with
T.

R.

Peirsol

&

Co.

Volume

187

Number 5730

Northwest

.

The Commercial and Financial Chronicle

.

.

continued

Bancorpora-

from, first

(isis)

flow

page

sider

Offering Underwritten

situation would not be

of record March 27,
1958, rights to
subscribe at par ($100 per share)

particularly different if the chal¬
lenge had been issued by a small group of men in complete
control under the
leadership of one man such as Mr.
Khrushchev instead of by a
single individual who has

for

taken it upon

offering its

106,430

shares

cumulative

I stock
of

Bancorporation

of

preferred: stock

shares

its

convertible

of

'

each

;-The

16

world's most

Bos-

■

Blyth & Co., Inc., '

The new preferred stock is con¬

vertible, on the basis of $100 per
preferred
share,
into
common
conversion

price of $75
per share. It is redeemable at the
option of the company at prices

I

a

decreasing from $105 per share, if
on or prior to June 1,
1£J6-1, to $100 per share, if re-

J

redeemed

i

inclined to shrug off this challenge by the
powerful dictator. If it were really a race

to be conducted. Whether decisions are in the interest

j nOn-reiundable at lower cost for

-

five years.,

-

of abundant production of the

vigorous recrudescence of New Deal notions since 1

the current recession set in—if indeed there had

capitalism-—for that is what the Russian
system is — and private capitalism operating under the
type of laissez-faire that is in the true American tradition,
we should
certainly ourselves not take the boast of the
Kremlin leader
very seriously. In that vast region now
embraced in the Soviet Union and
giving residence to up¬
wards of 200 million
people, a single man must make all
the decisions of
major import. It is his prerogative to say
how much of the resources and
manpower of the nation
is to be devoted to
this, that and the other type or class
of endeavor, and at least in a
general way how operations
are

| deemed after June 1, 1968, plus/
| adcrued dividends; the" stock is
I

are

Shrug It Off?

between state

April 14, 1958.

at

Many

:

will expire at the close of business

stock

the show alone.

The

offer,

^headed jointly by The First
Corp. and

run

Can We

which is being underwritten
by a
group of investment banking firms
ton

himself to

share

one

for

common.

4.50%

the activities of the Securities and
Exchange Com-"
mission, the Federal Trade Commission, the Federal Com- i
munications Commission, the Interstate Commerce Com¬
mission, the Tariff Commission, the Federal Power Com¬
mission, and many others now functioning in Washington
-—to say nothing of our tax laws—to find an answer to
such questions.
|

preferred

the basis of

on

is

stockholders-

common

through the hands of the ablest and wisest into the
industries, old and new? One needs only to con¬

various

tion Preferred Stock
Northwest

right things rests and must

rest, upon the wisdom of one lone individual and his im¬
mediate advisers.
.

much of

ficult to avoid
own

proceeds of the sale will
be added to the general funds of

This is true not

! the corporation and will be avail-

only of the allocation of

resources

been

ever

decline in their hold upon us—makes it dif¬

a

certain

a

feeling of uneasiness about

competitive position. Here is

Our i

long-term danger

a

much

more serious than
any that might grow out of what 1
the Kremlin could make of a
depression in this country.

Join Malibu Inv.

Peters, Writer Adds

(Special to The Financial Chronicle)

MALIBU BEACH, Calif.
gene

—

(Special to "The Financial

DENVER, Colo.

ald

A. MacFadyen, Marian MacFadyen and William J. MacFadyen
have joined the staff of Malibu

Buxton,

formerly

with

Hammill & Co.

1

WilfoYd In

—

X

Harold
T.

Gordon

Meyers

Speckman

are

and
now

associated with Peters, Writer 8s

Investment Corporation, 23656 Pa¬
cific Coast Highway.
Mr. Durand
was

|

Chronicle)

Eu¬

Durand, Ruth Fryling, Don¬

Christensen, Inc., 724 17th Street.
Mr.

ghearson,

Buxton

formerly with

was

Cruttenden, Podesta & Co.

Net

I

n

"

and

manpower as between arms and civilian

products, but also
application of such resources to the pro¬
of things people want and the investment of
?to, siLUiatcd/banks; f ronr/ time- to /
materials 'mid labor in plant. It is likewise Vtlie
way that
j titneS;hnd fbr^^ other? purposes: Tt is/
the division of effort is made as between the
j presently" contemplated that $7,many various
i 000,000 .of the proceeds will be
kinds of producers and consumers
goods. It is true, of
]-invested! in the capital stocks of
course, that this same Mr. Khrushchev has been insisting
/ affiliated banks;" :'..
;;////•;•/
upon a yery. considerable decentralization in/the manage¬
1/v'l Northwest Bancorporation holds

l able, together with

other funds,
to provide additional capital funds

']

between the

as

duction

.

? in

the

asset

ment of various state

95.9%,

aggregate

tangible

in net
of the out¬

value,

standing

stock of a group of
affiliated banks, which with

23

branches

undertakings—which in Russia con¬
stitute j list about everything in the land. This decentral¬

of

86

located

are

in

cities and towns in

a

76

total

ization is, however,

plainly confined to details of manage¬
operations/and is much less thoroughgoing, we
may be sure, than corresponding policies and practices in
our own
private capitalism. These tasks that Mr. Khrush¬

ment and

Minnesota;

Iowa,; Nebraska, ..South

Dakota,
Dakota, Montana and Wis¬

North

consin.

The

affiliated

banks

chev has taken upon himself are too
great

had

combined

deposits of $1,689,032,487 (before eliminating group in- '
terbank deposits of $59,654,776)
and combined capital accounts of

for any man
We do not believe that such a system
can
hope to compete in ultimate results with a really free
private capitalism.
or

any group

of

men.

.

v

$118,559,542 at Dec. 31, 1957. The
largest

bank

in

Northwestern

Minneapolis
of

thus

of*

depend

had

deposits
capital ac¬
of $33,130,832 at Dec. 31,

counts

and

;

good deal more in the matter than is
only must the wisdom of decisions
man, or a very small group of men, but
a

SIGNIFICANT

During 1957, The Hertz Corporation

do

the

work

in¬

leasing operations continued to expand. Net earnings,
and Earnings per share, were the highest in the
history ot
the

Corporation. The Hertz Corporation recognizes the

filiated

.

to

$68,258,207 and net operating
1 earnings /after
related
income
I taxes,
before deducting minority
\ interests, to $12,614,000. This
f pared with gross operating
I ings of $61,593,189 and net

supreme

power

car

leasing, truck

leasing customers. Hertz looks forward to,

still greater expansion of its services and increased
repre¬
sentation in the United States and

throughout the world*

in the Kremlin to talk about local

autonomy
moment

com-

earn-

or decentralization, but who supposes
that it will not be
required that the

for a
"ideology"

ANNUAL

REPORT HIGHLIGHTS

/ ///•

of Marx and Lenin be embodied in all that is done? Who

oper-

xe»

effort to the improvement and refinement of its service to
aft

rental and truck

the

doubt that the rewards

i

| ating earnings of $12,477,000 for

can

j 1956.
■ :
:
|
Among- those associated ~ with

go to those who prove their party
ical dependability? Whatever else

OPERATING

is not the

EQUITY CAPITAL

$26,322,511

$20,814,580

$13,696,414

NET INCOME BEFORE TAX

$ 7,732,725

$ 6,146,862

$ 4,477,447

The First Boston

Blyth
!

Corporation^ and
Inc., in the under-_

Co.,

&

writing

Piper, Jaffray & Hopwood;
J.
M.
Dain
&
Co.
Inc.;:
Merrill Lynch, Pierce, Fenner &
! Smith;
Smith,
Barney
&
Co.;'
are:

White, Weld & Co.; Kalman & Co.,\
Paine, Webber, Jackson &
Curtis; and Dean Witter & Co.

Inc.;
.

c-

sponsibilities of leadership and continues to devote every
ever-increasing number of Hertz rent a car,

simply call not exist in a system such as
obtaining in Russia—not in any .degree comparable
to those
normally to be found as an integral part of any
system of free private capitalism. It is all very well for

and truck rental

car

and

Not

upon one
incentives for the individual who must

OF

GROWTH

that

-Gross operating earnings of af-"
banks for 1957 amounted

; :

[

indicated.

YEAR

volved in all this

%'/" ;/■

| 1957.
!

which,

is/

Baak

National

$450,119,072

But there is

group

the

1957-A

'

'

.

"■

*

""

**

.

■

.

'■■■

/■;

.,

Investors Custodian
■

.

:

(Sppcial tO-TKB

.

Financial. Chronicle)

-

LA CANADA, Calif.—Investors

Custodian
formed

Corporation

with

offices

business.

has

John

been

5125

at

heart Drive to engage

ties
is

*

Las-

in

S.

a

securi¬

Robinson

President, and Joseph Hender¬
Vice-President of the firm.

son

;

duction from

Axelrod
ties

is

name

from

Parkway
of

—

engaging in

business

Ocean

Y.

Nelson

a

securi¬

offices

under

Continental

at

the

10

firm

Investment

Co.

Forms Pansiatic Sees.

business from offices at 215 Hud¬
of

women.

//.

But before

we

Ratio to

Forget

dismiss this

challenge of the Kremlin
as
fantastic, ~jet us remind ourselves that in important
respects we no longer have a fully free and unfettered
private capitalism in this country. Even as things now
stand we, for our part, have little doubt about our
ability
to meet such-a
challenge from the head of the Russian
state. We shall, however, .not do
nearly as well as we
could were we still
following the American tradition
faithfully throughout the land, and what assurance have
we that the
"ideology" that Franklin Roosevelt bequeathed
us, will not lead farther and farther from the straight and
narrow
path laid out j}by our forefathers?
certainly gone far enough astray already in
directions. Is the proportion of our material and

human

resources

devoted to

agriculture and its production
now
determined by the natural forces reflecting them¬
selves through the markets? To ask such a question is to
answer

it. What about the financial rewards which

REVENUES...

Street

under

Pansiatic

the

firm

name

Securities.




/;;;

$44,911,34#

9.6%

9.7%

10.4%

29.4%

29.5%

34.2%

$ 5,696,725

$ 4,781,862

Ratio to operating revenues....

7.1

$

3,096735

%

7.5%

4.9%

21.6%

capital

23.0%

22.6%

NUMBER OF SHARES
OUTSTANDING

1,976,930*

1,819,925*

EARNINGS PER SHARE...

$2.88*

$2.63*

$1.85

CASH

$1.10

$1.00

$ .90

5%

5%

—

AT YEAR-END...

20,303

14,949

10,054

AT YEAR-END..,

14,070

13,138

10,949

34,373

28,087

21,023

DIVIDENDS

STOCK DIVIDEND

1,670,793

.V

PASSENGER CARS
OWNED

TRUCKS
OWNED

TOTAL VEHICLES
OWNED

AT

'

YEAR-END...

*Before giving effect to year-end stock

were'

giants of a generation or two
ago? Obviously, they no longer are available in anything
like comparable degree. What is there left to persuade
vigorous, imaginative men and women to pioneer in the
way that Mr. - Rockefeller, Mr. Ford, and hundreds of
others did a half a century or a little more
ago? Who
decides whether and in what degree private funds will

w39

$63,691,113

revenues....

NET INCOME AFTER TAX.,

Ratio to equity

1956

$80,698,657

capital-........

operating

Ratio to equity

dividends.

"

1

available to the industrial

IIOBOKEN, N. J.—Albert En¬
gl cm an is engaging in a securities
son

and

Lest We

many
N.

men

We have

Continental Inv. Co.
BROOKLYN,

throughout all industry will
loyalty and their polit¬
may be said of it, this
way to get maximum: effort or maximum pro¬

1957

_

For copies

of the annual report, write: Treasurer, The Hertz

Corporation, 218 South Wabash Avenue, Chicago 4, Illinois

THE

H^RTZ CORPORATION

World's largest car

and truck renting and leasing organization

The Commercial and Financial Chronicle

2&-->(1516)

Continued

to

from page 17

compete

in

that the

mean

will

all

It

areas.

industry

Coming Year

In connection with the promo¬
electric
companies to locate
where transportation costs of coal- tion of America's coal markets
be minimized is a symptom of shall it be said that in research

of

entire national

business fra-

ternity's efforts to keep cost incost of producing energy in con- creases within the limits of deventional fuel plants and in nu- creasing price margins. The bituclear installations, released by the minous coal industry must take
N

t i

a

analysis of the

1 Industrial Conference

o n a

every

step possible to reduce its

tal of 3^0 million kilowatts. Based Board, shows the following:
costs of operation.
1970 is in the neighborhood of on es(timatecl kilowatt-hours, nuFor small power plants, that is,
Unfortunately in a major cost
million tons, or an increase clear poWier is expected to furnish those with a
capacity under 50 category, that of transportation
The most likely figure

be taken.
for

industry will continue to play

our
a

poor

and

plants of this size will range, according to age -and efficiency,

ing spent to promote nuclear en¬

To the last, for example,
being devoted several hundred
the $1.25 million estimated

ergy?
is

times

for coal.

Though statistics are useful and
While nucleaf energy will
to any realistic analysis eventually have some impact on
of past 'and
estimate of future • all fuels which are competitive in
trcnds, they can be misleading as the energy market, coal s ability

having costs of 10 mills and under.

necessary

'

vv oaa

.

*

wy* ***&♦/

have used this far

point

,

i

-

.

-

nrob-

is

"•

i

1 here are

basic case of either gas or oil.
,n"
"

thls'
this.

First> coal
First,
reserves generally are larger than
particularly those? aspects of it
in the instance of other fuels. The
Which are of most interest to those
coal research study to which ref¬
who produce and distribute bitu¬
erence previously has been made
minous coal.
We have seen our
of

soundness

two

and

economy

our

presents statistics to show that of

production fluctuate widely over

estimated

total

the

the years. Our industry
has ranged from deep

—

recoverable

mills

-

of

the

to

4

mills,

number

of

with
plants

For the same year> larger plants,
5g
or m0re, show an
equally strong story for coal. Nu-

least

negated the cost
economies effected by the indus¬
try.
This situation cannot con¬
tinue indefinitely. Much railroad
coal traffic business has already
partly

.

neen aiveriea to irucxs or waier-

The fact that the heavy coal

ways.

4i,„

i

_i___

tuoia

CbUIlldLCll

die:

All of the basic factors and re¬

lationships which make possible
the continued growth and eco¬

dt

J.O

n

..

ovuuviuao vw*. —»

ivuu^ouva "o

^health of the bituminous
present. To se¬

coal industry are
cure

maximum usefulness of .these

sound coal economy,
must be recognized

to support a

three
and

steps

These are:;;

taken.

-

(1): Development of r organized
and accurate knowledge about our
;

and its competition.
more; statistical in¬

i n dustry

There is much

available on the tech¬

formation

s^eam piant over 8 mills,-and
93.3% of 6-mills or less.

riers, are excellent money makers
has not prevented'the Commission
from bailing out the big eastern

nical than the

1080, small nuclear plants

foad? which have a large caal

(2) Careful analysis of each of
the markets for coal, with atten¬

mjus

As to
will

kilowatt-hour with

per

produce

at

around

no

mills

10

kilowatt-hour,

while
small
conventional plants will again
range from 16 mills to 4 mills. The
per

.....

.

,

barometer
fossil-fuel reserves of the United spread is a little
pessimism
optimism. We are states, coal accounts for 84%, oil P?r cost ranges,

restrained

to

for

reasons

64.3%

ii

ably stronger unm is true in me

intended to

long-run

the

out

are

*

r-nmnetition

Ihis

itipp!

tn

T

Um.

16

from

mission in the last two years, have
at

third to natural gas and oil

be far under in the sums be¬

nomic

growth of 18.6%, the tremendous some
strides in electric power and light therefore be displaced by 1970.
consumption expected in the decpn«ifi«n nf rnal
ade of the sixties become obvious. * !
,
Better PosU,on of Coal•

ii

Thursday, April 3, 1958

.

.

can

the

;

A recent careful

In the

does

whole

as a

be competitive cost wise with

nuclear energy.

Prospects for Coal

300

.

\

.

.

_

ji

wider in the up¬

hut the general

traffic, m the absolute, if not the
Native, sense.

other

Finally, markets for coal
in

view of the next
decade and
beyond.
Some feel
that the railroad market will have
any

our

as

^

.

-/

■,

.

losing markets as well

tion to our

major growing ones.

.(3) Examination of

than those discussed must be con¬
sidered

economic aspects of

the industry.

.the possible

impact on coal of future potential
competitive energy sources, such
as
nuclear power. *
All indications are that the coal

from oil shale 12%, and petroleum Picture is still about the same, to be written off as largely lost.
ao o% each
with 62.8% in the 10-mills-andThe rail carriers are almost com¬ industry will have at least ten
decply concerned over the in- and natural gas z /o cacn.
under
bracket
With
reeard
to
rtftids of natural gas and oil and
Recognition of the disparity in iar„er Diants nuclear nroriurtinn pletely dieselized, a development years to solidify its gains and to
of some
10
are now wondering as to the posyears
of transition. prepare for the nuclear power age.
fuel reserves is made in a recent ;
petimated 'at ft mili« and
mn
There is a remote possibility that These years must not be wasted.
aible impact of nuclear power on paper of Mr. Marling J. Ankeny, vpnRnnal
at
nnt
over
ft
mill
railroad electrification may be re¬ Preparation will require the best ;
cales to our largest customer the Director, Bureau of Mines, U S.
However, even in 1980, 90.2% of
vived and thus through the elec¬ engineering, marketing and ecoelectric power industry.
All re- Department of the Interior. He the
plants could match the 0 mills

constantly*
coiioidnuy

aYc

and
diiu

w
h i n g
wdtuiuig

are
cu.u

.

„

industries, such as ours,
highly competitive market
where
non-replaceable
reserves
eource

Sri

says:

a

involved,

are

are

anxiously

iQ

aDDreciablv

probable decreasing availabilNo Threat to Coal
ity Gf petroleum and natural gas J it is fair to say that nuclear
to meet the increasing, or even the
power poses
no great
threat to

longer.

present needs for power genera-

coal,

in

even

1 sl,loulcl,.J0 rePeat dle figures
at the conclusion

Nuclear Fuel Outlook

to

ness

<qn view of this statement as to

pro-

if these

1980,

be relied

to

are

busi¬
consid¬

tric industry give additional

better

the

jecting trends into the next decade
or

or

cost

upon.

coal.

However,

a

erably better prospect lies in the
experiments being conducted by
the Locomotive Development
a

,

,

,

markets

.

,

,

now

are

,

tive'power" AfteTaVexStive

part™"^this

nHcJca!LPower in

1960-1980

The

period.

of

range

erations

and

on

enS ?i es^lma^es is surprisingly technology of

emall through 1970, but becomes
considerably greater later on. Ex-

from this

pressed m millions of electric

purposes for

kilowatts,
are

i

the

,listed

There

fenent

five-year
Table III.

in

is

fairly

natural

periods

general

advances

in

power production,
Petroleum and*

source.

will be used for the

gas

which they are more

coal."

agree-

to the picture in 1960 and
Five of the six experts es-

r

a

and

second

potent

reason

perhaps

why coal's

more

future

itimated exactly .8 for 1960, with looks bright is the increasing effithree out of five giving 4;0 as
i.
ciency ui cucii u&eu 111 liio piuauc^citnuj* of coal used in the produc,

..

.

»

^

jtlicir best cstiixiRtG foi 1965. How*'
tio 11

nuclear

on

power

greatly
areas

is

long

of

varies

of

^lGctripitv

an

average

momr

as

the

nuclear

field

is

i

of

_n

duction

.i.„i

of

or

almost all cost data

pect.
,

..u..

newer

quasi-public interest and support cient electric
Hall

Currpntlv

of 0 94 Ws
coal to generate one kilowatt-

takes

in
Tn
"
in r»nnplii«ir»nc
conclusions.
In many hour of
electricity for the nation's
the experts differ widely,
power companies.
This figure is
tempted to conclude that as expected, to fall with the intro-

ri'Pfltlv

One

^ tioii

useful and usable inform a-

ever,

..

»

and

more

effi-

capacity The
coal research report tells of the

are sus-

power

newest

c

The next ten

years

electric-power generating
unit, said to be the most efficient
ever
built, which requires only

should show

little competition to coal from nuclear power.
The governmental

0.64 pounds of coal to produce
just re- one kilowatt of electricity. The
Serred to, when compared with re- report adds that this represents a
cent estimates made by the Mc- little more than half the amount
Craw-Hill*. ;Department
of Eco- of coal required to generate the
nomics, indicates that at least same amount of electricity in 1950.
report

on

coal

research

through 1970 the impact of nuclear
power upon the coal
enouia
should

be
oe

quite
quite

By

clear power

{aE^ iE-J
1960-1970

high cost nu¬
in North America
un¬

attractive market in the world.
"The

potential

nuclear

power

market in the developed areas of
the world outside North America

distribution

in

1957.

but BCI data and those from

other

industry sources may soon
available to show the nature

be

and extent of this market.
"Other
same

industrials",

classification

by

period does not begin to look at-

number

the

.

.

.

The size of

merce

United States market for

nu-

markets

as

so

coal.

.

„

,

,

The

Vt.— Mr. and
Talbot, part-time
Vermonters for over 20 years, will

uncertain

1970

This

manager
Before

Mr.

Hanly.

steel

TABLE m

are

as

electric

profitable

or

power

and

suffer losses

to the extent that their customers

High
i

.5,0.,.
4.5

27.0,
88.9
227.0

Low
0.8.:
-3.0

Average
.1.5

15.3

20.0"

57.0

42.0

wares.

3.9

9.0

,128^'

make money

"

,

costs

and

reduce

these

possible opportunity.

at, every

The

moves

for several years

'

/

r-

at

-

worked

:
with

her

Edwards & Hanly as

registered representative^ With
branch,
she will continue to be one of the

a

W. E. Hutton's Burlington

nation's

relatively

ever-to be a
tive of

to

.a

few * women
registered representa¬

stock exchange member

company

Edwin A. Merrill

of the underlying influences are

i.

economic. A falling off in the ex-

Edwin A. Merrill, limited part-1
port market, unless matched by
.ner in Paine, Webber, Jackson &
a
production cutback can easily
Curtis, passed away March 24. "' lead to marketing developments

in selling their own
These "derived demand"., in the United States which

industries, • and coal is a mon'g
them, must carefully control their

was

Mrs.. Talbot
husband

s;derati°]l is that eJer
the 12^ of °ur ^tal bituminous coal
c!°se of,th? ^ar' and certainly no production. There is in this case
change is to be anticipated in the also a need for a thorough analyiu mc disu d iictu iui d
Jost basi^ years. a^ad, Amencan business- sis of the market-a market which,
subject

Talbot

partner of the New york Stock
Exchange
firm of Edwards &

Yet in spite of

is

,

Burlington Branch
of W. E. Hutton & Co.
their move to Vermont,

a

of nuclear
nf m,r»iAQv power in the relativelv

respects,

repre¬

announced by Edwin

was

Blakely,

H.

u

utility market for its fluctuations and its dependence
bituminous coal for the next dec- upon both political and economic
ade and even beyond should ex- factors,
it has proven a major
pand and not contract. A factor market for American coal. In 1957,
which must be given strong con- for example, it drained off nearly

many

investment

registered

as

sentatives.

electric

in

state

join the Burlington office of W. E.
Hutton & Co., 210 College Street,

is Very heavv subsMizntion

V! +1^

permanent' residents' of
this week when they

become
the

Oil and gas pro-

one.

BURLINGTON,

Mrs. Edward A.

The export market for coal is

an

secured by

Talbots Join W. E. Hutton
,;;

of

many

i

,

be

prich 8c. Co.; Baxter & Co.: Free¬
man & Co.; Ira Haupt & Co.; McMaster Hutchinson & Co.; Wm. E.
Pollock & Co., Inc.; and Shearson,

clear Power generated at costs 111 ducers, for example, are much
excess
10 mills/kwh is less than better informed.
...
t<rtal United States generaCoal Exports
11 m 19 <0.
Expanding Electric Market

is to

issue

all-steel gondola cars esti¬
mated to cost $9,625,077.
Participating in the offering are:
Dick & Merle-Smith; ft. W. Press1,100

little about their

.

Commission.

The

except that it covers a large

country know

.

yield from 2% to 3.65%, accordto maturity.- Issuance and sale of
the certificates are subject to au¬
thorization of the Interstate Com¬

tractive .until nuclear power costs which are good coal customers,
can be pushed down into the 6-toFew important industries in this
U~
™
9-mill kwh
range

& Nashville RR.

equipment trust certificates, series ■
S,
maturing $513,000 - annually •
April 15, 1959 to 1973, inclusive.
The certificates were priced to

little about this "catch-all" cate-

industries,

of
3%%

$7,695,000

offered

28

Louisville

the

gory

of

of an underwriting group on

March

the

in North America in the 1960-1970

market for nuclear power

Stuart & Co., as man¬

Haisey,
ager

Hammill & Co.

using

used

Bureau of Mines, still offers a substantial market for cohl and one
which is holding up fairly well,
Here again, we know relatively

.

dustries




coal

dicates that this market is shrink-

completely overshadows the pcj|
tential market,dn underdeveloped
areas in the years ahead, at all
cost levels.
The

._

1980-

minous

There is much evidence which in¬

^.nl}ed States) in the jng,

period is the most

nuclear electric-generating capa- near
future, on a pure
foilitv is expected fay snmp PvnArtc
Z.-11
ioasis
bility is exnected bv some experts coal will be competitive well be- men in the 'derived demand" industries have been
to reach 12.3 million kilowatts, or
yond 197Q. This, of course does
. ndYe
*>een -—r /"
3.8% of the electric industry's to- not mean mat coai will be ah?e l
mean that coal will
.power
,cut costs. Such inbe able

1965___„.

Haisey, Stuart Group
Offers Equip.Tr. Otfs.

There is little doubt that unless

industry there

small.

"The market for

the

singularly suited and less for purposes
that can be supplied by

as

11965.

forpowS sUldy 0f the subject' the author
concludes that:

will depend on economic consid-

.

growth in the economy.

of future

ireful

.

•

fair share

able,,we should get our

through BCR to de¬
coal-fired turbine to rc-

True 1980 calls for an exccedinelv Place the diesel unit on the same
statement made
highly of the discussion on coal. '..
It is
lookatthecrystM balfa chassis. This has been thoroughly
competitive with natural gas and apparent that adequate coal re- The men who should know nu- tested on a stand and will be much
oil, and in the not too distant fu- serves are readily available to clear
scientists, economists and
costly to operate than the
;iure nuclear power may offer meet the anticipated growing engineers, feel that although nu- diesel. In the face of increasingly
come competition in areas where
needs of the electric power indus- clear power may eventually lead keen competition from the airlines
and the motor carriers, it is, of
fEfn to be relatively high ac- tryancl all other demands during to substantial displacements of course, quite possible that the to¬
S
;tends
the next twenty, to twenty-five conventional fuels, such a devel¬
"
'
■
tal railroad requirement for mo¬
cording to some government and years.' We may look forward to a
opment is many years or even
tive power may decrease consid¬
Industry authorities. Suppose we shift from the petroleum - and decades
away.
famine the probable nature and natural gas that now contribute
erably in the years ahead.
Conclusions reached by nuclear
extent of the nuclear fuel market about 30% of the fuel for electric
Another coal market which is
power experts concerning the fu¬
In the period from 1960 to 1970.
sagging is the retail market. An
generation to increased use of ture of this form of
energy can
JLess than six months ago a spcinteresting aspect of this market
eoal, but there will be adequate best be
represented by the followcial Congressional subcommittee,
supi;lies of this latter fuel and ing extracts from a paper recently is that we know so little about its
Interested in coal research, assize and nature. Some light may
they should be available at prices
ccmbled all of the estimates avail¬ approximating those of today. The
be thrown on this when the Bureau
able by experts in nuclear power roie 0t nuclear
of Mines commences to analyze
energy in supply
«s to the installed capacity to be
its recent questionnaires on bitu¬
ing
,

^

Coal

made avail-

If these are

shalled.

Committee

velop

which can be mar¬

skills

nomic

are

far

from healthy for the industry. The

European potential market for
American coal is large enough to
merit careful investigation..
.

-

rciiiarles S, Pettengill*oL Coffin;
Incorporated, passed away.

& B urr„

March 22.

-

~'K

,

Volume 187

Number 5730

.

.

The Commercial and Financial Chronicle

.

(1517)

•

This Week

Am, Tr.
An

Bank Stocks

—

prime argument that many investors have used as a reason
should we say, excuse—for avoiding the New York City bank

stocks for investment purchase has been that operating costs were

mounting against them sufficiently to make them unattractive. The
banks have had rising costs of doing business, as have all lines of
industry, but like other industries, they have been pretty much
able to control them and have
costs

out of the inflation period with

come

relatively well in hand, and with decidedly better profit

margins.

And, pricewise, during the current recession in business activ¬
ity, the banks have given a satisfactory account of themselves.
Indeed, they constitute one of the groups to which investment
money has gravitated as a comparatively safe haven, and justifiably.
The accompanying tabulation shows, first, for the years 1955,
1956

and

1957, the carry-down from gross income to net before

income taxes for the customary group of the New York banks; and,
secondly,. the 1956 and 1957 amounts of interest paid out, which
constitutes one of the important cost deductions from gross income
to arrive at the

Corp, Offer

underwriting

group

„

A
—or,

eral

Underwrite General

By ARTHUR B. WALLACE

_

man-

.

by over 2,000 railroad freight cars,
mostly tank cars, costing over
$22,000,000 and built by General*
American Transportation Corp.

Carried Down to Net Before

Income Taxes

,

Trust—

Bankers

47%

(OOO's Omitted)—

s

46%

47%

$2,751

44

49

48

Chase Manhattan

45

46

47

17,656

24,152

Chemical Corn

40

43

45

3,952

47

First National City—

At

45

will retire the entire issue
by ma-

turity.

The

certificates

redeemable

except

46

48

19,996

66

2,833

52

54

54

2,472

J. P. Morgan & Co.—

48

47

4,200

mgs
on

36

38

9,978

13,163

50

51

2,333

to

5,503

36

Trust

*,>■'

II

||

p

Exchange

can

set

rates

substantially less than the mileage

■>.

New Y,or£ Stock Exchange,

an- give the

q£

tmrl

investing public outside
nounced that Paul A. Callahan is
the metropolitan areas the oppor¬
l^ow assc>ciated with the firm in
tlie syndicate department.
Mr. tunity to keep in touch with
Callahan formerly was in the cor- market conditions and in addition
°i Porate .bond trading department afford them an immediate report
used

are

for

non-

sinking

will

be

Union

Securities

Corn

1957

With J. M. Dain

company
earned
6.02

were

for the

earn-

year were the

largest
record, amounting respectively

$222,713,887

and

$15,745,456,
$196,636,391 and

on

transactions

effected

on

which

the

Stock

ticker

service

they have

Pacific

Exchange.

We

be

may

Coast

hope

our

extended!

to other Western states in the near

31, 1957.

charges of the

times. Gross income and net

2,568

49

Irving Trust
Manufacturers

Fixed

3,705

Bank

of Dec.

as

25,391

65

Ai u3ll3H3ll Willi

■■

the

for service anywhere in California

lilSlL

C

rcrtifirabU
certificates

during

64

A

expended

As

f49

Guaranty Trust
Hanover

46

tem

II

-

5,440

Empire Trust

The company man¬

oT^the*coim^MtioIf forhfh treasfUl5p more recently with the underwrite
such cars'
approximately $21^000^- j?0g dePartment o£ McDonnell &
000 of which had been

$3,710

Bank of New York-

United States.

rates previously in effect.
As a
sinking fund providing for
ll3llG & wtlGfijltZ
result we expect to install many
the annual
redemption, at par and
0+.
..T,,
accrued
dividends, of $1,000,000^ Stieglitz, 52 Wall Street, additional tickers in cities
principal amount of certificates Ifew Y. 5 9.1, y\ m^mbers of the
throughout California, which will

the
he

Interest Payments

Exchange Now
Operates Own Tickers

A

TM7>f

Percent of Gross Income

"

Coast

American

Exchange, has announced that the
aged by Kuhn, Loeb & Co. yes- ufactures cars for its own
fleet
operation of the Exchange's ticker
terday (April 2) offered to the and for sale to others.
It
also
public
$20,000,000
of
General owns
and
operates
the
largest system has been taken over from.
American
Transportation
Corp. single aggregation of public tank Western
Union, which procedure
4Ys% equipment trust certificates storage terminal
facilities in this is similar
to that of the New York
due April 1,
1978, priced at par country and in addition furnishes
Stock Exchange. Mr. Naley said:
and accrued dividends.
to industry, a diversified line of
"In operating our own ticker
The certificates will be secured products and services,
sys¬

fund purposes.

bank's profits.

.'*•»

%

principal activity of Gen¬
Transportation is
the supplying of freight cars to
railroads and shippers, the com¬
pany owning and maintaining for
this purpose the largest
Frank E. Naley, Chairman of
privatelyowned fleet of freight cars in the the
Board of Pacific Coast Stock

Kubn, Loeb Group

Bank and Insurance Stocks

*

The

29

future.

MINNEAPOLIS, Minn.
ward

C.

Danielson

Ed-

are

made after the close of East-

become

has

Incorporated,

expanded service is
important when news
affecting security prices

releases

em

Exchanges, since the Pacific

—

associated with J. M. Dain & Company,

This

extremely

(Special to Tuf, Financial Chronicle)

110

South

Coast Stock Exchange is the only
major Exchange in the Nation

2,822

47 ;

-

,

New York Trust—-

54

55

49

48

s

54

United States Trust—

compared

with

$13,591,382 in 1956.

Sixth

Street.

with John G.

He

was

formerly

Kinnard & Co.

between 12:30 and 2:30
(California time) each day."

open

p.m.

\

47

."'Not stated

Seven

of

In annual report,

these

banks

FOR HARD TO FIND

tliicludes City Bank Farmers Trust Co.

showed

higher proportion of gross
income working down to net before taxes. Two showed no change
percentagewise in 1957 over 1955; four showed a lesser proportion
a

QUOTATIONS

SUBSCRIBE TO OUR MONTHLY

filtering down to net.
It is to be noted that the large chain, or branch, systems not
only have larger interest costs, but also reported, generally speak¬

ing, the larger increases of interest payments from 1956 to 1957.
branch system banks vigorously campaigned for thrift, or
savings, deposits, and on these they are in competition with the
The

BANK & QUOTATION

savings banks and savings and loan institutions.
these funds had the advantage of supplying loanable
The tabulation brings out the fact that costs of doing busi¬
ness were, on average, not in a mounting trend in relation to
gross
income,, and this despite the fact that the interest load had become
disproportionately heavy for most of the banks. As the labor factor
is a relatively big one in the banking business, the banks, in order
But

money.

WE GIVE
STOCK EXCHANGE

QUOTATIONS

to combat

it,, turned to an important extent toward mechanization
Who, receiving dividend checks, for example,
has not noted that so many of them go through the punch-card
machines. Here, of course, the initial costs are high, but the longterm savings in costs of operation are also substantial.

AMERICAN

of their operations.

DETROIT STOCK EXCHANGE

that has tended to keep labor costs of the banks
mounting too rapidly is the absence of labor unions in the

It is probable that if the banks

would be somewhat greater.
!

'

:l
.

were

unionized

PHILADELPHIA-BALTIMORE STOCK
EXCHANGE

EXCHANGE

EXCHANGE-BONDS

costs

(/

......

PITTSBURGH STOCK EXCHANGE

GENERAL QUOTATIONS

h;>

•

,

.

NEW YORK STOCK EXCHANGE-STOCKS
PACIFIC COAST STOCK EXCHANGE

MIDWEST STOCK
NEW YORK STOCK

One factor

industry.

EXCHANGE

BOSTON STOCK EXCHANGE

"

from

STOCK

•••

BANKS AND TRUST COMPANIES—

First Quarter Forecast

•

Bank earnings for the 1958 first quarter appear to be headed
about 5% to 8% higher than in the 1957 period. The effects of the

•

capital entry and not
One

more

operating

an

same

may

measure

instances

reason

of

said

insurance for the current

for increases.

either

rates,

RAILROAD STOCKS
REAL ESTATE BONDS

REAL ESTATE STOCKS

INDUSTRIAL BONDS

•

•

UNITED STATES GOVERNMENT

SECURITIES
UNITED STATES TERRITORIAL BONDS

well

Not only
give a

in

•

INDUSTRIAL AND MISCELLANEOUS STOCKS
INSURANCE STOCKS

OTHER STATISTICAL

to

or,

RAILROAD BONDS

•
•

INVESTING COMPANIES SECURITIES
were

group of stocks.

be

BONDS

UTILITY BONDS

FOREIGN GOVERNMENT BONDS

one.

of the 1956 total for the

excess

PUBLIC UTILITY STOCKS

•

FEDERAL LAND BANK

Another item that will

thing is dividend payments. These in 1957

that, but the low pay-out ratios

in

decided

PUBLIC

•

EXCHANGE SEATS

tend to keep bank profits up is profits on securities, although this
a

CANADIAN

CANADIAN

prime loan interest rates was, of course, not
felt at once when reductions were made; and it may well be as late
as next
July when the full effect is evident in its impact on earn¬
ings. But not all interest rates necessarily give way when prime
rates do. Mortgage rates, for example, tend to change but little, as

is

,5

DOMESTIC

EQUIPMENT TRUSTS (RR.)

recent reduction in

do business rates for small loan accounts.

?

MUNICIPAL BONDS-

DOMESTIC

a

few

INFORMATION

•

CALL LOAN RATES

PRIME BANKERS' ACCEPTANCES

•

.

early to sell the bank shares short!

NATIONAL

Christiana

GRINDLAYS

on

Members New
Members

Terk Stock

Exchange

American Stock Exchange

120 BROADWAY,

A.

Teletype—NY 1-1248-49

Gibbs,

Manager Trading Dept.)

Spocitdimto in Bank Stock*




NEW YOHK

London Branches

.

:

SUBSCRIBE

13 ST. JAMES'S SQUARE, S.W.I
54 PARLIAMENT STREET, S.W. 1
Bankers

to

the Government in

:

ADEN, KENYA,

UGANDA, ZANZIBAR * SOMAULAND PROTECTORATE

cs

25 PARK PLACE

Head Office:

NEW YORK 5, N. Y

Telephone: BArclmy 7-3500
Bell
(L.

VOLUME OF TRADING

LIMITED

26 BISHOPSGATE, LONDON, E.CJ
-

.

MONEY MARKET

AND
WILLIAM B. DANA CO.

Request

Laird, Bissell & Meeds

BANK

FOREIGN EXCHANGE

SECURITIES CALLED FOR REDEMPTION
TIME LOAN RATES

Alma/gamating National Bank of India Ltd.
and Crindlays Bank Ltd.

Securities Co.
Bulletin

OVERSEAS

DOW, JONES STOCK AVERAGES

•
•

It still appears to be too

.

TODAY

I

for

D

wish

to

one year

7, N. Y.
subscribe

for the

to

sum

the

Bank

&

of $40.

Name

Branches in:

Address

INDIA, PAKISTAN, CEYLON, BURMA, KENYA,
TANGANYIKA, ZANZIBAR, UGANDA,
-

ADEN, SOMA TIL AND PROTECTORATE,

NORTHERN AND SOUTHERN RHODESIA.

|

City—

Zone

State.

Quotation

*4

30

The Commercial and Financial Chronicle

(1518)

The financing .of our product
factory to consumer is so
important to all manufacturers
that I can assure you they'll all
aid any effort you might jnake to
.

from

become
field.

in

effective

more

this

But

wholesale
the

the

most

his

dise.

to

duced net income more than nor¬

mally.

1957
net
income
$5.36'
a
common
compared with $6.65 a
1956 and $5.79 a share

For

amounted
share

as

share

to

in

in

is

to

interesting
in

that

order

the

note

report

annual

its

in

company

stated

more

accu¬

show current financial
Jesuits,
several
changes
were
made in their method of account¬
rately

and

to

deposits

special

at

assets
to

amounted

of

$980,665

31, 1957. Net
the latest date

of Jan.

end

at the
current

1955.
It

31, 1958, cash aggregated $5,007,950; temporary cash investments,
$8,326,531; and special deposits,
$1,504,661.
This compares with
cash
of
$9,507,979;
temporary
cash investments of $12,770,075;

$11,357,108

com¬

as

pared with a total of $11,619,744
a year earlier.
Last year a larger volume of
business

handled at the road's

was

Tidewater Terminals.

advances
and

charged

were

profit

to

not

loss and, therefore, were

reflected

in

"Other

income.

net

year

dled at the

record of 1,287
1956.
Tonnage

vessels handled in
figures for most

commodities showed

Deductions" included advances of

of

decline last

year

$1,701,000 to Pennsylvania-Read¬
ing Seashore Lines during 1957.
Similar advances of $1,600,000 in

a

1956

charged

were

and

to profit

from 1956 with the exception
which was the highest on
record. Improvements were made
ore

during the year to the covered
piers handling general merchan¬
dise.

loss.

Like

the

majority of the car¬
riers
in
its
territory,
Reading
earnings in the first quarter of
this year probably will be down
sharply from a year ago.
This is
because of the drop in steel op¬
erations and general business ac¬
tivity with the resultant decline
in the
shipment of coal.
Cur¬
rently, in view of the rate of steel
operations,
it
does
not
seem
likely there will be an increase
in the shipments of coal in the
immediate

result

a

these

of

im¬

provements,
revenue
from the
freight handled at these piers has
increased

39%,

operating costs of the road

The

Continued
*'

u.

from

page

the

with

experience of the other ma¬

jor railroads.
The total cost of
transportation last year was more
than

$109 million, an increase of
than $3 million over 1956.

jriore

The

operating ratio which had
77.87% earlier in the year,

been

compared

as

with 75.59%

period of 1956,

for

entire

the

in the

to 79.97%
of 1957. The
ratio was 78.71%.
rose

year

10-year average

11

i~

.

The Appliance Industry
vested

$150,000 for the express
purpose of finding the depth and
breadth
the

of

market.

our

It

was

extensive

most

study ever
appliance-TV field,
embracing interviews with some
10,000 homemakers and some 18
months of stikjy by experts to in¬
terpret their findings.
This job
yielded 19 volumes of material
done

in

that's

the

the Bible

sumer

now

in

our

con¬

products divisional offices.

On the basis of

it, we invested
$16 million restyling major appli¬
ances; we have reorganized our
marketing organization nationally,,
instituted a broad refranchising
program to strengthen our dealer
structure, and launched two tre¬
mendous
advertising - promotion
programs — the "Watch Westinghouse" project and the "Shape of
Tomorrow" campaign.
The

supports

survey

three

points:

First, surprising

it may seem,
the appliance-television industry
provides a steadier, more stable
market

dustry.

than

the

It lacks

and downs

as

automobile

entirely the

in¬

Second, it's
ket—98%

common

a

ups

to

of all

ing at least

tremendous

mar¬

households hav¬

major appliance;
35% of them having bought at
least one major appliance in the
one

18 months

immediately preceding
the survey; and 29% planning to
buy within a year.
Finally, it's a dynamic market
in part of highly sat¬
urated, standard items such as the
refrigerator and clothes washer

—made up

and

in the

in

preceding the
survey,
and those who bought
them accounted roughly for onethird of all dryers, room air con¬

ditioners, dishwashers, and wash¬
er-dryer combinations in use.
of

Also

importance to you, I
would call your attention to the
fact that appliance financing need
no longer be confined to the sin¬
gle
free-standing
appliance or
television receiver. Now it

clude

any

and

to

up

run

in¬

including

complete

a
whose

cost

can

anywhere from $2,500 to $25,-

000.

stand up in front of a
of specialists in finance—
such'as you—and tell you how to
operate.
to

turer

Yet, in properly treating the
subject that you assigned me, I
feel I should say that the promise
in the appliance-television financ¬
ing field warrants most careful,
objective study on your part —
possibly the assembly of success
stories by banks of various sizes
in various sections of the country.

Second, to all practical intents,
as banker-lenders, are right

you,

where

back

in

came

You

20

to

loan

—

others

and

more

or

face

are

mendous

face

command

Think

tools

lure,"

a

finance

for your

question is: Do you want a
larger portion of this business
than you are getting now?
What
can
you do more fully to share
this promising field of business
opportunity?
As a preliminary to what I am
going to say on this subject, let
me
tell you: I'm a newcomer to
the appliance-television industry.
So,

general

manager of con¬
products group and as di¬

as

sumer

of

finance

our

company,

Westinghouse Credit Corporation,
I

studied this instalment
credit
question carefully. But I do not

live with it every day as you and

colleagues

your

So,

asked to speak here

was

counselled with

who do—with
in

do.

The

of

secret

in

success

financing—success

ance

concerned:

bride

our

when I
today, I

dealers,
and
concerned
with the industry—are
engaged
upon costly and extensive adver¬
tising and promotional programs
designed to sell the attractions of
"electric
nance

ment

groups

living."

well
the

say

result, I am inclined to
this: First, the answer that
sought of me can come bet¬
a

from

ter

more

one

your

specifically from

set

up

by

subject and
own

of

you

own
a

—

or

commit¬

to explore the

report back

language.

sound fi¬

a

such

make

purchases attractive
is an essential part of
any effective marketing program
to get consumer durables rolling
in volume again.
and

easy,

Second, by taking a new look at
sales financing potentials of
areas.
If you are alert to
opportunities on one hand and the

the

your

in your

for

profit

lender,

Two

at

hand,

provide

like

or

floor

products to
It

dishwasher to

a

a

display

_

a

new

of

new

old-time dealer.

an

.

the American scene; and

on

bank

company

bright

office this morning,
useful

help to
in

Back

early

some

fellow is devising a
technique that
product.

young

and

new

will

doubt that now, in some
in
some
sales
finance

no

or

move

the

Twenties

late

distribution

Thirties,

was

capitalized firms who acted in the
role

These

firms

finance
retail

distributor-dealer.

of

who

to

inventory and
of the few con¬

own

purchase

sumers

competent

were

their

more

than

two

gen¬

erations ago had caught a glimpse
of the comfort in electrical living.
Most

them

of

established

town showrooms

in

down¬

to capitalize the

growing interest in their wares.
In fact, an industry adage of the
day was "Up goes the wallpaper—
down go the profits."
Neither was sales financing a
problem in the next era.
Utilities early caught the loadbuilding potential in appliances
and were quick to merchandise
them aggressively. About the same
time, department and furniture

they're going' to
well as they

as

the

product

will

kitchen

their

or

look

living

and they generally want it
just about as soon as
they've made their selection. " In
room;

installed

other

wordsy every dealer—to do
business—has got to have a rea¬
sonably complete line of merchan¬
dise on his floor, as well
as
a
reasonably well stocked inventory.

Financing requirements to
port

dealer

a

volume,

with

substantial.

are

ample, to display

a

sup¬

modest

even

For

ex¬

representative

stock of most products that he will

require calls for
around
money,

four

over

an

investment of

$11,060. And, to make any
he should achieve a turn¬
five times

or

a

To

yf^r.

support this movement, $4a,000 is
needed for

floor

planning and, if

65% of his retail sales
time

are

the

on

basis,
another
$46,000
to
carry his instalment sales.
That
all adds up to an opportunity for
$102,000 of financing.
r
.,

Hence

4

the

for

need

financing,

sound basis, and the many
techniques and changing organ¬
qn

a

izations

have

that

been

used

to

provide it down through the years
popularity and success- of
such
captive
firms
as
GMAC,

—the

GEEC, Redisco, and

now Westing¬
Corporation.

house Credit

and

handled in large measure by well
dual

what

■

was

what

see

like

all

that-be

to

our

major

your

can,

consumer,

whether

characteristics

Westinghouse experience in
meeting this challenge, I think, is
typical.
After the business had
developed to the point where out¬
side financing was essential, \ve,
or

dealers,

our

used local banks

commercial finance firms of the

or

day.

after the

Then

war—when

the

country's tremendously in¬
creased productive capacity made
intensive sales work

more

tial—wo

established

bureau

nance

a

to work

essen¬

retail

fi¬

with deal¬

and banks around the country.
This in turn led to the establish¬
ers

of

ment

banks

still

equity

our

which—at

plan,

associated, and

were

with

time—thousands of

one

many

Today, we have the
Westinghouse Credit Corporation

to

are.

supplement these banking

ar¬

rangements.
We

your

literally forced to set
Credit Corporation—and
may provide a clue to
opportunity. Looking back

than adequate
to the very limited demands that
you want.
appliances made upon them—and
In this connection, I might re¬
with a 40-% profit margin, they
mark that many banks in many
had plenty of room to move real¬
areas—especially large aggressive istically. Not only were all well
banks in metropolitan sectionsable to handle customer demands,
are
doing an excellent job for but they could easily bundle up
themselves,
for
consumers,
for 50 or 100 notes and discount them
dealers, and for manufacturers. at the bank.
In fact, those that

now,

distributor salesmen call the

In

ted to

finance

other,
out

you

a

that

firms
can

program

mand

as

some

manufacturers'
provide
on
the
carve yourselves
of action to com¬

much of the business

of these areas,

these bank
operations are besting manufac¬
turers' finance firms—getting the
bulk

of

the

bank effort

business.

seems

But

this

weakest where

it is jnost needed—that is, in the
small town and rural areas, where

concerns

itself with the problems

and

opportunities
of
country
banks,
I
would
unhesitatingly
recommend

this

area

as

one

worthy of its specific study dur¬
ing the upcoming year.
Within this room now, you have
the experience and the knowledge
required to put bankers effect¬
ively and successfully in appli¬
ance financing.
Third,
keters

by

use

learning

how

excellent sales organ¬
izations got into the act.
The credit resources of all three

stores with

groups

were

more

as

ers' firms to operate. If your As¬
sociation has
a
committee that

call a grass-roots survey of
situation.

As

But

program,
utilizing instal¬
credit in such a way as to

sales executives

our

field, regional managers
of Westinghouse appliance sales
and factory field sales. With their
help, I conducted what you might

tee

Manufacturers,

utilities—all

it is uneconomic for manufactur¬

of

the

promise

plans. There's a widespread feel¬
ing, as you know, that business
recovery will
be sparked by a
rise in consumer willingness to
make a purchase on credit.

customers

by most folks toward

appli¬

for

available at the right time in the
right place to lubricate the oppor¬

First, by understanding the im- '
I have
portance of sales financing to this

every

potential

as

substantial loans at good

dealer^ and manufacturer—is hav¬
ing the right amount of money

the sale of

men

some

and

buy—visualize,

came

into

parent

exceptionally
prospects for bank accounts,

ful.

you

purchases
-manufacturer's

their

as

displayed
product
opportunity
in the field of appliance and tele¬
vision financing. First of all, folks

tre¬

consumer

well

corporations—as

area.

—

and

man¬

thing to
re¬
member is that you can't "blow
hot and cold" on appliance-tele¬
vision finance, operate on an "in
and out basis," with a new policy
for every turn of the economic
cycle—and expect to be success¬

primarily because man¬
than the more aggressive among ufacturers, their distributors,, and
their dealers couldn't depend upon
you in the larger cities—are doing
much about cashing in.
This is outside lenders that other finance
especially true of those who come firms came into existence in the
from
the smaller'towns
those first place. They prosper now only
who serve smaller dealers.
because, by and large, they are
Now we might turn to the ques¬ more sensitive to dealer require¬
tion that Mr. Asterita put so ex¬ ments than banks and other types
plicitly: How can you help in the of finance firms.
They think in terms of product
financing of both wholesale and
retail commitments in the appli¬ sale.
.' i
' •
: v
■'
ance and television industries?
Sales financing in the appliance
Summarizing quickly and brief¬ industry is an evolving thing. Its
ly—and without going into tech¬ position and its techniques have
nicalities—I'd say the answer lies been changing since that day, so
in doing three things:
long ago, when appliances first

dealer

panies—as
fine

important

a

industry and to the national econ¬
omy—by seeing where and how a
dependable program of financing

country might look upon

ufacturers' appliance finance com¬

in

program

The

tunity

agree

the

merchan¬

move

terms of making
plan a real "credit
part of a manufacturer's

as

with

to

they

or a consumer purchase.
But, just in passing. I would sug¬
gest that the substantial banks of

finance

your

ago.

years

potential,

—

then; but field reports seem
that few of you—other

were

to

you

competition

The

you

in the latter, eight out
of
10
refrigerator-freezer com¬
binations in use were purchased

can

number of built-ins—

kitchen

custom

part of new products that
scarcely started to get off
the ground.
As an indication of
have




few months

rector

Detroit,
with its peaks and valleys cre¬
ated by model changeovers.
so

manufac¬

a

group

fits

yv.fi

that it isn't for

sales

.

increase in line

continue to

like

future.

However, Reading is in excel¬
financial shape.
As of Jan.

lent

As

me

During the

1957, 1,210 vessels were han¬
company's facilities at
current uncollectible advances to Port Richmond and at piers at
Willow and Noble Streets.
This
the Pennsylvania - Reading
Sea¬
did not quite equal the all-time
shore Lines. Prior to 1957, these

ing in 1957. The principal change
was
to charge net income with

present—the clearer it became

to

effective

sales

industry,

er's stock

marketing executive has at

a

about

financing in
usually have
mind the financing of a deal¬

this
in

What you need to do is to real¬
that finance today is one of

that

Thursday, April 3, 1958

.

.

think

or

suc¬

ize

—studied the ideas that I wanted

Reading Company

levels—and

here.

candidly, the more I
thought about this talk here today

Earnings of Reading Company
last year held up well even with
an
accounting change which re¬

retail

and

psychology that precedes

cess

.

mar¬

sales financing at both

began
were

to
soon

follow this
making a

procedure
handsome

of financing; they got

profit out

at 5 or 6%—rented it out
to their customers at 12% or so.

money

By this time, the sales pattern
broadening. Production was

was

and volume

being stepped

up,

movement

required.

was

Sales ability

"whizz-bang"
needed
money

to

business

salesman that they

often

didn't

have

the

finance the volume of
that

their

skill

could

that

point, the need for in¬

stalment credit financing—in both
wholesale

the

the

reasons

before it "the frustration
era"—they lost so much business
years

because

credit

and

retail

fields—was

recognized; and it's become
sharper and more insistent ever
since.

Incidentally* when people talk

resources

take

so

order well within the line

an

of credit that

set up

were

Sometimes they'd

undependable.

for

they themselves had

dealer—only to have

a

it canceled out when the. bank re¬

ported his credit entirely commit¬
a competitor's line.
Or one
product would come along with a
sales campaign—only to disclose

dealer's

a

lines

credit

sent to

exhausted

market

earlier.

by
But

important than anything
else, when we sought tq effect a
national program, we had to check
more

the

financial side with

thou¬

sands and thousands of banks be¬
fore

we

could

move.

,

^

A finance company

has

changed

know—and

—just

of our own
that Now we

all

so

where

creditwise.

bring in.
At

up

out

at a premium
—and the industry found that the
was

were

does his distributor
a

dealer

When

a

stands,
product comes

with a new sales campaign, our
finance corporation fashions a fi¬

up

nance

program

to go with it, cor¬

effectively, with the
already made.
Moreover, when we launch a sales
program nationally, we can, alrelating

it,

credit commitments

The Commercial and Financial Chronicle

Number 5730

187

Volume

(1519)

31

r

overnight, effect the finance, Continued
program to accompany it.
V /
* Dealers like results, too.
Some
are doing 25 to 30% more business
than they did in pre-WCC days,r

most

from

them

5

page

"add-on"

our

The "

which breed imbalances in supply

tight-

must

con-

funds for both current and antici-

dispel

false

the

run

to

cover

possible for lenders to be more
willing to lend and for borrowers
to be less concerned about their
ture and now looks to govern- ability to obtain funds so long as
ment for
positive steps to set their credit position remains
things right.
Many statements sound,

stormy.

so

takes confidence to walk

to

bankers

that

Recovery and Role oi Bankers

is

program

We

notion pated needs. The change in psywhen chology has since relaxed the dethe business weather becomes mand
for
credit, making it
tinue

,

and

succeed;

to

-

-

has

public

become

con-

many
cases
it
gives them 28 to 35% more busi-" rope. There must be a willingness and demand and subsequent unto'"follow the line of
stability, employment.
of this type than they had.-"
without being diverted to the pit
The present situation is just
No less important—in fact, an
essential to moving merchandise; of either inflation on the one side such a dislocation. The impact of
or deflation
on
the other.
When the inflation generated in the reoff dealers' floors—is a satisfac¬

scious of the general business pic-

economy tilts too far in one cent boom is taking its toll.
This
outlet, for consumer credit
paper.'. Here again; you will find* direction,- it must shift to the other once again proves that economic
a
field
worthy of attention;
I' to maintain its balance, or else it growth and stability cannot lest
will be headed for even moreseri- upon the tenuous threads of inwould direct your attention par¬
psychology.
We are
ticularly to two points of study: ous trouble; and if at any point flationary
first, while safeguarding your its basin Confidence is destroyed, fortunate indeed, therefore, that

sensitivity of government toward
the public's attitude and the im-

effective

in

that

a

ness

.

from

tory

it cannot hope to stay on the narmoney, how you can be less selec¬
>
tive, more generous one might say, row rope of stability.
I would like to comment briefly
in passing on consumer applica¬
tions; and second, how you can- on a couple of significant aspects
: operate with less reserve demand of the current situation.
on
dealers?
-h'' :
; Review Current Situation
In conclusion, then, I would say:
For
the
sake of
this
country's
First, in placing emphasis on
overall levels of business activity,
economy—of keeping it rolling in
it is easy to overlook the fact that
high, with full employment; for
the sake of helping to raise Amer¬
adjustments in individual indusican living standards; for the sake
tries are constantly taking place.
.of profit for your stockholders, I Economic a nt i v i t y is never a

within

outside of the"
emphasizes the

and

Administration

the

Credit for Growth, Not Inflation
This

tials

to

It

come.

not to be expected

was

both political and

and,

basis of your
course for banks,

the

on

findings, chart a
nationwide.

To Honor G, B. Moran

;

Ai UJA Luncheon
Moran,

B.

George

Vice-Presi-

annual

public opinion

luncheon

Appeal

Monday, May 5, at 12 noon at

the Hotel Vanderbilt.

.

Factors, Inc., and Jacob M. Seiler,

Klein,

Frederick

•of

J.

A.

Armstrong

Fortune

of

&

Co.,

chairman of the 1958 drive,

as

him

a

as

in

an¬

the selection of Mr.
guest of honor, praised

nouncing
Moran

Inc.,

devoted to the wel¬

man

...

home construction. These

lifted

sectors

the

economy

Textile

and

apparel production reached a
peak in late 1955 and has been in
downward trend since then. Out-

put of rubber and leather products
has

yfrf
months

for

running

been

the

below

well
„

most of 1955 and

manv

T
level

of

goods

—

Healthy Development

+i

Bogen, professor of fi¬
at the Graduate School of

I.

healthy development because
places the economy on a firmer
base for consumption and genuine

it

growth, and lessens the danger of

T
estate, common stocks, physical inventories, and c o n s u m e r
out of fear of

anrauifl o-oods

nance

York University,
be the guest speakers at the
New

Business,
will

Mr. Math

luncheon;
trate

on

will

concen¬

the facts behind the UJA

campaign and Dr. Bogen will talk
on today's economic situation and
future has

the

what

in store.

concern

general

business

as

Belgian Congo Bonds
■

A *

filed

statement

registration

March 27 with the Secu¬

on

rities

was

B4sWArirPs

?"L
v^iJTc'pni^UvTmnnr+anf
nnnfiJPn/>p

in

nnv

nnrrpntivp

ith

nhiiitv

Wp«

in

chnnin

to

issue

proposed

a

of

$15,000,000 of The Belgian Congo
15-year external loan bonds, due
April 1, 1973. An investment bank¬
ing group managed by Dillon,
Read & Co. Inc. expects to offer

publicly about the mid¬
dle of April.
This
issue will
represent the
the

issue

thnf
rinni
nnf

such

f °m

the

sale

construction

of

of

the

native

housing, including related utilities
and public buildings and facilities,
as
a
part of a ten year plan for
economic and social development
of the

Congo.

Joins Smi4i, La Hue
(Spec'a' to The Financial

ST. PAUL,

Coleman

Smith,

is

La

Minn.

now

Hue

Chronicle)

—

Gerald H.

courage

ditions created bv shifting tides of

on

it

required

the part of the Fedauthorities

eral Reserve monetary

to

noliHes

to

with

deal

Co.,

with
Pioneer

Building.

con-

business

the

and

general

public
public,

This does not mean that we should

ignore the signs of business recession around us, but our policies
and

operations should give people

—including instalment borrowers
—the feeling that bankers
are
confident of the ability of basic

the importance of forces of growth in the economy
economic stability — to prevent the current decline

recognize

preserving
thp

balance be-

delicate tiehtrone

tween inflation and deflation /
deflation.-

Downward
A

review

Trend
irend

Real

in

of the trend

GNP
our

of gross

fmm

arnwind

nression

We

intn

a

know

ness
nessi

business activity since World War
jj with recurrent waves of infla-

tionary pressure. To underwrite a
new such wave with a base of too

serious
as

that
that

wh
w«J

serve
serve

He-

indicated

ofbu<J

have
have

and stable basis

duction and consumption,

doubt that all Americans want the

Keeping Confidence

been
been

In order to Suard against a resurgenee of inflationary forces, it
is therefore essential that we not
be stampeded into a series of
drastic measures which will make
Pe°Pie lose confidence in the ability and willingness to preserve the
,To1„Q of the dollar.
»
value

We

already appear

mitted to
defense

a

Conclusion
In

conclusion, there can be little

elimination of unemployment and
the

resumption

cient

use

of full and effi¬

of both our human and

material resources. But employment must, in the long run, rest
on a foundation of stability. It
must be based on production for
use, and not for the accumulation
of inventories that are predicated
on

expectation

of

rising

prices.

to be com- It must be related to capital ex-

significant increase in
as a result

expenditures

of r€cent developments on scientific fronti?rs" Most, observers
coun^ heavily on this shift in.
sPendin^ to lift the economy in
!he m.onths ahead. It would be
'°° ish indeed t0 erfct a "ew

penditures

required for the real

needs of a growing economy, and

not for capital expenditures gen-

erated through fear that inflation
will make them too costly if delayed until the time that they are
really needed to meet growth requirements of the economy
structure of government doing we were would be snortsighted if we
spending
We to expect that inflationary
on top of thlg^ lf
in g0

run

the serious risk of

anew

it

is

rekindling

the fires of inflation. Thus,,

hoped

that spending policy

will not be predicated on temporary
upon

political
expediency,
but
the requisites of sound,

stable growth.

Likewise, it is to be hoped that
same considerations will enter
ultJ saxut: cuuoiuci-«tAwu» win unci

policies in the long run can provide a permanent and realistic

the shifting tides of
in an economy dominated by forces of supply and demand in the market place. For
this reason, while the propriety
of constructive measures by govanswer

to

sentiment

the

ernment to assist recovery is
into the decision whether a tax conceded, it is essential that such
reduction should be made- The measures be not interpreted as an
ProsPects are that even without underwriting of abanking, should
renewal of inguch a reduction> the budget will fiaiiont
We, in

d

sh<ould gxplore aU pos;sible> ways Jate surpluses in times of pr0sperof ,a®®1,sl!flg
ity to offset the deficits that are
beneficial in pe¬
billion; but with prices on an up- and ret.aii customers to adjust considered to be ----trend, only $13 billion of the gain their finances to the changing riods of recession. A sizable defi¬
was real and $10 billion was due
business environment so that their cit caused by the combination of
to inflation. In 1957, the shift was
inrtilS frpitS a rise in defense expenditures, eneven more pronounced.
Although ^a:n 1<k forwa:rd to^ *es^umption iargement of civilian programs,
the economy contributed another
^rnn and tax reduction would be a sig19 billion growth in the value of tremendous potentials m the econnal that the infiation barriers are
goods and services produced—to omy*
being lowered. It would be exreach a new record of $434 billion
Preventing Government
tremely difficult, I believe, to con—only $4 billion could be conIntervention
vince people thereafter that long1956, the dollar value of

production rose $23

therefore continue to do our part

in preserving public confidence
in the ability of our economy to

deal with both inflation and defla-

tion, and thereby help to make
guch measur€s unnecessary,

Two With J. Logan
(Special to The Financial

PASADENA,

Chronicle)

Calif.

—

Kenneth

B. Bolton and Robert E. Robinson

have

joined the staff of J. Logan
721 East Union Street.

& Co.,

Wright Inv. Adds Two
(Special to The Financial

Chronicle)

^

while the
balance — $15 billion—was contributed by price in-

sidered

real

growth,

overwhelming
flation.
When

the

facts

are

faced

honestiy and realistically, all will

The stakes are high for banking

because every downturn in business brings political pressures for
the government to get into the

lending field on larger scale. We
must answer this threat realisti-

stability of the dollar is more
than a hope.
It is desirable, also, to view the
role of monetary policy in the
run

same

light. Credit has been eased

considerably in recent months. In-

terest rates have declined sharply
in most sectors of the money marH. Bertram Smith
people. On the contrary, it cheats lending business, but by convinc- ket, and the availability of credit
improved. During most of
II. Be- tram Smith, limited part¬ them by eroding the buying power ing our customers that we have has
1957, demand for credit was ver
ner in
Zuckerman, Smith & Co., of accumlated savines and current confidence in them and can and
incomes, and causing dislocations will supply the credit needed for strong, as borrowers were seeking
passed away March 22.




experience in ups and downs in

psychology, instead of a growth
based on real capital needs of the
economy and a sound flow of
goods through channels of pro-

undergoing adjustme t

P^tems,

In

of

us

gh()W a significant deficit, the improduct during the past time. We have help
t
w
pact Qf which is bound to be felt
couple of years is revealing. In out theii
a
many o over the entire economy. The idea 1955, total output rose $31 billion, the more already stio gei as a le£iscaj p0iicy should compenof which about $28 billion represu^sate for changes in the business
sented a real growth m goods and
One way by which we can cycle gounds gQQd Qn paper But
services produced and only $3 bildemonstrate our confidence is to »t hag nQt worked very weli belion was accounted for by price be resourceful in our lending. We cauge Qf a reluctance to accumunational

wave

for such speculation. This danger
js very reap and it is hoped that
jn seeking to help the economy

national

connected

&

h

cound

unem-

This momentum was

circumstances,

our

Belgian Congo intends to use the

r o u 2

and

being fed, at least in part, by an
inflationary psychology. Under

rises.

public offering of Belgian
securities in the United
States.
The Government of the

for

t h

arisen over

ing under the momentum of capital expansion and inventory ac-

Congo

proceed^

well

ployment in particular.
■: tjie business evele
In the current
Second, it is not generally real- situation
the banking fraternity
ized that during the greater part must jend its weight to the preserof 1957 the economy was proceed- vaUo. of confidence on toe part of

first

bonds

h3viii2 nrGD^rGd

Commission

Exchange

and

relating

has

whole

a

cumulation.

Dillon, Read Group
To Offer $15,000,000

recently thdt

new

joo]^ upon as a tool to be uaed

ron-

...

but it hss been only

a

easy credit would be detrimental
businessmen, are convinced were to generate a new expansion —not helpful—to the resumption
that ,m*}^10r\ 1S inevltable. This predicated largely on inflationary Gf economic growth on a sound
is a

for

important

so

x

Jules

make

ever,

early 1956. Glass,

r
clay, and lumber production
production
reached its high in the fall of 1956.
Production of consumer durable

to encourage the

easy as

credit for

°
T
..
J
how- turn the corner out of the current
lose sight of the recession, the monetary authorifact that the dangers of inflation ties will continue to
recognize it,
beyond the short range are real we now have had considerable

t*
the recent boom ^ ^...
should not,

not, been applied.
Sees

so

of

speculation and inflation.
It is
important, particularly, that the
m0ney and credit sysiem not be

.

instal- h 1 t Th f
f rkinoment lending—was at its highest linwhniP<snrnp a? it mav hp «hnuld
of
creed
or
f
mprpiv
pivp
wav
to
fpar
nf
chairmen added that Tax Commis¬ point in the last quarter of 1955.
rn>
;
•
1101 merely give way 10 ieai or
sioner' Nathan
W.
Math,
noted Thus, for some time now, many depression. Both are destructive,
of our important lines of business
jg- £0r
reasori) as stated
lawyeh who is a top leader in
have been in a significant decline;
the Brooklyn UJA drive, and Dr.
earber, that we are fortunate in
regardless
background.
The

of his fellow-men

fare

come

priate measures of restraint had ing the imbalance developed in
rmf
hoon
onnliorl
iUn
1,
1,1
U«...

sec¬

country have not felt

l'rom the 1953-4 recession.

a

•

our

what is regarded as
Thus, while the recent rise in
recession in others.
and that we must remain alert to
It is noteworthy that when total unemployment is not to be conbusiness was expanding between doned> it is reassuring that infia- them. It is appropriate that meas1955 and 1957, many lines of in- tionary psychology has given way ures
be undertaken to preseve
dustry and trade were in a declin■ a broader appreciation of the
confidence in the resumption of
ing trend. The year 1955 was the fact that the business cycle is still growth in the economy; but it
peak year for automobile sales W1th us, and that fewer consumers would be serious indeed if we
new

cer—

a

ognizing that the forces of inflation still lurk in the background

use

part in our own
particular sphere—through credit
measures—to help balance the

general

two

sion of the United Jewish

./on

some

us.

the whole job of containing inflationary forces, but there is no telling how far those forces might
have, proceeded and fc, .
how deep a economy on the tightrope between
.
.
.
Pit of depression might have been inflation and deflation. The fact
encountered if earnest and appro- that the economy is now correct-

-

and

toward

We must do

the impact of

and

Finance Divi-

the Factors and

of
.

the

at

honored

,

■

business

of

tions of the

will be

-dent.of the Hanover Bank,

V

i

<•

lines

a

:

■f

t

that such actions could have done

Even today some

steady process.

is

tary actions up to last fall, we are actions of the lending community 0f the company in my opinion it
far better prepared to deal with are very much in the forefront. WOuld be foolish indeed if credit
conditions were
the adjustments that were bound How we respond will influence wouia De IOO"sn permitted to be¬
mae?a 11 creaw

,

urge
you
to re-assay 'consumer
durables' instalment credit poten¬

environment

contrast with the
portance of rebuilding confidence, psychology of restraint which pre—
The banking fraternity should vailed until late last year. It is
take note of the fact that credit appropriate to the change in
measures are included in the ar- business conditions. However rec-

by virtue "of efforts to restrain the senal of weapons to combat the
inflationary forces through mone- recession. Thus, the attitudes and

-

-

recent

tainly

agree
to

the

that inflation adds nothing cally—not merely by telling Uncle
standard of living of our Sam that he should stay out of the

ANA, Calif .—Bernice
M. Sieman and Arthur A. Hall
have been added to the staff of
SANTA

Wright Investment Co., 822
Broadway.

North

Joins H. L. Bobbins
(Special to The Financial

Chronicle)

WORCESTER, Mass.—Isaiah L.
Robbins

has

staff of H

been

added

to

the

L. Robbins & Co., Inc.,

37 Mechanic Street.

32

The Commercial and Financial Chronicle

(1520}

Continued jrom page

fundamental

16

will cial

which

factors

determine the future trends.

frequently run of materials and industrial equip¬
princi¬ ment, and their ability to maintain

policies

ples
Perhaps the most important fact

others to follow
profess to be¬

expect

we

in

and

which

in heavy industry.
of considerable

been recorded
is

matter

a

cignificance, since future expan¬
sion obviously will be limited by
the size of the local market. This,

pends largely on ability to export,
the ability of the Latin American
nations to retain and expand their
export markets can very will de¬
termine the pace of future indus¬
trialization.

-■

-

'*
is one of the reasons
Record export earnings were, in
Americans are so in¬
fact, one of the prime contributing
terested in the common market, or
factors
to
Latin
America's re¬
regional market idea. Because of
markable industrial growth in the
present market limitations and
other factors, production costs are postwar decade, but the increase

4>i

*

course,

,

4

Latin

that

America's

Latin

in

export

earn¬

generally high—a fact which fur¬
ther adds to the inflationary pres¬ ings occurred largely as the result
sures
which
pose
the greatest of higher commodity prices,
America's

to. Latin

threat

con¬

tinued economic progress.

has

what

example

best

the

Perhaps

.

of

in the

occurring

been

Capital goods field is provided by
the iron and steel industry. Eight

steel mills have been

Integrated

Latin

in

installed

1939. with

America

since

production rising from

600,000 to 3,600,000 tons. \ Latin
America now is producing roughly
tialf of its steel requirements and

production capacity is still ex¬
panding.
Programs now under¬
way

in various countries will in¬
the area's steel production

crease

Co

approximately 6V2 million tons

by 1960. Yet this is not the whole
ctory. Steel imports doubled be¬
tween 1939 and 1955 and, in the

increase

an

the

in

dustrial production increased only

certain kinds of steel

products was
3%, as compared with 6% in 1955
more
than
offset
by increased
and 7%
in 1954; and per capita
demand
and higher imports of
De¬
ether types of steel; and import income increased only .1%.
clines
were
registered in both
requirements, over-all, increased
Chile
and
Colombia;
while in
rather than diminished.
Brazil, per capita income barely
This is typical of what occurs
held its own. While final figures
when
a
nation
industrializes.
for 1957 are not yet available, it is
Eocal
production
of
industrial apparent that further declines
goods accelerates the growth proc¬ were registered in both
indexes, on
ess.
A host of auxiliary industries
a per capita basis, despite the con¬
epring up and flourish, creating a tinued
expansion of heavy indus¬
demand for additional raw mate¬
try.
rials. electric power, transporta¬
Will Rapid industrialization
tion
facilities,
machinery
and
Continue?
equipment. The adidtional wealth
and employment created by these
The slowing down in the de¬
new industries, and the rising liv¬
mand and, consequently, the pro¬
ing standards that result, create duction of such consumer goods as
demand

for

consumer

wide

a

and

variety

of foodstuffs,

producer goods of

as

This country is far

United States.
and

sales to the

our

purchases

Latin America amounted to

from

roughly 40% of their total export
sales. Thus, any slackening of our
demand for Latin American prod¬

will

ucts

produce immediate and
serious repercussions in our sister

republics; and, hence, their
occupation with our foreign

•of

the

leather

textiles results from

products
a

and

number of

in

the

markets

more

nations

nation

for

and

its

trading
that this

partners,

provided
can be achieved

growth

undue strain

national

on

—particularly
resources

foreign

exchange

earning
has shown

dustrialization

without

resources

and

Experience

capacity.
that

increases

in¬

rather

than reduces import requirements
and can not be supported without

parallel increase in export earn¬
ings; and for most Latin American
countries, exports depend heavily
upon agriculture.
a

Our
export
sales
to
Latin
America have followed this gen¬
eral

pattern

of

with industrial

expansion along
development, with

the prevailing upward trend sub¬

ject

to

interruptions

dividual

extended

countries
or

curtailing costly

than

programs

of

long the present rapid pace of
development in heavy industry
can
continue, in view of its rela¬

increase

to

All this is good for the develop¬

ing

by

restrictions rather

industrial development. The ques¬
tion naturally arises as to how

Foreign Exchange

on

credit

are

and total imports
highly-industrial¬

rather than diminish.

Strain

of

not the least of which

tend

world;

from the
ized

felt

when

become

in¬

over¬

encounter economic

tively high cost and the limitation
imposed by the size of the domes¬
tic

markets—particularly

stability

if

yfym

4?11^jlor

Industrialization
tO

-Uoi.

i*

can

i>i.

States

rising

pdvances

jn

be expected

l.ar

result.

1

'

would like to

emphasize, however,

that since capacity to import de¬




time

always

we

national

of

are

political chaos;
statism.

a

targets

skills, techniques and or¬
ganization that have^ accompanied

emergency,

restrictionists

the

of

destined

seem

moment, at

barriers.

heading into a period of over¬
production. Next, there is petro¬
leum, which accounts for another
20% of total exports.
Sugar

these

materials

look,

for

a

is

They

the

Europe

United

States, Western
Japan. The record-

and

breaking imports of last

year were

recorded
despite
the
apparent
failure of Latin American
exports
to expand, and were made

possi¬

ble only by a substantial
drawing
down of foreign
exchange reserves
in a number of countries and
by
a

very

capital

heavy
in

inflow

the

form

of
of

foreign
private

Since
the

rate

and

international

recent study

is

fairly obvious that

by the United States

Department

of

Commerce

has

tantly to Latin American produc¬
tion, employment;: and govern¬
ment

revenues, and^ produce
annually over a billioir dollars in
foreign exchange for the host

countries in

excess of the amount
the investors pay out for
interest,
dividends and imported materials

and

equipment. They are a con¬
tinuing demonstration in the show
windows

of

the world

complishments

of

of

the

American

ac¬

free

enterprise; of the mutual benefits
and the practical results of inter-

American cooperation.

These

While

of

some

these

invest¬

measures

used;

are

these restrictions

Most

and

Latin

under

untold

cause

can

the

American

best

of

countries,
conditions, do

Latin

9%, non-ferrous
In all our discussions of foreign
metals—copper, lead and zinc— trade policy in this country, the
about 10%; iron ore about
31/4%; consumer or Mr. Average Citizen
wool about 2% and
bananas, 2%. seems to be the forgotten man.
These products, together, account
Unversed in the
intricacies of

would like to have to fur1/her their

for

they

80%

some

to

exports

of Latin America's

We

us.

are

not

self-

sufficient in any of these products,
which are so
important in our

daily living.

Some

time

or

is

of

them,

in

of

war

may

be

national

essential

emer¬

to

our

survival as a nation. Yet, it
disturbing fact that every one

a

of these products, with the excep¬
tion of coffee and bananas, which
do

we

not

produce,

has

been

under strong attack by our domes-1
tic producers who want to raise
tariff
or

misery and distress to

our

American friends.

or

foreign
tariffs

they

effects

grams.

and

mists

their

the

or

tions

and

his

he

may

interest.

own

He is

himself

makes

halls of Congress.

It is altogether

that

necessary

those

of

neighbors
also
deal of cotton,

United

citizens

and

ment is

us

Latin

inter
no

America.

way can be
essential
relief

found

a

American

recently

United States

to
the
"a tremendously

country, liable to irresponsi¬

bility in its trade policies where
farmers

involved, and able,
willing and even eager to give its
agricultural surpluses away in the
absence of any other means ac¬
ceptable to American producers of
are

-

of

for economic

While

welcomed
credits

what

And
volved

in

trade?

I

ports

to

from

raw

our

billion
I

area:

to

private

our

of

ex¬

have

made

on

exactly the
America.

way

it looks

Whether

we

-

and
and

Import

America

for

the

materials

industrial
our

es¬

and

duction of many

lows that
cerned

limited
ways

in

our

we

own

pro¬

this it fol¬

should be

more

conservation of

resources

deplete

of

con¬

our

than in seeking

them

more

ra¬

pidly by excluding imports) and I

increased exports and a continued modities in which we are not self¬ have referred to the close connec¬
inflow of foreign capital, I would -sufficient, such as sugar, tung oil tion between our purchases from
like to comment on some of the and various
metals; our commer¬ .Latin America, our sales to them

beneficiary

done

of these essential

(and from

about

to

standard

business

a

l>ave been
basis, and
out of the
earn¬
»

Latin America has received
very
little from this
country in the way
of direct
foreign aid. It has been

required to

machine

own

pri¬
these credits, like the

recipients' foreign exchange
ings.

imports

deficiencies

materials;

dealing with surplus com¬
tended to level off in 1956 and modities, such as wheat and cotton
1957, can be maintained only by and dairy products; or with com¬

Export

investments,
on

assistance

Latin

loans

must also be amortized

men¬

reliance

Latin

sential

feed

that

our

vate sources,

American

referred

$4

in¬

stakes

Latin

have

approximately
tioned

the

are

our

a

are

the

develop¬

received

Bank and the International
Bank,

the

to

has

which have both supplemented and
stimulated investment from

living; I have called attention to

This

it

substantial

from

continue to prosper and continue
to grow the products in the

they have become

that

for private invest¬
foreign trade as a source

capital

maintain

accustomed."

found

assistance is

substitute

ment.
;

has

governmental

meeting their demands that they
quan¬

Latin

develop¬

Foreign Aid Given

America

ment and

to

Stakes Involved

The

econo¬

referred

as

to

directly related to the in¬

Little
Latin

our

toward

Surely,

capital

industrial

exchange outlook.

Congress of the
full implication of our trade poli¬
cies

for

vestor's assessment of the foreign

fellow

our

Foreign investment

trade

States

America

concerned with the wider

opportunity to inform

foreign

a great
importance to export pos¬
and dollar earnings ca¬
pacity; and the flow of private

this; and it is altogether right
are

allowing their currencies

deal of

right and proper that he should
do

or

sibilities

the

in

of

vestors, therefore, attach

vocal; and

heard

choice

a

is dependent on the health and
vigor of the other. Potential in¬

profits or whose
be threatened by
increased imports. He is alert to
livelihood

adverse,

are

with

are
intimately
related; and the welfare of each

domestic pro¬

our

faced

to depreciate.

for

reasons

developments
are

tightening their exchange restric¬

restrictions

prices, he doesn't
what is happening

budget
it; but not so
ducer, whose

development and satisfy
for ever-higher
of
living:
and when

aspirations

trade

of

One of the most prominent

respected

rich

economic

standards

national interests be equally alert
and vocal.
We must use every

Grievous Complaint
southern

and

his

to

the

and

other trade

or

costs

on

tax barriers against them
mid
restrict their entry who

the United States market.

trade

always know

otherwise

into

of

industrialization in
Latin America, which was so
high
in the 1939-1955
period, and which

foreign trade.

shown that they contribute impor¬

amounts to about

tities to which
it

her

directly responsible for

are

30% of Latin America's exports. A

and

other Latin America coun¬
along with the inflow of
afford
to hardforeign capital, since the boom tries. But here they run afoul of pressed domestic
producers with¬
in
production of capital goods (the international aspects of our out striking at the
very foundation
depends
heavily
on
continued various agricultural support pro¬ of our inter-American relations.

from

in

not have sufficient dollars to
pay
for all the imported goods

and

capacity
to
import
machinery,
equipment
and
raw
materials

have played a key

overseas

ization and

be hit, one by
quotas or other

to

tariffs,

by

one,

trade

us

for

ture.

$1

over

and the

them for help

upon

is

ments, as in the extractive indus¬
the list of commodities which we may afford some protection to the tries, create the dollar exchange
small minority of our population for their own servicing, investors
buy from the Latin American
republics and upon which their that produces these commodities;' in manufacturing enterprises and
economic life depends.
The list but they will result in charging public utilities have to compete
is not a long one.
First of all, the American consumer more than with Latin America's import
there is coffee, which
accounts he would otherwise have to pay needs for the dollars they require
for a third of the total and which for a myriad of products in which to
pay
interest and
dividends.
Let

ex¬

credits.

Imports frorri the United
Increased twice as fast,

They contend that

Latin

our

investments

nearly two billion in manufactur¬
ing; and well over 2 billion in
petroleum. These investments of
United States business enterprise

convenience.

convenience—our

in

or

free economy or

Our

outlook

period
Latin

of

Included in

area.

billion in public utilities; another
billion in mining and' smelting;

Latin Americans complain bit¬
terly that our economic partner¬
ship with them is a relationship

eco¬

exports is, in¬ produce a great
deed, one of the principal keys to cereals and vegetable oils, most of
which are sold to Europe, Japan
the entire industrialization
pic¬
The

investments

when

that

our

relations.

quick to call

po¬

litical

ports decline.

difficulties.

During the 10-year
from 1945 through 1955,
industrial
production
in
America
increased
85%,

curdling

them

gency,

desires

international

pre¬

very

and

affecting nearly $8 billion of pri¬

role in Latin America's industrial¬

inflation and the attempts by gov¬
ernments to slow it down by means

eco¬

and

American

with

and

been

the

industry, commerce and
agriculture—of the implications of
foreign economic policies as

tural

bare subsistence level
in

American

our

nomic

a

and make their needs

I

American

People

consumers

ago,

this animal had been

During 1957,

living at

sense

long

cow

ucts.

the cumulative effects of internal

become

cians"

not

agricultural policy
of our politi¬
suggested that the

our

"sacred

of the stake
private investors in Latin

our

vate United States investments in

causes,

nomic

the

of

public had little con¬
ception of the way the product of

facture.

have

Orleans

New

referred to

I want to speak now

group here

most important
market for Latin American, prod¬

the

away

both domestic and foreign manu¬

who

in

talk which I delivered

a

-

were

year,

inter-American

an

opment.

policy, with our agricul¬ when we are suffering from short¬
policy, with our tariff policy ages of basic raw materials and
everything that has a foodstuffs; and that they always
volume of export sales.
bearing on their continued access have responded, not only by ex¬
During the period from 1939 to to this market.
panding production, but by selling
1951, prices of Latin American ex¬
It is not only a matter of main¬ these essentials to us at prices
port commodities were in a strong taining the tempo of their indus¬ below what
they could obtain in
uptrend with prices, on the aver¬ trialization and development pro¬ other
countries; but when the
age, increasing some two and onegrams, although this is an impor¬ emergency is past, they point out
half times. Since then, however,
tant consideration. Dependent, as that we quickly erect tariff bar¬
prices have leveled off and, in
many of them are, on the exporta¬ riers or put up import restrictions
1957, quotations for some of the tion of one or a
very few export to protect our domestic producers.
more
important commodities de¬
commodities, and with the highest
If we are honest with ourselves,
clined rather sharply. During the
rate of population growth in the we must admit that there
is some¬
past year, the price of coffee,, the
world, their ability to maintain thing in what they say. Right now,
biggest foreign exchange earner, and increase their sales in this
our
inter
American
trade, and
declined around 10%; copper 25%,
market means the difference be¬
therefore, our inter-American re¬
lead 19%, zinc 25% and wool tops
tween progress and retrogression; lations are in
grave danger. Lead,
19%.
relative prosperity or widespread
zinc, copper, petroleum, tung oil,
This decline in commodity
destitution; exchange stability or fisheries products and many other
prices, combined with a falling off
currency depreciation. It may also
Latin American commodities are
in demand for consumer goods,
mean the difference between
than

rather

still in excess adversely affected industrial pro¬
duction a&d
per
capita income.
of
local
production.
Whatever
During 1936, Latin American in¬
reduction occurred in imports of
latter

In

to

liance of the area on

And inter-American Trade
This

lieve.

America's

Latin

the pace of their economic devel¬

we

attempting to
export
prospects is the overwhelming re¬

to be considered in
assess

Thursday, April 3, 1958

,

counter to the free market

Outlook for Exports to U. S. A.

Industrialized Latin-America

..

;

a

money,

our

technical

which

has

great deal of good, with

relatively
taking

of

program

small

expenditure

a

of

cooperative under¬
which
the
recipient

as

a

in

countries carry a large
portion of
the .load.
_

Our good
have not
wanted

to

give-away

...

neighbors to the south
been, nor have they
be, beneficiaries of a

program:

They

are

too

Volume

187

proud,

Number 5730

and

too

that kind

seek

.

The Commercial and Financial Chronicle

.

.

independent,

to

of

help; but they
-extremely
critical,
as
are
many Americans, of some of the
aberrations
of
our
foreign aid
activities.
They can not under¬
stand our persistent belief, despite
are

all

the

that

evidence

the

to

contrary,

aid programs in such countries as

Yugoslavia, Poland, Indonesia and
more

democratic,

more

resistant

more

them

make

can

friendly,

to

or

Some of the

most, effective work in this direc-

in

the

enemies in
actual

war,

possible

showdown

fight, and
potential business com¬

or

a

to

that

our

realize

own

people ing the last 10 years, and we are
ip planning to spend .a similar

that it is

to determine what changes might"'
be effected in-order to keep pace

the

and

.

.

.

.

.

.

.

If we, as

this

kind

standing

nation,

a

of

of

develop

can

sympathetic

under-

Latin -American

our

neighbors and their problems, we
shall

the

have

basis

iecluire.
1 am sure that?we have faith
*n the long-run future of Latin
America. Many are backing that
.

'real f?ilh with the investment of

for

lives,

ji

communism.

cold

sure

come

33

by the our national
interest
to -make amount during the next five-year with new competitive conditions
far-sighted whatever adjustments are neces- period—a doubling of our annual
what rates should be adjusted
sary in our domestic and foreign construction budget,
to
meet
the ~ necessities
of ecopolicies to extend to our fellow " We trust that this will be taken nomi'cs, of
competition, and ' of
has become increasingly oriented Americans in this hemisphere the as one more evidence of our con- carrier's
revenues
and what
toward Latin America.
cooperation and help that they tinuing faith in the future of Latin
changes can be made to make rail
businessmen

I

some of the countries
have been assisting as doubtful

allies

will

civic leaders of the great international port of New Orleans which

They regard
we

equally

tion has been accomplished

past and present foreign

our

India

American activities.

(1521)

shall

tlie
give

to constructive criticism

wav

■5L*

skills

our

anH

nnr

America and of our conviction that
the
industrial
development
of
Latin America is bound to proceed, despite temporary obstacles,

our and at an accelerating pace. After

lnrmpv

than

mniv*

30

in

vnai-c

flint

service

more

.

economical and

more

attractive

to the shipper.
They
will study the entire problem of

rate-making methods.
; Obviously

many

hope

gain

these

of

are

m«no

not

scores

^hat have

lecently

enteied

Latin American field

the Its

added to

or

vast natural resources have
scarcely been touched; its indus-

we

search

to

from the
efforts

Re—

Committees'

lies

petitors.
As

primary producers of tropi¬

cal agricultural commodities, they
resent

our willingness to help their
competitors in Africa and Asia to
improve their techniques and in¬

their

crease

products
also

as

have

such
They

in

trouble

government's

our

of

cocoa.

production

coffee and

reconciling

opposition,

on

,

as

in

nistory,

mistakes

it

will

the

to

inevitable

made,

not

direction. But I

be

that

and

all

that

m

one

convinced that

am

direction

main

to Kennecott, Du Pont, Grace, United creating

own-indus-

our
is

be

will

progress

going

.

.

proceed.
tnai

will

continue

Fruit, Freeport Sulphur, International Harvester, Standard Oil of
New Jersey—in fact, nearly all
the leaders of American industry;
and, with what I hope is becoming
modesty, I would like to mention

forward.

be

,

^

x

-•-*

-

-

-

-

-----

a broader public interest
in matters of government, a better

much wider base.

Undoubtedly

,

■

members

of
tho
of economic laws 'research staff will communicate
comprehension of with
many
of
you,
and
your
investment problems. In our own knowledge and opinions will be
field, we are certain that the de- reflected in the ultimate findings,

understanding
and

broader

a

mand for electric
-

is limit-

power

—

-

I

hopeful

am

*

■

that

the

results

of

-

economic grounds, to international

commodity

agreements

designed

Blind

to restrict shies and

for

support prices
agricultural products,

their

with

willingness
and
our
ability, as a "rich nation," to sup¬
port prices and intervene in in¬
our

ternational markets for the bene¬
fit

of

our

agricultural

own

producers.

It
is
unfortunate,
indeed, that the effectiveness of
our support for free market
prin¬
ciples, as applied to others, is
vitiated
of

by our frequent flouting
principles, when applied

these

to ourselves.
These

that

some
of the things
neighbors have in mind

when they refer to our alleged
"neglect" of Latin America; but
their strongest resentment is di¬
rected toward those policies of our
country which constitute a threat
to
their ability to earn dollars
through foreign trade. The Honor¬
able Henry F. Holland pointed out

in

a

recent speech on inter-Ameri¬

have invested we hope that more of our fellow Approves of St.
I^awrence Seaway,
billion dollars in 10 Latin Americans will feel as we do, that - There are regional and local
the less-developed areas of American
countries in property our future is inseparably linked factors which look promising. Oneworld is blind, unreasoning improvement and expansion dur- with theirs.
; ;
> of
them that is of difect interest

the

present obstacles to progress

electric enterprises

half

a

in all

the

nationalism—a disease that is rag-

ing in its most virulent form in
the

newly-independent nations of

our

of

ment

Latin

America

(the provision of)

an

has

rtnnp

If

.

have

I

"Dollars

.

been

is the opening of the St.
Seaway.
This should
substantially to the prosperity

add

by confiscation of foreign
property, breaking of contracts
and business agreements and ex¬
clusion

of

at

The Weather is Clearing
For the Railroad Industry

cost

the

foreign interests, even
of complete disaster

*

the

of

head-of-the-lakes

region
freight tonnage.'
Incidentally, this project dovetails
neatly with our efforts to develop

and

to

our

own

industrially and commercially

the

forms, the

ones most prevalent in as the
Government spent on all per horsepower.
Wouldn't a cost valuable real
estate along our
America, it has led, in phases of our atomic energy pro- like that put a quick stop to the right of way. Such development
countries, to wastage and gram during the same period. The horsepower race in Detroit?
will aid materially in promoting

Latin
some

dissipation
on

of

national

resources

uneconomic industrial

projects;

to

unwillingness to accept ioreign
assistance or participation in the
development of natural resources;
and

to

needless

rtmTnwiiviniif

expenditures
.•

i1.,.,,!.

government

iunds

which,

under

years

the

on

proper

of
<

projects

conditions,
nditions,

railroads

have

been

created.

They

are

virtually

re-

today

far

a

efficient instrument for the

more

moving of people and freight
than they have ever been.

mass

For

there

eYamnle

is

the

mat-

i or example, mere is ine mat
ter of dieselization. The Milwaukee

completed

its

Our fleet of some 53,000 freight

frequently

cars

tions,

or

gets

new

addi-

of them recently de-

many

veloped

improved types

Ther.
' „oriinal.,mpn4i7Pr„
.YYYYnfY J new damage—fiee
°

vaiious kinds of

king-size mechanical refrigto erators with roller bearings, steel

conversion

cars,

earned

needless

intervention

of

governments in what should be
private business matters - surely

lower

fuel

and

operating

costs, for

wood

chios.

Peek-a-boo

cars,

and greater engine availability for

correct

in

my

which

,

.

.

-

tin

*

with the young and

more

Northwest
Milwaukee

Lawrence

marked

h£ye made it increasingly we have added a second one at
We have devices like the direct
analysis of the economic bases of difficult to do business in some Bensenville, just west of
Chicago, reading spectrograph that swalLatin America's industrialization, countries. A number of them are
arKj 0ur very newest right here lows a
spoonful of used diesel oil
it was perhaps inevitable that my waging courageous battles to halt
af st. Paul-Minneapolis, the last and
promptly comes up with an
discussion should have developed this
disastrous inflation, and they af a cost of over $5,Q00,000. You analysis of just where and how
into a plea for preservation and deserve all the help and encourknow how vital these yards are fast wear in the
engine is taking
extension of Latin America's ex¬ agement we can give them. Others,
speeding the classification of place
and we have equipment
port markets in this country. But unfortunately, are using govern- cars and the make-up of trains,
like the Skyworker, a truck fitted
I am equally sure that another merit controls of various kinds to
imds
*
1
A—
11
an(] in 1
keeping traffic fluid ail with pneumatic saws and pruners
the symptoms or surface over
reason, consciously or
uncon¬ attack
the line.,.
,
s;
>
that hoists workers 40 feet up to
sciously, was my firm conviction indications of inflation, without
we're using electronics in many cut tree limbs from around comthat the future of our country, as a attempting to remove the
basic
g
0ne application
is in an munication lines. Then there's a
nation, is inextricably linked with causes. Here, indeed, is an opporeiaborate
system
for
reporting new control system of our own
the future of the virile, progres¬ tumty for constructive criticism;
f^i^t car movements almost in- development that permits a diesel
sive, and freedom loving nations
?u
?n mY e?Peri€in^; stantaneously between our yards 3 unit to be hitched behind one
of this hemisphere. I am sure that that, if it is iair and unbiased, it
jiere
a^
Milwaukee,
Savanna, of our electric
locomotives for
our
national destiny lies, not so will be received as well in Latin
Bens'envipe ancj Council Bluffs.
extra power on mountain grades.
much with the mature and rela¬ America as anywhere in the world.
Another is in centralized traffic I could mention many more intertively static economies of Europe,
but

the
The

Road,

Africa and Asia where it has been

developed in* our own shops, are
us.
For the shipper they mean simply gondolas stripped of their
through trade are the soundest are prime
contributing factors to a higher degree of dependability wood siding and floors. The load
possible capital for economic de¬ the unbalanced national
budgets, with fewer delays en route.
rides on spaced stringers. Shippers
velopment."
the excessive currency issues, the
Nearly six years ago we built of pipe and wood poles favor them
spiraling price levels and the de- 0ur first automatic classification because the cars clean themselves
Where Our Destiny Lies
terioration
of
currency
values yard at Milwaukee.
Since then, of snow, rain and small debris.
.

of
to

econ°mic growth of the Northwest.
■ *
•
ty^.
foi having an
optimistic attitude toward the fulies in the inevitable growth
.

o£ our population and therefore
nm*

°

pitHvp

endous

Tlip

ppnnnmv

trp.

"war^ tabv'^ronsthe

^rifand m?5dlffLties'are rap!

opportunity

dollars by selling her ex¬
in the great United States

market."

people

therefore

and

i o

^on^inue(^ jrom page 16

been

earn

ports

rrnn}

the

to

:

rtiniiniiedj

trade; "by far the greatest of
contributions to the develop¬

can

to

Nationalism

to the local economy. In its milder

are

our

Unreasoning

One of the most troublesome of

rn r\i-i r

_

.

-

_

_

,

mj??pased Joduetion
of

and

evervtlhnff

frmsSation
p

corJ?

hicludini?

including
*

Two Prerequisites
Just two things
be

railroads

seem

to

me

to

insure that tho
markedly increase

to

necessary

will

their volume of traffic.

The first
continuation of the remarkable
technological
development
that has accounted for the steady
rise in ton miles per train hour
and train miles par train hour in
the past (decade. There is no sign
that our ingenuity is drying up.
rrn
1—-1
There is, on the other hand, the
certain knowledge that increased
traffic will bring higher earnings
which can be plowed back., into
effective research and new tools,
Please remember that our railroads are geared to handle much
more than their present volume,
With this extra capacity, increased
traffic could be handled not only

is

a

x

/»/*•

~

!11

L1

1.

vig¬

orously-expanding nations of this
hemisphere, who share our com¬
love

mon

look

and

of

to

peace
us

for

their struggle to win

and

freedom

leadership in
a

better way

of life for their people.
But I want to emphasize that we
shall not be prepared to fulfill

the

responsibilities of leadership,
be

or

until
can

worthy

we

to assume them,
accept the fact that we

not

exercise

an

effective

leadership in this hemisphere
til

we

possess

understanding

un¬
—

a

sympathetic understanding of the
various

nations

and

their

people,

based

upon a knowledge of their
languages,
their
histories
and
their cultures, and a real interest

in their social and economic

prob¬
scriptural admonition,
all thy getting, get under¬
standing," could well be taken as

lems.

The

sincere and lifelong

friend of
deeply" conthe present
1 rends in my own country and in
Latin America which may retard
its development. But I do want to
emphasize my sincere belief that
any interruption of Latin America's steady progress
toward the
kind of economic growth that will
mean a more productive and prosperous future for
all concerned
is bound to be temporary.
I am
sure
that
the
peoples of Latin
America, who have shown the caas

a

Latin

America, I

am

will

by

not

some

allow

of

their

"with

a

motto by every American busi¬

nessman

for guidance in his Latin




Oropnisland

f

on

tlVe^Mississ- '

Counci^BlufS orvth^Mis-

'

,

_

...

state or Federal—take appropriate

Researcl* Committee

steps to free the railroads from
the restrictions of obsolete legisMion. If we are enabled to cornpete in an open market and on
an equal footing with other carriers, there can be little doubt
that the basic efficiency and economy 0f rail service will quickly
recapture a large volume of traffic,
What are the chances of these
eventualities taking place? I go
back to my original assertion that
the weather is clearing for the
§uctor in the caboose. Radio also work progresses.
railroads. As Secretary of Compacity to achieve such remarkable connects the train crews with opIn general, the Research Com- merce Weeks recently said, "The
progress in
the past generation, erators in wayside stations and mittees will dig deep into the shower isn't over, but the sun

cerned

eroded by

flation,
nomic

or

Jains

to

the floodwaters of

by

the

nationalism.

tides
And

of
I

be

ippUto

e£L

ecoam

,

There is another important activity in which The Milwaukee
dispatcher
Incidentally, one &of R°ad is engaged along with seven
earliest CTC installations was °ther leading western lines. I reright here between Faribault and fer to the establishment of Special
Mendota
'
Committees on Railroad Research
A third application is in train- about which some already are inra(ji0
We have about a million formed. I wish that I could give
dollars invested in small sending a detailed outline of the commitand receivincr sets that bridge the fee's projected activities, but they
]ong
long m|je between the en- wil1 probably be shaped and algbieer in the cab and the con- tered to a certain extent as the
,

which

sketch,

of

the world's longest

track

train dispatchers.

under

a

'

single

.

freight and
roadswjtcher dieseL engines are purchased regularly at prices averaging in the neighborhood of $100
Passenger,

in-

■

.methods and volume of distribu- shows signs of breaking
tion of a wide range of commodi- the clouds.
ties by the various types of carThese are

through
_

of my reasons
riers. Specifically, they will study for being hopeful. I, don't think
all phases of rail freight service that they are unrealistic.
„

some

B4

(1522)

The Commercial and Financial Chronicle

Continued

$75 Million Ontario
Debentures

Being

Harriman

Ripley & Co. Inc. and
Wood, Gundy & Co., Inc.

Public

offering

of

$75,000,000

Province of Ontario, Canada, de¬

bentures, dated

1,

May

1958 and

consisting of $25,000,000 of 344%

five-year debentures due May 1,
1963 and $50,000,000
of 4% 25year debentures due May 1, 1983,
is being made by an underwriting
group jointly managed by Harri¬
man Ripley & Co. Inc. and Wood,
Gundy & Co., Inc.
The

due

debentures

1963

are

priced at 99.32% and accrued in¬
terest, to yield 3.40%, and the
debentures

due

1983

offered

are

98.06%
and accrued interest,
yield 4.125%.
Net proceeds from the financing
will be used by the Province of
Ontario for various purposes, in¬
cluding the carryiiig on of public
works, for discharging any indebt¬
edness or obligation, or for reim¬
bursing the Province's Consoli¬
dated Revenue Fund for any funds
expended ^ in<
discharging
any
indebtedness or obligation of On¬
tario.
at

to

The debentures

direct obli¬

are

gations of the Province of Ontario,
and principal of and interest on
the debentures will be payable in
currency
of the United States.
Income tax presently imposed by
the

Canadian

not be

will

Government

payable in respect of these

debentures

or

the interest thereon

by owners who

are

The

$50,000,000 of 25-year de¬
are to be redeemable, in
or
in part by lot, at the
option of the Province of Ontario,
at redemption prices ranging from
102% to par, plus accrued interest.
whole

second

largest

of

in

Ontario

of

area

provinces, covering
413,000 square miles. Its
population at June 1,
1957 was 5,622,000 and represented
approximately 34%
of Canada's
total population.
The wealth of
Ontario is derived mainly from
manufacturing,
mining,
hydro¬
electric power generating, agri¬
culture and forestry.
The gross
manufactured

the

about $10.7

half

the

products

province aggregated
billion in 1956, almost

total

that year,

Ontario

for

and for

has

all

of

Canada

40

over

been

years

the

leading
province in the production of min¬

showing

slight seasonal pickup.

The advent
weather will spur the start of construction projects that
have been held in abeyance and housing starts are expected to
are

a

public debt of the province
aggregated $1,439,905,777, of which
$1,240,207,500 was funded debt and
$199,698,277 unfunded debt.

"bottomed

industry the past week indications
out"

Droulia Partner
On

April 10 Droulia & Co., 25
Broad Street, members of the New

StookrExchange, will admit

Ismini Droulia to limited partner¬

ship. Regina Krois withdrew from
partnership on Feb. 28.

at the

rate

same

March.

as

.

car

sales

definite

a

(3pec!al to The Financial Chronicle)

Roach

Porter

E.

now with

and

GallagherCompany,
16
East

Broad Street.

Now L. E. Jenkins Co.
DAYTON, Ohio—The firm
of

name

National

Capital
Inc.,
6075
Shady
Oak
Street,
has
been
changed to L. E. Jenkins Co., Inc.
Virginia ' D.
Eisert,
formerly
with Remmele-Johannes
&
Co.,
has joined the firm's staff.

crease

Joins Central States
(Special toThe Financial
Chronicle)

MANSFIELD, Ohio—Arnold H.
Keyerleber has become affiliated
with

Central

States

Investment




for

a

was

ago, and

$14,009,000,000 in

dollar

of

sales

was

v:-

employees
workers' wages at midyear.

only
in

1957

than

holders of

The

were

in

belOw that

of

year, the steel

stock

as

they had left

rise in 1957.

volume

1956.

of

an

came

from

14.9%

Preceding

over

that of the week preceding.

v

Period

car

80,560 (revised)
total of
of

and

cars

14,511

;
V"
.<
,'
output totaled 93,167 units and compared with

inVthe* previous week. The past week's production
Trqcks amounted to 110,868 umts,o%an increase
that'of the previous week's output, states

units above

"Ward's."

V;"'/*•',

.

V.. r•
'.
.that of the,previous

-:.:

,

Last week's\car> output increased

a

The increase it reported,"'
on again" pattern of

to'the industry's "off again
weekly scheduling. /
attributed

Last week's

.,

above

.week

by 12,607 -gars- while truck output rose by 1,904 vehicles
during the week. In the corresponding weex last year 130,233 cars
and

22,479 trucks-were assembled.

:*

—

;

Last week the agency reported

^^
in

there were 17,701 trucks made
the United States. -This' compared with-15,-797 in -the previous

week

and 22,479-a -year iigo.v

-j.

trucks.

placed at 7,205 cars and 1,280

In the previous .week Dominion plants built 7.273 cars and

trucks

and for the

1,954 trucks.

pv

1,298

;.

:

Canadian output last week was

cohiparable
*

V-

1957

week

9,484

cars

and

•

Lumber Shipments Dropped 4.4% Below Output

.We<*k'Ended March 22, 1958

1957.

in

'

,

shipments of 488 reporting mills in the week ended

March

22, 1958, were 4.4% below production, according to the
National Lumber Trade Barometer. In the same period new orders
were

above production.

5.8%

of stocks.-

Unfilled orders amounted to 30%
was 0.5% above; shipments 1.8% above and
2.9%"ab'ove the previous week and 8.3% below

Production

orders

new

were

the like week in 1957.'

.

1

Failures

Business

"

'

'

a

were

2.3%

boost

Commercial

Mild Declines

the

failures

industrial

and

declined

mildly to 327
preceding week,
Dun & Bradstreet, Inc., reported. Although at the lowest level in
five weeks, casualties exceeded considerably the 290 occurring a
year ago and the-263 in 1956.
Failures were 5% higher than
in the comparable week of prewar 1939 when 310 were recorded.
in

9.5%

the

week

ended

Liabilities

increase
of

Registered
Past Week

net profit,

as

They

automatic

employees

were

rose

of

week's

steel-

of

casualties

last year.

March. 27

$5,000 nr
against

as

from

more

305

357

were

in

the

in

the

involved

in 287

previous

week

A decline also appeared among small

of

the

and

247

failures involving

liabilities under $5,000.

more

1956, there

common

physical

there

and

Year Ago

a

up

jump

of

::a

Loadings Dipped 1.1 % in Latest Week and

Lumber

$1,001,000,000.

number

weekly production

•;

was
•

.

the

average

Automotive production^ for the week ended March 28,; 1958,
"Ward's Automotive Reports," registered a gain of

7

Although the industry gained in earnings in 1957, the Federal
Government got more, that is 6.1% more in
income taxes than it
got in 1956. As a result, the 32 companies
paid almost as much in

Employment costs continued to*
higher than those of 1956. The

%.

on

Declines for Second)
Straight - Week

-

-

7.48 cents.

1957, $1,005,000,000

144.4

Oiiipiit. Registered

Electric

slightly in 1957 by 7.37
cents, compared with 7.28 cents in 1956.
Among years that were
better were 1950 by 7.99
cents, 1955 by 7.82 cents and 1940 by

income taxes in

V'

according to

a new high in
1957, 21
turned in less than record
performances. Their
earnings were lower in 1957 than they were in 1956.
Record dollar sales,
along with gains from new equipment
and improved practices in
steelmaking, gave the industry its best
year in dollar volume of net profits.

per

or

production is based

Above -Volume

Although the industry's net profits hit

Profit

;

ago the rate was *88.7% and pro¬
A year ago, the actual weekly production

.

The 32 companies,
representing 93% of the nation's steel¬
making capacity, had a total net income of $1,001,000,000 as against

totaled

>.i.v>7-

Automotive Output Advanced the Past Week 14.9%

Net profit of the
industry was estimated at $1,018,000,000,
5.3% above 1956's $1,012,000,000. The
metalworking weekly based
this estimate on the performance of 32
leading companies;

$1,005,000,000 in 1956. Net sales
as against
$14,004,000,000 in 1956.

to

1947-1949.

;

_

actual

decrease of 152,817 cars or 22.3% below the corresponding
week, and a decrease of 164,229 cars, or 23.6% below the
corresponding week in. 1956.
;
*
;
'

producers recorded all-time highs in dollar volume of
net profits in
1957, "Steel" magazine reported on
"

average

an

19.57

f"

Expect Output to Drop to 48.9% of
Ingot Capacity This Week

and

on

with

cars, a

some

Steel Mills

Steel

(based

compared

month

22.3% .Below

the March

January figure of $67,583,851.

the

Loadings of revenue-freight for the week ended March 22,
1958, were 6,038 ears. or. 1.1% below the preceding week, the
Association of American-Railroad reports..;
:
,n
vv'V.:
Loadings for the > week ended March 22, 1958, totaled 533,019

$433,748,495 last year. However, it showed a decrease of 0.6%
below the January figure of
$438,331,568.
For New York City
alone, building permits in February

sales

t

a

1,425,000 tons.

Car

over

year

31,

castings

as

that

!180.8% of steel
1958, equivalent'to

For the week ended' March 29,
1958, output decreased by
111,000,000 kwh. below*that of the previous week and 49,000,000
kwh. or 0.4% belovV that of the comparable 1957 wee&,;but in¬
creased 653,000,000 kwli.'above that of the week ended March 31, "

month-to-month gains above the level of the comparable months
a
year ago, but fell slightly below the previous
month, Dun &
Bradstreet, Inc. reports. The February total for the 217 cities,
including New York, amounted to $435,700,934, an increase of 0.4%

a

March
for

announced

average

straight week. '

Framingham, Mass. were idled all week. Dodge in Detroit
down on
Monday of last week.
February building permit values continued to show small

dropped 19.9% to $45,210,172, from $56,474,685

will

The amount " of electri? energy
distributed by the electric
light and power industry'for the week ended Saturday, March 29,
1958, was estimated at 11,645,000,000 kwh., accordingFo the Edison
Electric' Institute.
'Output * registered declines for the second

four-day week,

decrease of 33.1% under the

beginning

ingot-and steel

tendency,

major producers close

Institute

production .for' 1947-1949)

-

four-month,

In all probability April auto
making will follow
pattern which last week found many plants on a

and

week

i956.

inventory, checking

several

Steel

and

companies

placed at 2,319,000 tons,

,

300,000-unit rise.

saw

the

"Index of

<

11-20 sales of

in the near-record dealer

for

Iron

ofrsteel

rate

week before.

13,000 daily paralleling the 13,500 for
March 1-10 and the 13,400 for entire
February.
With factory
operations geared low, March sales averted any significant in¬

m

Co., Walpark Building.

/

A

firming

demand
third week of

a

were

A';-:

showed

American

-For the like week

duction

96,457
before, but it attributed the 14.9% gain to the indusry's
"off again, on again" pattern of
weekly scheduling.
Statistically, April-June auto assembly is being planned at
the same daily rate as in March with its estimated
360,000 car
completions, indicating that the bottom of the unemployment
new

a

*85.0% of capacity, and 1,366,000 tons a week ago. jOutput for the week beginning March 31, 1958 is equal

the

the week

March

and

prices into

scrap

con¬

48.09% of the utilization of the Jan. 1, 1958 annual capacity
140,742,570 net tons compared with actual production 4>f 50.6%

|U'

The statistical service counted 110,868 car and truck
comple¬
tions in United States plants the past week, compared with

downturn has been reached.

operations

force,

consumer

";
sluggish

,

of

:

of

employment-production-sales
problems and is gearing for a leveling-olf period, "Ward's Auto¬
motive Reports," declared on Friday last.
It said the industry will close out March
operations with a
four-month rise "in dealer stocks checked, its retail auto sales
holding to the February level and its April-June factory opera¬
tions scheduled

steel

.

bolster

;\

about

of the companies

With Gallagher-Roach

Cox, Jr., is

*

its

of

Monday last.

—

rate

was

automotive

has

for

week, to

1,298,000 tons of
weekly

the

it

last

may

;

The first ten days of

capacity

prices in a range of 1 to 3% to reflect savings due to lower
freight rates on imported iron ore and decreasing dependence
on other imported materials, this trade
publication concluded.
In

outlook

The

feeling the pinch. British steel
buyers are holding up placement of new business and order
backlogs are thinning. Capital investment in Britain has been
falling for some time. British mills have cut their finished steel

action

"Steel's" composite-on the prime grade
dropped to $34.50

operating

-

Overseas steel mills also are

that

government

gross
.

increase.

31, 1958, the total di¬

COLUMBUS, Ohio

a

of good

rect

York

The

decline.

w

Wire products

and

'

combined

a

erals.
As of Jan.

construction

fidence.

plants completely.
'
Not scheduling car
assembly for Friday, last, were Ford at
St. Paul, Minn.,
Louisville, Ky., Chicago and Long Beach, Calif.,
Chevrolet and Mercury at Los Angeles
plus Pontiac and Cadillac
in Michigan.
Some of these plants also were idled on Thursday
last and Buick-Pontiac-Oldsmobile
assembly at Southgate, Calif,

estimated

within

ton, off $1.83 from.the previous week.•*,'A
April, should show whether the automo¬
tive industry will, help, perk up the market., Autodom thinks its
sales slump has leveled off,'but the industry is
waiting for-'midApril reports to confirm its .'theory, concludes "Steel" magazine.

this week for

hit rock

soon

closing its steelmaking operations
period of two to three weeks, this
trade weekly declared.
:
.;v -V
"The Iron Age" continued by stating that seasonal factors
are likely to keep the steel market from falling apart
completely.1
Products that go into construction are showing signs of reviving.
end of

they have been producing less
using; consumers' inventories may
bottom; better weather should bring an upturn in

steel than fabricators have been

Great Lakes Steel Corp. is

and the week before that

about

of

tion.

at the

the

Canadian

value

Industry

the

is

During the quarter just ended, the industry produced about
18,400,000 net tons of steel for ingots and castings. It was the
smallest output for a ndnstrike quarter since the second quarter
of 1946 when production was 15,600,000 tons.
•
%
v
As they begin the second quarter, steelmakers pin their hopes

Detroit.

with March

bentures

Thursday, April 3, 1958

.

for improved sales on the fact that

non-residents

of Canada.

The Province

5

.

There, ingot production dropped to less thap
30% of capacity. It could fall to as low as 10% of capacity next
week. This probably would be the lowest non-strike production
level in Detroit's history.
Ford Motor Co. shut down its steelmaking operations for a
minimum of three weeks, and also halted steel rolling units.
McLouth Steel Corp. idled the last of its six electric furnaces,
leaving only its blast furnace and oxygen converter unit in opera¬

is

center

managed by

group

page

The State oi Trade and

Offered to Investors
Underwriting

from

.

more

in

the

owners.

steel

The

industry

number

43

of

production

1957.

Concerns

continued at 37. the.

14.4%.
steel

in

They dipped to 40 from 52 last week and
failing with liabilities in excess o£ $100,000

same

number

Retailing casualties fell to
in

1957

was

2.1%

In sharp contrast with its
performance last
industry has been hit hard by the recession.'

•

as

158

from 52 and commercial, service, to
total among
salers edged

in the

preceding

w

eek.

construction to 42
19 from 25. In contrast, the

from

182,

manufacturers, rose to 69 from 60 and among whole¬
to 39 from 38. More businesses failed than a year

•

Volume

387

Number 5730

.

The Commercial and Financial Chronicle

.

.

(1523)

/

in all lines except service which showed

ago

'itsT937Tevel.
While

of

nine

the

marked drop from

a

Continued from page 2

-

-•

six

major

geographic

regions

$14 Miiiion Edmonton

reported

Debentures Offered

declines

during the week, the downturns were relatively mild,
except in the Middle Atlantic States, off to 109 from 126. Casualties in the Pacific States dipped to 64 from 69 and in the South
JAtlantic States to 30 from 36. Contrasting increases lifted the
'East

North

,lrom 20.

Central total

to

from 57

67

(and New England to 25

No

change occurred in the East South Central States.
Five regions■, suffered heavier business casualties than last year,

with

noticeably sharp rises from 1957 in the New England, East
North Central and South Atlantic States.
On the other hand,
.four regions had fewer failures than a year ago. The decline from
; 1957 was sharp in the Pacific States.
;;
>
J

Wholesale Food Price Index Set New Yearly High
In Latest Week
/

!
;

s

•26, 1957,'

The Security I Like Best

*

that

This is 7.7% higher than the $6.22 of March

The index stands at the highest point since Feb. 8, 1955

:

when the figure was $6.77.

compensation

hams

these

31

be

thle

in

current and fu¬

in

penses

■

'

1958.

tial

in '58 will be quite small relative
to such similar outlays in '56 and
'57.

the

Long-term appreciation poten¬
of this stock is revealed by
the following table of sales, num¬
ber of stores, earnings per share,
and dividends:
'
■'•r—%

Furthermore, the ex¬
of opening only two stores

TABLE
Sales

No. Stores

Earned

Cash

(S Million)

at Year End

Per Share

Dividend

Dividend

1.59

.70c

3%

Year

„

Stock

81.6

•;

77.7
__

1954

38

1.50

.70

66.3

32

1.58

30

1.34

.60

1952_

43.7

1950

1945

*27

.93

*27

.82

10.3

.35

*27

somewhat over that
of a week earlier, as price increases on sugar, lard and livestock
offset declines on some grains, steel scrap and flour.
The daily
281.96

at

March

on

preceding week and 289.10
Reports

that

flour

consisted
In

Bradstreet,

had

sizable

wheat

of

stocks

of

—

and

that

a

architecturally

and

pleasing

in

;

;

.

.

Winter wheat

favorable

The
increase

Spring plantings

'
f
outlook and

:

.

crop

an

expected

discouraged the

somewhat

three

Table,
factors

current
which

presented

combine

could

in

1958

to

leases

on

a

of flour during the week. Prices fell appreciably. Except for more
large acquisitions of flour by the government'.for relief programs

policy

abroad, flour buying for export lagged.? Flour. receipts at New
York railroad terminals on Friday amounted to; 59,290 sacks, in¬
cluding 32,180 for export and 27,110 for domestic use.
-

Basket

is

skillful

team

of

strategic

locations, implementing a
of
continued
expansion.

Present

Market
experienced,

management

business

buying encouraged retailers to hold their purchases of rice at the levels of the previous week and prices were
"steady.
Rice exports to Cuba were sustained at a high level.
.< increased buying of sugar by the Philippines
boosted raw sugar
prices at the beginning of the week and they finished slightly
above those of the prior week.
:
'
'

number

the

same

of

which has built the

from

annual

In brief summary,

sales

of

ket

is

in the

Market Bas¬

security I like best"
because the company has reached
a
phase in its pattern of longrange expansion that should be
highly rewarding to stockholders.
A big crop of stores planted in

The

years

harvest

1958

and

is

about

should

to

ripen.

commence

continue

for

in

several

Shopper stepped up their buying of dinin'g room sets, bedding
tables and chairs.
Sales matched those ol! a year

/Despite

government estimate of

a

world

increased

an

crop,
a

There

coffee

coffee trading improved and prices rose somewhat. There
moderate dip in cocoa futures prices, as transactions slipped.

Warehouse

'

-

stocks

of

the

cocoa

week-end'in "New

York

to

rose

159,875 bags compared with 303,043 bags a year ago. Arrivals for
season so far totaled 853,172
bags, as against .1,120,434 in the

'

the

~

;

comparable period last year, y

3

% •
% /%''< •' v
Chicago wholesalers reported a moderate increase in cattle
prices as trading improved. Cattle receipts rose over those of a
week earlier, but remained noticeably below a year ago. A slight
decline in hog receipts and increased trading helped boost hog
prices somewhat last week. There was a moderate increase in

'

.

:

'

prices in Chicago during the week'.- Lard
i climbed again on improved volume.v '\
'♦ vi
Unfavorable

weather

conditions

soil

for

futures

prices

v

preparation's

'lor

planting and

a somewhat lower, ginnings report than was antici¬
pated stimulated cotton transactions the past week. Futures prices

-

the New York Cotton Exchange rose steadily during the week.
Consumption of all cottons by the United States during the four

on

> weeks
-

March

ended

688,000 bales in the

1

amounted

to

■

640;000 bales compared with

period a.year ago. United States exports
of cotton staple during the week
ended/on Tuesday (March 25)
'totaled about 150,000 bales against 102,000 a1 week earlier and
: 193,000 in the comparable' week last year/. Exports for the current
season
through March 18 totaled 3,789,000 bales compared with
5,012,000 in the similar period a year ago.
same

call for linens and

the week, over-all

....

The effects of snowy and

reported in bookings in piece goods.
Wholesale food buying rose again the past week.

,

rainy,weather in

some

regions

was

'

•

offset by increased Easter shopping the past weekrtroosting over-

•'

all retail trade

slightly above that of the comparable period last
Most of the year-to-year increase was, attributed to more

year.

sales

of

women's

traditional

/ in major appliances and
a

-

year

furniture

ago,

The

.

total

dollar

than

a

Inc.,

disclosed.

year

1957 levels

to

volume

volume

Wednesday of last week

on

ago,

spot

Easter

new

equalled

of retail

to

1%

estimates collected

Regional

simil|j;
in

-4-5%;

Atlantic.—2

from

Bradstreet,

New
to

+2%;

East

South

Central

—1

—3

Best-sellers in women's apparel

bags and. jewelry.

were

to'J?-3%; South
-|l%; Middle

0%>£^

of

of

the

Substantial, year-to-year;gains occurred. Re¬
last year in the buying

j of Sirring dresses, coats and suits, but. sales-of sportswear lagged.
Although interest in men's suits, dress shirts and ngekwear
ceeded

that of the prior
moderately behind a




week,
year

total

ago.

volume

in

men's

ex¬

apparel

of

the

applied to
improvements'
sidewalks
and'
for the repay¬

loans

incurred for

Proceeds from the'

larger

issue

will

be

bank

loans

incurred

for

such

The

debentures

due

April

15,

1963 are not redeemable for other
than sinking fund purposes. Those
due April 15, 1983 will be redeem¬

able

at the option of the
city on
after April 15, 1968 at
redemp¬
tion prices ranging from 102% to
100% and prior to that time only
or

sinking fund

purposes.
Both
entitled to an annual

are

sinking
15,

fund

commencing April,
to retire, at

calculated

1959

100%
all

of their principal amounts,
the debentures due 1963 and'

all

the

debentures

due

1983,

by

maturity.
The

City of Edmonton, Capital

of the

cated,

Province of

Alberta, is lo¬
the North Saskatchewan

on

River

far

not

south

of

the

geo¬

graphical center of the Province.
Its

location

miles

tana

is

north

approximately 310

of the

Alberta-Mon¬

boundary line, 770 miles

northeast

of

Vancouver

miles west of Winnipeg.

ton, with
ulation

a

of

and

800

Edmon¬

present estimated pop¬
250,000
in the city

proper, is the sixth Canadian city
in population and the
largest in

the Province of Alberta.

Columbine Adds Four
(Special to The Financial Ciiiionicle)

DENVER, Colo. — Leonard N.
Bcstgen, Russell W. Horton, Elvin
R. Ingram and Lloyd E. Mercer
have

been

Columbine

added

to

Securities

the

staff

of

Corp., 1575

Sherman.

Dominick Adds to Staff
Carl M. Hess has joined Domi¬
nick & Dominick, 14 Wall Street,
New

York

City, members of the

New York Stock Exchange, as oil

analyst

in

the

research

depart¬

ment-

■"

ported.
of 2%

For the period Jan. 1, 1958 to March 22, 1958 a decrease
was recorded below that of 1957.

Retail

trade

sales

volume in

New

York

City

last

week

in-

15% above the level of the preceding week.
Easter buying and delayed demand due to snowstorms of
recent weeks were given by trade observers as the principal rea¬
creased

sons

12 to

Three With Hathaway
(Special to The Financial Chronicle) !

DENVER, Colo.—W. F. Hinman,
Victor L. Masters and Richard S.
McCrudden
ated

store sales in New York City

like period last year. In
increase of 9% was re¬
ported. For the four weeks ended March 22, 1958, an increase of
6% was registered. For the period Jan. 1, 1958 to March 22, 1958
an inr-rAasn nf 1%
was registered above that of the corresponding

become

affili¬

Investment

With Bache & Co.
CINCINNATI, Ohio —Ralph P.
associated with

Herron has become
Bache

&

Dixie

Co.,

Terminal

Building. He was formerly with
Merrill Lynch, Pierce, Fenner &
n

period in 1957.

have

Hathaway

(Special to Thjq Financial Chronicle)

for the weekly period ended March

22, 1958 declined 6% below that of the
the preceding week, March 15, 1958 an

witli

Corp., 900 South Pearl Street.

for the better showing a week ago.

According to the Federal Reserve Board's index, department

millinery;.gloves, hand-

tailers reported appreciable increases from

fell

bank

of

sale

be

purposes.

4% below the like period last year. In the pre¬
ceding week March 15, 1958 a decrease of 1% wds reported. For
the four weeks ended March 22, 1958 an increaseVof 1% was re¬

th^ comparable

to

local

1958, decreased

level.
ended
higher

below.'$o 3%

Atlantic and West South Central States —4 to

,

1957

Pacific'Co^st States +3
+6%; Eastjllorth Central

Central -f"2 to
England and Mountain

the Federal Reserve Board's index for the week ended March 22,

of

the/period

bv. Dun

estimates .varied

that

by the following percentages:

.-{-7%; West North

-f 1

the

trade

from

was

fell helow

cars

Volume in
canned goods expanded appreciably as grocers attempted to replenish depleted stocks. Trading in fresh meat, poultry, and cheese
climbed slightly, offsetting declines in eggs and butter.
Department store sales on a country-wide basis as taken from

While interest

mechandise.

passenger

transactions.in cotton gray goods continued to

lag. The call for wide industrial fabrics and man-made fibers
slipped again. Sales of woolens, worsteds and carpet wool remained
close to those of the preceding week.
A slight improvement was

by Easter Shopping

The.Past Week

fractional rise from the prior week in the

draperies.

Although trading in print cloths improved somewhat during

;

;

ately below those of a year ago.
Attendance? at the opening of the Boston Furniture Show
was better than expected.
Orders were close to those of a year ago
and best-sellers were occasional tables and upholstered living
room
merchandise. Volume in major appliances, television sets,
air conditioners and fans continued to lag behind that of last year.
Wholesalers reported a

-

Trade Volume Stimulated

draperies, but the call for linens slipped. In some regions an
upsurge in sales of barbecue goods occurred.
Grocers reported another slight rise in food volume during
the week, with principal gains in baked goods, canned citrus
fruits and" frozen juice concentrates. Volume in fresh meat, poultry
and most dairy products held steady with that of a w;eek earlier.
As increased consumer buying noticeably reduced retailers'
slocks, buyers considerably stepped up their purchase of women's
Easter apparel last week.
The most noticeable gains occurred in
Spring dresses, coats and suits. Volume in fashion accessories was
sustained at the level of the prior week. There was a slight rise
in bookings in men's lightweight suits and furnishings, while the
call for Summer sportswear was unchanged.
Although interest
in children's clothing expanded substantially, orders were moder¬
'

-

lamb

While purchases of small electric housewares continued at
level, volume in refrigerators and television sets slackened.
was a moderate rise in the buying of floor coverings and

a"high

;

will

of

streets,
lighting, or

issues

and occasional
ago.?

city.

applied to the cost of electric light
extensions, power plant, telephone,
waterworks, sewers and sewage
disposal plant, street paving, li¬
brary, health clinic and hospital,
parks and zoo, and bridge and
traffic lights or to the repayments

for
years.

•

was

issue

consumer

'

and

the

of

the

such purposes.

"the

recent

from

as

ment

chains.)

of around $88-$90 million
past decade.

direct

are

obligations

cost

sale

about $20 million to a current rate

thrust

earnings upward from the $1.50$1.59 plateau of '55 through '57.
Looking farther ahead, Market
Basket management has acquired
future

High

powerful-

were

buying

;

■

^

discussion preceding the

In the

debentures

street

neighborhood stores of a type which has become obsolete.
and for several years thereafter the company closed an average of three
stores, and at the same
time added an equal number of the newly

well-equipped

an

earlier.

week

sinking fund debentures,
15, 1983, which are

April

such

air-conditioned supermarkets, which created a sensation at the time. By
this process Market Basket has now become one of the nation's most impressively

on

unusually large 1958 Winter wheat crop is in
prospect discouraged wheat buying last week. Futures price fell
moderately. There was a slight dip in prices of pats and rye during
!the week, with volume sluggish. Corn, prices were close to those
; of the prior week.
Despite a government report that soybean
plantings this year would be noticeably above those of last, soy¬
bean futures prices in steady trading continued close to those of

issues

—

'

hand

total

a

consist of $2,000,000
sinking fund debentures,
due
April
15, 1963, which are
priced at 98.875, and $12,000,000

the

small

27

of

4%

The

designed

the corresponding date a year ago.

on

millers

1946

obsolete

with 281.46 in the

compared

24,

The

in

smaller
.

Dominion

of $14,000,000 of The
City of Ed¬
monton, Province of Alberta, Can¬
ada sinking fund debentures.

Proceeds

.17

The

and

Securities Corporation made pub¬

—

.40

-

group

priced at 97.50.

;"*( An interesting highlight of Market Basket's history is revealed by the con¬
stant number bf stores in operation from 1945 to 1952. One might think that there
had been no change in this era, but that is far from the truth.
In 1945 the chain

The general commodity price level rose

Inc., stood

Corporation

due

.40

28.0

„

•

banking

lic offering on April 3

in 474 %

Upward the Past Week

wholesale commodity price index, compiled by Dun &

investment

general
mm

-*1

I

An

.70

58.1

1955____.

Slightly

4i

'

•

headed jointly by The First Boston

2%

1957

prices at the wholesale level.

Wholesale Commodity Price Index Moved

•

Underwriting syndicate headed
by First Boston Corp. and Do¬
minion Securities Corp.

•

1956

.is to show the general trend of food

additions

recent

numerous

of

standing and long-term debt of
$1,690,150 was only 36% of net
working
capital
amounting
to
$4,636,300, indicating a high de¬
gree of liquidity.
There are no
present plans for public financing

were, in the aggregate, much less
profitable
in
1957
than
they

lower.

were

strong.

logical to anticipate
improvement
in
Basket earnings because

Market

The index represents the sum total of the price per pound of
raw foodstuffs and meats in general use and its chief function

<

is

For Investment

condition

at the close of 1957 was
No bank loans were out¬

company

substantial

Higher in price last week were hogs, bellies, beef, steers,
potatoes, oats, corn, raisins, cocoa, lard and sugar, while flour,
butter, milk, eggs, prunes, rye, wheat, barley, cottonseed oil and

V

burden
which
deferred.
It
for

would appear
a

financial

The

temporary

be 'shouldered,

ture years.

:
•

heavy

a

must

should

^7 The Dun & Bradstreet wholesale food price index rose 0.4%
from the preceding week's $6.67 to reach a new high for the year
of $6.70 on March 25.

35

J

TT.'ti

p.

The Commercial and Financial Chronicle

36

.

.

Thursday, April 3, 1958

.

(1524)

push off these ad¬
Some aspects of this
desirable and will
contribute to the long-run health
completely

or

Continued from

jirst page

adjustment

Spending
Stabilize the Economy?'

Can Government
be

to

government

when

Even

neutral.

policy

fiscal

government

By the middle of 1959, the total
of goods and services of
U. S. economy will be running at an annual rate of between
$455 and $460 billion.
Of this
total,
the
Federal
Government
output

justments.

in Federal Government
spending have been almost invari¬
ably an unstabilizing, rather than
a stabilizing, influence.
Consider,
for example,
the three postwar
changes

the

of

important

An

economy.

of these is

one

the

restoration of

of competition,
greater incentive to improved
production and distribution tech¬
niques, and a greater realization
that our economic system exists
greater

a

degree

a

to

the

serve

the

are

will be

purchasing about $55 billion, or 12% of national output,
Beyond 1959 let us consider the
rise in government spending
which will be probable if the de-

curb

spending during a

stabilizers cannot

built-in
whole

do

the

to time,
therefore, the government is faced
with

From time

job.

situation in which private

a

spending and private output have
fallen

the

below

well

maximum

capacity of the economy. Under
these circumstances, positive ac¬
tion by the government in the
form of tax reduction or increased

Federal purchases can take up the
slack in business activity, thus

carrying the
the

along until

economy

business

adjustment is

com¬

pleted and private spending once
again rises.
7y'/v'V .
;.
.

Advocates

Counter

Cyclical

Spending
If

fiscal policy is
truly stabilizing force and
simply a one-way street to in¬
flation, the government must be
just as prompt in cutting hack its
expenditures during boom times
as it is in increasing them during
government

to be

a

not

recession.

the

Ideally,

thus

ment

would

govern¬

become

a

bal¬

wheel, smoothing out the
inflationary surges and the defla¬
tionary dips and permitting busi¬
ness
activity to move forward
more steadily and more smoothly

ance

than would otherwise be possible.
The situation I have been de¬

That

ment.

was

Now

the

1948-49

look

at

the

adjust¬
1953-54

consumer.

The

of

record

is

a

of

World

mixed

Federal

II

:

beginning with the onset of

Reserve

cerned

with

the

end

to 1951, the

was

more

con¬

supporting the price

of

government
with
stabilizing

securities

by the Treasury, the Federal Re¬
permitted its open market
operations to become an engine

serve

of inflation.

Monetary policy be¬
came an unstabilizing,
rather than
a stabilizing, force.
Since

the

Federal'

Reserve-

Treasury accord of 1951, however,
monetary policy, even in hind¬
sight, has been remarkably good.
Restraint has been applied to curb
inflationary booms and the money
and

capital

eased

to

markets

have

been

assist

recovery
from
business downturns. We still have
much
use

is

to- learn

of monetary

no

about

the

proper

policy, but there

question that

the

policies

of the Federal Reserve-since 1951

have made

a

contribution to sta¬

bility of prices and output.
;
When we turn, to the record of
government fiscal policy, a com¬
pletely different story emerges.

local

In

addition

to

acceleration

an

projects already under¬
present situation calls

way, the
for a substantial across-the-board
cut

in income taxes.
income

tax

/

The corpo¬

rate

should

reduced somewhat, and individual
of fiscal policy.
impact of fiscal policy is income tax rates should be reduced
great to be ignored.
Fiscal by an average of 5 to 10%. The re¬

too

use

policy necessarily always will be
a
stabilizing or an unstabilizing

sultant stimulation would be im¬

influence.

finitely sounder fiscal policy than

The
of

use

at

need
the

for

more

economic

mediate.

It would

constitute

will

likely to incur,
Prefers
The

creasing
in

coming

the
real

our

Taxation

Increased

v

remaining method of in¬

years

government's share
output during the
is through increased

I have long argued that
income tax rates are

already too high.

They

are

seri-

in¬

the

also

disposal is even
more
pressing today, partly because of
the business adjustment we are
now experiencing and even more
importantly because of the prob¬
our

recession

measures.

be
rising faster than
output, the fiscal policy

problem in the years ahead begins
to assume major importance.
The
pay

major - problem is how to
for these government expen-

tures

as
defense
expenditures
unavoidably rise, then there simply must be some reduction in

the

of

share

output
private

consumers.

terms oi real goods and services. If both the Federal govern-

en?l;abY7SfoYUPlarenrTsentUanPrex:

govlrnm^tflre'to se"an

in a

Lreasing

share of

some means

our

national

must be found

nUL

ver?

^ Pro!

temporary

^l^t^n'to Yu™ dtpressed
demand

exDect7he

economy to

its

I

woducUve

goodl mVseVvtofwSYafeThe
serviced YaTbe tlk^awaY^from

•

total

our

which ican'be devoted to

ditures—not simply in money, but
in

slow-moving public
works
output,
projects which are now being pro¬
posed under the guise of anti¬

intelligent
techniques

even of the American economy,
probability that state and jf we are unwilling to cut back
government expenditures non-defense government
expendi-

national

be

The

"fullest &

Although there is need for ac¬
tested to the
The major
celerated action, it is heartening private consumers and allocated the years beyond.
problem of the next five years
to realize that, for the first time to the
government?
fill not be over-capacity, but inlems which I believe will face in the postwar period, government
First, there is the method which
lation.
us in 1959 and
subsequent years. expenditures are now being used has been
employed all too fre¬
Conclusion
Let me discuss the fiscal policy as a stabilizing force during a
business recession. The only seri¬ quently in the past — deficit fihave
problems in connection with
recently
begun
to
nancing through the banking ,
Z\n3;I
first, the immediate business sit¬ ous defect in current use of fiscal
system.
We create new money,
the importance of sound
uation in 1958, and second, the policy is the confusion between
give it to the government, and
business and price situation in long-term and short-term proj¬
the government uses it to outbid
^
importance of! intelli1959 and the years thereafter.
ects.
Slow
starting long - term
private consumers for the availpublic works projects are not
good, because fiscal policy can be
The
immediate
fiscal
able supply of goods and services.
policy
one of the strongest^and quickest
problem facing us in 1958 is that anti-recessionary, and will present The
—

P^rn

-

seribus

of

using government spending and
taxing to assist recovery from the
present business
not

believe

it

recession.

I

do
.:

would

have

-

•

The 1959

'

-

-

—an

Situation

important fiscal policy-prob¬
be to meet the rapidly

expanding

defense heeds

of

nation without

the

succumbing to the
needed in the economy,
neither fiscal hor monetary* ever-present threat of destructive
are

-

.....

'.

.

.

se-

its larger .share of goods and

thtough inflation

through reducing

lem will

entirely the current busi¬
adjustment. At times adjust¬

ments

thus would

government

cure

services

Now turning to 1959. and beyond

prevent

and

inflation

and

been

fiscal policy for the gov¬
ernment
to
have attempted
to
sound

ness

taxation

problems for the future.

During the postwar period, major policy should be used to forestall inflation.




been a chronic savings shortage
in the United States.
Unfortunately, there is little likelihood
that saving can be increased sufficiently in the years ahead to
completely finance the sort of
deficit which the government is

)^hen we add to this trend the
further

Calls for Tax Cut

Also

stabilizing onslaught of this irra¬

than

the
economy.
During this period of domination

to government without causing in¬
flation. There is much to be said
for this method—there has in fact

,

tional

From
up

will

government in exchange for

government securities, this would
shift a rising share of real output

ously damaging incentives to
produce and to innovate. But the
the business contraction and con¬
defense program is going to be
tinued to cut back spending
paid for — if not through direct
throughout; the whole recession.
taxation then through indirect,
From the middle of 1953 to the
and highly unjust, taxation by
end of 1954, Federal Government
inflation. Faced with this choice,
purchases of goods and services
mean?
I believe it is sound fiscal policy
orders were delayed until later
were
reduced by the very large
when the economy is already fully
ona„Ai„„
and wise social policy to meet
Inevitable Spending Rise
sum Of $15 billion.
It is true that
the problem directly, by applyincome tax rates were cut at the employed.
During the years ahead, the real
ing SUch new or higher taxes as
(3) If more defense goods are
beginning of 1954 and this did
output of our economy can be ex- are necessary and unavoidable,
stimulate consumer spending, but secured in 1958, it will be possible paiided
by about $19 billion a year Once again, I am
discussing the
to hold government spending in
the amount of the tax cut was in
at the maximum as the result ol
problem as I see it over the next
the neighborhood
of $4 billion, 1959 to a somewhat lower level the growth of our labor force and
flve years<
A tax rise in 1958
which did not go very far toward than would otherwise be neces¬
improved productivity made pos- would be
the poorest
kind of
offsetting the $15 billion reduction sary. There is real danger that sible through more and better
policy, and a temporary tax cut,
the 1959 situation may be seri¬
in government buying.
capital equipment.
Of this in- to my mind, would be sound proMore recently, in 1956 and the
ously inflationary. Anything crease of
$19 billion in real out- cedure. But in 1959 and beyond,
first half of 1957 when the econ¬ which can be done now to make
put, the Federal government will we wiR have to face
up to the real
possible lower government spend¬ absorb
omy was booming and prices ris¬
at
least
$3 billion,
or burden of expandng government
ing, the government increased the ing in later years will have the almost 16%
compared to
12% programs in an already full econrate of its expenditures by over two-fold advantage of stimulating which is
the present share of the
omy. These government programs
$4 billion—thus intensifying in¬ business at present and curbing Federal government in national
either must be cut back, or we
inflation in the future. It follows
flationary
pressures.
Then,
as
output. It is clear, therefore, that must admit
openly, and assume
business began to turn down in that we should avoid at all costs not
only will government spend- directly, the real sacrifice which
the third quarter of 1957, a severe the type of public works program
mg be rising, but it will be rising paying for them will entail. It is
cutback was imposed on govern¬ which is slow getting underway, faster
than national output so that
pleasant to imagine that we can
will
contribute
ment orders and expenditures.
nothing to the the Federal
government will be continuously plan for more guns
Government fiscal policy in the stimulation of business at present
getting more, and private pur- and more butter, but there are
whole postwar period has been and will
compound inflationary chasers less of our total
output, limits to the productive capacity
characterized by almost unbeliev¬ difficulties in the future.
tures

monetary policy

one.

War

expenditures

the

personal

rate

since World War II.

.

method? of reducing

second

A

private

year cumulatively over the comgiven a substantial lift, so that
I am not here
by year-end full operation of the ing five years.
evaluating the
desirability
or
economy would be reestablished.
(2)
We
would
secure
badly necessity of such an increase, but
needed defense goods at relatively simply stating that it is likely to
If it does occur, the prolower real cost. If presently idle occur.
manpower and plant were used to portion of our total output going
to the Federal government will
produce these goods, the real cost
would be much lower than if the begin to rise. Now, what does that

Federal
Government reduced its expendi¬
Here again the

contributed

stability

sound fiscal policy.

taxation.

of defense

economic

which would most clearly violate

probably rise by at least $3 billion

scribing is what coidd happen—it ably poor timing, and in fact by
is the way in which government an apparent disregard for the tre¬
fiscal policy is supposed to work. mendous impact which changes in
Unfortunately, the real world government expenditures have on
often doesn't follow the economic the economy.
It is remarkable
textbooks.
Let's see what mone- that
the
private
economy
has
borne up so well under the un¬
tary policy and fiscal policy have
to

government

(1) Business activity, already
receptive to an upturn, would be

a

recession.

tionary method is the path of least
resistance, but it is also .the path

consumption
would be
fense program is to be accelerated deficit financing
by the governat the rate which now seems most ment accompanied
by a substanlikely.
*
tial increase in private saving. If
No one knows at this stage just private individuals voluntarily
how much money will be required reduced
their
consumption and
to provide an adequate defense delivered more of their incomes fb

expenditures remain constant,
they nevertheless exert a strong
Advocates Slepped-up Spending
impact on economic activity, and
recessions.
7
i■
While
it would
have been a
changes upward or downward in
mistake
to use either monetary
the volume of government spend¬
Assails Unstabilizing Spending
or fiscal
policy in an attempt to
ing inevitably have a marked ef¬
In
1948, just before the first prevent the current adjustment, for the United States and for the
fect on both prices and output.
both of these techniques should free world. But responsible estiWe are living, today in an econ¬ postwar recession, Federal Gov¬
ernment expenditures were rising, be used to ensure that the adjust¬ mates indicate that defense exomy which is greatly influenced
contributing to the pre-recession ment does not become cumulative. penclilures
may have to be inJay government s p ending and
boom and inflation. As the reces¬ Sound
fiscal
policy dictates • a creased by $2 billion cumulatively
taxing programs—an economy in
sion got underway in 1949, mo¬
rapid stepping up in government per year during the next five
which government fiscal policy is
mentum kept government spend¬ defense orders and in
government years.
Non-defense spending —
every bit as important as govern¬
ing rising for a while, but Federal spending during the first half of which includes Federal
ment monetary policy in stabiliz¬
grants for
Government orders were cut back this
year.
In fact, a much more the highway program and urban
ing. or in unstabilizing, business
just when they were needed most. rapid acceleration than, has actu¬ renewal,
Federal
assistance
to
activity and prices.
Government
fiscal policy, if By the time the recession was in ally occurred would be justified, education, losses under the farm
full swing, expenditures by
the provided
that
the
government price program, reclamation proproperly used, can exercise a
Federal Government were declin¬ stands
ready to be just as prompt jects, and various other public
stabilizing effect on the economy.
ing and they continued to decline in reducing' its orders and spend¬
Some aspects of government fi¬
works, in addition to all the northroughout the remainder of the ing once a high rate of business mal costs of
nance automatically have such an
running the govern¬
business adjustment. Fiscal policy
activity is reestablished.
Three ment—is also likely to increase
effect What have come to be
at the time of the 1949 recession
important advantages would flow by a minimum of a billion dollars
Called the "built-in stabilizers"
,thus made little contribution to from an acceleration in
tend to maintain private incomes
govern¬ a year.
stability and may, in fact, have ment expenditures at present:
This means that total Federal
during a business downturn and

boom. The prolonged the recession.

would require a continual upward
revision in government spending
estimates, followed in turn by the
need for further deficit financing
and further inflation. The infla-

the

-

purchasing

of

private consumers, by
curtailing, the- value of their
money.
This. method would in
power

effect

impose

a

tax—but

a

par-

I' ^abilization

techniques availably

to th?government. There is also
gro^1.??

evidence

of. increased

men?—WnartKta^T Siwmeht
^ agreement^
01?. ^
^
C P^inciP^®
w

j

which should guide government in

Ocularly taequitable tax - on all
stabilization techniques.
private.purchases- Andsince the,
we
f* maprice of goods and services to the prompter and more intelligent use
government

Would

also- rise,

it -pf

fiscal*^policy^ in

-

dampening

Volume

down

187

Number 5730

*

to long

up

namism which has made

reces-

We must also have the

to face

age

(1525)

inflationary booms and in tern provides the drive and dy- trend

easing periods of business
sion.

The Commercial and Financial Chronicle

...

of

cour-

fiscal

run

and

policy problems, such as the expanding
defense
program,
and
meet them frankly,
rather than
deviously through inflation.
The private sector of the economy under a free enterprise sysr~

'

7

Continued

~

economic system

productive.

so

I believe that

sound and intelligent
ernment fiscal

policy

use

can

th_

in

of gov-

add sta-

wuilA

y
the same time

y.

.,

tion

greater

that

means

swings

inflation

as

becomes

a

more

of

way

financial

and

and

more

This

life.

is

because "galloping" inultimately, but also inevitably, leads to a collapse or a sharp
necessary

ing
previously

repay

1

Outlook

i

activity. ;; ;*

Interest

for

Rates

the

growing availability of funds

cant,
eral

stimulating

effects

in the economy.

areas

sev-

on

for the first time in
their total of $5.2 billion
considerably under their

record

The end of credit restraint and

■t

1957
years,

figure

of

1956.v Moreover,

for

mand

billion

$6.7

increased
loans and

policy

in

dere-

Keep

in

out

loans,

and

chances

character risk

of

stock

a

bond market.

gains

of tip

months

than

market

a

In fact, there were

to

10

points

in

two

top-grade

corporate
bonds.
This lower price and increased availability
will be an
important factor in the decision
of
corporations on
automation,
on

other

plant and equipment expen¬
ditures, and on expansion, in gen¬

eral.

1

_

.

f

-

,

'

■'

•

<

.

,

.

,

Of special

,

,

.

interest to lenders

i|

i*

i

il

•

homes, the decline

the

in

lenders

S1°n

can

.

J

a

years

the

teen

has

Rented

wil1 be great-

ine cities,

1957

farm

uur iyo/ larm popu

state

local

and

rowing, which rose sharply from
$5.4 billion in 1956 to $6.8 billion
in 1957, to expand even more to
meet
the
urgent
and
growing
needs
for
community
facilities
such

as

water, schools,
etc.
This will

sewers,

Jiospitals,

streets,

But

•

the

backlog of new bond
awaiting their turn to be

issues

in the market is quite high,
fact, at record levels in some
fields. Likewise, there is a consold

in

siderable

amount

of

corporate

borrowing from banks which will
be shifted to the bond market
interest rates become
tive.

more

So, don't expect much
in the long-term

more

fireworks

market for

as

attrac¬

bond

while.

a

Short-Term

Money

the

on commercial paper

during

the

first

counter

fashioiVthe

yield

bills

Treasury

on

^dropped from 3.58/o, last October
ot

1.55%

lower

since.

the

in

February and even
Also, the reduction

in

rate

prime

the

and

in¬

creased availability of such money
Will ower the costs of large bor¬
rowers and

ac¬

in

massive

credit

creation

r;

policy

of

the Federal Reserve

and

reserves

a

by

banksj mort¬

did not become readi¬
ly available until early 1954, and
it was August 1954, before rates
gage money

'on

conventional

loans

had

de-

.clined one-quarter to one-half per
cent and before the discounts on

decline

ers,

of

our

the

discouraging.
iac^.

connection, keep in mind

:that the insurance companies and

large

banks nol longer
have
holdings
of
government

bonds

they

can

sell

and

the proceeds in

invest

mortgages, as they
fact, the invest-ment of new mortgages by life
3nsurance companies declined in
1954.

on

a

But it is

a very real
responsible
financial institu-

which

heads

of

^ions

your

must

the

come

to

grovvinp' proportion
growing uroDortion

In




Announcement of the terms of the issue

10-year maturity.

grips.

The

of non-workof non-work

very

where produc¬
difficult to increase

to those in production!),
number of people w^0 think; that we can have
up

the growing

missiles, bigger welfare

1T10re

pro-

grams> and ap the good things of

simultaneously,

through

miracle of ever-greater credit

the
ex-

pansion) make inflation the greatest danger of our time. The current slackening in business must
not

cause

bankers to overlook the

reajity and the imminence of this
threat to our way of life.
Basic Policy

What
ers

on

somewhat of

a

In

event, there's

any

no

of Australia Bonds

do to protect

inflation, other than fight

The

first

for

that Sir Arthur Fadden, Treasurer
of the Commonwealth of

another

some money

decline

market specialists,

has

are

statement

in

confirmation to

a

that be.

When

underwritten

a

The

in money conditions.

ease

hand, when the discount rate is being advanced, this
is usually a confirmation that
tightening money market conditions
are to be anticipated.

earlier

downward revisions

in

the

discount

Since

the

aforenoted

un¬

The

culated
the

to

issue

of

United

in

the funds

which the

member

banks

of

States

fering

of

bonds

in

what

thing is to recognize

it really is.
Instead
succumbing to the it-can'thappen-here-lotus-eater type of
philosophy, face up to the fact
that "creeping" inflation inevit¬
ably changes to "galloping" infla¬

of

tion if pursued long enough. More
and more people borrow more and
more

appears

to be

very

authorities,

monetary

in

little doubt but that the action of
allowing the discount rate to be

reduced several times and its decrease in the

reserve requirements
system, is registering the intent at
least of making money market conditions easy enough to take care
of the needs of the Treasury. Also, these money easing moves on
the part of the powers that be, will likewise leave some funds
available for the private sector of the economy so that their needs

of

the member

will be taken

of

of bonds

market

in

was

the

an

of¬

$120,000,000 15-year 5%
March, 1957.

Specialists in

banks

care

of

of in

•

the

Federal Reserve System keep with the Central Banks.

the

50%

conditions.

decrease

There

about

maturity.

Commonwealth

the

Therefore, it is not unusual to find money market specialists
who hold the opinion that the not distant future will witness
another

sinking
retire

before

sinking
fund" is cal¬
the

The last previous sale

,

decrease

•

for

except

gone

impending (second) new money raising operation of the
Treasury, the money market has been and is very likely to con¬
tinue to be on the side of ease. As long as the economy is
definitely
on the defensive there is not
going to be anything but favorable
market

redeemable

1968

fund.

"now the

money

The

bonds will not be

rate

in the prime bank rate, the
down to 2%%, the reserve requirej ments of the member banks of the Federal Reserve System have
been reduced twice by % of 1%. Even in spite of the
first, and

the

Australia.

til

a

Central Bank rate has

throughout

projects

Commonwealth of

cut in the prime bank rate from 43/2% to 4%.
Money market conditions were not as easy at that time as they are
now.

to finance various public

works

Conditions Suggest Further Cut in Bank Reserves
the

of the issue will

proceeds

be used

On the other

brought with it

The issue will be
by a group of in¬

vestment firms headed by Morgan
Stanley & Co. Public offering of
the bonds is expected to be made
about April 22.

lowering of the Central
Bank rate is followed by another cut in the discount
rate, this is
generally taken to mean that the monetary authorities are giving
program of continued

bonds.

year

being

powers

a registration
today (April 3) with the

Securities and Exchange Commis¬
sion covering $25,000,000 of 15-

in money market circles, however, that the course which is fol¬
lowed by the discount rate indicates the policies that are

pursued by the

Australia,

just announced that the Com¬

monwealth is filing

the prime bank rate.
The
successive decreases in the discount rate has tended to
bring down
the cost of obtaining funds, even
though the cuts in the Central
Bank rate have been mainly
psychological. It is a well known fact

sav¬
rav¬

you

of

Beale, Australian Am¬

bassador to the United States, said

Presaged

U. S. GOVERNMENT

Continued Money Ease Foreshadowed

and institutions from the

can

rates, in the opinion of

on

to Offer Commonwealth

gainsaying the fact

as

One of

cure-

Morgan Stanley Group

banks.

the forerunners

Inflation

it at every opportunity?

it

as

the yield of short-term Government
evidenced by the smaller return on Treasury bills
and the continued decrease In bankers
acceptances and commercial
paper

a

.

The downward trend in

industries

tivity is

practices.

Howard

to working population,
the
growing proportion of workers in

service

came

Cut in Prime Bank Rate

securities,

as

leadership and harder work for all
hands in savings and home mort¬
gage lending in the days ahead.

issue is tailored to meet with the
requirements of the

new

commercial

on

careless policies
On the contrary,

or

saving,
spending,
and
business
stability necessitate greater liqui¬
dity, greater caution, more able

surprise to some money market specialists whose thinking as to
the type of maturity ranged all the
way from a strictly one-year
obligation to a package offering to include either a 7-year or even"

ing

and

Federal agency

the

some

measure.

SECURITIES'^

.

This pressure towards lower interest rates and a more ample

supply of credit by the monetary authorities

appears

to be making

it more difficult for the commercial banks to maintain the prime
bank rate at its current level.

It

seems

as

though the powers that

money
to buy more and
things, whether needed or
not? before the price goes up. This

be are very desirous of having the entire loan rate structure
brought down, and the trend in that direction is usually set by a
reduction in the rate charged by the commercial banks to its prime

js ^rue nof

[•redit

more

onjy Qf individuals but
corporations and govern-

als0

in

our

to further inflation to stop
decline in business is indeed

mental units.

did

business

business leaders insist

our

been consequentially reduced.

savings

in

political lead¬
labor leaders and many

Federally underwritten loans had
In this

by

resort

ages of

Mortgage money is slowly be¬
coming more available; but con¬
siderable time-lag must be ex¬
pected here. In 1953, for example,
although there was a sharp re¬
versal

taken

Outlook for Inflation

The

enable them to follow

normal

inventory and
counts receivable policies.

more

the

The fact that

six

«f^erJs °f liVf year' dawn to 2/°*2*/&%.
In the same
market

action

further

activity.

keep

Market

In the short-term, or money,
^market, .commercial paper dealers
times

the rapidity

(yet, they must have increases to

r.

six

1 aP

the Federal Reserve authorities to

and

,:cut the rates

...

P
on

lic

works, which will certainly be
helpful in 1958.

Governments

on

®

of the further decline will depend

increased spending for pub¬

mean

Reporter

short-term market,
is definitely downward;

l

V

must not be relied

By JOHN T. CHIPPENDALE, JR.

„
„

®

au¬

the danger of in¬

renew

savings and home mortgage insti¬
tutions.
In particular,' inflation

nomi-

Treasury announced late yesterday (April 2) that its
much-awaited April new money financing will consist of an offer¬
ing of $3,500,000,000 2%% Treasury notes, due Feb. 15, 1963.

iiiuimibf

.

deficit

and

money

The change in credit
policy has
thus
brought real problems to

•

ibe

Our

easy

thorities,

The

that the

.

flation.

and

a

barrel

the adverse effects of inflation

Our

mrinu,c

of the

efforts of the Federal Reserve

shttt fromto farms to

cities

the

all for unwise

although the trend is down,
further action in the long-term
market will be slower than in re-

vvilv

the bottom

country population.

that

tt~

.

under such conditions of infla-

So,

will enable
government boy-

than

financing being prescribed to cure
it
will, despite the determined

the 30s, and Woild War II.
eP
that one of the
PYf1!

-

the credit base and related factors.

cost of

the

111

1950,

that the readjustment will not be
permitted to run its course, and

4s

+

other

many

'Need f°r

capital conditions. Moreover, some
of this anticipation is not even
yet fully justified by changes in

municipal borrowing

as

(making allow¬
normal increase)
came

close to
in

.

on

4,662,000

more

housing. Obvi¬
ously, this rate cannot continue
indefinitely — we are getting too

c°?-

5,^1? *5? »o?!i

on

take,' but
shouldn't, it will only compound
the problem.
v;:r.rv
•-

re<Iuced amount of l"5'*
Summarizing the outlook for
interest rates, most of the action
in the long-term market has been
based
anticipation rather than
actual changes in monetary and

that

is
late

as

that

to the demand for

f1.
business in the
period^ was merely a

all mistakes in ap-

on

weight to

less insurance money available for
mortgages in 1958 than even the

The upward swing in

was

people

for

ance

Sages indicate that there will be

the performance looked more like

conditions.

20,396,000

indicates

5,000,000

n:c10g?ize .«**• m"ch 01

prepayments and payoffs of mort- ei unaer such conaiuons oi imia

,,

bonds, set

such

^ P®°Ple,^h.ave, be6on to

Instead of inflation bail-

you

due

andeda ZaKnslo^n«UdhownaTn
and a marked slowing down in

in motion by the first cut in the
discount rate, was so sharp that

under

which

=

praising, in payment of too high
five rates on savings, in failing to give

being

v

•

•

the

of

than it

agencies, you can see that governConclusions
ment on all levels is planning to
take around 31% .of the Gross NaMy conclusions are very short.
! tional Product in 1959! k
•;
'
They center on the disturbing fact

So, don't sacrifice strength for

—

to

alone in fiscal 1959 are projected
at $86.7 billion. Adding to this an
additional $50 billion of spending
by the 102,000 state and local government spending units and their

bankers must

in business

factors

contracted debt.

weight

burden

tax

inflationary

prepared for wider and wider

income.

to

Jation

another shot of "the hair of the mind that even under present to the cities in that seven-year
clog that bit" us.
conditions, Federal cash payments period, and added just that much

decline in business

income

normal

more

Us

flation

their

under

less

probable

give

measures

than

growth.
Give

increases,
financing, or

deficit

other inflationary

This

10

page

end, unless inincreases in ex-

an

productivity

government

.

,

to

wage

of

cess

preserving its free-

dom and vitality.

~~

from

comes

type flationary

our

successful

so

37

of

The inevitable fruit

of inflation is
less saving.

more spending and
Prices get beyond the

reach of those living
comes,

which

on

fixed in-

undermines

the

market at

a very critical time, as
supply has been greatly expanded
met an apparently insatiable

to

demand.

tionary

This

bubble

breaks

and

the

the

infla-

upward

risks.

Aubrey G. Laxston
Loan Decline to Accelerate

8c Co.

The lessened demand for loanable funds from business enter¬

prises is expected in some quarters to be considerably in excess
of the 13% decline predicted in certain sections of the financial
district. The fact that expenditures for the expansion of plant and
equipment will take less money this year than was true in 1957,
will make more funds available for other purposes.
For the
moment, reports appear to indicate that a sizable amount of these
funds are being put to work in the most liquid Treasury obli¬
gations.

incorporated

20 BROAD STREET
.

~

NEW YORK
☆
CHICAGO

☆

☆

BOSTON «

38

The Commercial and. Financial Chronicle

(1526)

.

Thursday, April 3, 1958

.

.

* INDICATES

it Adams Engineering Co.,
(4/21-25)

in

Now

Securities

March

April 1 filed $2,000,000 of 6*2% convertible sinking

Proceeds

indebtedness due

on

fund

—

cago,

it Bakery Drivers Real Estate Corp.
31 (letter of notification) 1,500 building

March

Underwriter—Cruttenden, Podesta & Co., Chi-

a

Manufacturing Corp.
Feb. 10 (letter of notification) 5,000 shares of common
stock (par $1). Price—$6 per share. Proceeds—To go to
selling stockholder. Office—Germantown Road, Middletown, Ohio. Underwriter—Greene & Ladd, Middletown,

Bankers

1983.

lanta, Ga.

(4/11)

1988.

To

21

Can Co.

(4/9)

filed

$80,000,000 of 30-year debentures due
Price—To be supplied by amendment. Proceeds—

$40,000,000 of its outstanding debt and for
working capital. Underwriters—Morgan Stanley. & Co.
and Clark Dodge & Co., both of New York.
redeem

American-Caribbean Oil Co.

(N. Y.)

—

stock (par 20(0.
Proceeds — To
discharge current liabilities and to drill ten wells. Un¬
derwriters—To be named by amendment.

New York.

American Mutual Investment Co., Inc.
Dec. 17 filed 490,000 shares of capital stock. Price—$10.20

on

per

Feb. 27 filed 112.565 shares of
offered

be

the basis of

share. Proceeds—For investment in first trust notes,

Underwriter

None.

Sheldon

Magazine,
Highland Drive, Silver Spring, Md., is President.
—

Anderson Electric Corp.
Dec. 23 (letter of notification)

1201

14,700 shares of class B

stock (par $1). Price—$12 per share. Proceeds
—To go to selling^stockholders. Office — 700 N. 44th
/ Street, Birmingham, Ala. Underwriters — Cruttenden,
JPodesta & Co., Chicago,.111.,;,and Odess, Martin,& HerzUerg, Inc., Birmingham, Ala.

-

„

&

March

Proceeds

•

2,

$6.50).
—-For

Sachs &

T

—

of New York.

the

rate

stockholders of record April
of $100 of debentures for each 18

common

held; rights to expire

on

AmjW 16.

Price

of principal amount.

Co., both of New York.

stockholders

of

100,000 shares

record

are

Dec.

16,

1957).

The

remaining

to be sold for the account of the Estate

of A. M.

Collings Henderson on the American and To¬
Exchanges. Price—At market. Proceeds—
selling stockholders. Office—Toronto, Canada. Un¬

ronto
To

Stock

derwriter—None.

it Central Hudson Gas & Electric Corp.
1 filed $18,000,000 of first mortgage bonds, due

April
1988.
To

Price—To be supplied by amendment. Proceeds—

repay

short-term

Underwriter

—

notes

and

To be named

for new construction.
by amendment (probably

Kidder, Peabody & Co., New York).
.

^Australia (Commonwealth of)
(4/22)
April 3 (today) a registration statement is expected to
be filed with the SEC covering
$25,000,000 of 15-year
bonds. Price—To be supplied
by amendment. Proceeds
—To finance various public works
projects. Underwriter
—Morgan Stanley & Co., New York.

Central Mortgage & Investment Corp.
Sept. 12 filed $5,000,000 of 20-year mortgage bonds and
500,000 shares of common stock (par five cents) to be
offered in units of $100 of bonds and 10 shares of stock.
Price—$100.50 per unit. Proceeds—For purchase of first
mortgages or to make first mortgage loans and for con¬
struction

business.

Office—Miami Beach, Fla
Under¬
Seci/rities Corp.. New York OfferingDate indefinite. Statement effective March 12.
writer—Aetna

PRIME MARKET FOR SECURITIES!
In

Chicago (and Mid America there are over 1,400,000 stock¬
They own more than $20 billion in securities. Your

holders.

best

means to

reach these midwest investors is to advertise

in the Chicago Tribune. The Tribune
puts your securities ad¬
vertising before both the general public and the professional
investor. It is more widely read than
any other standard-size
newspaper in America. See your Chicago Tribune represent¬

Washington,'D. C.

^

I ^
Chess Uranium corp.

May 14 (letter of notification) 600,000 shares of
stock

(par

$1—Canadian).

Price—50

cents

common

share
(U. S. funds). Proceeds—For exploration costs, etc. Of¬
fice—5616 Park Ave., Montreal, Canada.
Underwriter—

Jean

R.

Veditz

Co.,

Inc.,

160

Broadway,

o

l fe
'

ir Cooperative Trading, Inc., Waukegan, III. /
March 26 (letter of notification) 10,000 shares of common
stocks^ Triee:—At par ($10. per shar£);ixl^

outstanding

indebtedness

and

retail sale of fcod and'for

—None.

to improve facilities for
working capital.-Underwriter

.yV,:

it Copper

Research Associates,: Inc. ,/.«'/
March 28 (letter of notification) 1,600 shares of
,

(no par). Price—$100 per share.

common

Proceeds—To

re¬

current short-term loans; for. purchase of the Cam¬
den Paint Mfg. Co. plant and other
corporate purposes.

Office—728

Market

None.'

■

.*

Counselors

St.,

Camden, N. J.

.

Research

Fund,

Underwriter—
.<\{i

per

New

York.

Lpuis.

Counselors

—

Research

Robert II. Green is President.

Sales

Corp.,

Cubacor Explorers, Ltd.
Ocjt. 28 (letter of notification) 600,000 shares of
stock (par $1-Canadian).
funds.
Proceeds — For

St.

•

Price—50 cents

common

share-U. S.
and drilling costs.

exploration

per

Office —Suite

607, 320 Bay St., Toronto, Ont., Canada.
Underwriter—Stratford Securities Co., Inc., 135 Broad¬
New York.

Offering—Postponed indefinitely.

it Cuban-Venezuelan Oil Voting Trusts,
Havana, Cuba
March

31

filed 767,838 units of

voting trust certificates,

each certificate representing the ownership of one share
of common
stock
(par one-half cent) in* each of 24
Cuban companies.
Price — To be supplied by amend¬
ment.

Proceeds—For

capital

expenditures, exploration

costs and other corporate, purposes.

Underwriter—None.

Daybreak Uranium, Inc., Opportunity, Wash.
29 filed 3,156,774 shares of common stock
(par 16
cents), of which 630,000 shares are to be offered for ac¬
count of company and 526,774 shares for selling stock-1
Jan.

holders.

Price—At

Proceeds—For exploration

market.

Under¬

writer—Herrin Co., Seattle, Wash.
Diamond

Gardner Corp.

(4/16)
$25,000,000 of sinking fund debentures
be supplied by amendment.
Pro¬
ceeds—To retire a $12,000,000 bank loan and for expan¬
sion and working capital. Underwriter — Blyth & Co.,
Inc., New York.
•
• '
/■
•
March i25

filed

1983.

due

Price—To

,

,

Diapulse Manufacturing Corp. of America
Jan. 29 (letter of notification) 150,080 shares of common
stock (par 10 cents).
Price—$2 per share. Proceeds—
For general corporate purposes. Office—276 Fifth
Ave.,
New

York, N. Y.

Underwriter—None.

,

Digitronics Corp.
Feb. 12 (letter of notification) 140,000 shares of class B
capital stock (par 10 cents). Price — $1.50 per share.
Proceeds—For general corporate purposes. Office—Albertson Avenue, Albertson, Long Island, N. Y. Under¬
writer—Cortlandt Investing Corp., 135 Broadway, New
York 6, N. Y.
•

Directomat, Inc. (4/10-14)
(letter of notification) 300,000 shares of com¬
stock (par one cent). Price—$1 per share. Proceeds
—For working capital and payment of current liabilities.
Office—Hotel Roosevelt, Madison Ave. and 45th St., New
York 17, N. Y. Underwriters—James Anthony Securities
Corp. and Norton & Co. both of New York- City;
Schwerin, Stone & Co., Great Neck, N. Y.; and Mac Robbins & Co., Inc., Jersey City, N. J.
March 17

mon

Disc, Inc., Washington, D. C.
Oct. 10 filed 400,000 shares of class A common stock (par

$1).

Price—$2.50

share. Proceeds—For investment.
development of real property,
and acquisition of stock of business enterprises. Under¬
per

Business—Purchase

and

fflljxra^o Qftibmue
THE

America's

WORLD'S

most

GREATEST

NEWSPAPER

widely circulated market table




pages

Refining Corp.
$25,000,000 of first mortgage bonds due
Sept. 1, 1968, $20,000,00 of subordinated debentures due

writer—None.

Oct. 1, 1968 and 3.000.000 shares of

ative for the details.

Dec. 24 filed 165,625 shares of common stock (par $1) to
be offered for subscription by common stockholders at

'Commerce Oil

Dec.

16

filed

offered in units

common

stock

to

be

follows: $1,000 of bonds and 48 shares
of stock and $100 of debentures and nine shares of stock
Price—To be supplied by amendment.
Proceeds — To
as

Irving Lichtman is President and Board

Chairman.
Dixon

the

rate

Chemical

of

Price—To

construct refinery.

expansion

York.

Clifton. N.

Underwriter—Lehman Brothers, New
Offering—Indefinite.

.

Inc.,

St. Louis, Mo.
Feb. 5 filed 100,000 shares of capital stock, (par one
cent).
Price—At market.
Proceeds—For investment.

,

quisition of all the assets of Yorcan Exploration Ltd.
(latter proposes to distribute said shares ratably to its

Eastman

-

Co.

Campbell Chibougamau Mines Ltd.

Dillon, Union Securities & Co. and Smith, Barney & Co.,
both

an additional 600,000
Price—$22.26 per share.

March 10 filed 606,667 shares of capital stock (par
$1),
of which 506,667 were issued in connection with the ac¬

filed

Underwriters

.<

K St., N.W.,

and drilling costs and other corporate purposes.

Smith, Barney & Co., both of New York.

program.

amendment)

Proceeds—For working
Underwriters—Lehman Brothers and Goldman,

capital.

(4/16)
of cumulative preferred
Price—To be supplied by amendment.

construction

1958 at

shares of stock

City Electric Co. (4/16)
120,000 shares of common stock (par
Price—To be supplied by amendment. Proceeds

19

subscription by

—At 100%

Atlantic
March

(by

Brunswick-Balke-Collender

for

To repay bank loans and for construction
Underwriters—Eastman Dillon, Union Securi¬

ties & Co. and

filed

11 filed $8,593,200 of 15-year 4%% convertible
subordinate debentures due April 1, 1973, being offered

—

program.

28

program.

w

Associates, 1511

way,

New York

March

Atlantic City Electric Co.
19 filed 50,000 shares

(par $100).

Underwriter—Mann

Gould, Salem, Mass.

shares of capital stock (par $1).
Proceeds—For investment.

U. S.

City Electric Co. (4/23)
March 19 filed $10,000,000 of first mortgage bonds due
1988. Proceeds—To repay bank loans and for construc¬
tion program. Underwriter—To be determined by competitive bidding. Probable bidders: Iialsey, Stuart & Co.
Inc.; Eastman Dillon, Union Securities & Co. and Smith,
Barney & Co. (jointly); Blyth & Co., Inc.; The First
Boston Corp. and Drexel & Co. (jointly);
White, Weld
& Co. and Shields & Co. (jointly); Lee Higginson
Corp.;
Kuhn, Loeb & Co.; American Securities Corp. and Wood,
Struthers & Co. (jointly). Bids—Tentatively expected to
be received on April 23.

stock

working capital.

construction

Mining & Oil Corp.
>
(letter of notification) 250,000 shares Discommon
stock (par 30 cents).) Price—$1 per share/. Proceeds—2
For mining expenses. Office—3500 Massachusetts Ave-

Underwriter

it Broad Street Investing Corp.,

A., Inc., Phoenix, Ariz.
Sept. 30 filed 85,000 shares of common stock. Price—At
par ($3.75 per share). Proceeds—For investment in subiidiary and working capital. Underwriter—Selected Securities, Inc., Phoenix, Ariz.

March

to

stockholders

share for each five shares held.

Offering—Has been deferred.

gage notes and for

Atlantic

-

stock (par $2)

common

Shop Pastries Inc., Rockport, Mass.
Sept. 17 (letter of notification) $100,000 of 6^2% deben¬
tures dated Sept. 16, 1957 and due Sept. 15, 1972 and
40,000 shares of capital stock (par $1) to be offered
in units of one $50 debenture and 20 shares of capital
stock.
Price—$90 per unit. Proceeds—To retire mort¬

common

;

new

one

common

by

Blacksmith

^

Anita Cobre

-"V

Underwriter—Hooker & Fay, San Francisco,

purposes.

Calif.

C.

subscription

and- for

pay

Price—To be supplied by amendment. Proceeds—For re¬
duction of bank loans, expansion and general corporate

develop shopping centers and build or purchase pffice
buildings. Office — 900 Woodward Bldg., Washington,
D.

for

loans

Continental

stock

Bishop Oil Co., San Francisco, Calif.

second trust notes and construction loans. Company may

.

,

—

Feb. 28 filed 500,000 shares of common
Price—To be supplied by amendment.

.

.

..

it Belgian Congo (4/16)
March 27 filed
$15,000,000 of 15-year external
loan
bonds due April 1, 1973.
Price — To be supplied by
amendment. Proceeds
For construction of buildings
and facilities. Underwriter
Dillon, Read & Co., Inc.,

bank

Dec. 9

.

,

Management Corp. (4/17) u
Feb. 10 filed 400,000 shares of common, slock (par 25
cents.) Price—$1 per share.
Proceeds-—To/reduce out¬
standing indebtedness and for working capital. Office—
Houston, Texas. Underwriter — McDonald, Holman' &
o., Inc., New York.
/
;
;
?

arid for expansion program.
Underwriter—The First Boston Corp., New York.
• American

Underwriter—None.

.

Underwriter—To be determined by competitive bidding.
Probable bidders:
Iialsey, Stuart & Co; Inc.} Morgan
Stanley & Co.; The First Boston Corp. Bids—To be re¬
ceived by company up to 11 a.m. (EST) on April 22.'

Bankers

ceeds—To repay bank loans

March

short-term

;

Fidelity Life Insurance Co.

(par $1),
125,000 shares are to be offered publicly and
133,740 shares to employees pursuant to stock purchase
options. Price—To public, $6 per share. Proceeds^-For
expansion and other corporate purposes. " Office — At¬

of sinking fund debentures
Price—To be supplied by amendment.
Pro¬

(4/15)

filed

Co. of N. Y., Inc. (4/22)
v
$50,000,000 of first and refunding mortgage
bonds, series O, due April 1, 1988. Proceeds—To retire

Feb. 28 filed 258,740 shares of common stock

14 filed $125,000,000

20

ISSUE

Consolidated Edison

of which

Ohio.

REVISED

March 3 filed

Office—240 W. 14th Street, New York, N.-.Y.

building.

Aeronca

due

bonds

Proceeds—To erect

Underwriter—None.

.

Aluminum Co. of America

Price—At par ($100 per bond).

ITEMS

$50,000,000 of first mortgage bonds,
T,. due March 1;-1988; Proceeds—For construction
program.
Underwriter—To l)c determined by competi¬
tive bidding. Probable bidders: Tfalsey, Stuart & Co. Inc.;
The First Boston Corp.; GhA'e, Forgan & Co.: Tiids—To
be received up to
10:30 a.m. (CST) - on* April 15 at72 West Adams
St., Chicago 90, 111.
^
»

due Jan. 2, 3968 to be offered only to members of Local

802.

PREVIOUS

series

Underwriter—Milton D. Blaurier &

first mortgage on plant and

111.

'March

March

com¬

ADDITIONS

SINCE

Commonwealth Edison Co.

99,125 shares of

Office—Bcdfield & Wistcr Sts.^ Philadelphia, Pa.
Co., New York, N. Y.

capital.

From debentures—to

equipment and to repay other debt; and for new con¬
struction, equipment, and other corporate purposes. The
shares of common stock are to be sold for selling stock¬
holders.

(4/7)

(letter of notification)

stock (par 25 cents). Price—-S3 per share. Proceeds
—For repayment of construction loan and for working
mon

debentures, due 1968, and 250,000 outstanding shares of
(par 10 cents). Price—To be sup¬

retire

14

.

class A common stock

plied by amendment.

Registration

Avionics Corp. of America

Inc., Miami, Fla.

>■

:

•

one

&

new

Research, Inc.

share

for

each

four

shares

held.

be

supplied by amendment.
Proceeds—For
and
general corporate purposes.
Office —
J.

Underwriter—P. W.

Brooks

&

Co..

Inc..

Volume

187

Number 5730

The

Commercial and Financial Chronicle

(1527)
New York.

nancing

Offering—Indefinitely postponed.
be arranged,

may

★ Dome & Margolin,

:S

;

.

Other fi¬

Dresser

of the El gen

(letter of notification). 4,500 shares* Of class C
capital stock (par $1 > to be offered for subscription by

Industries

Douglas Aircraft Co., Inc.- (4/10)

March 21

filed

due April

J

$60,000,000 of sinking fund debentures,
Price—To be supplied by amendment.

fierce,j,Fenner & Smith,
New

and Kuhn, Loeb &

for

of

common

March 12 filed

April 1,

Lynch,

Elgen's

common.

York. /

offer
obli¬
offer
out¬

(4/9)

Proceeds—To

bank loans and for

repay

Underwriter—To

program.

by competitive bidding.

be

determined

Probable bidders: Halsey, Stu-

&

Co. Inc.; The First Boston
Corp.; White, Weld &
Glore, Forgan & Co.; Kuhn, Loeb & Co. and
Eastman
Dillon, Union Securities & Co.,
(jointly);
Drexel & Co. and Equitable Securities
Corp. (jointly).
Bids—Tentatively expected to be received up to 11
a.m.
(EST) on April 9.;^
'
'

Co.;

-

out¬

$15,000,000 of first mortgage bonds, due

1988.

construction

Co., both of

stock

share of Dresser

one

3.4'shares

Duquesne Light Co.

Proceeds—To repay bank loans and for working capital
expansion program. / Underwriters—Merrill

the basis of

on

exchanges will be made unless the exchange
is accepted by the holders of at least
80% of the
standing Elgen common, and Dresser will not be
gated to consummate any exchanges unless the
is accepted by the holders of at least
95% of the
standing Elgen common.
Underwriter—None.

1, 1978.

and

Corp.

common

(par 500)

No

employers, officers and directors. Trice—$10 per share.
Proceeds—For .-working capital.
Office—29 New York
Ave., Westbury,- N.:Ar. '.Underwriter—None. \
"
•

art
stock

common

outstanding

Inc.

March 27

J,

Industries, Inc.

Feb. 28 filed 128,347 shares of
to be offered in exchange for

*

39

Ethodont

Feb.
At

20

par

expense

tion.

Laboratories, Berkeley, Calif.

filed 300,000 shares of common stock.
Price—
($5 per share). Proceeds—To cover operating
during the development period of the corpora¬

Underwriter—None.

)

Ex-Cell-0 Corp., Detroit, Mich.
V J
Nov. 25 filed 88,000 shares of common stock
(par $3)
to be offered in exchange for common stock
of

Bryant

Chucking

Grinder

four-tenths of

Co.

of

Springfield, Va., at rate of

Ex-Cell-O share for each full
Bryant
Offer will become effective upon
acceptance

share.

an

by

holders of not less than 209,000 shares
(95%) of all com¬
stock of Bryant

mon

NEW
7

'7

.

(Monday) 'ri>Xk
of America-.__'i_j_i____v/_Common

Milton

X).

Blauner '&

Co.)

$297,375

FoxbcirOf-'Cd.-'/--

I

/"v'/ '

*■

t

V*--'flnmmnn

-

(John.son

&

Johnson )

$300,000

V:

••

April 8 (Tuesday)

-

April. 9

4

(Morgan Sta.U.y

& Co.

Central Bank

_

_

_

and

Clark

Dodge &

Co.)

$80,000,000

& Trust Co

(Bids

/
.

;

..

/

and

(Offering

Co.)

100,000

Witter

&

Co.)

&

'

i_

&

Co.,

April 10

Inc.)

;

(Merrill
T

General
"if

•

*

i»i a

Kuhn

shares

Time

77 7;'

:; V

Inc.)

33,000

;

(Bids

and

New

Transistor

11:30

&

$125,000,000

150,000

15

EST)

New

,

.(Bids

.

10:30

"...

Co.

and

7.

be

11

invited)

$35,000,000

EDT)

a.m.

W.

May
■

Bonds

$7,500,000

Baird

12

(Bids to

to

be

&

April 16
"

•

Atlantic

City

(Eastman

Union

Co.,

Inc.)

241,211

& Co.)

Dillon.

Union
&

/*

Co

Wilted)

Bonds
$12,000,000

(Wednesday)

Co.

and

Smith.

and

i

Co.)

120,000

Smith

Barney

Bids

(Bids

Bonds

to

be

invited)

be

to

May 21

Debentures

Co.,

Inc.)

$25,000,000

C.

Common

Langley & Co.)

(Wednesday)

Sierra Pacific

11:30

a.m.

Power

Offering

to

EST)

Appalachian

$15,000,000

Co

Common
57.362

Barney & Co.)

Bankers

50,000

share*

Common

to

&

April 21
Adams

(Offering

Common

Co.,

Inc.)

$400,000

Co.)

be

Common
underwritten

51,183

by

(Monday)
Debentures

&

Co.)

shares

Four Corners Oil & Gas Co
,

(Bids

to

be

Equip. Trust Ctfs.
invited) about $8,000,000




$87,079,200

Bids

to

be

tn*tti>d'

(25 000 OOO

to

(Bids

to

be

roll

&

Co

invited)

be

Debentures

$3,000,000

Bonds
$15,000,000

Debentures

to

be

shares of

be

common

stock

(par 25

Proceeds—For exploration
Office — Portland, Ore.

named

by amendment.

Stores, Inc.

Sol Gold¬

(4/9)

&

Underwriter

—

Eastman

Dillon, Union

Co., New York.

Office—Brooklyn, N. Y. Underwriters—H. Car¬
Co., Denver, Colo.; and Alfred L. Powell Co.,
Co., Denver, Colo.

Price—
share. Proceeds—To pay off debts and for drilling
exploration costs
Underwriters—Paine, Webber,

per

and

Jackson &

Curtis, Boston, Mass.; and Campbell, McCarty
Co., Inc., Detroit, Mich.

9 Foxboro Co., Foxboro, Mass.
18
filed
120,000 shares of

March

'Tuesday)

porate purposes.

$25,000,000

stock

(par

Proceec"

Business—Manufactures industrial In¬

Underwriter

Boston.

—

Paine.

Webber,

Jackson

&

Mass

^ Franklin Custodian Funds, Inc., New York
March 28 filed (by amendment) an additional 300,000
shares of common stock, special series. Price—At mar¬
ket.

Proceeds—For

Freeman

investment.

Electric

Construction Co.,

Inc.

100.000 shares of common

Price—$3 per share. Proceeds—To
payable, etc., and for working capital

(par 10 cents)

reduce

Bonds
Invited)

(4/7-8)
common

Price—To be supplied by amendment.

Nov. 27 (letter of notification)

invited)

Florida Power Corp..
(Bids

Bruce

(4/21-25)

Curtis.

(Tuesday)

invited)

to

I

Whitmore,

★ Forest Laboratories, Inc.
March 26 filed 150,000 shares of capital stock (par 10
cents). Price—$2.50 per share. Proceeds—For sales pro¬
motion of company's products, working capital, addi¬
tional inventory and accounts receivable, for research
and development and for other general corporate our-

stock

July

470.000

by amendment.

struments.

$10 000.000

Public Service Electric & Gas Co
(Bids

stock

Proceeds —To

For working capital, construction, and other general co

Bonds

invited)

17

bf

—

March 18 filed 100,000 shares of common stock (par
$1).
Proceeds—To selling stockholder. Price—To be supplied

jjHV

'Wednesday)

Community Public Service Co
'Bids

share.

,

Bonds or Debs.

New England Power Co

Common

(faine, Webber, Jackson & Curtis, and
Campbell, McCarty & Co. Inc.) $1,200,000

Southern Pacific Co.

be

11

filed

Price—$3 per share.
and working capital.

Underwriter—To

$3
Common

Virginia Electric & Power Co
to

per

March 25 filed 400,000 shares of common stock.

Tuesday)

Oklahoma Gas & Electric
Common

250,000

26

Four Corners Oil & Gas

(Thursday)

10

June

Engineering Co., Inc
P^des.

,

$5

Fluorspar Corp. of America

Bonds

$25,000,000

underwriter)

—

Underwriter

New York.

shares

Engineering Co., Inc

(Cru tenden,

EST*

stockholders—no

June

(Cruttenden, Poaesta & Co.) $2,000,000

Adams

to

Bids

(Friday)

stockholders—to
&

Power Co

a.m.

Price

properties.

Co., Washington, D. C

Dec.

&

Holman

Weld

11

June

Piedmont Natural Gas Co., Inc
White

$22,000,000

Illinois Bell Telephone Co

shares

(Thursday)

April 18
(Offering

(par five cents).

(Tuesday)

May 29

Management Corp._
(McDonald,

First Leaseback Corp.,
Washington, D. C.
27 filed 500,000 shares of class A common

poses.

Bonds

EDT)

a.m.

Electric
(Bids

stockholders)

April 17

11

May 27

Bonds

Smith, Kline & French Laboratories
(Smith,

(Bids

100,000 shares

Mississippi Power & Light Co
(Bids

Bonds
$60,000,000

Brooklyn Union Gas Co

Kennedy (D. S.) & Co
(W.

$25,000,000

invited)

price to be
expansion and other cor¬
Underwrter—None.

Proceeds—For

Aug. 26 (letter of notification) 100,000 shares of common
stock (par $1). Price — $3 per share. Proceeds —
For
capital and surplus and for first year's deficit. Office—
3395 S. Bannock St.,
Englewood, Colo. Underwriter —
American Underwriters. Inc.,
Englewood, Colo.
,

Securities

(Tuesday)

New York Telephone Co

$15,000,000

Corp
&

—.Common
240,000 shares

Co

-

(Blytn

determined.

Food Fair

Invited) $20,000,000

May 20
Illinois Power

Barney

basis; thereafter the balance remain¬

any, will be offered to the public. Price—$5 per
share to stockholders; and to the
public at a

berg is President.
Bonds

(Bids to be invited)

rata

pro

ing, if

(Monday)

Gulf States Utilities Co

Bonds

Diamond- Gardner

$20,000,000

*

shares

(Dillon, Read & Co., Inc.)

-

May 19

Common
Co.

&

one

Drilling Co.

on a

work

Bonds

be invited)

to

(Bids to be

$5,000,000

Securities

and

Fidelity Bankers Life Insurance Corp.,
Richmond, Va.

purchase

$16,000,000

Gulf States Utilities Co

Belgian Congo
/

(Bids

$7,600,000

Preferred
&

stock

Nov.
—Bonds

Long Island Lighting Co

Common

EST) 968,549 Bhares

Atlantic City Electric Co
Eastman

shares

Preferred

invited)

May 14

Co

Securities

of

-At Federated Plans, Inc., Boston, Mass.
March 28 filed (by amendment) additional
Systematic
Investment Plans and Fully-Paid Plans. Proceeds—For

cents).

(Wednesday)

Electric

Dillon.

shares

First International Firo Insurance Co.

(Monday)

Gas Improvement
'Bids to

....

about

50

Co., Miami, Fla.

&

Equip. Trust Ctfs.
invited)

be

of

(letter of notification) 150,000 shares of common
stock (par five cents). Price—$2 per share. Proceeds—
For oil and gas drilling expenses.
Office—316 Rogers
Bldg., Mt. Vernon, 111. Underwriter—Paul A. Davis &

porate purposes.

Common

...

(Bids

units

Feb. 3

May 13 (Tuesday)
United

England Electric System
a.m.

in

Price—$500 per unit. Proceeds—For equipment and working
capital. Office—922 Jefferson St„
Lynchburg, Va. Underwriter — Whitney & Co., Inc.,
Washington, D. C.

(Friday)

Public Service of Oklahoma

shares

$50,000,000

Northern Pacific Ry

offered

stock

Bonds

(Offering to stockholders—bids 11

?

be

(par $1)
outstanding

(Tuesday)
Debentures

to

Robert

$45,000,000

CST)

;

March 7 filed 450,000 shares of common stock
to be offered for subscription
by holders of

(Offering to stockholders—to be underwritten by Smith, Barney
& Co.
and Robert W. Baird
& Co.,
Inc.) $3,000,000

(Tuesday)

a.m.

to

Bonds

Wisconsin Power & Light Co

Common

Co.)

,!

investment.

(Offering to stockholders—to be underwritten by Smith, Barney

(Monday)

a.m.

April
..

.Bonds

$30,000,000

.

Wisconsin Power & Light Co

Debentures

Commonwealth Edison Co.
.

6

May 9

&

Corp

Fuller

Underwriter—Minor, Mee &

Virginia Foods Corp.
Jan. 30 (letter of notification) 19,500 shares of
common
stock (par $5) and 390 common stock
purchase warrants

(Tuesday)

Jersey Power & Light Co>

New England Telephone & Telegraph Co.__Debens.

.

EDT)

_

Montreal (City of)

(Friday)

April 14

•rv

(Monday)

29

May

.Debentures

:_

(The First Boston Corp.)

(Bids

"

(Bids noon EST) $40,000,000

.

shares

Aluminum Co. of America

~,

Equip. Trust Ctfs.
$3,900,000

.Common
Co.

corporate purposes.

Farrar

Common

Fenner & Smith,
Co.) $60,000,000

&

other

$3,000,000

invited)

noon

(Bids

Peabody

D.

Johnston,-

Philadelphia Electric Co

Pierce,

April 11

<3;

be

April

(Eastman Dilion, Union Securities & Co.)
$30,000,000

Industro

by

Inc. ) $19,700,000

(Thursday)

April 28

-.—Debentures

Pacific Petroleums Ltd.—

•

Co.

Bonds
EST)

a.m.

to

(Bids

Corp

Jt /iKidder,

&

Puget Sound Power & Light Co

(Thursday)

Loeb &

$600

^niL,

Proceeds—For construction of plant, working
capital 6nd

Debentures

r

Lynch,

11

April 24

$168,750

Douglas Aircraft Co., Inc—
:

underwritten

Read

Pittsburgh & Lake Erie RR

Anthony Securities Corp.; Norton & Co.; Schwerin,
'J-Stone & Co.; and MacRobbins & Co.) $300,000
,,

.

due 1960-1964 to be offered in units of
of notes and 200 shares of stock.
Price—$1,000 per

warrant.

(Bids to .be invited) $15,000,000

James

/.

Common

-Debentures

Southern Counties Gas Co. of California——Bonds

Common

Directomat, Inc.
./

Bonds

$20,000,000

Power Co.

(Bids

(Harriman Ripley & Co. Inc.) $40,000,000

/

be

and Dillon,

-

Famous

-

$10,000,000 to

stockholders—to
Co.,

Sierra Pacific

shares

125,000

Seagram (Joseph E.) & Sons, Inc
.••.•."V-';

to

Lemon

(Bids

Penn Dairies, Inc.___
(Stroud

be invited)

...Common

Dean

Bonds

Lykes, Bros. Steamship Co., Inc
:

Common
&

Heller (Walter E.) & Co
Co.

J.

$50,000,000

$15,000,000

Food Fair Stores, Inc.__
k
Dillon, Union Securities
&

to

Bonds

..//lEastmaij;

Eberstadt

EST)

a.m.

-3 (Morgan Stanley & Co.) 400,000 shares

Common

11..a.m. EST)

11

Potomac Electric Power Co.__.

V Duquesne Light Co

••

(Bids

(Boettcher & Co.; Peters, Writer & Christensen
Corp.; Bos worth.
Sullivan-& ,Co.,tand, Garrett-Bromiield &
Co.), $1,050,000

-

$25,000,000

Atlantic City Electric Co
)

.Debentures

______

Co.)

April 23 (Wednesday)

■//'\

(Wednesday) ~7 7

American Can Co.__ ^
.-

ture notes

Bonds

&

Co., Albuquerque, N. M.

7/

.,v

(Tuesday)

Australia

a

Citizens & SoUr Natl. Bank of
Savannah, Gaii-Com.
Offering-to ^BtoCkholders—^no underwriting) $3,00(M)00 *

•*.

r

(Bids

outstanding. Underwriter—None.

Expanded Shale Products, Inc., Denver, Colo.
Jan. 29 filed 60,000 shares of common stock
(par $1) and
$180,000 of 6% callable unsubordinated unsecured deben¬

Consolidated Edison Co. of N. Y. Inc.

,

Common

22

of

(Morgan Stanley

»

fPaine; Webber. Jackson .& Curtiss) 120,000 filiates

-.

.

r

April
Commonwealth

7

-

National Manganese Co

v

CALENDAR

*•.*/•• April 7

-

X? Avionics:Corp:
i*

ISSUE

accounts

Continued

on

page

40

.

The Commercial and Financial Chronicle
40

from pcige 39-

<

general corporate purposes. Office —
Underwriter—Harris Securities Corp., New

New York.
York City

,

54.300 shares of capital
.stock (par SI). Price—At market. Proceeds—To trade
in commodity futures or commodities.
UnderwriterFutures Distributors, New York,

N. Y.
New York'

& Film Corp.,

1957 filed 426.988 shares of common A
par) and 1,537*500 shares of common B stock
Jan. 14,

stock (no
(par SI).

United States.
competitive bidding.
Co., Inc., and The First Bos¬
ton
Corp.
(jointly); Kuhn, • Loeb • & Co.: Lehman
Brothers, and Glore, Forgan & Co. (jointly). Bids—Had
been scheduled to be received up to 3:45 p.m. (EDT) on
JMav 13 at Room 654. 101 Indiana Ave., N. W., Washing¬
ton 25, D. C., but bidding, has been postponed.
Proceeds—To the Attorney General of the
Underwriter—To be determined by

Probable bidders: Blyth &

General Credit,

Aug. 17, 1956 filed $2,000,000 of 6% subordinated sinkIng fund debentures, due Sept. 1, 1971, with detachable
warrants to purchase
160.000 shares of participatloj

preference stock, to be offered in units of $500 of deben¬
tures and 40 warrants. Price—$500 per unit. Proceed*—

working capital. Underwriter—Nont
be made through selected dealer*
Application is still pending with SEC.

For expansion and

Offering to

oamed.

Devices, Inc., Princeton, N. J.

General

(4/15)

stock (par SI) to be offered for subscription by
stockholders at the rate of approximately 18.5 shares

mon

for each 100 shares held: unsubscribed shares

working capital.

Distributors

Electronics

General

Feb.

(letter of notification)

10

to public.

Proceeds—For expansion, equip¬
Underwriter—None.

Price—$3.50 per share.
ment and

Inc.

2,090 shares of common

stockholders until May,
1958, then to the public. Price—$42 per share. Proceeds
—For loans payable to bank, inventory and working
capital. Office—735 Main Street, Wheeling, W. Va. Un¬

clock (par $25) to be offered to

20

To

General

Glassheat

Corp.
(letter of notification) 150,000 shares of class A
common stock (par 10 cents).
Price—S2 per share. Pro¬
ceeds—For general corporate purposes.
Office—1 E.
S5th Street, New York 16, N. Y.
Underwriter—James
Anthony Securities Corp.. 37 Wall St., New York 5, N. Y.
Offering—Expected in three or four Weeks.

Feb. 12

Gly Inc.
March 4 (letter of notification) 300,000 shares of com¬
mon stock (par 30 cents).
Price—$1 per share. Proceeds
—For acquisition, development
and operation of oil
end gas properties,
Office—Bacon Bklg., 5th & Pine
fits., Abilene, Texas. Underwriter — Earth Thomas &
Co., Inc., New York.
Divide

Oil

notes and for drilling and working capital. Office—207
fJewliouse Bldg
Salt Lake City, Utah. Underwriter—

Birkenmayer & Co., Denver, Colo
Guardian Insurance Corp., Baltimore, Md.
Aug. 16 filed 300,000 shares of common stock, of which
200,000 shares are to be publicly offered and the remain¬
ing 100,000 shares reserved for issuance upon exercise
of warrants which

are

to be sold at 25 cents per

warrant

organizers, incorporators, management, and/or direc¬
Price—$10 per share. Proceeds—For working cap¬

tors.

ital

and

general
•

corporate
' '

•

Hawaiian

;,

purposes.

../

'

'•

Underwriter

—

V

Airlines,

Ltd., Honolulu, Hawaii
$1,250,000 of 6f/c convertible subordinated
debentures due April 1, 1973, of which $1,000,000 prin¬

Feb.

18 filed.

debentures for each

35

14, 1958 at the rate

shares held

(with

an

of $100

of

over-sub¬

scription

privilege); $100,000 of debentures are of¬
employees; and $150,000 to others. Subscription
• expire
On
April 4. Price — At principal
©mount. Proceeds—To be used to buy new
airplanes, to
repay certain short-term bank loans, and for other cor¬

fered to

Tights

will

porate purposes.
tive March 21.

shares

000

Industro Transistor

28

Feb.

Underwriter—None.

Statement

-jc Hedgefan Petroleum, Inc.
March 14 (letter of notification) 150,000 shares of com¬
stock (par $1). Price—$1.25 per share. Proceeds—
For development of oil and gas
properties. Office—214
Phil-Dor Bldg., 6617 Snider
Plaza, Dallas, Tex. Under¬
writer—None.
Heller (Walter E.) & Co. (4/9)
March 19 filed 125,000 shares of common stock
(par $1).
Price—To be supplied by amendment. Proceeds — For

working capital and to reduce bank borrowings. Under¬
writers— F. Eberstadt &
Co., New York, and Dean Witter
Jk Co., Chicago, 111.
Hofmann Industries, Inc.,
Sinking Spring,
Dec. 20 filed 227,500 shares of common stock

Pa.
(par 25

cents) to be offered in exchange for outstanding common
aha res of Van Dorn Iron Works Co Underwriter—None
Home Owners Life Insurance Co.

Underwriter

development department.

/

—

(par

Underwriter—To be determined by competitive
bidding; Probable -bidders:- Ha lsey5 Stuart & Co. - Inc.;
Kuhn, Loeb & Co.;; Equitable Securities Corp. :,and
Shields & Go.- (jointly);Co/, Inc.; Merrill
Lynch, Pierce, Fenner & Smith; East mail Dillon,. Union
Securities & Co;, While, Weld & Co. and Kidder, Pea¬
body & Co. (jointly); The First Boston Corp. Bids —
Tentatively expected to be received up to 11:30 a.m.
(EST) on April 16.
Motel Co. of Roanoke,

stock to be

Inc., Roanoke, Va.
(letter of notification) 60,060 shares of common
(par 40 cents). Price—$5 per share. Proceeds—

Nov. 18

15-yeav

stock
For

purchase of land, construction and working capital.

Underwriter—Southeastern Securities Corp., New York.
•

Motel

common stock and
shares of 7% cumulative convertible preferred,
to be sold publicly at a unit price of $101, representing
one share of preferred and two shares of common. Pro¬
ceeds—To be invested in the stock of Motels Americano,
an
Italian -organization, Office—Silver Springs, Mary¬

(D. S.) & Co. (4/16)
100,000 shares of common

stock (par
Price—To be supplied by amendment. Proceeds—
capital and capital expenditures. Business
—Manufactures radar antenna. Office—Cohasset, Mass.
Underwriter
W. C. Langley & Co., Boston and New

land. Underwriter—None. Statement withdrawn Mar. 26.
•

Multnomah Canadian Fund, Ltd.,

Vancouver, B. C.
1,000,000 shares of class A common stock
Price—At market. Proceeds—For investment.
Business—Investment company, with Spencer R. Collins

Jan

York.

it Larson Laboratories, Inc.

of

March 24

March

(letter of notification) 100,000 shares of com¬
stock. Price—At par ($1 per share). Proceeds—For

1320 Irwin

President.

as

26.

Statement

effective

,

Municipal Investment Trust Fund, Inc.

(N. Y.)

New York.

filed

250,000 shares of common stock (par 25
Price—To be supplied by amendment. Proceeds
—For development of property in Florida. Underwriter
—Frank M. Cryan Co., Inc., New York.
29

Ore.,

Eugene,

May 9 filed 5,000 units of undivided interests in Munic¬
ipal Investment Trust Fund, Series A. Price—At market.
Proceeds—For investment.
Sponsor—Ira Haupt & Co.,

,

Realty Corp., New York

Lefcourt

filed

31

(par $1).

—

—

Italy

20,000 shares of class A

10,000

filed

equipment and sales expansion. Office
Drive, Erie, Pa. Underwriter—None.

of

Corp.

Jan. 14 filed

$1).

Jan.

of common

($1 par value). Proceeds — For
Office —1710 lloge Bldg., Seattle 4,
par

poses.

For working

mon

March 10

ments, to pay off bank loans, and other corporate pur¬

Engineering Corp.
(tetter of notification)

18

on

March

$250,000 of
con¬
sinking fund debentures, clue Jan. 1,
1973, being offered for subscription by preferred stock¬
holders
of
company
and preference stockholders of
Pacific Associates, Inc. at rate of $3 of debentures for
each $10 par value of preference or preferred stock held.
Price—At par (in denominations of $1,000 and $500),
plus accrued interest from Jan. 1, 1958. Proceeds—To
repay certain debt and for working capital. Office—2995
Middlefield Road, Palo Alto, Calif. Underwriter—None.
March

received

Mississippi Power & Light Co; (4/16)
5 filed $15,000,000 of first mortgage -bonds due
1988.
Proceeds—Fori properly additions and improve¬

S. D. Fuller &

-cvements; for retirement of present preferred shares;
working capital, etc. Underwriter—None.
12

been

16, Mass., have been indefi¬
;
J.
:

expenses.
Wash. Underwriter—None.

»nd for

Kaar

Price—At

mining

|2 per share for each 10 shares of Stock. Proceeds—For
instruction of a shopping center and other capital im-

vertible

have

to

were

Stuart

stock.

10

(par 20 cents) to be offered in units of a $1,000
iebenture and 10 shares of stock, or a $100 debenture
ind one share of stock. Price—Par for debenture, plus

Feb.

441

Dec. 30 (letter of notification) 200,000 shares

itock

•

& Co. and White,

Kidder, Peabody

Mineral Basin Mining Corp.

"

(4/14-18)

Inc., Washington; D. C.

Janaf,

bidders:

St., Boston
nitely postponed.

Ally 30 filed $10,000,000 of 5V2-8% sinking fund deben¬
tures
due Aug. 1, 1972 and 100,000 shares of common

cents).

• National Investors Corp., New York
March 28 filed (by amendment) an additional 600,000
shares of capital stock (par $1). Price—At market. Pro¬

it Legettes, Inc.
of notification) 250,000 shares of capital

ceeds—For

March 19 (letter

Price—At par ($1 per share).

stock.

land

capital.

and

building; equipment;

Proceeds—To pur¬
and for working
Un¬

mon

Insurance Securities Corp., Portland, Me.
March 28 filed 1,000,000 shares of capital stock (par $1).
Price—$5 per share. Proceeds—To acquire stock control
of "young, aggressive and expanding life and other in¬
surance
companies and related companies and then to
operate such companies as subsidiaries." Underwriter—
First Maine Corp., Portland, Me.

Engineering, Inc., Inglewood, Calif.
f
March 24 filed $200,000 of 6% convertible subordinated
debentures, due April 1, 1973, and 100,000 shares of cap¬
ital stock (par $1) to be offered in units consisting of
$500 of debentures and 250 shares of stock. Price—$750
per unit. Proceeds—To finance increased inventories and
the cost of engineering new products, to acquire new
machinery and equipment, and for working capital.
Underwriter—Dempsey-Tegeler & Co., St. Louis, Mo.
Lorain Telephone Co., Lorain,

Ohio

the

62.52 shares held

rate

of

one

new

share

for

eaclm

1958; rights to expire on
May I, 1958. Price—$28 per share, Proceeds—For addi¬
tions and improvements.
Office — 203 West 9th St.,
Lorain, Ohio.

as

of Feb. 25,

Underwriter—None.

the

company

stockholders.

and

Price

100,000

—

To

be

shares for three selling
supplied by amendment.

Proceeds—To company, to help finance
vessels making up its present fleet of 54

Orleans, La.

replacement of
ships. Office—
Underwriter—Morgan Stanley & Co.,

New York.

Maine Fidelit&Life

/

•-

v

Nebraska Consolidated Mills Co.
Fob. 6
stock

(letter of notification) 25,000 shares of common

to

offered

be

to

stockholders

at the

rate

of

one

16 shares held.

Rights will expire
March 15, 1958. Price—At par ($10 per share). Proceeds
—For working capital.
Office — 1521 North 16th St.,
new

share

for each

_

Omaha

10, Neb.

Underwriter—None.

:

'

New

j-

.

England Electric System

(4/15)

March 14 filed 968,549 shares of common stock
to

be

offered

the

of

rate

of April

for

subscription by

one

new

share

for

common

each

15, 1958; rights to expire

12

(par $1)

stockholders
shares

held

April 30, 1958.
Unsubscribed shares to be offered to employees under
as

a

1958

on

employee share purchase plan. Proceeds — For
and general corporate purposes.
Under¬

construction

writer—To be determined by
able bidders:

competitive bidding. Prob¬

Carl M. Loeb, Rhoades & Co., Ladenburg,

Thalmann &

.

ic Lykes Bros. Steamship Co., Inc.
(4/23)
March 28 filed 400,000 shares of common stock (par $10),
of which 300,000 shares are to be sold for the account
of

;

.

Pipeline Co. of America
Nov. 19 filed $40,000,000 of first mortgage pipeline bonds
due 1977.
Price—To be supplied by amendment. Pro¬
ceeds— To reduce bank loans.
Underwriters — Dillon,
Read & Co. Inc. and Halsey, Stuart & Co. Inc., both
of New York. Offering—Temporarily postponed.

at

(letter of notification) 1,785 shares of common
being offered for subscription by commb©/

stock (no par)

at

Price—$1.50 per share. Proceeds—
Underwriter—Johnson & Johnson,

Gas

Natural

Linair

itockholders

(par $1).

Pittsburgh, Pa.

it Life

13

stock

For mining expenses.

derwriter—None.

Dec.

investment.

+ National Manganese Co., Newcastle, Pa. (4/7)
March 21 (letter of notification) 200,000 shares of com¬

Office—104 South Tenth St., Boise, Idaho.

Insurance Co.

March 26 filed 50,600 shares of capital stock (par $4) to
be offered for subscription by stockholders at the rate
of one new share for each share held (with an oversub¬

Co., and Wertheim & Co. (jointly); Merrill
Lynch, Pierce, Fenner & Smith. Kidder, Peabody & Co.
Inc., and White, Weld & Co. (jointly); Blyth & Co. Inc.,
Lehman Brothers, and Bear, Stearns & Co.
(jointly).
Bids—To be received up to 11 a.m. (EST) on April 15 at
441 Stuart St., Boston 16, Mass.
New

England Telephone & Telegraph Co. (4/14)
filed $45,000,000 of 35-year debentures, due
April 1, 1993. Proceeds—To redeem $35,000,000 of 4%%
debentures due 1986 and to repay advances from Amer¬
ican Telephone j& Telegraph Co. Underwriter — To be
determined by competitive bidding.
Probable bidders:
March

20

scription privilege).

Halsey. Stuart & Co. Inc.: Morgan Stanley & Co.: The
First Boston Corp. Bids—To be received up to 11:30 a.m.
(EST) on April 14 at Room 2315, 195 Broadway, New

ment.

York, N. Y.

land,
New

Price—To be supplied by amend¬
working capital.
Office—Port¬
Me. ' Underwriter — P. W. Brooks & Co., Inc.,
Proceeds—For

York.

^ Mercantile Acceptance Corp.
March 19

offered to the public at $5 per share and 116,366 share*




at

cents). Price—To be related to the market price. Pro¬
ceeds—For working capital and to enlarge research and

New

common

;

Co.

&

Bids—Which

effec¬

mon

Nov. 1 filed 50,000 shares of class A

/

(N. Y.)

shares of common stock

150,000

filed

Corp.,

Electric

Co., (jointly); Halsey, Stuart & Co. Inc.; First
Boston Corp.; Merrill Lynch, Pierce, Fenncr & Smith,
and Eastman Dillon Union Securities & Co. (jointly).

Underwriter—D'Amico

Proceeds—For investment.

market.

San-

Corp.,

like amount of 5%To series B bonds due 1987.

Probable
Weld

filed

27

March

cipal amount is being offered for subscription by stock¬
holders of record March

a

machinery

Foundation Fund, Inc., Boston, Mass.
(by amendment) an additional 4,000,of capital stock (par 10 cents).
Price — At

ir Income

Securities

Underwriter—To be determined by competitive bidding.

Office—1551-A Eglinton Ave.

working capital.

West, Toronto 10, Ont., Canada.
fe Co., Inc., Buffalo, N
Y

chase

Corp.

Oct. If (letter of notification) 300,000 shares of common
•lock (par 10 cents). Price—$1 per share.
Proceeds—
To pay balance on oil and gas properties, and unsecured

None.-

for

Kennedy

Time

Corp., New York (4/10)
March 21 filed 33,000 shares common stock (par $10).
Price—To
be supplied by amendment.
Proceeds—To
celling stockholder. Underwriter — Kidder, Peabody &
Co., Inc., New York.

Great

loan, to purchase equipment and

repay

*nd

Guardian

—

first mortgage bonds, series
Proceeds—-Together with other funds, to

1988.

redeem

stock.

derwriter—None.

•

Thursday, April 3, 1958

,

filed $20,000,000 of

11

C, due

Ltd.

(letter of notification) 300,000 shares of com¬
Price—At par ($1 per share). Proceeds—

Nov.
mon

-

40,000 shares of com¬

(letter of notification)

March 31

to

.

,*

Merrimack-Essex

Feb.

Co., New York.

Washington, 0. C.

Inc.,

Mines,

Horlac

Futures, Inc.
;
:
March 28 (letter of notification)

Underwriter

Francisco, Calif.

share at the rate of two new shares for each
five shares held. Proceeds—For working capital. Office
'—Fort Lauderdale, Fla. Underwriter—None.
it $6 per

Bnd

General Aniline

Calif.

stock to be offered to stockholders

class B common

of

Continued

•

.

(1528)

New Jersey Bell

Telephone Co.

Feb. 28 filed $30,000,000 of 35-year debentures due

of California

(letter of notification) $18,000 of 512-year
capital debentures. Price—At par. Proceeds—For work¬
ing capital. Office—333 Montgomery St., San Francisco^

April
like"amount of 4%%
April 28. i Underwriter
—To .be determined by competitive biddings Probable
bidders: Halsey, Stuart & Co., Inc.; White, Weld & Co,
V 1993.

Proceeds—To redeem

debentures due 1993

on

a

of about

Volume 187

Number 5730

.

.

The Commercial and Financial Chronicle

.

and Shields & Co. (jointly) ; Morgan Stanley & Co.; The
First Boston Corpl Bids—Were to have been received
up
to 11 a.m. (EST) on March 25, at Room 2315, 195 Broad¬

New York, N. Y.

way,

Offering—Postponed indefinitely.-

★ New Jersey Power & Light Co. (5/-6)
31 filed $7,500,000 of first mortgage bonds due

March
1983.

Proceeds—To repay bank loans and for
struction.
Underwriter—To be determined

new

con¬

by competi¬

tive

bidding. Probable bidders: Halsey, £>tuart & Co.
Inc.; Kuhn, Loeb & Co.; Lehman Brothers, and Salomon
Bros. & Hutzler (jointly); Eastman,
Dillon, Union Secu¬
rities & Co., and White Weld & Co.
(jointly); The First
Boston Corp.; Merrill
Lynch, Pierce, Fenner & Smith;
Equitable Securities Corp. Bids—Expected to be received
up to 11 a.m., (EDT) on May 6—at the offices of General
Public Utilities Corp., 67 Broad St., New
York, N. Y.

Nichols, Inc., Exeter, N. H.
Nov. 14 filed 25,000 shares of common stock (no par).
Price—$27 per share. Proceeds—To repay short term
bank loans and for working capital. Business — Sells

hatching eggs and day-old chicks. Underwriter—None.;
George E. Coleman, Jr., is President.
Nortex Associates Inc., Dallas, Texas
Feb. 17 filed $2,000,000 of participating interests in 1958
^

oil

and

exploration program. Interests are to be
public sale in $10,000 units. Proceeds—For
exploration and development of gas and oil properties.
Underwriter—None.
-V, ''%"■
V"
gas

offered for

★

NorthwestBancorporation

March 6 filed
ferred

by
at

stock

common

the rate

shares

106,430 shares of 4.50%

convertible pre¬

(par $100) being offered for subscription
stockholders of record on March 27, 1958,

of

one

preferred share for each 16

held; rights to expire

(flat).

Proceeds

vested

in

on

April 14.

common

Price—At par

Approximately $7,000,000 to be in¬
major affiliates and the balance for
working capital and other corporate purposes. Under¬
—

three

writers—The First Boston

Corp. and Blyth & Co., Inc.,

both of New York.

Nuclear Science & Engineering Corp.
Sept. 20 filed 100,000 shares of common stock (par 25
cents). Price—To be supplied by amendment. Proceeds
—To prepay indebtedness to
Norden-Ketay Corp., to
purchase additional equipment and for working capital.
Underwriter—Hayden, Stone & Co., New York. Offer¬
ing—Temporarily postponed because of market condi¬
tions.

March

6

filed

104,575

(par $50)

—-To

repay bank loans, construction of a new drilling
barge, and for other general corporate purposes. Office—
New Orleans, La. Underwriters—Morgan
Stanley & Co.,

New York and Reinholdt &

Gardner, St. Louis, Mo.

Oil & Mineral

Operations, Inc.
(letter of notification) 100,000 shares of

Nov. 4

common

stock

(par $1). Price—$2.50 per share. Proceeds—For
development of oil and mineral properties. Office—208
Wright Bldg., Tulsa, Okla. Underwriter—Universal Se¬
curities Co., 201 Enterprise Bldg., Tulsa
3, Okla.
O. T. C.

Enterprises Inc.
(letter of notification) 23,200
mon class B stock
(par $1). Price—$5
ceeds—For completion of plant
plans;
March

6

and

operating

St., Baltimore
Sparks, Md.
★

18,

shares
per

March 12

Pro¬

construc¬

Office—2502 N.
Underwriter—Burnett

Calvert
&

Co.,

states

and

—

for

where

$75 per unit.
Proceeds
development of district

the

For repayment of bank deans and for
general corporate
purposes. Underwriter—Eastman
ties & Co., New York.
'

Dillon, Union Securi¬

★ Palestine Economic Corp.,'New York
March 31 filed $2,000,000 of 5%
notes, due Oct. 1, 3963
to be offered in two types:
(a) interest-bearing notes
with interest payable at the rate of 5% and at an offer¬
ing price of 100% of principal amount; and (b) capital-

appreciation notes, at a discount from maturity value so
to yield 5% compounded
semi-annually. Proceeds—

as

For making investments and loans in
companies or en¬
terprises that the corporation is already financially in¬
terested in, or for other corporate
purposes.

—None.

Underwriter

■

Pecos Valley Land Co.,
Carlsbad, N. Mex.
March 13 filed 2,000,000 shares of common stock

(par

10 cents), of which 300,000 shares are to be offered for
sale by the company and 1,700,000 shares
by the present
holders thereof.
Price—$1 per share. Proceeds—From
sale of the 300,000 shares, to be used to
pay 6% mortgage
notes and interest and to pay back tax
claims, and inter¬
est due on the note to Mr. Harroun.
Underwriter—Wiles

& Co., Dallas, Texas.

★ Penn Dairies Inc.
25

non-voting

(4/9)

*

:

(letter of notification) 50,000 shares class A
common

stock

(par $5).

Price—$3.37Vz

per

Proceeds—To selling stockholders. Office—572 N.

Queen St., Lancaster, Pa.
Inc., Philadelphia, Pa.

Underwriter

—

★ Peoples Natural Gas Co. of South

Stroud & Co.,

working
in

March
to

be

at

26

the

filed 51,183 shares of

offered

(with

rate

for

of

subscription by

one

share

new

(4/18)

common

for

stock

common

each

(par $1)

stockholders

10

shares

construction

Weld

Co., New York.

&

program.

Underwriter

—

White,

common

stockholders at the rate of

share

debenture

one

held; unsubscribed shares
holders

and

to

others.

to

be

offered

Price—$8 per

working capital.
Office—27
St., Binghamton, N. Y. Underwriter—None.

Chenango

bonds, for construction, and
Office—Florence, N. C. Under¬
writer—Scott, Horner & Co., Lynchburg, Va.




working capital.

residents^ the United States "only in the

State of North

purpose.

$2.50 per share. Proceeds —For con¬
Office — Saskatoon, Saskatchewan,
Canada. Underwriter—Allied Securities
Ltd., Saskatoon,
—

Canada.

Pharmaceutical

N. Y.
100,000 shares of 6% preferred stock (par
$10) and 100,000 shares of common stock (par $1) to be
offered in units, of one share of each class of stock.
Price—$11 per unit. Proceeds—To build or lease plant,
for new equipment and for working capital and other
corporate purposes. Underwriter—Girard Securities, Inc.,
Buffalo, N. Y. Statement withdrawn March 26.
Public Savings Life Insurance Co.
filed 113,000 shares of common

Nov. 29

stock (par 50
Price—To be supplied by amendment. Proceeds
—To Public Savings Insurance Co., the selling stock-:
holder.
Office—Charleston, S. C.
Underwriter—None.
Statement withdrawn March 21.

cents).

Puget Sound Power & Light Co. (4/28)
21 filed $30,000,000 of first mortgage bonds due
Proceeds—To redeem $20,000,000 of 6%%

March

May 1, 1988.

first mortgage bonds due 1987 and to retire bank loans.

Underwriter—To be determined by competitive bidding.

Halsey, Stuart & Co. Inc. and Lehman
(jointly); Stone & Webster Securities Corp.,

The First Boston Corp. and

Smith, Barney & Co. (joint¬
Bids—To be received at 90 Broad St., New York,
Y., up to noon (EDT) on April 28.

ly).

Zelienople, Pa.
(letter of notification) 20,000 shares of com¬
mon stock! (no" par) to be offered pro-rata to stockhold¬
ers, then to the public. Price—$7.50 per share. Proceeds
—To pay notes payable and bank loans and for working
capital. Underwriter—None.
4

Richfield Oil

Corp.
$50,000,000 of 4%% convertible subordi¬
nated debentures, due April 15,. 1983, being offered for
subscription by common stockholders of record Mar. 25,
1958 at the rate of $100 principal amount of debentures
for each eight shares held; rights to expire on April 14.
Price—100% of principal amount (flat). Proceeds—For
capital expenditures and other corporate purposes. Un¬
derwriters—Merrill Lynch, Pierce, Fenner & Smith and
Blyth & Co., Inc:, both of New York.
6

March 27 filed

21

cumulative
of

(letter of notification) 14,250 shares of 7%
preferred stock (par $10) and 10,000 shares
stock

(par $1). Price—For preferred stock,
$10.25 per share; for common stock, $8 per share. Pro¬
ceeds—For working capital. Office—200 Sayre St., Rockford, 111. Underwriter — The Milwaukee Co., Milwau¬
kee, Wis.
common

Rocky Mountain Quarter Racing Association
(letter of notification) 300,000 shares of common
Price—At par ($1 per share). Proceeds—To re¬
pay outstnding indebtedness.
Office — Littleton, Colo.
Oct. 31
stock.

Co., Windover Road, Memphis.

Tenn.

★ Ruppert

(Jacob)

March 28

(letter of notification) 10,975 shares of com¬
stock (par $5) to be offered in \mits of 10 shares

employees pursuant to
plan. Price—$85 per unit.
porate purposes.

employee stock purchase
Proceeds—For general cor¬
Underwriter—None.
f
an

i:

•

(by amendment)

additional 1,000,008

an

shares of beneficial interest (par $1) in the Trust.
market.
Proceeds—For investment.

Price

At

Sierra Pacific Power Co.

(4/16)

1

i

.

March 25 filed
to be offered

57,362 shares of common stock (par $7.50)
for subscription by common stockholders of

record April 14, 1958 on the basis of one new share for
each 12 shares held
(with an oversubscription privi¬

lege); rights to expire
plied

by amendment.

for

and

construction

on April 30.
Price—To be sup¬
Proceeds—To repay bank loans

program.

Underwriter

—

Kidder,

Peabody & Co., New York.
March
1988.

25

filed

Co., Reno, Nev. (4/23)
$3,000,000 of first mortgage bonds due

Proceeds—To repay bank loans and for construc¬

tion program.

Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Kidder, Peabody & Co,; Stone & Webster Securi¬
ties Corp, and Dean Witter & Co. (jointly).
Bids—To
be received up to 11 a.m. (EST) on April 23 at 49 Fed¬
eral St., Boston, Mass.
1
Oct.

10 filed 155,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—To two

selling sjtoeftiTolders. Underwriter—Merrill Lynch, Pierce,
Fenner
&
Smith, New York. Offering — Indefinitely
postponed.
★ Sinclair Oil Corp., New York
March 28 filed $12,000,000 of participations in the Em¬
ployees Savings Plan, together with 150,000 shares of
common stock (par $5) which may be
acquired, pursuant
thereto.

★ Smith, Kline & French Labortories (4/16)
March 27. filed 50,000 shares of common stock (par
cents). Price—To be supplied by amendment. Proceeds
—To selling stockholder.
Office—Philadelphia, Pa. Un¬
derwriter—Smith, Barney & Co., New York.
Southern Counties Gas

Co.

of

California

(4/23)'
bonds, series
Proceeds—To repay short-term indebted¬
ness to Pacific Lighting Corp. and for construction pro¬
gram.
Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Blyth & Co., Inc.; White, Weld & Co.; Merrill Lynch,
Pierce, Fenner & Smith. Bids—Expected to be received
up to 8:30 a.m. (PST) on April 23.
March 26 filed $15,000,000 first mortgage

C, due 1983.

Southern
Dec.

Electric Steel Co.

23

(letter of notification) $300,000 of 6% second
mortgage serial bonds (with common stock purchase
warrants). Price—At par (in denominations of '$1,000

Proceeds—For payment of demand notes pay¬
Office—2301 Huntsville Road,
Birmingham, Ala. Underwriter—None.

each).

able and working capital.

Sovereign Resources,

filed

★ Rockcote Paint Co.
March

Under¬

%v..v

-★ Shareholders' Trust of Boston /

Resolite Corp.,

★

Office—Salt Lake City, Utah.
•

Simplicity Pattern Co. Inc.
Corp., Buffalo,

Jan. 29 filed

Brothers

writer—None.

Sierra Pacific Power

Prairie Fibreboard Ltd.
Feb. 28 filed 210,000 shares of common stock
(par $1.50)
to be offered for sale to residents of Canada in
the Prov¬
inces of Manitoba, Saskatchewan and Alberta
and to

Premier

filed

Sentinel Security Life Insurance Co.
Nov. 27 filed 5,000 shares of common stock (par $10).
Price—To be supplied by amendment. • Proceeds—For

to

share.

★ Power Fuels Corp. of America
March 24 (letter of
notification) 120,000 shares of com¬
mon stock
(par $1). Price—$2.50 per share. Proceeds—
For equipment, inventories and
working capital. Office
—4201 Jackson St., Denver
16, Colo. Underwriter—None.

Price

18

.

share for

new

Proceeds—For

to

mortgage

.■

★ Policy Advancing Corp.
March 25 (letter of
notification) 30,250 shares of com-^
mon stock
(par $5) to be offered for subscription by

March

com¬

.

Underwriter—Steven Randall & Co., Inc., New York.

March

class B

(Joseph E.) & Sons, Inc. (4/9)
$40,000,000 of 25-year debentures due
1983. Price — To be supplied by amendment.
Proceeds—For working capital, and the balance for other;
corporate purposes, including to a large extent the com¬
pletion of the new office building. Underwriter—Harri-,
man
Ripley & Co., Inc., New York.
;
%

—

N.

or

Underwriter—None.

April 1,

—

★

for each White class A

held.

Seagram

.

March

7

Pleasant Valley Oil & Mining
Corp*
Sept. 30 (letter of notification) 2,000,000 shares of com¬
mon stock.
Price—At par (five cents per
share). Pro¬
ceeds
For geological
studies, reserve for contingent.
liability, for machinery and equipment and other re¬
serves.
Office
616 Judge Bldg., Salt Lake
City, Utah

★

share

mon

a

finance

each

stock

common

held

14-day standby). Price — To be supplied by
amendment. Proceeds—Together with funds from
pri¬
vate sale of $3,500,000 5V2% first
mortgage bonds due
Feb. 1, 1983, to be used to
repay bank loans and to

notes

other corporate purposes.

Schering Corp., Bloomfield, N. J.
Sept. 19 filed 278,983 shares of 5% cumulative con¬
vertible preferred stock (par $30) and 418,475 shares ot
common
stock (par $1) to be issued in exchange for
stock of White Laboratories, Inc. (which is to be merged
with Schering Corp, effective Sept. 19, 1957) on the
basis of one share of preferred stock and IV2 shares of

the

currently licensed to do
Tenn.
Underwriter—None.

,• Piedmont Natural Gas Co., Inc.

mon

repay

5%

For

offices

Office—Jackson,
Smith, Jr., is President and Board Chairman.

Underwriter—R. B. Ford

Carolina

Inc., Ardn^ire, Okla.
98,613 shares of common stock (par $10)*
Price—$14.25 per share. Proceeds—For,working capital,
acquisition, development, and exploration of oil and gas
properties. Underwrriter—None.
'
March 24 filed

is

company

business.
R. B.

March 31 filed $375,000 of 20-year 7% debentures due
1978 and 45,000 shares of common stock (par
$1) to be
offered in units of $25 of debentures and three shares
of stock. Price—$37.75 per unit. Proceeds — To
and

—

Probable bidders:

Ltd., Calgary, Canada (4/10)
filed $30,000,000 of 15-year
sinking fund de¬

bentures due 1973 (with common stock purchase war¬
rants). Price—To be supplied by amendment. Proceeds—

share.

Price

capital

com¬

land;

expenses.

Md.'

of

share.

Pacific Petroleums

March

shares.

41

Samedan Associates,

common stock
(par $1),
consisting of 62,000 shares of class A-voting stock and
248,000 shares of class B-non-voting stock to be offered
in units
consisting of one class A and four class B

struction

Drilling & Exploration Co.

shares of cumulative preferred
being offered for subscription by com¬
mon stockholders of record March
25, 1958, at the rate
of one preferred share for each 14 common shares
held;
rights to expire April 9. Price—$50 per share. Proceeds
stock

tion

★ Peoples Protective Life Insurance, Co.
March 27 filed 310,000 shares of

Dakota.

Ocean

,

(1529)

Inc.

Nov. 19 (letter of notification) 1,500 shares of 7% cumu¬
lative preferred stock. Price—At par ($100 per share).
Proceeds—For construction, payment of promissory note,
and working capital.
Office—3309 Winthrop St., Fort

Worth, Tex. Underwriter—Reilly, Hoffman & Sweeney,
Inc., New York, N. Y. Offering—Delayed.
★ Springfield Fire & Marine Insurance Co.
March 28 filed 1,000,000 shares of common stock (par $2)
to be offered in exchange for capital stock of Monarch
Life Insurance Co. at rate of IV4 shares of Springfield
for

each

Boston

Monarch

share.

Dealer-Managers—The

First

Corp. and Kidder Peabody & Co., both of New

York.

1

*

★ Standard Oil Co.

,

(Ohio)

28 filed $3,000,000 of interests in the company's
Employees Investment Plan, together with 40,000 shares
of common stock and 10,000 shares of 3%% cumulative

March

preferred stock, series A (par $100), which may be
quired pursuant to the plan.

ac¬

★ Stephenson Chemical Co., Inc.
March 26 (letter of notification) 500 shares of class A
voting common stock and 5,000 shares of class B non¬
voting common stock (class B stock to be offered in
than five shares, with purchasers of
having privilege to buy, on class A
Price—At par ($10 per share). Proceeds—For

units

of not

each

ten

share).
real

less

shares

estate;

installation

of

machinery and

Continued

equipment;
on

page

42

42

Continued

from

page

United States Sulphur Corp.

41

i Strategic Minerals Corp. of America, Dallas, Tex.
bonds
bonds,
95% of principal amount; and for stock $3 per share.
Proceeds — To erect and operate one or more chemical
processing plants using the Bruce-Williams Process to
beneficiate manganese ores. Underwriter — Southwest
Shares, Inc., Austin, Texas.
March 31 filed $2,000,000 of first lien mortgage 6%
and 975,000 shares of common stock.
Price—For

None.

filed 375,000 shares of common

17

per

Underwriter-

Office—Salt Lake City, Utah.
Co., Inc., of New York.

purposes.

Amos Treat &

Symington-Gould Corp.,

N. Y.

Depew,

263,973
warrants to be issued in exchange- for the stock of the
Wayne Pump Co. under merger agreement which pro¬
vides for conversion of each share of capital stock of
Wayne Pump into (1) 2Va shares of common stock of the
surviving corporation to be known as Symington Wayne
Corp., and (2) an option to purchase an additional share
at prices commencing at $10 per share. Underwriter—
Feb. 28 filed 593,939 shares of common stock and

-A;

Tax Exempt Bond Fund,

Inc., Washington, D. C.

June 20 filed 40,000 shares of common

stock. Price—$25
per share. Proceeds — For investment.
UnderwriterEquitable Securities Corp., Nashville, Tenn. OfferingHeld up pending passing of necessary legislation by

Congress.
if Technology Instrument Corp., Acton, Mass.
27 filed 260,000 common shares (par $2.50)
of
which 204,775 shares are for account of three selling
stockholders and 55,225 shares are for account of com¬
pany. Price — $10 per share. Proceeds — For working
capital and general corporate purposes. Business — De¬
velops and manufactures precision potentiometers and
other precision electronic components and measuring in¬
March

struments.

Underwriter—S. D. Fuller &

Co., New York.

if Tele-Broadcasters, Inc.
March 31 (letter of notification) 40,000 shares of com¬
mon stock
(par five cents). Price — $3.25 per share.
Proceeds—To complete the construction of Station KALI.
Office—41 East 42nd St., New York, N. Y. Underwriter
—Sinclair Securities
4

Corp., New York, N. Y.

bank loans and for construction.

repay

Underwriters—

& Webster Securities Corp., White, Weld & Co.
Halsey, Stuart & Co., Inc., all of New York. Offering
—Temporarily postponed.
Stone

and

if Tennessee Gas Transmission Co.
March 28 filed $2,000,000 of contributions by participat¬
ing employees under the company's thrift plan.

-A-Timeplan Finance Corp.
March 25 (letter of notification) 27,272 shares of 70-cent
cumulative

of

common

of

one

preferred stock (par $5) and 27,272 shares
stock (par 10 cents) to be offered in units

share to each class of stock.

Price—$11 per unit.
working capital. Office — 111 E. Main
St., Morristown, Tenn. Underwriter—Valley Securities
Corp., Morristown, Tenn.
Proceeds

For

—

^-Tohomson Symon Co., Inc.
(letter of notification) $120,000 of 6%% con¬
vertible subordinated debentures due April 1, 1973. Price
—At par. Proceeds—For working capital. Office—1330
Beech St., Terre Haute, Ind.
Underwriter—None.
March 20

v

Trans-America

Uranium

Mining Corp.

acquisition, exploratory work, working capital, reserves,
and other corporate purposes. Underwriter—None.
Al¬
fred E. Owens of Waterloo, la., is President.

,

Valley Farms, Inc., Denver, Colo.
each of class A, class B and
class C preferred stock (par $25), and 32,000 shares of
common stock
(no par) to be offered in units of one
share each of class A, B and C preferred and one share
of common. Price—$100 per unit.
Proceeds—To repay
loan on real estate and for farm operating capital. Un¬
derwriter—Entro Corp.,

Colo.,

812 Equitable Bldg., Denver 2,
best-efforts basis.,
: -■■■;,
-•/■;>"/ '/// ,//.:

on a

Washington National Development Corp.
(letter of notification) 50,000 shares of commor
(par $1) of which 34,280 shares are to be offered
publicly at $1.20 per share and 15,720 shares are to bf>
offered to certain individuals under options. Proceeds—)
For general corporate purposes. .Office — 3612 QuesadiOct. 2

stock

Underwriter—Wagner A
v- ' '••.$ //:

St, N. W., Washington, D. C.
Co., New York City.
: '////
West Coast Airlines,
Feb.

filed

12

Inc., Seattle, Wash.

:

subordinated^debentures/
tc

$600,000 of 6%

due 1970, and 150,000 shares of common stock (par $1)
be offered for subscription by common stockholders

ol

record March 1, 1958, in units of $100 principal amount
of debentures and 25 common shares, at rate of one unit
for

each

31

common

new

shares

held

the

on

record

date

Proceeds—To finance the acquis!-;

Fairchild F-27 "Friendship" aircraft on

writer—None.

':,v "

"/■/'' ;"/J■ /"'

Western Copperada Mining Corp. (Canada)
V
Aug. 30 (letter of notification) 300,000 shares of commoi
stock. Price—At par ($1 per share). Proceeds—For de¬
velopment and exploratory work, drilling costs and sur¬
vey, and for working capttal.
Office — 1205 Phillipi
Square, Montreal, Canada. Underwriter—Jean R. Vedito
Co., Inc., New York.

if Whitehall Fund, Inc., New York
28 filed (by amendment) an additional 400,000
shares of capital stocfc (par $1). Price—$12.14 per share.

March

investment.

Proceeds—For

"

-

Machine Co.
March 3 (letter of notification) 25,500 shares of com¬
mon
stock (par $5) to be offered for subscription by
common
new

stockholders of record March 17 on basis of one

share for each 10 shares held. Price—$7.15 per share.

general corporate

39th St., New York, N. Y.
Offering—Temporarily deferred.
W.

Worth

Office—214
Underwriter — None.
purposes.

Fund, Inc., New York
400,000 shares of common stock.
share.
Proceeds—For investment.

Price—
Under¬
writer—Cherokee Securities Corp., 118 N. W. Broad St..
Southern Pines, S. C.
■
;
per

standing shares of capital stock and holders of bearer
held

so

per

or

share.

represented

additional share for each share
by, bearer

Proceeds—For

shares.

general

including exploration and drilling
expenditures. Underwriter—None.

Price—50c

corporate
expenses

purposes,

and capital

Trans-Eastern Petroleum Inc.
Feb.

27

stock

(letter of notification) 7,500 shares of common
(par $1) to be offered pro-rata to stockholders on

the basis of

one

—$4 per share.
Office—203

N.

new

share for

10

shares owned.

Price

Proceeds—For drilling for oil and gas.
Main Street, Coudersport, Pa.
Under¬

writer—None.

Manufacturing Co.
(letter of notification) 15,000 shares, of common
stock, (par $5). Price — $4.50 per share. Proceeds — For
5

working capital and payment of current liabilities. Ad¬
dress—Wrightsboro section, 3 miles north of Wilmington,
N. C. Underwriter
Selected Investments, Wilmington,
—

^

N. C.

ic Union Carbide Corp., New York
March 28 filed $30,000,000 of Interests or Participations
in the company's Savings Plan for
Employees, together
with 50,000 shares of no par capital stock which may
be acquired pursuant thereto.

★ United Artists Associated Inc., New York
March 31

filed

$15,000,000 of 6%

subordinated

fund debentures, due 1963 to be offered in

sinking
exchange for

capital stock and warrants and debentures of Associated
Artists Productions Corp.
if United Oil & Gas Co., Inc.
March 25 (letter of notification) 60,000 shares of common
stock (par $1). Price—$5 per share. Proceeds—For de¬

velopment of oil and gas properties.

Ave., N. E., Albuquerque, N. M.




issue and sell in
of common stock.;

competitive bidding.;
White Weld & Co.; Kidder, Peabody

Underwriter—To be determined by
bidders:

Probable

Smith; Carl M.;
& Co. (jointly).;

if Central Bank & Trust Co., Denver, Colo. .(4/9)
!
it was announced that the Bank plans to offer

March 31

additional shares of common stock
l-for-4.714 basis. Price—$15 per shared
Underwriters-^Boettcher & Co.; Peters, Writer & Chris-

stockholders: 70,000.

/(par $10)
tensen

a

on

Bosworth,/Sullivan

Inc.;

Bromfield & Co.; all ol Denver,

and 'Garrett-',

& Co.;
Colo.

Hudson Gas & Electric Corp.

Central
Jan. 22 it

was

z

./*../v

sell.*.

reported ^company plans to issue and

$18,000,000 of first mortgage bonds (previous bond fi¬
nancing-done privately). Underwriter—If sold at com¬
petitive bidding, probable bidders may includes Halsey,'
Stuart & Cor Inc.; Eastman Dillon, Union Securities &
Co.; The... First Boston Corp.; White, Weld & Co. and
Stone & Webster Securities Corp.' (jointly)'; Kidder, Pea-

Bids—Tentatively scheduled to.be received
May., V * />/;//;/<//// ; //■ ///'. />/./

body &.Co.

about the^middle of

-i//• k-- ;/
y
were to vote on increasing the
stock
(par . $100) from 250,000
shares (io 50Q;0Q0, shares;; - linderwriter—Easl^ah Dillon;
Union Securities & Co., New York.
■_/-y.->'-

;/*; Central Illinois Light Co.
March

27: stockholders

authorized

preferred

;

.

Chicago District Pipeline Co.
i2i :1957, .it; was announced company plans to sell
about $5,000,000 of first mortgage bonds sometime after
the turn .of the year. Proceeds—To repay advances made
Nov.

by Peoples Gas Light :& Coke Go., the parent. Under-writers^r-Probably Dillon, Read & Co.* Inc. and Halsey,1
Stuart & Co.

Inc.y.y.

v.

t...

/

-...

V..

.■

:

/

"""

-•/'/:

:•//■•/'•

(4/8)

Savannah, Ga.

/

Bank of

Citizens & Southern National

March 11 it was announced stockholders

of record April

8, 1958 are to toe given .the right to subscribe for 100,000
additional, shares of capital stock at the rate of one
new

share-for each

10

Proceeds—To

share.

derwriter—None..

.

•'

r

„

held. Price — $30 per
capital and surplus. Un¬

shares

increase

Z/Z..: /•

•

/

;/• ;"Zk

-

Columbus & Southern Ohio Electric Co,

t!

■

reported company plans to issue and sell
about 250,000 additional shares of common stock. Under-,
it

Dec. 9

writers

was

Dillou^ Read & Co. Inc. and The Ohio Co.

—

(jointly).. Permanent financing not expected until Jat6
or

possibly early in 1959.

.

Service Co. (6/17;
reported that this company plans

Community Public
March

it

10

was

to

Of sinking fund debentures due
To be determined by competitive-

issue and sell $3,000,000
1978.

Underwriter

—

bidding.-^Probable bidders: Halsey, Stuart & Co. Inc.;,
Kidder, Peabody & Co., Inc. and White, Weld & Co'/
Bids-r-Tentatively expected to be received on.

(jointly),

Registration—Expected May 15.

Feb.

25

it was

Natural

announced

Gas Co.
company

*

plans to issue and

sell

$45,000,OOsO of sinking fund debentures. Underwrit-,
ers—To .be determined by competitive bidding. - Prob¬
able bidders: Halsey, Stuart & Co.; White, Weld & Co.
and Paine, Webber, Jackson & Curtis (jointly).; Morgan
Stanley & Co. and First Boston Corp. (jointly)./ Offer-;
ttig—Expected - ih second quarter of 1958. zt'-r'
/
Consumers Power Co.

Office—515 Central

Underwriter—None.

Dan E.

Appalachian Electric Power. Co. (5/27)
1957, it was reported this company, a subsidiary
Gas & Electric Co., plans to issue and seL
$25,000,000 of first mortgage bonds. Proceeds—To repay
bank loans and for construction program.
Underwrite:
—To be determined by competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.; The First Bostoi
Corp.; Kuhn, Loeb & Co. and Eastman Dillon, Unior
Securities & Co. (jointly); Harriman Ripley & Co. Inr
Bids—Tentatively expected to be received up to 11 a.m.

Feb.

(EST)

stockholders,

Dec. 2,

of American

May 27.

on

Associates
Jan. 23 it
some

Trask

Dec.

Power Co.

Electric

450,000 additional shares

about

,

March 28 filed 6,000,000 shares of common stock (par 10
cents) to be offered for subscription by holders of out¬
one

Proceeds—For

$500,000 of common stock.

Consolidated

if Trans-Cuba Oil Co., Havana, Cuba

shares, in the ratio of

1958

June 17.

filed

21

$12.50

Laboratories, Inc.
was reported
that company plans to issue,

March 10 it was reported company may

in 1958

•.

Willcox & Gibbs Sewing

Proceeds—For

it

working capital and other corporate purposes. Business
—Electronics.' 'Office—391 Ludlow St., Stamford, Conn.

delivery during 1958, and related costs. Under¬

order for

S.

20

and sell about

Co.; Merrill Lynch, Pierce, Fenner &
Loeb, Rhoades & Co., and Bear Stearns

Feb. 26 filed 32,000 shares

Feb.

Nov. 6 filed 3,000,000 shares of common stock (par on#
mill). Price—25 cents per share. Proceeds—For land;

March

Bids—
(EDT) on May 21.

&

April 30 filed 1,250,000 shares of common stock (par 1«
cents). Price—To be supplied by amendment (expected
to be $1 per share). Proceeds—For exploration purpose*;
Underwriter—To be named by amendment. Graham Al ¬
bert Griswold of Portland, Ore., is President.

tion of six

Feb. 26 filed $30,000,000 of debentures due May 1, 1978.
Price—To be supplied
by amendment.
Proceeds—To

.;

Portland, Ore.

Uranium Corp. of America,

Price—$125 per unit.

Tennessee Gas Transmission Co.

if C. G.

California

stock (par $1).

share. Proceeds—To purchase equipment
and supplies and for working capital and other corporate
Price—$4

Thursday, April 3, 1958

.

.

Expected to be received up to 11 a.m.

United States Telemail Service, Inc.
Feb.

.

(jointly); White, Weld & Co.

First Boston Corp.

|

(par on«
cent). Price—$1 per share. Proceeds—For plant rental
etc.; to retire corporate notes; for core drilling; foi
working capital; and for other exploration and develop¬
ment work.
Office — Houston, Texas.
Underwriter —
1,500,000 shares of common stock

Oct. 8 filed

and for working capital. Office—Rear 118 North Main
St., College Park, Ga. Underwriter—None.

None.

Chronicle

The Commercial and Financial

(1530)

reported company plans to issue and sel)

was

additional debentures

Underwriters

—

(amount not yet determined)

Salomon Bros.

Brothers, both of New York.
July 1.
Boston
Jan. 27

it

& Hutzler

and

Lehmar

Offering—Expected befor#

issue and sell in
the Summer of this year some additional first mortgage
bonds and preferred stock (about $25,000,000). Proceeds
—To repay bank loans and for construction program.
reported

company

may

Underwriter—For bonds to be determined

by company,

with prospective bidders including

Halsey, Stuart & Co.
Inc.; The First Boston Corp.; White, Weld & Co.; Leh¬
man Brothers and Harriman Ripley & Co. Inc. (jointly).
For preferred stock, The First Boston Corp., New York.
Brooklyn Union Gas Co.

(5/21)

Nov. 25, 1957, it was announced that company expects to

issue

and

sell

of first mortgage bonds due
bank loans and for con¬
struction program. Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, v Stuarl
& Co. Inc.; Lehman Brothers; Blyth & Co., Inc., and
F. S. Moseley & Co. (jointly); Merrill Lynch, Pierce,
Fenner & Smith; Harriman Ripley & Co. Inc. and The
1983.

$22,000,000

Proceeds—To-

announced that $100,-.

that

of

$60,000,000

senior

securities may be involved.
to be determined by com-;

Underwriter—For any bonds,

petitive--bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Morgan Stanley & Co.: White, Weld & Co. and
Shields & Co. (jointly); The First Boston Corp. and*
Harriman Ripley & CO. Inc. (jointly).
An offering of1
$35,156,700 of 4%% convertible debentures, offered to

underwritten in October, 1957, by Mor¬

was

Stanley & Co.

Delaware
Jan. 22 it

.

Power & Light Co.

was

reported company plans to issue and

sell

$10,000,000 of first mortgage bonds due 1988. Proceeds.
—To repay bank loans and for construction program.:
Underwriter—To be determined by competitive bidding.

Inc.; White, Weld:
& Co. (jointly); Eastman Dillon, Union
Securities & Co.; The First Boston Corp. and Blyth &
Co., Inc.
(jointly); Merrill Lynch. Pierce, Fenner &
Smith-and Kidder, Peabody & Co. (jointly V:
OfferingExpected in June.
:
/'
;'-.f
Probable bidders: Halsey, Stuart & Co.

Edison Co.
was

Karn, President,

600,000 has been budgeted for expansion and improve-:
ment of service facilities during 1958.
Indications are

gan

Investment Co.

21

•«.

..

repay

& Co. and Shields

Dixon Chemical
March

10 it

was

Industries,

Inc.

reported company plans to do some fi¬

nancing,; the type of securities to be announced later.
Proceeds-^-For expansion. Underwriter—Harrknan Rip¬
ley & Co. Inc., New York
Florida
Jan.

29 it .was

•

'

*

.

(7/1)
reported corporation plans to issue and

Power

Corp.

$25,000,000 of first mortgage bonds due 1988. Under¬
writer—To be determined by competitive bidding. Prob¬

sell

& Co. Inc.; Kidder, Peabody'
Lynch, Pierce, Fenner & Smith (joint-1
ly); Lehman Brothers and Blyth 8c Co., Inc. (jointly);
Eastman Dillon, Union Securities & Co., and Harriman
able bidders: Halsey, Stuart
& Co. and Merrill

Volume

187

Number 5730

.

.

The Commercial and Financial
Chronicle

.

(1531)

Ripley-& Co. Inc.,,(jointly); The First Boston
Corp. :Bids
—Expected" to be received on
July 1.
sJ-V!
★ Gas Service Co»
!"•
March. 24 it was
reported that

son

Corp.^Equitable Securities Corp,; Eastman
Dillon,
Union Securities & Co-, and Merrill
Lynch, Pierce, Fenner
&

?/"

company plans^tb^ issue
mortgage bonds later this year. -Proceeds—
$9,500,000 short-term notes and loans.
Underwriter—'To be determined by competitive

For repayment of

•

bidding.
Halseyy. Stuart & Co." Inc.; Merrill
Lyneh^ Pierce, Fenner & Smith,, and. White, Weld & Co.
(jointly)^ Blyth & Co., Inc.;- The First. Boston Corp.;
Lehman. Brothers
:'
Probable

??>'.7

.;*•'•

.

.V;

'

7.

and White, Weld & Cb. (jointly); Equitable Securities
Corp. and Blair & Co., Inc. (jointly).
Bids—Tentatively
scheduled to be received on June 11 at 441 Stuart
St,

and

21

it

was

.

also

Boston

stock

to

its

March 7 it

reported

common

Underwriters—Blyth

.

Son.

that company may offer
of its. common
stockholders on a l-foi>15> basis.

& Co.; Inc. and J. J. B. Hilliard &

Jan.

States

251

Utilities

Co.'"'(5/13)

was-reported company plans to issue and
sell $20,000,000; of first
mortgagej bonds.
Underwriter
-rTo be determined by competitive
bidding. Probable
bidders; Halsey, Stuart & Co. Inc.; Merrill Lynch,
Pierce,
Fenner & Smith and White, Weld & Co.
(jointly); Salo¬
mon Bros. «Sc>Hlitzler and
Eastman Dillon, Union Securi¬
ties & Co* .(jointly); Lehman
Brothers; Stone & Web¬
ster Securities/Corp.;
Kiilin, Loeb & Co. Bids
Ex-;•
pected tc*' be received on May 19.
;

;
.

States

Utilities

Co.

(5/19)

was reported
company plans to issue and sell»
240,000 shares of common stock. Underwriter
To be
determined; by competitive
bidding. Probable bidders:
—-

was

refunding mortgage bonds, together with 1,200^000
common stock, par
$100 (the latter to American,
Telephone & Telegraph Co.)., Proceeds—To retire short.term bank borrowings. Underwriter—To be
determinal
by competitive bidding. Probable bidders: Halsey, Stuart
& Co.
Inc.; Morgan Stanley & Co. Bids—Expected on
May 20.
;
/ ?
New York Telephone Co.
March 14 it
of

Calif.

announced

19

it

was

announced

additional

shareholders

of

shares
record

of

that

the

capital

March

17

bank

stock
on

is

the

bidding. Probable bidders:
Inc.; Morgan Stanley & Co.
it

3

was

basis

of

preferred stock
'

Weld & Co. (jointly) ;
financing.; There is no;
presently outstanding. '.Vv /•
stock

Hawaiian Telephone Co.

v

Co.; The First Boston Corp.

March

determined

on

was reported
company plans to offer 500,000
additional shares of common- stock to
stockholders. Proceetls — About
$5,000,000, to be used for additions and

improvements

to

property. - Underwriter—None.
ing—Expected in June.? ;
ir Illinois Belt Telephone Co. (5/^9).
'
March

,

Offer¬

• •

•

27

it y-as; announced company plans to- offer to
f
its stockholders of record
May 29, 1958 the right to sub-;
scribe
for-870,792 additional shares of capital /stock at;

the rate of one new share for each
six shares held; rights'
te> expire on June 30."
Minority stockholders own; 5,933
shares. : Price—At par

Stuart & Co.

($100

additions arid improvements.

share) .? Proceeds^For
Underwriter—None.

per

Illinois. Power Co.

(5/20)
reported company plans to issue $25,000,000 of first;
mortgage bonds. Proceeds—For construction

Jan. 29 it

was

program..

Underwriter—To'be determined by competi¬
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Dillon, Union Securities & Co.; White, Weld &
Co. and Merrill
Lynch, Pierce, Fenner & Smith (jointly);
The First Boston
Corp.; Harriman Ripley & Co. Inc.
Bids^—Top.be,received on May 20.
7? v.?
tive

Eastman

..

Indiana Gas & Water
Co., Inc. '7?
March 25 it was announced that the
v

"7

plans to

and sell

$3,000,000 of first mortgage bonds. May
be placed; privately. Proceeds—To
repay bank loans and
for

new

construction.-

7

-

;f

•

Feb. 3

(5/6)

Co., Inc., Savard
(jointly); Leh¬
Brothers, White, Weld & Co., Eastman Dillon, Union
Securities & Co.?and Blyth &, Co., Inc.
(jointly). Bids—
Expected to be received on May 6. Registration—Planned
for around April 11.

Argentina.

Inc.

•

27 .it

was

Brothers, New

Offering—Ex¬

York.

Pacific Gas &

expects

to

offer

a

★ Kansas Gas & Electric' Co.
"
March 31, G. W.
Evans, Chairman, announced that com¬
pany plans to sell some bonds
originally scheduled for

©lid-year," but which-

Expected

stock

debenture issue prior to July
1, 1958. Proceeds—Among
other things, to repay $11,000,000 of bank loans. Under¬

??;7:.;7?? ~7l7?Av

late

1958

or

early

sale

1959.

may

now

be

writer—The

until

Proceeds—About $8,000,000 for,

construction program.' Underwriter—To

$y

deferred
be

determined

competitive

bidding.
Probable
bidders:' Halsey,
Stuart & Co. Inc.;
Kidder, Peabody & Co., and Merrill
Lynch, .-Pierce, Fenner
Smith
(jointly)'; Lehman
Brothers; Eastman Dillon, Union Securities & Co. and
Stone & Webster Securities
Corp. (jointly); Glore, Forgan & Co., and Goldman Sachs & Co.
(jointly).
1

Kansas

Feb.
-sell-

14

it

Power

&

Light Co.

was

77-;;-7''777

announced company plans tb issue
$10,000,000 of first mortgage bonds due 1088.

ceeds—For

">
and
Pro¬

construction

program.
Underwriter—To be
by competitive bidding. Probable bidders;
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Glore,
Forgarr & Co.; Harriman Ripley & Co.
Inc.; White, Weld
4c Co.; Blyth & Co., Inc.; Equitable, Securities
Corp. Reg¬
istration—Expected before Spring.
-<
br;

determined

...

{

Kentucky Utilities

Jan. 21 it

...

Co.

was

reported company plans to issue and «ell
$10,000,000 of first mortgage bonds. Proceeds—To. repay
pank loans and for new construction. Under\vriter-+-To
be determined

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; Lee
Higgin-




First

Boston

sometime

Corp., New York.

before

June

20

the

Offering—

offering

loans

March

about

to

20

it

$50,000,000 to $60,000,000 long-term

secu¬

Proceeds—Will probably be used to
> for
new
construction.

repay

bank

Underwriters—Glore,

Forgan & Co. and Harriman Ripley & Co. Inc., both of
New York. ?.
•
A" Naxon Telesign Corp.
March

19 it

undetermined

issue

and

was

Redpath, Washington,
pected late in April.
New

March
of

England Power Co.
3

New

it

was

announced

England

$1-0,000,000

1988.

amount

of

first

a

common

first to
Underwriter—
year,

was

reported

amount

of

company

bonds

and

plans sale :of an
preferred stock in

;

ding.
Probable bidders—The First Boston Corp.. and
Halsey,Stuart & Co. Inc. (jointly); Blyth & Co., Inc.; (2)
For preferred stock: Blyth &
Co., Inc.
Jan. 8 it

Telephone & Telegraph Co.

reported company plans $300,600,000 capi¬
outlay program. Proceeds—For construction program
19&8 and 1959 ($137,000,000 in 1958). Underwriter—

tal

in

was

subsidiary
proposes
to file

it was announced company plans to sell later
$6,000,000 of additional securities. Underwriter
—For any bonds, to be determined by competitive bid¬

Pennsylvania Power Co.
a

mortgage

bonds,

Underwriter—To be determined by

competitive

bidding. Probable bidders; Halsey, Stuart
& Co. Inc;; The First Boston Corp.;
Kuhn, Loeb & Co.,
Eastman Dillon, Union Securities & Co. and Salomon
Bros.

plans

this

To be determined by competitive bidding. Probable bid¬
ders— Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.

company,

System,

it

of

Offering—Ex¬

C.

(6/11)
this

Electric'

principal

series H, due

D.

middle

latter part of this year or early 1959. Underwriter
—(1) For bonds to be determined by competitive bid¬

—

&

announced

the

the

Pacific
-

announced

by this corporation that it
plans to issue and sell 120,000 shares common stock (par
$1). Price — $5 per share. Underwriter
Auchincloss,
Parker

about

if Pacific Gas & Electric Co.

1.

National Distillers & Chemical
Corp.
March 3 it was reported company is expected
rities.

Electric Co.

company

present stockholders and then to public.
Blyth & Co., Inc., New York.

.

and sell

[

Offering—Expected in May.

March

company

very

future to register with the SEC an issue of
3,000,000
shares of capital stock. Price—$12.50 per share. Proceeds
t—For investment. Underwriter—Lehman

Underwriters—Kuhn, Loeb & Co.

reported

Underwriter—To be deteiv

near

Mountain Fuel Supply Co.

March

year.

April 2 it

bonds secured by

pected this Summer.

;

(6/17)
reported company plans to issue and sell

was

if One William Street Fund, Inc.
'
was reported this Fund expected in the

plans to issue and

Brothers, both of New York.

it

t!
March 26 it was reported that the
company plans early \
registration of 100,000 shares of common stock.. Busi¬
ness—Operates department stores.
Underwriter—R. S.
Dickson & Co., Charlotte, N. C.

first preferred ship mortgage on the liners S. S. Brazil

and Lehman

Union

1 Olen Co.

«

S.

Eastman Dillon,

and

by competitive bidding. Probable bidders: (1) For.
bonds—Halsey„ Stuart & Co. Inc.; Equitable Securities
Corp.; The First Boston Corp.; Kuhn,. Loeb & Co., MerriU
Lynch, Pierce, Fenner & Smith and White* Weld. &
Co. (jointly); Harriman
Ripley & Co. Inc. and Eastman
Dillon, Union Securities & Co.. (jointly). Bids—Tenta¬
tively expected to be received on June 17.

man

S.

Halsey,

mined

»& Hart, and Salomon Brothers & Hutzler

a

Halsey,

Oklahoma Gas & Electric Co.

$15j000,00() of bonds this

reported ait offering of $35,000,000 of
debentures is planned in- the United States. Underwriter
—To be determined by
competitive bidding. Probable
bidders: Shields & Co.? Halsey, Stuart &

and

;;:'7;

company

issue

Equitable Securities Corp.
Securities & Co. (jointly).

was

$24,000,000 of government, insured

bidders:

Corp. tmd Blyth 8t
Co., Inc. (jointly); Merrill Lynch, Pierce, Fenner' &
Smith, Kidder, Peabody & Co. and White, Weld & Co.
(jointly); Lehman Brothers and Riter & Co. (jointly);

Lynch, Pierce,. Fenper & Smith and Kidder,
Peabody & Co., Inc., (jointly); and Blair & Co., Inc.

sell

Probable

Inc.; Salomon Bros. & Hutzler.

mined by competitive bidding. Probable bidders;
Stuart & Cor Inc.; The First Bostort

Merrill

company

under¬

Northern States Power Co. (Minn.)
13 it was reported that the
company may be con¬
sidering-the issue and sale this Summer of about $25,000,000 of first mortgage bonds; Underwriter—To- be deter¬

was reported the
company plans to issue and
undetermined amount of first mortgage bonds in
the latter part of this
year or in early 1959. Underwriter
—To be determined by
competitive bidding. Probable
bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co., Inc.;

Moore-McCormack Lines,
March 24 it was announced

is

Jan.

an

(City of)

financing
'

equipment trust certificates.

March 24 it

it

8c Hutzler
(jointly); Lehman Brothers; Merrill
Lynch, Pierce, Fenner & Smith; Kidder Peabody & Co.

.

Northern Pacific Ry. (4/15)
are expected to
be received by this company on
April 15 for the purchase from it of about $7,600,000

underwritten
by Ira Haupt;&? Co. Price—$10. Proceeds
investment?; Technological Advisors—Include Dr.
Theodore von Karman, Chairman of the
advisory group

* Montreal

j

,

Bids

stocl$, of which $7,500,000 will be

March 27

time

at

.

—For

sell

conditions

taken.

development of NATO.
ic Montana-Dakota Utilities Co.

March 17 it.

;

12 it

was announced
company plans to spend an
estimated $76,500,000 for construction in the years 19581959., Of this about $55,000,000 will be raised from sale
of additional
securities, the nature of which will be

for aeronautical research and

r

and; sell

Northern Indiana Public Service Co.

held; rights will expire
Price—$20 per share. Proceeds—

firm basis

on a

issue

may

Inc.; Morgan Stanley

&

one

,

common

company

writer—To be determined by competitive
bidding.. Prob¬
able bidders: Halsey, Stuart & Co.

,

ikhderwrote-last

reported

$50,000,000 of mortgage- bonds, probably this fall. Undier-

April 30.
Mertilt Lynch, Pierce, Fenner &
To increase capital and
Smith and Lehman'
surplus.
Brothers; (jointly);. Stone & Webster
Securities Corp. :
# Midwestern Gas Transmission Co.
Bids—Tentatively expected to be received on May 19 ■ .'* March 24 it was
announced
that
this
subsidiary of
Hackensack Water Co.
Tennessee Gas Transmission Co. has
applied to the Fed¬
March 12* George H.
eral Power Commission
Buck, President,, said that com¬
for; permission to issue first
pany plans to sell some $7,000,000 in new securities
mortgage bonds, unsecured notes and common stock.
by
the end? of this
year in the form of first mortgage, bonds
Proceeds—To build pipe line system to cost about
$111,and preferred stock. Recent bond
000,000. 1
Underwriters — Stone & Webster Securities
financing was;'made
privately. In event of competitive bidding for bonds or
Corp. and White Weld & Co., both of New York.
debentures,; bidders may include:- Halsey> Stuart & Co.
Missiles-Rockets-Jets & Automation Fund, Inc.
Inc.;; The First Boston Corp. and White, Weld "& Co.
Oh Jan. 7 this new fund
registered under the Invest¬
(jointly);; Stoiie dr Webster Securities Corp.; Blyth &
ment Company Act of 1940. Plans to issue
$15,000,000
Co., Irib;; Drexel & Co. and Dean Witter & Co.
(jointly).
common

The^i^st BosionvCdrpi;and White,

by competi¬
Stuart & Co.

Halsey,

Niagara Mohawk Power Co.
March

share for each three shares

new

at 2 p.m. on

also announced company seeks
approval

an

tive

offering
$10) to

(par

was

issue of $70,000,000 additional
refunding mortgage
bonds, subject to favorable market conditions.. Proceeds
—To refund a like amount of series J 4J/2% bonds
sold
last year. Underwriter—To be determined

Mercantile National Bank of Miami Beach
March

•

of

this newly organized invest¬
plans to offer to bona fide .residents of
California 10,000 shares of
capital stock (par $1). Price
—$10 per share/less an underwriting discount of
8'/2%.
Proceeds—For investment;, *

50.000

'

Jan. 29 it.

it

?

shares of

April 7.

on

\

New York Telephone Co.
(5/20)
March 14 company sought
approval of the New York
Public Service Commission to issue and sell
$60,QQ(L0Q0

ment company

—

\iGulf

Registration—Expected

i Master Fund, Inc., Fairfield,

Corp., New York.,"

•

Co., Inc.; The First Boston Corp., and W. C.
Langley

Jan. 27

$7,50Q,(HM)
financing will be required for construe-.

The First Boston

Underwriters—Blyth

& Co.

it

.

announced that approximately

this year or in early
1959, depending upon prevailing
market conditions.. Underwriter—For
any common stock:

.

&

Registration—Expected early in. May.

tion expenditures for the balance of this
year. The man¬
agement intends to negotiate a new line of credit witb
a
group of banks and expects to sell
equity securities later

*■■•? Grace Line Inc.'
•
Long Island Lighting Co. (5/14)
Mareh 2(Mt was announced
by Lewis A. Lapham, Presi- ; ? Feb. 26 it was announced
company plans to sell $20,dent, that the eompany: plans to issue
approximately / 000,000 of first mortgage bonds due 1988. Proceeds—To
$21,000,000 of government insured bonds secured
retire bank, loans and for new
by a
first preferred ship
construction. Underwriter
mortgage on the new "Santa Rosa"
—To be determined
by competitive bidding. Probable
and "Santa " Paula."
/Underwriters ?— ' Merrill Lynch,
bidders: Halsey, Stuart &/Co.
Inc.; The First Boston
Pierce, Fenner and Smith; Paine, Webber, Jackson & •- Corp.: and,
Blyth &Coy Inc7(jointly); W7C.
Langley
Curtis; Smithy Barney Co.; White, Weld &
& Co.; Smith;
Co.; and F.;
Barney & Co. Bids—Expected to be re¬
Eberstadt & Co.? all of New York.
'7'ceived on /May 14.:
Registration—Expected on April 7.
Great Atlantic & Pacific Tea Co.V
% Long Island .Lighting C£7??>J..7y7: J7
Feb. la it was reported a
secondary offering of common
Feb. 26 it was also announced
that company plans to
voting stock is expected in near future. Underwriters—
offer to its stockholders
early in May about 690,0Q0 addi¬
May include: BJytn & Co., Inc.; Carl M.
tional shares Of common stock
Loeb, Rhoades
at the rate of one new
8c Co.; Hemphill,
Noyes & Col; Smith, Barney & Co.;
share for each 10 shares held?
Proceeds—Ta repay bank
and Merrill
Lynch, Pierce,;Fenner & Smith. :
loans and
•for; new construction.
-Gulf

was

from additional

7

..

16, Mass.

★ New York State Electric and Gas Co.
1

v~

approximately 165,000 additional shares

.>

.

(jointly); Kidder;? Peabody & Co.

Kentucky Utilities Co.

Jan.

bidders:

.

Smith

White,
Weld & Co.
(jointly);-Kuhn, Loeb & Co. Offering—Ex¬
pected in September or October*
i
)

first

some

43

March

in

7

1958

ding.
der

Probable bidders: Halsey, Stuart & Co. Inc.;-Kid¬
Peabody & Co., White, Weld & Co., Equitable Secu¬

rities

thers;

Corp., and Shields & Co. (jointly); Lehman Bro¬
Merrill Lynch, Pierce, Fenner and Smith, and
& Co. (jointly).

Dean Witter

Continued

on

page

44

44

The Commercial and Financial Chronicle

(1532)

Continued

from

43

page

March 20 it

was

reported that the company plans to issue

$20,000,000 of bonds. Underwriter—To be deter¬
competitive bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; Kidder Peabody & Co., Inc.; The First
Boston Corp. and White, Weld & Co. (jointly); Morgan
Stanley & Co.; Eastman Dillon, Union Securities & Co.,
and Salomon Bros. & Hutzler (jointly). .
,

mined by

and sell
$40,000,000 of first mortgage bonds due 1988. Undercompetitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; The First Boston
Corp.; White, Weld & Co.; Morgan Stanley & Co. and
Drexel & Co. (jointly). Bids—Expected to be received
Up to noon (EST) on April 29. Registration—Planned for
April 3.
writer—To be determined by

and

Cerf
New

March 27 it

<4/23)
announced that the company plans to

was

offer $19,700,000

1958

subscrip¬

of convertible debentures for

was

Underwriters—Johnston, Lemon & Co.j Alex.

program.

Sons, Auchincloss, Parker & Redpath and Fol-;
Nolan Inc. Offering—May be earlydn Summer.

Brown &

purposes.

ger,

Washington Natural Gas

■

wH! issue
Proceeds—To retire
purposes.

York.

Under¬

Co.

-

the directors authorized the. sale. ot.

18

■

.

Wisconsin

writer—Dillon, Read & Co. Inc., New York. Registration

March 17 it

—Expected shortly.

$5,000,000

Proceeds—For expansion program.

derwriter—Blyth

announced that the company

$150,000,000 of 25-year debentures.
bank loans—and for other corporate

announced company plans to issue and

$7,000,000 of new securities, which may in¬
stock. Proceeds—For construction

in debentures.

was

//U/;^//J.//i'

clude some preferred

Co.

March 20 it

first by common stockholders of
on basis of $100 of debentures for

about

sell

Oct.

Texas

record April 22,
each 30 common
shares owned.
Proceeds — For construction program.
Underwriter
Johnston, Lemon & Co., Washington,
D. C., and Dillon Read & Co. Inc., New York.
tion

March 24 it

Mass.

Potomae Electric Power Co.

•

Peabody & Co., Inc., and

Washington Gas Light Co.

Underwriters—Floyd D.
Jr. Co. Inc., Chicago, 111.; Charles Plohn & Co.,
York, N. Y., and Clayton Securities Corp., Boston,

other corporate

-

Halsey, Stuart & Co. Inc.;. Harriman

Inc.; Kidder,

White, Weld & Co. (jointly); Shields & Co.

A-Sign Inc., Chicago/Ill.
3, it was announced the company plans to file
with the SEC a proposal to issue. 180,000 shares of
common stock
(par 20 cents). Price — To be deter¬
mined at time of offering. Proceeds—For working capital

York

--

was

Ripley & Co.,

Tel

Bids

it

20

Probable bidders:

March

+C Pittsburgh & Lake Erie RR. (4/24)
are expected to be received by the company in New
on April 24 for the purchase from it of $3,900,000
equipment trust certificates to mature in 15 equal annual
instalments of $260,000 each. Probable bidders: Halsey,
£tuart & Co. Inc.; Salomon Bros* & Hutzler.

S /; ///':/ZV'//

reported that the company, plans an offering of $15,000,000 of bonds, subject to ICC approval.
Underwriter—To be determined by competitive bidding.
March

about

Philadelphia Electric Co. (4/29)
was reported company plans to issue

Jan. 27 it

Thursday, April 3, 1958,

.

Virginian Railway Co.

Southern Railway Co.

/

.

.

Un¬

& Co., Inc., San Francisco and New
;/v/r^
- ■.

Power

&. Light

Co.

and sell

announced that company plans to issue

was

$10,000,000 of first mortgage bonds. Proceeds—
construction program. Un¬
— To
be determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Smith,

—

To retire bank loans and for

Toledo Edison Co.

reported company plans to issue and sell
about $15,000,000 of first mortgage bonds in April or
May of this year. Proceeds—To repay bank loans. Un¬
derwriter—If issue is not placed privately, underwriter
may be determined
by competitive bidding. Probable
bidders: Halsey, Stuart & Co. Inc.; Equitable Securities
Corp.; Eastman Dillon, Union Securities & Co.; and Salo¬
mon Bros. & Hutzler
(jointly); Carl M. Loeb, Rhoadea
& Co.; The First Boston Corp.; White, Weld & Co.

derwriter

March 17

& Co., Inc.; Salomon Bros. & Hutzler;

Inc., Arcadia, Calif.
Feb. 10, Leo L. Strecker, President, announced corpora¬
tion plans issue and sale in near future of $1,000,000
convertible debentures or preferred stock, to be followed
later in 1958 by the sale of about $5,000,000 of common
Stock. Proceeds—For working capital and other corpo¬

Co. and Eastman Dillon, Union Securities &

rate purposes.

retire bank loans and for construction program.

Public Service Co. of Colorado

Jan. 20 it

(5/21)

April 3 company announced it plans to issue and sell
$16,000,000 par value of cumulative preferred stock.

Underwriters
—The First Boston Corp., Blyth & Co., Inc. and Smith,
Barney & Co., all of New York. Registration—Planned
Proceeds—For 1958 construction program.

about the end of April.

(5/12)

Public Service Co. of Oklahoma

•

was reported company plans to issue and sell
$16,000,000 of first mortgage bonds due 1988.
Proceeds—To repay bank loans and for construction pro¬
gram.
Underwriter—To be determined by competitive
bidcfing. Probable bidders: Halsey, Stuart & Co. Inc.;

was

Barney & Co. and Robert W.

The

First

late

in 1958 or

Tuttle Engineering,

May

White, Weld & Co.: and Shields & Co. (jointly); Blyth

Kuhn, Loeb &
Co, (joint¬
ly); The First Boston Corp.; Glore, Forgan & Co.;
Equitable Securities Co, Bids—Expected May 12. Reg¬

Union Electric Co., St. Louis, Mo.
March 28 it was announced company plans

istration—Scheduled for April 14.
(6/17)

this year or in the first
construction program.

reported that the company plans to
Issue and sell some additional debentures. Underwriter
it

20

was

United

be determined

by competitive bidding/ Probable
Halsey, Stuart & Co. Inc.; The First Boston
Corp,; Kuhn, Loeb & Co. and Lehman Brothers (jointly).
Bids—Tentatively scheduled to be received on June 17.
Registration—Expected on May 21.
—To

mid-

announced company plans to raise in

$5,000,009 and $6,000,000 new capital, about
two-thirds of which will be through bond financing and
the

balance

through

common

stock financing.

Under¬

writer—For stock, may be Hornblower & Weeks, Wil¬
liam R. Staats & Co. and The First California Co. (joint¬

Pacific

Southern

Co.

Bids

are expected to be received by the
company on
April 21 for the purchase from it of approximately
$8,000,000 equipment trust certificates. Probable bidders;
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.

dence

recent

as

tended

to

shelves in

Our

Again

back

Reporters
|

have

dealers'

onto

number of instances.

a

tlicy

discouraged
which

offerings
up

was

have

more

several
been

had

less

or

corporations

looking

toward

refinancing

debt

last

The

Institutional buyers of new cor¬

issues,

put

out

fitir up renewed business activity.

perhaps looking

men,

the

on

long

period

of

lean

days experienced during the arti¬

ficially

began

easy

with

maneuvers

money

the
of

period

that

"pump-priming"

the

New

Deal

pension

postwar
not

similar
•

years,

to

be

seem

backed

deter¬
a

position this time.

o—

funds which took

i

ir

funds

cost in years,

funds

on

at

the

lowest

• j

to

their resistance to

Co.,

on

.

T,

and
of

'

.

.

.

_.

..

,

time

during

Worcester Gas Light Co.

sell $5,- Underwriter — To be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Coffin & Burr^ Inc.; Kidder,
Peabody & Co. and White, Weld & Co. (jointly). Bids—
Expected to be received sometime in April.
,

up for competitive
American Can's

debentures tops

by

Joseph
$60

Inc.'s

E.

(Special to The Financial Chronicle)

the list, followed
Seagram & Sons

LOS
A.

million of 25-year

debentures.

Pacific

This list affords

industry

and

a

also

I.

With William R. Staats
(Special to The Financial Chronicle)

maturity.

of

Francis

beqome

"

fair choice of /

Co. of

And, on Friday, Aluminum

has

Statler Center.

\

*

Calif.—Adlor
affiliated
du 'Pont & Co.,

ANGELES,

Ferron

with

Petroleums,

Ltd., the same day will be mar¬

bentures.

bonds.

Joins Francis I. du Pont

bidding.
$80 million of

LOS ANGELES, Calif.—Fredric
If. Kroesche is now with William
R. Staats & Co.,

640 South Spring

America, through its bankers will

Street, members of the New York

million of debentures.

and Pacific Coast Stcck Exchanges.

market $125

Dealer-Broker

Addressing Service

from comment around,

New York Telephone, however,
funding mortgage bonds for next

m0nth, together with 1.2 million
■.
'
,

the

successful

to

indicated

are "feeling
right terms.

bidders

.

..

,

go

to

publishers of "Security Dealers of North Amer¬
ve
have a metal stencil for every firm and
listed In
this publication, which puts us in
a
position to offer you a more up-to-the-minute list
than you can obtain elsewhere.
"-•* t
As

ica,"

bank

,,

shares of common stock the latter

equivalent

an

how underwriters

Americanj Telephone &

There
States

by

Telegraph Co.

Next Wednesday finds, bankers

4$3%, the

^ with one of the biggest days

received, all for
best being 100.611.
were

...

in quite

-

100.3399

for

marking down of yiejds on new

rate.

Here

were

opened

a

•o

too,-, five
four

for

a

price

coupon

other
the

bids
same

-■

.

*

Wc

•

■

-

;*

at

small

also

slated for market that day.

/,

Herbert D. Seibert & Co., Inc.
Publishers of "Security Dealers

of North America"'

And
25 Park Place

Duquesne

V

supply the list on gummed roll labels

additional charge.

while in the new cor-

issues involving $185 million are

only.tone,

can

a

.

porate issue field. For in all, four

For the debentures the success-

paid the issuer

a

approximately 9.000 names in the United
all arranged alphabetically

900 in Canada,

and Cities.

Special N. A. S. D. list (main offices only) arranged
Just as they appeared in "Security Dealers."
Cost
for addressing N. A.. S. D. List, $8.00 per thousand.

Highly Concentrated

took

a

are

and

States

Addressing charge $7.00 per thousand.,

foJZJ 1 c/6,?n it;kof 99.3399
4% coupon. Five other bids

of

reported company may issue and

000,000 of first mortgage

current

the

month. But the project currently
appears to be cooling off, judging

has scheduled $60 million of re-

debentures

around" for

The

;

year

some

.

e?peijen?e ofof $10 million
KS? Power
its offerings

bonds

of

corporate paper has been in evi¬




.

Feb. 24 it was

keting $30 million, of 15-year de¬

d been indicated that the
big company would seek to refund
*"ls *SSUe 011 a lower cost basis

Diversified Bids.

ful bidder

Certainly

.

ias£

<

funds.
.

"

uncertainty regarding New York

sider.

institutions. But those charged
investing other people's
inoney are seemingly determined
to secure a "living wage" for such
with

Co.; Kidder, Peabody & Co.

what

for

ary

group

to

100

Uncertainty

they figure pros¬
pective buyers are willing to con-

due to pressure of

banks and other fiduci¬

at

one

coupon,

yield 4% the
bonds moved out readily, but the
debentures with a, tag of 101 \s to
yield 4*4%, were reported sluggish.

.

ideas

amount

True, the Treasury is borrowing

short-term

Priced

^i,? 1
un^erwrlters»
seeking
nn!a IZvan ff necessary to key their
competitive hidding, find it

and

into

Kuhn, Loeb & Co., and American Securities Corp. v
(jointly). (2) For any preferred stock—Merrill Lynch, r
Pierce, Fenner & Smith; Salomon Bros. & Hutzler and.
Eastman Dillon, Union Securities & Co., (jointly); Leh¬
man Brothers; Kuhn, Loeb & Co. and A. C. Allyn & Co..
Inc. (jointly); The First Boston Corp.; White, Weld &

*

.

carried through World War II and

the

but with

4%%

Uoc?
vac?
f ulZ, ia re<~ent Telephone Co.'s projected plans
^
Er?W 11 °
investors for early refinancing of $70 milmv'nmntaW'ay from low-yielding jjon 0£ series j 4y2% bonds sold
corporate issues, except where

_

mined

rate
a

There is currentlv considerable

securities
have
demon¬
strated they won't be "panicked" private placement was the case,
into a buying mood by the steady are now
thinking pretty much
the same lines
as
their
efforts of the authorities to force along
interest rates down in a move to counterparts
porate

back

setting

taking; such projects.

Report

Portfolio

coupon

and fall, from under-'

summer

petitive bidding. Probable bidders: (1) For any bonds—
Halsey, Stuart & Co. Inc.; White Weld & Co.;. The First
Boston Corp.; Kidder, Peabody & Co.; Merrill Lynch,
Pierce, Fenner & Smith; Eastman Dillon, Union Secu¬
rities & Co. and Salomon Bros. & Hutzler (jointly);)

Dec. 26 it

(4/21)

plans to sell about

$12,500,000 of new securities in the last half of the cur¬
rent year.
The type of securities has not yet been
decided on. Underwriter—To be determined by com¬

Virginia Electric & Power Co. (6/10)
was reported company plans to issue and sell
$25,000,000 bonds or debentures. Underwriter—To be
determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co.; Salomon Bros. & Hutzler; White,
Weld & Co.; Eastman Dillon, Union Securities & Co.;
Stone & Webster Securities Corp.; Kuhn, Loeb & Co.
and American Securities Corp. (jointly). Bids—Tenta¬
tively .expected to be received on June 10.

ding.
Only bidders in 1956 for $4,000,000 bonds were
Halsey, Stuart & Co. Inc.; Hornblower & Weeks and
William R. Staats & Co. (jointly).

Under¬

Public Service Corp.

March 4 it was announced company

April 11.

For bonds, to be determined by competitive bid¬

ly).

Proceeds—To

Offering—Tentatively expected in May.

Wisconsin

Underwriter—
To be determined by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.
and Drexel & Co. (jointly); Blair & Co., Inc.; The First
Boston Corp.; Kidder, Peabody & Co.; White, Weld &
Co.; Merrill Lynch, Pierce, Fenner & Smith and East¬
man
Dillon, Union Securities & Co. (jointly). Bids—
Expected to be received on May 13. Registration—About

/ Southern Nevada Power Co.
was

Co., Inc.

to market

bank loans and for construction program.

1958 between

of 30,000 shares

preferred stock (par $100).

writers—Smith, Barney & Co. and Robert W. Baird &

(5/13)

Improvement Co.

(5/9-27)

announced company plans to offer to

stockholders the privilege of subscribing for

common

of cumulative

reported company plans to issue and sell
$15,000,000 of first mortgage bonds. Proceeds—To repay
Jan. 23 it

bidders:

Dec. 3 it

Gas

'

Power & Light Co.

was

holders, subject to allotment, an issue

Proceeds—For
,
■'
i

quarter of 1959.

it

early in 1959.

241,211 additional common shares at the rate of one new
share for each 12 shares held and to preferred stock¬

$30,000,000 of common stock in the latter part of

about

Public Service Electric & Gas Co.

March

its

Offering—Not expected until

Bostojj Corp.

Wisconsin

Jan. 20 it
in

Baird & Co., Inc. (jointly);

Equitable Securities Corp. and Eastmaa/jjillon, Union
Securities & Co. (jointly); White, Weld & Co., Kidder,
Peab'ody & Co. and Salomon Bros. & Hutzler) (jointly); ;

Light- Co.'s

$15 million of new bonds will be

—

REctor 2-9570

—

" ''

•*

New York City

Volume

Number 5730

187

.

.

The Commercial and Financial Chronicle

.

(1533)

The

Indications of

following statistical tabulation*

latest week

Business Activity

week
Latest

Equivalent to—

April 6

Week

§48.09

Month

Yeat

Ago

*50.6

that date,

on

§1,298,000

52.8

*1,366,000

90.6

1,425,000

oil mnd

condensate

output—dally Average

2,319,000

OF

Crude tuns to stills—dally average (bbls.).

Afar. 21

Gasoline-output

(bbls.)
_Mar.
Kerosene output (bbls.).
.Afar.
Distillate fuel.oil output (bbls.)
.Afar.
Residual fuel oil output (bbls.)
.Afar.
gfcocks-at refineries, bulk terminals, In transit, In
pipe lines—
Finished And unfinished gasoline (bbls.) at.Afar.
Kerosene (bbls.) -at_
iAlar.
Distillate fuel oil (bbls.) at
—
.Mar.
Residual fuel oil (bbls.) at
.Afar.
.

ASSOCIATION OF AMERICAN RAILROADS:
-Revenue freight loaded (number of cars).

6,256,985
7,479,000
25,647,000'

24,997,000

6,807,635
7,506,000

2,693,000

25,937,000
2,366,000

11,891,000

12,008,000

21

2,352,000

21

11,587,000

21

7,197,000

7,769,000

21

216,907,000

216,525,000'

213,116,000

21

: 17,178,000

18,596,000

21

19,978,000

78,449,000

81,853,000

96,668,000

21

77,603,000

55,013,000

551061,000

55,435,000

539,057

492,389

514,870

529,025

480,628

—

State

Mar. 27

Pennsylvania

132,318,000
145,944,000

Afar. 27

190,240,000

$304,665,000

44,250,000

113,411,000

84,244,000

54,864,000

7,440,000

*7,635,000

6,790,000

Retail

322,000

427,000

109

106

82

ELECTRIC

Alar. 29

11,645,000

11,756,000

11,803,000

11,694,000

327

357

331

(COMMERCIAL AND

INDUSTRIAL)

DUN

—

steel

Electrolytic

(E.

ERAL

{St.

$36.33

mated

$37.33

$45.83

in

24.375c

31.250c

19.725c

29.200c

21.725c

20.925c

13.000c

12.800c

12.800c

12.800c

10.500c

10.500c

10.500c

13.000c

13.000c

"

10.000c

10.000c

10.000c

Alar. 26

26.000c

26.000c

26.000c

93.625c

94.500c

95.94

94.94

94.67

95.47

95.32

101.80

101.80

102.30

Group
Group

99.36

100.00

99.36

.

95.62
91.34

•

Y

91.34

i

95.62

86.24

Y

97.16

-

95.92

95.01

86.24

April
April
April

corporate

Aa

96.85

97.78

98.09

98.41

2.85

2.93

2.95

All

4.05

4.01

All

3.66

Group
Group

3.95

3.89
3.85

230,020

=

273,800

272,450

272,590

88

88

89

393,182

330,479

109.76

109.33

FOR

ACCOUNT

'

OF

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

.

at *i r

1,060,210

1,338,670

1.485,200

.

..

on

Group

100

1,138,740

250,750

212,910

Industrials

779,330

1,227,380

986,820

Railroads

1,026,360

1,551,690

1,199,730

_

8

299,360

Mar.

Total sales

8
8

Mar.

8

334,360

Mar.

8

H

336,260
,

278,400

35,000

29,100
219,350

44,000

248,450

434,820

'

i

I,...,-..,

Short sales

———.—Mar.

sales

456,204

237,000

Total sales

IHHHMar.

143,760

570,596

388,815

632,872

NEW

8

701,696

483,175

776,632

8

2,131,134

1,675,960

2,407,597

Mar.

8

416,850

370,490

1,872,036
347,140

1,898,136

1,387,495

8

Short sales

2,314,986

1,757,985

—

SECURITIES

Odd-lot sales by dealers
Number

Dollar

of

IN

.*

512,070

2,251,072
2,763,142

All

Dollar

Number

of

1,013,055

857,273

22,443

20,961

8,728

Mar.

905,306

848,545

$39,627,658

777,240
$33,864,833

992,094

.Mar.

$45,785,039

$40,190,410

sales.

of

Mar.

235,870

Mar.

TOTAL ROUND-LOT

235~870

Mar.

1

STOCK

round-lot

SALES

ON

THE

N.

236,360

233,770

472,980

All

—

.

236~360

233^770

products

Processed

582,190

736,690

693,290

903,330

8,379,320

Peas,

figure-' ^Includes
1958,

as




BOARD

1958 —U.
—

11,922,930
12,826,260

foods-

4.93

4.59

3.16

L'3.10

4.56

54.44

£24,611,000

£28,059,000

£70,494,000

ACREAGES
1:

73,985
12,384

11,409

2,365
10.019

39,658

—

12,588

1,179

all

for

43.020

16,537
5,562

fall

and

1,078

dry edible

dry

RYS.

284

available

Other

for

fixed

from

fixed

income

charges

:

1

income

Dividend

income

common

On

preferred

Ratio

of

taxes

appropriations:

On

i
•

stock—

136,060,643 ./

80,553,395
49,539,296

130,402,912
100,461,728 '

4,345,216
45,194,080

95,656,318

48,215,327

48,981,456

46,361,594'

—

$85,879,125

5,657,731,

4,805,410

205,237

16,206,385

16,524,044

24,316,285

68,957,240

22,335,099

1.496,302

4,899,731

2,152,457

3.55

2.60

4.36

<

stock

income 1o

50,181,518'«

85,352,855
4,799,460

108,868,585
7.8,218,616
4,592,343

Depreciation (way & structure & equipment)
■

21,109,500

6,082,124

charges

deductions

Net

$64,243,355

73,626,273

deductions

$58,981,356
55,969,353
114,950,709

1—
—

after

84.7

918

I

income

income

Income

104.1

CLASS

1,805
73,776

of December:

railway operating

Income

125.3

S.

21,804

(Interstate Commerce Commission)—

Month
Net

89.1

125.8

~/

915

INCOME ITEMS OF U.

117.0

103.7

249

beets—

97.3

109.7

292

1.123
1,464

1,795
72,533

119.2

106.1

1,064

1,419

1,544

field—

99.8

109.9

101

294

'119.6

125.9

32

176

1,424

100.4

125.9

46

"32
103

119.8

108.8

26,958

38
jl—

—

Mar. 25

110.7

1,370

23,519

purposes

173

summer

Other

Mar. 25

i

S.

23,985

9,968,450

Mar. 25

farm and

4.78
3.12

BRITAIN

Peanuts

9,486,490

9,072,610

,„Mar. 25

1,

FOR

6.55

4.82,

1,096

481,960

10,232,890

882,000 barrels of foreign crude runs.
§Based on new annual capacity of 140,742,570 tons
against Jan. 1, 1957 basis of 133,459.150 tons.
tNumber of orders not reported since introduction of
Monthly Investment Plan,
IPrime Western Zinc sold on delivered basis at centers where freight from East St. Louis exceeds
one-half cent a pound.
of Jan.

GREAT

summer

Federal
•Revised

IN

PLANTING

.Mar. 25

foods

4.27

6.80

4.64

75,143

Miscellaneous

Meats

as

—

potatoes

Beans,

Y 501,530

10,969,580

—

All commodities other than

.....

ISSUES

Total income

S5*,

4.40

4.62

4.62

(10)—

Total

S. DEFT. OF

commodities

Farm

$5,000

7.06

(24)—

———.————_.

spring

Late

197~500

364,360

y

Mar.
U.

$5,402

4.49
L

spring

Early

Hay
Sugar

—Mar.

PRICES, NEW SERIES
LABOR — (1947-49=100):
Commodity Group—

509

1,239

Feb.:

197,500

—Mar.
-

WHOLESALE

of

——

SELECTED

sales

$3,252

428

1,507

OF

Winter

sales—

Total sales

$3,467

459

$4,860

!

YIELD

spring

Late

Y. STOCK

Short sales
Other

1

—

STOCKS—Month

REPORTING

Early

EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
FOR ACCOUNT OF MEMBER8
(SHARES):
Total

;

AVERAGE

#

Potatoes:

Mar.

shares

148

902

—_——

spring wheat———

Sweet

purchases by dealers—

Number

1,177,300

by dealers—

shares—Total

146

132

$3,499

————~

Oats

$55,432,432

799,683

15,145

sales

Round-lot

$50,083,429
920,451

Short sales

Other

933,532

Mar.

value

Round-lot sales

133

February
\

all

Sorghums
1,117,796

Mar.

other sales

1.86

INSTITUTE

;

THOUSANDS—As of March

Other

2,127,750

$40,936,390

short sales

2.17

1.92

1,456

Mar.

Customers'

—

Durum

1,780,610

1,336,171
$57,892,492

Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales

2.24

4,607

Mar.

value

$2.05

40.2

40.9

16,034

•

(customers' purchases)—t

-Customers'

PURCHASES

EXCHANGE COMMISSION:

shares

39.3

$2.10

131

—

CAPITAL

Corn,

■TOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT DEALERS AND SPECIALISTS ON N.
Y. STOCK

EXCHANGE

38.3

130

(200)—

CROP

596,720

Mar.

purchases

38.9

1.92

(125)
(25)

PROSPECTIVE

round-lot transactions for account of members—

Total

V

38.6

2.23

——

.

MIDLAND BANK LTD.—Month of February

104,330
492,390

8

Total

73.10

38.2

,

(15)

Average

496,296

131,100

337,350
94,360

541,977

8

:

$2.10

(not incl. Amor. Tel. <te Tel.)

Insurance

301,400
331,300

380,420

8

—

Utilities

29,900

390,820

88.75

73.54

38.8

—

COMMON

1,278,930

Mar.

$82.41

87.14
*

38.5

...

.„_

goods

WEIGHTED

1,028,180

Mar.

sales

Other

1
.—

„

:——

8

324,310

$81.06

Y

''''Y^YYrYrYY'YYYY^

——

Banks

-

Other transactions Initiated off the floorTotal purchases

$80.85

.

86.52

——

8

247,030

2,260

73.34

Industrial

8

the floor-

Total purchases
Short sales
Other

—

LIFE INSURANCE—Month of

Mar]

Other transactions Initiated

—.

adjusted

Mar.

sales

Total sales

4,111

OF

DEPT.

S.

goods

Total

8

3,199

2,409

;

INSURANCE

MOODY'S
Mar

3,502
4,760

February:

(000,000's omitted):

MEM-

HERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which
registered—
Total purchases
Other

ESTIMATE—U.

Ordinary —

I
—Mar. 28

TRANSACTIONS

3,514
r-

110.72

<

9,570.

2,451

—

;

manufacturing—!

OF

408,010

109.88

LIFE

.95

359,226

1,872
6,981

4,264

-

.

—

8,305

AND HOURS—WEEKLY

goods-

Seasonally

288,866

Mar. 22

100

;

;

—

Unadjusted

257,167

.Alar. 22

10,671

14,410

ERNORS
OF
T1IE
FEDERAL
RESERVE
SYSTEM—1947-49= 100—Month of Feb.:

409.1

249,513

10,229

31,568

»

INDUSTRIAL PRODUCTION—BOARD OF GOV*

3.88

397.6

Mar. 22

AVERAGE

7,949
—

$41,138

*34,105
15,496
*8,687
1,984
7,938

goods
/ /.'■
'V'/

Durable

3.94

3.87

400.1

239,605

"OIL, PAINT AND DRUG REPORTER PRICE INDEX—

...

3.93

3.86
394.0

.Mar, 22

of activity.
Unfilled orders (tons) at end of
period.

Slurrt sales

4.04

,

(tons)

ROUND-LOT

4.29

*$44,776
>

1,963

-

credit

credit

Nondurable

'

Percentage

4949

4.32

Y

3.79
4.42

April

—

loans

loans

manufacturing

All

3.95

4.65

April
INDEX

NATIONAL PAFERBOARD ASSOCIATION:
Orders received (tons)

Production

3.75
4.03

4.69

4.32

April
April

3.79
4.07

4.69

'

3.78

33,737
8,499

goods——
Hourly earnings—•

3.96

3.61

;

$43,966

Nondurable

3.64

.1

31:

15,326

goods

Hours—

3.24

4.04

RE¬

Nondurable

97.94

I

4.03

Railroad Group
Utilities

FEDERAL

j;

manufacturing

Durable

Y

97.00

3.64

April

„

THE

credit

LABOR—Month of

95.47

April

COMMODITY

$555,000

Weekly earnings—

89.92

"4.
YY

April

_

Industrials

$654,000

YORK—

consumer

AVERAGE

96.69

96.85

86.78

91.77

.

98.25

April

Aaa

OF

of Jan.

as

consumer

Durable

YIELD DAILY AVERAGES:
T7. S Government Bonds

MOODY'S

10,791

$776,000

NEW

OUTSTANDING—BOARD

FACTORY EARNINGS

101.47

99.52

April
—

OF

Single payment loans
Charge accounts

rOODVS BOND

Public

millions

Service

91.19

April

Public Utilities

Average

13,080

IN TIlE

SYSTEM—REVISED SERIES—Estiand intermediate term credit

Personal

13.500c

April
—.

Railroad Group

$65,406,000

.*

14,780,000
8,440,000

BRADSTREET,

(000's omitted)

Noninstalment

101.625c

April

;

&

goods
Repairs and modernization

25.000c

93.500c

April
April

.

2,493,000

$64,442,000

6,291,000

•

short

Other

-

,.

16.000c

Alar. 26

at

An
;

3,364,000

$65,295,000

Automobile

14.000c

Alar. 26

Average corporate
.

9,868,000

OUTSTANDING—FED¬

BANK

CREDIT

SERVE

15.800c

Mar. 26

MOODY'S BOND FRIGES DAILY AVERAGES:
U. 8. Government Bonds

A

23.650c

Mar. 26

"Zinc

A«a

24.350c

Alar. 26

(East St. Louis) at
Aluminum (primary pig. 99%)
Straits tin (New York) at

8,747,000
3,309,000

—

Instalment credit

Mar. 26

at

Industrials

5.670c
$64.56

_Mar. 26

at

(delivered)

tZinc

5.967c
$66.49

Total

refinery at

Louis)

$33,402,000

5,505,000

20,788,000

February

GOVERNORS

5.967c
$66.49

QUOTATIONS):

Export refinery at
Lead '(New York) at
Lead

OF

5.967c

copper—

Domestic

$24,917,000

5,870,000
23,038,000

^

PAPER

As of Feb. 28

$66.49

$35.00

of

RESERVE

Mar. 25
Mar. 25

J.

93-

1,146

10,466

liabilities-

STATES—DUN

COMMERCIAL

Mar. 25

M.

&

1801

78

$24,331,000
_

;

„_

liabilities—

CONSUMER

(per lb.)

TRICES

176

1,279

liabilities
service

568 (

_Y

_

liabilities

INC.—Month

&

INC.

Pig Iron (per gross ton)
Scrap steel (per gross ton)
METAL

-

106 V

177

_

liabilities

UNITED

„

IRON AGE COMPOSITE PRICES:

Finished

199

130

'676

79

—

BUSINESS INCORPORATIONS (NEW)

*

,

(in 000 kwh.)

BRADSTREET,

.219

662

290

109
.V.•,'

992,173,000

112

1

113

32,533,000

Total

INSTITUTE:

2,249,000 '

1,522,767,000 1,422,127,000

208

liabilities

Commercial

422,000

Mar. 22

65,040,000

167,150,000

;

number

Construction

10,355,000

328,000

*

388,872,000

237,280,000

number

Manufacturers'

141,245,000

Alar. 22

=

224,156,000

—

number

Wholesale

133,498,000

INDEX—FEDERAL RESERVE

AVERAGE

12,132,000
114,640,000

| Commercial service number

225,489,000

Mar. 22

(tons)

SALES

$307,130,000

11,180,000
374,940,000

446,690,000
11,501,000
468,885,000
110,250,000

shipped between

—

number

Construction

$358,987,000

128,238,000

176,427.000
132,177,000

Mar. 27

anthracite

SYSTEM—1947-49

FAILURES

$278,262,000

196,086,000
245,104,000

lignite (tons)

and

DEPARTMENT STORE

Electric output

and

_

„;

Manufacturing

(U. S. BUREAU OF MINES):

coal

stored

countries

Wholesale

685,836
645,087

-Mar. 27

Bituminous

EDISON

$441,190,000

Alar. 27

Federal
COAL OU1TUT

I
;

goods

$272,821,000
460,866,000

$261,285,000

..

.Alar. 27

municipal

I

credits—

Total number

construction

and

_

Total

ENGINEERING

Private construction
Public construction

v

;

~~

on

Ago

BANK

28:

I

warehouse

Year

Month

BUSINESS FAILURES—DUN &
BRADSTREET,
INC.—Month of February:
- *
a.,

NEWS-RECORD:
Total Tf. -S.

J

foreign

:

Retail

533,019

CONSTRUCTION

...

2,265.000

RESERVE

of Feb.

exchange

Based

36,886,000

*7,161,000

.Mar. 22

ENGINEERING

Dollar

205,521,000

17,459,000"

•

FEDERAL

—

shipments

Domestic

12,855,000
Y 8,385,000

.

of that dates]

Previous

OUT-

■_

Domestic

7,819,115
7,976,000
25,060,000

*

freight received from connections (no. of cars)—Mar. 22

Revenue

CIVIL

21

6,262,885
117,316,000

ACCEPTANCES

NEW YORK—As

Imports
Exports

.Afar. 21

DOLLAR

STANDING

■

~

(bbls. of

42 gallons each)

are as

Month

BANKERS'

AMERICAN PETROLEUM INSTITUTE:
Crude

of quotations,

Cases

Latest

-•

—April 6

in

or,

either for the

are

-

Ago

-

Bteel.lngots and castings (net tons)

production and other figures for the

cover

month available. \ Dates shown in first column

month ended

or

Previous

Week

AMERICAN IRON AND STEEL INSTITUTE:
Indicated steel operations (per cent capacity)

or

45

—Y—
fixed charges

—

—

.

'

46

The Commercial and Financial Chronicle

(1534)

Be Revealed Mon.

Brothers, now prominently
identified
with
the
king-sized

Lehman Corporation,
officially -disclosed at a

closed-end
be

this
city -next Monday, April 7. Cur¬
conference to be held in

press

that the new
as the One
William Street Fund, Inc. and will

rent indications are

known

be

will

fund

capitalized at $37,consisting of 3,000,000
be priced at $12.50 a
share. Public -offering of the issue
is expected to be made sometime
in May via a syndicate to be man¬
initially

be

500,000,

to

shares

aged by Lehman Brothers. Offi¬
cers of the fund, it
is believed,

President,

include:

will

Dorsey

Vice-Presi¬
VicePresident, Edward B. Burr, now
Executive Director of the National
of

Investment

Com¬

panies. The One William Street
Sales Corp. is expected to be the
national underwriter for the new
fund and the position of national
sales

will

of the corporation
by Richard Gibson,

manager

held

be

formerly Vice-President of Leh¬
Corporation.

man

Page, Vice-President of Tri-Continental Corp.,
the nation's largest diversified closed-end investment company,
declared the utilities can achieve this result r'"'if you obtain a
strong growth trend in per-share

B.

Franklin & Company,
Street.

?

'

,

.

company's portfolio. They appreciated 8.3% in 1957, Mr. Page
said, compared with a 12.7% decline for the Dow-Jones Industrial
Average. Over the past 10 years they have gained 277% in value
compared with a 140% gain tor the Dow-Jones Industrial Average.
"There has," he

explained, "been a wide divergence in earnings

among the utilities, and yet even the slowest moving utilities have
been able to keep pace with the industrials during the past seven-

period which included a minor war, tight money and strong
inflation, all of which are supposedly bad for utilities.
v

year

"The rate

of

in

increase

earnings

of

the

utilities

non-city

during this period has been over two and one-half times that of
the industrials. And still most investors will tell you that utilities
earnings

are

slow moving."

is

opinion,"

my
a

he

investing

the

"that

added,

public

bill of goods on an idea that is not based on fact."

trends."
you

Page

"Since defensive

Interested

securities," he declared, "acquire popularity

only during periods of recessions and uncertainty when capital
requirements are the lightest, it is against your interest to have
your stocks sell on this basis. Although many prominent utilities
have a market history that lends credence to this theory, it need
not be true and it is not true for a large segment of the industry."

ATOMIC

and three associated
National Investors
Corp. and Whitehall Fund, Inc.—have $129,000,000 invested in
utilities, $84,000,000 in common stocks and the rest in bonds and
preferred stocks. Additionally, he said, J. & W. Seligman & Co.,
of which he is a partner, has about $22,000,000 invested in utility
common stocks through its investment advisory department.
The
common stockholdings in total account for
over 22% of the ag¬
gregate funds involved.
He

brought

free

prospectus describing Atomic

Development Mutual Fund, Inc. This
fund has more than 75 holdings of
^
stocks selected from among those

Of^companies active in the atomic
field with the objective of possible

Tri-Continental

that

out

Street

mutual funds—Broad

you a

Investing

growth in principal and income.
Atomic

Development Securities Co., Inc. Dept C
WASHINGTON 7, D.

United Fruit Co.
Sulphur Co.
As of Feb. 28, the largest hold¬
ings in each of the three securi¬
ties categories were American &
Foreign Power Co. bonds, Kaiser
Steel Corp. preferred stock and
and

C.

24c Dividend
Income

Keystone
maintained

approxi¬
mately 20% bonds, 40% preferred
diversified portfolio of

stocks

and

40%

common

stocks,

according to the semi-annual re¬

port

BOOKLET-PROSPECTUS

iff

describes THE

COMMON STOCK

JJ

™

FUND of
CROUP

jjj

SECURITIES, INC.

growth
through com¬
mon

.

Number

their invest¬

quality.

that net asset

share

(Canadian

(U.

$37.41

to

S.

1,193,000 out¬
standing shares.
Three months
earlier, on Nov. 30, 1957, net asset
value

a

on

oil

the

Hard wick Stires, President,

said

$38.94

or

(U. S.)

share

a

ered .by the report "some bank
stocks and certain consumers goods

companies

replaced
other
cyclical industrials, and some of
the more promising Western oils.
A beginning was made toward in¬
have

been

with construction companies,

in

investment

opr

the

industry."

of

financial

on

the

ether

and

expansion

made

it

of basic indus¬

the

lor

necessary

by
credit
Following liberaliza¬

restrictions.

credit

of

construction

common

Fall, housing
expanded
sharply.

Holdings of

Shares
No.

outstanding

5,854,700

5,155,467

23,047

21,726

$7.77

$8.47

0.24

0.24

shareholders

Asset

value

sh.

Inc. per sh.(6 mos.)

per

Feb. 28,'57

$45,495,820 $43,683,013

six-months' period

for

1958

are

A

to

on

92.4% of net

The largest

conversion

of

K-I

from

an

chart showing the mutual
funds deemed suitable for minors,

the

and

number

of

shares

Cole, Others Join

Purchases

included:

min¬

and

& Bloedel
amount

during

the

quarter

12,000 shares MacMillan

"B," $100,000 principal
British

of

Petroleum

6%

convertible

debentures

5,000

shares

International

leum

Co., Ltd., 9,000 shares Home

Oil

Co.

1976-80,
Petro¬

Ltd.

"A," 2,000
Steel Company of Canada.

(Special to The Financial Chronicle)

LOS

ANGELES, Calif.—Corne¬

A<Mf#ss_

in Pullman Incorporated

_Stof»_

GROUP,

,

business

for

shares

INC.
t

stock

holdings in Phelps for Francis

I.

du

Pont

&

Co.

the

period

additions to
but

there

Securities

3% -1976

preferred

York

no

were'

Sale: Tennessee Gas

Aluminum

4%%

v

were

investment holdings,

the following

eliminated by
Transmission

bonds,
Chemical

.and

stock

New

and

State Gas and Electric Cor¬

poration

stock.

common

Indications Point
To

Resumption of

Canadian Growth
of

management

General

Fund

Limited

Canada

opti¬

are

mistic about the Dominion's prom¬

ising long-range growth potential
is continuing to buy common
of Canadian
corporations,

and

it

announced

was

fund's shares

$11.13
Nov.

by

T.

Henry

as

of March

20

was

compared with $11.15 on
1957 and $10.78 on Feb.

as

30,
Net

declined to $70,$73,556,279 during
the quarter ended Feb. 28.
28.

195,430
Mr.

many

ward

assets

from

Vance noted that there

curve

of

are

that the down¬

indications

Canada"^

economy

the Canadian dollar from

on

Commerce.

rec¬

ord

Funds
A

to

Merge

special meeting of stockhold¬
of

Science

Nuclear

&

Fund

has been called for April
14,1958,
to vote on a proposed
merger of

levels; inventory position in
a great many lines have been re¬
duced to record lows; population
continues
to
increase; plus the
prediction, that the sale of oil
could increase by B0% as a result
of Canadian oil being introduced
into the Montreal market.

the Philadelphia mutual fund into
A
big plus factor, cites Mr.
Nucleonics, 'Chemistry & Electron¬
ics Shares, also
a
mutual fund Vance, has been the number of

headquarters in Englewood,
Jersey.

Under the proposal, approved
by the boards of directors of both
Science

would

be

&

merged

You

YOUR sihare

can own

of American business"

Nuclear

through

through

the issue of shares of NCE in

ex¬

FUNDAMENTAL

change for the assets of Science
&

Nuclear

Fun#.

Each

S.

&

INVESTORS

N.

shareholder would receive shares

total

$10.05
On

net
a

the

were

&

Nuclear

assets

of

share

on

same

date

$1,785,200

or

Fund

had

'in

of

mutual fund

a

common

a.

investing

stocks. For copy

prospectus-booklet of
Fund, mail

facts about the

$1,010,049 or
18, last.

this coupon today.
Name

$8.33

a

assets

share.

on April 15, 1958.
The management of NCE plans
to qualify its shares for
exemption

is effected.

...

NCE's

March

Corp, 5^"% cumulative years was formerly with Hemp¬
conv. pfd. "A". Among the elimi¬
hill, ^.Noyes
& Co., and prior from Pennsylvania personal prop¬
nations were
the preferreds of
therlto was Los Angeles Manager erty taxes in the event the
El
Paso
Natural
Gas
Co.
and
merger

common

.

during the quarter in¬ appears to have run its course and
cluded: 4,000 shares Royal Bank that continuance of the postwar
It
of Canada, 4,000 shares Dominion expansion may not be far off.
Stores Ltd., 8,200 shares Dominion is stated that residential building
Bridge
Co.,
Ltd.,
4,000 shares starts, aided by $300 million of
new mortgage money, ace at sea¬
Bank
of
Montreal, .165
shares
Unilever N.V. (1000 G.P.), 2,550 sonal highs this winter. In addi¬
shares Canada Packers Ltd. "A," tion, there are other -good signs
such as the decline in the premium
2,000
shares Canadian
Bank
of

the proposal

many

ton Hotels

BfewYorkS, N.Y.




and Hil¬ investment

In

.

Sales

Science

E. F. Hutton Co.

H. I. Prankard 2nd, President,

Canadian
security prices, Mr.
17.3%, public utility, 8.5%,
8.1%,
steel.
7.8%,
mer¬ Vance noted, have fluctuated with¬
in
a
narrow
range
in
recent
chandising,
6.7%,
banking
and
months.
Net asset value
of the
finance, 6.6%.

Fund

a

the

paper,

companies,

since cludes

value

.

ings,

"The Investment Facts of Life" is

In the last two years,

metals

•

eight-page booklet titled

about

increase in the
of the shares, according to
to

Vance, President.

included:

being offered to investors by Lee
Higginson Corp., 20 Broad Street,
New York City. This booklet in¬

new

values

contributed

other

equally

stocks

with

in¬

shareholders

of

the

on

The

stocks

common

28 amounted

New

NEW BOOKLET

the market

stocks

ers

Feb. 28.'58

in

28, com¬
$3.63 a

or

1957.

of bonds and preferred stocks on
one hand and common stocks

group holding
petroleum stocks, which com¬
prised 28.7% of net assets. Other
major group holdings of common

feiGas

stock.

Total net "Assets

30,

the

above 1957."

assets.

Nov.

on

last

estimates

Current

<

Electric

share

construction

housing

Feb.

Feb.

on

resources

Government to discourage private

35%

$26,"710,155, or

were

share

Kaiser

During the peak of the boom in
Ca nada,
he said, 4'concentrati or

tion

cents

assets
a

Increases

tliat during the three months cov¬

paper

Net

$3.87

shares.

of

number

creasing

reports an in¬
a share,
or

fund,
24

of

in the asset value of its
shares during the
three months
ended
Feb., 28,
1958, the first
quarter of its current fiscal year,
which began Dec. L 1957.
V2%,

$45,037,747 (Canadian), pared with $25,646,831

was

lius Cole, II, James A. Curlette
Major additions in the first half
The approval of two-thirds of
of the current fiscal year were and Wilfrid H. Stiles have become the
outstanding stock
of
both
21,000 shares of American Bak¬ associated with E. F. Hutton ,& funds is
required to make
the
eries
Co. and
15,200 shares of
Company, 623 South Spring Street merger effective as of April 16,
Singer Manufacturing Co. Key¬
1958.
NCE shareholders vote on
Mr. Cole, who has been in the
stone also increased its positions

Mail this
advertisement.

DISTRIBUTORS

equal

500,000 during the last six months
of
1957, when common stock
prices were in a sharply declining

000

selected for

63 Wall SItm!,

for the

outstanding 37% to 5,854,700. In
that same period total net assets
have grown from $41,455,944 to
$45,495,820.

Oy.

shows

to a fully man¬ businessmen, younger people, etc. of NCE in the equivalent net asset
value of his former shares in S. &
aged fund, the number of share¬
holders has increased 20% to 23,N., plus cash for fractional shares.

stocks

ment

dollars)

6

income preferred

and pos¬

sible

dollars)',

crease

$43,708,663

was

creased by 900 and net purchases
of new shares amounted to $2,-

the

investing for in¬
come

Service

ended Feb. 28.

trend.

A mutual fund

Gulf

of 24 cents per share from

dend
a

Corp.;

Texas

K-I Public

Fund

semi-annual divi¬

its

Corp.,

Dodge

Keystone K-l
Maintains Its

1033 THIRTIETH STREET, N. W.

year,

value

balanced

of

28, 1958, the
the company's

61/2%

American Business Shares, Inc.,
a

Feb.

was

will make your stocks aggressive investments," the
Tri-Continental executive predicted to the utilities officials, "I
have no doubt as to your ability to attract capital at reasonable
costs over the long run."
"If

warned the utilities executives that the general
public regards utilities stocks as "purely defensive securities."

glad to send

fiscal

the -three

for

utilities

price-earnings ratios may in some instances
seem high in relation to past periods, Mr. Page noted that "they
are
not as inflated as many industrials having similar earnings

Mr.

We will be

ended

quarter

tries

Mr. Page attributed much of this thinking to "the compara¬
tively poor market action of the more prominent utilities that has
helped to convince people that they are right in considering utili¬
ties as sluggish, defensive securities."

Lid.

third

same

Noting that utilities are generally considered as defensive
securities, the Tri-Continental executive Reported on the excellent
showing made by utility common stocks An the large investment

While

Seventh

West

earnings combined with improved

price-earnings ratios."

LOS

215

industrial stocks,

Frederick W.

{Special to The "Financial Chronicle),

ANGELES, Calif.—-Arthur
Diamond is now connected with

their common

a holding for the investor as
investment company manager told

York

Canada

months

stocks just as
a New
public utility executives
attending the Southeastern Electric Exchange conference.
should make

utilities

Public

aggressive

has been sold

With Samuel Franklin

of

Utility Stocks

Tri-Con Executive Discusses

"It

Samuel

Gains

Interim report of Scudder Fund

Richardson, currently

dent =of Lehman Corporation;

Association

Share Value

the

man

will

American Business

$43.7 Million

By ROBERT R. RICH

much-rumored
fund to be created by Leh¬

mutual

Thursday, April 3, 1958

.

Assets Now at

Mutual Funds

Open-End Fund to
of

.

Sciwlder Canada

Details of Lehman's

Details

.

.

.

^

...

_

.

.

-Jf

■

Address.:

HUGH W. LONG
ANO COMPANY,

INC.

Blilabeth 3J.

27

'

Volume

187

Number

5730

.

.

The Commercial and Financial Chronicle

.

(1535)
•

constructive
Canadian
late

steps

taken

Government

by

to

the,

■.V '''

Pnfnnm
f; •fllldUl

stimu-

the

country's economy.... Ina
*.
come taxes, for
^example, already^i:XTLSS0lS
have been cut by $175 million,>V
unemployment benefits and,;, old
Al'0
pensions have been increased

age

and

r>

rumirtli

-Investment

.

^Jt UW III

•

»

.

-■

/v,

.

b

.

111 ISt UtF •

;

dends,

Study

the
state

f Stresses ^Social

/

automobile

lVlllllOll ,:";M
v

^

^tnam Fund of Boston.

This compares with- assets of

$2,360,000 • and 1,300 shareholders reported in the F.und's
economic scene, he pointed out, first Quarterly Report covering
should not overlook the important the permd from the introduction
over

v.of^the^nd on. Nov.

195J to

Feb. 28, 1958. The original start-

and

?

.

industry class!-The largest
holdings

oil

v ere.

&nd

21.3

gas

$24,000 'to duplicate, it

products 12,5%, utilities .12% and
'
•
••
quarterly report

revealed

the

The

report

ASM'
Charles M.

list_of common stocks

points

that

out

if

Security payments, he
mugt adjugt to a lower standard
of living while if tie continues to

interestin7

the

increases

made

were

in

fund's

of securities owned on Feb. 28
exceeded cost by $33,212.
"As the general business out-

holdings of Calgary &
Corp., Ltd., Canadian l?ok becomes clearer, or as attracHusky Oil Ltd., Pembina Pipe tive investment opportunities prevviguiuiiLiKi,
Line Ltd., Security Freehold Pe-<"sent themselves, the percentage
troleums Ltd. and Sylyanite Gold invested in common stocks will be
Edmonton

Mines

,tT

Ltd.

:' Ah

Lillallgts
: Letter"

"Atomic

just

re-

leased

by the distributor of
Development
Mutual
Fund, Inc.;, points out how profitAtomic

able

atomic

energy work now is
companies. ;
>
'
- 7
Among, the firms deriving ex¬

for
;

they

ever

many

cellent

earnings from atomic
are .IB^ Voltage
High
Engineering Company and NuclearChicago Corp. in the field of

...

,

*
continue to seek long-

be f0Uncj regardless

may

the

wher-

I

a-.

of

ulUblL

..

f X Salf'i

;o
vve u/Hi also
will Qkn

Flllld

,

of

security, industry
or geographical location. We .believe that today's more sober atmosphere is a good time to lay the
foundation for tomorrow's profits."

-The ten largest

;

f

p

..

{uU

his

and

uramijm

and

mining and-milling,
: Che m i c a 1

Mallinckrodt

Works,

producer

a*

uranium

and

of

uranium

PtodSMi.
fund's switch

of

•

shares
Mines, Ltd.

4,600

2,409 shares of Algom Ura¬

nium

Mines, Ltd. during Febru¬
•;:-

ary.

-The

switch

was

made

advantage

of

from

historical

t

the

sharp

a

to

take

deviation

relationship

between the two stocks. Algom's
1957
earnings are estimated at
over
$2
per
share, after all
charges and Preston's earnings at
over 80 cents
per share including
its ' proportionate interest in the
earnings of Algom.

With

Corp.

and

St.

Regis

* r

joined

the

staff

been

Cal.—Clyde

added

to

the

MEETING NOTICE

LONG ISLAND LIGHTING COMPANY

of

J.

First

Hogle

a

Co.,

147

East

Street.

Meeting of the Stockholders of Long
Lighting Company will be held at
Company's Hicksville Operations
Center, 175 Old Country Road, Hickeville, New York, on April 15, 1958, at
2 o'clock P.M., to elect eleven
directors,
to
vote
on
the appointment of Price
Island

the

Waterhonse & Co.
accouutants

SITUATION WANTED

take action

BULL (Y) FOR YOU
This aged Z7,

married vet, Univ. of Mich.
Eco grad, studying MBA in
investments,
seeking to take bull by the horns. 3 yrs.
stk.
bkr.
exp.,
option
trading,
Portf.
«nanag., admin.
Box S 320, Commercial
<&-

Financial
York

7.

Chronicle,
N.

25

Park

Y




Place,

for

on

as

the

independent public
year
1958 and to

such other business

properly come before the meeting
adjournments thereof.

as

may

or any

Only holders of common stock of record
on

tVew

shares

be

can

an

inheritance not

income-paying

only

.

for the

in-

25, 1958

relationships.

.Thus,

:

;

investor with

an

a

supplementary retirement income
for

himself

his

and

wife—and

pr?vid/ fu,?ds for his

grandchildren's education.

R.

M.

In the report of General Ameri¬
...vksluis
Investors

can

Company,
^unmciiiv

Inc.,
llw;

Fran*

Aitschul

board

stated that as o£ March 31

195g
an

net

chairman if

assets

increase

books

will

remain

Checks

open.

be mailed.

>

'

OTIS

will
'

-

ELEVATOR

JOHN R, HENRY, Secretary

COMPANY
Common Dividend No. 206

$28.19

per

quarterly dividend of $.50
share on the Common Stock

per

has been declared,

J;";

share

of

payable April

25, 1958, to stockholders of
ord

the close of business

at

April 4,

the books of the

of business
to vote at

books will

on

Company

at

the close

March 14, 1958 are entitled

the meeting. The stock transfer
not be closed.
CHARLES E. ELBERT

Secretary
March 14, 1958

recon

1958.

Checks will be mailed.

DIVIDEND NO. 181

H. R. Fardwell, Treasurer

ON COMMON STOCK

New

The

Board

of

Directors

York, March 26, 1958.

of

Consumers Power Company
authorized the payment

has
of

dividend of 60

a

share

20, 1958
record

cents per

fodficUas <md Eleclrie

the

outstanding
Stock, payable May

on

Common

share

to

of

owners

April 18, 1958.
DIVIDEND ON

DIVIDEND NOTICE

PREFERRED STOCK

COMMON STOCK

DIVIDEND NO.

has
of

the

quarterly dividend

a

Preferred

Stock

as

on

share

owners

cash dividend for the
first quarter ofthe year of

o

fol¬

lows, payable July 1, 1958

169

The Board of Director* on
March 19, 1958, declared

authorized the payment

to

60 cents

of record June

the

share

per

Company's

upon

common

capital stock. This divi¬

CUSS

PER SHARE

dend

will

$1,121/2

check

on

$4.52

$1.13

to

$4.16

$1.04

of record at the close of

14.50

the

$56,308,979,
$166,035 for the

Treasurer

payable

1958 to Stockholders of record at
the close of business April
18, 1958. Trans¬

fer

be
paid by
April 15, 1958,

stockholders

common

business

March

on

28,

1958.

CONSUMERS POWER COMPANY

were

of

SWBAH3NOEN,

quarterly dividend

a

6, 1958.

Closed-End News

day
(30c)

120 Broadway, New York 5, N. Y,

The Board of Directors also

mutual fund investment

a

could provide

Dec.

K. C.

JACKSON, MICHIGAN

CHRISTENSEN,
Treasurer

San

Francisco, Calif.

SenviHfOcitdUiU'THicfityiK

common

31, 1957.
of

$294,895.

WORLD-WIDE BANKING

se¬

DIVIDEND

NOTICE

Net income from diviThe Chase Manhattan Bank has de¬

of

FINANCIAL

clared

NOTICE

dividend of 60c
per

a

share

on

the

Security Holders of

UNITED

GAS

CORPORATION

made

17»9^

13,090,000 shares of the capital
stock of the Bank,
payable May 15,
1958

to

holders of record

of business

THE

Chase
Manhattan

The

closed

the close

at

April 15, 1958.

transfer

books

will

in connection with

not

the

be

pay¬

of this dividend.

ment

MORTIMER J. PALMER
Vice President and Secretary

BANK

.

J
gen¬

tion and Subsidiaries consolidated for
the period
from March 1, 1957 to
February 28, 1958, such period being
the 12-month period beginning on the
first day of the month next succeed¬
ing the effective date (February 27,
1957) of the Registration Statement

filed with the Securities and Exchange
Commission relating to the sale of

535,000 000 principal amount of First
Mortgage and Collateral Trust Bonds,

4^4% Series.due 1977, of United Gas
Corporation. Copies of such earnings
statements

will

be

mailed

upon

re¬

DIAMOND

GARDNER

CORPORATION

—/mm
§

.

The Board of Directors of Diamond

/

/wfl

Gardner Corporation on March 27,

CONSECUTIVE

declared

1958,

YEAR OF DIVIDENDS

the

GROWING fOR THI FUTURE

0

45c

also

Cumulatlvo

Both dividends
to

are

per

quarterly

share

a

the

quarterly

share on the

Preferred

Stock.

payable May1,1958

stockholders of record April

Vice-President and Treasurer

on

meeting

same

declared

dividend of 37 '/ac

$1.50

regular
per

Stock. At the

Board

7,1958.

PERRY S. WOODBURY

1525 Fairfield Avenue

Secretary and Treasurer

Shreveport 92, Louisiana
1958

of

dividend

Common

quest to any of the
Corporation's
security holders and other interested
parties.
J, H. Miracle,

March 31.

r

1958

this

May 15,

vestor's survivors, but also for the
ages or

25,

of fifty cents per share was declared oirthe
Common Stock of this Company,

survivors' heirs regardless of their

erally available to its security holders
earnings statements of United Gas Cor¬
poration and of United Gas Corpora¬

Notice is hereby given that the Annual

.ded to the staff

&

investment in mutual fund

an

United Gas Corporation has

of

BEACH, Calif.—Kenneth

A.

but

retired couple

has

February 28, 1958

April 15,1958
LONG

March

Assistant

Month Period Ended

Street.

Baker has been

;

con¬

Earnings Statements for Twelve

With J. A. Hogle
i

;

STOCK

(CHARTERE D

Stephenson, Leydecker & Co., 1404
Franklin

other4ieifs'of!a

0r

Notice to

Simas

staff

Y„

Directors

curities for the three months was

Paine, Webber, Jackson & Curtis,
626 South Spring Street.

Stephenson Firm

OAKLAND,

shares

Net profit from the sale

ANGELES, Calif.—L. John

/■Special to The Financial Chronicle)

has

mutual fund

addition, Social. Security provides
Childrenover 18

on

(Special to The Financial Chronicle)

has

N.

of

standing as compared with $28.09

With Paine, Webber
LOS

AMERICAN

Security benefits.

tinues to receive all the dividend
income paid on those shares. In

to

South sPrinS Street,

Bernatz

York,

stock on the 1'800'220 shares out"

cnr^row

on„tll

TOPEKA AND
RAILWAY COMPANY

FE

de¬
clared
a
dividend
of
Thirty Cents
per
share, being Dividend No. 180, on the Common
Capital Stock of this Company, payable June
2;
1958, to holders of said Common Capital
Stock registered on the books of the
Company
at the close of business April 25, 1958.

re-

a

•

(Special to The Financial Chronicle)

ATCHISON,

Board

brought

Net assets, after deducting $5,563,000 preferred stock, were equal

Lewis-Davis Adds

The

CAN COMPANY

Security benefits are re^ death of either wife

three months.

N.^r%nfKeenCadd^o

of Preston Fast Dome

into

Loan

chemicals.

from 27% to 198%.
the

erty

refined

These companies showed earnings
increases
during
1957,
ranging

Social

inherits

Co.^ Dominion

PaDer Co.'

New

DIVIDEND NOTICES

husband but the survivor who

or

..

,

THE

SANTA

On March

"
—

Street.

Pedro

^5^M:£SSSS^t^SU

hoidi^of^tePu'S'Gr^

Stores, Ltd., Connecticut General
Life Insurance Co., Calgary Power,
Ltd ,Bosto " Herald -Traveler
instrumentation
Vitro
Corp of Corp Mesabf Iron Co American
America
in
atomic
engineering
™otocopy Equipment Co., Libenergy

San

A

point

investments

common stock-

Fund on Feb. 28 included International Business
Machines, Royal
Dutch Petroleum

Co.

DIVIDEND NOTICES

Taiyo Securities Company, 208

matter how great his annual

no

l ^?Tr
f
n^01'
S'®.1Social
,f. M^oH-FronteMcn Oil, and the bonds andmotes
un- duced
of
10,000 shares of invested cash. The market value

stantial

Tegeler &

xnter^ng .point fought

elimination

Winnipeg & Central Gas Co. Sub-

of

South

COMMON

social

on

of
•

now affiliated with Dean
Witter & Co., 201 East Broadway,
He was previously with
Dempsey-

ANGELES, Calif.—Tadashi

dis-

was

the retired worker relied solely

At the niiartpr pnd 4Q<y nf thp.
quarter-end, 49% of the

atcresio.7%.
The

L0NG BEACH, Calif.—John E.

Onami has been added to the staff

fied Investment Fund,

Feb. 28, of which over $1,278,000
worth were-purchased since the
—

was

Long & Co., sponsors of Diversi-

,101 est

,<

Joins Dean Witter
(Special to The financial Chronicle)

Usher is

closed by the latest "Long View"
bulletin published, by. Hugh W.

economic
develop- jng investment oL the Fund on
key m with a stronger Nov. 6 was $17^,000 and was supeconomic picture in the<IJ: S., ev(pn
'by ths Trusty? ~*^vork ho may forego part or all
though Canada may well lead the and members of The Putnam Man- jag Social
Security benefits
A
parade on the upturn.
agement'Company,
+
'
As of Feb. 28, Canada General
Purchases by investors of new thaIll
$2,080 in a year from emFund's investments were diversi- shares of the Fund since organipi0yment is not eligible for any
fied among more than 100 issues zation totaled over $2,360,000 on
Social Security benefits
ment must

of securities in 18

for
and

'. (Special to The Financial
Chronicle)

LOS

>

fact that any-decisive resumption,
of Canada's forward-moving in-

royalties

Taiyo Adds to Staff

excise

Capital expenditures fob 1958 are
estimated at $8.5 billion or nearly
equal to the $8.7 billion of 1957.
Any discussion of the Canadian

and

$267,757.

Seeiii'itvB«*iiefils

^

dustrial

interest

period, after expenses
and
municipal taxes,

m

Continued growth in net assets
A retired worker and his wife,
by 25%,
a current total of over $2,700,- both 65 or ..oyer, would today need
a
public works program of $268
an.^ shareholders to more than $65,133 in the bank at 3% interest
million has been announced
^whichfeJ^O is.reported by The Putnam to d u p 1 i c ate the $162.80 per
is anticipated to expand to $1.1 Growth. Fund, a new mutual in- month
payable to such couples
billion by the year-end, and Cana- vestment fund with emphasis on under maximUm Social
Security
dians themselves are showing con- long-term growth of capital, un- benefits.
For a life annuity, this
fidence
in
their .own
economy.
£,er
management as The "same couple would have to spend
extended,

taxes have been reduced

47

..

MATCHES

•

CARTONS

•

POLP PRODUCTS

•

LUMBER

•

BUILDING SUPPLIES

•

WOODENWARE

48

The Commercial mid Financial Chronicle

^

(1536?

.

Thursday, April 3, 1953

.

.

W-'

BUSINESS BUZZ
on..
Behind-the'Scene Interpretation*

frW the Nation's Capital

clous

WASHINGTON. D. C.—Prob¬

ably

and

accurate

most

the

■comprehensive appraisal of the
.timber and forestry situation
ever made in the United States

just been issued by
Department iof Agriculture.

lias

to

season

tions

well

as

total

A

of 489

Spring 1958 — Columbia
University Press, 2960 Broad¬
logue

currently produce the
million people
in homes, industry packaging
and synthetics. Forty years from

1

now

growing population of the
United States will require aliriost twice the present produc¬
The

needed by

wood, s o a r i n g to new
heights,
must
be
met if
America's growing population is
to maintain its present standard

living. Wood, paper and other
timber, products have become an
essential part of modern life
and higher living standards.

practically

'

that

sion.

shortages will crop

from time to time. Then he
added: "But it is equally clear

ditions

of

that

little

is

there

danger

and pulp in- k

only early action, but an

Inten¬

sity of forestry practices much

higher than those today,
"What
or

J - 2Q

do in the next

we

whether

determine

will

- years

10

shall grow enough

we

k, •
I
tPotential Oil, Gas Resources

■

•,

children.
enjoy the
timber abundance that we our¬
timber

enable

to

our

■■

■

■

'There

"There

are a

number of favor¬

the

-

'

today
Saw

timber

There are a series of rea¬
sons for this.
There have been
advances made in fire protec¬

ing.

that

exploration.

not

mentioned

tion, timber utilization and re¬
search;
Five million acres of
idle lands have been planted in

it in its statement to stockhold¬
ers, the company probably has
3+q
acreageyielding
small annual rentals to oil com-

trees."

Pw.xi.es.

\

~

.

.

Progress in Forestry

forestry

holdings

dustrial

large in¬
all over the

The

on

true

-

country. The individual com¬
panies with their nearby mills s'
have done considerably toward

spurring
owners •

lands.

For

;.

on

to

1

reforest

!'

far

cut-over
*

;
•

■

Paper Company in the

State of

owns

about

325,600 acres of land or

Z% of

the acreage.

alone

This is a tremen-




in

Fifty-two million acres,
the size of Maryland, Indiana,
and Maine combined, needs to
be planted.
'
; - A"--"-'
(2) Greater progress needs to
be made in holding down losses
.

from

-

[This column is intended to re¬
;

flect the "behind the scene" inter¬
pretation from the nation's Capital
and may or may not coincide with
the "Chronicle's" own views.j

The re-

Now

Liberty Inv. Co.

W. L. Robertson Joins

potential appears more
growth,
if the forestry knowledge and
skills are applied.

tion, Denham Building, has been

that the

than double the present

v

The

key to America's future
in the hands
out of every 10 families

timber supply lies
of

one

who

than

own

small

one-half

of

forests.

the

N. Y.

r

of Life

in the
1940-1956—In-

Insurance

State of Oregon,

of

stitute

A"

New York 22,

(paper).

Growth

Insurance, 488
New York 22,

Life

Madison Avenue,

N. Y.

(paper).

in the West
Industry—Betty
V. H. Schneider — Institute of
Industrial Relations, University
of
California,
201
California

Industrial

Relations

Coast Maritime

More

nation's

of

First

changed

International

to

-

Liberty

Corpora¬

Investment

Co. William L. Robertson, former¬

ly

in,

business

as

an

A

Georgia:

Inside

Handbook

of

Interesting
Facts
about
the
State of Georgia— Citizens &
Southern
National Bank, At¬
lanta, Ga.
Steel

DENVER, Colo.—The firm name

grow,

Insurance,

Life

far from licked.

but declares

can

of

Madison Avenue,

disease, insects, fires, and;
which

(3) Timber/utilization needs
to be improved.
(4) Lands need to be left in
more
productive condition for
future growth following cutting.

port indicates that no one reallyknows how much timber this
country

stitute

other destructive agents,
are

1940-1956—In¬
488

State of Indiana,

(1)

;

-

and

'/'■

(paper).

Inflation: Fact vs. Fic-

tion—United

States

Steel Cor¬

poration, Public Relations De¬
partment, 61 Broadway, New
York 6, N. Y. (paper), on re¬
quest.
1955-1957 — American
Steel
Institute,
150
42nd Street. New York 17,

Steel Facts,
Iron

East

and

N. Y.

(paper).

individual

dealer, has become associated with
the

TRADING MARKETS

firm.

same

t>e

Indian Head Mills

United States Envelope

the

of other paper coin¬

mill

came

jobs

and

Botany Mills
Campbell Co. Com.
Fashion Park

under lease.

regarding holdings in
South

A. S.

of course is perhaps

International
P a p e r
was the first company
to bring jobs and a market for
puip in South Mississippi. In
adjoining Alabama, Gulf States
Paper Corporation, was the first
company to bring a major pulp
and paper mill to^ that
state.
V"

American Cement

v

Mississippi,
of Interna¬

Company

instance International

Mississippi

acreage

panics.

private

small

.;!

Insurance in the

of Life

Growth

certainly privately

adjoining some
tional's holdings are

There has- been great progress

in

(paper).
,

-

owned

made

ada and other nations.

-

companies will some

for instance has

the following
possibilities for

f and there is little likelihood of
a substantial increase from Can¬

Some of the
lands are already potential oil
and gas producing areas. .While
/International Paper
Company,
gas

there was 10 years ago.
growth is increas¬

as

paper

the four best

Ont.,

Toronto,

Mines,

of
Canada

Department

Mines—Ontario
Supplies

Hall, Berkeley 4, Calif., $4.50.

the

mainly
on the timber grown within its
boundaries. It how imports only
.10% of the timber consumed,

.

day be under lease for oil and

in

signs

predictions

says

United States must rely

considerable acreage owned ,by

the * report. For
instance there is as much timber
able

are

*

"Timber Resources for

f,America's Future,"

and their children to

selves know.

newsprint.!

Must Rely on Own Resources

plans did not come any too soon.
The reason is the industry found
itself in a price squeeze. Despite
!? the downturn
in business, the
paper manufacturers still had to
pay as much or more for labor,
for pulp wood, chemicals and
freight costs. >
I '
:

demands will require not

big

,

deferred some 5,000,000
pulp capacity during the
past couple of years. The cut¬
back or stretch-out of expansion

will take earnest effort. Meeting

a

big and the other small in
comparison, have created many
jobs in their respective areas of operation. They have supplied;
millions of dollars annually t o
agriculture, and business and;
the welfare generally of their
areas.
!;• A!> '!1
!!;\.
: *(;:

a

paper

has

j

one

dustry

timber becoming a surplus. To
meet
future
timber
demands
those

the

it

where

Forging Ahead in 1957—Report of
the
Ontario
Department
of

;increasing their timber supplies:

Alabama,

land

of

are

The report cites
as

likewise

in

acres

the

focused.

IIovv to Increase

mill at Mobile. Both companies,

tons of

up

two

thousands

of

'

further expan¬
Because of economic con¬

will necessitate

timber famine

must be

states. <0 International

and

them the spotlight of the future

Warrior

has holdings of many

industry in the

business.

4,500,000 of these owners. Upon

*

companies were
cited merely as examples
of
their pioneering efforts in sister
These

folk

timber

Ki ver at Tuscaloosa.

paper

in

There

others

retired

near ?

60 miles from

some

its original plant on the

ernment, who follow the paper
industry closely, are confident
that by 1961, the demand for
more paper industry
products

Commenting on
Dr. McCardle said

shortage.

in the offing,

Demopolis,

Some economists in the gov¬

country
acute tim¬

indicates

every

U, 8. today.

At the same time this

no

the

year

River

Tomb igbee

the

from

People—Edward Schleh—Pren¬
tice-Hall-, Inc.,;70 Fifth Avenue,
New York 11, N.
Y. (cloth),
$5.65..:!A.kV;;
- AAAA ';'!v

professional people, housewives,

multi-million dollar plant on

a
•

Per¬

of

Results

Getting

sonnel:

tracts by farmers, businessmen, /

In recent
constructed

area.

States

Gulf

months

Industry operated at 91% of
capacity.
This is a level that
would bring loud cheers from

of

researcli

calendar

1957

5,

timber lands is owned in small

industrial

other

than

workers of the

industry

hear'ca¬
pacity like it did three or four
years ago. It is probably around
85%, but it is far higher tha ft;
the automobile industry and; tlie.
other big industries. During | the

for

York

Management

Executive

higher

The pulp and paper

New

Street,

Wall

37

N. Y.

is not operating at or

declares that the future demand

while there is

a

American

for

Implications

Its

—

Economic Community-

European

private office!"

supply the wood
population to rise

to

Ferguson

Business—Banque de Bruxelles,

to 275 million.

ing to require a better j ob of
forestry on all forested lands.
Dr. Richard E." McCardle, chief
of the U. S. Forest Service,

the

a

grow
83%
more
timber,
nearly twice as much as is now

to meet its needs

report,

compromise—he originally

a

wanted

to

by the year 2000, The only way
the demands can be meet is go¬

is not faffed with an

sort of

"It's

the United States will have

produced,

—•

Columbia
University Press, 2960 Broad¬
way, New York 27, N. Y., $4.50.

country

No Timber Shortage

Magazine

Small

the

Rowena

this

wood used by 173

ber

New York 27, N. Y.

way,

Editing

million acres of

commercial forest lands in

ington, D. C,

the

University Press Cata¬

Columbia

forest lands in the United States.

Fu¬

ture,*' cost $7 a copy, and can be
the U. S. Gov¬
ernment Printing Office, Wash¬

tion of wood

Blair

NAY.

York,

Inc., New
(cloth), $5.95.

of

—

Norton & Com¬

pany,

institu¬
the many

to

to

as

Europe

in

Change

Bolles—W. W.

people who own
stocks in paper companies with
their many millions of acres of

Obtained from

&

interest

thousands

"Timber

America's

------

The meat of the report will be
marked

Mich., $24

2,

Detroit

Avenue,
per year.

Big

of

Monthly

A

—

Management
Report — Auto¬
matic
Office, 5057 Woodward

V

for

ideal

is

Meat for Investors

find many public and private or¬
ganizations.
for

60

Office

Automatic

area

17,

N. Y., $45.

;

long

rainfall

Avenue, New York

250 Park

South

in

Gas

Reserves—John S. Harold, Inc.,

growing pine trees.

report. The research
prows out of a nationwide sur¬
vey conducted by the IT. S.
Forest
Service in cooperation
with the State Foresters, various
state agencies, forest industries,

The 700-page report,

and

annual

haustive

'

its

with

$12.50

Appraisal Survey of Oil and

for in¬
growing
inches-plus of

This

stance

—

postage.

say

lands

cut-over

its

Mississippi.

bonds,

Resources

informed

J.,

N.

wood,

.

that Inter¬
national Paper Company has in¬
vested large sums in reforesting

and those owning
forestry lands, individuals! and
companies, will be interested In
some of the findings of the ex¬

'v

other states,

people

forestry

stock

and deals in paper

buying
tracts in

such

that and

the

paper eompanies, and nearly everybody who ■>

owns

tremendous

is criticism of companies
up

C. S.
Mapleplus 36c

Atlas

Company,

&

Hammond

-

While there

state.

the

World

Ambassador

The company owns two

in

.mills

]v Perhaps all the
hnd

for any company

acreage

own.

Morgan Engineering

Carl Marks

&

no. Inc.

National Co.

Flagg Utica
FOREIGN

SECURITIES SPECIALISTS

20 BROAD STREET

TEL: HANOVER 2-0050

•

LERNER & CO.

NEW YORK 5, N. Y.
TELETYPE NY

1-971

Investment

10 Post Office
T elephone

"

markets for, wood.

The skilled

workers receive average

wages

Securities

Square, Boston 9, Mass.
T eletype

HU^hard 2-1990

BS 69